Rexahn Pharmaceuticals, Inc. (NYSEMKT:RNN), a clinical stage biopharmaceutical company developing best-in-class therapeutics for the treatment of cancer, today announced financial results for the second quarter ended June 30, 2015 and provided a corporate and pipeline update.
“Our momentum in 2015 continued as we made important advances in our clinical development and pipeline programs,” said Peter Suzdak, Chief Executive Officer. “Each of these programs shares a unique feature — the ability to selectively target cancerous cells at the molecular level with the goal of improving efficacy and minimizing the toxicity associated with traditional, non-selective cancer therapy. We are very encouraged by the progress we continue to make and remain committed to advancing novel, next generation treatments that may bring meaningful quality of life improvements for cancer patients and their families.”
Second Quarter 2015 Corporate Highlights:
- Trials in Progress Posters Presented at the American Society of Clinical Oncology Annual Meeting: During the quarter, Rexahn scientists and their scientific collaborators presented ‘Trials in Progress’ poster presentations for the Company’s Supinoxin™, RX-3117, and Archexin® clinical development programs at the 2015 American Society of Clinical Oncology (ASCO) Annual Meeting in Chicago.
- Promising New Findings for RX-3117 Presented at Two Additional Scientific Meetings: Rexahn scientists, in collaboration with Dr. Godefridus J. Peters of the VU University Medical Center in Amsterdam, presented new preclinical data for RX-3117 at the 16th International Symposium of the Purine and Pyrimidine Society demonstrating its ability to potentially induce apoptotic cell death in a human non-small cell lung cancer (NSCLC) cell line. In addition, Dr. Peters presented data on RX-3117 at the 2015 American Association for Cancer Research (AACR) Annual Meeting showing a correlation between the enzymatic activity of UCK2, which is responsible for the activation of RX-3117, and RX-3117’s subsequent ability to inhibit the growth of various cancer cells in preclinical models. Both findings add to the growing body of promising preclinical data for this compound. RX-3117 possesses a unique mechanism of action that we believe exclusively targets cancer cells. Preclinical studies have demonstrated its anti-tumor activity against a broad spectrum of human cancer cell lines, including: pancreatic, lung, bladder, cervical and colon cancers, among other solid tumor types. Preclinical research has also shown that RX-3117 can block the growth of human cancer cells that are resistant to gemcitabine (Gemzar), which is the current standard of care treatment for certain cancers. Resistance to gemcitabine is a limitation in cancer therapy and represents an unmet need for novel, targeted cancer treatments such as RX-3117.
- New Preclinical Data Shows Supinoxin Decreases Migration of Human Triple Negative Breast Cancer Cells in a Metastatic Cancer Model: Frances Fuller-Pace Ph.D. from the Division of Cancer Research, University of Dundee, United Kingdom and Rexahn scientists presented preclinical data on Supinoxin at the 2015 AACR Annual Meeting. The data showed that Supinoxin dose-dependently decreased the migration of human triple negative breast cancer cells (MDA-MB-231) in a preclinical model of cancer cell metastasis. These encouraging preliminary findings suggest Supinoxin’s potential utility in treating difficult cancers, such as triple negative breast cancer, where metastatic disease is a common occurrence and is one of the main factors that impact prognosis.
- National Cancer Institute Selects Rexahn’s Novel Polymer Technology Platform for Preclinical Advancement: Following a rigorous internal scientific review, the National Cancer Institute’s (NCI) Nanotechnology Characterization Laboratory (NCL) selected Rexahn’s polymer-drug conjugate candidate, RX-21101, for inclusion in its preclinical characterization program. Under this program, the NCL will be responsible for conducting various IND-enabling studies with the goal of advancing RX-21101 towards human clinical trials. RX-21101 is a novel, polymer-conjugated form of the widely-used chemotherapeutic, docetaxel, and is designed to deliver docetaxel directly into tumor cells potentially increasing efficacy and minimizing the toxic effects of chemotherapy.
