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MENLO PARK, Calif., May 08, 2018 -- Versartis, Inc. (Nasdaq:VSAR), an endocrine-focused biopharmaceutical company, today announced financial results for the first quarter ended March 31, 2018.
“We have undertaken additional efforts to aggressively manage our cash as we work diligently to complete our strategic review process,” said Jay Shepard, President and CEO of Versartis, Inc. “We acknowledge the patience our shareholders have shown during this process and we are committed to providing an update as soon as we can.”
First Quarter 2018 Financial Results
For the first quarter ended March 31, 2018, Versartis reported a net loss of approximately $9.0 million, or $0.25 per share, basic and diluted, compared to a net loss for the first quarter ended March 31, 2017 of $29.7 million, or $0.85 per share, basic and diluted.
Total operating expenses for the quarter ended March 31, 2018 were $8.5 million compared to $29.7 million for the quarter ended March 31, 2017. Research and development (R&D) expenses for the quarter ended March 31, 2018 were $3.6 million, compared to $22.0 million for the quarter ended March 31, 2017. The decrease in R&D expenses was primarily due to the termination of clinical and manufacturing related contracts that supported the company’s Phase 3 clinical trials for somavaratan following the Phase 3 VELOCITY trial failing to meet its primary endpoint.
General and administrative (G&A) expenses were $4.9 million for the quarter ended March 31, 2018 compared to $7.7 million for the quarter ended March 31, 2017. The decrease in G&A expenses was primarily due to the reduction in workforce and our continued efforts to reduce consulting and professional services expenses following the Phase 3 VELOCITY trial failing to meet its primary endpoint.
Total operating expenses for the quarter ended March 31, 2018 include non-cash stock-based compensation expense of $2.8 million compared to $3.9 million of non-cash stock-based compensation expense for the quarter ended March 31, 2017.
Cash, cash equivalents, and short-term investments were $74.7 million as of March 31, 2018.
Contacts:
Kevin Haas
VP, Finance
(650) 963-8595
[email protected]
Versartis, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share amounts)
| Three Months Ended | |||||||
| March 31, | |||||||
| 2018 | 2017 | ||||||
| Operating expenses | |||||||
| Research and development | $ | 3,600 | $ | 22,004 | |||
| General and administrative | 4,917 | 7,656 | |||||
| Total operating expenses | 8,517 | 29,660 | |||||
| Loss from operations | (8,517 | ) | (29,660 | ) | |||
| Interest income | 193 | 199 | |||||
| Other income (expense), net | (657 | ) | (261 | ) | |||
| Net loss | (8,981 | ) | (29,722 | ) | |||
| Net loss per share- basic and diluted | $ | (0.25 | ) | $ | (0.85 | ) | |
| Weighted-average common shares used to compute basic and diluted net loss per share | 36,019 | 35,004 | |||||
Versartis, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)
| March 31, | December 31, | ||||||
| 2018 | 2017 | ||||||
| Assets: | |||||||
| Cash and cash equivalents | $ | 74,686 | $ | 81,146 | |||
| Other assets | 3,594 | 3,743 | |||||
| Build-to-suit lease asset | 8,829 | 8,888 | |||||
| Total assets | $ | 87,109 | $ | 93,777 | |||
| Liabilities and stockholders' equity: | |||||||
| Accounts payable and other current liabilities | $ | 3,535 | $ | 5,593 | |||
| Build-to-suit lease obligation | 6,944 | 5,428 | |||||
| Total liabilities | 10,479 | 11,021 | |||||
| Total stockholders' equity | 76,630 | 82,756 | |||||
| Total liabilities and stockholders’ equity | $ | 87,109 | $ | 93,777 | |||
