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UNITY Biotechnology, Inc. Reports Third Quarter 2018 Financial Results

SAN FRANCISCO, Nov. 07, 2018 (GLOBE NEWSWIRE) -- UNITY Biotechnology, Inc. (“UNITY”) [NASDAQ:UBX], a biotechnology company developing therapeutics to extend healthspan by slowing, halting or reversing diseases of aging, today reported third quarter 2018 financial results.

"We finished the third quarter well-positioned to drive our clinical and pre-clinical senescence programs forward, while continuing to explore other mechanisms implicated in diseases of aging," said Keith Leonard, chairman and chief executive officer of UNITY. “Our Phase 1 clinical trial evaluating the safety and tolerability of UBX0101 in moderate to severe osteoarthritis of the knee is ongoing and on track to read out in the first quarter of next year.”

UNITY remains on schedule to file two additional Investigational New Drug (IND) applications in the second half of 2019. The most advanced pre-clinical candidates being evaluated for IND filings are targeted at ophthalmologic diseases.

Third Quarter Financial Results

Cash, cash equivalents and investments totaled $184.2 million as of September 30, 2018 compared with $92.2 million as of December 31, 2017.

Operating loss for the three months ended September 30, 2018 was $19.4 million compared with $12.1 million for the same period in 2017. The increase includes non-cash stock-based compensation expense of $2.2 million, non-cash contingent consideration of $0.6 million and depreciation expense of $0.1 million. Cash used for operations during the third quarter of 2018 was $13.9 million, which includes cash used for changes to our operating assets and liabilities of $1.1 million. 

Research and development expenses were $14.4 million during the third quarter of 2018 compared with $9.6 million for the third quarter of 2017. The increase was attributable to an increase in personnel-related expenses of $2.8 million, of which $1.4 million was related to non-cash stock-based compensation expense, $1.6 million for direct research and development activities and $0.3 million for facilities-related costs.

General and administrative expenses were $4.4 million during the third quarter of 2018 compared with $2.5 million for the third quarter of 2017. The increase was predominantly due to $1.5 million in personnel-related expenses, of which $0.7 million was related to non-cash stock-based compensation expense and $0.5 million increase in expenses related to operating as a public company.

The change in estimated fair value of contingent consideration expense of $0.6 million during the third quarter of 2018 relates to the value of shares potentially issuable under two commercial agreements.

About UNITY

UNITY is developing therapeutics to extend healthspan by slowing, halting or reversing diseases of aging. UNITY's initial focus is on creating senolytic medicines to selectively eliminate senescent cells and thereby treat age-related diseases, such as osteoarthritis, eye diseases and pulmonary diseases. More information is available at www.unitybiotechnology.com or follow us on Twitter.

Forward-Looking Statements

This press release contains forward-looking statements, including but not limited to statements related to the expected timing for the data read out from our Phase 1 clinical study of UBX0101 and the filing of our next two INDs and our potential to bring medicines to market to treat age-related diseases and extend human healthspan. Such forward-looking statements involve substantial risks and uncertainties that could cause UNITY’s research and clinical development programs, future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the uncertainties inherent in the drug discovery and development process, including UNITY’s early stage of development and our understanding of senescence biology and other fundamental biological processes associated with aging, the process of designing and conducting clinical trials, the regulatory approval processes, the timing of regulatory filings, the challenges associated with manufacturing drug products, UNITY’s ability to successfully protect and defend its intellectual property and other matters that could affect the sufficiency of existing cash to fund operations and the availability or commercial potential of UNITY’s product candidates. UNITY undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of the company in general, see UNITY’s recently filed Registration Statement on Form S-1 and any subsequent current and periodic reports filed with the Securities and Exchange Commission.

Unity Biotechnology, Inc.
Condensed Statements of Operations and Comprehensive Loss
(In thousands, except share and per share amounts)
(Unaudited)
                     
          Three Months Ended       Nine Months Ended  
          September 30,       September 30,  
          2018       2017        2018        2017  
Operating expenses:                                       
Research and development    $ 14,353       $ 9,599       $ 42,577       $ 25,782  
General and administrative      4,389         2,484         11,688         7,040  
Fair value of contingent consideration      635                 2,393          
Total operating expenses      19,377         12,083         56,658         32,822  
Operating loss      (19,377 )       (12,083 )       (56,658 )       (32,822 )
Interest income      1,068         348         2,246         734  
Other expense, net      (37 )       (15 )       (70 )       (25 )
Net loss      (18,346 )       (11,750 )       (54,482 )       (32,113 )
Other comprehensive loss                                       
Unrealized gain (loss) on marketable securities, net of tax      (42 )       16         (15 )       (4 )
Comprehensive loss    $ (18,388 )     $ (11,734 )     $ (54,497 )     $ (32,117 )
Net loss per share, basic and diluted    $ (0.45 )     $ (3.63 )     $ (2.29 )     $ (10.17 )
Weighted-average number of shares used in computing net loss per share, basic and diluted     41,057,861         3,236,760         23,762,450         3,157,505  


 
Unity Biotechnology, Inc.
Condensed Balance Sheets
(In thousands)
                   
        September 30,   December 31,  
        2018   2017  
        (Unaudited)         
Assets               
Current Assets:               
Cash and cash equivalents    $ 28,897   $ 7,298  
Contribution receivable          1,382  
Short-term marketable securities      148,917     79,212  
Prepaid expenses and other current assets      2,002     988  
Total current assets      179,816     88,880  
Property and equipment, net      6,345     6,958  
Long-term marketable securities      6,386     5,118  
Restricted cash      550     550  
Other long-term assets      1,624     518  
Total assets    $ 194,721   $ 102,024  
                   
Liabilities, convertible preferred stock, and stockholders' equity (deficit)               
Current liabilities:               
Accounts payable    $ 2,624   $ 2,378  
Accrued compensation      2,839     2,181  
Accrued and other current liabilities      4,618     3,338  
Contingent consideration liability, current portion      1,609      
Total current liabilities      11,690     7,897  
Deferred rent, net of current portion      2,667     3,166  
Contingent consideration liability, net of current portion      784      
Other non-current liabilities      64     118  
Total liabilities      15,205     11,181  
                   
Convertible preferred stock          173,956  
Stockholders' equity (deficit):               
Common stock      4     1  
Additional paid-in capital      321,594     4,072  
Related party promissory notes for purchase of common stock      (201 )   (202 )
Employee promissory notes for purchase of common stock      (400 )    
Accumulated other comprehensive loss      (119 )   (104 )
Accumulated deficit      (141,362 )   (86,880 )
Total stockholders' equity (deficit)      179,516     (83,113 )
Total liabilities, convertible preferred stock, and stockholders' equity (deficit)    $ 194,721   $ 102,024