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Exhibit 99.1 |
Reneo Pharmaceuticals Reports Third Quarter 2022 Financial Results
IRVINE, Calif., November 8, 2022 (GLOBE NEWSWIRE) -- Reneo Pharmaceuticals, Inc. (Nasdaq: RPHM), a clinical-stage pharmaceutical company focused on the development and commercialization of therapies for patients with rare genetic mitochondrial diseases, today reported financial results for the quarter ended September 30, 2022.
“We continued to advance our REN001 development programs during the third quarter,” said Gregory J. Flesher, President and CEO of Reneo Pharmaceuticals. “As of today, we have achieved over 80% enrollment in the ongoing pivotal STRIDE study in primary mitochondrial myopathy (PMM) patients with mitochondrial DNA (mtDNA) defects. We remain on track to announce topline data from this study in the fourth quarter of 2023. Moreover, we are pleased that the majority of patients who completed STRIDE are electing to enroll into the long-term STRIDE AHEAD safety study. Furthermore, we announced positive results from the Phase 1b study in long-chain fatty acid oxidation disorders (LC-FAOD) patients with nuclear DNA (nDNA) defects. Finally, we are now in the process of planning both a Phase 2 study in LC-FAOD patients and a study in PMM patients with nDNA defects,” concluded Mr. Flesher.
Third Quarter and Recent Highlights
Anticipated Milestones
Financial Results for the Three Months Ended September 30, 2022
The Company reported a net loss of $13.0 million, or $0.53 per share, for the three months ended September 30, 2022, compared to a net loss of $12.7 million, or $0.52 per share, for the three months ended September 30, 2021. The Company had approximately $116 million in cash, cash equivalents and short-term investments as of September 30, 2022.
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Research and development expenses for the three months ended September 30, 2022 were $9.9 million, compared to $9.3 million for the three months ended September 30, 2021. This increase of $0.6 million was primarily due to a $1.4 million increase in clinical study and manufacturing costs primarily related to the STRIDE study and a $0.8 million increase in personnel-related costs due to the additional headcount required to support our clinical and manufacturing operations, offset by a $1.5 million decrease in non-clinical activities.
General and administrative expenses for the three months ended September 30, 2022 were $3.9 million, compared to $3.4 million for the three months ended September 30, 2021. This increase of $0.5 million was primarily attributable to increased costs to operate as a public company, including increases in outside professional services of $0.8 million offset by a decrease in stock-based compensation of $0.4 million.
Corporate Access Events
About Reneo Pharmaceuticals
Reneo is a clinical-stage pharmaceutical company focused on the development and commercialization of therapies for patients with rare genetic mitochondrial diseases, which are often associated with the inability of mitochondria to produce adenosine triphosphate (ATP). Our lead product candidate, REN001, is a potent and selective agonist of the peroxisome proliferator-activated receptor delta (PPARδ). REN001 has been shown to increase transcription of genes involved in mitochondrial function and increase fatty acid oxidation, and may increase production of new mitochondria. For additional information, please see reneopharma.com.
About REN001
REN001 is a potent and selective peroxisome proliferator-activated receptor delta (PPARδ) agonist currently in clinical development for two rare genetic mitochondrial diseases that typically present with myopathy and have high unmet medical needs: PMM and LC-FAOD. For additional information, please see clinicaltrials.gov.
About PMM
PMM are a group of disorders caused by genetic mutations within the mitochondrial DNA or nDNA that affect the activity of enzymes or other proteins in the mitochondria. In PMM these genetic alterations hamper the ability of mitochondria to generate energy from nutrient sources, resulting in energy deficits that are most pronounced in tissues with high energy demand such as muscle, brain, and heart. The symptoms of PMM include muscle weakness or exercise intolerance, movement disorder, deafness, blindness, and droopy eyelids among others. The prognosis for these disorders ranges in severity from progressive weakness to death.
