LEXINGTON, Mass.--(BUSINESS WIRE)--Concert Pharmaceuticals, Inc. (NASDAQ: CNCE) today reported financial results for the first quarter of 2017.
“We expect to significantly strengthen our cash position in 2017 through the asset purchase agreement that we entered into with Vertex Pharmaceuticals for the sale of CTP-656 and other cystic fibrosis assets”
“We expect to significantly strengthen our cash position in 2017 through the asset purchase agreement that we entered into with Vertex Pharmaceuticals for the sale of CTP-656 and other cystic fibrosis assets,” said Roger Tung, Ph.D., President and Chief Executive Officer of Concert Pharmaceuticals. “Pending the closing of the Vertex transaction, we will be well positioned to advance our pipeline, including the clinical development of CTP-543. We believe CTP-543 has the potential to be the first oral treatment for alopecia areata, a disease for which there is currently no approved treatment. We are excited that our Phase 2a trial is now underway and we continue to expect topline data in the first quarter of 2018.”
Recent Business Highlights and Upcoming Milestones
- CTP-543 Phase 2a for Alopecia Areata. The Company advanced CTP-543 into a Phase 2a trial in patients with moderate-to-severe alopecia areata in May 2017. The double-blind, placebo-controlled, multi-center, dose ranging study will evaluate four doses of CTP-543 twice-daily versus placebo, in approximately 100 patients. Topline data from the primary outcome measure of the trial is expected in the first quarter of 2018. The primary outcome measure is the percentage of responders who regrow at least 50% of scalp hair lost due to alopecia areata, as measured by the Severity of Alopecia Tool (SALT), after 24 weeks of dosing. The trial will include an additional 28 weeks of dosing during which all patients enrolled in the study will receive CTP-543.
- CTP-656 Asset Purchase Agreement. On March 6, 2017, Concert announced that it entered into an asset purchase agreement worth up to $250 million with Vertex Pharmaceuticals, Inc., under which Vertex will acquire all rights to CTP-656 and other assets related to cystic fibrosis. The asset purchase agreement is subject to the approval of Concert’s shareholders and other closing conditions, including Hart-Scott-Rodino clearance. Concert’s annual meeting of stockholders will be held on May 24, 2017, at 9:00 a.m. and will include the authorization of the CTP-656 asset purchase agreement.
First Quarter 2017 Financial Results
- Cash and Investments Position: Cash, cash equivalents and investments as of March 31, 2017, totaled $83.9 million as compared to $96.2 million as of December 31, 2016. Concert expects its cash, cash equivalents and investments as of March 31, 2017 to be sufficient to fund the Company through the second quarter of 2018. Upon closing of the CTP-656 asset purchase agreement, pro forma cash is expected to be sufficient to fund the Company into 2021.
- Revenues: Revenue was $20,000 for the quarter ended March 31, 2017, compared to $56,000 for the same period in 2016. Revenue recognized in 2017 and 2016 is comprised of services performed by Concert in connection with its strategic collaborations with Celgene Corporation and Jazz Pharmaceuticals.
- R&D Expenses: Research and development expenses were $8.2 million for the quarter ended March 31, 2017, compared to $10.5 million for the same period in 2016. In both periods, research and development expenses were primarily associated with the development of CTP-656 and CTP-543.
- G&A Expenses: General and administrative expenses were $5.3 million for the quarter ended March 31, 2017, compared to $3.6 million for the same period in 2016. The increase in general and administrative expenses was primarily related to professional fees in connection with the CTP-656 asset purchase agreement.
- Net Loss: For the quarter ended March 31, 2017, net loss applicable to common stockholders was $13.3 million, or $0.60 per share, compared with a net loss applicable to common stockholders of $13.9 million, or $0.63 per share, for the quarter ended March 31, 2016.
Conference Call and Webcast
The Company will host a conference call and webcast today, Tuesday, May 2, 2017, at 8:30 a.m. EDT to provide an update on the Company and discuss first quarter financial results. To access the conference call, please dial (855) 354-1855 (U.S. and Canada) or (484) 365-2865 (International) five minutes prior to the start time.
A live webcast of Concert’s presentation may be accessed in the Investors section of the Company’s website at www.concertpharma.com. Please log on to the Concert website approximately 15 minutes prior to the scheduled webcast to ensure adequate time for any software downloads that may be required. A replay of the webcast will be available on Concert’s website for three months.
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