Catabasis Pharmaceuticals Inc. (NASDAQ:CATB) has announced its results and provided a business update for the three months ended September 30, 2020.
PolarisDMD edasalonexent study failed to achieve the primary endpoint
The company had previously reported that the third phase PolarisDMD edasalonexent study in Duchenne Muscular Dystrophy (DMD) didn’t meet its primary endpoint. The primary endpoint was the change from baseline in the North Star Ambulatory Assessment over 12 months of treatment relative to placebo. Equally, secondary endpoint timed function tests failed to show statistically significant improvements. However, edasalonexent was safe and well-tolerated with a safety profile consistent with what has been observed to date. The company has announced before that it will stop activities related to edasalonexent development, which includes the current GalaxyDMD open-label extension study.
Catabasis is considering different strategic alternatives and has engaged Ladenburg Thalmann & Co Inc. as its financial advisor. The company has announced plans to explore different possible strategic options, including business combination, merger out-licensing, in-licensing, or other strategic transactions. However, there are no assurances that the process will yield any such transactions. The company indicated that it would not disclose or discuss further development regarding the process until after the Board of Directors approves a particular strategic action or when it will be deemed appropriate.
Catabasis has enough cash to fund operations for 12 months
At the end of the quarter, the company had $52.9 million in cash, cash equivalents, and investment compared to the second quarter when it had $53.9 million. Based on Catabasis’s current operating plan, the company expects this cash to be adequate to fund its operations for the next 12 months. In Q3 2020, net cash used to fund operating activities was $10 million compared to Q3 2019 when it spent $6.5 million. The company reported an operating loss of $10.9 million in Q3 2020 compared to $6.7 million in Q3 2019. Net loss was $10.9 or $0.56 per share during the quarter compared to a net loss of $6.5 million or $0.56 per share in Q3 2019.