Press Release Details


Breadcrumb

Arena Reports First Quarter Financial Results with Strong Cash Position and Continued Progress on Pipeline Over the Quarter

May 5, 2021 at 4:05 PM EDT

– Liquidity position at $1.1 billion as of March 31, 2021 to support continued pipeline progress

SAN DIEGO--(BUSINESS WIRE)--May 5, 2021-- Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) today provided a corporate update and reported financial results for the first quarter ended March 31, 2021.

"Over the quarter, we continued progress across our pipeline – we announced our temanogrel program in microvascular obstruction, the ELEVATE UC 52 Phase 3 study for etrasimod was fully enrolled, and we initiated additional etrasimod Phase 2 studies for eosinophilic esophagitis (VOYAGE) and ulcerative colitis (GLADIATOR UC)," said Amit D. Munshi, President and CEO of Arena. "We also recently published our second annual Environmental, Social, Governance (ESG) report to share our progress and commitment to building long-term value. Overall, our pipeline continues on track and we look forward to providing more updates throughout the year."

Program & Business Updates

  • In April, during a late-breaking session at The American Academy of Dermatology Virtual Meeting, a sub-study from the Phase 2 ADVISE trial in atopic dermatitis that measured the impact of etrasimod on patient and clinician reported outcomes was presented
  • In April, Arena published an update to the Environmental, Social, Governance (ESG) Report, available on Arena’s website here
  • In March, Arena announced topline results of the Phase 2 CAPTIVATE trial investigating olorinab in pain associated with irritable bowel syndrome (IBS). While the program missed the primary endpoint, a prespecified subset of moderate to severe patients showed statistically significant and clinically meaningful reduction in pain.
  • In February, the first participant was dosed in the Phase 2b VOYAGE trial for etrasimod in eosinophilic esophagitis (EoE)
  • In February, Garry Neil was named Chair, Board of Directors, and Nawal Ouzren named to the Board of Directors
  • In January, etrasimod ELEVATE UC 52 Phase 3 trial in ulcerative colitis (UC) completed enrollment; both ELEVATE UC 52 and ELEVATE UC 12 Phase 3 trials on track for topline data in Q1 2022; we continue to monitor the impact of the COVID-19 resurgence on study progress for both UC 52 and UC 12
  • In January at the JP Morgan Health Care Conference, Arena announced plans to commence a Phase 2a study of temanogrel in coronary microvascular obstruction (cMVO)

Financial Update
First Quarter 2021 Financial Results

  • Revenues for the first quarter were nil compared to $0.3 million in the first quarter of 2020
  • Research and development (R&D) expenses for the first quarter totaled $102.5 million compared to $78.5 million in the same period 2020. This increase was primarily driven by our advancing clinical studies, including the etrasimod Phase 3 program, as well as an increase in personnel expenses as we staff to support our clinical programs. The R&D non-cash, share-based compensation was $8.2 million in the first quarter as compared to $6.6 million in the same period 2020
  • Selling, general and administrative (SG&A) expenses for the first quarter totaled $29.5 million, compared to $26.4 million in the first quarter of 2020. This increase was primarily driven by increased personnel expenses. The SG&A non-cash, share-based compensation was $8.8 million in the first quarter as compared to $8.6 million in the same period 2020
  • Net loss for the first quarter was $118.4 million compared to net loss of $100.2 million for the same period in 2020
  • Basic and diluted net loss per share for the first quarter was $1.98 compared to basic and diluted net loss per share of $2.00 for the same period in 2020
  • Cash, cash equivalents and marketable securities were $1.1 billion at March 31, 2021 and December 31, 2020

Conference Call & Webcast Information
Arena will host a live and webcast question and answer session via conference call with the investment community today, Wednesday, May 5, 2021, at 4:30 PM ET, to discuss the financial results and corporate update.

When: Wednesday, May 5, 2021, at 4:30 PM ET
Dial-in: (877) 643-7155 (United States) or (914) 495-8552 (International)
Conference ID: 4329177

Please join the conference call at least 20 minutes early to register. You can access the live webcast under the investor relations section of Arena’s website at: www.arenapharm.com. A replay of the event will be archived under the investor relations section of Arena’s website for 30 days shortly after the call.

About Arena Pharmaceuticals
ARENA Pharmaceuticals is a team with a singular purpose – deliver important medicines to patients.

In a rapidly changing global market, we work with a sense of urgency every day to understand the needs of all our stakeholders, identify bold, sometimes disruptive, ideas to get medicines to patients, and relentlessly execute until it’s done.

ARENA - Care More. Act Differently.

Etrasimod, olorinab, and temanogrel are investigational compounds that are not approved for any use in any country.

