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CymaBay Reports Fourth Quarter and Fiscal Year End 2018 Financial Results and Provides Corporate Update

Conference call and webcast today at 4:30p.m. ET

NEWARK, Calif., Feb. 28, 2019 (GLOBE NEWSWIRE) -- CymaBay Therapeutics, Inc. (CBAY) a clinical-stage biopharmaceutical company focused on developing therapies for liver and other chronic diseases with high unmet need, today announced financial results and a corporate update for the quarter and year ended December 31, 2018.

“The initiation of ENHANCE, our global, Phase 3 registration study of seladelpar in primary biliary cholangitis (PBC) at the end of 2018 was a major milestone for CymaBay,” said Sujal Shah, President and CEO of CymaBay. “ENHANCE was initiated on the strength of what we believe to be a very compelling and differentiated profile in Phase 2, which highlighted the potential for seladelpar to offer patients with PBC improved efficacy and better tolerability than existing second line treatment. Seladelpar has now been granted Breakthrough Therapy Designation for PBC by the FDA and PRIority MEdicine status by the EMA. In parallel, we are advancing clinical development of seladelpar in nonalcoholic steatohepatitis (NASH) and were excited earlier this month to announce the completion of enrollment in our Phase 2b study, one quarter ahead of schedule.  Seladelpar is the only highly selective and potent PPARδ agonist in development for liver disease, and we believe it may be particularly well suited to treat NASH. The ability of seladelpar to lower bile acids, cholesterol and lipotoxic lipids, coupled with anti-inflammatory and anti-fibrotic actions may position it as a foundational therapy for NASH.” 

Recent Business Highlights

  • In February 2019, the U.S. Food and Drug Administration (FDA) granted Breakthrough Therapy Designation for seladelpar for the treatment of early stage PBC in combination with ursodeoxycholic acid (UDCA) in adult patients with an inadequate response to UDCA, or as monotherapy in adults unable to tolerate UDCA. 
  • In February 2019, enrollment was completed in a Phase 2b dose-ranging, paired liver biopsy study of seladelpar for the treatment of nonalcoholic steatohepatitis (NASH).
    • A total of 181 patients enrolled with elevated liver fat and biopsy-confirmed NASH.
    • Topline data on the primary efficacy outcome, the change from baseline in liver fat content at 12 weeks as measured by magnetic resonance imaging using the proton density fat fraction method (MRI-PDFF), are expected 2Q 2019.

Fourth Quarter 2018 Highlights

  • Initiated ENHANCE, a global, Phase 3 registration study of seladelpar for the treatment of primary biliary cholangitis (PBC).
    • ENHANCE is being conducted in more than 150 centers in over 20 countries. The study is intended to establish the efficacy and safety of seladelpar for the treatment of PBC to support the submission of a global registration dossier with health authorities to obtain approval.
    • The study is expected to be fully enrolled by the end of 2019 with the 52-week treatment period targeted to be completed by the end of 2020. 
  • Positive data from an ongoing Phase 2 study of seladelpar in PBC were featured at late-breaking presentations during The Liver Meeting® 2018 hosted by the American Association for the Study of Liver Diseases.
    • Sustained anti-cholestatic and anti-inflammatory effects observed with no worsening of pruritus through 52 weeks.
    • Results highlight the potential for seladelpar to offer patients an efficacious and safe second line treatment option.
    • Results suggest that seladelpar is not associated with drug-induced pruritus and may support the hypothesis that seladelpar decreases pruritus in PBC patients.
  • Held $178.7 million in cash, cash equivalents and marketable securities at December 31, 2018.  Existing cash is expected to fund the current operating plan into 2021.

Fourth Quarter Ended December 31, 2018 Financial Results

  • There was no collaboration revenue in the fourth quarter of 2018 as compared to $5.2 million of revenue in the same period of 2017.   Fourth quarter 2017 revenue earned was primarily due to the achievement of a $5.0 million milestone under a collaboration agreement with Kowa Pharmaceuticals America, Inc.
  • Research and development expenses were $16.4 million in the fourth quarter of 2018 as compared to $6.7 million in the same period of 2017. The increase was primarily driven by increases in seladelpar-related clinical trial expenses from the expansion and extension of our PBC Phase 2 clinical study, start-up activities related to our ENHANCE PBC Phase 3 clinical study, the ongoing enrollment of our NASH Phase 2b clinical study, and the execution of other NDA-enabling studies.
  • General and administrative expenses were $4.2 million in the fourth quarter of 2018 as compared to $2.9 million in the same period of 2017. The increase was driven primarily by employee compensation expense as we hired additional personnel to support our expanding operations.
  • Net loss was $19.4 million, or ($0.32) per diluted share in the fourth quarter of 2018, as compared to $5.0 million, or ($0.11) per diluted share in the same period of 2017. Net loss was higher primarily due to increased research and development expenses and decreased revenues.

Year Ended December 31, 2018 Financial Results

  • There was no collaboration revenue for the year ended December 31, 2018 as compared to revenue of $10.0 million in the prior year. Collaboration revenue was recognized in 2017 upon the delivery of our performance obligation under a collaboration agreement with Kowa Pharmaceuticals America, Inc.
  • Research and development expenses were $58.1 million in the year ended December 31, 2018 as compared to $18.9 million in the same period of 2017.  The increase was primarily due to increased R&D project costs related to the expansion and extension of our PBC Phase 2 clinical study, start-up activities related to our ENHANCE PBC Phase 3 clinical study, enrollment in our NASH Phase 2b clinical study, and the execution of other NDA-enabling studies. R&D project costs also increased due to manufacturing of seladelpar to support ongoing and planned clinical trials and other development activities.  Internal R&D costs also increased, primarily due to higher employee compensation related expenses as additional clinical, scientific and regulatory personnel were hired to support expanding clinical development activities.
  • General and administrative expenses were $14.4 million in the year ended December 31, 2018, as compared to $12.4 million in the same period of 2017.  The increase was primarily due to higher compensation and consulting expenses, partially offset by a decrease in severance.
  • Net loss was $72.5 million, or ($1.26) per diluted share in the year ended December 31, 2018, as compared to $27.6 million, or ($0.79) per diluted share in the same period of 2017.

