Cerevel Therapeutics Announces Third Quarter 2020 Financial Results and Key Business Highlights
11/16/2020 - 06:30 AM
Participants dosed in clinical trials for lead programs in schizophrenia, epilepsy, anxiety and Parkinson’s disease
Debuted as publicly traded entity under symbol CERE
Net proceeds of approximately $440 million raised from completed business combination transaction with ARYA Sciences Acquisition Corp II and concurrent PIPE financing
BOSTON, Nov. 16, 2020 (GLOBE NEWSWIRE) -- Cerevel Therapeutics (Nasdaq: CERE), a company dedicated to unraveling the mysteries of the brain to treat neuroscience diseases, today announced financial results for the third quarter ended September 30, 2020 and provided recent business updates.
“During the third quarter of 2020 we made substantial progress towards our goal of becoming the premier neuroscience company,” said Tony Coles, M.D., chief executive officer and chairperson of Cerevel Therapeutics. “As a result of our business combination with Arya II and the accompanying PIPE financing, we now have the financial resources expected to fund our operating plan into 2023 and advance each of our lead programs in the clinic. Our goal is to make a profound impact in the lives of people with schizophrenia, anxiety, epilepsy and Parkinson’s disease and we have initiated enrollment in each of our clinical trials for these diseases.”
Third Quarter and Key Business Highlights
Dosed participants in clinical trials for all three lead programs. ° CVL-231: the first participant was dosed in Part B of the Phase 1b trial of CVL-231 in patients with schizophrenia. The Phase 1b trial consists of Part A, a multiple ascending dose trial and Part B, a pharmacokinetic/pharmacodynamic trial. Dosing in Part A of the trial had started in the second half of 2019. Data from the Phase 1b trial are expected in the second half of 2021.° CVL-865: the first participant was dosed in the Phase 2 REALIZE trial evaluating CVL-865 as an adjunctive therapy in adults with drug-resistant focal onset seizures. Data from the REALIZE trial are expected in the second half of 2022. Additionally, the first participant was dosed in the Phase 1 proof-of-principle trial for acute anxiety in healthy volunteers. Data from this Phase 1 trial are expected in the second half of 2021.° Tavapadon: the first participants have been dosed in all three of the ongoing clinical trials in the Phase 3 program evaluating tavapadon in patients with Parkinson’s disease. Preliminary data readouts from the Phase 3 program are expected to be available beginning in the first half of 2023.
Debuted as publicly traded neuroscience company . On October 28, 2020, Cerevel began trading as a public company via one of the largest go-public transactions in the biopharma industry to date. Following the completion of its business combination with ARYA Sciences Acquisition Corp II (Arya II), a special purpose acquisition company or SPAC , sponsored by Perceptive Advisors, Cerevel Therapeutics Holdings, Inc., the resulting combined company, commenced trading its shares under the symbol “CERE” and its warrants under the symbol “CEREW” on the Nasdaq Capital Market.Raised net proceeds of approximately $440 million through completed business combination . On July 29, 2020, Cerevel Therapeutics and Arya II entered into a definitive business combination agreement. Concurrently, a group of premier healthcare investors committed to participate in the transaction through a concurrent private investment in public equity (“PIPE”) financing. On October 27, 2020, the business combination was completed and net proceeds from the transaction totaled approximately $440 million , which included funds held in Arya II’s trust account and proceeds from the PIPE financing, less transaction expenses. Third Quarter Financial Results
Cash and cash equivalents: Cash and cash equivalents were $13 million as of September 30 2020. Following receipt of the net proceeds from the business combination with Arya II and the concurrent PIPE financing, Cerevel Therapeutics expects its cash and cash equivalents will be sufficient to fund its current operating plan into 2023.Research and Development (R&D) Expenses: R&D expenses were $24 million for the third quarter of 2020 as compared to $17 million for the third quarter of 2019. The increase in research and development expense was primarily due to higher program costs related to advancing our pipeline and increased personnel costs as we grew our organization.General and Administrative (G&A) Expenses: G&A expenses were $10 million for the third quarter of 2020 as compared to $10 million for the third quarter of 2019.Net Loss: Net loss was $39 million for the third quarter of 2020, as compared to net loss of $36 million for the third quarter of 2019. About Cerevel Therapeutics Cerevel Therapeutics is dedicated to unraveling the mysteries of the brain to treat neuroscience diseases. The company is tackling neuroscience diseases with a differentiated approach that combines expertise in neurocircuitry with a focus on receptor selectivity. Cerevel Therapeutics has a diversified pipeline comprising five clinical-stage investigational therapies and several preclinical compounds with the potential to treat a range of neuroscience diseases, including schizophrenia, epilepsy, Parkinson’s disease and substance use disorder. Headquartered in Boston, Cerevel Therapeutics is advancing its current research and development programs while exploring new modalities through internal research efforts, external collaborations or potential acquisitions. For more information, visit www.cerevel.com .
Special Note Regarding Forward-Looking Statements This press release contains forward-looking statements that are based on management’s beliefs and assumptions and on information currently available to management. In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although we believe that we have a reasonable basis for each forward-looking statement contained in this press release, we caution you that these statements are based on a combination of facts and factors currently known by us and our projections of the future, about which we cannot be certain. Forward-looking statements in this press release include, but are not limited to, statements about the potential attributes and benefits of our product candidates, the format and timing of our product development activities and clinical trials, including the expected timing of data announcements, and the sufficiency of our financial resources. We cannot assure you that the forward-looking statements in this press release will prove to be accurate. Furthermore, if the forward-looking statements prove to be inaccurate, the inaccuracy may be material. Actual performance and results may differ materially from those projected or suggested in the forward-looking statements due to various risks and uncertainties, including, among others: that clinical trial results may not be favorable; uncertainties inherent in the product development process (including with respect to the timing of results and whether such results will be predictive of future results); the impact of COVID-19 on the timing, progress and results of ongoing or planned clinical trials; other impacts of COVID-19, including operational disruptions or delays or to our ability to raise additional capital; whether and when, if at all, our product candidates will receive approval from the FDA or other regulatory authorities, and for which, if any, indications; competition from other biotechnology companies; uncertainties regarding intellectual property protection; and other risks identified in our SEC filings, including those under the heading “Risk Factors” in our definitive proxy statement/prospectus filed with the SEC on October 7, 2020. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all. The forward-looking statements in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.
