SAN JOSE, Calif., Sept. 9, 2019 /PRNewswire/ -- BioPharmX
Corporation (NYSE American: BPMX), a specialty pharmaceutical
company focused on developing innovative medical dermatology
products, today reports financial results for the fiscal quarter
ended July 31, 2019.
Recent Highlights
- Announced positive results from its Phase 2b clinical trial of BPX-041, a novel
topical gel formulation of fully solubilized minocycline for the
treatment of moderate-to-severe papulopustular rosacea. BPX-04, a
1% minocycline gel, successfully met both the primary and secondary
endpoints of the trial in demonstrating a statistically significant
mean change in the number of facial inflammatory lesions and a
two-grade improvement to clear or almost clear on the
Investigator's Global Assessment (IGA) scale from baseline to week
12. BPX-04 appeared to be generally well-tolerated and there were
no serious treatment-related adverse events.
- Announced the appointment of Steven M.
Bosacki, a 20-year pharmaceutical industry veteran, as its
Chief Operating Officer.
- Received notice from the U.S. Patent and Trademark Office
granting additional patent protection for its lead candidates,
BPX-01 for the treatment of inflammatory lesions of acne vulgaris
and BPX-04 for the treatment of papulopustular rosacea (U.S. Patent
No. 10,391,108, entitled "Pharmaceutical Tetracycline Composition
For Dermatological Use").
- Retained Locust Walk Partners, LLC, a global life science
transaction firm focused on biopharmaceutical and medical
technology companies, to provide transaction advisory services.
Locust Walk has now initiated efforts to secure a global strategic
development and commercialization partner for BioPharmX's
late-stage topical minocycline drug candidates.
"This was an important quarter for BioPharmX to position our
late-stage product candidates for continued success. We were
extremely pleased to deliver positive Phase 2b trial results for BPX-04 as well as to secure
additional patent protection for the underlying technology," said
Dr. Tierney, BioPharmX CEO. "Following a strategic review of the
business, we have determined that the best path forward to realize
the intrinsic value in these assets will be a strategic partnership
transaction. As such, I am pleased to be working with the Locust
Walk team, given my longstanding relationship with the firm, to
initiate a more formal process with the aim to announce a strategic
transaction in Q4 2019."
Second Quarter Financial Results
For the second fiscal quarter ended July 31, 2019, total
operating expenses were $2.7 million, compared with total
operating expenses of $4.5 million in the prior fiscal
year's second quarter.
Net loss for the fiscal quarter ended July 31,
2019 was $2.6 million, or $0.22 per share,
compared with a net loss of $4.4 million, or $0.58 per
share, during the prior fiscal year's second quarter.
Excluding stock-based compensation expense and the impact of
change in fair value of warrant liability, non-GAAP net loss for
the fiscal quarter ended July 31, 2019 was $2.5
million, or $0.20 per share. During the second quarter of
the prior fiscal year, the comparable non-GAAP net loss
was $4.0 million, or $0.52 per share.
Cash and cash equivalents were $3.3 million as of July
31, 2019.
About BioPharmX® Corporation
BioPharmX Corporation
(NYSE American: BPMX) is a specialty pharmaceutical company focused
on developing prescription products utilizing its proprietary
HyantX Topical Delivery System for dermatology indications. To
learn more about BioPharmX, visit www.BioPharmX.com.
About Locust Walk
Locust Walk Partners, LLC is a
global life science transaction firm. Their integrated team-based
approach across capabilities, geographies, and industry segments
delivers the right products, the right partners, and the most
attractive sources of capital to get the right deals done for
biopharma and medtech companies.
Capabilities – cohesive strategy, market analytics, and
transaction capabilities
Geographies – global footprint across all key life science
geographies
Industry Segments – comprehensive coverage across biopharma and
medtech segments
For more information on Locust Walk or to contact a deal team
member, please visit www.locustwalk.com.
