EX-99.1
Published on November 8, 2018
Trevena Reports Third Quarter 2018 Financial Results and Announces Workforce Restructuring
$70.0 Million of Cash, Cash Equivalents and Marketable Securities as of September 30, 2018
Company to host conference call and webcast at 8:00 am EST
CHESTERBROOK, PA, November 8, 2018 Trevena, Inc. (NASDAQ: TRVN), a biopharmaceutical company focused on the development and commercialization of new and innovative treatment options for patients in pain, today reported third quarter 2018 financial results and announced a workforce restructuring to preserve capital while the Company continues development of oliceridine. As part of this plan, the Company is reducing its workforce by approximately one-third and is undertaking additional cost saving initiatives that in total are expected to save more than $3.5 million a year. The Company also expects to incur a cash charge in the fourth quarter of 2018 of approximately $1.3 million related to the restructuring.
Following receipt of the Complete Response Letter for oliceridine, we must act to reduce operating costs and conserve our capital resources, said Carrie L. Bourdow, President and Chief Executive Officer. Todays action will allow us to extend our cash runway while retaining the capabilities needed to reach our goal of bringing oliceridine to clinicians and hospital patients. I would like to thank our dedicated employees affected by this plan for their commitment to patients and their many contributions to Trevena.
Financial results
For the third quarter of 2018, Trevena reported a net loss attributable to common stockholders of $4.5 million, or $0.06 per share, compared with a net loss attributable to common stockholders for the third quarter of 2017 of $16.0 million, or $0.27 per share. Research and development expenses were $3.4 million in the third quarter of 2018 compared to $10.2 million for the same period in 2017; general and administrative expenses were $3.9 million, compared to $5.2 million for the third quarter of 2017.
Cash, cash equivalents, and marketable securities were $70.0 million as of September 30, 2018. The Company expects this amount, together with interest thereon, to be sufficient to fund operating expenses and capital expenditure requirements into the second quarter of 2020.
For additional details, please see the Companys Form 10-Q that will be filed with the SEC today.
Conference Call and Webcast
Date: November 8, 2018
Time: 8:00 a.m. EST
Telephone Access: (855) 465-0180
International: (484) 756-4313
Webcast: http://investors.trevena.com/index.cfm
Conference ID: 5985046
About Trevena
Trevena, Inc. is a biopharmaceutical company focused on the development and commercialization of new and innovative treatment options for patients in pain. The Company has discovered three novel and differentiated drug candidates using its proprietary platform, including intravenous (IV) oliceridine, for
the management of moderate to severe acute pain in hospitals, TRV250 for the treatment of acute migraine, and TRV734 for pain and/or management of opioid dependence. In its preclinical programs, Trevena is evaluating a set of novel S1P modulators that may offer a new, non-narcotic approach to managing chronic pain.
Cautionary note on forward looking statements
Any statements in this press release about future expectations, plans and prospects for the Company, including statements about the Companys strategy, future operations, clinical development of its therapeutic candidates, plans for potential future product candidates and other statements containing the words anticipate, believe, estimate, expect, intend, may, plan, predict, project, suggest, target, potential, will, would, could, should, continue, and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the status, timing, costs, results and interpretation of the Companys clinical trials or any future trials; the uncertainties inherent in conducting clinical trials; interpretations of regulatory interactions and expectations for regulatory submissions and approvals; availability of funding sufficient for the Companys foreseeable and unforeseeable operating expenses and capital expenditure requirements, including whether the reduction of our operating expenses as a result of the restructuring will allow us to retain the capabilities needed to bring oliceridine to market and whether our cash, cash equivalents, and marketable securities are sufficient to fund operating expenses and capital expenditure requirements into the second quarter of 2020; uncertainties related to the Companys intellectual property; other matters that could affect the availability or commercial potential of the Companys therapeutic candidates; and other factors discussed in the Risk Factors set forth in the Companys Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (SEC) and in other filings the Company makes with the SEC from time to time. In addition, the forward-looking statements included in this press release represent the Companys views only as of the date hereof. The Company anticipates that subsequent events and developments may cause the Companys views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, except as may be required by law.
Contacts
Trevena, Inc.
Investors:
Jonathan Violin, Ph.D.
Senior Vice President, Scientific Affairs & Investor Relations Officer
or
Erin Clark
Senior Director Corporate Strategy & Investor Relations
610-354-8840 x355
ir@trevena.com
or
Media:
pr@trevena.com
TREVENA, INC.
