Selected Third Quarter Financial Results
--
Research and Development (R&D) Expenses: R&D expenses for the third
quarter of 2024 were $8.3 million compared to $14.4 million for the same
period during 2023 due to decreased clinical trial costs,
personnel-related expenses, preclinical and research study expenses,
consulting and outside services, and other costs, partially offset by an
increase in chemistry manufacturing and controls activity.
--
General and Administrative (G&A) Expenses: G&A expenses for the third
quarter of 2024 were $3.5 million compared to $3.8 million for the same
period during 2023 due to a decrease in professional services.
--
Restructuring Charges: Restructuring charges for the third quarter of
2024 were $2.2 million due to severance payments and other employee
termination-related expenses, partially offset by a reduction in
stock-based compensation expense as a result of applying modification
accounting for consulting agreements entered into with certain terminated
employees.
--
Other Income, Net: Other income, net for the third quarter of 2024 was
$1.3 million compared to $1.5 million for the same period during 2023 due
to lower cash, cash equivalents and investment balances.
--
Net loss: Net loss for the third quarter of 2024 was $12.7 million,
compared to $16.7 million for the same period during 2023.
--
Cash Position: The Company had cash, cash equivalents, and investments
of $93.4 million at September 30, 2024. Company restructuring initiatives
resulted in a 50% reduction in expenditures, extending AN2's expected
cash runway through 2027.
About AN2 Therapeutics, Inc.
AN2 Therapeutics, Inc. is a biopharmaceutical company focused on discovering and developing novel small molecule therapeutics derived from its boron chemistry platform. AN2 has a pipeline of boron-based compounds in development for Chagas disease, NTM, and melioidosis, along with early-stage programs focused on targets in infectious diseases and oncology. For more information, please visit our website at www.an2therapeutics.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements expressed or implied in this press release include, but are not limited to, statements regarding: the potential of the Company's boron chemistry platform and early-stage pipeline programs; design, initiation and timing of the Company's clinical trials and results; anticipated inflection points and related timing; cash runway and cost savings related to restructuring; analysis and expectations regarding data analysis from the Phase 2/3 trial in treatment-refractory MAC lung disease, including the potential to re-initiate Phase 3 development; regulatory meetings and pathway and alignment with FDA guidance; future development of epetraborole for other forms of NTM; development of AN2-502998 for Chagas disease; development of epetraborole for melioidosis; development of compounds for infectious diseases and oncology targets; global health initiatives and non-dilutive funding; and other statements that are not historical fact. These statements are based on AN2's current estimates, expectations, plans, objectives and intentions, are not guarantees of future performance and inherently involve significant risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, but are not limited to, risks and uncertainties related to: future trials of epetraborole in NTM-MAC and the ability to show clinical efficacy consistent with PRO-based data observed in prospective and post-hoc analyses to date; potential disruptions related to AN2's ability to implement its plans for its internal boron chemistry platform and early-stage pipeline programs; timely enrollment of patients in AN2's existing and future clinical trials; AN2's ability to procure sufficient supply of its product candidates for its existing and future clinical trials; the potential for results from clinical trials to differ from preclinical, early clinical, preliminary or expected results; significant adverse events, toxicities or other undesirable side effects associated with AN2's product candidates; the significant uncertainty associated with AN2's product candidates ever receiving any regulatory approvals; continued funding by the National Institute of Allergy and Infectious Disease (NIAID) of AN2's development program for melioidosis; AN2's ability to obtain, maintain or protect intellectual property rights related to its current and future product candidates; implementation of AN2's strategic plans for its business and product candidates; the sufficiency of AN2's capital resources and need for additional capital to achieve its goals; global macroeconomic conditions and global conflicts and other risks, including those described under the heading "Risk Factors" in AN2's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, and AN2's other reports filed with the U.S. Securities and Exchange Commission $(SEC.UK)$. These filings, when made, are available on the investor relations section of AN2's website at www.an2therapeutics.com and on the SEC's website at www.sec.gov. Forward-looking statements contained in this press release are made as of this date, and AN2 undertakes no duty to update such information except as required under applicable law.
AN2 THERAPEUTICS, INC.
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except share and per share data)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------- ----------------------------
2024 2023 2024 2023
------------ ------------ ------------ --------------
Operating
expenses:
Research and
development $ 8,287 $ 14,429 $ 35,091 $ 39,952
General and
administrative 3,484 3,751 10,856 10,868
Restructuring
charge 2,243 -- 2,243 --
---------- ---------- ---------- ----------
Total
operating
expenses 14,014 18,180 48,190 50,820
---------- ---------- ---------- ----------
Loss from
operations (14,014) (18,180) (48,190) (50,820)
Other income, net 1,267 1,473 4,391 2,986
---------- ---------- ---------- ----------
Net loss
attributable to
common
stockholders $ (12,747) $ (16,707) $ (43,799) $ (47,834)
========== ========== ========== ==========
Net loss per share
attributable to
common
stockholders,
basic and
diluted $ (0.43) $ (0.65) $ (1.47) $ (2.22)
========== ========== ========== ==========
Weighted-average
number of shares
used in computing
net loss per
share, basic and
diluted 29,841,169 25,645,421 29,809,839 21,532,537
========== ========== ========== ==========
Other
comprehensive
loss:
Unrealized (loss)
gain on
investments 139 (3) (163) 252
---------- ---------- ---------- ----------
Comprehensive loss $ (12,608) $ (16,710) $ (43,962) $ (47,582)
========== ========== ========== ==========
AN2 THERAPEUTICS, INC.
CONDENSED BALANCE SHEETS
(in thousands)
September 30,
2024 December 31,
(unaudited) 2023
--------------- --------------
Assets
Current assets:
Cash and cash equivalents $ 33,504 $ 15,647
Short-term investments 59,922 91,648
Prepaid expenses and other current
assets 4,263 3,212
Long-term investments -- 27,194
Other assets, long-term -- 1,043
----------- ----------
Total assets $ 97,689 $ 138,744
=========== ==========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 1,711 $ 2,676
Other current liabilities 8,306 11,367
----------- ----------
Total liabilities 10,017 14,043
Stockholders' equity 87,672 124,701
----------- ----------
Total liabilities and
stockholders' equity $ 97,689 $ 138,744
=========== ==========
View source version on businesswire.com: https://www.businesswire.com/news/home/20241113258923/en/
CONTACT: Company Contacts:
Lucy O. Day
Chief Financial Officer
l.day@an2therapeutics.com
Anne Bowdidge
Investor Relations
abowdidge@an2therapeutics.com
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