Full Press Release Details
Reports Third Quarter 2018 Financial Results and Recent Corporate Highlights
November 14, 2018 /PRNewswire/ RXi Pharmaceuticals Corporation (NASDAQ: RXII), a biotechnology company developing the next generation
of immuno-oncology therapeutics based on its proprietary self-delivering RNAi (sd-rxRNA ) therapeutic platform, reports its
financial results for the third quarter ended September 30, 2018 and announces several business updates, including new management
appointments and a new Company name and ticker symbol.
past few months, we have focused on continuing to generate meaningful data through our R&D activities, while at the same time
being extremely diligent in spending our cash in a way that can maximize the outcome," said Dr. Geert Cauwenbergh, President
and CEO of RXi Pharmaceuticals. "The significant reduction in net loss for the third quarter, and for the first nine months
of 2018, has been the result of a careful selection of academic and industrial partners who have shown a high interest in the potential
of our self-delivering platform for RNAi in immuno-oncology (IO) and adoptive cell transfer therapy (ACT). In addition, we have
been able to complete a financing of $15 million last month, providing us with a financial runway we expect to last until at least
through the first half of 2020."
Cauwenbergh continued, "The pending name change from RXi Pharmaceuticals to Phio Pharmaceuticals signifies our
commitment to develop our sd-rxRNA platform as a key therapeutic modality in the rapidly expanding field of IO and ACT by
weaponizing the body's immune system in its fight against cancer. Also, in that context, I am very pleased to announce
the appointment of Dr. Gerrit Dispersyn as our President and Chief Operating Officer. In the past 18 months, Gerrit has shown
a remarkable aptitude in handling the complexities of preclinical and clinical R&D activities in our Company and I
believe that under his leadership our Company will succeed in executing its goals, which should result in our shareholders
doing well, and most importantly, patients doing well."
Dr. Gerrit Dispersyn
said, "I am grateful for the opportunity to provide additional leadership for our Company's new chapter and looking
forward to delivering on our upcoming milestones. Under Geert's direction, the Company built an impressive dataset that allows
us to confidently develop the next generation of immuno-oncology therapeutics based on our sd-rxRNA platform. I look forward to
building on that foundation alongside Geert."
host a conference call today at 4:30 p.m. EST to discuss financial results and provide an update on the Company. The
webcast link will be available under the "Investors - Event Calendar" section of the Company's website, www.rxipharma.com.
The event may also be accessed by dialing toll-free in the United States and Canada: +1 844-376-4678. International
participants may access the event by dialing: +1 209-905-5958. An archive of the webcast will be available on the Company's website
approximately two hours after the presentation.
Select Financial Highlights for Q3
At September 30, 2018, the Company had
cash and cash equivalents of $3.2 million as compared with $3.6 million at December 31, 2017.
On October 3, 2018, the Company closed
an underwritten public offering of (i) 3,725,714 units, at a public offering price of $0.70 per unit, with each unit consisting
of one share of common stock and one warrant to purchase one share of common stock and (ii) 17,702,858 pre-funded units, at a public
offering price of $0.69 per pre-funded unit, with each pre-funded unit consisting of one pre-funded warrant to purchase one share
of common stock and one warrant. Assuming the warrants are not exercised, net proceeds from the offering were approximately $13.3
million after deducting underwriting discounts and commissions and offering expenses paid by the Company.
The Company believes that with its current
cash on hand and the proceeds from the underwritten offering, it has sufficient cash to fund operations through the first half
of 2020, which includes initiating a clinical trial with RXI-762 and advancing our immuno-oncology programs toward clinical development.
This assumes no new funding through licensing or collaboration agreements.
Revenues for the three months ended September
30, 2018 were $57,000 and related to the work performed by the Company as a sub-awardee under the government grant awarded for
the development of a novel sd-rxRNA compound, BA-434, that targets PTEN for the treatment of spinal cord injury. The Company had
no revenues during the three months ended September 30, 2017.
