- Completion of Enrollment in ATI-1777 Phase 2b Trial in Atopic Dermatitis As Previously Announced; Topline Data Anticipated Around Year-End 2023 - WAYNE, Pa., Nov. 06, 2023 (GLOBE NEWSWIRE) -- Aclaris Therapeutics, Inc. (NASDAQ: ACRS), a clinical-stage biopharmaceutical company focused on developing novel drug candidates for immuno-inflammatory diseases, today announced its financial results for the third quarter of 2023 and provided a corporate update. Research and Development Highlights:
Currently being developed as a potential treatment for immuno-inflammatory diseases
Rheumatoid Arthritis (ATI-450-RA-202): This Phase 2b placebo-controlled dose ranging trial to investigate the efficacy, safety, tolerability, pharmacokinetics (PK) and pharmacodynamics (PD) of multiple doses (20 mg and 50 mg twice daily) of zunsemetinib in combination with methotrexate in patients with moderate to severe rheumatoid arthritis (RA) completed enrollment in June 2023. Aclaris continues to expect topline data this month. Psoriatic Arthritis (ATI-450-PsA-201): This Phase 2a placebo-controlled trial to investigate the efficacy, safety, tolerability, PK and PD of zunsemetinib (50 mg twice daily) in patients with moderate to severe psoriatic arthritis (PsA) is ongoing. Aclaris continues to expect topline data in the first half of 2024. ATI-1777, an investigational topical “soft” Janus kinase (JAK) 1/3 inhibitor: Atopic Dermatitis (ATI-1777-AD-202): This Phase 2b vehicle-controlled trial to determine the efficacy, safety, tolerability, and PK of multiple doses and application regimens of ATI-1777 in patients with mild to severe AD completed enrollment in September 2023. Aclaris continues to expect topline data around the end of 2023. Healthy Volunteers (ATI-2138-PKPD-102): This two-week Phase 1 MAD (multiple ascending dose) trial to investigate the safety, tolerability, PK and PD of ATI-2138 in healthy volunteers has been completed. Based on analysis of the PK, PD and safety, Aclaris is progressing ATI-2138 into Phase 2a clinical development in ulcerative colitis, which it expects to initiate in early 2024. Aclaris reported the data in September 2023. Preliminary data from the MAD trial demonstrated:
ATI-2138 was generally well tolerated at all doses tested in the trial; a dose-dependent inhibition of both ITK and JAK3 exploratory PD biomarkers, with near maximal inhibition achieved at the 30 mg total daily dose. This is the second MK2 inhibitorMK2 inhibitor generated from Aclaris’ proprietary KINect® drug discovery platform and is designed to have a long plasma half-life. Liquidity and Capital Resources
As of September 30, 2023, Aclaris had aggregate cash, cash equivalents and marketable securities of $187.0 million compared to $229.8 million as of December 31, 2022. Aclaris continues to anticipate that its cash, cash equivalents and marketable securities as of September 30, 2023 will be sufficient to fund its operations through the end of 2025, without giving effect to any potential business development transactions or financing activities. Net loss was $29.3 million for the third quarter of 2023 compared to $20.0 million for the third quarter of 2022.
Total revenue was $9.3 million for the third quarter of 2023 compared to $19.0 million for the third quarter of 2022. The decrease was primarily driven by a one-time upfront payment under the non-exclusive patent license agreement with Eli Lilly and Company (Lilly) received in the third quarter of 2022. Research and development (R&D) expenses were $23.9 million for the quarter ended September 30, 2023 compared to $23.7 million for the prior year period.
The $0.2 million increase was primarily the result of:
An increase in ATI-2138 development expenses, including costs associated with a Phase 1 MAD trial and other preclinical activities; and An increase in compensation-related expenses due to an increase in headcount.
General and administrative (G&A) expenses were $7.1 million for the quarter ended September 30, 2023 compared to $5.8 million for the corresponding prior year period. The increase was primarily due to increased compensation-related expenses due to an increase in headcount.
Licensing expenses were $7.3 million for each of the quarters ended September 30, 2023 and September 30, 2022, resulting from separate third-party contractual obligations related to the non-exclusive patent license agreement with Lilly. Revaluation of contingent consideration resulted in a $1.7 million charge for the quarter ended September 30, 2023 compared to a charge of $2.2 million for the prior year period.
Net loss was $87.0 million for the nine months ended September 30, 2023 compared to $59.3 million for the nine months ended September 30, 2022.
Total revenue was $13.7 million for the nine months ended September 30, 2023 compared to $22.0 million for the nine months ended September 30, 2022. The decrease was primarily driven by a one-time upfront payment under the non-exclusive patent license agreement with Lilly received in the nine months ended September 30, 2022. R&D expenses were $71.7 million for the nine months ended September 30, 2023 compared to $56.7 million for the corresponding prior year period.
