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Relmada Therapeutics Provides Corporate Update and Reports Fourth Quarter and Full-Year 2022 Financial Results

Key Takeaway: Relmada Therapeutics provided a corporate update and preliminary financial results for Q4 and full-year 2022. CEO Sergio Traversa highlighted the company's analysis of the divergent results from their Phase 3 trial concerning REL-1017, ensuring changes to enhance future trials. Despite a net loss reported for 2022, the company remains optimistic about the drug's potential and is moving forward with plans to amend existing studies and initiate a new trial. Relmada's strategy includes focusing on the reliable identification of clinical sites and patients to increase the efficacy of its trials.

Market Sentiment Analysis

POSITIVE FACTORS

  • Relmada has identified key issues from a recent Phase 3 trial and intends to improve future studies.
  • The company plans to initiate a new trial (Study 304) and amend protocols for an ongoing trial (Study 302).
  • There is confidence in REL-1017 as an approvable drug and a focus on clinical trial execution.
  • Financial results show a commitment to continued research and development despite past losses.

CONCERNS & RISKS

  • Recent Phase 3 trial results differed from positive Phase 2 outcomes, indicating potential challenges in efficacy.
  • The company reported a significant net loss of $157,043,823 for 2022.
  • Current assets have decreased notably compared to the previous year, raising concerns about financial stability.
  • Ongoing operational expenses are high, potentially impacting future funding and research activities.

