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PYPD Positive Sentiment Score: 75/100

PolyPid Provides Corporate Update and Reports Fourth Quarter and Full Year 2022 Financial Results Following Positive Communication with the FDA , Regulatory Pathway Clarified for D-PLEX 100 for Prevention of Abdominal Co

Key Takeaway: PolyPid Ltd. announced a corporate update along with its financial results for 2022, highlighting a positive communication from the FDA regarding the regulatory pathway for its drug D-PLEX100. The company expects to resume patient recruitment in Q2 2023 for the SHIELD II trial, which aims to prevent abdominal colorectal surgical site infections. The trial will enrich its patient base by incorporating approximately 550 additional patients, with top-line results anticipated in mid-2024. While the company remains optimistic, it reported a notable increase in net losses year-over-year.

Market Sentiment Analysis

POSITIVE FACTORS

  • Clear regulatory pathway established by the FDA for D-PLEX100.
  • Resumption of patient recruitment expected in Q2 2023, enhancing study feasibility.
  • SHIELD II trial considered de-risked due to a focused patient population.

CONCERNS & RISKS

  • PolyPid's financial health shows a significant accumulated deficit.
  • Operating loss increased compared to the previous year.

Full Press Release Details

PolyPid Provides Corporate Update and Reports
Fourth Quarter and Full Year 2022 Financial Results
Positive Communication with the FDA, Regulatory
Pathway Clarified for D-PLEX100 for Prevention of Abdominal Colorectal
Surgical Site Infections
Expects to Resume Patient Recruitment in Q2 2023 into Ongoing SHIELD II Trial, which will be Enriched with Approximately 550 Additional
Patients to Complete Clinical Testing for Potential NDA
Results from SHIELD II Trial Anticipated mid-2024
Conference Call Scheduled for Today at 8:30
PETACH TIKVA, Israel, February
8, 2023 -- PolyPid Ltd. (Nasdaq: PYPD)
("PolyPid" or the "Company"), a late-stage biopharma company aiming to improve surgical outcomes, today provided
a corporate update and reported financial results for the three months and full year ended December 31, 2022.
Recent Corporate Highlights:
"We are thrilled to now
have a clear regulatory pathway to possible approval of D-PLEX100 in the U.S. following confirmation from the FDA
that the ongoing SHIELD II trial can potentially be used to complete our clinical
testing," stated Dikla Czaczkes Akselbrad, PolyPid's
Chief Executive Officer. "Importantly, the ability to leverage the SHIELD II study will significantly reduce the time and resources
needed to finalize the clinical study as compared to having to initiate a new trial. We look forward to resuming patient recruitment in
the second quarter."
"We view SHIELD II as a
de-risked Phase 3 trial given the more focused patient population with large incisions in which we have already generated highly positive
data in SHIELD I, and the fact that it will not be conducted within tight COVID-related restrictions," continued Ms. Czaczkes Akselbrad.
"The recruitment of the additional 550 patients into SHIELD II is expected to take approximately 12 months and the top-line
results are anticipated in mid-2024."
Financial results for three months ended December
Financial results for the full year ended December
Balance Sheet Highlights
Conference Call Dial-In & Webcast Information:
Date: Wednesday, February 8, 2023
Time: 8:30 AM Eastern Time
Q&A Participants: https://register.vevent.com/register/BIdad8bd318dec4d3cb9437ab9c40bd263
Webcast: https://edge.media-server.com/mmc/p/rak4fxxm
SHIELD II (Surgical site Hospital acquired Infection prEvention with
Local D-PLEX) is a prospective, multinational, randomized, double blind Phase 3 trial designed to assess the efficacy and safety of D-PLEX100
administered concomitantly with standard of care (SoC), compared to SoC alone arm, in the prevention of post abdominal-surgery incisional
infection in patients undergoing surgeries with incisions greater than 20 cm. The primary endpoint of the trial is measured by the proportion
of subjects with either an SSI event as determined by a blinded and independent adjudication committee, reintervention, or mortality for
any reason within 30 days post-surgery. Patient safety will be monitored for an additional 30 days. The trial will enroll patients in
centers in the United States, Europe and Israel.
PolyPid Ltd. (Nasdaq: PYPD) is a late-stage biopharma company
aiming to improve surgical outcomes. Through locally administered, controlled, prolonged-release therapeutics, PolyPid's proprietary
PLEX (Polymer-Lipid Encapsulation matriX) technology pairs with Active Pharmaceutical Ingredients (APIs), enabling precise delivery of
drugs at optimal release rates over durations ranging from several days to months. PolyPid's lead product candidate D-PLEX100 is
in Phase 3 clinical trials for the prevention of abdominal colorectal surgical site infections. In addition, the Company is currently
in preclinical stages to test the efficacy of OncoPLEX for treatment of solid tumors, beginning with glioblastoma.
For additional Company information, please visit http://www.polypid.com and
Forward-looking Statements
This press release contains "forward-looking statements"
within the meaning of the Private This press release contains "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act and other securities laws. Words such as "expects," "anticipates," "intends,"
"plans," "believes," "seeks," "estimates" and similar expressions or variations of such
