Crinetics Pharmaceuticals(US:CRNX)2020-08-07 11:35Financial Performance - Total operating expenses for the three months ended June 30, 2020, were $16,929,000, an increase of 27.5% compared to $13,345,000 for the same period in 2019[12]. - The net loss for the three months ended June 30, 2020, was $16,491,000, compared to a net loss of $12,427,000 for the same period in 2019, representing a 32.5% increase in losses[12]. - The company reported a net loss of $33.9 million for the six months ended June 30, 2020, compared to a net loss of $21.4 million for the same period in 2019, representing a 58% increase in losses year-over-year[21]. - The company had an accumulated deficit of $127.7 million as of June 30, 2020, reflecting ongoing financial challenges since inception[28]. - The net loss for Q2 2020 was $16.5 million, compared to a net loss of $12.4 million in Q2 2019, reflecting an increase of $4.1 million[95]. Research and Development - Research and development expenses for the six months ended June 30, 2020, were $26,469,000, up 50.6% from $17,540,000 for the same period in 2019[12]. - Research and development expenses included accrued R&D expenses of $4.2 million at June 30, 2020, up from $2.8 million at December 31, 2019, indicating increased investment in R&D efforts[42]. - Research and development expenses for Q2 2020 were $12.6 million, an increase of $2.3 million from Q2 2019[95]. - The company is conducting three global Phase 2 clinical trials of its lead product candidate, paltusotine, for the treatment of acromegaly[78]. - Paltusotine has received orphan drug designation from the FDA for the treatment of acromegaly[78]. Cash and Liquidity - The company had $205.2 million in unrestricted cash, cash equivalents, and investment securities as of June 30, 2020, which is expected to meet funding requirements for at least the next 12 months[28]. - Net cash used in operating activities was $28.1 million for the six months ended June 30, 2020, compared to $19.3 million for the same period in 2019, indicating a 46% increase in cash outflow[21]. - The company anticipates that existing cash, cash equivalents, and investment securities will be sufficient to meet funding requirements into 2023[102]. - The company raised $108.1 million from the issuance of stock in a public offering during the reporting period, significantly boosting its cash position[21]. Stockholder Equity and Shares - Stockholders' equity rose to $202,774,000 at June 30, 2020, compared to $117,139,000 at December 31, 2019, marking a significant increase of 73%[10]. - The weighted average shares outstanding for basic and diluted earnings per share increased to 31,409,000 for the three months ended June 30, 2020, compared to 24,161,000 for the same period in 2019, an increase of 30.3%[12]. - The company completed a public offering of 8,222,500 shares at a price of $14.00 per share, raising approximately $107.9 million in net proceeds[62]. - The company issued 275,764 shares in the ATM Offering for net proceeds of $6.4 million during the three-month period ended March 31, 2020[64]. Impact of COVID-19 - The impact of COVID-19 on the company's operations remains uncertain, with potential delays in clinical trials and other business activities[31]. - The COVID-19 pandemic has caused significant disruptions, including delays in clinical trials and potential impacts on drug manufacturing and financial condition[115]. - The company may face challenges in enrolling patients in clinical trials due to COVID-19, which could affect the integrity of subject data and study endpoints[115]. - Regulatory authorities may experience interruptions that could impact review and approval timelines for the company's product candidates[117]. - The trading price of the company's common stock has been adversely affected by the COVID-19 pandemic, impacting its ability to raise capital[118]. Other Financial Metrics - Total liabilities increased to $14,348,000 as of June 30, 2020, from $13,238,000 at December 31, 2019, reflecting a rise of 8.4%[10]. - The company reported interest income of $960,000 for the three months ended June 30, 2020, compared to $816,000 for the same period in 2019, representing an increase of 17.7%[12]. - The company reported net cash provided by investing activities of $33.9 million for the six months ended June 30, 2020, slightly down from $34.0 million in the same period of 2019[21]. - The company has an Australian tax incentive receivable of $1.408 million as of June 30, 2020, up from $0.929 million at December 31, 2019[56].