55.8 million dollars of cash and equivalents to June 30, 2022
Cessation of development of fezagepras Net loss from continuing operations of 6.5 million dollars during the completed quarter June 30, 2022 compared to 12.6 million dollars during the completed quarter June 30, 2021
LAVAL, QC i CAMBRIDGEEngland , August 9, 2022 /PRNewswire/ – Liminal BioSciences Inc. (Nasdaq: LMNL) (“Liminal BioSciences” or the “Company”) announced today its financial results for the second quarter ended June 30, 2022.
Liminal BioSciences will host a conference call and webcast to discuss financial results at 8:30 am (ET) on Wednesday, August 10, 2022. Telephone numbers to access the conference call are 888-390-0620 and 416-764-8651. An audio replay of the call will be available from Wednesday, August 10, 2022 at 11:30 am (ET). The numbers to access the audio playback are 416-764-8677 and 1-888-390-0541 with the following password (#617941). A live audio webcast of the conference will be available for by clicking here
“As advertised July 21, 2022we met our stated milestone of obtaining clear data from the Phase 1a single ascending dose clinical trial of fezagepras by the beginning of the third quarter of 2022,” he said. Bruce Pritchard, CEO of Liminal BioSciences. “The decision to discontinue development of fezagepras allows us to focus our resources on our current pipeline, including our preclinical GPR84 and OXER1 antagonist programs. We look forward to nominating our lead candidate for the company’s GPR84 antagonist program , which is expected to take place. in late 2022.”
Financial results for the second quarter of 2022
All figures presented in this section are in Canadian dollars.
Cash and cash equivalents were 55.8 million dollars at June 30, 2022 while our working capital, that is, current assets net of current liabilities, was $35.0 million. Research and development expenses were 3.9 million dollars for the two second quarters of 2022 and 2021, with increases in professional fees and preclinical expenses of 0.2 million dollars each, offsetting the decreases in intangible asset amortization expense of 0.4 million dollars. Administrative expenses were 4.6 million dollars for the second quarter of 2022 compared to 8.6 million dollars for the second quarter of 2021, which represents a decrease of 46%. The decrease in administrative expenses is mainly due to a decrease in 2.5 million dollars expense as a result of the reduction in the insurance premiums of the directors and managers as a result of the change of registered office of the Quebec Company to Ontario in the latter part of 2021, a reduction in share-based payment expense from 0.6 million dollars and in professional fees of 0.4 million dollars. The net loss from continuing operations, net of taxes was 6.5 million dollars for the second quarter of 2022 compared to 12.6 million dollars of the second quarter of 2021. The decrease in loss was mainly due to the reduction in administrative expenses of 3.9 million dollarswhich reflects the reduction in insurance spending, a decrease in financial costs of 0.8 million dollars due to the repayment of the Company’s long-term debt and an increase in foreign exchange gains from 1.3 million dollars. Total income (loss) from discontinued operations was income from 0.3 million dollars for the second quarter of 2022 compared to a loss of 19.5 million dollars in the second quarter of 2021. This decline was mainly due to the fact that the quarter ended June 30, 2021 include the results of operations of the plasma collection activities for approximately half of the quarter, through the time of sale, and those of the Ryplazim® activities for the entire quarter ended. June 30, 2021where during the term ended June 30, 2022, the income or loss from our discontinued operations was primarily affected by changes in the contract manufacturing and development organization, or CDMO, the lease liability and provisions, the remainder of the plasma-derived therapeutics segment, caused by increases in the inflation rate and variations in the discount rate. . These operating losses, which decreased in 30.5 million dollars in the second quarter of 2022 compared to the second quarter of 2021 were partially offset by a decrease in gains from the sale of discontinued operations, due to 10.7 million dollarsas we only had these operations in the second quarter of 2021. The net loss was 6.2 million dollars for the second quarter of 2022 compared to a loss of 32.1 million dollars for the second quarter of 2021.
