UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 7, 2018
Aquinox Pharmaceuticals, Inc.
(Exact name of Registrant as specified in its charter)
Delaware | 001-36327 | 98-0542593 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
450 - 887 Great Northern Way,
Vancouver, B.C.
Canada, V5T 4T5
(Address of principal executive offices, including zip code)
Registrants telephone number, including area code: (604) 629-9223
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒
Item 2.02 Results of Operations and Financial Condition
On November 7, 2018, Aquinox Pharmaceuticals, Inc. (the Company) issued a press release announcing financial results for the quarter ended September 30, 2018. The full text of the press release announcing such results is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in this current report on Form 8-K and the press release attached as Exhibit 99.1 hereto is being furnished, but shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (Exchange Act), and is not incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Number |
Description | |
99.1 | Press Release of Aquinox Pharmaceuticals, Inc. dated November 7, 2018 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Aquinox Pharmaceuticals, Inc. | ||
By: | /s/ Kamran Alam | |
Name: | Kamran Alam | |
Title: | Chief Financial Officer |
Date: November 7, 2018
Exhibit 99.1
For Immediate Release |
Aquinox Pharmaceuticals Announces Third Quarter 2018
Financial Results
VANCOUVER, British Columbia, November 7, 2018 Aquinox Pharmaceuticals, Inc. (Aquinox) (NASDAQ:AQXP), a pharmaceutical company discovering and developing novel drug candidates to treat inflammation, inflammatory pain, and blood cancers, today provided a corporate update and reported financial results for the third quarter ending September 30, 2018.
We ended the third quarter with $86.7 million in cash and cash equivalents and have taken additional steps to reduce expenditures, including further reductions planned in the fourth quarter, to optimize our cash reserves while we evaluate strategic alternatives, said David Main, President & CEO of Aquinox.
Recent Business Updates
Company Restructuring. In July 2018, Aquinox announced a restructuring plan to reduce operating costs and better align its workforce with the needs of its business. On November 6, 2018, Aquinoxs Board of Directors approved further restructuring to reduce operating costs. Aquinoxs headcount for 2019 will be reduced to eight FTEs with all R&D activities suspended and no material R&D spending planned while strategic alternatives are being considered.
Summary of Financial Results
Cash Position. Cash and cash equivalents totaled $86.7 million as of September 30, 2018, compared to cash, cash equivalents and short-term investments of $108.1 million as of December 31, 2017. The decrease was primarily the result of expenditures related to the LEADERSHIP 301 clinical trial in IC/BPS and costs associated with restructuring activities, partly off-set by the $25 million payment from Astellas in relation to the exclusive licensing agreement.
R&D Expenses. Research and development expenses for the third quarter of 2018 increased to $10.7 million from $8.5 million in the third quarter of 2017. This increase was primarily driven by costs associated with restructuring activities, including terminating our clinical trials of rosiptor and related contracts. Aquinox expects its research and development expenses to decline over the remainder of 2018 and into 2019 as it completes the closing activities related to the rosiptor clinical trials.
G&A Expenses. General and administrative expenses for the third quarter of 2018 increased to $4.5 million from $3.6 million in the third quarter of 2017. This increase was primarily driven by restructuring costs.
Net Loss. Net loss for the third quarter of 2018 was $15.0 million compared to a net loss of $11.8 million in the third quarter of 2017. This increase was primarily driven by costs associated with restructuring activities, including terminating our clinical trials of rosiptor and related contracts.
About Aquinox Pharmaceuticals, Inc.
Aquinox Pharmaceuticals, Inc. is a pharmaceutical company discovering and developing novel therapeutics for conditions marked by inflammation, inflammatory pain, and blood cancers. For more information, please visit www.aqxpharma.com.
Cautionary Note on Forward-Looking Statements
Certain of the statements made in this press release are forward looking, including those relating to evaluation of our pipeline and strategic options. These statements are subject to risks and uncertainties that could cause actual results and events to differ materially from those anticipated, including, but not limited to, risks and uncertainties related to: clinical drug development is a lengthy and expensive process with an uncertain outcome; our ability to identify or acquire additional clinical candidates, our ability to obtain and maintain regulatory approval for any future product candidates and the potential safety, efficacy or clinical utility of or any future product candidates. Actual results or developments may differ materially from those projected or implied in these forward-looking statements. More information about the risks and uncertainties faced by Aquinox is contained in the companys Quarterly Report on Form 10-Q for the quarter ended September 30, 2018, filed with the Securities and Exchange Commission. Aquinox disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact Info:
Kamran Alam
Vice President, Finance & CFO
Aquinox Pharmaceuticals, Inc.
604.629.9223
ir@aqxpharma.com
AQUINOX PHARMACEUTICALS, INC.
Condensed consolidated balance sheets
(Unaudited)
(In thousands of U.S. dollars)
SEPTEMBER 30, 2018 |
DECEMBER 31, 2017 |
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Assets |
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Cash, cash equivalents and short-term investments |
$ | 86,731 | $ | 108,085 | ||||
Other current assets |
562 | 740 | ||||||
Other long-term assets |
521 | 1,504 | ||||||
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Total assets |
$ | 87,814 | $ | 110,329 | ||||
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Liabilities |
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Current liabilities |
$ | 10,749 | $ | 10,956 | ||||
Non-current liabilities |
343 | 486 | ||||||
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Total liabilities |
11,092 | 11,442 | ||||||
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Stockholders equity |
76,722 | 98,887 | ||||||
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Total liabilities and stockholders equity |
$ | 87,814 | $ | 110,329 | ||||
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AQUINOX PHARMACEUTICALS, INC.
Condensed consolidated statements of operations
(Unaudited)
(In thousands of U.S. dollars, except per share and share amounts)
THREE MONTHS ENDED SEPTEMBER 30, |
NINE MONTHS ENDED SEPTEMBER 30, |
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2018 | 2017 | 2018 | 2017 | |||||||||||||
Revenue |
$ | | $ | | $ | 25,000 | $ | | ||||||||
Operating expenses |
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Research and development |
10,713 | 8,456 | 39,217 | 24,708 | ||||||||||||
General and administrative |
4,484 | 3,614 | 13,107 | 9,879 | ||||||||||||
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Total operating expenses |
15,197 | 12,070 | 52,324 | 34,587 | ||||||||||||
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Loss from operations |
(15,197 | ) | (12,070 | ) | (27,324 | ) | (34,587 | ) | ||||||||
Other income, net |
204 | 237 | 626 | 672 | ||||||||||||
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Net loss |
$ | (14,993 | ) | $ | (11,833 | ) | $ | (26,698 | ) | $ | (33,915 | ) | ||||
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Net loss per common stock basic and diluted |
$ | (0.64 | ) | $ | (0.50 | ) | $ | (1.14 | ) | $ | (1.45 | ) | ||||
Basic and diluted weighted average number of common stock outstanding |
23,537,368 | 23,464,785 | 23,513,489 | 23,444,181 |