LEXINGTON, Mass.--(BUSINESS WIRE)--
Inotek Pharmaceuticals Corporation (NASDAQ: ITEK), a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of therapies for ocular diseases, including glaucoma, today reported financial results and operational highlights for the quarter ended June 30, 2017.
“Inotek recently announced top-line results from our Phase 2 fixed-dosed combination (FDC) trial of trabodenoson, which did not show a clinically meaningful advantage of intraocular pressure (IOP) reduction at two months for the FDC compared to latanoprost alone. Based on the efficacy results shown to date for the FDC and monotherapy programs, we have decided to discontinue all preclinical and clinical development activities associated with trabodenoson in order to preserve our cash for value-creating opportunities,” said David P. Southwell, President and Chief Executive Officer of Inotek. “We continue to actively evaluate strategic alternatives to maximize shareholder value and are well-funded with $108.8 million in cash and marketable securities as of the end of the second quarter.”
Second Quarter 2017 and Recent Business Highlights:
- In July, Inotek announced top-line results of the Phase 2 FDC trial of trabodenoson and latanoprost for the treatment of glaucoma. The FDC did not meet the trial’s primary endpoint of IOP reduction from diurnal baseline for a two month treatment period when compared to latanoprost alone. Based on the FDC top-line results and the results previously reported from the Phase 3 MATrX-1 monotherapy trial, the Company will discontinue further preclinical and clinical development of trabodenoson for all indications.
- In conjunction with the FDC top-line results, Inotek also announced that it has engaged Perella Weinberg Partners as a financial advisor to assist the Company in exploring strategic alternatives.
Second Quarter 2017 Financial Results:
- Cash and cash equivalents and short-term investments as of June 30, 2017, were $108.8 million.
- At June 30, 2017, Inotek has outstanding $52.0 million aggregate principal amount of 5.75% Convertible Senior Notes due 2021.
- Research and development expenses were $3.6 million for the quarter ended June 30, 2017, compared to $6.5 million for the quarter ended June 30, 2016, and $10.7 million for the six months ended June 30, 2017, compared to $14.1 million for the six months ended June 30, 2016.
- General and administrative expenses were $2.2 million for the quarter ended June 30, 2017, compared to $2.3 million for the quarter ended June 30, 2016, and $5.1 million for the six months ended June 30, 2017, compared to $4.8 million for the six months ended June 30, 2016.
- Loss from operations was $5.9 million for the quarter ended June 30, 2017, compared to a loss of $8.8 million for the quarter ended June 30, 2016, and $15.8 million for the six months ended June 30, 2017, compared to $18.9 million for the six months ended June 30, 2016.
- Net loss was $6.6 million for the quarter ended June 30, 2017, compared to a net loss of $8.7 million for the quarter ended June 30, 2016, and $17.2 million for the six months ended June 30, 2017, compared to $18.8 million for the six months ended June 30, 2016.
- Approximately 27.0 million shares of common stock were outstanding at June 30, 2017.
About Inotek Pharmaceuticals Corporation
Inotek
Pharmaceuticals is a clinical-stage biopharmaceutical company focused on
the discovery, development and commercialization of therapies for ocular
diseases, including glaucoma. In July 2017, the Company announced
top-line results of its Phase 2 fixed-dose combination trial of trabodenoson
and latanoprost for the treatment of glaucoma. The trial did not
meet its primary efficacy endpoint and the Company has since
discontinued development of trabodenoson in order to focus on
evaluating strategic alternatives. For more information, please visit www.inotekpharma.com.
The inclusion of our website address here and elsewhere in this press
release does not include or incorporate by reference the information on
our website into this press release.
Forward-Looking Statements
Various statements in this
release concerning Inotek’s future expectations, plans and prospects,
including without limitation, Inotek’s expectations regarding its
ability to identify or consummate a strategic alternative; Inotek’s
expectations regarding reporting top-line data of its Phase 2 trial for
its FDC or other trials; Inotek’s expectations with respect to the
timing and success of its clinical studies and pre-clinical studies for trabodenoson,
its FDC program, and orphan diseases; and Inotek’s expectations
regarding its successful potential future development of trabodenoson for
any indications; may constitute forward-looking statements for the
purposes of the safe harbor provisions under The Private Securities
Litigation Reform Act of 1995 and other federal securities laws and are
subject to substantial risks, uncertainties and assumptions. You should
not place reliance on these forward-looking statements, which often
include words such as "believe," "expect," "anticipate," "intend,"
"plan," "will give," "estimate," "seek," "will," "may," "suggest" or
similar terms, variations of such terms or the negative of those terms.