Full Press Release Details

Relmada Therapeutics Provides Corporate Update
and Reports Fourth Quarter and Full-Year 2022 Financial Results
CORAL GABLES, Fla., Mar 23, 2023 /PRNewswire/
-- Relmada Therapeutics, Inc. (Nasdaq: RLMD), a late-stage biotechnology company addressing diseases of the central nervous system (CNS),
today provided a corporate update and announced preliminary and unaudited financial results for the fourth quarter and full-year ended
December 31, 2022. The Company will host a conference call today, Thursday, March 23, at 4:30
PM Eastern Time/1:30 PM Pacific Time.
"Following the availability of top-line
results in the Reliance I (Study 301), one of two Phase 3 sister two-arm, placebo-controlled, pivotal studies evaluating REL-1017 25mg
as a potential adjunctive treatment for major depressive disorder (MDD), in December 2022, we have spent the last three months thoroughly
analyzing these data and considering the appropriate next steps," said Sergio Traversa, Relmada's
Chief Executive Officer. "We are confident that we have identified the key issues that led to the Phase 3 data in Study 301
differing from the positive results we saw in Phase 2. Based on the data generated to date and market potential, we intend to focus on
the further development of REL-1017 as an adjunctive treatment. We will implement critical changes to Reliance II (Study 302), the second
of our two Phase 3 sister two-arm trials, which is ongoing, and initiate one new trial, Study 304. The Study 302 protocol amendment has
been finalized and is ready to be implemented, and the Study 304 protocol has been drafted, and the study will be ready to initiate by
"We are confident that we have an approvable
drug and need to focus on clinical trial execution to accomplish this," continued Mr. Traversa. "From the extensive analyses
of Study 301, we now know how to identify the most reliable sites, the most suitable patients, and greatly improve our study protocols.
Importantly, all other pre- and clinical, and CMC (Chemistry, Manufacturing, and Controls) pieces are in place for a successful
NDA filing for REL-1017. Relmada is sufficiently funded to fully execute the plans for the further development of REL-1017 with Study
Recent Corporate Highlights
Upcoming Anticipated Milestones for REL-1017
Fourth Quarter 2022 Financial Results
Full-Year 2022 Financial Results
Conference Call and Webcast Details
Thursday, March 23rd @ 4:30pm
Toll Free: 877-407-0792
International: 201-689-8263
Conference ID: 13735262
Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1591728&tp_key=cb7f04a9a4
REL-1017, a new chemical entity (NCE) and novel
NMDA receptor (NMDAR) channel blocker that preferentially targets hyperactive channels while maintaining physiological glutamatergic neurotransmission,
is currently in late-stage development for the treatment of major depressive disorder (MDD). The ongoing Reliance Clinical Research Program
is designed to evaluate the potential for REL-1017 as a rapid-acting, oral, once-daily antidepressant treatment. In a Phase 2 trial, REL-1017
demonstrated rapid, robust, and sustained antidepressant effects with statistically significant improvements compared to placebo. The
Phase 2 study also showed a favorable pharmacokinetic, safety, and tolerability profile of REL-1017 consistent with results observed in
previously completed Phase 1 studies.
About Relmada Therapeutics, Inc.
Relmada Therapeutics is a late-stage biotechnology
company addressing diseases of the central nervous system (CNS), with focus on major depressive disorder (MDD). Relmada's experienced
and dedicated team is committed to making a difference in the lives of patients and their families. Relmada's lead program, REL-1017,
is a new chemical entity (NCE) and novel NMDA receptor (NMDAR) channel blocker that preferentially targets hyperactive channels while
maintaining physiological glutamatergic neurotransmission. REL-1017 has entered late-stage development as an adjunctive treatment for
MDD in adults. In addition, Relmada is advancing a clinical-stage program in neurodegenerative diseases based on psilocybin and select
derivative molecules. Learn more at www.relmada.com.
Forward-Looking Statements
The Private Securities Litigation Reform Act of
1995 provides a safe harbor for forward-looking statements made by us or on our behalf. This press release contains statements which constitute
"forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Any statement that is not historical in nature is a forward-looking statement and may be identified by the use of
words and phrases such as "expects," "anticipates," "believes," "will," "will likely result,"
"will continue," "plans to," "potential," "promising," and similar expressions. These statements
are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could
cause actual results to differ materially from those described in the forward-looking statements, including potential failure of Reliance
trial results to demonstrate clinically significant evidence of efficacy and/or safety, failure of top-line results to accurately reflect
the complete results of the trial, failure to obtain regulatory approval of REL-1017 for the treatment of major depressive disorder, and
the other risk factors described under the heading "Risk Factors" set forth in the Company's reports filed with the SEC from
time to time. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. Relmada undertakes
no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. Readers
are cautioned that it is not possible to predict or identify all the risks, uncertainties and other factors that may affect future results
