Regulus Therapeutics Inc. (NASDAQ:RGLS) has reported its Q3 2020 financial results in which revenue was $5 million and announced corporate updates. The revenue recognized in the period was attributable to completion material transfer and verification to Sanofi under the August 2020 agreement amendment.
Regulus receives $10 million in milestone payments
In August the company signed an amendment with Sanofi regarding receipt of potential milestones from the development of the miR-21 programs. As per the terms of the amendment, Regulus will be eligible for a milestone payment of $4 million after completion of transfer and verification of materials valued at $1 million sold to Sanofi. Also, the company achieved a $5 million interim enrolment milestone in addition to the $5 million received in the quarter. The company will receive an additional $25 million after the achievement of development milestones related to Phase 2 HERA trial.
Concurrently with the Sanofi amendment, Regulus also amended its term loan agreement with Oxford LLC. As per the amendment, the company will be eligible for another seven months of interest payments if it pays the $10 million loan principal before April 30, 2021. Regulus made payments of $5 million to Oxford in September and October, and it is planning to make another $5 million before the year ends which will trigger additional interest-only period. These payments will reduce the remaining loan principal to $4.7 million whose payments will commence in 2021.
Regulus progressing well with development ADPKD program
Regulus’ CEO Jay Hagan said that 2021 is shaping well to be an essential year of the company as it prepares to releases data from the first cohort of the ADPKD program by the end of Q1 2021. He said that they are delighted with the progress they have made with the ADPKD program following the recent dosing of the first subject in the Phase 1b clinical study of RGLS4326 in ADPKD patients. The CEO said that the $10 million in milestones received from the Sanofi collaboration enabled the company to reduce its outstanding debt to 44.7 million.