Although the Company believes that the expectations reflected in the
forward-looking statements are reasonable, the Company cannot guarantee
such outcomes. Actual results may differ materially from those indicated
by these forward-looking statements as a result of various important
factors, including, without limitation, Inotek’s ability to identify and
execute on its strategic alternatives, Inotek’s ability to successfully
demonstrate the efficacy and safety of trabodenoson, its FDC
program, its pre-clinical studies for orphan diseases, the pre-clinical
and clinical results for its product candidates, which may not support
further development and marketing approval, the potential advantages of
Inotek’s product candidates, actions of regulatory agencies, which may
affect the initiation, timing and progress of pre-clinical studies and
clinical trials of its product candidates, Inotek’s ability to obtain,
maintain and protect its intellectual property, Inotek’s ability to
enforce its patents against infringers and defend its patent portfolio
against challenges from third parties, the timing, cost or other aspects
of a potential commercial launch of Inotek’s product candidates and
potential future sales of our current product candidates or any other
potential products if any are approved for marketing, competition from
others developing products for similar uses, Inotek’s ability to manage
operating expenses, Inotek’s ability to obtain additional funding to
support its business activities and establish and maintain strategic
business alliances and new business initiatives, Inotek’s dependence on
third parties for development, manufacture, marketing, sales and
distribution of product candidates, the outcome of litigation, and
unexpected expenditures, as well as those risks more fully discussed in
the section entitled “Risk Factors” in Inotek’s most recent Quarterly
Report on Form 10-Q filed with the Securities and Exchange Commission as
well as discussions of potential risks, uncertainties, and other
important factors in Inotek’s subsequent filings with the Securities and
Exchange Commission. Accordingly, you should not place undue reliance on
these forward-looking statements. All such statements speak only as of
the date made, and the Company undertakes no obligation to update or
revise publicly any forward-looking statements, whether as a result of
new information, future events or otherwise.
| Inotek Pharmaceuticals Corporation | ||||||||
| (Unaudited) | ||||||||
| (in thousands, except share and per share amounts) | ||||||||
| Consolidated Balance Sheets | ||||||||
| June 30, 2017 | December 31, 2016 | |||||||
| Cash and cash equivalents and short-term investments | $ | 108,754 | $ | 126,473 | ||||
| Other assets | 2,311 | 3,174 | ||||||
| Total assets | $ | 111,065 | $ | 129,647 | ||||
| Accounts payable, accrued expenses and other liabilities | $ | 4,293 | $ | 7,519 | ||||
| 2021 Convertible Notes, net of issuance costs | 49,242 | 48,960 | ||||||
| Stockholders’ equity | 57,530 | 73,168 | ||||||
| Total liabilities and stockholders’ equity | $ | 111,065 | $ | 129,647 | ||||
| Consolidated Statements of Operations | ||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||||
| Operating expenses: | ||||||||||||||||||
| Research and development | $ | (3,624 | ) | $ | (6,465 | ) | $ | (10,721 | ) | $ | (14,080 | ) | ||||||
| General and administrative | (2,232 | ) | (2,315 | ) | (5,101 | ) | (4,837 | ) | ||||||||||
| Loss from operations | (5,856 | ) | (8,780 | ) | (15,822 | ) | (18,917 | ) | ||||||||||
| Interest expense | (889 | ) | - | (1,765 | ) | - | ||||||||||||
| Interest income | 183 | 96 | 355 | 165 | ||||||||||||||
| Net loss | $ | (6,562 | ) | $ | (8,684 | ) | $ | (17,232 | ) | $ | (18,752 | ) | ||||||
| Net loss per share attributable to common stockholders—basic and diluted | $ | (0.24 | ) | $ | (0.33 | ) | $ | (0.64 | ) | $ | (0.71 | ) | ||||||
| Weighted-average number of shares outstanding—basic and diluted | 26,994,454 | 26,623,280 | 26,990,409 | 26,523,337 | ||||||||||||||
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