EyePoint Pharmaceuticals Reports First Quarter 2020 Financial Results and Highlights Recent Corporate Developments
- Total revenues of
- Cash conservation and reorganization initiatives coupled with recent financings support cash runway into 2021 under current COVID-19 pandemic assumptions -
- GLP toxicology studies initiated for EYP-1901, a six-month sustained release anti-VEGF potential treatment for wet age-related macular degeneration -
- Management to host a conference call and webcast today at
“We are pleased with product revenue performance in the first quarter, despite the negative impact on customer demand caused by COVID-19 pandemic-related closures of customer facilities beginning in March. We are encouraged that certain regions across the country are now starting to reopen for business, allowing us to begin resupplying physicians and ambulatory surgery centers with our innovative products,” said
Commercial Performance in First Quarter 2020
- Customer demand trended strong for both products during the quarter prior to the emergence of the COVID-19 pandemic in the
U.S. causing demand deterioration beginning in March. - During the quarter, public health authorities and government agencies including the
Centers for Medicare & Medicaid Services (CMS), recommended the postponement of all non-essential elective surgeries, including cataract surgery, for an extended period of time during the COVID-19 pandemic. As a result, ambulatory surgery centers (ASCs) closed or limited operations, decreasing DEXYCU product demand and orders. Our sales organization has maintained contact with customers during the pandemic by providing virtual support and education with regard to DEXYCU. - Uveitis and retinal specialist office visits continued to be conducted for YUTIQ, though at reduced frequency, as chronic non-infectious uveitis affecting the posterior segment of the eye can lead to blindness if left untreated.
- There have been no disruptions to the supply chains for YUTIQ and DEXYCU and the Company continues to produce finished product for commercial sale.
- In April, the Company announced a reorganization of its commercial operations including cancellation or deferral of planned spending to conserve cash due to the COVID-19 pandemic impact on expected revenue. This reorganization was primarily focused on a reduction in the external contract sales organization for DEXYCU. The Company plans to allocate its remaining DEXYCU commercial resources to high-volume ASCs in key
U.S. regions. - The Company expects product demand to continue at current decreased levels until COVID-19 related restrictions on elective surgeries and office visits are lifted.
R&D Highlights
- In March, the Company initiated GLP toxicology studies for EYP-1901, an anti-VEGF, TKI six-month sustained release product candidate using our bioerodible Durasert technology. EYP-1901 is being developed as a potential treatment for wet age-related macular degeneration, with the potential for future indications in diabetic retinopathy and retinal vein occlusion, all of which are diseases representing attractive market opportunities in need of long-lasting treatments to improve treatment compliance. The Company expects to file an IND with the
U.S. Food and Drug Administration (FDA) in the fourth quarter of 2020 with a Phase 1 clinical trial to commence shortly thereafter.
Operations Update
- In April, the Company received a
$2 million loan through the Small Business Administration’s Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security Act of 2020 (the CARES Act). The PPP loan will enable the Company to retain key commercial infrastructure and employees and avoid furloughs as product demand and revenues remain significantly reduced due to ASC and physician office closures necessitated by the COVID-19 pandemic. The Company plans to use the proceeds of the PPP loan to cover payroll costs, rent and utilities in accordance with the CARES Act. - The reorganization announced in April is expected to result in annual savings of approximately
$7 million and one-time savings of approximately$10 million from other planned expenditure cancellations and deferrals.
Review of First Quarter Results Ended March 31, 2020
For the three months ended
Net revenue from royalties and collaborations for the three months ended
Operating expenses for the three months ended
Cash and cash equivalents at
Financial Outlook
We expect that the Company’s cash and cash equivalents combined with projected cash inflows from anticipated YUTIQ and DEXYCU product sales can fund the Company’s operating plan into 2021 under current assumptions for the duration of the COVID-19-related closures across the
The Company continues to assess additional cash conservation measures to support its operation through the COVID-19 pandemic.
