SCYNEXIS Reports First Quarter 2024 Financial Results and Provides Corporate Update
- SCY-247's IND-enabling activities continue to progress, with initiation of Phase I anticipated in the second half of 2024
- Clinical study reports for the FURI, CARES and NATURE trials in refractory invasive fungal infections remain on track for delivery to GSK in mid 2024, which would trigger a $10 million development milestone payment to SCYNEXIS
- SCYNEXIS ended Q1 2024 with cash, cash equivalents and investments of $94.2 million and projects a cash runway of more than two years
JERSEY CITY, N.J., May 08, 2024 (GLOBE NEWSWIRE) -- SCYNEXIS, Inc. (NASDAQ:SCYX), a biotechnology company pioneering innovative medicines to overcome and prevent difficult-to-treat and drug-resistant infections, today reported financial results for the first quarter ended March 31, 2024.
"We continue to be impressed by the highly promising preclinical results of our next generation compound SCY-247," said David Angulo, M.D., President and Chief Executive Officer. "SCY-247 consistently demonstrates potent activity against a broad range of invasive fungal pathogens, including resistant species for whom there are few or no treatment options. We plan to begin a Phase I trial by year-end. In response to the hold on clinical studies of ibrexafungerp due to possible beta-lactam cross contamination, we have entered into certain new manufacturing agreements with third-party contract manufacturers to begin producing new batches of ibrexafungerp. We believe this new material will allow us to lift the clinical hold and restart the Phase 3 MARIO study evaluating ibrexafungerp in patients with invasive candidiasis."
SCY-247 Preclinical Development Program
- Phase I-enabling development activities for SCY-247, the second generation fungerp from SCYNEXIS' proprietary antifungal platform, continue to progress. A portion of these activities, including assessing SCY-247 efficacy against Candida auris and Mucorales, are being supported by National Institute of Health (NIH) grants. Phase I initiation is anticipated in the second half of 2024.
- Presented preclinical efficacy data on SCY-247 at the Congress of the European Society of Clinical Microbiology and Infectious Diseases (ESCMID Global, formerly ECCMID) in Barcelona, Spain from April 27-30, 2024. An oral presentation presented by Nathan Wiederhold, Ph.D. featured an in vivo study that demonstrated significant fungal burden reduction in the kidneys and lungs of mice with Candida glabrata invasive candidiasis treated with SCY-247. Additional poster presentations highlighted potent in vitro activity of SCY-247 on a broad range of susceptible and multidrug-resistant pathogenic fungi.
Ibrexafungerp Clinical and Regulatory Updates
- Final study reports from the completed FURI, CARES, NATURE, SCYNERGIA, and VANQUISH studies are anticipated to be delivered to partner GSK in mid 2024, delivery of the first three of which would trigger a $10 million development milestone payment to SCYNEXIS. Data analysis for the FURI study is ongoing, and top line data from the CARES study are positive and consistent with previously disclosed results from interim analyses.
First Quarter 2024 Financial Results
For the three months ended March 31, 2024, revenue consists of the $1.4 million in license agreement revenue associated with the license agreement with GSK. For the three months ended March 31, 2023, revenue consisted of $1.1 million product sales of BREXAFEMME.
Research and development expense for the quarter ended March 31, 2024 was $7.2 million compared to $6.8 million for the same period in 2023. The increase of $0.4 million, or 6%, for the three months ended March 31, 2024, was primarily driven by an increase of $1.6 million in chemistry, manufacturing, and controls (CMC) expense and a $0.3 million increase in preclinical expense, offset in part by a $0.8 million decrease in clinical expense and a decrease of $0.5 million in salaries primarily associated with medical affairs.
SG&A expense for the quarter ended March 31, 2024 decreased to $3.7 million from $4.8 million for the same period in 2023. The decrease of $1.2 million, or 24%, for the three months ended March 31, 2024, was primarily driven by a decrease of $0.8 million in professional fees and a decrease of $0.4 million in commercial expense due to the costs incurred in the prior comparable period associated with BREXAFEMME.