- Expanded Patent Portfolio for Novel CPMA Drug Delivery Program: In July, the Japanese Patent Office awarded a patent for Rexahn’s novel CPMA drug delivery platform technology, supplementing patent coverage already obtained in the United States for this program. CPMA is a promising new drug delivery technology which is designed to transport anti-cancer drugs directly into cancerous cells to enhance their cytotoxic activity.
- New Chairman Appointed: Rexahn Director and former Pfizer executive Peter Brandt was appointed Chairman of the Board of Directors, succeeding Dr. Chang Ahn, the Company’s scientific founder, who will remain on the Board as Chairman Emeritus. In addition, biotechnology executive Dr. Reza Mazhari joined the leadership team as Vice President of Translational Medicine.
Second Quarter 2015 Financial Results:
Cash Position – Rexahn’s cash and investments totaled approximately $26.0 million as of June 30, 2015, compared to approximately $32.7 million as of December 31, 2014. The decrease in cash and investments during the first six months of 2015 was primarily due to $8.4 million of cash used in operating activities, offset by approximately $1.7 million in proceeds received from the exercise of stock options and the sale of common stock. Rexahn expects that its cash and investments as of June 30, 2015 will be sufficient to fund the Company’s cash flow requirements for its current activities into the second half of 2016.
R&D Expenses – Research and development expenses were $3.2 million for the three months ended June 30, 2015, compared to $1.7 million for the three months ended June 30, 2014. Research and development expenses for the six month period ended June 30, 2015 were $6.1 million compared to $3.0 million for the same period in 2014. The increase in research and development expenses during both the three and six month periods of 2015 is primarily attributable to additional clinical trial and drug manufacturing costs related to ongoing Archexin®, Supinoxin™ and RX-3117 clinical studies, and partially attributable to an increase in personnel expenses.
G&A Expenses – General and administrative expenses for the three months ended June 30, 2015 were approximately $1.6 million, compared to $1.8 million for the three months ended June 30, 2014. General and administrative expenses for the six month period ended June 30, 2015 were $3.1 million compared to $3.3 million for the same period in 2014. The year over year decrease is primarily attributable to a decrease in professional fees, offset by an increase in personnel expenses. General and administrative expenses consist primarily of salaries and related expenses for executive, finance and other administrative personnel, recruitment expenses, professional fees, and other corporate expenses, including business development, investor relations, and general legal activities.
Net (Loss) Income – Rexahn’s loss from operations was $4.8 million and $3.5 million for the three months ended June 30, 2015 and 2014, respectively. Rexahn’s net loss was $3.2 million, or $0.02 per share, for the three months ended June 30, 2015, compared to a net income of $0.2 million, or $0.00 per share, for the three months ended June 30, 2014. For the six month period ending June 30, 2015, Rexahn’s net loss was $7.5 million, or $0.04 per share compared to $14.4 million or $0.08 per share for the same period in 2014. Included in the net (loss) income for the three months ended June 30, 2015 and 2014 is an unrealized gain on the fair value of warrants of $1.6 million and $3.7 million, respectively. For the six month period ended June 30, 2015 and 2014, Rexahn recorded an unrealized gain (loss) on the fair value of warrants of $1.7 million and $(8.0) million, respectively. The fair value adjustments are primarily a result of the changes in the stock price between reporting periods. (Original Source)
Shares of Rexahn Pharmaceuticals closed last Friday at $0.54. RNN has a 1-year high of $0.96 and a 1-year low of $0.50. The stock’s 50-day moving average is $0.59 and its 200-day moving average is $0.70.
On the ratings front, Roth Capital analyst Joseph Pantginis reiterated a Buy rating on RNN, with a price target of $3, in a report issued on May 11. The current price target represents a potential upside of 455.6% from where the stock is currently trading. According to TipRanks.com, Pantginis has a total average return of -0.3%, a 38.5% success rate, and is ranked #2865 out of 3728 analysts.
Rexahn Pharmaceuticals Inc is a clinical stage biopharmaceutical company dedicated to the discovery, development and commercialization of treatments for cancer and other medical needs.