Unicycive Announces Second Quarter 2024 Financial Results and Provides Business Update

Rhea-AI Summary

Unicycive Therapeutics (UNCY) reported Q2 2024 financial results and provided a business update. Key highlights include:

1. On track to submit OLC New Drug Application (NDA) by end of August 2024.

2. Positive topline data from OLC pivotal trial, with 90% of patients achieving phosphate control.

3. Completed enrollment in UNI-494 Phase 1 study, results expected in Q3 2024.

4. Granted new patent for UNI-494 to treat acute kidney injury (AKI).

5. Q2 2024 financial results: R&D expenses $4.9M, G&A expenses $2.5M, net income $3.0M (EPS $0.08 basic, -$0.15 diluted).

6. Cash position of $41.8M, sufficient to fund operations into 2026.

Positive

• Successful completion of OLC pivotal trial with positive safety and efficacy results
• On track for OLC NDA submission by end of August 2024
• 90% of patients achieved phosphate control in OLC trial
• Granted new patent for UNI-494 to treat acute kidney injury
• Inclusion in Russell Microcap® Index
• Strong cash position of $41.8M, funding operations into 2026

Negative

• Increased R&D expenses from $2.3M to $4.9M year-over-year
• Increased G&A expenses from $2.1M to $2.5M year-over-year
• Diluted loss per share of $0.15 in Q2 2024

Insights

Financial Analyst

Unicycive's Q2 2024 results show promising progress but financial caution is warranted. While R&D expenses increased to $4.9 million from $2.3 million YoY, reflecting intensified drug development efforts, G&A expenses also rose to $2.5 million. The $3.0 million net income is misleading, primarily due to a $17.3 million non-cash gain from warrant liability revaluation. Excluding this, the company would have reported a significant loss. With $41.8 million cash on hand, runway into 2026 provides some comfort, but investors should monitor cash burn closely as Unicycive transitions towards commercialization.

Medical Research Analyst

The pivotal trial results for OLC are encouraging, particularly the 90% phosphate control rate and favorable tolerability profile. The 1.4% discontinuation rate due to treatment-related adverse events in the evaluable population is notably low. Patient preference data is compelling, with 79% favoring OLC over prior therapies. However, it's important to await FDA review of the NDA submission. For UNI-494, while patent protection until 2040 is positive, the upcoming Phase 1 results will be critical in assessing its potential in acute kidney injury treatment. Overall, Unicycive's pipeline shows promise, but regulatory hurdles remain.

Market Research Analyst

Unicycive's inclusion in the Russell Microcap® Index could enhance its visibility and liquidity. The company's focus on both chronic and acute kidney conditions positions it well in the growing renal disease market. Patient preference data for OLC suggests potential for market penetration if approved, addressing the unmet need for reduced pill burden in phosphate binders. However, the transition from clinical-stage to commercial organization will be challenging. Investors should watch for partnerships or licensing deals that could support commercialization efforts. The upcoming UNI-494 data will be important in assessing the company's diversification strategy beyond OLC.

– On Track to Submit OLC New Drug Application (NDA) by End of August 2024 –

LOS ALTOS, Calif., Aug. 14, 2024 (GLOBE NEWSWIRE) -- Unicycive Therapeutics, Inc. (Nasdaq: UNCY) (the “Company” or “Unicycive”), a clinical-stage biotechnology company developing therapies for patients with kidney disease, today announced its financial results for the three months ended June 30, 2024, and provided a business update.

“Achieving successful results from our oxylanthanum carbonate (OLC) pivotal trial was a significant milestone for the company and brings us one step closer to becoming a commercial organization,” said Shalabh Gupta, M.D., Chief Executive Officer of Unicycive. “Importantly, the trial confirmed tolerability of OLC in patients with hyperphosphatemia on dialysis which is the final data component needed to support submission of a New Drug Application (NDA) to the FDA utilizing the 505(b)(2) regulatory pathway. In addition, we were able to achieve phosphate control in 90% of patients at the end of their titration. Our recent pharmacokinetic analysis of samples from the pivotal study revealed that the systemic exposure of our drug is minimal and, as expected, the serum lanthanum levels are similar to that seen with Fosrenol^®. With this data, we believe that we have completed all the necessary requirements from this pivotal clinical trial to fulfill the FDA’s requests. We remain on track to submit our NDA by the end of this month, and we maintain a high degree of confidence in the potential for OLC to be a best-in-class commercial product, if approved.”

“In July 2024 we were granted a new patent for UNI-494 by the USPTO which is an important component of our development strategy to target patients with acute kidney injury (AKI), a serious condition resulting from a sudden loss of kidney function. We have completed enrollment in the UNI-494 Phase 1 dose-ranging study and expect to report results in the third quarter of this year. With assets targeting both chronic and acute kidney conditions, we remain steadfastly focused on improving treatment options and overall quality of life for patients living with renal diseases,” concluded Dr. Gupta.

