Galmed Pharmaceuticals Reports First Quarter 2015 Financial Results and Provides Business Update

-- Conference Call and Webcast Today at 8:30 a.m. EDT / 5:30 a.m. PDT --

May 13, 2015

TEL AVIV, Israel, May 13, 2015 /PRNewswire/ -- Galmed Pharmaceuticals Ltd. (Nasdaq: GLMD) ("Galmed" or the "Company"), a clinical-stage biopharmaceutical company focused on the development and commercialization of a once-daily, oral therapy for the treatment of liver diseases, today announced financial results for the three months ended March 31, 2015.

Financial Summary – First Quarter 2015 vs. First Quarter 2014:

  • Net loss of $2.5 million, or $0.22 per share, for the three months ended March 31, 2015, compared to a net loss of $2.2 million, or $0.27 per share, for the three months ended March 31, 2014.  This period's net loss included $0.6 million of non-cash, stock-based compensation expense versus $0.2 million of non-cash stock-based compensation expense incurred during the corresponding period in 2014.
  • Research and development expenses of $1.4 million for the three months ended March 31, 2015, compared to $1.5 million for the three months ended March 31, 2014.
  • General and administrative expenses of $1.1 million for the three months ended March 31, 2015, compared to $0.6 million for the three months ended March 31, 2014.  The increase in 2015 primarily resulted from higher non-cash, stock-based compensation.
  • Financial income of $0.04 million for the three months ended March 31, 2015, compared to a financial expense of $0.03 million for the three months ended March 31, 2014.  The 2015 financial income resulted primarily from interest income earned on short-term deposit and marketable securities.
  • Cash and cash equivalents, short-term deposits and marketable securities totaled $29.9 million as of March 31, 2015, compared to $31.9 million at December 31, 2014.  The decrease in 2015 primarily resulted from our ongoing clinical studies and operational activities.  Galmed continues to expect that its cash balance will be sufficient to maintain its current operations into 2017.

"As you know, we officially announced the commencement of the ARREST Study during the first quarter of 2015, as well as the affiliation of Professor Vlad Ratziu as the ARREST Study's principal investigator, and Professor Rohit Loomba as the Study's U.S. principal investigator; these were major accomplishments," stated Allen Baharaff, Galmed's President and Chief Executive Officer.  "The multinational ARREST Study of aramchol is expected to take place in approximately 80 centers in 12 countries."

Galmed's ARREST Study is a multi-center, randomized, double-blind, placebo-controlled, dose-ranging Phase IIb clinical trial of aramchol.  The trial's primary end-point is a statistically significant reduction of liver fat content measured by Magnetic Resonance Spectroscopy, or MRS, and the trial's secondary end-point is the complete resolution of Non-Alcoholic Steato-Hepatitis, or NASH, as measured by two biopsies (at the beginning and at the end of the ARREST Study), the improvement of the NAFLD Activity Score (NAS) and an improvement in the markers of liver inflammation and various metabolic biomarkers.

In addition, Galmed announced that it has expanded its clinical activities to include patient recruitment for the ARREST Study in the United States.  Mr. Baharaff stated, "We believe that U.S.-based patient recruitment will shorten the recruitment time for our ARREST Study, as well as improve the study's breadth and relevance."  Galmed currently expects to release interim results of the ARREST Study in the first half of 2016.  Galmed further reaffirmed that it expects to release top-line data by the end of 2016.

As previously communicated, during the fourth quarter of 2014, we initiated a single-center, double blind, randomized Phase IIa placebo-controlled proof-of-concept clinical trial of aramchol in 36 patients for the treatment of newly formed cholesterol gallstones following bariatric surgery.  Enrollment pace of the study has tracked significantly slower than anticipated.  Therefore, the Company decided to expand the trial into 3 additional centers.  Unfortunately, notwithstanding the significant efforts involved in the opening of the additional sites, enrollment has still continued to disappoint.  Consequently, we have filed a request with the principal investigator to cease enrollment in the underperforming center.  Accordingly, the Company is taking this opportunity to reexamine the study design in order to achieve a better recruitment.  We remain committed to the development for aramchol for cholesterol gallstones and hope to provide a revised strategy in the coming quarters.

Mr. Baharaff concluded, "our priorities for the rest of the year are very clear:  To ensure the highest quality, and timely execution of the ARREST Study.  All hands are on deck and we expect that it will stay that way."

