Minerva Neurosciences Reports Third Quarter 2021 Financial Results and Business Updates
Company to Host Conference Call Today at
Management Team Update
In October, the Company promoted Geoff Race, former Executive Vice President, Chief Financial Officer and Chief Business Officer of Minerva, to President. Minerva’s Senior Vice President and Chief Accounting Officer, Frederick Ahlholm, was promoted to Chief Financial Officer.
In September, Dr.
Third Quarter 2021 Financial Results
- Net Income/Loss: Net loss was
$9.2 millionfor the third quarter of 2021, or net loss per share of $0.22basic and diluted, as compared to net loss of $8.1 million, or net loss per share of $0.19basic and diluted, for the third quarter of 2020. Net loss was $28.6 millionfor the nine months ended September 30, 2021, or net loss per share of $0.67basic and diluted, as compared to net income of $9.3 million, or net income per share of $0.23basic and diluted for the nine months ended September 30, 2020.
The decreases in net income for both the three and nine month periods ended
September 2021, were primarily due to the Company’s opting out of its joint development agreement with Janssen Pharmaceuticafor seltorexant during the second quarter of 2020. As a result of opting out of the agreement, the Company immediately recognized $41.2 millionin collaborative revenue which had previously been included on the balance sheet under deferred revenue.
- R&D Expense: For the three months ended
September 30, 2021and 2020, research and development (R&D) expense was $4.5 millionand $4.6 million, respectively, a decrease of approximately $0.1 million. For the three months ended September 30, 2021and 2020, non-cash stock compensation expense included in R&D was $0.5 millionand $0.8 million, respectively.
For the nine months ended
September 30, 2021and 2020, R&D expense was $13.3 millionand $18.5 million, respectively, a decrease of approximately $5.2 million. For the nine months ended September 30, 2021and 2020, non-cash stock compensation expense included in R&D was $1.8 millionand $2.2 million, respectively.
The decrease in R&D expense for both the three and nine month periods ended
September 30, 2021versus the same periods in 2020 was primarily due to lower costs for the Phase 3 clinical trial of roluperidone, for which the three-month core study portion of the trial was completed in May 2020.
- G&A Expense: For the three months ended
September 30, 2021and 2020, general and administrative (G&A) expense was $3.0 millionand $3.5 million, respectively, a decrease of approximately $0.5 million. For the three months ended September 30, 2021and 2020, non-cash stock compensation expense included in G&A was $0.6 millionand $1.2 million, respectively.
For the nine months ended
September 30, 2021and 2020, G&A expense was $10.7 millionand $13.5 million, respectively, a decrease of approximately $2.8 million. For the nine months ended September 30, 2021and September 30, 2020, non-cash stock compensation expense included in G&A was $2.2 millionand $5.6 million, respectively.
The decrease in G&A expense for both the three and nine month periods ended
September 30, 2021was due primarily to non-cash stock compensation charges resulting from certain stock option awards approved in June 2020as well as from additional stock compensation expense incurred under a severance agreement during 2020.
- Cash Position: Cash, cash equivalents, restricted cash and marketable securities as of
September 30, 2021were approximately $65.7 million.
Conference Call Information:
The live webcast can be accessed under “Events and Presentations” in the Investors and Media section of Minerva’s website. The archived webcast will be available on the website beginning approximately two hours after the event for 90 days.
Forward-Looking Safe Harbor Statement
This press release contains forward-looking statements. Forward-looking statements are statements that are not historical facts, reflect management’s expectations as of the date of this press release, and involve certain risks and uncertainties. Forward-looking statements include, but are not limited to, statements herein with respect to the timing and scope of clinical trials and regulatory review and results and outcomes of such clinical trials and regulatory review with roluperidone (MIN-101); the clinical and therapeutic potential of this compound; the timing and outcomes of future interactions with
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|Investor inquiries:||Media Inquiries:|
|CONDENSED CONSOLIDATED BALANCE SHEET DATA|
|Cash and cash equivalents||$||65,588||$||25,357|
|Prepaid expenses and other current assets||1,751||1,983|
|Total current assets||67,439||27,440|
|Capitalized software, net||51||-|
|Other noncurrent assets||-||15|
|Operating lease right-of-use assets||-||102|
|In-process research and development||15,200||15,200|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accrued expenses and other current liabilities||1,882||2,053|
|Total current liabilities||3,083||3,160|
|Liability related to the sale of future royalties||64,595||-|
|Additional paid-in capital||341,468||337,454|
|Total stockholders' equity||28,078||52,663|
|Total Liabilities and Stockholders' Equity||$||97,559||$||57,626|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|Three Months Ended
||Nine Months Ended
|(in thousands, except per share amounts)||(in thousands, except per share amounts)|
|Research and development||4,513||4,639||13,292||18,488|
|General and administrative||3,005||3,452||10,696||13,541|
|Total operating expenses||7,518||8,091||23,988||32,029|
|(Loss) gain from operations||(7,518||)||(8,091||)||(23,988||)||9,147|
|Foreign exchange losses||(5||)||(27||)||(29||)||(41||)|
|Non-cash interest expense for the sale of future royalties||(1,686||)||-||(4,595||)||-|
|Net (loss) income||(9,205||)||(8,113||)||(28,599||)||9,265|
|Net (loss) income per share, basic||$||(0.22||)||$||(0.19||)||$||(0.67||)||$||0.23|
|Weighted average shares outstanding, basic||42,722||41,918||42,722||40,199|
|Net (loss) income per share, diluted||$||(0.22||)||$||(0.19||)||$||(0.67||)||$||0.23|
|Weighted average shares outstanding, diluted||42,722||41,918||42,722||40,478|
Source: Minerva Neurosciences, Inc