Full Press Release Details
Quoin Pharmaceuticals Provides Corporate Update
and Announces Fourth Quarter and 2023 Financial Results
Company reported positive initial clinical data
for QRX003 from first six evaluable subjects in ongoing open-label Netherton Syndrome study with positive benefits observed across a number
of clinical endpoints
Eligibility age for enrollment into both studies
has been lowered to fourteen years and older
No safety concerns have been observed to date
in either ongoing clinical study
Quoin expects its cash runway will extend into
the second half of 2025 following $6.5 million offering on March 5th
Cash Runway to be further extended by $8 million
Equity Line of Credit arrangement signed January 25, 2024
ASHBURN, Va., March 13, 2024 -- Quoin Pharmaceuticals
Ltd. (NASDAQ: QNRX) (the "Company" or "Quoin"), a clinical stage, specialty pharmaceutical company focused on
rare and orphan diseases, today provides a business update and announces financial results for the quarter and year ended December 31,
Quoin CEO, Dr. Michael Myers, said, "2023
marked another year of significant progress for Quoin and for the development of QRX003 for the treatment of Netherton Syndrome. Notably,
we released initial positive data from our open label clinical study, representing a first for the very underserved Netherton community.
That progress has continued, and based on the strength of the initial positive clinical data, we implemented a number of important protocol
changes that we believe could lead to a more streamlined development program overall.
"We have also strengthened our balance sheet
through the recently completed $6.5 million capital raise and we have the capacity to further solidify our cash position via the $8.0
million equity line of credit transaction we entered into earlier this year, once shareholder approval is received. We continue to believe
that Quoin is in position to deliver the first approved treatment for this terrible disease."
Recent Corporate Highlights -
Financial Highlights
Quoin will host a conference call and webcast at 8:30am ET on Thursday,
March 14, 2024. The call will include a discussion of fourth quarter and full year 2023 financial results and a corporate update. The
live call can be accessed by dialing 1-800-603-0527 (domestic) or 1-412-317-0688 (international). The live and archived webcast of the
call will also be available on the Quoin Pharmaceuticals website under the Investors section or by following this link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=ZmehVyN5
About Quoin Pharmaceuticals Ltd.
Quoin Pharmaceuticals Ltd. is a clinical stage
specialty pharmaceutical company focused on developing and commercializing therapeutic products that treat rare and orphan diseases.
We are committed to addressing unmet medical needs for patients, their families, communities and care teams. Quoin's innovative
pipeline comprises four products in development that collectively have the potential to target a broad number of rare and orphan indications,
including Netherton Syndrome, Peeling Skin Syndrome, Palmoplantar Keratoderma, Scleroderma, Epidermolysis Bullosa and others. For more
information, visit: www.quoinpharma.com or LinkedIn for
Cautionary Note Regarding Forward Looking Statements
The Company cautions that statements in this press release that are
not a description of historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements may be identified by the use of words referencing future events or circumstances such as "expect,"
"intend," "plan," "anticipate," "believe," and "will," among others. All statements
that reflect the Company's expectations, assumptions, projections, beliefs, or opinions about the future, other than statements
of historical fact, are forward-looking statements, including, without limitation, statements relating to the Company's expected
cash runway, the belief that certain protocol changes could lead to a more streamlined development program and the belief that the Company
is in a position to deliver the first approved treatment for Netherton Syndrome. Because such statements are subject to risks and uncertainties,
actual results may differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements
are based upon the Company's current expectations and involve assumptions that may never materialize or may prove to be incorrect.
Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result
of various risks and uncertainties. More detailed information about the risks and uncertainties affecting the Company is contained under
the heading "Risk Factors" included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023
that the Company filed with the SEC. One should not place undue reliance on these forward-looking statements, which speak only as of the
date on which they were made. The Company undertakes no obligation to update such statements to reflect events that occur or circumstances
that exist after the date on which they were made, except as may be required by law.
For further information:
QUOIN PHARMACEUTICALS, LTD.
