SOURCE: ContraFect Corporation

ContraFect Corporation

April 06, 2015 07:30 ET

ContraFect Corporation Announces Fourth Quarter and Full Year 2014 Results

YONKERS, NY--(Marketwired - Apr 6, 2015) - ContraFect Corporation (NASDAQ: CFRX) (NASDAQ: CFRXW) (NASDAQ: CFRXZ), a biotechnology company focused on the discovery and development of protein therapeutics and antibody products for life-threatening, drug-resistant infectious diseases, today announced results for the fourth quarter and full year ended December 31, 2014. The Company closed its initial public offering (IPO) on August 1, 2014 and ended 2014 with cash, cash equivalents and marketable securities of $27.4 million versus $4.1 million at the close of 2013.

"ContraFect made significant achievements in 2014, most notably, in late December, the FDA approved CF-301, our most advanced lysin therapeutic to enter into human clinical trials. CF-301 is the first lysin ever approved by FDA to enter clinical trials, marking the beginning of the process to advance a new medicine to patients with serious Staph blood stream infections, including MRSA," said Julia P. Gregory, ContraFect's chief executive officer. "Additionally, we completed a successful IPO, which provided us with important funding."

Key Highlights:

  • On December 22, 2014, we announced that the U.S. Food and Drug Administration (FDA) concluded the review of our complete response submission and it removed the full clinical hold on our investigational new drug (IND) application for CF-301, which allows us to initiate Phase I clinical trials. CF-301 represents a first-in-class anti-bacterial therapeutic agent. We intend to pursue an initial indication for CF-301 to be used in combination with standard of care antibiotics for the treatment of Staph aureus bacteremia, including endocarditis, caused by MSSA or MRSA. If we are able to obtain approval of CF-301 for this initial indication, we believe CF-301 can be further developed for the treatment of Staph aureus pneumonia, osteomyelitis, and biofilm-related indications for infected prosthetic joints, indwelling devices and catheters.

  • On October 9, 2014, ContraFect entered into a collaborative research agreement with the National Institute for Viral Disease Control and Prevention, China CDC, to advance the research and development of CF-404, in the company's universal influenza treatment.

  • In May, ContraFect's science was recognized by both the major peer-reviewed journal in our field, The Journal of Infectious Diseases,* and a leading industry conference, the Interscience Conference on Antimicrobial Agents and Chemotherapy (ICAAC) where our Chief Scientific Officer was invited to give an oral presentation in August on our impressive endocarditis data.

  • On April 24th, the Board of Directors appointed Mr. David N. Low Jr., Michael J. Otto, Ph.D. and Dr. Roger J. Pomerantz M.D., F.A.C.P. to the Board of Directors bringing substantial financial and infectious disease expertise to the Board.

Fourth Quarter and Full Year 2014 Financial Results:

For the quarter ended December 31, 2014, ContraFect reported a net loss attributable to common shareholders of $4.7 million, or $0.23 per share, as compared to a net loss attributable to common shareholders of $10.9 million, or $10.80 per share in the prior year period.

Operating expenses for the quarter ended December 31, 2014 were $4.8 million, with $2.3 million attributable to research and development. This compares to operating expenses of $7.4 million and research and development expenses of $2.5 million in the prior year period. The decrease is primarily due to lower headcount and personnel related costs. General and administrative expenses were $2.5 million for the quarter ended December 31, 2014, compared with $4.9 million in the prior year period.

For the twelve months ended December 31, 2014, ContraFect reported a net loss attributable to common shareholders of $34.6 million, or $3.86 per share, as compared to a net loss attributable to common shareholders of $23.6 million, or $23.35 per share for the year ended December 31, 2013. The net loss per share calculation for the year ended December 31, 2014, includes a preferred stock dividend in-kind of $4.5 million, or $0.50 per share, versus no such expense in 2013. The full year loss also included $11.1 million non-cash expenses recorded in other interest expense for the conversion of all of the Company's privately held securities into common stock on the closing of the IPO. These non-recurring, non-cash charges are one-time, and not indicative of future costs.

Operating expenses for the year ended December 31, 2014 were $16.9 million, with $8.9 million attributable to research and development. This compares to operating expenses of $19.3 million and research and development expenses of $9.1 million for the year ended December 31, 2013. The decrease is primarily due to lower headcount and personnel related costs, which was partially offset by the costs associated with our license from Trellis BioScience, LLC. General and administrative expenses were $8.1 million for the year ended December 31, 2014, compared with $10.2 million for the year ended December 31, 2013.

As of December 31, 2014, ContraFect had cash, and cash equivalents and marketable securities of $27.4 million versus $4.1 million at the close of 2013.

