TEL AVIV, Israel, March 18, 2021 /PRNewswire/ -- Galmed Pharmaceuticals Ltd. (Nasdaq: GLMD) ("Galmed" or the "Company"), a clinical-stage biopharmaceutical company focused on the development of the liver targeted SCD1 modulator Aramchol™, an oral therapy for the treatment of nonalcoholic steatohepatitis, or NASH and fibrosis, reports financial results for the three and twelve months ended December 31, 2020. The Company will host a conference call and webcast at 08:30 ET today.
Recent Clinical, Scientific & Business Developments
Financial Summary – Full Year 2020 vs. Full Year 2010; 4Q20vs. 4Q19:
More detailed information can be found in the Company's Annual Report on Form 20-F, a copy of which has been filed with the Securities and Exchange Commission and posted on the Company's website at www.galmedpharma.com. You may request a copy of the Company's Form 20-F, at no cost to you, by writing to the Chief Financial Officer of the Company at 16 Tiomkin Street, Tel Aviv, Israel, 6578317 or by calling +972-3-693-8448.
Conference Call & Webcast:
Thursday, March 18, 2021, 8:30 AM Eastern Time.
Toll Free: 1-877-425-9470
Toll/International: 1-201-389-0878
Israel Toll Free: 1 809 406 247
Conference ID: 13716813
Webcast: http://public.viavid.com/index.php?id=143695
Replay Dial-In Numbers
Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Pin Number: 13716813
Replay Start: Thursday March 18, 2021, 11:30 AM ET
Replay Expiry: Thursday April 1, 2021, 11:59 PM ET
About Aramchol and Non-alcoholic Steatohepatitis (NASH)
Aramchol (arachidyl amido cholanoic acid) is a novel fatty acid bile acid conjugate, inducing beneficial modulation of intra-hepatic lipid metabolism. Aramchol's ability to modulate hepatic lipid metabolism was discovered and validated in animal models, demonstrating downregulation of the three key pathologies of NASH: steatosis, inflammation and fibrosis. The effect of Aramchol on fibrosis is mediated by downregulation of steatosis and directly on human collagen producing cells. Aramchol has been granted Fast Track designation status by the FDA for the treatment of NASH.
NASH is an emerging world crisis impacting an estimated 3% to 5% of the U.S. population and an estimated 2% to 4% globally. It is the fastest growing cause of liver cancer and liver transplant in the U.S. due to the rise in obesity. NASH is the progressive form of non-alcoholic fatty liver disease that can lead to cardiovascular disease, cirrhosis and liver-related mortality.
About Galmed Pharmaceuticals Ltd.
Galmed Pharmaceuticals Ltd. is a clinical stage drug development biopharmaceutical company for liver, metabolic and inflammatory diseases. Our lead compound, Aramchol™, a backbone drug candidate for the treatment of NASH and fibrosis is currently in a Phase 3 registrational study. We are also collaborating with the Hebrew University in the development of Amilo-5MER, a 5 amino acid synthetic peptide and recently initiated a first in human study.
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. Many factors could cause Galmed's actual activities or results to differ materially from the activities and results anticipated in forward-looking statements, including, but not limited to, the following: the timing and cost of Galmed's pivotal Phase 3 ARMOR trial, or the ARMOR Study or any other pre-clinical or clinical trials; completion and receiving favorable results of the ARMOR Study for Aramchol or any other pre-clinical or clinical trial; the impact of the COVID-19 pandemic; regulatory action with respect to Aramchol or any other product candidate by the FDA or the EMA; the commercial launch and future sales of Aramchol or any other future products or product candidates; Galmed's ability to comply with all applicable post-market regulatory requirements for Aramchol or any other product candidate in the countries in which it seeks to market the product; Galmed's ability to achieve favorable pricing for Aramchol or any other product candidate; Galmed's expectations regarding the commercial market for NASH patients or any other indication; third-party payor reimbursement for Aramchol or any other product candidate; Galmed's estimates regarding anticipated capital requirements and Galmed's needs for additional financing; market adoption of Aramchol or any other product candidate by physicians and patients; the timing, cost or other aspects of the commercial launch of Aramchol or any other product candidate; the development and approval of the use of Aramchol or any other product candidate for additional indications or in combination therapy; and Galmed's expectations regarding licensing, acquisitions and strategic operations. More detailed information about the risks and uncertainties affecting Galmed is contained under the heading "Risk Factors" included in Galmed's most recent Annual Report on Form 20-F filed with the SEC on March 18, 2021, 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 (Audited) | ||||||||||||
U.S. Dollars in thousands, except share data and per share data | ||||||||||||
As of December 31, | ||||||||||||