Consolidated Balance Sheets
| December 31, | December 31, | |||||||
| 2023 | 2022 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 2,401,198 | $ | 2,860,628 | ||||
| Investments | 8,293,663 | 9,992,900 | ||||||
| Prepaid expenses and other current assets | 591,034 | 516,584 | ||||||
| Deferred offering costs | - | - | ||||||
| Total current assets | 11,285,895 | 13,370,112 | ||||||
| Prepaid expenses - long term | 300,000 | 383,390 | ||||||
| Intangible assets, net | 583,334 | 704,561 | ||||||
| Total assets | $ | 12,169,229 | $ | 14,458,063 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 526,523 | $ | 605,600 | ||||
| Accrued expenses | 1,308,706 | 1,175,705 | ||||||
| Accrued license acquisition | - | - | ||||||
| Accrued interest and financing expense | 1,146,251 | 1,146,251 | ||||||
| Due to officers - short term | 600,000 | 600,000 | ||||||
| Total current liabilities | 3,581,480 | 3,527,556 | ||||||
| Due to officers - long term | 2,923,733 | 3,523,733 | ||||||
| Total liabilities | $ | 6,505,213 | $ | 7,051,289 | ||||
| Commitments and contingencies | ||||||||
| Shareholders' equity: | ||||||||
| Ordinary shares, no par value per share, 100,000,000 and 8,333,334 ordinary shares authorized at December 31, 2023 and 2022, respectively - 987,220 (987,220 ADS's) | $ | - | $ | - | ||||
| ordinary shares issued and outstanding at December 31, 2023 and 403,887 | ||||||||
| (403,887 ADS's) at December 31, 2022 | ||||||||
| Treasury stock, | - | (2,932,000 | ) | |||||
| -0- ordinary shares issued at December 31, 2023 and 45 ordinary shares issued at December 31, 2022 | ||||||||
| Additional paid in capital | 51,867,336 | 47,855,521 | ||||||
| Accumulated deficit | (46,203,320 | ) | (37,516,747 | ) | ||||
| Total shareholders' equity | 5,664,016 | 7,406,774 | ||||||
| Total liabilities and shareholders' equity | $ | 12,169,229 | $ | 14,458,063 |
QUOIN PHARMACEUTICALS LTD.
Consolidated Statements
| Years Ended December 31, | Three months ended December 31, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| (Audited) | (Audited) | (Unaudited) | (Unaudited) | |||||||||||||
| Operating expenses | ||||||||||||||||
| General and administrative | $ | 6,070,517 | $ | 6,584,868 | $ | 1,385,276 | $ | 1,472,866 | ||||||||
| Research and development | 3,307,987 | 2,672,836 | 832,391 | 613,067 | ||||||||||||
| Total operating expenses | 9,378,504 | 9,257,704 | 2,217,667 | 2,085,933 | ||||||||||||
| Other (income) and expenses | ||||||||||||||||
| Forgiveness of accounts payable | - | (416,000 | ) | - | - | |||||||||||
| Warrant liability (income) expense | - | (77,237 | ) | - | - | |||||||||||
| Unrealized loss (gain) | 2,683 | (1,307 | ) | (9,243 | ) | (4,360 | ) | |||||||||
| Realized and accrued interest income | (694,614 | ) | (95,745 | ) | (158,546 | ) | (80,613 | ) | ||||||||
| Interest and financing expense | - | 714,081 | - | - | ||||||||||||
| Total other (income) expense | (691,931 | ) | 123,792 | (167,789 | ) | (84,973 | ) | |||||||||
| Net loss | $ | (8,686,573 | ) | $ | (9,381,496 | ) | $ | (2,049,878 | ) | $ | (2,000,960 | ) | ||||
| Deemed dividend on warrant modification | - | (65,266 | ) | - | - | |||||||||||
| Net loss attributable to shareholders | $ | (8,686,573 | ) | $ | (9,446,762 | ) | $ | (2,049,878 | ) | $ | (2,000,960 | ) | ||||
| Loss per ADS | ||||||||||||||||
| Basic | $ | (9.64 | ) | $ | (46.81 | ) | $ | (2.08 | ) | $ | (4.95 | ) | ||||
| Fully-diluted | $ | (9.64 | ) | $ | (46.81 | ) | $ | (2.08 | ) | $ | (4.95 | ) | ||||
| Weighted average number of ADS's outstanding | ||||||||||||||||
| Basic | 900,919 | 201,826 | 987,220 | 403,884 | ||||||||||||
| Fully-diluted | 900,919 | 201,826 | 987,220 | 403,884 |