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BioXcel Therapeutics Reports Third Quarter 2019 Financial Results and Provides Business Update

November 14, 2019 GMT

NEW HAVEN, Conn.--(BUSINESS WIRE)--Nov 14, 2019--

BioXcel Therapeutics, Inc. (“BTI” or “Company”) (Nasdaq: BTAI), a clinical-stage biopharmaceutical company utilizing artificial intelligence to identify improved therapies in neuroscience and immuno-oncology, today announced its quarterly results for the third quarter ended September 30, 2019 and provided an update on key strategic and operational initiatives.

“We are pleased with the progress made on both of our clinical development programs during the quarter,” stated Vimal Mehta, Chief Executive Officer of BTAI. “BXCL501, our candidate for the acute treatment of agitation in patients with schizophrenia and bipolar disease and delivered in a sublingual thin film, is highly differentiated from the current standards of care, which can produce unwanted side effects and be difficult for caregivers to administer. BXCL501 has the potential to significantly improve care for patients, while providing healthcare providers with an important new option for treating their patients. We’re looking forward to reporting pivotal data during the first half of 2020.”

Dr. Mehta added, “We are also pleased with the progress of our Phase 1b/2 double combination study of BXCL701 and Keytruda for tNEPC and anticipate additional safety data readouts from both cohorts in the fourth quarter of this year, followed by expected initial efficacy data in the first half of 2020.”

Third Quarter 2019 and Recent Highlights

BXCL501-Neuroscience Program-

BXCL501 is an investigational sublingual thin film of dexmedetomidine, a selective alpha-2A adrenergic receptor agonist, designed for the treatment of acute agitation. The Company believes BXCL501 may directly target a causal agitation mechanism.

BXCL701-Immuno-Oncology Program-

BXCL701 is an orally-delivered small molecule, innate immunity activator designed to inhibit dipeptidyl peptidase (DPP) 8/9 and block immune evasion by targeting Fibroblast Activation Protein (FAP). It has shown single agent activity in melanoma and safety has been evaluated in more than 700 healthy subjects and cancer patients.

Strengthened Balance Sheet

Third Quarter 2019 Financial Results

BTI reported a net loss of $9.0 million for the third quarter of 2019, compared to a net loss of $4.9 million for the same period in 2018. The third quarter 2019 results include approximately $0.8 million in non-cash stock based compensation.

Research and development expenses were $7.1 million for the third quarter of 2019, as compared to $3.8 million for the same period in 2018. The increase was primarily due to an expansion of research and development activities, including increased personnel costs, clinical trials expenses, and professional fees, associated with BTI’s two lead product candidates.

General and administrative expenses were $2.0 million for the third quarter of 2019, as compared to $1.3 million for the same period in 2018. The increase was primarily due to additional payroll and payroll-related expenses, professional fees and costs associated with operating as a public company.

As of September 30, 2019, cash and cash equivalents totaled approximately $40.3 million which included proceeds from the Company’s follow-on-financing completed on September 30, 2019. BTI believes it is well positioned to execute on key milestones.

Conference Call:

BTI will host a conference call and webcast today at 8:30 a.m. ET. To access the call, please dial 877-407-2985 (domestic) and 201-378-4915 (international). A live webcast of the call will be available on the Investors sections of the BTI website at www.bioxceltherapeutics.com. The replay will be available through November 28, 2019.

About BioXcel Therapeutics, Inc.:

BioXcel Therapeutics, Inc. is a clinical stage biopharmaceutical company focused on drug development that utilizes artificial intelligence to identify improved therapies in neuroscience and immuno-oncology. BTI’s drug re-innovation approach leverages existing approved drugs and/or clinically evaluated product candidates together with big data and proprietary machine learning algorithms to identify new therapeutic indices. BTI’s two most advanced clinical development programs are BXCL501, an investigational sublingual thin film formulation in development for acute treatment of agitation resulting from neuropsychiatric disorders, and BXCL701, an investigational orally administered systemic innate immunity activator in development for treatment of a rare form of prostate cancer and for treatment of pancreatic cancer in combination with other immuno-oncology agents. For more information, please visit www.bioxceltherapeutics.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include but are not limited to the timing and data from clinical development initiatives and trials for BXCL501 and BXCL701, the Company’s wearable digital device initiative and the Company’s future growth and position to execute on key milestones. When used herein, words including “anticipate,” “being,” “will,” “plan,” “may,” “continue,” and similar expressions are intended to identify forward-looking statements. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking. All forward-looking statements are based upon BTI’s current expectations and various assumptions. BTI believes there is a reasonable basis for its expectations and beliefs, but they are inherently uncertain.