Conference Call Details
Galmed will host a conference call and webcast today at 8:30 a.m. EDT / 5:30 a.m. PDT to discuss its financial results and to provide an update on current developments with respect to its clinical program for aramchol.  Investors interested in participating in the call can dial +1-888-401-4668 from the United States or +1-719-325-2469 for international callers, and use Conference ID 9285976.  A replay will be available through May 27, 2015, by dialing +1-877-870-5176 (United States) or +1-858-384-5517 (international); Passcode 9285976.  A webcast will also be available at http://galmedpharma.investorroom.com

About Galmed Pharmaceuticals Ltd.
Galmed is a clinical-stage biopharmaceutical company focused on the development and commercialization of a novel, once-daily, oral therapy for the treatment of liver diseases utilizing its proprietary first-in-class family of synthetic fatty-acid/bile-acid conjugates, or FABACs.  Galmed believes that its product candidate, aramchol, has the potential to be a disease modifying treatment for fatty liver disorders, including NASH, which is a chronic disease that Galmed believes constitutes a large unmet medical need.

Forward-Looking Statements
This press release may include forward-looking statements. Forward-looking statements may include, but are not limited to, statements relating to Galmed's objectives, plans and strategies, as well as statements, other than historical facts, that address activities, events or developments that Galmed intends, expects, projects, believes or anticipates will or may occur in the future. These statements are often characterized by terminology such as "believes," "hopes," "may," "anticipates," "should," "intends," "plans," "will," "expects," "estimates," "projects," "positioned," "strategy" and similar expressions and are based on assumptions and assessments made in light of management's experience and perception of historical trends, current conditions, expected future developments and other factors believed to be appropriate. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements. Applicable risks and uncertainties include those identified under the heading "Risk Factors" included in Galmed's most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission, or the SEC, and in other filings that Galmed has made and may make with the SEC in the future. The forward-looking statements contained in this press release are made as of the date of this press release and reflect Galmed's current views with respect to future events, and Galmed does not undertake and specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

GALMED PHARMACEUTICALS LTD.


Consolidated Balance Sheets (unaudited)


U.S. Dollars in thousands, except share data and per share data






As of
March 31, 2015


As of
December 31, 2014



Unaudited


Audited

Assets





Current assets





Cash and cash equivalents


$             2,340


$           23,736

Short-term deposit


6,000


6,000

Marketable securities


21,547


2,250

Other accounts receivable


388


165

     Total current assets


30,275


32,151






Property and equipment, net


773


774






Total assets


$           31,048


$           32,925






Liabilities and stockholders' equity










Current liabilities





Trade payables


$              1,147


$                 875

Other accounts payable


209


243

      Total current liabilities


1,356


1,118






Long-term liabilities





Related parties


205


400

      Total long-term liabilities


205


400






Stockholders' equity:





Ordinary shares par value NIS 0.01 per share; 
Authorized 50,000,000; Issued and outstanding: 11,100,453 shares


32


32

Additional paid-in capital


68,674


68,116

Accumulated other comprehensive income (loss)


(11)


4

Accumulated deficit


(39,208)


(36,745)

     Total stockholders' equity


29,487


31,407






Total liabilities and stockholders' equity


$         31,048


$         32,925








 

GALMED PHARMACEUTICALS LTD.


Condensed Statements of Operations (unaudited)


U.S. Dollars in thousands, except share data and per share data






Three months ended

March 31,



2015


2014

Research and development expenses


$       1,431


$     1,502

General and administrative expenses


1,073


633

    Total operating expenses


2,504


2,135

Financial expenses (income), net


(41)


26

    Net loss


$         2,463


$        2,161






Basic and diluted net loss per share from continuing operations

$ 0.22


$          0.27

Weighted-average number of shares outstanding used in computing basic and diluted net loss per share

11,100,453


7,979,989(*)





(*) Retroactively adjusted to reflect the 729:1 share split, which occurred upon the consummation of the Reorganization.






 

 

GALMED PHARMACEUTICALS LTD.


Notes to Condensed Statements of Operations (unaudited)


U.S. Dollars in thousands




Research and development expenses:





Three months ended
March 31,


2015


2014

                Chemistry and formulation studies

$         387


$         1,268

Salaries and benefits

158


                Stock-based compensation

93


                Research and preclinical studies

121


34

                Clinical studies

448


157

                Regulatory and other expenses

224


43

                      Total R&D expenses

$         1,431


$         1,502





General and administrative expenses:



Three months ended
March 31,


2015


2014

                Stock-based compensation

$            466


$         209

Professional fees

236


178

                Salaries and benefits

168


206

                Traveling and conference costs

24


23

                Rent and office-maintenance fees

61


15

                Investor relations and business development

113


                Other

5


2

                      Total G&A expenses

$          1,073


$         633

 

SOURCE Galmed Pharmaceuticals Ltd.

For further information: Josh Blacher, CFO, Galmed Pharmaceuticals Ltd., josh@galmedpharma.com, +1-646-780-7605


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