Cassava Sciences Reports Third Quarter 2021 Financial Results
Financial Highlights for Third Quarter 2021
September 30, 2021, cash and cash equivalents were $241.5 million, compared to $93.5 millionat December 31, 2020, with no debt.
- Net cash used in operations during the nine months ended
September 30, 2021was $22.2 million, net of reimbursements received from the National Institutes of Health(NIH) grant awards. An additional $22.0 millionwas used during the third quarter of 2021 for the purchase of an office complex in Austin, Texas, which will serve as the Company’s future corporate headquarters.
- Net cash use for operations for full year 2021 is expected to be approximately
$25to $30 million, up from previous guidance of $20to $25 milliondue to a prepayment made to a contract research organization for Phase 3 clinical program with simufilam. Net cash use in 2021 is expected to be driven by prepayments made for clinical trial management services for Phase 3 studies, higher headcount and personnel expenses, manufacturing costs around large-scale drug supply, and professional services expenses related to clinical programs.
- R&D expenses were
$8.0 millioncompared to $0.4 millionfor the same period in 2020. This increase was due primarily to costs related to manufacture of clinical trial supplies for and the initiation of a Phase 3 clinical program with simufilam, costs of an on-going open-label study in simufilam, as well as increased personnel expenses. These increases were partially offset by an increase in grant funding received from NIHand recorded as a reduction in research and development expenses.
- Research grant funding reimbursements of
$2.0 millionwere received from NIHand recorded as a reduction in research and development (R&D) expenses. This compared to $1.0 millionof NIHgrant receipts received for the same quarter in 2020.
- General and administrative (G&A) expenses were
$1.7 millioncompared to $1.0 millionfor the same period in 2020. This increase was due primarily to higher legal fees and insurance costs as well as depreciation and amortization for an office complex in Austin, Texas, purchased in third quarter 2021 as compared to the prior year.
Cassava Sciences’ mission is to discover and develop innovations for chronic, neurodegenerative conditions. Over the past 10 years,
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Cautionary Note Regarding Forward-Looking Statements: This news release contains forward-looking statements, including statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, relating to: our strategy and plans; expected cash use in future periods; the treatment of Alzheimer’s disease; the status of current and future clinical studies with simufilam; the timing, enrollment, duration and other details of a Phase 3 clinical program with simufilam; and potential benefits, if any, of our product candidates. These statements may be identified by words such as “may,” “anticipate,” “believe,” “could,” “expect,” “would”, “forecast,” “intend,” “plan,” “possible,” “potential,” and other words and terms of similar meaning. Drug development and commercialization involve a high degree of risk, and only a small number of research and development programs result in commercialization of a product. Our clinical results from earlier-stage clinical trials may not be indicative of full results or results from later-stage or larger scale clinical trials and do not ensure regulatory approval. You should not place undue reliance on these statements or any scientific data we present or publish.
Such statements are based largely on our current expectations and projections about future events. Such statements speak only as of the date of this news release and are subject to a number of risks, uncertainties and assumptions, including, but not limited to, those risks relating to the ability to conduct or complete clinical studies on expected timelines, to demonstrate the specificity, safety, efficacy or potential health benefits of our product candidates, the severity and duration of health care precautions given the COVID-19 pandemic, any unanticipated impacts of the pandemic on our business operations, and including those described in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended
The content of this press release is solely our responsibility and does not necessarily represent the official views of the
– Financial Tables Follow –
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|(unaudited, in thousands, except per share amounts)|
|Three months ended
||Nine months ended
|Research and development, net of grant reimbursement||$||8,041||$||399||$||14,471||$||1,534|
|General and administrative||1,712||1,038||3,953||2,634|
|Gain on sale of property and equipment||—||—||—||(346||)|
|Total operating expenses||9,753||1,437||18,424||3,822|
|Other income, net||176||—||176||—|
|Net loss per share, basic and diluted||$||(0.24||)||$||(0.06||)||$||(0.46||)||$||(0.15||)|
|Weighted-average shares used in computing net loss per share, basic and diluted||39,957||24,972||39,218||24,745|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|(unaudited, in thousands)|
|Cash and cash equivalents||$||241,524||$||93,506|
|Prepaid expenses and other current assets||10,391||488|
|Total current assets||251,915||93,994|
|Operating lease right-of-use assets||231||295|
|Property and equipment, net||20,695||11|
|Intangible assets, net||1,209||—|
|Liabilities and stockholders' equity|
|Accrued development expense||3,251||719|
|Accrued compensation and benefits||126||83|
|Operating lease liabilities, current||95||58|
|Other accrued liabilities||509||94|
|Total current liabilities||6,326||1,865|
|Operating lease liabilities, non-current||164||235|
|Other non- current liabilities||194||—|
|Common Stock and additional paid-in-capital||460,699||267,121|
|Total stockholders' equity||267,565||92,200|
|Total liabilities and stockholders' equity||$||274,249||$||94,300|
Source: Cassava Sciences, Inc.