Total other income was $10.5 million for the quarter ended March 31, 2024, versus total other expense of $23.2 million for the same period in 2023. The variance is mainly due to the fair value adjustment related to the warrant liabilities. For the three months ended March 31, 2024 and 2023, we recognized a gain of $9.6 million and a loss of $21.7 million, respectively, on fair value adjustment for warrant liabilities primarily due to the decrease and increase in our stock price during the periods, respectively.
Net income for the quarter ended March 31, 2024, was $0.4 million, or $0.01 basic income per share, compared to a net loss of $33.9 million, or $0.71 basic loss per share for the same period in 2023.
Cash Balance
Cash, cash equivalents and investments totaled $94.2 million on March 31, 2024, compared to $98.0 million on December 31, 2023. Based upon the company's current operating plan, SCYNEXIS believes that its existing cash, cash equivalents and investments provide a cash runway beyond two years.
About Triterpenoid Antifungals
Triterpenoid antifungals (also known as "fungerps") are a novel class of structurally distinct glucan synthase inhibitors that combine the well-established activity of glucan synthase inhibitors with the potential flexibility of having oral and intravenous (IV) formulations. They have demonstrated broad-spectrum antifungal activity against multidrug-resistant pathogens, including azole- and echinocandin-resistant strains. Ibrexafungerp is the first representative of this novel class of antifungal agents. Ibrexafungerp, formerly known as SCY-078, is currently approved in the U.S. for the treatment of vulvovaginal candidiasis and is in late-stage of development for invasive candidiasis and other indications. SCY-247 is a next generation fungerp in pre-clinical development for the treatment of life-threatening and often multi-drug resistant fungal diseases including Candida auris infections.
About SCYNEXIS
SCYNEXIS, Inc. (NASDAQ:SCYX) is a biotechnology company pioneering innovative medicines to help millions of patients worldwide overcome and prevent difficult-to-treat infections that are becoming increasingly drug-resistant. SCYNEXIS is developing the company's proprietary antifungal platform "fungerps." Ibrexafungerp, the first representative of this novel class, has been licensed to GSK. The U.S. Food and Drug Administration (FDA) approved BREXAFEMME® (ibrexafungerp tablets) in June 2021, for its first indication in vulvovaginal candidiasis (VVC), followed by a second indication in November 2022, for reduction in the incidence of recurrent VVC. Late-stage clinical investigation of ibrexafungerp for the treatment of life-threatening invasive fungal infections in hospitalized patients is ongoing. Additional antifungal assets from this novel class are currently in pre-clinical and discovery phase, including the compound SCY-247. For more information, visit www.scynexis.com.
