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KalVista Pharmaceuticals Reports Fiscal First Quarter Results

CAMBRIDGE, Mass. & SALISBURY, England--(BUSINESS WIRE)--

– Phase 2 Clinical Trial of KVD900 for On-Demand Oral Treatment of Hereditary Angioedema (HAE) Attacks Expected to Complete in Late 2019 –

– KVD001 Phase 2 Clinical Trial for Patients with Diabetic Macular Edema (DME) Data Expected in Q4 2019 –

KalVista Pharmaceuticals, Inc. (KALV), a clinical stage pharmaceutical company focused on the discovery, development, and commercialization of small molecule protease inhibitors, today provided an operational update and released financial results for the fiscal first quarter ended July 31, 2019.

“With enrollment complete in our Phase 2 trial for KVD001, we expect data in the fourth quarter of 2019,” said Andrew Crockett, Chief Executive Officer of KalVista. “Our second ongoing Phase 2 trial, with KVD900 for on-demand treatment of hereditary angioedema attacks is currently enrolling, and we continue to expect to complete that trial late this year. On the research side, our team continues to work on our earlier stage programs including KVD824, for which we expect to announce further development plans in the first half of 2020.”

First Quarter and Recent Business Highlights:

  • Opened an Investigational New Drug (IND) Application for KVD900 with the U.S. Food and Drug Administration (FDA) to enable clinical development in the United States.

Fiscal First Quarter Financial Results:

  • Revenue: Revenue was $3.4 million for the three months ended July 31, 2019, compared to $3.7 million for the same period in 2018. Revenue in the three months ended July 31, 2019 consisted of the recognition of a portion of the upfront payment from Merck related to the agreement signed in October 2017.
  • R&D Expenses: Research and development expenses were $9.7 million for the three months ended July 31, 2019, compared to $8.4 million for the same period in 2018. The increase in R&D expense primarily reflects the ongoing clinical trial for KVD900 and an increase in preclinical activities. These increases in expense were somewhat offset by a decrease in expense related to KVD001 as it heads toward completion of a Phase 2 clinical trial later this year.
  • G&A Expenses: General and administrative expenses were $3.2 million for the three months ended July 31, 2019, compared to $2.4 million for the same period in 2018. The increase was primarily due to an increase in compensation related expenses and professional fees in the three months ended July 31, 2019 compared to those incurred in the same period in 2018.
  • Net Loss: Net loss was $7.3 million, or $(0.42) per basic and diluted share for the three months ended July 31, 2019, compared to a net loss of $5.0 million, or $(0.47) per basic and diluted share, for the same period in 2018.
  • Cash: Cash, cash equivalents and marketable securities were $100.4 million as of July 31, 2019.

About KalVista Pharmaceuticals, Inc.
KalVista Pharmaceuticals, Inc. is a pharmaceutical company focused on the discovery, development, and commercialization of small molecule protease inhibitors for diseases with significant unmet need. The initial focus is on inhibitors of plasma kallikrein, which is an important component of the body’s inflammatory response and which, in excess, can lead to increased vascular permeability, edema and inflammation. KalVista has developed a proprietary portfolio of novel, small molecule plasma kallikrein inhibitors initially targeting hereditary angioedema (HAE) and diabetic macular edema (DME). The Company has created a structurally diverse portfolio of oral plasma kallikrein inhibitors and is advancing multiple drug candidates for HAE as well as DME. The Company has selected KVD900 as its program to be advanced as an on-demand therapy for acute HAE attacks and commenced a Phase 2 proof-of-concept study in HAE patients in late 2018. In DME, KalVista’s most advanced program, an intravitreally administered plasma kallikrein inhibitor known as KVD001, began a Phase 2 clinical trial in 2017 that is anticipated to report data in the fourth quarter of 2019.

For more information, please visit www.kalvista.com.

Forward-Looking Statements
This press release contains "forward-looking" statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. Examples of forward-looking statements include, among others, available funding, our cash runway, potential future clinical trial timing and results. Further information on potential risk factors that could affect our business and its financial results are detailed in the annual report on Form 10-K filed on July 15, 2019 and other reports as filed from time to time with the Securities and Exchange Commission. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

KalVista Pharmaceuticals Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts)
(Unaudited)
   
  July 31, April 30,
 

2019

2019

Assets  
Current assets:  
Cash and cash equivalents  

$

30,107

 

$

32,006

 

Marketable securities  

 

70,259

 

 

68,805

 

Research and development tax credit receivable  

 

12,625

 

 

11,315

 

Prepaid expenses and other current assets  

 

