Organization and Operations	9 Months Ended
Sep. 30, 2016
Organization and Operations
Organization and Operations	1.Organization and Operations The Company Catabasis Pharmaceuticals, Inc. (the “Company”) is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel therapeutics based on the Company’s proprietary Safely Metabolized And Rationally Targeted, or “SMART” linker drug discovery platform. The Company’s SMART linker technology platform enables the Company to engineer product candidates that can simultaneously modulate multiple targets in a disease. The Company’s proprietary product candidates impact pathways that are central to diseases where efficacy may be optimized by a multiple target approach. The Company’s primary focus is on treatments for rare diseases. The Company has applied its SMART linker drug discovery platform to build an internal pipeline of product candidates for rare diseases and plans to pursue partnerships to develop additional product candidates. The Company was incorporated in the State of Delaware on June 26, 2008. Liquidity In June 2015, the Company completed its initial public offering (the “IPO”). All of the shares issued and sold in the IPO were registered pursuant to a registration statement on Form S-1, as amended. An aggregate of 5,750,000 shares of the Company’s common stock (“Common Stock”) registered pursuant to the registration statement were sold at a price to the public of $12.00 per share (including 750,000 shares of Common Stock sold pursuant to the exercise of an overallotment option granted to the Company’s underwriters in connection with the IPO). Net proceeds of the IPO were $61.7 million, after deducting underwriting discounts, commissions and offering-related expenses payable by the Company of approximately $7.3 million. In connection with the IPO, all shares of the Company’s convertible preferred stock (“Preferred Stock”) were automatically converted into an aggregate of 9,029,549 shares of Common Stock and outstanding warrants to purchase 315,688 shares of Preferred Stock were automatically converted into warrants to purchase 24,566 shares of Common Stock. In August 2016, the Company entered into a sales agreement with Cowen and Company LLC (“Cowen”), pursuant to which the Company may issue and sell shares of Common Stock for an aggregate maximum offering amount of $10.0 million under an at-the-market (“ATM”) offering program. Cowen is not required to sell any specific amount, but acts as the Company’s sales agent using commercially reasonable efforts consistent with its normal trading and sales practices. Shares sold pursuant to the sales agreement have been sold pursuant to a shelf registration statement, which became effective on July 19, 2016 (the “Shelf Registration Statement”). The Company pays Cowen 3% of the gross proceeds from any Common Stock sold through the sales agreement. During the three months ended September 30, 2016, the Company sold an aggregate of 368,015 shares of Common Stock pursuant to the ATM program, at an average price of $4.35 per share, for gross proceeds of $1.6 million, resulting in net proceeds of $1.3 million after deducting sales commissions and offering expenses of approximately $0.3 million in the aggregate. On September 22, 2016, the Company reduced the amount of Common Stock that it was offering pursuant to the sales agreement, such that it was only offering $1.4 million of Common Stock in addition to the $1.6 million of Common Stock it had sold under the ATM program as of that date. As of September 30, 2016, $1.4 million of common stock remained available for sale under the ATM program. On November 10, 2016, the Company increased the amount of common stock being offered pursuant to the sales agreement, such that the Company is offering an additional $8.4 million of common stock for sale under the sales agreement from and after such date. In September 2016, the Company closed an underwritten registered direct offering, in which it sold 2,875,000 shares of Common Stock (including 375,000 shares of Common Stock sold pursuant to the exercise of an option by the underwriter to purchase additional shares) at an offering price of $4.00 per share. The shares sold in the offering were sold pursuant to the Shelf Registration Statement. The Company received aggregate gross proceeds from the offering of $11.5 million, resulting in net proceeds of $10.6 million after deducting underwriting discounts and commissions and offering expenses of approximately $0.9 million in the aggregate. The Company is subject to a number of risks similar to other life science companies, including, but not limited to, successful discovery and development of its drug candidates, raising additional capital, development by its competitors of new technological innovations, protection of proprietary technology and market acceptance of the Company’s products. The Company anticipates that it will continue to incur significant operating losses for the next several years as it continues to develop its product candidates. The Company has been primarily involved with research and development activities and has incurred operating losses and negative cash flows from operations since inception. As of September 30, 2016, the Company had an accumulated deficit of $135.3 million. The Company has relied on its ability to fund its operations through private and public equity and debt financings. As the Company continues to incur losses, transition to profitability is dependent upon the successful development, approval, and commercialization of its products and product candidates and the achievement of a level of revenues adequate to support its cost structure. The Company may never achieve profitability, and unless and until it does, the Company will continue to need to raise additional capital. However, the Company may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all. At September 30, 2016, the Company believes that it has cash, cash equivalents and available-for-sale investments to fund its current operating plan through at least September 30, 2017. For more information, refer to the section titled “Liquidity and Capital Resources” in Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations.

