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Relmada Therapeutics Provides Corporate Update and Reports Second Quarter 2023 Financial Results

Key Takeaway: Relmada Therapeutics, Inc. has announced a corporate update and financial results for the second quarter of 2023. The company is making progress in its Phase 3 clinical trial for REL-1017 as a treatment for major depressive disorder, with expected trial completions in 2024. Despite these advancements, Relmada reported a net loss of approximately $25.3 million for the quarter, highlighting ongoing financial challenges. Future funding appears adequate to support their development plans.

Market Sentiment Analysis

POSITIVE FACTORS

  • Relmada has successfully progressed with the Phase 3 trials for REL-1017.
  • The company is on track to complete its trials in 2024, indicating steady advancement.
  • Funding is sufficient to support ongoing research and development efforts.

CONCERNS & RISKS

  • The company reported a significant net loss of approximately $25.3 million for the second quarter.
  • Ongoing financial losses raise concerns about long-term sustainability.

Full Press Release Details

Therapeutics Provides Corporate Update and Reports Second Quarter 2023 Financial Results
GABLES, Fla., August 8, 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 second quarter ended June 30, 2023. The Company will host a conference call today, Tuesday,
August 8, at 4:30 PM Eastern Time/1:30 PM Pacific Time.
continue to execute on the Phase 3 clinical development plan for REL-1017 as an adjunctive treatment for major depressive disorder
(MDD)," said Sergio Traversa, Relmada's Chief Executive Officer. "Enrollment in the ongoing Reliance II (study 302) is
progressing as expected, and we remain on track to complete this trial in the first half of 2024. We were also pleased to initiate
Relight, our new Phase 3 Study (study 304), with screening ongoing. We currently anticipate the completion of Relight in the second
half of next year. Moreover, the one year, open-label safety study, Reliance-OLS (study 310), with REL-1017 was recently completed,
and we are preparing for the availability of data from that study during the current quarter."
we are sufficiently funded to execute on all of our plans to reach data readouts from both Phase 3 trials, Reliance (study 302) and Relight
(study 304), in 2024," concluded Mr. Traversa.
Corporate Highlights
Anticipated Milestones for REL-1017
Quarter 2023 Financial Results
Months Ended June 30, 2023 Financial Results
Call and Webcast Details
August 8 at 4:30 PM ET
Toll Free: 877-407-0792
International: 201-689-8263
Conference ID: 13740070
Webcast:
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 adjunctive treatment of major depressive
disorder (MDD). The ongoing Clinical Research Program is designed to evaluate the potential for REL-1017 as a rapid-acting, oral, once-daily
antidepressant treatment.
Relmada Therapeutics, Inc.
Therapeutics is a late-stage biotechnology company addressing diseases of the central nervous system (CNS), with a 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 is in late-stage development as
an adjunctive treatment for MDD in adults. Learn more at www.relmada.com.
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 clinical trial results to demonstrate statistically and/or 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
Consolidated Balance Sheets
As of June 30, 2023 (unaudited) As of December 31, 2022
Assets
Current assets:
Cash and cash equivalents $ 14,469,354 $ 5,395,905
Short-term investments 104,059,737 142,926,781
Other receivables - 512,432
Prepaid expenses 3,474,540 4,035,186
Total current assets 122,003,631 152,870,304
Other assets 34,590 34,875
Total assets $ 122,038,221 $ 152,905,179
Commitments and Contingencies (See Note 6)
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 4,853,616 $ 5,261,936
Accrued expenses 5,848,850 7,206,941
Total current liabilities 10,702,466 12,468,877
Stockholders' Equity:
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 shares issued and outstanding 30,099 30,099
Additional paid-in capital 625,041,121 602,517,138
Accumulated deficit (513,735,465 ) (462,110,935 )
Total stockholders' equity 111,335,755 140,436,302
Total liabilities and stockholders' equity $ 122,038,221 $ 152,905,179
Consolidated Statements of Operations
Three months ended Six months ended
June 30, June 30,
2023 2022 2023 2022
Operating expenses:
Research and development $ 13,740,205 $ 30,912,671 $ 29,601,215 $ 55,925,524
General and administrative 12,286,521 14,599,401 24,579,120 27,883,971
