Corbus Pharmaceuticals Reports Second Quarter Financial Results and Corporate Updates

RESOLVE-1 Phase 3 study of lenabasum for treatment of systemic sclerosis on schedule for topline data this summerPhase 2b study of lenabasum for cystic fibrosis topline results on schedule in Q3 2020Balance sheet strengthened with up to $121M in new capitalCompany to host conference call and webcast today, August 6, 2020 at 8:30 a.m. ETNorwood, MA, Aug. 06, 2020 (GLOBE NEWSWIRE) — Corbus Pharmaceuticals Holdings, Inc. (NASDAQ: CRBP) (“Corbus” or the “Company”), a clinical-stage drug development company pioneering transformative medicines that target the endocannabinoid system, today reported financial results for the second quarter of 2020. The Company also provided clinical and corporate updates.“We had a busy second quarter as we prepare for a potentially transformative second half of the year with two expected data readouts, including topline data in our Phase 3 study for systemic sclerosis this summer, followed by our Phase 2b study in cystic fibrosis. We recently announced that we completed sales of $71 million through our ATM program and entered a debt financing agreement for up to $50 million with the first $20 million already received, strengthening our balance sheet and putting us in a solid financial position before topline data,” said Yuval Cohen, Ph.D., Chief Executive Officer. “We have also appointed a new board member, Dr. George Golumbeski who brings considerable expertise in corporate and business development. With these recent updates, a strong balance sheet and the critical data readouts now closer than ever, we continue to prepare the groundwork for NDA submission and commercialization following potential FDA approval.”Recent Corporate Highlights and Achievements:Clinical Program Updates:Lenabasum: a novel, oral, selective cannabinoid receptor type 2 (CB2) agonistCRB-4001: a peripherally restricted CB1 inverse agonist and additional candidate compoundsFinancial Results for Second Quarter Ended June 30, 2020:For the quarter ended June 30, 2020, the Company reported a net loss of approximately $38.1 million or a net loss per diluted share of $0.52, compared to net income of approximately $2.2 million or net income per diluted share of $0.03, for the quarter ended June 30, 2019.For the quarter ended June 30, 2020 revenue decreased by approximately $28.8 million to $0.3 million, due primarily to revenue for the quarter ended June 30, 2019 including $27 million from the up-front licensing payment received from Kaken Pharmaceuticals in March 2019.Operating expenses for the quarter ended June 30, 2020 increased by approximately $11.0 million to $38.4 million. The increase was attributable to clinical studies costs, the costs to manufacture and supply lenabasum for clinical trials, staffing costs, commercialization costs and non-cash stock compensation expense.On July 29, 2020, Corbus announced that it received an aggregate of $71 million in gross proceeds from its at-the-market (“ATM”) offering coupled with the execution of a $50 million debt financing facility with K2 HealthVentures. Pursuant to the previously disclosed $75 million ATM facility, Corbus sold 9,167,080 shares at a weighted average price of $7.70 per share. Corbus has received the first $20 million tranche from the debt financing facility and has the option to draw $20 million from the second tranche and $10 million from the third tranche, in each case upon achievement of certain regulatory and developmental milestones.Corbus expects its cash and cash equivalents on hand of approximately $101 million at July 28, 2020 to fund operations into the third quarter of 2021.Corbus management will host a conference call and webcast presentation for investors, analysts and other interested parties today, Thursday, August 6, 2020 at 8:30 a.m. ET.To participate in the call, please dial (877) 407-3978 (domestic) or (412) 902-0039 (international). The live webcast will be accessible on the Events page of the Investors section of the Corbus website, www.corbuspharma.com, and will be archived for 90 days.About CorbusCorbus Pharmaceuticals Holdings, Inc. is a Phase 3 clinical-stage pharmaceutical company focused on the development and commercialization of novel therapeutics to treat inflammatory and fibrotic diseases by leveraging its pipeline of rationally designed, endocannabinoid system-targeting drug candidates. The Company’s lead product candidate, lenabasum, is a novel, oral, selective cannabinoid receptor type 2 (CB2) agonist rationally designed to resolve chronic inflammation and fibrotic processes. Lenabasum is currently being evaluated in systemic sclerosis, cystic fibrosis, dermatomyositis and systemic lupus erythematosus.Corbus is also developing a pipeline of drug candidates targeting the endocannabinoid system. The pipeline includes CRB-4001, a 2nd generation, selective cannabinoid receptor type 1 (CB1) inverse agonist designed to be peripherally restricted. Potential indications for CRB-4001 include nonalcoholic steatohepatitis (NASH), among others.Lenabasum is not approved for the treatment of systemic sclerosis, dermatomyositis, cystic fibrosis or systemic lupus erythematosus. CRB-4001 is not approved for the treatment of NASH/NAFLD. For more information on Corbus’ clinical programs, please visit here.Please visit www.CorbusPharma.com and connect with the Company on Twitter, LinkedIn, and Facebook.Forward-Looking StatementsThis press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and Private Securities Litigation Reform Act, as amended, including those relating to the Company’s product development, clinical and regulatory timelines, market opportunity, competitive position, possible or assumed future results of operations, business strategies, potential growth opportunities and other statement that are predictive in nature. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industry and markets in which we operate and management’s current beliefs and assumptions.These statements may be identified by the use of forward-looking expressions, including, but not limited to, “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “potential,” “predict,” “project,” “should,” “would” and similar expressions and the negatives of those terms. These statements relate to future events or our financial performance and involve known and unknown risks, uncertainties, and other factors, including the potential impact of the recent COVID-19 pandemic and the potential impact of sustained social distancing efforts, on our operations, clinical development plans and timelines, which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include those set forth in the Company’s filings with the Securities and Exchange Commission. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.Corbus Pharmaceuticals Holdings, Inc.
Condensed Consolidated Balance Sheets
Corbus Pharmaceuticals Holdings, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)Corbus Pharmaceuticals Contacts:Ted Jenkins, Senior Director, Investor Relations and Corporate Communications
Phone: +1 (617) 415-7745
Email: ir@corbuspharma.comLindsey Smith, Director, Investor Relations and Corporate Communications
Phone: +1 (617) 415-7749
Email: mediainfo@corbuspharma.comChristina Tartaglia Stern IR, Inc.
Phone: +1 (212) 362-1200
Email: christina.tartaglia@sternir.com