BTI may not realize its expectations, and its beliefs may not prove correct. Actual results could differ materially from those described or implied by such forward-looking statements as a result of various important factors, including, without limitation, its limited operating history; its incurrence of significant losses; its need for substantial additional funding and ability to raise capital when needed; its limited experience in drug discovery and drug development; its dependence on the success and commercialization of BXCL501 and BXCL701 and other product candidates; the failure of preliminary data from its clinical studies to predict final study results; failure of its early clinical studies or preclinical studies to predict future clinical studies; its ability to receive regulatory approval for its product candidates; its ability to enroll patients in its clinical trials; its approach to the discovery and development of product candidates based on EvolverAI is novel and unproven; its exposure to patent infringement lawsuits; its ability to comply with the extensive regulations applicable to it; its ability to commercialize its product candidates; and the other important factors discussed under the caption “Risk Factors” in its Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019 as such factors may be updated from time to time in its other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov.

These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While BTI may elect to update such forward-looking statements at some point in the future, except as required by law, it disclaims any obligation to do so, even if subsequent events cause our views to change. These forward-looking statements should not be relied upon as representing BTI’s views as of any date subsequent to the date of this press release.

 

BIOXCEL THERAPEUTICS, INC.

BALANCE SHEETS

(amounts in thousands, except share and per share data)

 

 

September 30,

 

December 31,

 

 

2019

 

2018

 

 

(unaudited)

 

 

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

40,252

 

$

42,565

Prepaid expenses and other current assets

 

 

1,109

 

 

491

Due from Parent

 

 

 

 

115

Total current assets

 

 

41,361

 

 

43,171

Property and equipment, net

 

 

1,086

 

 

327

Operating lease right-of-use asset

 

 

1,199

 

 

Other assets

 

 

51

 

 

51

Total assets

 

$

43,697

 

$

43,549

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

4,238

 

$

1,604

Accrued expenses

 

 

3,387

 

 

3,056

Due to Parent

 

 

59

 

 

Other current liabilities

 

 

522

 

 

Total current liabilities

 

 

8,206

 

 

4,660

 

 

 

 

 

 

 

Operating lease liability

 

 

1,071

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

9,277

 

 

4,660

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued or outstanding

 

 

 

 

Common stock, $0.001 par value, 50,000,000 shares authorized; 18,035,025 and
15,663,221 shares issued and outstanding as of September 30, 2019 and
December 31, 2018, respectively

 

 

18

 

 

16

Additional paid-in-capital

 

 

82,815

 

 

62,593

Accumulated deficit

 

 

(48,413)

 

 

(23,720)

Total stockholders' equity

 

 

34,420

 

 

38,889

Total liabilities and stockholders' equity

 

$

43,697

 

$

43,549

 

BIOXCEL THERAPEUTICS, INC.

STATEMENTS OF OPERATIONS

(amounts in thousands, except share and per share data)

(unaudited)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2019

 

2018

 

2019

 

2018

Revenues

 

$

 

$

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

7,122

 

 

3,821

 

 

19,302

 

 

8,540

General and administrative

 

 

2,012

 

 

1,298

 

 

5,886

 

 

4,109

Total operating expenses

 

 

9,134

 

 

5,119

 

 

25,188

 

 

12,649

Loss from operations

 

 

(9,134)

 

 

(5,119)

 

 

(25,188)

 

 

(12,649)

Other income

 

 

 

 

 

 

 

 

 

 

 

 

Dividend and interest income, net

 

 

116

 

 

232

 

 

495

 

 

454

Net loss

 

$

(9,018)

 

$

(4,887)

 

$

(24,693)

 

$

(12,195)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share attributable to common stockholders basic and diluted

 

$

(0.57)

 

$

(0.31)

 

$

(1.57)

 

$

(0.86)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic and diluted

 

 

15,752,196

 

 

15,645,545

 

 

15,695,263

 

 

14,228,192

 

BIOXCEL THERAPEUTICS, INC.

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY / DEFICIT

(amounts in thousands, except shares)

(unaudited)

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Common Stock

 

Paid in

 

Accumulated

 

 

 

 

 

Shares

 

Amount

 

Capital

 

Deficit

 

Total

Balance as of December 31, 2017

 

9,907,548

 

$

10

 

$

3,458

 

$

(4,450)

 

$

(982)

Issuance of common shares

 

283,452

 

 

1

 

 

1,949

 

 

 

 

1,950

Issuance of common shares, upon completion
of Initial Public Offering, net of issuance costs
of $5,898

 

5,454,545

 

 

5

 

 

54,097

 

 

 

 

54,102

Stock-based compensation

 

 

 

 

 

1,319

 

 

 

 

1,319

Net loss

 

 

 

 

 

 

 

(4,282)

 

 

(4,282)

Balance as of March 31, 2018

 

15,645,545

 