Key Highlights

• Reported positive topline data from the pivotal clinical trial of OLC with regard to both safety and tolerability endpoints. The study established promising tolerability of OLC at clinically effective doses in chronic kidney disease (CKD) patients on hemodialysis. In terms of tolerability, OLC had a low rate of discontinuation due to adverse events (AEs) with only 5/86 patients (6%) discontinuing from the Study. The primary endpoint was defined as the rate of discontinuations due to treatment-related AEs leading to discontinuation in the maintenance period. In the UNI-OLC-201 trial, the discontinuation rate was 1.4%, as there was only 1 discontinuation due to a treatment-related AE in the Evaluable Population (n=71). In the full Safety Population (n=86), a total of 3 patients discontinued due to treatment-related AEs, a rate of 3.5%. There were no treatment-related serious adverse events (SAEs).
• Announced initial results from the patient reported outcome survey conducted during the UNI-OLC-201 pivotal clinical trial. In the survey, OLC consistently outperformed the other phosphate binders in all categories: 79% of patients preferred OLC while 18% preferred their prior therapy, 98% of patients said that OLC was easy to take compared to 55% for their prior therapy, 89% of patients said they were satisfied with OLC while 49% were satisfied with their prior therapy.
• Enrollment in the UNI-494 Phase 1 study is complete, and the Company expects to present the data in Q3 2024.
• Granted a patent on UNI-494 to treat AKI by the United States Patent and Trademark Office (USPTO). The patent, valid until 2040, secures protection of a method of treating a disease or a condition selected from AKI or contrast induced nephropathy by administering the UNI-494 compound.
• Included in the Russell Microcap^® Index effective July 1, 2024. Membership in the Russell Microcap^® Index, which remains in place for one year, means automatic inclusion in the appropriate growth and value style indexes.
• Delivered multiple presentations on OLC and UNI-494 at the 61^st European Renal Association (ERA) Congress including two oral presentations and trial-in-progress posters on OLC and UNI-494. An oral presentation demonstrated a significant reduction in urinary phosphate excretion for OLC compared to vehicle treated animals. A second oral presentation evaluated the in vivo efficacy of UNI-494 and showed that a single oral dose of UNI-494 significantly reduced important kidney functional markers.
• Presented two posters related to OLC at the National Kidney Foundation (NKF) Spring Clinical Meeting. Importantly, it was demonstrated that OLC is bioequivalent to lanthanum carbonate from the Phase 1, single-center, randomized 1:1, open-label, controlled, 2-way crossover study. In addition, a poster presentation on the findings of a survey of 100 renal dieticians concluded that strategies that reduce pill burden and increase ease of use for patients are needed. This poster was among the top-rated submissions to the Meeting.
  

Financial Results for the Quarter Ended June 30, 2024

Research and Development (R&D) expenses were $4.9 million for the three months ended June 30, 2024, compared to $2.3 million for the three months ended June 30, 2023. The increase in research and development expenses was primarily due to increased drug development costs.

General and Administrative (G&A) expenses were $2.5 million for the three months ended June 30, 2024, compared to $2.1 million for the three months ended June 30, 2023. The increase was primarily due to increased non-cash stock compensation costs.

Other Income (Expense) was $17.3 million for the three months ended June 30, 2024 compared to $0.5 million in the three months ended June 30, 2023, due primarily to a decrease in the fair value of our warrant liability.

Net income attributable to common stockholders for the three months ended June 30, 2024 was $3.0 million, and basic earnings per share was $0.08. On a diluted basis, we reported a loss per share for the same period of $0.15. The net income for the three-month period ended June 30, 2024 was attributable to a decrease in the fair value of our warrant liability. For the three months ended June 30, 2023, we reported a net loss of $4.4 million, and basic loss per share of $0.29. On a diluted basis, we reported a loss per share for the same period of $0.29.

As of June 30, 2024, cash and cash equivalents totaled $41.8 million. The Company believes that it has sufficient resources to fund planned operations into 2026.

About Unicycive Therapeutics

Unicycive Therapeutics is a biotechnology company developing novel treatments for kidney diseases. Unicycive’s lead drug candidate, oxylanthanum carbonate (OLC), is a novel investigational phosphate binding agent being developed for the treatment of hyperphosphatemia in chronic kidney disease patients on dialysis. UNI-494 is a patent-protected new chemical entity in clinical development for the treatment of conditions related to acute kidney injury. For more information, please visit Unicycive.com and follow us on LinkedIn and YouTube.

Forward-looking statements

Certain statements in this press release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified using words such as "anticipate," "believe," "forecast," "estimated" and "intend" or other similar terms or expressions that concern Unicycive's expectations, strategy, plans or intentions. These forward-looking statements are based on Unicycive's current expectations and actual results could differ materially. There are several factors that could cause actual events to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, clinical trials involve a lengthy and expensive process with an uncertain outcome, and results of earlier studies and trials may not be predictive of future trial results; our clinical trials may be suspended or discontinued due to unexpected side effects or other safety risks that could preclude approval of our product candidates; risks related to business interruptions which could seriously harm our financial condition and increase our costs and expenses; dependence on key personnel; substantial competition; uncertainties of patent protection and litigation; dependence upon third parties; and risks related to failure to obtain FDA clearances or approvals and noncompliance with FDA regulations. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and other factors described more fully in the section entitled ‘Risk Factors’ in Unicycive’s Annual Report on Form 10-K for the year ended December 31, 2023, and other periodic reports filed with the Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof, and Unicycive specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

Fosrenol^® is a registered trademark of Shire International Licensing BV.