Use of Non-GAAP Measures
BioPharmX Corporation has
supplemented its financial information prepared in accordance with
generally accepted accounting principles in the United States ("GAAP") with non-GAAP
measures, including non-GAAP net loss and non-GAAP net loss per
share, which do not include stock-based compensation expense and
the impact of changes in fair value of warrant liability. The
presentation of this additional information is not meant to be
considered in isolation or as a substitute for results prepared in
accordance with GAAP. Management uses the non-GAAP information
internally to evaluate its ongoing business, operational
performance and cash requirements and believes these non-GAAP
measures are useful to investors as they provide the same basis for
evaluating BioPharmX Corporation's performance as applied by
management.
BioPharmX Corporation has provided a reconciliation of each
non-GAAP financial measure to the most directly comparable GAAP
financial measure. These non-GAAP measures may be different from
non-GAAP measures used by other companies, including peer
companies, and therefore, comparability may be limited. In
addition, these non-GAAP measures are not based on any
comprehensive set of accounting rules or principles. BioPharmX
Corporation believes that non-GAAP measures have limitations in
that they do not reflect all of the amounts associated with its
results of operations as determined in accordance with GAAP and
that these measures should be considered in addition to, not as a
substitute for or in isolation from, measures prepared in
accordance with GAAP. BioPharmX Corporation encourages investors
and others to review the company's financial information in its
entirety and not rely on a single financial measure.
Stock-based compensation expense represents non-cash charges
related to equity awards granted by BioPharmX Corporation. The
change in fair value of warrant liability results from the periodic
revaluing of the warrant liability. These amounts are excluded
from the company's non-GAAP net loss and non-GAAP net loss per
share because they are not reflective of ongoing operating results
in the period incurred. Although these may be recurring charges to
BioPharmX Corporation's operations, management believes the
measurement of these amounts can vary considerably from period to
period and depend substantially on factors that are not a direct
consequence of operating performance that is within management's
control. Thus, management believes that excluding these charges
from non-GAAP net loss and non-GAAP net loss per share facilitates
comparisons of BioPharmX Corporation's operational performance in
different periods, as well as with similarly determined non-GAAP
financial measures of comparable companies.
Forward-Looking Statements
The information in this
press release contains forward-looking statements and information
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are subject to the "safe harbor" created by those
sections. This press release contains forward-looking statements
about the company's expectations, plans, intentions, and
strategies, including, but not limited to the company's engagement
with Locust Walk and its ability to enter into a strategic
partnership, or the timing of any such partnership, the results
from the company's Phase 2b rosacea
study, the company's ability to raise capital under its Capital On
Demand Sales Agreement, the commencement and results of future
trials for BPX-04, level of operating expenditures, the company's
ability to obtain patent protection and defend its intellectual
property and the company's ability to regain compliance with the
NYSE American LLC's continued listing standards and maintain its
listing in the future. Additional risks are set forth in our
filings with the Securities and Exchange Commission, including
those described in the company's Quarterly Report on Form 10-Q for
the quarter ended July 31, 2019. The
forward-looking statements included in this press release are made
only as of the date hereof, and the company undertakes no
obligation to publicly update such statements.
1Caution: BPX-04 is a new drug limited by the U.S.
law to investigational use only.
BioPharmX and HyantX are registered trademarks of BioPharmX,
Inc.
