Full Press Release Details
Rani Therapeutics Reports Second Quarter 2021 Financial Results, Provides Corporate Update
- IPO in July 2021 raised $84.3 million in gross proceeds
- Talat Imran Appointed Chief Executive Officer -
- Enhanced leadership team with key management and board of directors appointments -
SAN JOSE, Calif., September 13, 2021 Rani Therapeutics Holdings, Inc. ( Rani Therapeutics or Rani )
(Nasdaq: RANI), a clinical stage biotherapeutics company focused on the oral delivery of biologics, today reported financial results for the second quarter ended June 30, 2021 and provided a corporate update.
This is an exciting phase for Rani following a successful IPO, which puts us in position to achieve our goals, including scaling and optimizing our
manufacturing process, establishing the regulatory pathway for our capsule technology, and advancing our pipeline with clinical and development milestones, said Talat Imran, Chief Executive Officer of Rani Therapeutics. We are committed
to making oral biologics a reality, and we are looking forward to creating value along the way for both patients and shareholders.
Quarter 2021 and Subsequent Highlights
Quarter 2021 Financial Results
About Rani Therapeutics
Rani Therapeutics is a clinical stage biotherapeutics company focused on advancing technologies to enable the development of orally administered biologics.
Rani has developed the RaniPill capsule, which is a novel, proprietary and patented platform technology, intended to replace subcutaneous injection of biologics with oral dosing. Rani has
successfully conducted several preclinical and clinical studies to evaluate safety, tolerability and bioavailability using the RaniPill capsule.
Forward-Looking Statements
Certain statements set forth in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995, as amended. These statements include, but are not limited to, statements related to: the progress of Rani s clinical and development programs and any clinical trials; Rani s ability to successfully scale and
optimize its manufacturing process; the effectiveness of Rani s capsule technology; Rani s continued growth; and the strength of Rani s balance sheet and the adequacy of cash on hand. Because such forward-looking statements are
subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements can be identified by terms such as believes, expects,
plans, potential, would or similar expressions, and the negative of those terms. These forward-looking statements are based on Rani s current beliefs, 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, which include, without limitation,
risks and uncertainties related to Rani s ability to successfully develop its product candidates through current and future milestones or regulatory filings on the anticipated timeline, if at all, the therapeutic potential of Rani s
product candidates, the risk that results from preclinical studies or early clinical trials may not be representative of larger clinical trials, the risk that Rani s product candidates will not be successfully developed or commercialized, risks
related to Rani s dependence on third-parties in connection with its manufacturing, clinical trials and preclinical studies, and the potential impact of COVID-19 on Rani s clinical and preclinical
development timelines and results of operations. For a further list and description of the risks and uncertainties Rani faces, please refer to Rani s periodic and other filings with the Securities and Exchange Commission, which are available at
www.sec.gov. Such forward-looking statements are current only as of the date they are made, and Rani assumes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
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RANI THERAPEUTICS, LLC
Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts)
| June 30, 2021 | December 31, 2020 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 69,314 | $ | 73,058 | ||||
| Related party note receivable | 1,720 | |||||||
| Prepaid expenses | 165 | 167 | ||||||
| Total current assets | 69,479 | 74,945 | ||||||
| Deferred financing costs | 3,412 | |||||||
| Property and equipment, net | 4,430 | 4,470 | ||||||
| Total assets | $ | 77,321 | $ | 79,415 | ||||
| Liabilities, Convertible Preferred Units and Members Deficit | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,667 | $ | 537 | ||||
| Related party payable | 883 | 145 | ||||||
| Accrued expenses | 2,921 | 550 | ||||||
| Deferred revenue | 2,717 | |||||||
| Current portion of long-term debt | 3,884 | 1,359 | ||||||
| Total current liabilities | 9,355 | 5,308 | ||||||
| Preferred unit warrant liability | 606 | 320 | ||||||
| Long-term debt, less current portion | 2,412 | |||||||
| Total liabilities | 9,961 | 8,040 | ||||||
| Commitments and contingencies (Note 10) | ||||||||
| Convertible preferred units, 32,620,000 units authorized, and 27,629,804 and 26,745,528 units issued and outstanding at June 30, 2021 and December 31, 2020, respectively | 191,034 | 184,714 | ||||||
| Members deficit: | ||||||||
| Common units, 101,000,000 units authorized, and 46,896,280 and 46,890,280 units issued and outstanding at June 30, 2021 and December 31, 2020, respectively | 1,412 | 664 | ||||||
| Accumulated deficit | (125,086 | ) | (114,003 | ) | ||||
| Total members deficit | (123,674 | ) | (113,339 | ) | ||||
| Total liabilities, convertible preferred units and members deficit | $ | 77,321 | $ | 79,415 |
RANI THERAPEUTICS, LLC
Condensed Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except share and per share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Contract revenue | $ | 1,961 | $ | 60 | $ | 2,717 | $ | 143 | ||||||||
| Operating expenses | ||||||||||||||||
| Research and development | 3,759 | 2,558 | 7,106 | 6,618 | ||||||||||||
| General and administrative | 3,460 | 892 | 6,067 | 2,299 | ||||||||||||
| Total operating expenses | $ | 7,219 | $ | 3,450 | $ | 13,173 | $ | 8,917 | ||||||||
| Loss from operations | (5,258 | ) | (3,390 | ) | (10,456 | ) | (8,774 | ) | ||||||||
| Other income (expense), net | ||||||||||||||||
| Interest income | 13 | 12 | 60 | 74 | ||||||||||||
| Interest expense and other, net | (169 | ) | (2 | ) | (357 | ) | (2 | ) | ||||||||
| Change in estimated fair value of preferred unit warrant | (70 | ) | 672 | (286 | ) | 655 | ||||||||||
| Loss before income taxes | (5,484 | ) | (2,708 | ) | (11,039 | ) | (8,047 | ) | ||||||||
| Income tax expense | (1 | ) | (6 | ) | (44 | ) | (17 | ) | ||||||||
| Net loss and comprehensive net loss | $ | (5,485 | ) | $ | (2,714 | ) | $ | (11,083 | ) | $ | (8,064 | ) | ||||
| Net loss per unit, basic and diluted | $ | (0.12 | ) | $ | (0.06 | ) | $ | (0.24 | ) | $ | (0.17 | ) | ||||
| Weighted-average common units outstanding basic and diluted | 46,896,280 | 46,890,280 | 46,896,081 | 46,890,280 |