Total operating expenses 26,026,726 45,512,072 54,180,335 83,809,495
Loss from operations (26,026,726 ) (45,512,072 ) (54,180,335 ) (83,809,495 )
Other (expenses) income:
Gain on Settlement - 6,351,606 6,351,606
Interest/investment income, net 1,363,406 387,333 2,571,037 717,282
Realized (loss) gain on short-term investments - 24,502 (666,708 ) 9,480
Unrealized (loss) gain on short-term investments (639,634 ) (1,186,337 ) 651,476 (2,949,624 )
Total other (expenses) income 723,772 5,577,104 (2,555,805 ) 4,128,744
Net loss $ (25,302,954 ) $ (39,934,968 ) $ (51,624,530 ) $ (79,680,751 )
Loss per common share - basic and diluted $ (.84 ) $ (1.33 ) $ (1.72 ) $ (2.73 )
Weighted average number of common shares outstanding - basic and diluted 30,099,203 29,935,895 30,099,203 29,168,511
Consolidated Statements of Stockholders' Equity
Three and Six months ended June 30, 2023
Common Stock Additional Paid-in Accumulated
Shares Par Value Capital Deficit Total
Balance - December 31, 2022 30,099,203 $ 30,099 $ 602,517,138 $ (462,110,935 ) $ 140,436,302
Stock based compensation - - $ 11,354,466 - 11,354,466
Net loss - - - (26,321,576 ) (26,321,576 )
Balance - March 31, 2023 30,099,203 30,099 613,871,604 (488,432,511 ) 125,469,192
Stock based compensation - - 11,169,517 - 11,169,517
Net loss - - (25,302,954 ) (25,302,954 )
Balance - June 30, 2023 30,099,203 $ 30,099 $ 625,041,121 $ (513,735,465 ) $ 111,335,755
Three and Six months ended June 30, 2022
Common Stock Additional Paid-in Accumulated
Shares Par Value Capital Deficit Total
Balance - December 31, 2021 27,740,147 $ 27,740 $ 513,304,258 $ (305,067,112 ) $ 208,264,886
Stock based compensation - - 11,930,681 - 11,930,681
ATM offering, net 1,609,343 1,610 29,581,932 - 29,583,542
Warrant exercised for cash 33,334 33 299,973 - 300,006
Options exercised for cash 20,000 20 64,780 - 64,800
Net loss - - - (39,745,783 ) (39,745,783 )
Balance - March 31, 2022 29,402,824 29,403 555,181,624 (344,812,895 ) 210,398,132
Stock based compensation - - 12,295,016 - 12,295,016
Warrant exercised for cash 91,058 91 595,259 - 595,350
Options exercised for cash 45,812 46 352,698 - 352,744
ATM offering, net of offering costs 484,900 485 13,144,572 - 13,145,057
Net loss - - - (39,934,968 ) (39,934,968 )
Balance - June 30, 2022 30,024,594 $ 30,025 $ 581,569,169 $ (384,747,863 ) $ 196,851,331
Consolidated Statements of Cash Flows
Six months ended June 30,
2023 2022
Cash flows from operating activities
Net loss $ (51,624,530 ) $ (79,680,751 )
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation 22,523,983 24,225,697
Gain on settlement of fees - (6,351,606 )
Realized loss (gain) on short-term investments 666,708 (9,480 )
Unrealized (gain) loss on short-term investments (651,476 ) 2,949,624
Change in operating assets and liabilities:
Lease payment receivable - 44,143
Other receivables 512,432 (256,192 )
Prepaid expenses and other assets 560,931 7,810,846
Accounts payable (408,320 ) 2,698,790
Accrued expenses (1,358,091 ) 7,513,045
Net cash (used in) operating activities (29,778,363 ) (41,055,884 )
Cash flows from investing activities
Purchase of short-term investments (45,577,832 ) (33,412,425 )
Sale of short-term investments 84,429,644 23,244,237
Net cash provided by (used in) investing activities 38,851,812 (10,168,188 )
Cash flows from financing activities
Proceeds from issuance of common stock, net - 42,728,599
Proceeds from options exercised for common stock - 417,544
Proceeds from warrants exercised for common stock - 895,356
Net cash provided by financing activities - 44,041,499
Net increase/(decrease) in cash and cash equivalents 9,073,449 (7,182,573 )
Cash and cash equivalents at beginning of the period 5,395,905 44,443,439
Cash and cash equivalents at end of the period $ 14,469,354 $ 37,260,866
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest $ - $ -
Income Tax $ - $ -

Frequently Asked Questions

What is Relmada Therapeutics focused on?

Relmada Therapeutics focuses on diseases of the central nervous system, particularly major depressive disorder.

What is REL-1017's purpose?

REL-1017 is developed as an adjunctive treatment for major depressive disorder.

What are the latest trial updates for REL-1017?

Enrollment in the Reliance II trial is on track, with Relight study screening ongoing.

When will the results from the latest studies be available?

Data from the Reliance-OLS study is expected to be available this quarter.

How did Relmada's financial performance change?

The company reported a net loss of $25.3 million for Q2 2023, down from $39.9 million.

Last updated: Aug 8, 2023