ARCA biopharma Announces Second Quarter 2023 Financial Results
21 Juillet 2023 - 10:25PM
ARCA biopharma, Inc. (Nasdaq: ABIO), a biopharmaceutical company
applying a precision medicine approach to developing genetically
targeted therapies for cardiovascular diseases, today reported
second quarter 2023 financial results and provided a corporate
update.
In April 2022, the Board of Directors
established a Special Committee and, in May 2022, retained
Ladenburg Thalmann & Co. Inc. (“Ladenburg”) to evaluate
strategic options, including transactions involving a merger, sale
of all or part of the Company’s assets, or other alternatives with
the goal of maximizing stockholder value. The Company and Ladenburg
have reviewed several potential strategic transactions and continue
to evaluate further potential development of the Company’s existing
assets, in order to maximize stockholder value. The Company does
not have a defined timeline for the strategic review process and
the review may not result in any specific action or
transaction.
Second Quarter 2023 Summary Financial
Results
Cash and cash equivalents were
$40.2 million as of June 30, 2023, compared to $42.4 million as of
December 31, 2022. ARCA believes that its current cash and cash
equivalents, consisting primarily of money market funds, will be
sufficient to fund its operations through the end of 2024.
General and administrative (G&A)
expenses were $1.7 million for the quarter ended June 30,
2023, is consisted with $1.7 million for the corresponding period
in 2022. G&A expenses in 2023 are expected to be consistent
with those in 2022 as the Company maintains administrative
activities to support our ongoing operations.
Research and development (R&D)
expenses were $0.3 million for the quarter ended June 30,
2023, compared to $1.5 million for the corresponding period in
2022, a $1.2 million decrease. The majority of clinical and
manufacturing close out costs related to our rNAPc2 (AB201)
international Phase 2b clinical trial were incurred in the first
half of 2022, with no comparable costs for the corresponding
periods of 2023. R&D personnel costs decreased approximately
$0.5 million for the quarter ended June 30, 2023, as compared to
the corresponding period in 2022, due to decreased headcount. In
July 2022, we implemented a strategic reduction of our workforce by
approximately 67%, or 12 employees. Personnel reductions were
primarily focused in research and development and general and
administrative functions. The restructuring was a result of our
decision to manage our operating costs and expenses. During the
year ended December 31, 2022, we recorded total restructuring
charges of approximately $755,000, of which $470,000 and $285,000
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.
R&D expenses in 2023 are expected to be lower than 2022.
Total operating expenses for
the quarter ended June 30, 2023 were $2.0 million compared to $3.2
million for the second quarter 2022.
Net loss for the quarter ended
June 30, 2023 was $1.5 million, or $0.10 per basic and diluted
share, compared to $3.1 million, or $0.22 per basic and diluted
share in the second quarter of 2022.
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, and 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’s ability to
raise sufficient capital on acceptable terms, or at all; the
Company’s ability to continue development of Gencaro or rNAPc2 or
to otherwise continue operations in the future; the Company’s
ability to complete a strategic transaction; 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; 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, in ARCA’s
Annual Report on Form 10-K for the year ended December 31, 2022,
and subsequent filings. ARCA disclaims any intent or obligation to
update these forward-looking statements.
All forward-looking statements in this press
release are current only as of the date hereof and, except as
required by applicable law, ARCA undertakes no obligation to revise
or update any forward-looking statement, or to make any other
forward-looking statements, whether as a result of new information,
future events or otherwise. All forward-looking statements are
qualified in their entirety by this cautionary statement.
Investor & Media
Contact:Jeff Dekker720.940.2122ir@arcabio.com
(Tables follow)
ARCA BIOPHARMA, INC.BALANCE SHEET
DATA (in thousands)
(unaudited) |
|
June 30, 2023 |
December 31, 2022 |
Cash and cash equivalents |
$40,156 |
$42,445 |
Working capital |
$39,153 |
$41,567 |
Total assets |
$41,083 |
$43,085 |
Total stockholders’
equity |
$39,238 |
$41,673 |
ARCA BIOPHARMA, INC.STATEMENTS OF
OPERATIONS(unaudited) |
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
June 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
(in thousands, except share and per share
amounts) |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
$ |
1,719 |
|
|
$ |
1,734 |
|
|
$ |
3,125 |
|
|
$ |
2,832 |
|
Research and development |
|
254 |
|
|
|
1,485 |
|
|
|
644 |
|
|
|
3,664 |
|
Total costs and expenses |
|
1,973 |
|
|
|
3,219 |
|
|
|
3,769 |
|
|
|
6,496 |
|
Loss from operations |
|
(1,973 |
) |
|
|
(3,219 |
) |
|
|
(3,769 |
) |
|
|
(6,496 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income |
|
493 |
|
|
|
72 |
|
|
|
943 |
|
|
|
79 |
|
Other loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
Net loss |
$ |
(1,480 |
) |
|
$ |
(3,147 |
) |
|
$ |
(2,826 |
) |
|
$ |
(6,419 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.10 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.45 |
) |
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
|
14,410,143 |
|
|
|
14,410,143 |
|
|
|
14,410,143 |
|
|
|
14,410,143 |
|
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