and that the risks described herein should not be a complete list.
Relmada Therapeutics, Inc.
Consolidated Balance Sheets
As of As of
December 31, December 31,
2022 2021
Assets
Current assets:
Cash and cash equivalents $ 5,395,905 $ 44,443,439
Short-term investments 142,926,781 167,466,167
Lease payments receivable - short term - 86,377
Other receivables 512,432 -
Prepaid expenses 4,035,186 11,301,535
Total current assets 152,870,304 223,297,518
Other assets 34,875 28,293
Total assets $ 152,905,179 $ 223,325,811
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 5,261,936 $ 11,192,502
Accrued expenses 7,206,941 3,868,423
Total current liabilities 12,468,877 15,060,925
Total liabilities 12,468,877 15,060,925
Commitments and Contingencies (Note 7)
Stockholders' Equity:
Preferred stock, $0.001 par value, 200,000,000 shares authorized, none issued and outstanding - -
Class A convertible preferred stock, $0.001 par value, 3,500,000 shares authorized, none issued and outstanding - -
Common stock, $0.001 par value, 150,000,000 shares authorized, 30,099,203 and 27,740,147 shares issued and outstanding, respectively 30,099 27,740
Additional paid-in capital 602,517,138 513,304,258
Accumulated deficit (462,110,935 ) (305,067,112 )
Total stockholders' equity 140,436,302 208,264,886
Total liabilities and stockholders' equity $ 152,905,179 $ 223,325,811
Relmada Therapeutics, Inc.
Consolidated Statements of Operations
2022 2021
Operating expenses:
Research and development $ 113,322,999 $ 90,621,570
General and administrative 47,926,077 35,081,922
Total operating expenses 161,249,076 125,703,492
Loss from operations (161,249,076 ) (125,703,492 )
Other income (expenses):
Gain on settlement of fees 6,351,606 -
Interest/investment income, net 2,659,424 1,199,077
Realized loss on short-term investments (585,522 ) (636,012 )
Unrealized loss on short-term investments (4,220,255 ) (611,382 )
Total other income (expenses), net 4,205,253 (48,317 )
Net loss $ (157,043,823 ) $ (125,751,809 )
Net loss per common share - basic and diluted $ (5.30 ) $ (7.16 )
Weighted average number of common shares outstanding - basic and diluted 29,628,664 17,552,738
Relmada Therapeutics, Inc.
Consolidated Statements of Stockholders'
Common Stock Additional Paid-in Accumulated
Shares Par Value Capital Deficit Total
Balance - December 31, 2020 16,332,939 $ 16,333 $ 284,881,716 $ (179,315,303 ) $ 105,582,746
Stock-based compensation expense - - 40,494,476 - 40,494,476
Equity offering, net 10,147,059 10,147 161,216,798 - 161,226,945
Warrants exercised 651,674 652 23,415,384 - 23,416,036
Cashless exercise of warrants 433,856 433 2,627,628 - 2,628,061
Options exercised 174,619 175 668,256 - 668,431
Net loss - - - (125,751,809 ) (125,751,809 )
Balance - December 31, 2021 27,740,147 27,740 513,304,258 (305,067,112 ) 208,264,886
Stock-based compensation expense - - 44,194,765 - 44,194,765
ATM offering, net 2,094,243 2,094 42,726,505 - 42,728,599
Share exchange -Prefunded warrants, net of fees (1,452,016 ) (1,452 ) (48,548 ) - (50,000 )
Net exercise -Prefunded warrants 1,451,795 1,452 (1,452 ) - -
Warrants exercised 181,336 181 1,264,342 - 1,264,523
Options exercised 83,698 84 703,636 - 703,720
Short swing profit, net - - 373,632 - 373,632
Net loss - - - (157,043,823 ) (157,043,823 )
Balance - December 31, 2022 30,099,203 $ 30,099 $ 602,517,138 $ (462,110,935 ) $ 140,436,302
Relmada Therapeutics, Inc.
Consolidated Statements of Cash Flows
2022 2021
Cash flows from operating activities
Net loss $ (157,043,823 ) $ (125,751,809 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense - 1,258
Stock-based compensation 44,194,765 40,494,476
Gain on settlement (3,338,518 ) -
Realized loss on short-term investments 585,522 636,012
Unrealized loss on short-term investments 4,220,255 611,382
Change in operating assets and liabilities:
Lease payment receivable 86,377 79,457
Other receivable (512,432 ) -
Prepaid expenses and other assets 7,259,767 (10,401,638 )
Accounts payable (2,717,983 ) 2,846,027
Accrued expenses 3,338,518 (388,560 )
Net cash used in operating activities (103,801,617 ) (91,873,395 )
Cash flows from investing activities
Purchase of short-term investments (47,293,763 ) (222,981,675 )
Sale of short-term investments 67,027,372 168,863,639
Net cash provided by (used in) investing activities 19,733,609 (54,118,036 )
Cash flows from financing activities
Payment of fees for warrants issued for common stock (50,000 ) -
Proceeds from issuance of common stock 42,728,599 184,642,981
Proceeds from options exercised for common stock 703,720 668,431
Proceeds from warrants exercised for common stock 1,264,523 2,628,061
Proceeds from short swing profit, net 373,632 -
Net cash provided by financing activities 45,020,474 187,939,473
Net increase (decrease) in cash and cash equivalents (39,047,534 ) 41,948,042
Cash and cash equivalents at beginning of the period 44,443,439 2,495,397
Cash and cash equivalents at end of the period $ 5,395,905 $ 44,443,439

Frequently Asked Questions

What is REL-1017 developed for?

REL-1017 is being developed as a treatment for major depressive disorder.

What notable study results were announced by Relmada in 2023?

Relmada announced top-line results from their Phase 3 Reliance I study.

Who is Relmada's CEO?

Sergio Traversa is the CEO of Relmada Therapeutics.

When is Relmada's next conference call?

The next conference call is scheduled for March 23, 2023, at 4:30 PM ET.

What is the financial status of Relmada as of 2022?

Relmada reported a net loss of $157 million for the full year 2022.

Last updated: Mar 23, 2023