Research and Development Expenses
Research and development expenses for the
quarter ended September 30, 2018 were $0.8 million as compared with $1.5 million for the quarter ended September 30, 2017. The
decrease was primarily due to a decrease in clinical trial-related expenses as subject participation is complete for all of the
Company's clinical trials in dermatology and ophthalmology and a decrease in payroll-related expenses due to a reduction
in headcount as compared with the prior year period.
General and Administrative Expenses
General and administrative expenses for
the quarter ended September 30, 2018 were $0.7 million as compared with $1.0 million for the quarter ended September 30, 2017.
The decrease was primarily due to a decrease in payroll-related expenses, including those as a result of a reduction in headcount,
as compared to the prior year period.
Net loss for the quarter ended September
30, 2018 was $1.5 million compared with $2.5 million for the quarter ended September 30, 2017. The decrease was primarily due to
a decrease in operating expenses, as discussed above.
Recent Business Highlights
Research Collaboration with Karolinska
In August 2018, the Company announced it entered into a research
collaboration with the Karolinska Institutet in Stockholm, Sweden. This collaboration will explore RXi's sd-rxRNA compounds
against targets involved in T-cell and NK cell differentiation and/or in the immune cell tumor-induced stress response with the
aim of producing anti-tumor adoptive cell therapy grafts with improved functionality and persistence.
New Data Using sd-rxRNA in NK Cells
In September 2018, the Company presented data from its immuno-oncology
program using sd-rxRNA therapeutic compounds targeting intracellular checkpoint Cbl-b in NK cells at the 16th Annual Discovery
on Target Conference. Data showed that sd-rxRNAs are rapidly and efficiently taken up by immune effector cells without the use
of transfection reagents. Using sd-rxRNA compounds against checkpoint inhibitors, we can suppress their expression levels up to
95% in immune cells, including T-cells and NK cells. By treating NK cells ex-vivo, prior to adoptive cell transfer with sd-rxRNA
reducing the expression of proteins such as Cbl-b, the anti-tumor response of these cells may be improved.
In November 2018, the Company presented a poster highlighting
data demonstrating the potential of sd-rxRNA to improve NK cell potency in ACT at the 33rd Annual Meeting & Pre-Conference
Programs of the Society for Immunotherapy of Cancer (SITC). Data showed that by treating NK cells with sd-rxRNA targeting inhibitory
receptors such as TIGIT ex vivo, prior to ACT, the anti-tumor response of these cells may be enhanced resulting in a more effective
therapy for hematological malignancies.
Additional Corporate Events Announced
Corporate Name Change
As the Company transformed into an immuno-oncology company with
the acquisition of MirImmune in 2017 and the strategic decision to focus solely on immuno-oncology in 2018, it became clear that
the name RXi Pharmaceuticals no longer accurately reflected the Company's current business and future direction. The new
name reflects the Company's commitment to providing new treatment options for patients battling cancer.
The Company expects the change in the Company's name from
RXi Pharmaceuticals Corporation to Phio Pharmaceuticals Corp. and the change in the Company's ticker symbol from RXII to
the new trading symbol PHIO to become effective in the coming week.
Appointment of Gerrit Dispersyn as President and Chief
has been the Company's Chief Development Officer since April 2017. In connection with the Company's recently announced
corporate name change to better reflect its core focus on immuno-oncology, Dr. Dispersyn will become the Company's President
and Chief Operating Officer as of today. As COO, he will oversee all day-to-day activities of the Company and is in line to become
the next CEO of the Company. Dr. Cauwenbergh remains as CEO and a member of the Board of Directors of the Company and will focus
on financial, intellectual property and strategic matters.
About RXi Pharmaceuticals Corporation
RXi Pharmaceuticals Corporation (NASDAQ:
RXII) is a biotechnology company developing the next generation of immuno-oncology therapeutics based on its self-delivering RNAi
(sd-rxRNA ) therapeutic platform. The Company's discovery and research efforts are focused on developing sd-rxRNA therapeutic
compounds to be used in the context of adoptive cell transfer by targeting checkpoints or other gene targets, or to be used in
immunotherapy following intratumoral injection. We aim to maximize the power of our sd-rxRNA therapeutic compounds by weaponizing
therapeutic immune effector cells to attack cancer, and to make tumors more susceptible to such attacks, and ultimately provide