2,728

 

 

3,420

 

Total current assets  

 

115,719

 

 

115,546

 

Right of use assets  

 

1,737

 

Property and equipment, net  

 

2,255

 

 

2,413

 

Other assets  

 

173

 

 

173

 

Total assets  

$

119,884

 

$

118,132

 

Liabilities and Stockholders' Equity  
Current liabilities:  
Accounts payable  

$

3,103

 

$

2,860

 

Accrued expenses  

 

4,261

 

 

5,647

 

Deferred revenue - current portion  

 

6,023

 

 

9,545

 

Lease liability - current portion  

 

580

 

 

 

Total current liabilities  

 

13,967

 

 

18,052

 

Long-term liabilities:  
Deferred revenue - net of current portion  

 

2,873

 

 

3,342

 

Lease liability - net of current portion  

 

1,177

 

Total long-term liabilities  

 

4,050

 

 

3,342

 

Stockholders’ equity:  
Common stock, $0.001 par value  

 

18

 

 

17

 

Additional paid-in capital  

 

203,650

 

 

191,123

 

Accumulated deficit  

 

(99,814

)

 

(92,476

)

Accumulated other comprehensive loss  

 

(1,987

)

 

(1,926

)

Total stockholders’ equity  

 

101,867

 

 

96,738

 

Total liabilities and stockholders' equity  

$

119,884

 

$

118,132

 

KalVista Pharmaceuticals Inc.
Condensed Consolidated Statement of Operations
(in thousands, except share and per share amounts)
(Unaudited)
   
   
  Three Months Ended
  July 31,
 

2019

2018

   
Revenue  

$

3,369

 

$

3,718

 

Operating expenses:  
Research and development  

 

9,686

 

 

8,356

 

General and administrative  

 

3,247

 

 

2,371

 

Total operating expenses  

 

12,933

 

 

10,727

 

Operating loss  

 

(9,564

)

 

(7,009

)

   
Other income:  
Interest income  

 

590

 

 

89

 

Foreign currency exchange rate gain (loss)  

 

(453

)

 

67

 

Other income  

 

2,089

 

 

1,823

 

Total other income  

 

2,226

 

 

1,979

 

Net loss  

$

(7,338

)

$

(5,030

)

   
Net loss per share, basic and diluted  

$

(0.42

)

$

(0.47

)

   
Weighted average common shares outstanding, basic and diluted  

 

17,488,997

 

 

10,799,895

 

KalVista Pharmaceuticals Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
   
  Three Months Ended
  July 31,
 

2019

 

2018

   
Cash Flows from Operating Activities  
Net loss  

$

(7,338

)

$

(5,030

)

Adjustments to reconcile net loss to net cash used in operating activities  
Depreciation and amortization  

 

121

 

 

50

 

Stock-based compensation expense  

 

1,074

 

 

347

 

Realized (gain) loss from available for sale securities  

 

(29

)

Amortization of right of use assets  

 

138

 

Amortization of discount/premium on available for sale securities  

 

35

 

Foreign currency remeasurement loss  

 

454

 

 

6

 

Changes in operating assets and liabilities:  
Research and development tax credit receivable  

 

(2,060

)

 

919

 

Prepaid expenses and other current assets  

 

561

 

 

(69

)

Other assets  
Accounts payable  

 

392

 

 

1,126

 

Accrued expenses  

 

(1,117

)

 

157

 

Lease obligations  

 

(137

)

Deferred revenue  

 

(3,369

)

 

(3,718

)

Net cash used in operating activities  

 

(11,275

)

 

(6,212

)

   
Cash Flows from Investing Activities  
Acquisition of property and equipment  

 

(98

)

 

(565

)

Purchases of available for sale securities  

 

(19,646

)

Sales and maturities of available for sale securities  

 

18,214

 

Net cash used in investing activities  

 

(1,530

)

 

(565

)

   
Cash Flows from Financing Activities  
Capital lease principal payments  

 

(54

)

 

(52

)

Proceeds from issuance of common stock from equity incentive plans  

 

32

 

Proceeds from issuance of common stock, net of $123 of offering expenses  

 

11,422

 

 

5,000

 

Net cash provided by financing activities  

 

11,400

 

 

4,948

 

Effect of exchange rate changes on cash and cash equivalents  

 

(494

)

 

(1,156

)

Net decrease in cash and cash equivalents  

 

(1,899

)

 

(2,985

)

Cash and cash equivalents, beginning of period  

 

32,006

 

 

51,055

 

Cash and cash equivalents, end of period  

$

30,107

 

$

48,070

 

 

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