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About LC-FAOD
LC-FAOD are a group of rare genetic metabolic disorders caused by mutations or deletions in the nDNA. These genetic alterations prevent the body from breaking down long-chain fatty acids during metabolism. The most severe cases of LC-FAOD are diagnosed within the first few days or weeks of life. Young patients often present with a severe energy deficit that results in lethargy, liver dysfunction, hypoglycemia, encephalopathy, and high risk for sudden death. Older patients usually present with muscle weakness, exercise intolerance, muscle aches, or rhabdomyolysis which can damage the heart and kidneys and cause permanent disability or even death.
Forward-Looking Statements
Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements regarding, among other things, the potential development, registration, and commercialization of REN001, results, conduct, progress, plans and timing of Reneo’s clinical studies, completion of enrollment of clinical trials, presentation of data from clinical trials, meetings with regulatory agencies and the regulatory approval path for REN001. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as “plans,” “will,” “believes,” “anticipates,” “expects,” “intends,” “goal,” “potential” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon Reneo’s current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation, risks and uncertainties associated with Reneo’s business in general, and the other risks described in Reneo’s filings with the Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made. Reneo undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.
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RENEO PHARMACEUTICALS, INC.
Consolidated Balance Sheets
(In thousands, except share and par value data)
|
|
September 30, |
|
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December 31, |
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(Unaudited) |
|
|
|
|
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Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
62,132 |
|
|
$ |
124,660 |
|
Short-term investments |
|
|
53,948 |
|
|
|
23,010 |
|
Prepaid expenses and other current assets |
|
|
4,918 |
|
|
|
6,064 |
|
Total current assets |
|
|
120,998 |
|
|
|
153,734 |
|
Property and equipment, net |
|
|
241 |
|
|
|
212 |
|
Right-of-use assets |
|
|
1,186 |
|
|
|
— |
|
Other non-current assets |
|
|
79 |
|
|
|
78 |
|
Total assets |
|
$ |
122,504 |
|
|
$ |
154,024 |
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
2,189 |
|
|
$ |
2,022 |
|
Accrued expenses |
|
|
6,851 |
|
|
|
4,180 |
|
Operating lease liabilities, current portion |
|
|
410 |
|
|
|
— |
|
Total current liabilities |
|
|
9,450 |
|
|
|
6,202 |
|
Operating lease liabilities, less current portion |
|
|
943 |
|
|
|
— |
|
Other long-term liabilities |
|
|
— |
|
|
|
167 |
|
Performance award |
|
|
66 |
|
|
|
444 |
|
Total liabilities |
|
|
10,459 |
|
|
|
6,813 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
|
|
|
||
Common stock, $0.0001 par value; 200,000,000 shares authorized at September 30, 2022 and |
|
|
3 |
|
|
|
3 |
|
Additional paid-in capital |
|
|
235,151 |
|
|
|
231,902 |
|
Accumulated deficit |
|
|
(123,083 |
) |
|
|
(84,728 |
) |
Accumulated other comprehensive (loss) income |
|
|
(26 |
) |
|
|
34 |
|
Total stockholders’ equity |
|
|
112,045 |
|
|
|
147,211 |
|
Total liabilities and stockholders’ equity |
|
$ |
122,504 |
|
|
$ |
154,024 |
|
4
RENEO PHARMACEUTICALS, INC.
Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except share and per share data)
(Unaudited)
|
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Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
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2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Research and development |
|
$ |
9,938 |
|
|
$ |
9,318 |
|
|
$ |
27,348 |
|
|
$ |
21,069 |
|
General and administrative |
|
|
3,902 |
|
|
|
3,434 |
|
|
|
11,938 |
|
|
|
8,125 |
|
Total operating expenses |
|
|
13,840 |
|
|
|
12,752 |
|
|
|
39,286 |
|
|
|
29,194 |
|
Loss from operations |
|
|
(13,840 |
) |
|
|
(12,752 |
) |
|
|
(39,286 |
) |
|
|
(29,194 |
) |
Other income |
|
|
833 |
|
|
|
17 |
|
|
|
931 |
|
|
|
31 |
|
Net loss |
|
|
(13,007 |
) |
|
|
(12,735 |
) |
|
|
(38,355 |
) |
|
|
(29,163 |
) |
Unrealized (loss) gain on short-term investments |
|
|
(194 |
) |
|
|
12 |
|
|
|
(60 |
) |
|
|
17 |
|
Comprehensive loss |
|
$ |
(13,201 |
) |
|
$ |
(12,723 |
) |
|
$ |
(38,415 |
) |
|
$ |
(29,146 |
) |
Net loss per share attributable to common stockholders, basic and diluted |
|
$ |
(0.53 |
) |
|
$ |
(0.52 |
) |
|
$ |
(1.57 |
) |
|
$ |
(1.82 |
) |
Weighted-average shares used in computing net loss per share, basic and diluted |
|
|
24,496,313 |
|
|
|
24,396,798 |
|
|
|
24,472,974 |
|
|
|
16,025,813 |
|
5
RENEO PHARMACEUTICALS, INC.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
|
|
Nine Months Ended |
|
|||||
|
|
2022 |
|
|
2021 |
|
||
Cash flows from operating activities |
|
|
|
|
|
|
||
Net loss |
|
$ |
(38,355 |
) |
|
$ |
(29,163 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
||
Stock-based compensation |
|
|
3,103 |
|
|
|
2,470 |
|
Depreciation and amortization |
|
|
63 |
|
|
|
33 |
|
Amortization/accretion on short-term investments |
|
|
(169 |
) |
|
|
113 |
|
Changes in the fair value of performance award |
|
|
(378 |
) |
|
|
284 |
|
Non-cash lease expense |
|
|
338 |
|
|
|
— |
|
Loss on disposal of fixed asset |
|
|
3 |
|
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Prepaid expenses and other assets |
|
|
1,146 |
|
|
|
(3,577 |
) |
Accounts payable and accrued expenses |
|
|
2,838 |
|
|
|
1,816 |
|
Operating lease liabilities |
|
|
(338 |
) |
|
|
— |
|
Other current and long-term liabilities |
|
|
— |
|
|
|
62 |
|
Net cash used in operating activities |
|
|
(31,749 |
) |
|
|
(27,962 |
) |
Cash flows from investing activities |
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
(96 |
) |
|
|
(108 |
) |
Purchase of available-for-sale short-term investments |
|
|
(67,329 |
) |
|
|
(31,421 |
) |
Proceeds from maturities of available-for-sale short-term investments |
|
|
36,500 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(30,925 |
) |
|
|
(31,529 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
||
Proceeds from issuance of Series B convertible preferred stock, net of issuance costs |
|
|
— |
|
|
|
47,239 |
|
Proceeds from initial public offering, net of offering costs |
|
|
— |
|
|
|
84,641 |
|
Proceeds from issuance of common stock in connection with equity plans |
|
|
146 |
|
|
|
407 |
|
Net cash provided by financing activities |
|
|
146 |
|
|
|
132,287 |
|
Net (decrease) increase in cash and cash equivalents |
|
|
(62,528 |
) |
|
|
72,796 |
|
Cash and cash equivalents, beginning of period |
|
|
124,660 |
|
|
|
53,613 |
|
Cash and cash equivalents, end of period |
|
$ |
62,132 |
|
|
$ |
126,409 |
|
Noncash operating activities: |
|
|
|
|
|
|
||
Right-of-use assets obtained in exchange for lease obligations |
|
$ |
1,524 |
|
|
$ |
— |
|
Noncash investing and financing activities: |
|
|
|
|
|
|
||
Property and equipment in accounts payable |
|
$ |
— |
|
|
$ |
56 |
|
Vesting of unvested exercised options |
|
$ |
— |
|
|
$ |
19 |
|
Contacts:
Joyce Allaire
Managing Director
LifeSci Advisors, LLC
jallaire@lifesciadvisors.com
Danielle Spangler
Investor Relations
Reneo Pharmaceuticals, Inc.
dspangler@reneopharma.com
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