Soleno Therapeutics Provides Corporate Update and Reports Second Quarter 2020 Financial Results
Second Quarter 2020 and Recent Corporate Highlights
- Announced top-line results from Phase III DESTINY PWS (C601) study evaluating once-daily Diazoxide Choline Controlled-Release (DCCR) tablets for patients with Prader Willi Syndrome (PWS)
- Study did not meet statistical significance for primary endpoint, but showed significant improvements in prespecified subgroup with severe hyperphagia
- Significant positive changes seen in two of three key secondary endpoints in subjects receiving DCCR as compared to placebo
- Subjects who have completed DESTINY PWS and enrolled in the open-label extension study (C602) continue to be treated for up to 36 months
- Interim analysis of subjects who have completed three months of treatment on C602 demonstrated continuing improvements in hyperphagia and other behaviors typical of PWS
- The safety profile of DCCR in C601 was generally consistent with the known profile of diazoxide and prior experience with DCCR, with no serious unexpected adverse events related to DCCR
- Soleno intends to meet with regulatory authorities later this year to determine next steps
- Closed public offering of common stock in
June 2020, with net proceeds of approximately $53.7 million
- Added to Russell 3000® Index
“We are encouraged by the positive trends observed in the top-line results from our Phase III DESTINY PWS trial evaluating DCCR and will continue to analyze the data from this trial and our ongoing open-label, long-term, safety extension study, C602,” said
Soleno’s current research and development efforts are primarily focused on advancing its lead product candidate, DCCR, for the treatment of PWS, through late-stage clinical development.
Second Quarter Ended
Research and development expenses were $6.1 million for the quarter ended June 30, 2020, compared to $3.7 million in the same period of 2019. The increase was primarily due to increased activities related to the DCCR development program.
General and administrative expense was $2.2 million for the quarter ended June 30, 2020, compared to
The change in the fair value of contingent consideration results from Soleno’s obligation to make cash payments to
Total other income was
Net loss for the quarter ended June 30, 2020, was approximately $7.4 million, or a net loss of
Six Months Ended June 30, 2020 Financial Results for Continuing Operations
Research and development expenses were $12.8 million for the six months ended June 30, 2020, compared to $6.5 million in the same period of 2019. The increase was primarily due to increased activities related to the DCCR development program.
General and administrative expense was $4.3 million for the six months ended June 30, 2020, compared to
Total Other income was
Net loss for the six months ended June 30, 2020, was approximately $13.2 million, or $0.29 per share, compared to a net loss of approximately $17.0 million, or $0.54 per share, for the six months ended June 30, 2019.
As of June 30, 2020, Soleno had cash and cash equivalents of approximately $62.5 million, as compared to $20.7 million at December 31, 2019. This cash balance includes the proceeds from the public offering that was closed in June. The net proceeds of the offering were approximately $53.7 million, after deducting the underwriting discount and other offering expenses.
About DESTINY PWS
DESTINY PWS was a randomized, double-blind, placebo-controlled study of once-daily oral administration of DCCR versus placebo in 127 randomized subjects. Patients who completed DESTINY PWS had the option to enroll into an open-label extension study (C602) and continue treatment with DCCR.
For further information about C602, the open-lab extension study (/NCT03714373), please visit: www.clinicaltrials.gov.
About Diazoxide Choline Controlled-Release (DCCR) Tablet
Diazoxide Choline Controlled-Release tablet is a novel, proprietary extended-release, crystalline salt formulation of diazoxide, which is administered once-daily. The parent molecule, diazoxide, has been used for decades in thousands of patients in a few rare diseases in neonates, infants, children and adults, but has not been approved for use in PWS. Soleno conceived of and established extensive patent protection on the therapeutic use of diazoxide and DCCR in patients with PWS. The DCCR development program is supported by data from five completed Phase I clinical studies in healthy volunteers and three completed Phase II clinical studies, and a Phase III study in PWS patients. In the PWS Phase III study, DCCR showed significant improvements in severe hyperphagia, the hallmark symptom of PWS, several other behavioral symptoms, and body composition.
Soleno is focused on the development and commercialization of novel therapeutics for the treatment of rare diseases. The company’s lead candidate, Diazoxide Choline Controlled-Release (DCCR) tablets, a once-daily oral tablet for the treatment of Prader-Willi Syndrome (PWS), is currently being evaluated in a Phase III clinical development program. For more information, please visit www.soleno.life.
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this press release are forward-looking statements, including statements regarding the Company’s expectations concerning, among other things, the impact of the COVID-19 pandemic on our operations and clinical trial. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expect," "plan," "anticipate," "could," "intend," "target," "project," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions, including the risks and uncertainties associated with market conditions, as well as risks and uncertainties inherent in Soleno’s business, including those described in the company's prior press releases and in the periodic reports it files with the
Condensed Consolidated Balance Sheets
(In thousands except share and per share data)
|Cash and cash equivalents||$||62,499||$||20,733|
|Prepaid expenses and other current assets||505||411|
|Total current assets||63,004||21,144|
|Property and equipment, net||17||22|
|Operating lease right-of-use assets||265||398|
|Finance lease right-of-use assets||20||24|
|Intangible assets, net||15,553||16,525|
|Other long-term assets||—||59|
|Liabilities and stockholders’ equity|
|Accrued clinical trial site costs||3,444||1,999|
|Operating lease liabilities||298||305|
|Other current liabilities||444||382|
|Total current liabilities||8,363||4,964|
|2017 PIPE Warrant liability||4,230||10,822|
|2018 PIPE Warrant liability||725||1,354|
|Contingent liability for
|Other long-term liabilities||—||147|
|Commitments and contingencies (Note 6)|
79,560,274 and 44,658,054 shares issued and outstanding at
|Total stockholders’ equity||56,177||14,947|
|Total liabilities and stockholders’ equity||$||78,859||$||38,172|
Condensed Consolidated Statements of Operations
(In thousands except share and per share data)
|Three Months Ended
||Six Months Ended
|Research and development||$||6,103||$||3,745||$||12,798||$||6,505|
|General and administrative||2,248||1,695||4,251||3,707|
|Change in fair value of contingent consideration||2,842||183||3,426||389|
|Total operating expenses||11,193||5,623||20,475||10,601|
|Other income (expense)|
|Change in fair value of warrants liabilities||3,808||(4,267||)||7,221||(6,186||)|
|Loss from minority interest investment||—||(165||)||—||(355||)|
|Total other income (expense)||3,809||(4,385||)||7,233||(6,437||)|
|Net loss per common share, basic and diluted||$||(0.16||)||$||(0.31||)||$||(0.29||)||$||(0.54||)|
|Weighted-average common shares outstanding used to calculate basic and
diluted net loss per common share
Source: Soleno Therapeutics