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Mirna Therapeutics Reports First Quarter 2017 Financial Results

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Mirna Therapeutics, Inc. (NASDAQ:MIRN), a biopharmaceutical company,
today reported financial results for the first quarter of 2017 and
provided a corporate update.

Following its late 2016 discontinuation of all research and development
activities, the Company engaged a financial advisor and has been
pursuing activities to evaluate strategic alternatives, including a
possible merger or sale of the Company. Further operating cost and
workforce reductions were also implemented to reduce overall cash burn.

"We are committed to serving our shareholders' best interests and are
continuing our strategic discussions with third parties in an effort to
consummate a transaction," said President and CEO Paul Lammers, M.D.,
M.Sc.

FIRST QUARTER 2017 FINANCIAL RESULTS

  • Cash Position and Guidance: Cash, cash equivalents, and
    marketable securities totaled $57.5 million as of March 31, 2017,
    compared to $60.5 million as of December 31, 2016. The Company has no
    debt.

    The Company expects its quarterly cash burn rate to
    range from $1.5 million to $2.0 million. This quarterly guidance
    includes contractual commitments and obligations, but excludes any
    one-time charges related to any strategic transaction should such be
    consummated, and contractual payments for executive severance and
    change-in-control provisions.
  • Research and development expenses: Research and development
    expenses were approximately $0.2 million for the three months
    ended March 31, 2017, compared to research and development expenses of
    $4.5 million during the comparable period in 2016. The decrease was
    primarily due to the discontinuation of the Company's research and
    development activities, including the development of MRX34 and our
    microRNA pipeline, and a corresponding reduction in force, both of
    which were initiated in November 2016.
  • General and administrative expenses: General and administrative
    expenses were approximately $2.3 million for the three months ended
    March 31, 2017, compared to general and administrative expenses of
    $2.1 million during the comparable period in 2016. The increase for
    the three months ended March 31, 2017 was primarily due to
    approximately $0.5 million in legal fees for transaction costs related
    to the Company's evaluation of strategic alternatives. This increase
    was largely offset by a decline in personnel and operating expenses
    following the reduction in force initiated in November 2016 to reduce
    costs and streamline operations while the Company evaluates strategic
    alternatives.
  • Restructuring charges: Restructuring charges were approximately
    $2.6 million for the three months ended March 31, 2017, and $0 for the
    three months ended March 31, 2016. The Company and its landlord agreed
    to terminate the Company's lease of approximately 23,578 square feet
    of office and laboratory space for consideration of $3.8 million. As a
    result of the contingent settlement, the Company recognized
    incremental contract termination costs based on the contractual
    settlement amount of approximately $2.3 million, which were recorded
    in restructuring charges during the three months ended March 31, 2017.
  • Net Loss: Net loss was approximately $5.0 million for the three
    months ended March 31, 2017, compared to a net loss of $6.6 million
    for the comparable period in 2016. The results included non-cash,
    stock-based related compensation charges of $364,000 and $447,000 for
    the three months ended March 31, 2017 and March 31, 2016, 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 has since closed the IND and is currently evaluating
strategic alternatives, including the possibility of a merger or sale of
the Company.

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 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 Quarterly Report on Form
10-Q filed with the U.S. Securities and Exchange Commission (SEC) on May
9, 2017.

 

Mirna Therapeutics, Inc.
Condensed Balance Sheets
(in
thousands, except share data)

 
  March 31,   December 31,
2017 2016
Assets (unaudited)
Current Assets:
Cash and cash equivalents $ 17,121 $ 16,432
Short-term marketable securities 40,408 44,066
Prepaid expenses and other current assets 620   882  
Total current assets 58,149 61,380
Property and equipment, net 26 354
Restricted cash 2,433   2,432  
Total assets $ 60,608   $ 64,166  
Liabilities and Stockholders' Equity (Deficit)
Current Liabilities:
Accounts payable $ 371 $ 361
Accrued expenses 4,486   2,400  
Total current liabilities 4,857 2,761
Lease obligations, long-term   1,053  
Total liabilities 4,857   3,814  
 
Stockholders' Equity (Deficit):

Common stock, $0.001 par value; 250,000,000 shares authorized
at
March 31, 2017 and December 31, 2016; 20,856,693 and
20,841,393
shares issued and outstanding at March 31, 2017 and
December
31, 2016, respectively

21 21
Additional paid in capital 163,518 163,126
Accumulated deficit (107,771 ) (102,791 )
Other comprehensive loss (17 ) (4 )
Total stockholders' equity 55,751   60,352  
Total liabilities and stockholders' equity $ 60,608   $ 64,166  
 
 

Mirna Therapeutics, Inc.
Condensed Statement of
Operations and Comprehensive Loss (unaudited)

(in
thousands)

 
     

Three Months Ended
March 31,

2017   2016
Operating expenses:
Research and development $ 242 $ 4,523
General and administrative 2,264 2,130
Restructuring charges 2,557    
Total operating expenses 5,063 6,653
Other income:
Interest income 86   82  
Net loss attributable to common stockholders $ (4,977 ) $ (6,571 )
 

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