ARCA biopharma Announces Third Quarter 2022 Financial Results
29 October 2022 - 07:15AM
ARCA biopharma, Inc. (Nasdaq: ABIO), a biopharmaceutical company
applying a precision medicine approach to developing genetically
targeted therapies for cardiovascular diseases, today reported
third quarter 2022 financial results and provided a corporate
update.
In May 2022, the Company retained Ladenburg
Thalmann & Co. Inc. to act as its financial advisor to explore
and evaluate strategic options for maximizing stockholder value.
Potential strategic alternatives that may be explored or evaluated
as part of this process include the potential for an acquisition,
merger, business combination or other strategic transaction
involving the Company. The Board has not set a timetable for the
conclusion of this review, nor has it made any decisions related to
any further actions or potential strategic options at this time.
There can be no assurance, however, that this process will result
in any such transaction.
Third Quarter 2022 Summary Financial
Results
Cash and cash equivalents were
$43.9 million as of September 30, 2022, compared to
$53.4 million as of December 31, 2021. ARCA believes that its
current cash and cash equivalents, will be sufficient to fund its
operations at the current levels through at least the end of 2023.
The Company’s review of its strategic options may impact this
projection.
Research and development (R&D)
expenses were $1.0 million for the quarter ended
September 30, 2022, compared to $3.4 million for the
corresponding period in 2021. In the third quarter of 2022, ARCA
implemented a strategic reduction of the workforce and recorded
total restructuring charges of approximately $0.8 million, of which
$0.5 million and $0.3 million were recognized in research and
development and general and administrative expenses, respectively,
in connection with the restructuring, all in the form of one-time
termination benefits. The $2.4 million decrease in R&D
expenses in the third quarter was primarily related to the
completion of enrollment in the rNAPc2 Phase 2b clinical trial in
the fourth quarter of 2021, partially offset by the restructuring
charges discussed above. R&D expenses in 2022 are expected to
be lower than 2021.
General and administrative (G&A)
expenses were $1.5 million for the quarter ended
September 30, 2022, compared to $1.3 million for the
corresponding period in 2021. The $0.2 million increase in
G&A expenses was primarily a result of the restructuring
charges discussed above. G&A expenses in 2022 are expected to
be slightly higher than 2021 as we maintain administrative
activities to support our ongoing operations along with the
one-time termination benefits recorded in the third quarter
2022.
Total operating expenses for
the quarter ended September 30, 2022 were $2.6 million compared to
$4.7 million for the third quarter of 2021.
Net loss for the quarter ended
September 30, 2022 was $2.3 million, or $0.16 per basic and diluted
share, compared to $4.7 million, or $0.33 per basic and diluted
share in the third quarter of 2021.
About ARCA biopharmaARCA
biopharma is dedicated to developing genetically and other targeted
therapies for cardiovascular diseases through a precision medicine
approach to drug development. At present, ARCA is evaluating
options for development of its assets, including partnering and
other strategic options. For more information, please visit
www.arcabio.com or follow the Company on LinkedIn.
Safe Harbor StatementThis press
release contains "forward-looking statements" for purposes of the
safe harbor provided by the Private Securities Litigation Reform
Act of 1995. These statements include, but are not limited to,
statements regarding potential future development plans for Gencaro
and rNAPc2, if any, the Company’s review of strategic options. Such
statements are based on management's current expectations and
involve risks and uncertainties. Actual results and performance
could differ materially from those projected in the forward-looking
statements as a result of many factors, including, without
limitation, the risks and uncertainties associated with: ARCA’s
financial resources and whether they will be sufficient to meet its
business objectives and operational requirements; ARCA may not be
able to raise sufficient capital on acceptable terms, or at all, to
continue development of rNAPc2 or Gencaro or to otherwise continue
operations in the future; results of earlier clinical trials may
not be confirmed in future clinical trials; the protection and
market exclusivity provided by ARCA’s intellectual property; risks
related to the drug discovery and the regulatory approval
processes; the Company’s ability to complete a strategic
transaction, and, the impact of competitive products and
technological changes. These and other factors are identified and
described in more detail in ARCA’s filings with the Securities and
Exchange Commission, including without limitation ARCA’s annual
report on Form 10-K for the year ended December 31, 2021,
and subsequent filings. ARCA disclaims any intent or obligation to
update these forward-looking statements.
Investor & Media
Contact:Jeff Dekker720.940.2122ir@arcabio.com
(Tables follow)ARCA BIOPHARMA,
INC.
BALANCE SHEET DATA (in
thousands) (unaudited)
|
September 30, 2022 |
December 31, 2021 |
Cash and cash equivalents |
$ |
43,939 |
$ |
53,359 |
Working capital |
$ |
42,613 |
$ |
50,923 |
Total assets |
$ |
44,965 |
$ |
54,924 |
Total stockholders’ equity |
$ |
42,727 |
$ |
51,043 |
ARCA BIOPHARMA, INC.
STATEMENTS OF OPERATIONS
(unaudited)
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
September 30, |
|
|
September 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
(in thousands, except share and per share
amounts) |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
$ |
1,024 |
|
|
$ |
3,438 |
|
|
$ |
4,688 |
|
|
$ |
9,891 |
|
General and administrative |
|
1,528 |
|
|
|
1,278 |
|
|
|
4,360 |
|
|
|
3,764 |
|
Total costs and expenses |
|
2,552 |
|
|
|
4,716 |
|
|
|
9,048 |
|
|
|
13,655 |
|
Loss from operations |
|
(2,552 |
) |
|
|
(4,716 |
) |
|
|
(9,048 |
) |
|
|
(13,655 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income |
|
222 |
|
|
|
4 |
|
|
|
301 |
|
|
|
9 |
|
Other loss |
|
(3 |
) |
|
|
— |
|
|
|
(5 |
) |
|
|
— |
|
Net loss |
$ |
(2,333 |
) |
|
$ |
(4,712 |
) |
|
$ |
(8,752 |
) |
|
$ |
(13,646 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.16 |
) |
|
$ |
(0.33 |
) |
|
$ |
(0.61 |
) |
|
$ |
(0.99 |
) |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
14,410,143 |
|
|
|
14,410,143 |
|
|
|
14,410,143 |
|
|
|
13,733,259 |
|
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