Full Press Release Details
Sunesis Pharmaceuticals Reports Third Quarter 2020 Financial Results and Recent Highlights
Sunesis to Host Conference Call Today at 4:30 PM Eastern Time
SOUTH SAN FRANCISCO, Calif., November 16, 2020 (GLOBE NEWSWIRE) -- Sunesis Pharmaceuticals, Inc. (Nasdaq: SNSS) today reported financial results for the third quarter ended September 30, 2020. Loss from operations for the three months ended September 30, 2020 was $4.5 million. As of September 30, 2020, cash and cash equivalents totaled $26.0 million. During the third quarter, the Company raised approximately $12.6 million in net proceeds from an underwritten public offering of its common stock and repaid its outstanding debt.
"Our number one priority is our review of strategic alternatives while continuing to build value in our internal and partnered programs" said Dayton Misfeldt, Interim Chief Executive Officer of Sunesis. "We have engaged MTS Health Partners, L.P., as our financial advisor, as we are committed to ensuring we find a value-creating path for the company."
Presented SNS-510 Preclinical Data from Ongoing Program at the 32nd EORTC-NCI-AACR Symposium on Molecular Targets and Cancer Therapies. In October 2020, Sunesis presented preclinical data on its first-in-class PDK-1 inhibitor SNS-510. The observed synergies in the preclinical study support a potential role of PDK-1 inhibition to reverse resistance and/or improve activity of inhibitors of CDK4/6 in breast cancer, BCL2 in lymphoma and in KRAS G12C mutated cancers. Characterization of SNS-510 is ongoing in IND-enabling studies.
Bolstered Balance Sheet with Completion of Public Offering and Retiring Debt. In July 2020, Sunesis completed an underwritten public offering of shares of its common stock with net proceeds of approximately $12.6 million. Also in July, the Company repaid its outstanding debt with Silicon Valley Bank.
Announced Review of Strategic Alternatives. In July 2020, the Company announced plans to review strategic alternatives to maximize shareholder value that can include asset in-licensing, partnering, and mergers and acquisitions. The Board of Directors has engaged MTS Health Partners to assist in the strategic review process. There can be no assurance that the strategic review will result in any transaction or other outcome. The Company does not currently intend to publicly discuss or disclose further developments of the strategic review unless and until its Board of Directors has approved a transaction or otherwise determined that further disclosure is appropriate.
Announced Reduction in Workforce to Streamline Resources. In July 2020, Sunesis announced a reduction in workforce of approximately 30% to right size the organization to achieve its objectives and preserve cash resources.
Financial Highlights
Conference Call Information
Sunesis will host a conference call today at 4:30 p.m. Eastern Time. The call can be accessed by dialing (844) 296-7720 (U.S. and Canada) or (574) 990-1148 (international) and entering passcode 1776248. To access the live audio webcast, or the subsequent archived recording, visit the "Investors and Media - Calendar of Events" section of the Sunesis website at www.sunesis.com. The webcast will be recorded and available for replay on the company's website for two weeks.
About Sunesis Pharmaceuticals
Sunesis is a biopharmaceutical company developing novel targeted inhibitors for the treatment of hematologic and solid cancers. Sunesis has built an experienced drug development organization committed to improving the lives of people with cancer. The Company is focused on advancing its novel kinase inhibitor pipeline, including first-in-class PDK1 inhibitor SNS-510. SNS-510 is in IND-enabling studies.
For additional information on Sunesis, please visit www.sunesis.com.
SUNESIS and the logos are trademarks of Sunesis Pharmaceuticals, Inc.