$

16

 

$

60,823

 

$

(8,732)

 

$

52,107

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

740

 

 

 

 

740

Net loss

 

 

 

 

 

 

 

(3,026)

 

 

(3,026)

Balance as of June 30, 2018

 

15,645,545

 

$

16

 

$

61,563

 

$

(11,758)

 

$

49,821

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

889

 

 

 

 

889

Net loss

 

 

 

 

 

 

 

(4,887)

 

 

(4,887)

Balance as of September 30, 2018

 

15,645,545

 

$

16

 

$

62,452

 

$

(16,645)

 

$

45,823

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2018

 

15,663,221

 

$

16

 

$

62,593

 

$

(23,720)

 

$

38,889

Stock-based compensation

 

 

 

 

 

682

 

 

 

 

682

Exercise of stock options

 

2,581

 

 

 

 

1

 

 

 

 

1

Net loss

 

 

 

 

 

 

 

(7,204)

 

 

(7,204)

Balance as of March 31, 2019

 

15,665,802

 

$

16

 

$

63,276

 

$

(30,924)

 

$

32,368

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common shares, net of issuance costs of $11

 

21,744

 

 

 

 

230

 

 

 

 

230

Stock-based compensation

 

 

 

 

 

1,030

 

 

 

 

1,030

Net loss

 

 

 

 

 

 

 

(8,471)

 

 

(8,471)

Balance as of June 30, 2019

 

15,687,546

 

$

16

 

$

64,536

 

$

(39,395)

 

$

25,157

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common shares, net of issuance costs of $1,991

 

2,347,479

 

 

2

 

 

17,503

 

 

 

 

17,505

Stock-based compensation

 

 

 

 

 

776

 

 

 

 

776

Net loss

 

 

 

 

 

 

 

(9,018)

 

 

(9,018)

Balance as of September 30, 2019

 

18,035,025

 

$

18

 

$

82,815

 

$

(48,413)

 

$

34,420

 

BIOXCEL THERAPEUTICS, INC.

STATEMENTS OF CASH FLOWS

(amounts in thousands)

(unaudited)

 

 

Nine months ended September 30,

 

 

2019

 

2018

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net loss

 

$

(24,693)

 

$

(12,195)

Reconciliation of net loss to net cash used in operating activities

 

 

 

 

 

 

Depreciation and amortization

 

 

218

 

 

9

Stock-based compensation expense

 

 

2,488

 

 

2,949

Changes in operating assets and liabilities:

 

 

 

 

 

 

Prepaid expenses and other assets

 

 

(618)

 

 

(515)

Accounts payable, accrued expenses and other

 

 

3,249

 

 

584

Net cash used in operating activities

 

 

(19,356)

 

 

(9,168)

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Property and equipment, net

 

 

(868)

 

 

(182)

Net cash used in investing activities

 

 

(868)

 

 

(182)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Proceeds from issuance of common stock, net

 

 

17,736

 

 

56,512

Exercise of options

 

 

1

 

 

Due to/from Parent

 

 

174

 

 

(556)

Note Payable — Parent

 

 

 

 

(371)

Net cash provided by financing activities

 

 

17,911

 

 

55,585

 

 

 

 

 

 

 

Net (decrease) increase in cash and cash equivalents

 

 

(2,313)

 

 

46,235

 

 

 

 

 

 

 

Cash and cash equivalents, beginning of the period

 

 

42,565

 

 

887

Cash and cash equivalents, end of the period

 

$

40,252

 

$

47,122

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

 

Interest paid

 

$

47

 

$

1

 

 

 

 

 

 

 

Supplemental disclosure of non-cash Financing Activity:

 

 

 

 

 

 

Deferred issuance costs, unpaid as of December 31, 2017

 

$

 

$

391

Deferred issuance costs reclassified to additional paid-in-capital upon completion
of initial public offering.

 

$

 

$

461

Reclassification of net Parent Investment in the Company to accumulated deficit.

 

$

 

$

440

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20191114005140/en/

CONTACT: BioXcel Therapeutics, Inc.

www.bioxceltherapeutics.comInvestor Relations:

John Graziano

jgraziano@troutgroup.com

1.646.378.2942Media:

Julia Deutsch

jdeutsch@troutgroup.com

1.646.378.2967

KEYWORD: UNITED STATES NORTH AMERICA CONNECTICUT

INDUSTRY KEYWORD: BIOTECHNOLOGY HEALTH PHARMACEUTICAL CLINICAL TRIALS ONCOLOGY

SOURCE: BioXcel Therapeutics, Inc.

Copyright Business Wire 2019.

PUB: 11/14/2019 07:00 AM/DISC: 11/14/2019 07:01 AM

http://www.businesswire.com/news/home/20191114005140/en