Conference Call Details
CymaBay management will host a conference call today at 4:30 p.m. ET to discuss fourth quarter 2018 financial results and provide a business update. To access the live conference call, please dial 877-407-0784 from the U.S. and Canada, or 201-689-8560 internationally, Conference ID# 13687140.  To access the live and subsequently archived webcast of the conference call, go to the Investors section of the company's website at http://ir.cymabay.com/events.

About CymaBay
CymaBay Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on developing therapies for liver and other chronic diseases with high unmet medical need. CymaBay’s lead development candidate, seladelpar, is a potent, selective and orally active PPARδ agonist currently in development for the treatment of patients with primary biliary cholangitis (PBC), an autoimmune liver disease, and with nonalcoholic steatohepatitis (NASH). Two Phase 2 studies of seladelpar established proof-of-concept in PBC. CymaBay is currently enrolling patients in a global, Phase 3 registration study of seladelpar for PBC. This study is a 52-week, placEbo-coNtrolled, randomized, pHAse 3 study to evaluate the safety aNd effiCacy of sEladelpar (ENHANCE) in patients with PBC. Seladelpar received orphan designation for PBC from the U.S. Food and Drug Administration (FDA) and the European Medicine Agency (EMA). Seladelpar also received Breakthrough Therapy Designation for PBC from the FDA and PRIority MEdicine status from the EMA. CymaBay is also conducting a Phase 2b proof-of-concept study of seladelpar for patients with NASH.

For additional information about CymaBay visit www.cymabay.com.

Cautionary Statements
The statements in this press release regarding the potential for seladelpar to treat PBC and NASH, the potential benefits to patients, the timing of the release of clinical results, CymaBay’s expectations and plans regarding current and future clinical trials and CymaBay’s ability to fund current and planned clinical trials are forward looking statements that are subject to risks and uncertainties. Actual results and the timing of events regarding the further development of seladelpar could differ materially from those anticipated in such forward-looking statements as a result of risks and uncertainties, which include, without limitation, risks related to: the success, cost and timing of any of CymaBay's product development activities, including clinical trials; effects observed in trials to date that may not be repeated in the future; any delays or inability to obtain or maintain regulatory approval of CymaBay's product candidates in the United States or worldwide; and the ability of CymaBay to obtain sufficient financing to complete development, regulatory approval and commercialization of its product candidates in the United States and worldwide. Additional risks relating to CymaBay are contained in CymaBay's filings with the Securities and Exchange Commission, including without limitation its most recent Annual Report on Form 10-K and other documents subsequently filed with or furnished to the Securities and Exchange Commission. CymaBay disclaims any obligation to update these forward-looking statements except as required by law.

For additional information about CymaBay visit www.cymabay.com.

Contact:              
Hans Vitzthum
LifeSci Advisors, LLC
212-915-2568
Hans@LifeSciAdvisors.com



CymaBay Therapeutics, Inc.
Financial Results
(In thousands, except share and per share information)
               
  Quarter Ended   Year Ended
  December 31,   December 31,
   2018     2017     2018     2017 
  (unaudited)   (unaudited)        
Collaboration revenue $ -     $ 5,207     $ -     $ 10,000  
               
Operating expenses:              
Research and development   16,397       6,669       58,124       18,938  
General and administrative   4,158       2,894       14,381       12,387  
Total operating expenses   20,555       9,563       72,505       31,325  
               
Loss from operations   (20,555 )     (4,356 )     (72,505 )     (21,325 )
Other income (expense):              
Interest income   1,106       324       3,988       621  
Interest expense   -       (234 )     (336 )     (1080 )
Loss from extinguishment of debt   -       -       (407 )     -  
Other (expense) income, net   -       (777 )     (3,288 )     (5,773 )
Total other income (expense)   1,106       (687 )     (43 )     (6,232 )
Net loss $ (19,449 )   $ (5,043 )   $ (72,548 )   $ (27,557 )
               
Basic net loss per common share $ (0.32 )   $ (0.11 )   $ (1.25 )   $ (0.79 )
Diluted net loss per common share $ (0.32 )   $ (0.11 )   $ (1.26 )   $ (0.79 )
               
Weighted average common shares outstanding used to calculate basic net loss per common share   59,448,000       43,970,598       57,808,254       34,903,960  
Weighted average common shares outstanding used to calculate diluted net loss per common share   59,448,000       43,970,598       57,838,299       34,903,960  
               




CymaBay Therapeutics, Inc.
Balance Sheet Data
(In thousands, except share and per share amounts)
       
  December 31,
    2018     2017
       
       
Cash, cash equivalents and marketable securities $   178,664   $   97,210
Working capital   167,147     87,234
Total assets   186,747     104,247
Facility loan       6,098
Warrant liability       6,091
Total liabilities   16,329     19,300
Common stock and additional paid-in capital   693,540     535,507
Total stockholders’ equity   170,418     84,947