--TABLES TO FOLLOW --
BIOPHARMX
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
(in thousands,
except per share amounts; unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
July
31,
|
|
July
31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Revenues,
net
|
$
-
|
|
$
24
|
|
$
-
|
|
$
42
|
Cost of goods
sold
|
-
|
|
13
|
|
-
|
|
20
|
Gross
margin
|
-
|
|
11
|
|
-
|
|
22
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
1,375
|
|
2,730
|
|
3,574
|
|
5,057
|
|
Sales and
marketing
|
169
|
|
566
|
|
433
|
|
1,167
|
|
General and
administrative
|
1,116
|
|
1,182
|
|
2,293
|
|
2,628
|
|
|
Total operating
expenses
|
2,660
|
|
4,478
|
|
6,300
|
|
8,852
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(2,660)
|
|
(4,467)
|
|
(6,300)
|
|
(8,830)
|
Change in fair value
of warrant liability
|
2
|
|
23
|
|
11
|
|
(43)
|
Other income,
net
|
12
|
|
34
|
|
22
|
|
63
|
|
Loss before provision
for income taxes
|
(2,646)
|
|
(4,410)
|
|
(6,267)
|
|
(8,810)
|
|
Provision for income
taxes
|
-
|
|
-
|
|
2
|
|
2
|
Net and
comprehensive loss
|
$(2,646)
|
|
$
(4,410)
|
|
$(6,269)
|
|
$(8,812)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
($0.22)
|
|
($0.58)
|
|
($0.58)
|
|
($1.19)
|
Shares used in
computing net loss per share
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
12,245
|
|
7,653
|
|
10,862
|
|
7,425
|
BIOPHARMX
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
July
31,
|
|
January
31,
|
|
|
|
|
2019
|
|
2019
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
3,290
|
|
$
3,069
|
|
|
Prepaid expenses and
other
|
483
|
|
316
|
|
|
|
Total current
assets
|
3,773
|
|
3,385
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
202
|
|
148
|
|
Operating lease
right-of-use asset, net
|
1,069
|
|
—
|
|
Other
|
121
|
|
121
|
|
|
|
Total
assets
|
$
5,165
|
|
$
3,654
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
937
|
|
$
1,363
|
|
|
Accrued expenses and
other
|
1,081
|
|
934
|
|
|
|
Total current
liabilities
|
2,018
|
|
2,297
|
|
|
|
|
|
|
|
|
Long-term
liabilities
|
935
|
|
59
|
|
|
|
Total
liabilities
|
2,953
|
|
2,356
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
2,212
|
|
1,298
|
|
|
|
Total liabilities and
stockholders' equity
|
$
5,165
|
|
$
3,654
|
BIOPHARMX
CORPORATION
|
Reconciliation of
GAAP Net Loss to Non-GAAP Net Loss
|
(in thousands,
except per share amounts; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
July
31,
|
|
July
31,
|
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
available to common stockholders
|
$(2,646)
|
|
$
(4,410)
|
|
$(6,269)
|
|
$(8,812)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value
of warrant liability
|
(2)
|
|
(23)
|
|
(11)
|
|
43
|
|
|
Stock-based
compensation expense:
|
|
|
|
|
|
|
|
|
|
-
|
Research and
development
|
85
|
|
159
|
|
188
|
|
359
|
|
|
-
|
Sales and
marketing
|
12
|
|
112
|
|
33
|
|
241
|
|
|
-
|
General and
administrative
|
80
|
|
175
|
|
147
|
|
439
|
|
|
|
Total stock-based
compensation expense
|
177
|
|
446
|
|
368
|
|
1,039
|
|
|
Total reconciling
items
|
175
|
|
423
|
|
357
|
|
1,082
|
|
Non-GAAP net loss
available to common stockholders
|
$(2,471)
|
|
$
(3,987)
|
|
$(5,912)
|
|
$(7,730)
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net loss
available to common stockholders
|
$
(0.22)
|
|
$
(0.58)
|
|
$
(0.58)
|
|
$
(1.19)
|
|
|
Reconciling
items
|
|
|
|
|
|
|
|
|
|
-
|
Change in fair value
of warrant liability
|
—
|
|
—
|
|
—
|
|
0.01
|
|
|
-
|
Stock-based
compensation expense
|
0.02
|
|
0.06
|
|
0.04
|
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss
per share: basic and diluted
|
$
(0.20)
|
|
$
(0.52)
|
|
$
(0.54)
|
|
$
(1.04)
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
computing non-GAAP net loss per share
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
12,245
|
|
7,653
|
|
10,862
|
|
7,425
|
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SOURCE BioPharmX Corporation