Versartis Reports First Quarter 2018 Financial Results

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| Source: Versartis, Inc.

MENLO PARK, Calif., May 08, 2018 (GLOBE NEWSWIRE) -- 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
khaas@versartis.com

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