NH biotechs report 1Q earnings

PHOTO | Contributed Achillion Pharmaceuticals has a research facility at 300 George St. in New Haven.

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By Natalie Missakian

Several of New Haven’s publicly traded biotechs reported first-quarter financial results recently, with all but one meeting or beating Wall Street earnings expectations.

New Haven-born antibiotics maker Melinta Therapeutics reduced its first-quarter 2019 losses by $3 million compared to a year ago, as it completed the shutdown of its 300 George St. R&D facility during the quarter as part of a cost-cutting plan.

Melinta reported an adjusted net loss of $26.5 million, or $2.34 a share, compared to $29.4 million a year ago. The results beat analysts’ forecasted loss of $2.73 a share.

The company said it shrank operating expenses by $19.8 million, or 34 percent, year-over-year. However, it fell short of analysts’ expectations on the revenue side, bringing in $14.1 million ($11.8 million in net sales), about the same as in the first quarter of 2018.

Melinta closed its flagship New Haven location and another in North Carolina and shifted its headquarters to Morristown, N.J. in March after axing its discovery research program to focus on selling its newly approved antibiotic Baxdela and three others it acquired last year. It also has an office outside Chicago.

New Haven-based Biohaven Pharmaceuticals Holding Co. Ltd., which is developing treatments for migraine and other neurological diseases, also narrowed its first-quarter losses in 2019 compared to a year ago.

For the period ended March 31, Biohaven posted a net loss of $62.3 million, or $1.41 a share, down from $85.5 million, or $2.32 a share during the first-quarter of 2018. It reported no revenue as it has yet to develop a commercial product.

The results beat the consensus estimate projecting a $1.80-per-share loss, according to Zacks Investment Research.

R&D costs fell by $34.6 million compared to a year ago, when the company paid $50 million to Bristol Myers-Squibb to restructure a licensing agreement for its two migraine drug candidates.

The decrease came even as the company increased its research headcount by 14 and funneled more money into clinical trials for its late-stage neuro drugs.

However, general and administrative expenses rose by $5.6 million, due mostly to higher personnel costs to prepare for commercialization activities, the company said.

Biohaven, which according to Bloomberg is exploring the possibility of a sale, finished the quarter with $217.4 million in cash, compared to $264.2 million at the close of last year.

Science Park-based Arvinas Inc. doubled its R&D spending and widened its losses by more than $10 million during the quarter, as it advanced its first cancer drug into the clinic.

The company, which went public in September 2018, reported a first-quarter net loss of $14.4 million, or 47 cents a share, compared to $4.2 million in 2018, just beating the consensus estimate of 48 cents per share.

R&D expenses rose to $14.2 million, up from $7.1 million in 2018 as the company began a prostate cancer trial on its so-called protein degrader, which induces the body’s immune system to remove disease-causing proteins.

G&A expenses rose to $5.6 million from $1.2 million a year ago, due to higher employee expenses and compliance costs related to going public, Arvinas said.

The company reported flat revenues (from its licensing agreements with Pfizer and Genentech) at $4 million, compared to $4.1 million a year ago.

The six-year-old company still has $175 million in cash on hand, compared to $187.8 million at the end of last year.

Achillion Pharmaceuticals Inc. reported a smaller first-quarter loss in 2019 but still fell slightly short of Wall Street expectations.

The New Haven-born rare-disease drug developer relocated its corporate headquarters and half of its 60 employees to Philadelphia during the quarter, but maintains a research presence in the Elm City.

For the period ended March 31, Achillion posted a net loss of $19 million, or 14 cents a share, compared to $20.6 million (15 cents a share) in the year-ago period. Analysts projected a loss of 13 cents a share.

Despite having fewer employees due to layoffs, Achillion said it spent $14.8 million on R&D during the quarter, a slight uptick from $14 million a year ago, thanks to higher clinical trial costs. However, G&A expenses came in lower at $5.2 million, down from $6 million in the first quarter of 2018. The company reported no revenue.

Finally, big data biotech BioXcel Therapeutics Inc. reported a higher adjusted first-quarter net loss of $7.2 million, or 46 cents a share, up from $4.3 million a year ago.

The results beat the consensus estimate projecting a 48-cents-per-share loss.

The company, which recently moved from Branford to 555 Long Wharf Drive, attributed the bulk of its losses to higher R&D expenses as it launched a clinical trial on a drug to treat agitation and propelled another targeting pancreatic cancer toward the clinic.

R&D costs jumped to $5.6 million, compared to $2.9 million in the first quarter of 2018. G&A expenses were also slightly higher, at $1.7 million, compared to $1.3 million a year ago, which the company attributed to additional personnel.

The company, which uses artificial intelligence to repurpose older drugs and discover new ones, ended the quarter with $36.3 million in cash, compared to $55.5 million as of Dec. 31, 2018.

Contact Natalie Missakian at news@newhavenbiz.com