Condensed Statements of Operations
(Unaudited, in thousands except share and per share data)
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
| ||||||||
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Revenue |
|
$ |
3,000 |
|
$ |
|
|
$ |
5,500 |
|
$ |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Operating expenses: |
|
|
|
|
|
|
|
|
| ||||
|
General and administrative |
|
3,908 |
|
5,232 |
|
14,906 |
|
14,496 |
| ||||
|
Research and development |
|
3,350 |
|
10,181 |
|
13,076 |
|
41,776 |
| ||||
|
Restructuring charges |
|
|
|
|
|
64 |
|
|
| ||||
|
Total operating expenses |
|
7,258 |
|
15,413 |
|
28,046 |
|
56,272 |
| ||||
|
Loss from operations |
|
(4,258 |
) |
(15,413 |
) |
(22,546 |
) |
(56,272 |
) | ||||
|
Other income (expense) |
|
(225 |
) |
(586 |
) |
483 |
|
(873 |
) | ||||
|
Loss before income tax expense |
|
(4,483 |
) |
(15,999 |
) |
(22,063 |
) |
(57,145 |
) | ||||
|
Foreign income tax expense |
|
|
|
|
|
(745 |
) |
|
| ||||
|
Net loss |
|
$ |
(4,483 |
) |
$ |
(15,999 |
) |
$ |
(22,808 |
) |
$ |
(57,145 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share information: |
|
|
|
|
|
|
|
|
| ||||
|
Net loss per share of common stock, basic and diluted |
|
$ |
(0.06 |
) |
$ |
(0.27 |
) |
$ |
(0.32 |
) |
$ |
(0.98 |
) |
|
Weighted average shares outstanding, basic and diluted |
|
77,445,675 |
|
60,113,327 |
|
70,604,827 |
|
58,475,079 |
| ||||
TREVENA, INC.
Condensed Balance Sheets
(Unaudited, in thousands)
|
|
|
September 30, 2018 |
|
December 31, 2017 |
| ||
|
Assets |
|
|
|
|
| ||
|
Current assets: |
|
|
|
|
| ||
|
Cash and cash equivalents |
|
$ |
24,339 |
|
$ |
16,557 |
|
|
Marketable securities |
|
45,700 |
|
49,543 |
| ||
|
Prepaid expenses and other current assets |
|
1,196 |
|
1,393 |
| ||
|
Total current assets |
|
71,235 |
|
67,493 |
| ||
|
Restricted cash |
|
1,301 |
|
1,413 |
| ||
|
Property and equipment, net |
|
3,565 |
|
3,805 |
| ||
|
Intangible asset, net |
|
10 |
|
11 |
| ||
|
Total assets |
|
$ |
76,111 |
|
$ |
72,722 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders equity |
|
|
|
|
| ||
|
Current liabilities: |
|
|
|
|
| ||
|
Accounts payable |
|
$ |
836 |
|
$ |
1,424 |
|
|
Accrued expenses and other current liabilities |
|
3,221 |
|
4,303 |
| ||
|
Current portion of loans payable, net |
|
12,528 |
|
12,425 |
| ||
|
Deferred rent |
|
|
|
61 |
| ||
|
Total current liabilities |
|
16,585 |
|
18,213 |
| ||
|
Loans payable, net |
|
7,853 |
|
15,725 |
| ||
|
Capital leases, net of current portion |
|
23 |
|
31 |
| ||
|
Deferred rent, net of current portion |
|
2,993 |
|
3,006 |
| ||
|
Warrant liability |
|
13 |
|
10 |
| ||
|
Other long term liabilities |
|
|
|
1,104 |
| ||
|
Total liabilities |
|
27,467 |
|
38,089 |
| ||
|
|
|
|
|
|
| ||
|
Common stock |
|
82 |
|
62 |
| ||
|
Additional paid-in capital |
|
428,880 |
|
392,103 |
| ||
|
Accumulated deficit |
|
(380,298 |
) |
(357,490 |
) | ||
|
Accumulated other comprehensive loss |
|
(20 |
) |
(42 |
) | ||
|
Total stockholders equity |
|
48,644 |
|
34,633 |
| ||
|
Total liabilities and stockholders equity |
|
$ |
76,111 |
|
$ |
72,722 |
|