Vistagen Therapeutics Inc (NASDAQ: VTGN) Reports Revenues Of $1.1 Million From Sublicenses In 2021: Reduce Loss To $17.9 Million: Inducts Key Personnel In R&D, CMC, And Clinical Ops

Vistagen Therapeutics Inc (NASDAQ: VTGN) posted revenues of $1.1 million in 2021 from its sublicense revenues related to the non-dilutive upfront payment of $5.0 million.

The company recognized this revenue as part of the development and commercialization of the PH94B agreement with AffaMed Therapeutics. Its R&D spending declined marginally to $12.5 million in 2021.

Narrows loss to $17.9 million

Its G&A expenses also marginally dropped to $6.5 million in 2021. As a result, the company also narrowed its loss to $17.9 million (down by 13.94%) in 2021.

The company holds cash equivalents and a cash balance of $103.1 million at the end of 2021. 

Vistagen inducted several key personnel with extensive experience in developing CNS drugs and their commercialization. It helps the company to drive its commercial and clinical programs via late-stage clinical development. 

The company recently added key members in the R&D, clinical operations, regulatory affairs, CMC, and commercial operations. 

Its newly inducted CCO – Ann Cunningham, is experienced in advancing pre-commercial planning of PH94B. He will target PH94B at depression and anxiety markets. 

The company strengthened its director board by inducting Joanne Curley, who has extensive knowledge and expertise in pharmaceutical operations, product development, and commercialization. 

Signs a collaborative agreement with AffaMed Therapeutics, Inc

Vistagen signed a collaboration and licensing agreement with AffaMed Therapeutics Inc. As per the pact’s terms, the company would engage in the development/ commercialization of PH94B in South Korea and Greater China. As a result, the company received a $5 million upfront payment from AffaMed.

The company is also eligible to receive an additional payment of up to $172 million on achieving certain commercial and development milestones for PH94B. It will also receive royalty payments on concluding phase 3 clinical trials and commercialization of PH94B in the territory.

Reaches a consensus with the US FDA

Vistagen agreed with the US FDA on phase 3 clinical trial design aspects for PH94B to treat anxiety in SAD adults. 

Shawn K Singh, CEO of Vistagen, said 2021 is a transformative year for the company. Vistagen achieved significant progress in several key areas like drug development, regulatory and financial milestones. The company also made significant consensus with the FDA regarding its PALISADE Phase 3 trial for PH94B to cure social anxiety disorder.