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Mateon Provides Corporate Update and Reports Third Quarter 2017 Financial Results

4 days ago

SOUTH SAN FRANCISCO, Calif., Nov. 14, 2017 (GLOBE NEWSWIRE) — Mateon Therapeutics, Inc. (MATN), a biopharmaceutical company developing investigational drugs for the treatment of orphan oncology indications, today provided a corporate update and reported financial results for the three months ended September 30, 2017.

Recent Corporate Highlights

  • Announced phase 1b data for OXi4503 in Study OX1222 for the treatment of relapsed/refractory acute myeloid leukemia/myelodysplastic syndromes, which show complete remissions and evidence of a dose response;
  • Elevated OXi4503 to lead program, representing the primary focus of Mateon’s drug development efforts; and
  • Terminated FOCUS Study in platinum-resistant ovarian cancer, terminated clinical development of CA4P, and restructured company down to six employees to reduce expenditures.

“OXi4503 destroys the protective environment that bone marrow tumors provide to AML stem cells while also simultaneously attacking the tumor cells themselves. Thus, if ultimately approved, our lead compound would be a completely new way to treat AML and should offer many advantages over other drugs currently on the market or in development for this indication,” stated William D. Schwieterman, M.D., President and Chief Executive Officer of Mateon. “With patent protection in AML to 2033, we believe that OXi4503 represents an outstanding business development or financing proposition, and are working to secure an arrangement that will allow us to accrue clinical data in higher-dose cohorts in Study OX1222.”

Financial Results for the Third Quarter of 2017

For the three months ended September 30, 2017, Mateon reported a net loss of $3.5 million, compared to a net loss of $3.2 million for the three months ended September 30, 2016. Research and development expenses increased to $2.8 million for the three months ended September 30, 2017, compared to $2.1 million for the three months ended September 30, 2016, primarily due to higher clinical costs associated with the recently terminated FOCUS study. General and administrative expenses decreased to $0.7 million for the three months ended September 30, 2017, compared to $1.2 million for the three months ended September 30, 2016.

At September 30, 2017, Mateon had cash and short-term investments of $1.9 million.

“We very rapidly closed out the FOCUS Study in October. Following the other cost reductions implemented in late September, we now project that our existing cash, when combined with expected refunds from certain vendors, should sustain our OXi4503-focused business development and financing efforts into approximately February 2018,” concluded Dr. Schwieterman.

About Mateon
Mateon Therapeutics, Inc. is a biopharmaceutical company developing investigational drugs for the treatment of orphan oncology indications, with its lead program in acute myeloid leukemia and myelodysplastic syndromes. Mateon is committed to leveraging its product development expertise and intellectual property to bring improved and medically necessary new therapies to cancer patients worldwide.

Safe Harbor Statement
Certain statements in this news release, including, but not limited to, those concerning the efficacy and safety of OXi4503 in AML, the amount of time that existing cash balances and projected vendor refunds are expected to sustain operations and the potential for OXi4503 to treat AML are considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. They can be affected by inaccurate assumptions Mateon might make or by known or unknown risks and uncertainties, including, but not limited to: the sufficiency of the company’s cash resources to continue in business and to conduct and complete future clinical and pre-clinical trials; the uncertainties as to the future success of ongoing and planned clinical trials; and the unproven safety and efficacy of products under development or that may be developed in the future. Consequently, no forward-looking statement can be guaranteed, and actual results may vary materially. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in Mateon’s reports to the Securities and Exchange Commission, including Mateon’s reports on Forms 10-Q, 8-K and 10-K. However, Mateon undertakes no obligation to publicly update forward-looking statements, whether because of new information, future events or otherwise.

Financial tables:

Balance Sheet Data (in thousands)
    September 30, 2017   December 31, 2016  
     (Unaudited)      
Assets        
Cash and short-term investments $ 1,908 $ 12,047
Prepaid clinical trial expenses 772 1,946
Other assets 295 121
Total assets $ 2,975 $ 14,114
Liabilities and stockholders’ equity      
Accounts payable and accrued liabilities 1,211 1,614
Total stockholders’ equity 1,764 12,500
Total liabilities and stockholders’ equity $ 2,975 $ 14,114
Income Statement Data (in thousands, except per share amounts) (unaudited)
  Three months ended September 30,   Nine months ended September 30,
  2017   2016   2017   2016
Operating expenses:    
Research and development $ 2,832 $ 2,075 $ 8,699 $ 6,429
General and administrative 708 1,187 2,707 3,855
Total operating expenses 3,540 3,262 11,406 10,284
Loss from operations (3,540 ) (3,262 ) (11,406 ) (10,284 )
Interest income 7 26 33 84
Other expense (3 ) (5 ) (1 )
Net loss $ (3,536 ) $ (3,236 ) $ (11,378 ) $ (10,201 )
Net loss per share $ (0.13 ) $ (0.12 ) $ (0.43 ) $ (0.38 )
Common shares outstanding 26,545 26,545 26,545 26,545

CONTACTS

Investors:
Mateon Therapeutics, Inc.
Matthew M. Loar
ir@mateon.com
650-635-7000

Media:
JPA Health Communications
Nic DiBella
nic@jpa.com
617-945-5183

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