resTORbio Reports Fourth Quarter and Full Year 2018 Financial Results
Positive End-of-Phase 2 meeting with the
Phase 1b/2a trial of RTB101 in combination with sirolimus in Parkinson’s disease (PD) expected to initiate in 1Q19
“In 2018, we made substantial progress advancing RTB101, our selective TORC1 inhibitor product candidate. We reported positive Phase 2b data showing that RTB101 10 mg once daily reduced the incidence of respiratory tract infections, or RTIs, and infections of any kind, in elderly subjects. Recently we announced a positive End-of-Phase 2 meeting with the
Recent Highlights and Outlook
Expanding Drug Discovery Capabilities to
Plans to Initiate Phase 3 Program Following End-of-Phase 2 Meeting with the
Initiation of a Phase 1b/2a Trial in PD Expected in the First Quarter of 2019: Selective and broad inhibition of TORC1 has been shown to extend lifespan and ameliorate a number of aging-related diseases in several preclinical studies across multiple species, including models of neurodegenerative diseases such as PD. TORC1 inhibition with RTB101, in combination with sirolimus, a rapalog, may ameliorate PD by potentially inducing autophagy to clear protein aggregates in neurons, increasing lysosomal biogenesis and decreasing glucosylceramide (GL1) synthesis. As neurodegenerative diseases such as PD are associated with the accumulation of aggregated toxic proteins, the Company believes the induction of autophagy with RTB101 in combination with a rapalog may have potential therapeutic benefit for patients with PD. The Company plans to initiate a Phase 1b/2a trial in patients with PD by the end of the first quarter of 2019.
February 2019, resTORbio appointed Erkan Baloglu, Ph.D., M.B.A., as Vice President of Drug Discovery and Medicinal Chemistry.
December 2018, resTORbio appointed William Marshall, M.D., as Vice President of Medical Sciences.
Fourth Quarter and Full Year 2018 Financial Results
- R&D Expenses: Research and development (R&D) expenses were $4.3 million for the three months ended December 31, 2018 and $31.1 million for the year ended December 31, 2018, as compared to
$6.8 millionfor the three months ended December 31, 2017and $16.8 millionfor the year ended December 31, 2017. The increase in R&D expenses year-over-year was primarily due to the Company’s completed Phase 2b trial in RTIs and preparations for its Phase 3 clinical trials.
- G&A Expenses: General and administrative (G&A) expenses were $2.0 million for the three months ended December 31, 2018 and $8.6 million for the year ended December 31, 2018, as compared to
$0.7 millionfor the three months ended December 31, 2017and $2.0 millionfor the year ended December 31, 2017. The increase in G&A expenses year-over-year was primarily due to an increase in headcount as well as increased operating costs as a result of the Company’s transition from a private company to a public company, including legal, accounting, insurance and investor relations expenses.
- Net Loss: Net loss was $5.8 million, or $0.21 per share, for the three months ended December 31, 2018, and $37.6 million, or $1.42 per share, for the year ended December 31, 2018. Net loss was
$23.1 million, or $5.11per share, for the three months ended December 31, 2017, and $33.8 million, or $8.42per share, for the year ended December 31, 2017.
- Cash and Cash Equivalents: Cash, cash equivalents and marketable securities were $108.0 million as of December 31, 2018, as compared to
$53.3 millionas of December 31, 2017. The Company expects that current cash, cash equivalents and marketable securities as of December 31, 2018 will be sufficient to fund its operating expenses at least into the second quarter of 2020.
resTORbio, Inc. is a clinical stage biopharmaceutical company developing innovative medicines that target the biology of aging to prevent or treat age-related diseases. resTORbio’s lead program selectively inhibits TORC1, an evolutionarily conserved pathway that contributes to the decline in function of multiple organ systems, including the immune, cardiovascular and central nervous systems. Learn more about resTORbio, Inc. at https://www.restorbio.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, express or implied statements or guidance regarding our ability to expand our drug discovery capabilities to develop additional TORC1 inhibitors, our plans to initiate a Phase 1b/2a clinical trial of RTB101 in combination with sirolimus in Parkinson’s disease during the first quarter of 2019, our plans to develop RTB101 alone or in combination with rapalogs, including the therapeutic potential and clinical benefits thereof and the potential patient populations that may be addressed by our product candidates, our ongoing and future clinical trials for RTB101, including the timing of the initiation and anticipated results of these trials, the continued expansion of our pipeline into Parkinson’s disease and UTIs, the intended regulatory path for our product candidates and interactions with regulatory authorities, our ability to replicate results achieved in our clinical trials in any future trials, our cash position and expected cash runway, our expectations regarding our uses of capital, expenses, future accumulated deficit and other 2018 financial results, and our ability to fund operations at least into the second quarter of 2020, constitute forward-looking statements identified by words like “believe,” “expect,” “may,” “will,” “should,” “seek,” “anticipate,” or “could” and similar expressions.
Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated, including, without limitation, risks associated with: our planned Phase 3 clinical trials in RTIs and/or development of RTB101, either alone or in combination with a rapalog, such as everolimus or sirolimus; our ability to successfully demonstrate the efficacy and safety of our lead product candidate; the clinical results for our lead product candidate which may not support further development of additional indications; uncertainties related to the results of our clinical trials predictive of future results in connection with future trials, including our planned Phase 3 clinical trials; the timing and outcome of our planned interactions with regulatory authorities; and obtaining, maintaining and protecting our intellectual property; as well as those risks more fully discussed in the section entitled “Risk Factors” in the Annual Report on Form 10-K filed by resTORbio, Inc. with the Securities and Exchange Commission, as well as discussions of potential risks, uncertainties, and other important factors in our subsequent filings with the Securities and Exchange Commission. In addition, any forward-looking statements represent our views only as of today and should not be relied upon as representing its views as of any subsequent date. resTORbio explicitly disclaims any obligation to update any forward-looking statements.
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|(in thousands, except per share data)|
|Three Months Ended December 31,||Year Ended December 31,|
|Research and development||$||4,349||$||6,792||$||31,065||$||16,839|
|General and administrative||2,011||731||8,640||2,043|
|Total operating expenses||6,360||7,523||39,705||18,882|
|Loss from operations||(6,360||)||(7,523||)||(39,705||)||(18,882||)|
|Other income (expense), net||629||(15,531||)||2,117||(14,896||)|
|Loss before income taxes||(5,731||)||(23,054||)||(37,588||)||(33,778||)|
|Income tax expense||26||—||26||—|
|Net loss per share —basic and diluted||$||(0.21||)||$||(5.11||)||$||(1.42||)||$||(8.42||)|
|Weighted-average number of common shares used in net loss per share — basic and diluted||28,051||4,515||26,439||4,010|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|December 31,||December 31,|
|Cash, cash equivalents and marketable securities||$||108,028||$||53,349|
|Prepaid expenses and other current assets||1,506||876|
|Deferred offering costs||—||929|
|Total current assets||109,534||55,154|
|Property and equipment, net||321||39|
|Liabilities, redeemable convertible preferred stock and stockholders' equity (deficit)|
|Total current liabilities||5,716||5,502|
|Redeemable convertible preferred stock||—||81,620|
|Stockholders' equity (deficit):|
|Additional paid-in capital||175,635||1,849|
|Accumulated other comprehensive loss||(41||)||—|
|Total stockholders' equity (deficit)||104,204||(31,929||)|
|Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit)||$||109,939||$||55,193|