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Mirna Therapeutics Reports Financial Results for the Fourth Quarter and Full Year Ended December 31, 2016

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Mirna Therapeutics, Inc. (NASDAQ:MIRN), a biopharmaceutical company,
today reported financial results for the fourth quarter and year ended
December 31, 2016 and provided a corporate update.

Following its November 2016 decision to discontinue all research and
development activities including the development of MRX34, Mirna began
implementing operating cost reductions and organizational restructuring
to reduce overall cash burn, including a reduction in its workforce. The
Company engaged a financial advisor and has been pursuing activities to
identify and evaluate strategic alternatives, including a possible
merger or sale of the Company.

"Our strategic process is active and ongoing and we are pursuing
discussions with third parties on a range of potential transactions,"
said President and CEO Paul Lammers, M.D., M.Sc. "We are committed to
serving our shareholders' best interests through our efforts to
identify, evaluate and potentially consummate a transaction that may
result from these activities."

2016 FINANCIAL RESULTS

  • Cash Position and Guidance: Cash, cash equivalents, and
    marketable securities totaled $60.5 million as of December 31, 2016,
    compared to $89.7 million as of December 31, 2015. The Company has no
    debt.

    The Company expects its quarterly cash burn rate to
    remain within the range of $2.1 million and $2.3 million. This
    quarterly guidance includes contractual commitments and obligations
    for future minimum lease payments, but excludes any one-time charges
    related to any strategic transaction should such be consummated and
    contractual payments for executive severance or change-in-control
    provisions.
  • Research and development expenses: Research and development
    expenses were approximately $2.3 million and $13.9 million for the
    quarter and year ended December 31, 2016 compared to research and
    development expenses of $6.4 million and $18.9 million during the
    comparable periods in 2015. The decrease was primarily due to the
    closing of the Company's Phase 1 clinical trial of MRX34 in September
    2016 and discontinuing all research and development activities.
  • General and administrative expenses: General and administrative
    expenses were approximately $2.0 million and $8.1 million for the
    quarter and year ended December 31, 2016, compared to general and
    administrative expenses of $2.5 million and $6.1 million during the
    comparable periods in 2015. The increase for the year ended December
    31, 2016 was primarily attributable to increased employee compensation
    expense due to a higher headcount and higher outside professional and
    consulting costs, the majority of which were incurred to comply with
    public company operating and reporting requirements in the Company's
    first full year operating as a public company.
  • Restructuring charges: Restructuring charges were approximately
    $4.4 million for the quarter and year ended December 31, 2016 and $0
    for the year ended December 31, 2015. In September 2016, Mirna
    announced its decision to close the ongoing Phase 1 study of MRX34 and
    voluntarily halted the enrollment and dosing of patients in the study
    prior to receiving notice from the U.S. Food and Drug Administration
    ("FDA") that its Investigational New Drug Application for MRX34 had
    been placed on full clinical hold. Following the Company's
    announcement and notification from the FDA, Mirna's Board of Directors
    approved a reduction of the total number of full-time employees from
    36 to 12. The restructuring charges recognized during the year ended
    December 31, 2016 included approximately $1.5 million for employee
    severance and benefits, an accounting charge under U.S. Generally
    Accepted Accounting Principles ("U.S. GAAP") of $1.5 million for lease
    facility termination costs, and $1.4 million for non-cash impairment
    charges of property and equipment. The majority of these employee
    severance and related benefits are expected to be settled in the first
    quarter of 2017. The Company expects to incur additional restructuring
    charges under U.S. GAAP of approximately $0.3 million through the six
    months ended June 30, 2017.
  • Net Loss: Net loss was approximately $8.7 million and $26.3
    million for the quarter and year ended December 31, 2016, compared to
    a net loss of $8.8 million and $25.0 million for the comparable
    periods in 2015. The results included non-cash, stock-based related
    compensation charges of $1.6 million and $1.0 million for the years
    ended December 31, 2016 and December 31, 2015, respectively.

