SOUTH SAN FRANCISCO, Calif., May 11, 2018 (GLOBE NEWSWIRE) -- Denali Therapeutics Inc. (NASDAQ:DNLI), a biopharmaceutical company developing a broad portfolio of therapeutic candidates for neurodegenerative diseases, today reported financial results for the first quarter ended March 31, 2018.
First Quarter 2018 Financial Results
For the three months ended March 31, 2018, Denali reported a net loss of $23.7 million, compared with a net loss for the three months ended March 31, 2017 of $21.3 million.
Collaboration Revenue was $0.6 million for the three months ended March 31, 2018, with no revenue recognized for the three months ended March 31, 2017. The increase was due to revenue recognized under the Option and Collaboration Agreement with Takeda Pharmaceutical Company Limited, which was entered into in January 2018.
Total research and development expenses were $20.8 million for the three months ended March 31, 2018 compared to $18.5 million for the three months ended March 31, 2017, including non-cash stock-based compensation of $1.7 million and $0.5 million in the first quarter of 2018 and 2017, respectively. The increase in total research and development expenses of $2.3 million was primarily attributable to an increase in personnel related expenses, including stock-based compensation, and an increase in lab consumable costs and facilities related expenses. The main drivers of these increases are an increase in research and development headcount and the increased value of Denali's common stock.
General and administrative expenses were $5.6 million for the three months ended March 31, 2018 compared to $3.3 million for the three months ended March 31, 2017, including non-cash stock-based compensation of $1.2 million and $0.2 million in the first quarter of 2018 and 2017, respectively. The increase in total general and administrative expenses of $2.3 million was primarily attributable to an increase in personnel related expenses, including stock-based compensation, and an increase in legal and professional service expenses. The main drivers of these increases are an increase in general and administrative headcount and the increased value of Denali's common stock, as well as the increased professional services required as a public company.
Cash, cash equivalents, and marketable securities were $592.8 million as of March 31, 2018, compared to $467.0 million as of December 31, 2017. The increase of $125.8 million was primarily attributable to $155.0 million in cash received related to the Option and Collaboration Agreement and Stock Purchase Agreement with Takeda.
About Denali Therapeutics
Denali is a biopharmaceutical company developing a broad portfolio of therapeutic candidates for neurodegenerative diseases. Denali pursues new treatments by rigorously assessing genetically validated targets, engineering delivery across the blood-brain barrier and guiding development with biomarker monitoring to demonstrate target engagement and select patients. Denali is based in South San Francisco. For additional information, please visit www.denalitherapeutics.com.
Denali Therapeutics Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
| Three Months Ended March 31, | |||||||
| 2018 | 2017 | ||||||
| Collaboration revenue | $ | 641 | $ | — | |||
| Operating expenses: | |||||||
| Research and development | 20,819 | 18,470 | |||||
| General and administrative | 5,570 | 3,274 | |||||
| Total operating expenses | 26,389 | 21,744 | |||||
| Loss from operations | (25,748 | ) | (21,744 | ) | |||
| Interest income, net | 2,070 | 424 | |||||
| Net loss | $ | (23,678 | ) | $ | (21,320 | ) | |
| Net loss per share, basic and diluted | $ | (0.26 | ) | $ | (2.36 | ) | |
| Weighted average number of shares outstanding, basic and diluted | 89,560,576 | 9,017,425 | |||||
Denali Therapeutics Inc.
Condensed Consolidated Balance Sheet Data
(Unaudited)
(In thousands)
| March 31, 2018 | December 31, 2017 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 44,001 | $ | 218,375 | |||
| Short-term marketable securities | 329,401 | 187,851 | |||||
| Prepaid expenses and other current assets | 4,020 | 3,381 | |||||
| Total current assets | 377,422 | 409,607 | |||||
| Long-term marketable securities | 219,406 | 60,750 | |||||
| Property and equipment, net | 14,860 | 14,923 | |||||
| Other non-current assets | 2,265 | 1,441 | |||||
| Total assets | $ | 613,953 | $ | 486,721 | |||
| Liabilities, convertible preferred stock and stockholders’ equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 1,377 | $ | 2,716 | |||
| Accrued liabilities | 4,425 | 5,364 | |||||
| Accrued compensation | 1,994 | 5,166 | |||||
| Contract Liability | 8,434 | — | |||||
| Deferred rent | 874 | 855 | |||||
| Other current liabilities | 63 | 63 | |||||
| Total current liabilities | 17,167 | 14,164 | |||||
| Contract liability, less current portion | 51,519 | — | |||||
| Deferred rent, less current portion | 6,051 | 6,294 | |||||
| Other non-current liabilities | 188 | 467 | |||||
| Total liabilities | 74,925 | 20,925 | |||||
| Total stockholders’ equity | 539,028 | 465,796 | |||||
| Total liabilities and stockholders’ equity | $ | 613,953 | $ | 486,721 | |||
Contact:
Morgan Warners
(202) 337-0808
mwarners@gpg.com