Denali Therapeutics Reports First Quarter 2019 Financial Results
09 May 2019 - 6:30AM
Denali Therapeutics Inc. (NASDAQ: DNLI), a biopharmaceutical
company developing a broad portfolio of product candidates for
neurodegenerative diseases, today reported financial results for
the first quarter ended March 31, 2019.
First Quarter 2019 Financial Results
For the three months ended March 31, 2019, Denali reported a net
loss of $39.0 million compared with a net loss of
$23.7 million for the three months ended March 31, 2018.
Collaboration revenue was $4.2 million for the three months
ended March 31, 2019, compared with collaboration revenue of
$0.6 million for the three months ended March 31,
2018. The increase was due to $3.5 million of revenue
recognized under the Sanofi Collaboration Agreement in the three
months ended March 31, 2019.
Total research and development expenses were $37.4 million for
the three months ended March 31, 2019, including non-cash
stock-based compensation of $4.0 million, compared to $20.8 million
for the three months ended March 31, 2018, including non-cash
stock-based compensation of $1.7 million. The increase in total
research and development expenses of $16.6 million was primarily
attributable to increases in personnel-related expenses, including
non-cash stock-based compensation, driven primarily by higher
headcount and new option grants. Further, there were increases in
external research and development expenses, reflecting both the
progress of Denali's most advanced programs and increased
investment in growing and developing its pipeline, and
facilities-related expenses primarily due to rent expense.
General and administrative expenses were $9.3 million for the
three months ended March 31, 2019, including non-cash stock-based
compensation of $2.9 million, compared to $5.6 million for the
three months ended March 31, 2018, including non-cash stock-based
compensation of $1.2 million. The increase in total general and
administrative expenses of $3.7 million was primarily attributable
to an increase in personnel-related expenses, including non-cash
stock-based compensation, driven primarily by higher headcount and
new option grants. Further, there were increases in legal and
professional services expenses required to support Denali's ongoing
operations as a public company, and facilities-related expenses
primarily due to rent expense.
Cash, cash equivalents, and marketable securities were $583.0
million as of March 31, 2019.
About Denali Therapeutics
Denali is a biopharmaceutical company developing a broad
portfolio of product candidates for neurodegenerative diseases.
Denali pursues new treatments by rigorously assessing genetically
validated targets, engineering delivery across the blood-brain
barrier and guiding development with biomarker monitoring to
demonstrate target engagement and select patients. Denali is based
in South San Francisco. For additional information, please visit
www.denalitherapeutics.com.
Denali Therapeutics Inc.Condensed
Consolidated Statements of
Operations(Unaudited)(In thousands,
except share and per share amounts)
|
Three Months Ended March 31, |
|
2019 |
|
|
2018 |
|
Collaboration revenue |
$ |
4,205 |
|
|
$ |
641 |
|
Operating expenses: |
|
|
|
Research and development |
37,403 |
|
|
20,819 |
|
General and administrative |
9,310 |
|
|
5,570 |
|
Total operating expenses |
46,713 |
|
|
26,389 |
|
Loss from operations |
(42,508 |
) |
|
(25,748 |
) |
Interest and other income,
net |
3,516 |
|
|
2,070 |
|
Net loss |
$ |
(38,992 |
) |
|
$ |
(23,678 |
) |
Net loss per share, basic and
diluted |
$ |
(0.41 |
) |
|
$ |
(0.26 |
) |
Weighted average number of
shares outstanding, basic and diluted |
94,984,503 |
|
|
89,560,576 |
|
|
|
|
|
|
|
Denali Therapeutics Inc.Condensed
Consolidated Balance Sheets(Unaudited)(In
thousands)
|
March 31, 2019 |
|
|
December 31, 2018 |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
39,661 |
|
|
$ |
77,123 |
Short-term marketable securities |
445,820 |
|
|
387,174 |
Prepaid expenses and other current assets |
14,052 |
|
|
16,539 |
Total current assets |
499,533 |
|
|
480,836 |
Long-term marketable
securities |
97,554 |
|
|
147,881 |
Property and equipment,
net |
36,955 |
|
|
25,162 |
Operating lease right-of-use
asset |
34,407 |
|
|
— |
Other non-current assets |
8,147 |
|
|
8,105 |
Total assets |
$ |
676,596 |
|
|
$ |
661,984 |
Liabilities and
stockholders' equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
$ |
3,662 |
|
|
$ |
1,891 |
Accrued liabilities |
12,114 |
|
|
8,520 |
Accrued compensation |
3,213 |
|
|
9,952 |
Contract liabilities |
23,148 |
|
|
11,427 |
Other current liabilities |
1,107 |
|
|
996 |
Total current liabilities |
43,244 |
|
|
32,786 |
Contract liabilities, less
current portion |
44,852 |
|
|
57,350 |
Operating lease liability,
less current portion |
71,412 |
|
|
— |
Deferred rent, less current
portion |
— |
|
|
24,532 |
Other non-current
liabilities |
440 |
|
|
471 |
Total liabilities |
159,948 |
|
|
115,139 |
Total stockholders'
equity |
516,648 |
|
|
546,845 |
Total liabilities and
stockholders’ equity |
$ |
676,596 |
|
|
$ |
661,984 |
|
|
|
|
|
|
|
Denali Media Relations Contacts:
Morgan Warners (202)
337-0808mwarners@gpg.com
Lizzie Hyland(646)
495-2706lhyland@gpg.com
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