Conference Call Information
EyePoint will host a conference call today, Wednesday, May 6, 2020, at 8:30 AM ET to discuss the results for the first quarter ended
About EyePoint Pharmaceuticals
SAFE HARBOR STATEMENTS UNDER THE PRIVATE SECURITIES LITIGATION ACT OF 1995: Various statements made in this release are forward-looking, and are inherently subject to risks, uncertainties and potentially inaccurate assumptions. All statements that address activities, events or developments that we intend, expect, plan or believe may occur in the future, including but not limited to statements about our expectations regarding the extent to which our business could be adversely impacted by the effects of the COVID-19 coronavirus pandemic, as well as the timing and clinical development of our product candidates, including EYP-1901; and the potential for EYP-1901 as a vital, novel six-month treatment for serious eye diseases, including wet age-related macular degeneration, diabetic retinopathy and retinal vein occlusion. Some of the factors that could cause actual results to differ materially from the anticipated results or other expectations expressed, anticipated or implied in our forward-looking statements are risks and uncertainties inherent in our business including, without limitation: the extent to which COVID-19 impacts our business; the effectiveness and timeliness of clinical trials, and the usefulness of the data; the timeliness of regulatory approvals; our ability to achieve profitable operations and access to needed capital; fluctuations in our operating results; our ability to successfully produce sufficient commercial quantities of YUTIQ and DEXYCU and to successfully commercialize YUTIQ and DEXYCU in the
Contacts
Investors:
212-600-1902
eyepoint@argotpartners.com
Media:
201-476-0322
tom@tomgibsoncommunications.com
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
| Three Months Ended | ||||||||
| 2020 | 2019 | |||||||
| Revenues: | ||||||||
| Product sales, net | $ | 4,687 | $ | 1,227 | ||||
| License and collaboration agreements | 2,020 | 65 | ||||||
| Royalty income | 782 | 720 | ||||||
| Total revenues | 7,489 | 2,012 | ||||||
| Operating expenses: | ||||||||
| Cost of sales, excluding amortization of acquired intangible | ||||||||
| assets | 980 | 330 | ||||||
| Research and development | 4,853 | 3,797 | ||||||
| Sales and marketing | 8,125 | 7,311 | ||||||
| General and administrative | 4,360 | 4,610 | ||||||
| Amortization of acquired intangible assets | 615 | 615 | ||||||
| Total operating expenses | 18,933 | 16,663 | ||||||
| Loss from operations | (11,444 | ) | (14,651 | ) | ||||
| Other income (expense): | ||||||||
| Interest and other income, net | 54 | 243 | ||||||
| Interest expense | (1,784 | ) | (1,020 | ) | ||||
| Loss on extinguishment of debt | — | (3,810 | ) | |||||
| Total other expense, net | (1,730 | ) | (4,587 | ) | ||||
| Net loss | $ | (13,174 | ) | $ | (19,238 | ) | ||
| Net loss per common share - basic and diluted | $ | (0.11 | ) | $ | (0.20 | ) | ||
| Weighted average common shares outstanding - basic and diluted | 115,530 | 95,452 | ||||||
EYEPOINT PHARMACEUTICALS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
| 2020 | 2019 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 26,299 | $ | 22,214 | ||||
| Accounts and other receivables, net | 14,390 | 11,368 | ||||||
| Prepaid expenses and other current assets | 5,647 | 5,997 | ||||||
| Inventory | 3,358 | 2,138 | ||||||
| Total current assets | 49,694 | 41,717 | ||||||
| Operating lease right-of-use assets | 2,967 | 3,078 | ||||||
| Intangible assets, net | 27,054 | 27,669 | ||||||
| Other assets | 575 | 507 | ||||||
| Total assets | $ | 80,290 | $ | 72,971 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 9,717 | $ | 11,024 | ||||
| Other current liabilities | 551 | 481 | ||||||
| Deferred revenue | 30 | 15 | ||||||
| Total current liabilities | 10,298 | 11,520 | ||||||
| Long-term debt | 47,716 | 47,223 | ||||||
| Operating lease liabilities - noncurrent portion | 2,764 | 2,898 | ||||||
| Other long-term liabilities | 3,038 | 3,000 | ||||||
| Total liabilities | 63,816 | 64,641 | ||||||
| Stockholders’ equity: | ||||||||
| Capital | 494,094 | 472,776 | ||||||
| Accumulated deficit | (478,460 | ) | (465,286 | ) | ||||
| Accumulated other comprehensive income | 840 | 840 | ||||||
| Total stockholders’ equity | 16,474 | 8,330 | ||||||
| Total liabilities and stockholders’ equity | $ | 80,290 | $ | 72,971 | ||||
Source: EyePoint Pharmaceuticals, Inc.