Forward-Looking Statements
Statements contained in this press release regarding expected future events or results are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding: SCYNEXIS's expectation that it will have a cash runway of more than two years; delivery of clinical study reports to GSK in the first half of 2024, anticipated initiation of Phase I clinical studies of SCY-247 in the second half of 2024; and the resumption of the MARIO study. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, risks inherent in regulatory and other costs in developing products. These and other risks are described more fully in SCYNEXIS' filings with the Securities and Exchange Commission, including without limitation, its most recent Annual Report on Form 10-K filed on March 28, 2024, and form 10-Q for the quarter ending March 31, 2024, including under the caption "Risk Factors." All forward-looking statements contained in this press release speak only as of the date on which they were made. SCYNEXIS undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
CONTACT:
Investor Relations
Irina Koffler
LifeSci Advisors
Tel: (646) 970-4681
[email protected]
| SCYNEXIS, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share data) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2024 | 2023 | |||||||
| Revenue: | ||||||||
| Product revenue, net | $ | — | $ | 1,130 | ||||
| License agreement revenue | 1,373 | — | ||||||
| Total revenue | 1,373 | 1,130 | ||||||
| Operating expenses: | ||||||||
| Cost of product revenue | — | 137 | ||||||
| Research and development | 7,212 | 6,835 | ||||||
| Selling, general and administrative | 3,669 | 4,840 | ||||||
| Total operating expenses | 10,881 | 11,812 | ||||||
| Loss from operations | (9,508 | ) | (10,682 | ) | ||||
| Other (income) expense: | ||||||||
| Amortization of debt issuance costs and discount | 401 | 255 | ||||||
| Interest income | (1,280 | ) | (587 | ) | ||||
| Interest expense | 205 | 1,447 | ||||||
| Warrant liabilities fair value adjustment | (9,608 | ) | 21,673 | |||||
| Derivative liabilities fair value adjustment | (168 | ) | 406 | |||||
| Total other (income) expense | (10,450 | ) | 23,194 | |||||
| Income (loss) before taxes | 942 | (33,876 | ) | |||||
| Income tax expense | (531 | ) | — | |||||
| Net income (loss) | $ | 411 | $ | (33,876 | ) | |||
| Net income (loss) per share attributable to common stockholders – basic | ||||||||
| Net income (loss) per share – basic | $ | 0.01 | $ | (0.71 | ) | |||
| Net income (loss) per share attributable to common stockholders – diluted | ||||||||
| Net income (loss) per share – diluted | $ | 0.01 | $ | (0.71 | ) | |||
| Weighted average common shares outstanding – basic and diluted | ||||||||
| Basic | 48,245,559 | 47,757,246 | ||||||
| Diluted | 48,565,051 | 47,757,246 | ||||||
| SCYNEXIS, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) | ||||||||
| March 31, 2024 | December 31, 2023 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 35,482 | $ | 34,050 | ||||
| Short-term investments | 44,762 | 40,312 | ||||||
| Prepaid expenses and other current assets | 1,583 | 5,548 | ||||||
| License agreement receivable | — | 2,463 | ||||||
| License agreement contract asset | 19,466 | 19,363 | ||||||
| Restricted cash | 380 | 380 | ||||||
| Total current assets | 101,673 | 102,116 | ||||||
| Investments | 13,943 | 23,594 | ||||||
| Deferred offering costs | 175 | 175 | ||||||
| Restricted cash | 163 | 163 | ||||||
| Operating lease right-of-use asset | 2,300 | 2,364 | ||||||
| Total assets | $ | 118,254 | $ | 128,412 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 8,918 | $ | 7,149 | ||||
| Accrued expenses | 4,601 | 7,495 | ||||||
| Deferred revenue, current portion | 1,083 | 1,189 | ||||||
| Operating lease liability, current portion | 356 | 340 | ||||||
| Warrant liabilities | — | 130 | ||||||
| Convertible debt and derivative liability | 12,391 | — | ||||||
| Total current liabilities | 27,349 | 16,303 | ||||||
| Deferred revenue | 2,111 | 2,727 | ||||||
| Warrant liabilities | 12,202 | 21,680 | ||||||
| Convertible debt and derivative liability | — | 12,159 | ||||||
| Operating lease liability | 2,487 | 2,581 | ||||||
| Total liabilities | 44,149 | 55,450 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Preferred stock, $0.001 par value, authorized 5,000,000 shares as of March 31, 2024 and December 31, 2023; 0 shares issued and outstanding as of March 31, 2024 and December 31, 2023 | — | — | ||||||
| Common stock, $0.001 par value, 150,000,000 shares authorized as of March 31, 2024 and December 31, 2023; 37,779,796 and 37,207,799 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively | 41 | 40 | ||||||
| Additional paid-in capital | 428,900 | 428,169 | ||||||
| Accumulated deficit | (354,836 | ) | (355,247 | ) | ||||
| Total stockholders' equity | 74,105 | 72,962 | ||||||
| Total liabilities and stockholders' equity | $ | 118,254 | $ | 128,412 | ||||
