Bay Street News

Entasis Therapeutics Reports Third Quarter 2018 Financial Results and Provides Business Update

Completed $75.0 million initial public offering in September

Reported positive Phase 2 topline results of lead program ETX2514SUL

On-track to initiate two Phase 3 clinical trials in 2019

WALTHAM, Mass., Nov. 14, 2018 (GLOBE NEWSWIRE) — Entasis Therapeutics (NASDAQ: ETTX), a clinical-stage biopharmaceutical company focused on the discovery and development of novel antibacterial products, announced financial results for the third quarter 2018 and provided a business update.

“2018 has been a very productive year thus far for Entasis,” commented Manos Perros, President and Chief Executive Officer of Entasis Therapeutics. “The completion of our IPO in September positions us well to advance our robust pipeline of novel, pathogen-targeted product candidates that are addressing some of the most critical antibiotic resistance issues and unmet medical needs. In August we were pleased to report positive topline data for our lead program, ETX2514SUL, our novel β-lactam/β-lactamase inhibitor combination product to treat MDR Acinetobacter infections. We look forward to the continued development of our pipeline of novel antibacterials and anticipate having two of our programs enter Phase 3 clinical trials in 2019.”

Third Quarter and Recent Business Highlights

Third Quarter Financial Results

Entasis reported a net loss of $8.5 million for the third quarter 2018 as compared to $8.3 million for the prior year period. The increase in net loss for the quarter was primarily related to increases in research and development expenses, as well as increases in general and administrative expenses primarily related to professional fees associated with the company’s preparation for its IPO. These increases are offset by an increase in grant income.

Research and development expenses were $8.1 million for the third quarter 2018 as compared to $7.2 million for the prior year period. The increase in research and development expenses was primarily driven by an increase in spending for preclinical and clinical development activities associated with the advancement of the Company’s pipeline.

General and administrative expenses were $2.1 million for the third quarter 2018 as compared to $1.3 million for the prior year period. The increase in general and administrative expenses was primarily due to an increase in consulting and professional fees related to the preparation of the Company’s financial statements as well as support for ongoing business operations, and the impact of stock-based compensation in 2018.

Grant income was $1.7 million for the third quarter 2018 as compared to $0.2 million for the prior year period. The increase in other income was primarily due to an increase in grant income associated with our grant agreement with the CARB-X program.

Entasis ended the quarter with $94.0 million in cash and cash equivalents compared to $55.1 million as of December 31, 2017. The increase was primarily the result of the completion of the Company’s IPO on September 28, 2018, from which the Company received aggregate net proceeds of approximately $67.0 million during the nine months ended September 30, 2018.     

About Entasis
Entasis Therapeutics is developing a portfolio of innovative product candidates to treat serious Gram-negative multi-drug resistant bacterial infections. Entasis’ anti-infective discovery platform has produced a pipeline of meaningfully differentiated programs which target serious bacterial infections, including ETX2514SUL (targeting Acinetobacter baumannii infections), zoliflodacin (targeting Neisseria gonorrhoeae), ETX0282CPDP (targeting Enterobacteriaceae infections), and non-β-lactam PBP inhibitors or NBPs (targeting Gram-negative infections). www.entasistx.com

Forward-Looking Statements
This press release includes certain disclosures which contain “forward-looking statements,” including, without limitation, statements regarding the progress, timing and results of the Company’s clinical trials, the association of data with treatment outcomes and the timing estimates of cash remaining to fund operations. Forward-looking statements are based on Entasis’ current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Factors that could cause actual results to differ include, but are not limited to, unexpected safety or efficacy data observed during preclinical or clinical trials, clinical trial site activation or enrollment rates that are lower than expected, changes in expected or existing competition, changes in the regulatory environment, failure of the Company’s collaborators to support or advance collaborations or product candidates and unexpected litigation or other disputes. Many of these factors are beyond Entasis’ control. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” in the final prospectus related to Entasis’ initial public offering filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and except as required by law, Entasis assumes no obligation to update any forward-looking statements contained herein to reflect any change in expectations, even as new information becomes available.

  Entasis Therapeutics Holdings Inc.  
  Consolidated Statements of Operations  
  (In Thousands, Except Share and Per Share Amounts)  
  (Unaudited)  
                               
                Three Months Ended September 30,   Nine Months Ended September 30,  
                  2018       2017       2018       2017    
                               
  Revenue             $   –      $   –      $   5,000     $   –     
  Operating expenses:                        
    Research and development             8,086         7,167         26,115         17,995    
    General and administrative             2,075         1,346         7,840         3,448    
    Total operating expenses             10,161         8,513         33,955         21,443    
  Loss from operations             (10,161 )       (8,513 )       (28,955 )       (21,443 )  
  Other income:                        
    Grant income             1,669         183         4,507         674    
    Interest income             19         6         47         18    
    Total other income             1,688         189         4,554         692    
  Loss before income taxes             (8,473 )       (8,324 )       (24,401 )       (20,751 )  
  Provision for income taxes             –          –          472         –     
  Net loss                 (8,473 )       (8,324 )       (24,873 )       (20,751 )  
  Dividends declared             (9,142 )       –          (9,142 )       –     
  Net loss attributable to common shareholders                  
    Basic and diluted   $   (17,615 )   $   (8,324 )   $   (34,015 )   $   (20,751 )  
  Net loss per share attributable to common shareholders                  
    Basic and diluted   $   (20 )   $   (5,107 )   $   (113 )   $   (25,183 )  
  Weighted average common shares outstanding                            
    Basic and diluted             866,641         1,630         300,435         824    
                               

 

  Entasis Therapeutics Holdings Inc.  
  Condensed Consolidated Balance Sheet Data  
  (In Thousands)  
  (Unaudited)  
                           
                    September 30,   December 31,  
                    2018   2017  
                           
  Cash and cash equivalents       $   94,021   $   55,101    
  Other assets         6,039     3,693    
  Total assets       $   100,060   $   58,794    
                           
  Total liabilities         9,577     9,871    
  Preferred stock             104,713    
  Total stockholders’ equity (deficit)         90,483     (55,790 )  
  Total liabilities and stockholders’ equity (deficit)     $   100,060   $   58,794    
                           

Company Contact
Kyle Dow
Entasis Therapeutics
(781) 810-0114
kyle.dow@entasistx.com

Investor Contact
Chris Brinzey
Westwicke Partners
(339) 970-2843
Chris.brinzey@westwicke.com

Media Contact
Kari Watson or Stefanie Tuck
MacDougall Biomedical Communications
(781) 235-3060
kwatson@macbiocom.com or stuck@macbiocom.com