The $15.0 million increase was primarily the result of higher:
Zunsemetinib development expenses, including costs associated with clinical activities for a Phase 2b trial for RA and a Phase 2a trial for PsA; ATI-2138 development expenses, including costs associated with a Phase 1 MAD trial and other preclinical activities; and Compensation-related expenses due to an increase in headcount.
G&A expenses were $24.2 million for the nine months ended September 30, 2023 compared to $18.0 million for the prior year period.
The $6.2 million increase was primarily the result of higher compensation-related costs, including stock-based compensation, due to increased headcount and the impact of equity awards granted during the nine months ended September 30, 2023. Bad debt expense recorded from Aclaris’ determination that collection of amounts due from EPI Health are uncertain as a result of their filing for Chapter 11 bankruptcy protection also contributed to the increase. Revaluation of contingent consideration resulted in a $0.6 million gain for the nine months ended September 30, 2023 compared to a gain of $2.4 million for the corresponding prior year period.
Aclaris Therapeutics, Inc. is a clinical-stage biopharmaceutical company developing a pipeline of novel drug candidates to address the needs of patients with immuno-inflammatory diseases who lack satisfactory treatment options. The company has a multi-stage portfolio of drug candidates powered by a robust R&D engine exploring protein kinase regulation. For additional information, please visit www.aclaristx.com. Cautionary Note Regarding Forward-Looking Statements
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “anticipate,” “believe,” “expect,” “intend,” “may,” “plan,” “potential,” “will,” and similar expressions, and are based on Aclaris’ current beliefs and expectations. These forward-looking statements include expectations regarding the development of Aclaris’ drug candidates, including the timing of its clinical trials, availability of data from those trials, and regulatory filings, and its belief that its existing cash, cash equivalents and marketable securities will be sufficient to fund its operations through the end of 2025. These statements involve risks and uncertainties that could cause actual results to differ materially from those reflected in such statements. Risks and uncertainties that may cause actual results to differ materially include uncertainties inherent in the conduct of clinical trials, Aclaris’ reliance on third parties over which it may not always have full control, Aclaris’ ability to enter into strategic partnerships on commercially reasonable terms, the uncertainty regarding the macroeconomic environment and other risks and uncertainties that are described in the Risk Factors section of Aclaris’ Annual Report on Form 10-K for the year ended December 31, 2022, and other filings Aclaris makes with the U.S. Securities and Exchange Commission from time to time. These documents are available under the “SEC Filings” page of the “Investors” section of Aclaris’ website at www.aclaristx.com. Any forward-looking statements speak only as of the date of this press release and are based on information available to Aclaris as of the date of this release, and Aclaris assumes no obligation to, and does not intend to, update any forward-looking statements, whether as a result of new information, future events or otherwise. Condensed Consolidated Statements of Operations
(unaudited, in thousands, except share and per share data) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022Revenues: Contract research $705 $1,090 $2,469 $3,529 Licensing 8,577 17,898 11,210 18,378 Other - 30 - 92 Total revenue 9,282 19,018 13,679 21,999 Costs and expenses: Cost of revenue(1) 848 923 2,698 3,146 Research and development(1) 23,876 23,656 71,738 56,741 General and administrative(1) 7,091 5,813 24,198 17,987 Licensing 7,344 7,300 8,955 7,300 Revaluation of contingent consideration 1,700 2,200 (600) (2,400)Total costs and expenses 40,859 39,892 106,989 82,774 Loss from operations (31,577) (20,874) (93,310) (60,775)Other income, net 2,316 922 6,320 1,502 Net loss $(29,261) $(19,952) $(86,990) $(59,273)Net loss per share, basic and diluted $(0.41) $(0.30) $(1.25) $(0.92)Weighted average common shares outstanding, basic and diluted 70,807,934 66,675,337 69,452,495 64,718,008 (1) Amounts include stock-based compensation expense as follows: Cost of revenue $347 $307 $1,119 $837 Research and development 3,072 1,400 9,168 2,228 General and administrative 2,529 2,481 8,989 7,161 Total stock-based compensation expense $5,948 $4,188 $19,276 $10,226
Selected Consolidated Balance Sheet Data
(unaudited, in thousands, except share data) September 30, 2023 December 31, 2022 Cash, cash equivalents and marketable securities $186,996 $229,813 Total assets $218,354 $254,596 Total current liabilities $27,320 $21,938 Total liabilities $62,021 $56,975 Total stockholders' equity $156,333 $197,621 Common stock outstanding 70,818,954 66,688,647
Selected Consolidated Cash Flow Data
(unaudited, in thousands) Nine Months Ended
September 30, 2023 Nine Months Ended
September 30, 2022 Net loss $(86,990) $(59,273)Depreciation and amortization 635 607 Stock-based compensation expense 19,276 10,226 Revaluation of contingent consideration (600) (2,400)Changes in operating assets and liabilities (3,885) 2,388 Net cash used in operating activities $(71,564) $(48,452)
Vice President, Investor Relations