Evolution after the quarter
In July 2022, we discontinued development of fezagepras, our small molecule product candidate. The decision to discontinue development of fezagepras was based on the results of the single ascending dose, or SAD, phase 1a clinical trial, which indicated that fezagepras was significantly inferior compared to sodium phenylbutyrate as a scavenger of nitrogen The Phase 1a SAD clinical trial of fezagepras was initiated in May 2022 was designed as a head-to-head comparison with sodium phenylbutyrate to provide us with more data to determine whether fezagepras was worth developing for one of the potential indications where nitrogen scavenging is beneficial. The recommendation to halt the fezagepras development program was not based on safety concerns.
In August 2022, we acquired for a nominal amount, 100% of the outstanding common and preferred stock of our subsidiary, Pathogen Removal Diagnostic Technologies Inc., or PRDT, resulting in the Company now having 100% control of PRDT . PRDT owns certain prion reduction technology, which is considered a non-core asset of the Company, and is the licensee of certain prion reduction technology. As a result of the acquisition of the non-controlling interest, or NCI, in PRDT, we will no longer present a balance corresponding to the NCI in our consolidated statement of financial position or consolidated statement of income, as of the date of the transaction
About Liminal BioSciences Inc.
Liminal BioSciences is an early-stage biopharmaceutical company focused on discovering and developing novel small molecule therapeutics for inflammatory, fibrotic and metabolic diseases through our drug discovery platform with a data-driven approach. The company is currently developing GPR84 antagonists and OXER1 antagonists. In addition to these programs, the company continues to explore other development opportunities to add to its portfolio.
Liminal BioSciences has active commercial operations in canada and the United Kingdom.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain forward-looking statements can be identified by the use of forward-looking words. Statements that are not historical in nature, including the words “anticipate,” “expect,” “suggest,” “plan,” “believe,” “attempt,” “estimate,” “target,” “project,” “should , ” “could,” “could,” “could,” “could,” “forecasts” and other similar expressions are intended to identify forward-looking statements. These statements include those related to Liminal BioSciences’ objectives, strategies and business that involve risks and uncertainties. Forward-looking information includes statements regarding, among other things: the advancement of Liminal Biosciences’ product candidates, including the timing of the designation of a lead product candidate for the company’s GPR84 antagonist program; the potential development of the company’s R&D programs; the timing or nature of preclinical and clinical trials and potential therapeutic areas; and our ability to generate value for our stockholders and reduce contract-related costs associated with the organization’s previous operations. These statements are “forward-looking” because they are based on our current expectations about the markets in which we operate and various estimates and assumptions. . Actual events or results may differ materially from those anticipated in these forward-looking statements if known or unknown risks affect our business, or if our estimates or assumptions prove inaccurate. Factors that could cause actual results to differ materially from those described or projected herein include, but are not limited to, risks associated with: the Company’s ability to successfully develop, manufacture and commercialize product candidates, if ever ; the impact of the COVID-19 pandemic on the Company’s workforce, business operations, clinical development, regulatory activities and financial and corporate impacts; the availability of funds and resources to carry out R&D projects, clinical development, manufacturing operations or commercialization activities; the successful and timely initiation or completion of preclinical and clinical trials; the ability to take advantage of financing opportunities or business opportunities in the pharmaceutical industry; the ability to resolve Nasdaq’s listing deficiency and regain compliance with Nasdaq’s listing rules; uncertainties generally associated with research and development, clinical trials and related regulatory reviews and approvals; and general changes in economic conditions. You will find a more detailed assessment of these risks, uncertainties and other risks that could cause actual events or results to differ materially from our current expectations in the company’s filings and reports with the US Securities and Exchange Commission and securities managers of Canada, included in the Annual Report on Form 20-F for the year ended December 31, 2021, as well as other documents and reports that Liminal Biosciences’ may make from time to time. These risks may be amplified by the ongoing COVID-19 pandemic and any related impact on Liminal BioSciences’ business and the global economy. As a result, we cannot guarantee that any forward-looking statements will materialize. Existing and potential investors are cautioned not to place undue reliance on these forward-looking statements and estimates, which speak only as of the date hereof. We undertake no obligation to update any forward-looking statements contained in this press release, whether as new information becomes available, as a result of future events or otherwise, except as required by applicable laws and regulations. applicable values.
SOURCE Liminal BioSciences Inc.