About Mirna Therapeutics, Inc.

Mirna is a biopharmaceutical company that has been focused on the
development of microRNA-based oncology therapeutics. Mirna's first
product candidate, MRX34, the first microRNA mimic to enter clinical
development in oncology, was studied as a single agent in a multicenter
Phase 1 clinical trial. In September 2016, Mirna voluntarily halted
enrollment and dosing in the clinical study following multiple
immune-related serious adverse events (SAEs) observed in patients dosed
with MRX34 over the course of the trial. Subsequently, the U.S. Food and
Drug Administration (FDA) notified the Company that the Investigational
New Drug (IND) Application for MRX34 was placed on full clinical hold.
The Company is currently evaluating opportunities to enhance stockholder
value.

Forward-Looking Statements

To the extent that statements contained in this press release are not
descriptions of historical facts regarding Mirna, they are
forward-looking statements reflecting the current beliefs and
expectations of management made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995, including
statements regarding the evaluation of strategic alternatives with the
goal of enhancing stockholder value, our expectations regarding
projected restructuring charges, our expectations regarding the timing
of settlement of employee severance and related benefits and our
expectations regarding our quarterly cash burn rate. Such
forward-looking statements involve substantial risks and uncertainties
that could cause our future results, performance or achievements to
differ significantly from those expressed or implied by the
forward-looking statements. We undertake no obligation to update or
revise any forward-looking statements. For a further description of the
risks and uncertainties that could cause actual results to differ from
those expressed in these forward-looking statements, as well as risks
relating to our business in general, see our Annual Report on Form 10-K
filed with the U.S. Securities and Exchange Commission (SEC) on March
14, 2017.

   
Mirna Therapeutics, Inc.
Condensed Balance Sheets
(in thousands, except per share data)
 
December 31, December 31,
2016 2015
Assets
Current Assets:
Cash and cash equivalents $ 16,432 $ 89,713
Short-term marketable securities 44,066
Prepaid expenses and other current assets 882   829  
Total current assets 61,380 90,542
Property and equipment, net 354 375
Restricted cash 2,432    
Total assets $ 64,166   $ 90,917  
Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Accounts payable $ 361 $ 3,687
Accrued expenses 2,400   2,214  
Total current liabilities 2,761 5,901
Lease obligations, long-term 1,053    
Total liabilities 3,814   5,901  
 
Stockholders' Equity (Deficit):

Common stock, $0.001 par value; 250,000,000 shares authorized
at
December 31, 2016 and December 31, 2015; 20,841,393 and
20,830,555
shares issued and outstanding at December 31, 2016
and
December 31, 2015, respectively

21 21
Additional paid in capital 163,126 161,518
Accumulated deficit (102,791 ) (76,523 )
Accumulated other comprehensive loss (4 )  
Total stockholders' equity 60,352   85,016  
Total liabilities and stockholders' equity $ 64,166   $ 90,917  
 
       
Mirna Therapeutics, Inc.
Condensed Statement of Operations and Comprehensive Loss
(in thousands)
 

For the Quarter Ended
December 31,

 

For the Year Ended
December 31,

2016   2015   2016   2015
(unaudited) (unaudited)
Operating expenses:
Research and development $ 2,341 $ 6,363 $ 13,930 $ 18,947
General and administrative 1,999 2,462 8,118 6,080
Restructuring charges 4,442 4,442
Loss on disposal of assets     128    
Total operating expenses 8,782 8,825 26,618 25,027
Other income:
Interest income 88   36   350   44  
Net loss $ (8,694 ) $ (8,789 ) $ (26,268 ) $ (24,983 )
Less: Accretion and dividends on convertible preferred stock   (101 )   (4,320 )
Net loss attributable to common stockholders $ (8,694 ) $ (8,890 ) $ (26,268 ) $ (29,303 )
 

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