On August 10, 2023 Rain Oncology Inc. (NasdaqGS: RAIN), (Rain), reported financial results for the second quarter ended June 30, 2023, and provides a corporate update (Press release, Rain Oncology, AUG 10, 2023, View Source [SID1234634211]).
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"Rain has been aggressively pursuing a multitude of opportunities as we seek to leverage our clinical execution capabilities and strong cash position to add value to our stockholders", said Avanish Vellanki, co-founder and chief executive officer of Rain. "Our efforts are focused on licensing or acquiring differentiated clinical-stage programs, as well as avenues to partner with companies utilizing proprietary technology that may help develop drug candidates entering the clinic. We are very excited about the progress we’ve made and recognize that it is important to act expeditiously. We will provide an update publicly on these endeavors at the appropriate time."
Second Quarter 2023 Corporate Highlights and Key Research and Development (R&D) Updates
● Corporate Activities
o Commenced review of opportunities to maximize stockholder value inclusive of the opportunity to acquire new precision oncology assets and/or novel technology platforms
o Reduced headcount to approximately 25 full-time employees, maintaining key personnel to execute on earlier-stage clinical programs and wind down the MANTRA and MANTRA-2 trials for milademetan
o Reduced cash burn through various cost saving initiatives, including headcount reduction, to extend runway through end of 2026, in the absence of a corporate transaction and further financing
● Phase 3 Dedifferentiated Liposarcoma (DD LPS) Trial (MANTRA)
o Submitted abstracts to upcoming medical conferences; anticipate presentations in 4Q23
● Phase 2 Basket Trial (MANTRA-2) of Milademetan for MDM2-Amplified Advanced Solid Tumors
o Suspended enrollment in May 2023 and trial expected to be discontinued in 4Q23
o Submitted abstract to upcoming medical conference; anticipate presentation in 4Q23
Second Quarter 2023 Financial Results
For the three and six months ended June 30, 2023, Rain reported a net loss of $22.1 million and $42.5 million, respectively, as compared to a net loss of $17.6 million and $35.0 million for the same periods in 2022, respectively.
Research and development (R&D) expenses were $15.0 million and $31.7 million for the three and six months ended June 30, 2023, respectively, as compared to $14.3 million and $27.8 million for the same periods in 2022, respectively. The increases were primarily driven by the clinical trial costs for our Phase 3 trial in DD LPS (MANTRA) and Phase 2 tumor-agnostic basket trial (MANTRA-2), as well as personnel costs. Non-cash stock-based compensation expenses included in R&D expenses were approximately $0.5 million and $1.7 million in the three and six months ended June 30, 2023, respectively, as compared to $1.2 million and $2.1 million in the same periods in 2022, respectively.
General and administrative (G&A) expenses were $5.4 million and $10.5 million for the three and six months ended June 30, 2023, respectively, as compared to $3.5 million and $7.4 million for the same periods in 2022, respectively. The increases were primarily due to higher costs associated with launch preparation in anticipation to commercially launch milademetan in LPS, personnel, legal, outside consulting, and accounting and audit fees. Non-cash stock-based compensation expense included in G&A expenses were approximately $0.3 million and $0.7 million for the three and six months ended June 30, 2023, as compared to $0.2 million and $0.6 million for the three and six months ended June 30, 2022.
In May 2023, the Company announced a reduction in its workforce in connection with the reprioritization of the Company’s clinical strategy designed to optimize Company resources. The Company recorded restructuring charges of $2.8 million in the statements of operations for the three and six months ended June 30, 2023, comprised of $2.8 million cash severance, bonus and related employee benefits and taxes of affected employees, as well as $37,000 of stock-based compensation expense related to option modification.
Total non-cash stock-based compensation expenses were approximately $0.8 million and $2.4 million for the three and six months ended June 30, 2023, respectively, as compared to $1.4 million and $2.7 million for the same periods in 2022, respectively.
As of June 30, 2023, Rain had $86.3 million in cash, cash equivalents and short-term investments. Rain anticipates that its quarter-end cash position will provide runway into year-end 2026.
As of June 30, 2023, Rain had approximately 36.4 million shares of common stock outstanding.
Second Quarter 2023 Results Conference Call and Webcast Details
The management of Rain Oncology will host a conference call and webcast for the investment community today, August 10, 2023 at 2:00 pm PT (5:00 pm ET). A live webcast may be accessed here:
View Source;tp_key=7933f8175f. The conference call can be accessed by dialing (888) 886-7786 (domestic) or (416) 764-8658 (international). The passcode for the conference call is 29873479.
Replay of the call will be available by visiting the "Events" section of the Rain website after the conclusion of the presentation and will be archived on the Rain website for 30 days.