Forward-Looking Statements
This press release contains forward-looking statements, including statements related to Sunesis' continued development and potential of its kinase inhibitor pipeline, including the additional IND enabling studies related to SNS-510; Sunesis' ability to maximize stockholder value through Sunesis' strategic review process; and the sufficiency of Sunesis' cash resources and financial position. Words such as "expect," "will," "look forward," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon Sunesis' current expectations. Forward-looking statements involve risks and uncertainties. Sunesis' actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties. These and other risk factors are discussed under "Risk Factors" in Sunesis' Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 and Sunesis' other filings with the Securities and Exchange Commission. Sunesis expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Sunesis' expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.
| SUNESIS PHARMACEUTICALS, 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, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| Revenue: | ||||||||||||||||
| License and other revenue | $ | - | $ | - | $ | 120 | $ | - | ||||||||
| Total revenues | - | - | 120 | - | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 2,157 | 3,534 | 10,128 | 10,465 | ||||||||||||
| General and administrative | 2,315 | 2,507 | 6,607 | 7,469 | ||||||||||||
| Total operating expenses | 4,472 | 6,041 | 16,735 | 17,934 | ||||||||||||
| Loss from operations | (4,472 | ) | (6,041 | ) | (16,615 | ) | (17,934 | ) | ||||||||
| Interest expense | (167 | ) | (71 | ) | (302 | ) | (443 | ) | ||||||||
| Other income, net | 1 | 170 | 114 | 334 | ||||||||||||
| Net loss | (4,638 | ) | (5,942 | ) | (16,803 | ) | (18,043 | ) | ||||||||
| Unrealized loss on available-for-sale securities | - | - | (1 | ) | - | |||||||||||
| Comprehensive loss | $ | (4,638 | ) | $ | (5,942 | ) | $ | (16,804 | ) | $ | (18,043 | ) | ||||
| Basic and diluted loss per common share: | ||||||||||||||||
| Net loss | $ | (4,638 | ) | $ | (5,942 | ) | $ | (16,803 | ) | $ | (18,043 | ) | ||||
| Shares used in computing basic and diluted loss per common share (1) | 15,929 | 10,507 | 12,748 | 7,897 | ||||||||||||
| Basic and diluted loss per common share (1) | $ | (0.29 | ) | $ | (0.57 | ) | $ | (1.32 | ) | $ | (2.28 | ) |
Note 1: Share and per-share data in the condensed consolidated statement of operations and comprehensive loss have been adjusted to give retroactive effect to the Reverse Split for all periods presented.
| SUNESIS PHARMACEUTICALS, INC. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands) | ||||||||
| June 30, | December 31, | |||||||
| 2020 | 2019 | |||||||
| (Unaudited) | (Note 1) | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 17,653 | $ | 12,761 | ||||
| Restricted cash | 5,500 | 5,500 | ||||||
| Marketable securities | - | 16,364 | ||||||
| Prepaids and other current assets | 1,712 | 1,697 | ||||||
| Total current assets | 24,865 | 36,322 | ||||||
| Property and equipment, net | - | 3 | ||||||
| Operating lease right-of-use asset | 545 | 817 | ||||||
| Other assets | 96 | 98 | ||||||
| Total assets | $ | 25,506 | $ | 37,240 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 452 | $ | 791 | ||||
| Accrued clinical expense | 402 | 521 | ||||||
| Accrued compensation | 692 | 985 | ||||||
| Other accrued liabilities | 1,836 | 1,109 | ||||||
| Notes payable | 5,473 | 5,465 | ||||||
| Operating lease liability - current | 545 | 545 | ||||||
| Total current liabilities | 9,400 | 9,416 | ||||||
| Other liabilities | - | 9 | ||||||
| Operating lease liability - long term | - | 272 | ||||||
| Total liabilities | 9,400 | 9,697 | ||||||
| Stockholders' equity: | ||||||||
| Convertible preferred stock | 11,769 | 11,769 | ||||||
| Common stock | 11 | 11 | ||||||
| Additional paid-in capital | 699,291 | 698,562 | ||||||
| Accumulated other comprehensive income | - | 1 | ||||||
| Accumulated deficit | (694,965 | ) | (682,800 | ) | ||||
| Total stockholders' equity | 16,106 | 27,543 | ||||||
| Total liabilities and stockholders' equity | $ | 25,506 | $ | 37,240 | ||||
| Note 2: The consolidated balance sheet as of December 31, 2019 (as adjusted for the Reverse Split), has been derived from the audited financial statements as of that date included in the Company's Annual Report on Form 10-K for the year ended December 31, 2019. |