words are intended to identify forward-looking statements. For example, the Company is using forward-looking statements when it discusses
the regulatory pathway for the potential NDA submission for D-PLEX100, including
the potential of the SHIELD I results and SHIELD II study to provide support, the timing of resumption, completion of patient recruitment
and top-line results of the revised SHIELD II study, and the timing of the unblinded analysis thereof, and the Company's expectations
regarding its cash balance. Forward-looking statements are not historical facts, and are
based upon management's current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain.
Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management's expectations,
beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking
statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ
materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting
the Company, reference is made to the Company's reports filed from time to time with the Securities and Exchange Commission ("SEC"),
including, but not limited to, the risks detailed in the Company's Annual Report on Form 20-F filed on February 28, 2022. Forward-looking
statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to
reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking
information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements,
no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking
References and links to websites have been provided as a convenience,
and the information contained on such websites is not incorporated by reference into this press release. PolyPid is not responsible
for the contents of third-party websites.
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except share
December 31,
2022 2021
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 8,552 $ 9,819
Restricted cash 511 397
Short-term deposits 4,042 22,384
Prepaid expenses and other current assets 1,089 2,211
Total current assets 14,194 34,811
LONG-TERM ASSETS:
Property and equipment, net 9,247 8,761
Operating lease right-of-use assets 2,431 -
Other long-term assets 99 663
Total long-term assets 11,777 9,424
Total assets $ 25,971 $ 44,235
The accompanying notes are an integral part of
the consolidated financial statements.
U.S. dollars in thousands (except share
December 31,
2022 2021
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $ 4,024 $ -
Accrued expenses and other current liabilities 2,517 3,940
Trade payables 1,141 4,136
Current maturities of operating lease liabilities 959 -
Total current liabilities 8,641 8,076
LONG-TERM LIABILITIES:
Long-term debt 7,574 -
Deferred revenues 2,548 -
Long-term operating lease liabilities 1,173 -
Other liabilities 174 199
Total long-term liabilities 11,469 199
COMMITMENTS AND CONTINGENT LIABILITIES
SHAREHOLDERS' EQUITY:
Ordinary shares with no par value - Authorized: 47,800,000 shares at December 31, 2022 and 2021; Issued and outstanding: 19,851,833 and 18,756,570 shares at December 31, 2022 and 2021, respectively - -
Additional paid-in capital 220,273 210,847
Accumulated deficit (214,412 ) (174,887 )
Total shareholders' equity 5,861 35,960
Total liabilities and shareholders' equity $ 25,971 $ 44,235
The accompanying notes are an integral part of
the consolidated financial statements.
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except share
Year Ended December 31,
2022 2021 2020
Operating expenses:
Research and development, net $ 27,990 $ 30,553 $ 16,954
Marketing and business development 2,888 2,983 1,614
General and administrative 8,010 9,609 7,704
Operating loss 38,888 43,145 26,272
Financial (income) expense, net 540 (544 ) 10,597
Loss before income tax 39,428 42,601 36,869
Income tax expense 97 - -
Net loss 39,525 42,601 36,869
Deemed dividend - - 2,114
Net loss attributable to Ordinary shares $ 39,525 $ 42,601 $ 38,983
Basic and diluted net loss per Ordinary share $ 2.03 $ 2.28 $ 4.48
Weighted average number of Ordinary shares used in computing basic and diluted loss per share 19,426,692 18,721,528 9,582,405
The accompanying notes are an integral part of
the consolidated financial statements.
CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except share and per share data)
Three Months Ended December 31,
2022 2021
(Unaudited) (Unaudited)
Operating expenses:
Research and development, net $ 4,655 $ 9,617
Marketing and business development expenses 350 1,147
General and administrative 1,607 2,890
Operating loss 6,612 13,654
Financial income, net 100 152
Loss before income tax 6,512 13,502
Income tax expense 23 -
Net loss attributable to Ordinary shares $ 6,535 $ 13,502
Basic and Diluted loss per Ordinary share $ 0.32 $ 0.72
Weighted average number of Ordinary shares used in computing basic and diluted loss per share 19,658,048 18,756,570

Frequently Asked Questions

What is the status of D-PLEX100 with the FDA?

PolyPid has gained a clear regulatory pathway for D-PLEX100, confirmed by the FDA.

When will patient recruitment for SHIELD II resume?

Patient recruitment for the SHIELD II trial is expected to resume in Q2 2023.

What are the expectations for SHIELD II trial results?

The top-line results from the SHIELD II trial are anticipated in mid-2024.

What is the focus of the SHIELD II trial?

SHIELD II focuses on preventing surgical site infections in patients with large incisions.

How is PolyPid aiming to improve surgical outcomes?

PolyPid uses prolonged-release therapeutics to deliver drugs effectively during surgeries.

Last updated: Feb 8, 2023