NEW YORK, May 13, 2020 (GLOBE NEWSWIRE) -- Protara Therapeutics, Inc. (Nasdaq: TARA), a clinical stage company developing treatments for rare and specialty diseases with significant unmet needs, today announced financial results for the first quarter ended March 31, 2020.
“We remain keenly focused on executing on our core mission to deliver effective therapies for rare and specialty diseases amidst these unprecedented times,” Jesse Shefferman, Chief Executive Officer of Protara Therapeutics. “With solid financial footing and a strong commitment to the patients we serve, we believe we are well positioned to continue to advance our promising portfolio of late-stage product candidates. We look forward to providing updates on these efforts in the coming months.”
Pipeline Overview
TARA-002
- TARA-002, Protara’s lead product candidate, is an investigational cell based therapy based on the broad immunostimulant OK-432, which is approved in Japan and Taiwan for lymphangiomas, including lymphatic malformations (LMs), which are rare, typically congenital, malformations of the lymphatic vasculature. The Company plans to initially pursue development of TARA-002 for the treatment of LMs and is also evaluating the potential of TARA-002 in oncologic indications.
IV Choline Chloride
- Protara is developing intravenous (IV) Choline Chloride, a Phase 3-ready investigational phospholipid substrate replacement therapy for patients receiving parenteral nutrition who have intestinal failure associated liver disease (IFALD). IV Choline Chloride has been granted Orphan Drug Designation by the U.S. Food and Drug Administration for this indication.
Corporate Name Change
- The Company recently announced a corporate name change to Protara Therapeutics from ArTara Therapeutics. The Company’s shares will continue trading on the Nasdaq Capital Market under the ticker symbol “TARA.”
Business Impact of COVID-19
- Protara is actively monitoring the rapidly evolving COVID-19 pandemic and maintaining operations in accordance with guidance from health authorities and government agencies. The Company has experienced limited impact on its pre-clinical, clinical and business activities but will continue to monitor the situation and take steps to mitigate any potential impact.
First Quarter 2020 Results from Operations
- The Company reported a net loss of $10.1 million for the first quarter of 2020 which included approximately $2.8 million of stock-based compensation expense, and approximately $1.0 million in other non-recurring merger related expenses.
- As of March 31, 2020, cash, cash equivalents and restricted cash were $36.1 million.
A Form 10-Q containing the full financial statements was filed this morning and is available for viewing on the Company’s website at www.Protaratx.com or www.sec.gov.
About Protara Therapeutics, Inc.
Protara is committed to identifying and advancing transformative therapies for people with rare and specialty diseases who have limited treatment options. Protara’s portfolio includes its lead program, TARA-002, an investigational cell therapy being developed for the treatment of lymphatic malformations, and intravenous (IV) Choline Chloride, an investigational phospholipid substrate replacement therapy for the treatment of intestinal failure associated liver disease (IFALD). For more information, visit www.protaratx.com.
Forward-Looking Statements
Statements contained in this press release regarding matters that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Such statements include, but are not limited to, statements regarding Protara’s business strategy, Protara’s development plans for its product candidates, Protara’s financial footing and the impact of the COVID-19 pandemic on Protara’s business and clinical programs. Risks that contribute to the uncertain nature of the forward-looking statements include: uncertainties related to Protara’s development programs, including the initiation and completion of non-clinical studies and clinical trials and the timing of required filings with the FDA and other regulatory agencies; uncertainties related to the actual impacts and length of such impacts caused by the COVID-19 pandemic; having to use cash in ways or on timing other than expected; and the impact of market volatility on cash reserves. These and other risks and uncertainties are described more fully under the caption "Risk Factors" and elsewhere in Protara's filings and reports with the United States Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made. Protara undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
Company Contact:
Blaine Davis
Protara Therapeutics
Blaine.Davis@protaratx.com
646-844-0337
| PROTARA THERAPEUTICS, INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| As of | |||||||
| March 31, 2020 | December 31, 2019 | ||||||
| (unaudited) | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 36,068,736 | $ | 564,124 | |||
| Restricted cash | 50,000 | - | |||||
| Deferred offering costs | - | 121,712 | |||||
| Prepaid expenses and other current assets | 3,562,822 | 78,057 | |||||
| Total current assets | 39,681,558 | 763,893 | |||||
| Non-current assets: | |||||||
| Property and equipment, net | 655,783 | 458,591 | |||||
| Right-of-use asset | 391,519 | - | |||||
| Goodwill | 29,367,213 | - | |||||
| Total assets | $ | 70,096,073 | $ | 1,222,484 | |||
| Liabilities and Stockholders' (Deficit) Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 2,649,602 | $ | 715,653 | |||
| Accrued expenses | 995,588 | 2,634,790 | |||||
| Short-term debt | 1,297,777 | - | |||||
| Right-of-use liability, current | 24,727 | - | |||||
| Total current liabilities | 4,967,694 | 3,350,443 | |||||
| Non-current liabilities: | |||||||
| Right-of-use liability, long-term | 386,538 | - | |||||
| Total liabilities | 5,354,232 | 3,350,443 | |||||
| Commitments and Contingencies | |||||||
| Stockholders' Equity (Deficit) | |||||||
| Preferred Stock, $0.001 par value, authorized 10,000,000 shares: | |||||||
| Series 1 Convertible Preferred Stock, 3,880 and 0 shares authorized at March 31, 2020 | |||||||
| and December 31, 2019, respectively, 3,879 and 0 shares issued and outstanding as of | |||||||
| March 31, 2020 and December 31, 2019, respectively. | 4 | - | |||||
| Common Stock, $0.001 par value, authorized 100,000,000 shares: | |||||||
| Common Stock, 5,843,203 and 2,627,533 common shares issued and outstanding as of | |||||||
| March 31, 2020 and December 31, 2019, respectively. | 5,843 | 2,628 | |||||
| Additional Paid in Capital | 87,577,911 | 10,651,073 | |||||
| Accumulated Deficit | (22,841,917 | ) | (12,781,660 | ) | |||
| Total Stockholders' Equity (Deficit) | 64,741,841 | (2,127,959 | ) | ||||
| Total Liabilities and Stockholders' Equity (Deficit) | $ | 70,096,073 | $ | 1,222,484 | |||
| PROTARA THERAPEUTICS, INC. | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| (unaudited) | |||||||
| For the Three Months Ended March 31, | |||||||
| 2020 | 2019 | ||||||
| Operating expense: | |||||||
| Research & development | $ | 3,064,793 | $ | 1,077,846 | |||
| General & administrative | 7,094,832 | 450,210 | |||||
| Total operating expenses | 10,159,625 | 1,528,056 | |||||
| Operating loss | (10,159,625 | ) | (1,528,056 | ) | |||
| Other (income) expense, net | |||||||
| Interest (income) expense, net | (99,368 | ) | - | ||||
| Total other (income) expense, net | (99,368 | ) | - | ||||
| Net Loss | $ | (10,060,257 | ) | $ | (1,528,056 | ) | |
| Weighted Average Shares Outstanding, basic and diluted | 5,560,507 | 2,627,533 | |||||
| Net loss per share, basic and diluted | $ | (1.81 | ) | $ | (0.58 | ) | |