Organization and Operations	3 Months Ended
Mar. 31, 2017
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 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 its 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 Company pays Cowen 3% of the gross proceeds from any Common Stock sold through the sales agreement. During the three months ended March 31, 2017, the Company sold an aggregate of 1,168,419 shares of Common Stock pursuant to the ATM program, at an average price of $1.95 per share, for gross proceeds of $2.3 million, resulting in net proceeds of $2.2 million after deducting sales commissions and offering expenses. On March 16, 2017, the Company reduced the amount of Common Stock that it was offering pursuant to the sales agreement, such that it was only offering $4.9 million of Common Stock from and after such date in addition to the $3.9 million of Common Stock it had sold under the ATM program as of that date. As of March 31, 2017, $4.9 million of Common Stock remained available for sale under the ATM program. As of March 31, 2017, the Company had an accumulated deficit of $151.9 million. The Company has been primarily involved with research and development activities and has incurred operating losses and negative cash flows from operations since its inception. 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 regulatory approval 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 adopted Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”) in connection with the issuance of its consolidated financial statements for the year ended December 31, 2016. The Company’s current operating plan, together with proceeds received from the issuance of common shares under the Company’s ATM program in April 2017 of $4.1 million, provides for cash to fund operations for at least one year from the date of this Quarterly Report on Form 10-Q. The Company will require substantial additional capital to fund operations. The Company has not generated any product revenues and has financed its operations primarily through public offerings and private placements of its equity securities. There can be no assurance that the Company will be able to obtain additional debt or equity financing or generate product revenue or revenues from collaborative partners, on terms acceptable to the Company, on a timely basis or at all. The failure of the Company to obtain sufficient funds on acceptable terms when needed could have a material adverse effect on the Company’s business, results of operations, and financial condition.

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 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 its 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 Company pays Cowen 3% of the gross proceeds from any Common Stock sold through the sales agreement.

During the three months ended March 31, 2017, the Company sold an aggregate of 1,168,419 shares of Common Stock pursuant to the ATM program, at an average price of $1.95 per share, for gross proceeds of $2.3 million, resulting in net proceeds of $2.2 million after deducting sales commissions and offering expenses. On March 16, 2017, the Company reduced the amount of Common Stock that it was offering pursuant to the sales agreement, such that it was only offering $4.9 million of Common Stock from and after such date in addition to the $3.9 million of Common Stock it had sold under the ATM program as of that date. As of March 31, 2017, $4.9 million of Common Stock remained available for sale under the ATM program.

As of March 31, 2017, the Company had an accumulated deficit of $151.9 million. The Company has been primarily involved with research and development activities and has incurred operating losses and negative cash flows from operations since its inception. 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 regulatory approval 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 adopted Accounting Standards Update (“ASU”) No. 2014-15, Presentation of Financial Statements—Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”) in connection with the issuance of its consolidated financial statements for the year ended December 31, 2016. The Company’s current operating plan, together with proceeds received from the issuance of common shares under the Company’s ATM program in April 2017 of $4.1 million, provides for cash to fund operations for at least one year from the date of this Quarterly Report on Form 10-Q.

The Company will require substantial additional capital to fund operations. The Company has not generated any product revenues and has financed its operations primarily through public offerings and private placements of its equity securities. There can be no assurance that the Company will be able to obtain additional debt or equity financing or generate product revenue or revenues from collaborative partners, on terms acceptable to the Company, on a timely basis or at all. The failure of the Company to obtain sufficient funds on acceptable terms when needed could have a material adverse effect on the Company’s business, results of operations, and financial condition.