2020 | 2019 | |||||||||||
Assets | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 6,947 | $ | 15,931 | ||||||||
Restricted cash | 113 | 112 | ||||||||||
Short-term deposits | 3,807 | 27,938 | ||||||||||
Marketable debt securities | 40,132 | 31,622 | ||||||||||
Other accounts receivable | 812 | 827 | ||||||||||
Total current assets | 51,811 | 76,430 | ||||||||||
Right of use assets | 394 | 538 | ||||||||||
Property and equipment, net | 176 | 171 | ||||||||||
Total non-current assets | 570 | 709 | ||||||||||
Total assets | $ | 52,381 | $ | 77,139 | ||||||||
Liabilities and stockholders' equity | ||||||||||||
Current liabilities | ||||||||||||
Trade payables | $ | 7,046 | $ | 5,999 | ||||||||
Other accounts payable | 966 | 935 | ||||||||||
Total current liabilities | 8,012 | 6,934 | ||||||||||
Non-current liabilities | ||||||||||||
Lease obligation | $ | 216 | $ | 352 | ||||||||
Total non-current liabilities | 216 | 352 | ||||||||||
Stockholders' equity | ||||||||||||
Ordinary shares, par value NIS 0.01 per share; Authorized 50,000,000 shares; Issued | 58 | 58 | ||||||||||
Additional paid-in capital | 179,530 | 176,696 | ||||||||||
Accumulated other comprehensive income | 272 | 35 | ||||||||||
Accumulated deficit | (135,707) | (106,936) | ||||||||||
Total stockholders' equity | 44,153 | 69,853 | ||||||||||
Total liabilities and stockholders' equity | $ | 52,381 | $ | 77,139 |
GALMED PHARMACEUTICALS LTD. | ||||||||||||||||
Consolidated Statements of Operations (Audited) | ||||||||||||||||
U.S. Dollars in thousands, except share data and per share data | ||||||||||||||||
Year ended December 31, | ||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||
Revenue | $ | - | $ | - | $ | 2,038 | ||||||||||
Research and development expenses | 26,082 | 18,180 | 8,313 | |||||||||||||
General and administrative expenses | 4,128 | 4,196 | 4,440 | |||||||||||||
Total operating loss | 30,210 | 22,376 | 10,715 | |||||||||||||
Financial income, net | (1,439) | (1,915) | (934) | |||||||||||||
Loss before income taxes | 28,771 | 20,461 | 9,781 | |||||||||||||
Income taxes | - | - | 75 | |||||||||||||
Net loss | $ | 28,771 | $ | 20,461 | $ | 9,856 | ||||||||||
Basic and diluted net loss per share | $ | 1.35 | $ | 0.97 | $ | 0.54 | ||||||||||
Weighted-average number of shares outstanding used in | 21,280,787 | 21,114,399 | 18,137,689 |
GALMED PHARMACEUTICALS LTD. | ||||||||||||
Consolidated Statements of Cash Flows (Audited) | ||||||||||||
U.S. Dollars in thousands | ||||||||||||
Year ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Cash flow from operating activities | ||||||||||||
Net loss for the year | $ | (28,771) | $ | (20,461) | $ | (9,856) | ||||||
Adjustments required to reconcile net loss to net cash used in operating | ||||||||||||
Depreciation and amortization | 39 | 35 | 387 | |||||||||
Amortization of discount/premium on marketable debt securities | 90 | (105) | (144) | |||||||||
Loss (gain) on sale of marketable debt securities | (527) | (9) | 12 | |||||||||
Interest income from short-term deposits | (285) | (63) | - | |||||||||
Stock-based compensation expense | 2,066 | 2,231 | 1,783 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Decrease in deferred revenue from collaboration agreement | - | - | (538) | |||||||||
Decrease (increase) in other accounts receivable | 15 | (609) | (63) | |||||||||
Increase (decrease) in trade payables | 1,047 | 4,185 | (462) | |||||||||
Increase (decrease) in other accounts payable | 39 | (141) | (142) | |||||||||
Net cash used in operating activities | (26,287) | (14,937) | (9,023) | |||||||||
Cash flow from investing activities | ||||||||||||
Purchase of property and equipment | (44) | (12) | (90) | |||||||||
Investment in securities, available for sale | (55,034) | (72,600) | (92,279) | |||||||||
Proceeds from sale of securities, available for sale | 47,198 | 101,098 | 38,421 | |||||||||
Proceeds (investment) in short-term deposits, net | 24,416 | (21,808) | (6,067) | |||||||||
Net cash provided by (used in) investing activities | 16,536 | 6,678 | (60,015) | |||||||||
Cash flow from financing activities | ||||||||||||
Issuance of ordinary shares and warrants, net of issuance costs (*) | 707 | - | 79,149 | |||||||||
Proceeds from exercise of options | 61 | 143 | 1,027 | |||||||||
Net cash provided by financing activities | 768 | 143 | 80,176 | |||||||||
Increase (decrease) in cash and cash equivalents and restricted cash | (8,983) | (8,116) | 11,138 | |||||||||
Cash and cash equivalents and restricted cash at the beginning of the year | 16,043 | 24,159 | 13,021 | |||||||||
Cash and cash equivalents and restricted cash at the end of the year | $ | 7,060 | $ | 16,043 | $ | 24,159 | ||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Cash received from interest | $ | 1,192 | $ | 1,953 | $ | 865 | ||||||
Cash paid for taxes | $ | - | $ | - | $ | 75 | ||||||
Non-cash transactions: | ||||||||||||
Recognition of right-of-use asset and lease liabilities from adoption of ASU 2016-02 | $ | 35 | $ | 653 | $ | - |
SOURCE Galmed Pharmaceuticals Ltd.