Investor Contact:

ir@unicycive.com
(650) 900-5470

SOURCE: Unicycive Therapeutics, Inc.

--Tables to Follow--

Unicycive Therapeutics, Inc. Balance Sheets (In thousands, except for share and per share amounts)
		As of					As of
		December 31,					June 30,
		2023					2024
Assets							(Unaudited)
Current assets:
Cash and cash equivalents		$	9,701				$	41,780
Prepaid expenses and other current assets			3,698					2,274
Total current assets			13,399					44,054
Right of use asset, net			766					604
Property, plant and equipment, net			26					43
Total assets		$	14,191				$	44,701
Liabilities, mezzanine equity, and stockholders’ deficit
Current liabilities:
Accounts payable		$	839				$	1,472
Accrued liabilities			3,234					3,122
Dividends payable			-					1
Warrant liability			13,134					8,131
Operating lease liability - current			327					360
Total current liabilities			17,534					13,086
Operating lease liability – long term			466					274
Total liabilities			18,000					13,360
Commitments and contingencies (Note 8)
Mezzanine equity:
Series B-1 preferred stock, $0.001 par value per share – zero shares authorized at December 31, 2023, and 50,000 shares authorized at June 30, 2024; zero shares outstanding at December 31, 2023, and 50,000 shares outstanding at June 30, 2024			-					46,187
Stockholders’ deficit:
Series A-2 preferred stock, $0.001 par value per share – 43,649 Series A-2 shares authorized at December 31, 2023 and 21,388.01 Series A-2 Prime shares authorized at June 30, 2024; 43,649 Series A-2 shares outstanding at December 31, 2023 and 17,073.07 Series A-2 Prime shares outstanding at June 30, 2024			-					-
Preferred stock: $0.001 par value per share—9,926,161 and 9,904,773 shares authorized at December 31, 2023 and June 30, 2024, respectively; zero shares issued and outstanding at December 31, 2023 and June 30, 2024			-					-
Common stock, $0.001 par value per share – 200,000,000 shares authorized at December 31, 2023 and 400,000,000 shares authorized at June 30, 2024; 34,756,049 and 43,573,212 shares issued and outstanding at December 31, 2023 and June 30, 2024, respectively			35					43
Additional paid-in capital			60,697					60,760
Accumulated deficit			(64,541	)				(75,649	)
Total stockholders’ deficit			(3,809	)				(14,846	)
Total liabilities and stockholders’ deficit		$	14,191				$	44,701

Unicycive Therapeutics, Inc. Statements of Operations (In thousands, except for share and per share amounts) (Unaudited)
		Three Months Ended June 30,
		2023					2024
Operating expenses:
Research and development		$	2,267				$	4,868
General and administrative			2,055					2,533
Total operating expenses			4,322					7,401
Loss from operations			(4,322	)				(7,401	)
Other income (expenses):
Interest income			234					462
Interest expense			(32	)				(16	)
Change in fair value of warrant liability			282					16,810
Total other income (expenses)			484					17,256
Net income (loss)			(3,838	)				9,855
Deemed dividend to Series A-1 preferred stockholders			(603	)				-
Dividend to Series B-1 preferred stockholders			-					(887	)
Net income attributable to participating securities			-					(5,925	)
Net income (loss) attributable to common stockholders		$	(4,441	)			$	3,043
Net income (loss) per share attributable to common stockholders, basic		$	(0.29	)			$	0.08
Net loss per share attributable to common stockholders, diluted		$	(0.29	)			$	(0.15	)
Weighted-average shares outstanding used in computing net income (loss) per share, basic			15,234,570					37,914,812
Weighted-average shares outstanding used in computing net loss per share, diluted			15,234,570					94,052,853

FAQ

What were Unicycive's (UNCY) Q2 2024 financial results?

Unicycive reported R&D expenses of $4.9M, G&A expenses of $2.5M, and a net income of $3.0M for Q2 2024. The basic earnings per share was $0.08, while diluted loss per share was $0.15.

When does Unicycive (UNCY) plan to submit the OLC New Drug Application?

Unicycive is on track to submit the OLC New Drug Application (NDA) by the end of August 2024.

What were the key results from Unicycive's (UNCY) OLC pivotal trial?

The OLC pivotal trial showed positive topline data with 90% of patients achieving phosphate control. The study established promising tolerability with only 6% of patients discontinuing due to adverse events.

What is Unicycive's (UNCY) cash position as of June 30, 2024?

As of June 30, 2024, Unicycive reported a cash and cash equivalents balance of $41.8 million, which is expected to fund planned operations into 2026.

What new patent did Unicycive (UNCY) receive in July 2024?

In July 2024, Unicycive was granted a new patent by the USPTO for UNI-494 to treat acute kidney injury (AKI). The patent is valid until 2040.