1.Organization and Operations

The Company

Catabasis Pharmaceuticals, Inc. (the “Company”) is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel therapeutics based on the Company’s proprietary Safely Metabolized And Rationally Targeted, or “SMART” linker drug discovery platform. The Company’s SMART linker technology platform enables the Company to engineer product candidates that can simultaneously modulate multiple targets in a disease. The Company’s proprietary product candidates impact pathways that are central to diseases where efficacy may be optimized by a multiple target approach. The Company’s primary focus is on treatments for rare diseases. The Company has applied its SMART linker drug discovery platform to build an internal pipeline of product candidates for rare diseases and plans to pursue partnerships to develop additional product candidates. The Company was incorporated in the State of Delaware on June 26, 2008.

Liquidity

In June 2015, the Company completed its initial public offering (the “IPO”). All of the shares issued and sold in the IPO were registered pursuant to a registration statement on Form S-1, as amended. An aggregate of 5,750,000 shares of the Company’s common stock (“Common Stock”) registered pursuant to the registration statement were sold at a price to the public of $12.00 per share (including 750,000 shares of Common Stock sold pursuant to the exercise of an overallotment option granted to the Company’s underwriters in connection with the IPO). Net proceeds of the IPO were $61.7 million, after deducting underwriting discounts, commissions and offering-related expenses payable by the Company of approximately $7.3 million. In connection with the IPO, all shares of the Company’s convertible preferred stock (“Preferred Stock”) were automatically converted into an aggregate of 9,029,549 shares of Common Stock and outstanding warrants to purchase 315,688 shares of Preferred Stock were automatically converted into warrants to purchase 24,566 shares of Common Stock.

In August 2016, the Company entered into a sales agreement with Cowen and Company LLC (“Cowen”), pursuant to which the Company may issue and sell shares of Common Stock for an aggregate maximum offering amount of $10.0 million under an at-the-market (“ATM”) offering program. Cowen is not required to sell any specific amount, but acts as the Company’s sales agent using commercially reasonable efforts consistent with its normal trading and sales practices. Shares sold pursuant to the sales agreement have been sold pursuant to a shelf registration statement, which became effective on July 19, 2016 (the “Shelf Registration Statement”). The Company pays Cowen 3% of the gross proceeds from any Common Stock sold through the sales agreement.

During the three months ended September 30, 2016, the Company sold an aggregate of 368,015 shares of Common Stock pursuant to the ATM program, at an average price of $4.35 per share, for gross proceeds of $1.6 million, resulting in net proceeds of $1.3 million after deducting sales commissions and offering expenses of approximately $0.3 million in the aggregate. On September 22, 2016, the Company reduced the amount of Common Stock that it was offering pursuant to the sales agreement, such that it was only offering $1.4 million of Common Stock in addition to the $1.6 million of Common Stock it had sold under the ATM program as of that date. As of September 30, 2016, $1.4 million of common stock remained available for sale under the ATM program. On November 10, 2016, the Company increased the amount of common stock being offered pursuant to the sales agreement, such that the Company is offering an additional $8.4 million of common stock for sale under the sales agreement from and after such date.

In September 2016, the Company closed an underwritten registered direct offering, in which it sold 2,875,000 shares of Common Stock (including 375,000 shares of Common Stock sold pursuant to the exercise of an option by the underwriter to purchase additional shares) at an offering price of $4.00 per share. The shares sold in the offering were sold pursuant to the Shelf Registration Statement. The Company received aggregate gross proceeds from the offering of $11.5 million, resulting in net proceeds of $10.6 million after deducting underwriting discounts and commissions and offering expenses of approximately $0.9 million in the aggregate.

The Company is subject to a number of risks similar to other life science companies, including, but not limited to, successful discovery and development of its drug candidates, raising additional capital, development by its competitors of new technological innovations, protection of proprietary technology and market acceptance of the Company’s products. The Company anticipates that it will continue to incur significant operating losses for the next several years as it continues to develop its product candidates.

The Company has been primarily involved with research and development activities and has incurred operating losses and negative cash flows from operations since inception.

As of September 30, 2016, the Company had an accumulated deficit of $135.3 million. The Company has relied on its ability to fund its operations through private and public equity and debt financings. As the Company continues to incur losses, transition to profitability is dependent upon the successful development, approval, and commercialization of its products and product candidates and the achievement of a level of revenues adequate to support its cost structure. The Company may never achieve profitability, and unless and until it does, the Company will continue to need to raise additional capital. However, the Company may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all.

At September 30, 2016, the Company believes that it has cash, cash equivalents and available-for-sale investments to fund its current operating plan through at least September 30, 2017. For more information, refer to the section titled “Liquidity and Capital Resources” in Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations.