Regulus has reported financial results for the six months ended June 30, 2017 and recent events.
"The successful completion of our recent public offering significantly strengthens our financial position through key clinical milestones of our lead programs, RG-012 and RGLS4326," said Jay Hagan, President and Chief Executive Officer of Regulus. "We remain on track to deliver data from the RG-012 renal biopsy study and file an IND for RGLS4326 by year-end."
Second Quarter Corporate Highlights and Recent Events
- Completed public offering of common stock: In July, Regulus issued 50,600,000 shares at $0.91 per share raising approximately $46.0 million in gross proceeds.
- Refocused pipeline programs: In June, Regulus announced a pipeline update that included the discontinuation of the RG-101 and RGLS5040 development programs.
- Streamlined operations: In May, Regulus announced a corporate restructuring plan to focus on its most promising discovery and development programs. The restructuring plan included a workforce reduction of approximately 30%, which was completed in June.
- Strengthened leadership team: During the second quarter, Jay Hagan was promoted to President and Chief Executive, Dan Chevallard was promoted to Chief Financial Officer, and Dr. Mark Deeg was promoted to Chief Medical Officer. In addition, Pascale Witz joined the Regulus board of directors.
Second Quarter Financial Results
Cash Position: As of June 30, 2017, Regulus had cash, cash equivalents and short-term investments of $40.1 million. In July 2017, Regulus completed an underwritten public offering of its common stock, and received net proceeds of approximately $43.0 million after deducting underwriting discounts, commissions and other estimated offering expenses.
Research and Development (R&D) Expenses: R&D expenses were $14.3 million and $30.0 million for the three and six months ended June 30, 2017, respectively, compared to $18.0 million and $34.8 million for the same periods in 2016. The decreases in R&D expenses were primarily driven by reductions in spend on the RG-101 program subsequent to the FDA clinical hold and non-cash stock-based compensation. These decreases were partially offset by non-recurring severance costs associated with our May 2017 corporate restructuring.
General and Administrative (G&A) Expenses: G&A expenses were $7.1 million and $11.0 million for the three and six months ended June 30, 2017, respectively, compared to $3.7 million and $8.8 million for the same periods in 2016. The increases in G&A expenses were attributable to non-recurring severance costs and non-cash stock-based compensation charges associated with our May 2017 corporate restructuring.
Revenue: Revenue was less than $0.1 million for each of the three and six months ended June 30, 2017, compared to $0.5 million and $1.0 million for the same periods in 2016.
Net Loss: Net loss was $21.6 million and $41.6 million for the three and six months ended June 30, 2017, respectively, compared to a net loss of $21.1 million and $42.3 million for the same periods in 2016. Basic and diluted net loss per share was $0.41 and $0.78 for the three and six months ended June 30, 2017, respectively, compared to $0.40 and $0.80 for the same periods in 2016.