Full Press Release Details
Rani Therapeutics Reports Third Quarter 2021 Financial Results, Provides Corporate Update
SAN JOSE, Calif., November 15, 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 quarter ended September 30, 2021, and provided a corporate update.
I am pleased with the progress Rani has made since our IPO. As we build a solid foundation for being a successful public company, we are laser focused
on creating value and achieving our milestones, said Talat Imran, Chief Executive Officer of Rani Therapeutics. Looking ahead, I m excited about this important and exciting next phase as we prepare for additional clinical studies
with the RaniPill capsule, including our Phase I study with Parathyroid Hormone planned for 2022.
Third Quarter 2021 and Subsequent Highlights
Third 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, timing and results of Rani s clinical and development programs and any clinical trials, including its planned Phase I
study with Parathyroid Hormone (PTH) and its GLP 7-day repeat oral administration study; Rani s continued growth, ability to create value and achieve milestones; 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 (SEC), 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 HOLDINGS, INC
Condensed Consolidated Balance Sheets
(In thousands, except par value)
| September 30, 2021 | December 31, 2020 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 129,743 | $ | 73,058 | ||||
| Related party note receivable | 1,720 | |||||||
| Prepaid expenses | 2,622 | 167 | ||||||
| Total current assets | 132,365 | 74,945 | ||||||
| Property and equipment, net | 4,593 | 4,470 | ||||||
| Total assets | $ | 136,958 | $ | 79,415 | ||||
| Liabilities, Convertible Preferred Units and Stockholders Equity / Members Deficit | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,311 | $ | 537 | ||||
| Related party payable | 290 | 145 | ||||||
| Accrued expenses | 3,649 | 550 | ||||||
| Deferred revenue | 2,717 | |||||||
| Current portion of long-term debt | 1,359 | |||||||
| Total current liabilities | 5,250 | 5,308 | ||||||
| Preferred unit warrant liability | 320 | |||||||
| Long-term debt, less current portion | 2,412 | |||||||
| Total liabilities | 5,250 | 8,040 | ||||||
| Commitments and contingencies (Note 10) | ||||||||
| Convertible preferred units | 184,714 | |||||||
| Stockholders equity / members deficit: | ||||||||
| Common units | 664 | |||||||
| Preferred stock, $0.0001 par value - 20,000 shares authorized; none issued and outstanding as of September 30, 2021 | ||||||||
| Class A common stock, $0.0001 par value - 800,000 shares authorized; 19,712 issued and outstanding as of September 30, 2021 | 2 | |||||||
| Class B common stock, $0.0001 par value - 40,000 shares authorized; 29,290 issued and outstanding as of September 30, 2021 | 3 | |||||||
| Class C common stock, $0.0001 par value - 20,000 shares authorized; none issued and outstanding as of September 30, 2021 | ||||||||
| Additional paid-in capital | 54,503 | |||||||
| Accumulated deficit | (3,142 | ) | (114,003 | ) | ||||
| Total stockholders equity attributable to Rani Therapeutics Holdings, Inc. / (members deficit) | 51,366 | (113,339 | ) | |||||
| Non-controlling interest | 80,342 | |||||||
| Total stockholders equity / (members deficit) | 131,708 | (113,339 | ) | |||||
| Total liabilities, convertible preferred units and stockholders equity / (members deficit) | $ | 136,958 | $ | 79,415 |
RANI THERAPEUTICS HOLDINGS, INC
Condensed Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except per share amounts)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Contract revenue | $ | $ | 108 | $ | 2,717 | $ | 252 | |||||||||
| Operating expenses | ||||||||||||||||
| Research and development | 11,959 | 2,090 | 19,065 | 8,708 | ||||||||||||
| General and administrative | 15,822 | 845 | 21,889 | 3,144 | ||||||||||||
| Total operating expenses | $ | 27,781 | $ | 2,935 | $ | 40,954 | $ | 11,852 | ||||||||
| Loss from operations | (27,781 | ) | (2,827 | ) | (38,237 | ) | (11,600 | ) | ||||||||
| Other income (expense), net | ||||||||||||||||
| Interest income | 13 | 13 | 73 | 87 | ||||||||||||
| Loss on extinguishment of debt | (700 | ) | (700 | ) | ||||||||||||
| Interest expense and other, net | (110 | ) | (64 | ) | (467 | ) | (66 | ) | ||||||||
| Change in estimated fair value of preferred unit warrant | (85 | ) | (371 | ) | 655 | |||||||||||
| Loss before income taxes | (28,663 | ) | (2,878 | ) | (39,702 | ) | (10,924 | ) | ||||||||
| Income tax expense | (37 | ) | (5 | ) | (81 | ) | (23 | ) | ||||||||
| Net loss and comprehensive loss | $ | (28,700 | ) | $ | (2,883 | ) | $ | (39,783 | ) | $ | (10,947 | ) | ||||
| Net loss attributable to non-controlling interest | (25,558 | ) | (2,883 | ) | (36,641 | ) | (10,947 | ) | ||||||||
| Net loss attributable to Rani Therapeutics Holdings, Inc. | $ | (3,142 | ) | $ | $ | (3,142 | ) | $ | ||||||||
| Net loss per Class A common share attributable to Rani Therapeutics Holdings, Inc., basic and diluted | $ | (0.16 | ) | $ | (0.16 | ) | ||||||||||
| Weighted-average Class A common shares outstanding basic and diluted | 19,437 | 19,437 |