Galmed Pharmaceuticals Announces the Commencement of Patient Screening in the ARREST Study in the United States and Latin America, and Reports Second Quarter 2015 Financial Results

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

Aug 13, 2015

TEL AVIV, Israel, Aug. 13, 2015 /PRNewswire/ -- Galmed Pharmaceuticals Ltd. (Nasdaq: GLMD) ("Galmed"), a clinical-stage biopharmaceutical company focused on the development of a once-daily, oral therapy for the treatment of liver diseases, today announced that it has commenced patient screening for the ARREST Study in the United States and Latin America, as well as reported financial results for the three and six months ended June 30, 2015.

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

  • Net loss of $2.4 million, or $0.21 per share, for the three months ended June 30, 2015, compared to a net loss of $1.8 million, or $0.14 per share, for the three months ended June 30, 2014.  This period's net loss included $0.3 million of non-cash, stock-based compensation expense versus $0.1 million of non-cash stock-based compensation expense incurred during the corresponding period in 2014.
  • Research and development expenses of $1.6 million for the three months ended June 30, 2015, compared to $1.2 million for the three months ended June 30, 2014.  The increase in 2015 primarily resulted from an increase in research and development subcontractor expenses in connection with Aramchol's clinical development program.
  • General and administrative expenses of $1.0 million for the three months ended June 30, 2015, compared to $0.5 million for the three months ended June 30, 2014.  The increase in 2015 primarily resulted from an increase in salaries and benefits as the result of new hires, including higher non-cash, stock-based compensation and an increase in professional services.
  • Cash and cash equivalents and marketable securities totaled $27.8 million as of June 30, 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.

"The ARREST Study has made significant strides in the second quarter," stated Allen Baharaff, Galmed's President and Chief Executive Officer.  "We now have received country approval in five out of our expected nine countries to be included in the ARREST Study, including the United States, Germany, France, Chile and Israel.  Currently, fifty-two (52) sites out of our expected seventy three (73) sites have been approved by their respective Ethics Committees.

Importantly, patient screening has now commenced in the United States and Latin America, and remains ongoing in Israel.  Regarding our activities in Europe, we expect our first patients to be screened in September.

We remain confident that we will have enrolled the first 120 patients in the trial by the end of 2015, which we believe should allow us to stay on track for releasing the interim results around June 2016.

Based on the trial's protocol, 240 patients will need to have completed 12 months of treatment of Aramchol, followed by a three month follow-up period in order to complete the study.  We will then need several weeks to complete the statistical analysis before we release the data.  Based on our current estimates, therefore, we now believe that top-line data will be available in the third quarter of 2017.

Finally, we would like to formally announce the appointment of Dr. Michal Ayalon who will serve as the Company's Vice President, Research and Development.  Dr. Ayalon will lead the initiation of our pipeline and next generation molecules.  We intend to share our advancements in these efforts during the balance of this year.

Prior to joining Galmed, Dr. Ayalon led the development of a Phase II, GI/Inflammatory investigational drug as Vice President Product Development at Immune Pharmaceuticals.  Dr. Ayalon previously led the development and discovery of multiple products in inflammatory and metabolic diseases at BioLineRx, Ltd. and Compugen Ltd.  Dr. Ayalon earned her PhD in Biology from Tel-Aviv University, MSc from the Department of Cell Research and Immunology at Tel Aviv University and a BSc in Life Sciences from Tel Aviv University; she gained post-doctoral training at the Weizmann Institute of Science.  We are happy to have Dr. Ayalon aboard and wish her much success in accomplishing our shared objectives.

Mr. Baharaff concluded, "timely execution of the ARREST Study remains our main goal.  With the rapid advancement of the regulatory approvals, we are confident that patient enrollment will continue to gain momentum."

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 +1-888-503-8175 from the United States or +1-719-457-2085 for international callers, and use Conference ID 6082132.  A replay will be available through August 27, 2015, by dialing +1-877-870-5176 (United States) or +1-858-384-5517 (international); Passcode 6082132.  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 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, on March 31, 2015, 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


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




As of
June 30,

2015


As of December
31, 2014



Unaudited


Audited

Assets





Current assets





Cash and cash equivalents


$             7,324


$           23,736

Short-term deposit


-


6,000

Marketable securities


20,486


2,250

Other accounts receivable


385


165

     Total current assets


28,195


32,151






Property and equipment, net


915


774






Total assets


$            29,110


$           32,925






Liabilities and stockholders' equity










Current liabilities





Trade payables


$              1,229


$              875

Other accounts payable


272


243

      Total current liabilities


1,501


1,118






Long-term liabilities





Related parties


194


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


69,006


68,116

Accumulated other comprehensive income (loss)


(61)


4

Accumulated deficit


(41,562)


(36,745)

     Total stockholders' equity


27,415


31,407






Total liabilities and stockholders' equity


$          29,110


$         32,925







 

 

GALMED PHARMACEUTICALS LTD.



Consolidated Statements of Operations (unaudited)



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








 

Six months ended

June 30,


Three months ended

June 30,




2015


2014


2015


2014


Research and development expenses


$               2,993


$             2,747


$             1,562


$             1,245


General and administrative expenses


2,040


1,151


967


518


Total operating expenses


5,033


3,898


2,529


1,763


Financial expenses (income), net


(216)


20


(175)


(6)


Net loss


$             4,817


$             3,918


$             2,354


$             1,757












Basic and diluted net loss per share from
continuing operations

$               0.43


$              0.41


$               0.21


$                0.14



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

11,100,453


9,553,684


11,100,453


11,100,453




















 

 

GALMED PHARMACEUTICALS LTD.


Consolidated Statements of Cash Flows (Unaudited)


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





 

Six months ended

June 30,


2015


2014

Cash flow from operating activities




Net loss

 

$    (4,817)


$    (3,918)

Adjustments required to reconcile net loss to net
cash used in operating activities




Depreciation and amortization

13


4

Stock-based compensation expense

890


361

Amortization of investment premium, net

(27)


-

Changes in operating assets and liabilities: 




Increase in other accounts receivable

(220)


(45)

Increase (decrease) in trade payables

354


(1,054)

Increase in other accounts payable

29


53

Increase (decrease) in related party

(206)


20

    Net cash used in operating activities

(3,984)


(4,579)





Cash flow from investing activities




Purchase of property and equipment

(154)


(15)

Maturity of short term deposit

6,000



Investment in securities, available for sale

(21,839)


Maturity of securities, available for sale

3,565


    Net cash used in investing activities

(12,428)


(15)





Cash flow from financing activities




Issuance of ordinary shares


2,000

Issuance of ordinary shares upon IPO, net (*)


39,856

    Net cash provided by financing activities


41,856





Increase (decrease) in cash and cash equivalents

(16,412)


37,262

Cash and cash equivalents at the beginning of the year

 

23,736


137

Cash and cash equivalents at the end of the period

$        7,324


$       37,399





Supplemental disclosure of cash flow information:




Cash received from interest

$              245


 



 


GALMED PHARMACEUTICALS LTD.



Consolidated Statements of Cash Flows (Unaudited)



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






Research and development expense:

 

 

Six months ended

June 30,

 

Three months ended

June 30,


2015


2014

2015


2014

                Chemistry and formulation studies  

$               712


$            1,721

$               325


$               453

Salaries and benefits

361


210

203


210

                Stock-based compensation

128


-

35


-

                Research and preclinical studies

265


119

144


85

                Clinical studies

1,231


254

783


97

                Regulatory and other expenses

296


443

72


400

                   Total R&D expenses

$             2,993


$            2,747

$             1,562


$            1,245




General and administrative expenses:

 

 

Six months ended

June 30,

 

Three months ended

June 30,


2015


2014

2015


2014

                Stock-based compensation

$                762


$               360

$                296


$               151

Professional fees

458


361

222


183

                Salaries and benefits

356


240

188


34

                Rent and office-maintenance fees

171


83

110


68

               Investor relations and business
               development

 

285


88

 

148


65

                Other

8


19

3


17

                   Total G&A expenses

$             2,040


$            1,151

$              967


$                518

 

 

 

SOURCE Galmed Pharmaceuticals Ltd.

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


print email rss