Forward-Looking Statements
Certain statements in this press release are forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements may be identified by words such as “look forward to,” “on track for,” “plans,” and “will,” and include, without limitation, statements about the following: Arena’s clinical programs, including expectations regarding study progress, the timing of data readouts for ongoing and anticipated trials, expectations regarding the commencement of additional studies, plans to provide updates on programs and trials, and other statements under “Program Updates” above. For such statements, Arena claims the protection of the Private Securities Litigation Reform Act of 1995. Actual events or results may differ materially from Arena’s expectations. Factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, the following: topline data may not accurately reflect the complete results of a particular study or trial; results of clinical trials and other studies are subject to different interpretations and may not be predictive of future results; clinical trials and other studies may not proceed at the time or in the manner expected or at all; the timing and outcome of research, development and regulatory review is uncertain, and Arena’s drug candidates may not advance in development or be approved for marketing; enrolling patients in Arena’s ongoing and intended clinical trials is competitive and challenging; the duration and severity of the coronavirus disease (COVID-19) pandemic, including but not limited to the impact on Arena’s clinical operations, the operations of Arena’s suppliers, partners, collaborators, licensees, and capital markets, which in each case remains uncertain; risks related to developing and commercializing drugs; Arena will need additional funds to advance all of its programs; the impact of competition; risks related to unexpected or unfavorable new data; the risk that regulatory agencies may interpret or weigh the importance of data differently and reach different conclusions than Arena or others, request additional information, have additional recommendations or change their guidance or requirements before or after approval; satisfactory resolution of litigation or other disagreements with others; and risks related to the enforcement of Arena’s and third parties’ intellectual property rights. Additional factors that could cause actual results to differ materially from those stated or implied by Arena’s forward-looking statements are disclosed in Arena’s filings with the Securities and Exchange Commission (SEC), including but not limited to Arena’s Annual Report on Form 10-K for the year ended December 31, 2020, which was filed with the SEC on February 23, 2021. These forward-looking statements represent Arena’s judgment as of the time of this release. Arena disclaims any intent or obligation to update these forward-looking statements, other than as may be required under applicable law.

Arena Pharmaceuticals, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)

 

Three Months Ended
March 31,

 

2021

 

 

2020

 

Revenues:

 

 

 

Royalty revenue

$

 

 

 

$

262

 

 

Total revenues

 

 

 

262

 

 

Operating Costs and Expenses:

 

 

 

Research and development

102,535

 

 

 

78,533

 

 

Selling, general and administrative

29,458

 

 

 

26,442

 

 

Total operating costs and expenses

131,993

 

 

 

104,975

 

 

Loss from operations

(131,993

)

 

 

(104,713

)

 

Interest and Other Income (Expense):

 

 

 

Interest income

690

 

 

 

4,946

 

 

Interest expense

(1,073

)

 

 

(1,163

)

 

Other income, net

90

 

 

 

723

 

 

Gain from Longboard equity method investment

13,869

 

 

 

 

 

Total interest and other income (expense), net

13,576

 

 

 

4,506

 

 

Net loss

$

(118,417

)

 

 

$

(100,207

)

 

 

 

 

 

Net loss per share, basic and diluted:

$

(1.98

)

 

 

$

(2.00

)

 

 

 

 

 

Shares used in calculating net loss per share, basic and diluted:

59,780

 

 

 

50,228

 

 


Arena Pharmaceuticals, Inc.
Condensed Consolidated Balance Sheet Data
(In thousands, except share data)
(Unaudited)

 

March 31,
2021

 

December 31,
2020

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

432,978

 

 

 

$

219,544

 

 

Short-term investments, available-for-sale

655,846

 

 

 

884,497

 

 

Prepaid expenses and other current assets

32,781

 

 

 

35,266

 

 

Total current assets

1,121,605

 

 

 

1,139,307

 

 

Land, property and equipment, net

21,129

 

 

 

22,090

 

 

Other non-current assets

41,202

 

 

 

29,323

 

 

Total assets

$

1,183,936

 

 

 

$

1,190,720

 

 

Liabilities and Stockholders' Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable and other accrued liabilities

$

21,980

 

 

 

$

35,351

 

 

Accrued clinical and preclinical study fees

20,969

 

 

 

18,325

 

 

Current portion of lease financing obligations

4,558

 

 

 

4,401

 

 

Total current liabilities

47,507

 

 

 

58,077

 

 

Other long-term liabilities

10,410

 

 

 

10,963

 

 

Lease financing obligations, less current portion

40,027

 

 

 

41,211

 

 

Commitments and contingencies

 

 

 

Stockholders' equity:

 

 

 

Preferred stock, $0.0001 par value, 7,500,000 shares authorized, no shares issued and outstanding at March 31, 2021 and December 31, 2020

 

 

 

 

 

Common stock, $0.0001 par value, 147,000,000 shares authorized at March 31, 2021 and December 31, 2020; 60,619,144 and 58,611,210 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively

6

 

 

 

6

 

 

Additional paid-in capital

2,711,930

 

 

 

2,587,494

 

 

Accumulated other comprehensive income

204

 

 

 

700

 

 

Accumulated deficit

(1,626,148

)

 

 

(1,507,731

)

 

Total stockholders' equity

1,085,992

 

 

 

1,080,469

 

 

Total liabilities and stockholders' equity

$

1,183,936

 

 

 

$

1,190,720

 

 

 

Patrick Malloy
Arena Pharmaceuticals, Inc.
Vice President, Investor Relations & Corporate Communications
pmalloy@arenapharm.com
847.987.4878

Source: ARENA Pharmaceuticals