Exhibit 99.1
MIRATI THERAPEUTICS REPORTS THIRD QUARTER 2017
FINANCIAL RESULTS
SAN DIEGO - November 1, 2017 - Mirati Therapeutics, Inc. (NASDAQ: MRTX), a clinical stage oncology biotechnology company, reported financial results for the third quarter 2017.
“We are excited by the momentum we have created our programs, including sitravatinib as both a single agent and in combination with nivolumab (OPDIVO®) where we reported promising clinical data in non-small cell lung cancer patients at medical conferences in September and October,” said Charles M. Baum, M.D., Ph.D., President and Chief Executive Officer. “We remain on track to provide program updates on glesatinib, mocetinostat and KRAS by the end of the year.”
Third Quarter 2017 Financial Results
Cash, cash equivalents, and short-term investments were $75 million at September 30, 2017, compared to $56.7 million at December 31, 2016.
Research and development expenses for the third quarter of 2017 were $13.5 million, compared to $16.1 million for the same period in 2016. Research and development expenses for the nine months ended September 30, 2017 were $42.8 million, compared to $52.5 million for the same period in 2016. The decrease in research and development expenses for both the three and nine months ended September 30, 2017 is primarily due a decrease in third party research and development expense, including a reduction in glesatinib manufacturing expenses. In addition, share-based compensation expense decreased in the nine months ended September 30, 2017 compared to the same period of 2016 due to lower exercise prices for options granted during the last half of 2016 and most of 2017. These decreases in expenses are partially offset by increases in expenses associated with our ongoing sitravatinib Phase 1b clinical trial and early discovery costs.
General and administrative expenses for the third quarter of 2017 and 2016 were $3.1 million and $3.5 million, respectively. General and administrative expenses for the nine months ended September 30, 2017 were $10.5 million, compared to $11.4 million for the same period in 2016. The decrease in general and administrative expense is primarily due to a decrease in share-based compensation expense, which is due to lower exercise prices for options granted during the last half of 2016 and most of 2017.
Net loss for the third quarter of 2017 was $16.4 million, or $0.65 per share basic and diluted, compared to net loss of $19.4 million, or $0.97 per share basic and diluted for the same period in 2016. Net loss for the nine months ended September 30, 2017 was $52.5 million, or, $2.12 per share basic and diluted, compared to net loss of $63.4 million, or $3.21 per share basic and diluted for the same period in 2016.
About Mirati Therapeutics
Mirati Therapeutics is a clinical-stage biotechnology company focused on developing a pipeline of targeted oncology products intended to treat specific genetic and epigenetic drivers of cancer. This approach is transforming the treatment of patients by targeting the genetic changes in tumor cells that result in uncontrolled tumor growth and migration. Our precision oncology programs seek to treat the patients most likely to benefit from targeted oncology treatments and are driven by drugs that target very specific genetic mutations, directed by genomic tests that identify patients who carry those driver mutations. Our immuno-oncology programs are novel small molecule drugs designed to enhance and expand the efficacy of checkpoint inhibitors when given in combination. In addition to our clinical programs, we have active discovery research efforts focused on novel oncology targets. The promise of these approaches includes potentially better patient outcomes, more efficient cancer treatment and faster drug development. For more information, visit www.mirati.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements in this press release regarding the business of the Company that are not historical facts may be considered "forward-looking statements," including, but not limited to, statements regarding Mirati’s development plans and timelines, potential regulatory actions, expected use of cash resources, the timing and results of clinical trials, and the potential benefits of and markets for Mirati’s product candidates. Forward-looking statements are typically, but not always, identified by the use of words such as "may," "would," "believe," "intend," "plan," "anticipate," "estimate," “expect,” and other similar terminology. Forward-looking statements are based on current expectations of management and upon what management believes to be reasonable assumptions based on information currently available to it, and are subject to risks and uncertainties. Such risks and uncertainties may cause actual results to differ materially from the expectations set forth in the forward-looking statements. Such risks and uncertainties include, but are not limited to, potential delays in development timelines or negative clinical trial results, reliance on third parties for development efforts, changes in the competitive landscape, changes in the standard of care, as well as other risks detailed in Mirati’s recent filings on Forms 10-K and 10-Q with the United States Securities and Exchange Commission. Mirati undertakes no obligation to update any forward-looking statements to reflect new information, events or circumstances, or to reflect the occurrence of unanticipated events.
Contact:
Temre Johnson
Mirati Therapeutics Inc.
Senior Manager, Investor Relations & Corporate Communications
(858) 332-3562
ir@mirati.com
Mirati Therapeutics, Inc.
Consolidated Balance Sheets
(in thousands)
June 30, | December 31, | |||||||
2017 | 2016 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash, cash equivalents and short-term investments | $ | 74,962 | $ | 56,734 | ||||
Other current assets | 4,439 | 2,821 | ||||||
Total current assets | 79,401 | 59,555 | ||||||
Property and equipment, net | 571 | 629 | ||||||
Other long-term assets | 2,089 | 3,260 | ||||||
Total assets | $ | 82,061 | $ | 63,444 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued liabilities | $ | 13,580 | $ | 15,002 | ||||
Total current liabilities | 13,580 | 15,002 | ||||||
Other liabilities | 329 | 133 | ||||||
Total liabilities | 13,909 | 15,135 | ||||||
Stockholders' equity | 68,152 | 48,309 | ||||||
Total liabilities and stockholders' equity | $ | 82,061 | $ | 63,444 | ||||
Mirati Therapeutics, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(in thousands except share and per share data, unaudited)
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Expenses | ||||||||||||||||
Research and development | $ | 13,482 | $ | 16,106 | $ | 42,841 | $ | 52,535 | ||||||||
General and administrative | 3,119 | 3,475 | 10,467 | 11,391 | ||||||||||||
Total operating expenses | 16,601 | 19,581 | 53,308 | 63,926 | ||||||||||||
Loss from operations | (16,601 | ) | (19,581 | ) | (53,308 | ) | (63,926 | ) | ||||||||
Other income, net | 251 | 160 | 773 | 530 | ||||||||||||
Net loss | $ | (16,350 | ) | $ | (19,421 | ) | $ | (52,535 | ) | $ | (63,396 | ) | ||||
Unrealized gain (loss) on available-for-sale investments | 13 | (34 | ) | (19 | ) | 26 | ||||||||||
Comprehensive loss | $ | (16,337 | ) | $ | (19,455 | ) | $ | (52,554 | ) | (63,370 | ) | |||||
Basic and diluted net loss per share | $ | (0.65 | ) | $ | (0.97 | ) | $ | (2.12 | ) | $ | (3.21 | ) | ||||
Weighted average number of shares used in computing net loss per share, basic and diluted | 24,970,905 | 19,924,005 | 24,770,436 | 19,739,935 | ||||||||||||