Applied Molecular Transport Reports Third Quarter 2023 Financial Results
Applied Molecular Transport Inc. (AMTI) entered into a definitive merger agreement with Cyclo Therapeutics, focusing on advancing Trappsol® Cyclo™ for the treatment of Niemann-Pick Disease Type C1 (NPC1). The merger is expected to close by year end 2023, with upcoming milestones including completion of enrollment in pivotal Phase 3 clinical trial in NPC1, reporting top line data and preparation for NDA submission. Financially, the company reported a significant decrease in research and development expenses compared to the same period in 2022, leading to a reduced net loss and cash and cash equivalents of $18.1 million as of September 30, 2023.
Positive
The merger with Cyclo Therapeutics presents a strategic opportunity for Applied Molecular Transport Inc. to advance its focus on Trappsol® Cyclo™ for the treatment of NPC1, a significant milestone for the company's future growth and development.
11/09/2023 - 04:01 PM
Company Entered into Definitive Merger Agreement with Cyclo Therapeutics
Cash and Cash Equivalents of $18.1 million , as of September 30, 2023
SOUTH SAN FRANCISCO, Calif., Nov. 09, 2023 (GLOBE NEWSWIRE) -- Applied Molecular Transport Inc. (Nasdaq: AMTI) (AMT), a biopharmaceutical company, today reported financial results for the third quarter ended September 30, 2023.
Recent Business Highlights and Anticipated Milestones
Entered into a definitive merger agreement with Cyclo Therapeutics Combined company will operate as Cyclo Therapeutics with primary focus on advancing Trappsol® Cyclo™ for the treatment of Niemann-Pick Disease Type C1 (NPC1) The merger is expected to close by year end 2023 Upcoming milestones include completion of enrollment in pivotal Phase 3 clinical trial in NPC1, reporting top line data and preparation for NDA submission Financial Results for the Third Quarter Ended September 30, 2023
Research and development (R&D) expenses. Total R&D expenses for the third quarter of 2023 were $0.3 million , compared to $18.2 million for the same period in 2022. The overall decrease was attributable to our restructuring of operations, related reductions in workforce implemented in March 2023 and discontinuing all research and development activities.
General and administrative (G&A) expenses . Total G&A expenses for the third quarter of 2023 were $7.0 million , compared to $7.3 million for the same period in 2022. The overall decrease was attributable to our restructuring of operations and related reductions in workforce implemented in March 2023.
Net loss. Net loss for the third quarter of 2023 was $6.9 million , compared to $25.2 million for the same period in 2022. Operating expenses for the third quarter of 2023 were $7.2 million and interest income was $0.3 million .
Cash and cash equivalents . As of September 30, 2023, cash and cash equivalents were $18.1 million .
About Applied Molecular Transport Inc.
AMT is a clinical-stage biopharmaceutical company that has a proprietary technology platform that enables the design of novel biologic product candidates in patient-friendly oral dosage forms.
For additional information on AMT, please visit www.appliedmt.com .
Forward-Looking Statements
This press release contains forward-looking statements as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release are forward-looking statements including statements relating to AMT’s plans, expectations, forecasts and future events. Such forward-looking statements include, but are not limited to, statements regarding the ability of AMT to enter into a strategic transaction and sufficiency of AMT’s cash resources. In some cases, you can identify forward- looking statements by terminology such as “believe,” “estimate,” “intend,” “may,” “plan,” “potentially,” “will,” “expect,” “enable,” “likely” or the negative of these terms or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Actual events, trends or results could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements based on various factors. Information regarding the foregoing and additional risks may be found in the section entitled “Risk Factors” in AMT’s Annual and Quarterly Reports on Form 10-K and 10-Q filed with the Securities and Exchange Commission (the “SEC”), and AMT’s future reports to be filed with the SEC. These forward-looking statements are made as of the date of this press release, and AMT assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by law.
Applied Molecular Transport Inc. Condensed Balance Sheets (unaudited) (in thousands) September 30, 2023 December 31, 2022 Assets Current assets: Cash and cash equivalents $ 18,103 $ 61,145 Prepaid expenses 457 2,688 Other current assets 259 186 Total current assets 18,819 64,019 Property and equipment, net 31 8,183 Operating lease right-of-use assets 1,165 33,222 Finance lease right-of-use assets — 584 Restricted cash — 916 Other assets — 522 Total assets $ 20,015 $ 107,446 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 161 $ 1,583 Accrued expenses 2,261 8,660 Lease liabilities, operating lease - current 1,353 4,639 Lease liabilities, finance lease - current — 205 Total current liabilities 3,775 15,087 Lease liabilities, operating lease — 31,228 Lease liabilities, finance lease — 49 Other liabilities — 244 Total liabilities 3,775 46,608 Commitments and contingencies Stockholders’ equity: Common stock 4 4 Additional paid-in capital 434,393 426,804 Accumulated deficit (418,157 ) (365,970 ) Total stockholders’ equity 16,240 60,838 Total liabilities and stockholders’ equity $ 20,015 $ 107,446
Applied Molecular Transport Inc. Condensed Statements of Operations (unaudited) (in thousands, except share and per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Operating expenses: Research and development $ 250 $ 18,233 $ 15,796 $ 72,273 General and administrative 7,007 7,281 20,804 28,052 Restructuring, impairment, and related charges (40 ) 12 16,832 3,799 Total operating expenses 7,217 25,526 53,432 104,124 Loss from operations (7,217 ) (25,526 ) (53,432 ) (104,124 ) Interest income, net 283 321 1,281 393 Other income (expense), net (3 ) (1 ) (36 ) 5 Net loss $ (6,937 ) $ (25,206 ) $ (52,187 ) $ (103,726 ) Net loss per share, basic and diluted $ (0.17 ) $ (0.65 ) $ (1.32 ) $ (2.68 ) Weighted-average shares of common stock outstanding, basic and diluted 39,751,028 38,914,570 39,426,218 38,769,226
Refer to the Company’s applicable SEC filings for previously reported periods.
Investor Relations Contact: Alexandra Santos Wheelhouse Life Science Advisorsasantos@wheelhouselsa.com
Media Contact: Aljanae Reynolds Wheelhouse Life Science Advisorsareynolds@wheelhouselsa.com
What is the merger agreement between Applied Molecular Transport Inc. and Cyclo Therapeutics about?
The merger agreement focuses on advancing Trappsol® Cyclo™ for the treatment of Niemann-Pick Disease Type C1 (NPC1).
What are the upcoming milestones for Applied Molecular Transport Inc.?
Upcoming milestones include completion of enrollment in pivotal Phase 3 clinical trial in NPC1, reporting top line data and preparation for NDA submission.
What were the financial results for the third quarter of 2023?
The company reported a significant decrease in research and development expenses compared to the same period in 2022, leading to a reduced net loss and cash and cash equivalents of $18.1 million as of September 30, 2023.
How much were the research and development expenses for the third quarter of 2023?
Total R&D expenses for the third quarter of 2023 were $0.3 million, compared to $18.2 million for the same period in 2022.
What was the net loss for the third quarter of 2023?
Net loss for the third quarter of 2023 was $6.9 million, compared to $25.2 million for the same period in 2022.