Media Contact: Rachel Eides W2O purereides@purecommunications.com
I nvestor Contact: Matthew Calistri Cerevel Therapeuticsmatthew.calistri@cerevel.com
TABLE 1 CEREVEL THERAPEUTICS HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except per share amounts) For the Three Months For the Nine Months Ended September 30, Ended September 30, 2019 2020 2019 2020 Operating expenses: Research and development $ 17,342 $ 24,026 $ 28,326 $ 73,168 General and administrative 9,643 10,336 18,740 34,052 Total operating expenses 26,985 34,362 47,066 107,220 Loss from operations (26,985 ) (34,362 ) (47,066 ) (107,220 ) Interest income, net 368 1 1,360 210 Other income (expense), net (8,980 ) (4,684 ) (26,423 ) (11,976 ) Loss before income taxes (35,597 ) (39,045 ) (72,129 ) (118,986 ) Income tax (provision) benefit, net - 5 - 21 Net loss and comprehensive loss $ (35,597 ) $ (39,040 ) $ (72,129 ) $ (118,965 ) Net loss per share, basic and diluted $ (7.73 ) $ (5.49 ) $ (15.66 ) $ (17.89 ) Weighted-average shares used in calculating net loss per share, basic and diluted 4,608 7,112 4,605 6,648
TABLE 2 CEREVEL THERAPEUTICS HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in thousands) As of As of December 31, 2019 September 30, 2020 ASSETS Current assets: Cash and cash equivalents $ 79,551 $ 12,808 Prepaid expenses and other current assets 7,526 3,076 Total current assets 87,077 15,884 Property and equipment, net 1,476 16,620 Operating lease assets 26,015 24,727 Restricted cash 4,131 4,200 Other long-term assets 2,107 5,606 Total assets $ 120,806 $ 67,037 LIABILITIES, CONVERTIBLE STOCK AND STOCKHOLDERS’ (DEFICIT) EQUITY Current liabilities: Accounts payable $ 2,109 $ 4,822 Accrued expenses and other current liabilities 10,175 22,181 Operating lease liabilities, current portion 2,592 2,206 Total current liabilities 14,876 29,209 Operating lease liabilities, net of current portion 25,819 29,515 Other long-term liabilities 2,288 9,060 Total liabilities 42,983 67,784 Convertible stock and stockholders' (deficit) equity 77,823 (747 ) Total liabilities, convertible stock and stockholders’ (deficit) equity $ 120,806 $ 67,037
TABLE 3 CEREVEL THERAPEUTICS HOLDINGS, INC. SUMMARY OF CASH FLOWS (unaudited, in thousands) For the Nine Months Ended September 30, CASH FLOWS 2019 2020 Net cash flows used in operating activities $ (34,907 ) $ (76,099 ) Net cash flows used in investing activities (550 ) (11,341 ) Net cash flows provided by financing activities 58 20,766 Net decrease in cash, cash equivalents and restricted cash (35,399 ) (66,674 ) Cash, cash equivalents and restricted cash, beginning of the period 95,443 83,682 Cash, cash equivalents and restricted cash, end of the period $ 60,044 $ 17,008 Note: Cash, cash equivalents and restricted cash balances include restricted cash of $4.2 million and $4.1 million as of September 30, 2020 and December 31, 2020, respectively.
TABLE 4 CEREVEL THERAPEUTICS HOLDINGS, INC. GAAP TO NON-GAAP RECONCILIATION (unaudited, in thousands, except per share amounts) An itemized reconciliation between net loss per share on a GAAP basis and on a Non-GAAP basis is as follows: For the Three Months For the Nine Months Ended September 30, Ended September 30, 2019 2020 2019 2020 GAAP net loss per share, basic and diluted $ (7.73 ) $ (5.49 ) $ (15.66 ) $ (17.89 ) Adjustments to GAAP net loss per share (as detailed below) 2.54 1.15 6.56 3.65 Non-GAAP net loss per share, basic and diluted $ (5.19 ) $ (4.34 ) $ (9.10 ) $ (14.24 ) Weighted-average shares used in calculating net loss per share 4,608 7,112 4,605 6,648 An itemized reconciliation between net loss on a GAAP basis and on a Non-GAAP basis is as follows: For the Three Months For the Nine Months Ended September 30, Ended September 30, 2019 2020 2019 2020 GAAP net loss $ (35,597 ) $ (39,040 ) $ (72,129 ) $ (118,965 ) Adjustments: Research and development: equity-based compensation expense 879 1,059 1,530 2,883 General and administrative: equity-based compensation expense 1,820 2,413 2,262 6,981 General and administrative: write-off of deferred financing costs - - - 2,485 Other income (expense), net: loss (gain) on fair value remeasurement of Equity Commitment 11,880 4,650 30,202 11,300 Other income (expense), net: loss (gain) on fair value remeasurement of Share Purchase Option (2,900 ) 30 (3,780 ) 670 Non-GAAP net loss $ (23,918 ) $ (30,888 ) $ (41,915 ) $ (94,646 )
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