About ContraFect

ContraFect is a biotechnology company focused on discovering and developing therapeutic protein and antibody products for life-threatening, drug-resistant infectious diseases, particularly those treated in hospital settings. Due to drug-resistant and newly emerging pathogens, hospital acquired infections are currently the fourth leading cause of death in the United States, following heart disease, cancer and stroke. We intend to address drug-resistant infections using our therapeutic product candidates from our lysin and monoclonal antibody platforms to target conserved regions of either bacteria or viruses (regions that are not prone to mutation). ContraFect's initial product candidates include new agents to treat antibiotic-resistant infections such as MRSA (drug-resistant staphylococcus bacteria) and influenza.

FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements" within the meaning of the U.S. federal securities laws. Forward-looking statements can be identified by words such as "projects," "may," "will," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans," "potential" or similar references to future periods. Forward-looking statements are statements that are not historical facts, nor assurances of future performance. Instead, they are based on ContraFect's current beliefs, expectations and assumptions regarding the future of its business, future plans, strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and changes in circumstances that are difficult to predict and many of which are beyond ContraFect's control, including those detailed in ContraFect's filings with the Securities and Exchange Commission. Specific forward-looking statements in this release include statements regarding the results of our Phase 1 clinical trial for CF-301. Actual results may differ from those set forth in the forward-looking statements. Any forward-looking statement made by ContraFect in this press release is based only on information currently available and speaks only as of the date on which it is made. Except as required by applicable law, ContraFect expressly disclaims any obligations to publicly update any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

(Tables to Follow)

   
CONTRAFECT CORPORATION  
Condensed Balance Sheets  
   
    December 31,  
    2014   2013  
         
Assets              
Current assets:              
  Cash, cash equivalents and marketable securities   $ 27,393,059   $ 4,145,270  
  Prepaid expenses and other current assets     368,787     198,410  
               
Total current assets     27,761,846     4,343,680  
Long-term assets     2,291,776     5,340,155  
               
Total assets   $ 30,053,622   $ 9,683,835  
               
Liabilities and stockholders' deficit              
Current liabilities   $ 4,159,111   $ 7,116,846  
Convertible notes payable and other long-term liabilities     313,004     15,585,162  
               
Total liabilities     4,472,115     22,702,008  
               
Total stockholders' equity (deficit)     25,581,507     (52,910,500 )
               
Total liabilities, convertible preferred stock, and stockholders' equity (deficit)   $ 30,053,622   $ 9,683,835  
               
               
               
CONTRAFECT CORPORATION  
Statements of Operations  
   
    Three Months Ended December 31,     Year Ended December 31,  
    2014     2013     2014     2013  
    (unaudited)     (unaudited)              
Operating expenses:                                
  Research and development   $ 2,322,557     $ 2,532,070     $ 8,868,053     $ 9,133,175  
  General and administrative     2,506,426       4,913,774       8,067,858       10,163,259  
                                 
Total operating expenses     4,828,983       7,445,844       16,935,911       19,296,434  
                                 
Loss from operations     (4,828,983 )     (7,445,844 )     (16,935,911 )     (19,296,434 )
Other income (expense)                                
  Interest expense, net     1,620       (873,402 )     (12,412,620 )     (1,712,178 )
  Refundable state tax credits     --       --       424,649       --  
  Change in fair value of warrant and embedded derivative liabilities     90,692       (2,612,090 )     (1,225,202 )     (2,612,090 )
                                 
Total other income (expense)     92,312       (3,485,492 )     (13,213,173 )     (4,324,268 )
                                 
  Net loss     (4,736,671 )     (10,931,336 )     (30,149,084 )     (23,620,702 )
Preferred stock dividend in-kind     --       --       (4,468,452 )     --  
                                 
  Net loss attributable to common stockholders   $ (4,736,671 )   $ (10,931,336 )   $ (34,617,536 )   $ (23,620,702 )
                                 
Per share information:                                
  Net loss per share of common stock, basic and diluted*   $ (0.23 )   $ (10.80 )   $ (3.86 )   $ (23.35 )
                                 
  Basic and diluted weighted average shares outstanding*     20,207,191       1,011,997       8,973,599       1,011,789  
                                 

*Basic and diluted net loss per share attributable to common stockholders and weighted average shares outstanding were impacted by the conversion of all the Company's outstanding convertible preferred stock and convertible notes payable on the closing of the Company's initial public offering on August 1, 2014.

The Company's financial position as of December 31, 2014 and 2013 and results of operations for the years ended December 31, 2014 and 2013 have been extracted from the Company's audited financial statements included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission. You should refer to the Company's Annual Report on Form 10-K for a complete discussion of financial information.

Contact Information

  • Investor Relations Contact

    Barbara Ryan
    Clermont Partners
    Tel: 203-274-2825
    Email: Email Contact

    Avonelle McLean
    ContraFect Corporation
    Email: Email Contact