The following discussion and analysis of our financial condition and results of
operations should be read together with our condensed consolidated financial
statements and related notes included in this Quarterly Report on Form 10-Q and
the audited financial statements and related notes included in our Annual Report
on Form 10-K for the year ended
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the federal securities laws. We make such forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. In some cases, you can identify forward-looking statements by the use of the words "believe," "expect," "anticipate," "intend," "estimate," "project," "will," "could," "should," "may," "might," "plan," "assume" and other expressions that predict or indicate future events and trends and which do not relate to historical matters. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations and financial position, business and commercialization strategy, products and product candidates, research pipeline, ongoing and planned preclinical studies and clinical trials, regulatory submissions and approvals, addressable patient population, research and development expenses, timing and likelihood of success, as well as plans and objectives of management for future operations, are forward-looking statements. You should not rely on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, some of which are beyond our control. These risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from our anticipated future results, performance or achievements expressed or implied by the forward-looking statements.
Factors that might cause these differences include the following:
• our ability to successfully commercialize, market and achieve market acceptance of ZYNRELEF® (bupivacaine and meloxicam) extended-release solution ("ZYNRELEF") inthe United States ("U.S."), theEuropean Union ("EU"), the other countries in the European Economic Area ("EEA"), theUnited Kingdom , and any other countries in which we receive applicable regulatory approvals, includingCanada , CINVANTI® (aprepitant) injectable emulsion ("CINVANTI") and SUSTOL® (granisetron) extended-release injection ("SUSTOL") in theU.S. (collectively, our "Products"), and HTX-019 and HTX-034 (collectively, our "Product Candidates"), if approved by applicable regulatory authorities, and our positioning relative to competing products; • our ability to establish satisfactory pricing and obtain adequate reimbursement from government and third-party payors of our Products and our Product Candidates, if approved, or any product candidates we may develop; • whether study results of our Products and Product Candidates are indicative of the results in future studies; • the timing and results of the commercial launch of ZYNRELEF; • the potential regulatory approval for and commercial launch of our Product Candidates, if approved; • the potential market opportunities for our Products and our Product Candidates, if approved; • our competitors' activities, including decisions as to the timing of competing product launches, generic entrants, pricing and discounting; • whether safety and efficacy results of our clinical studies and other required tests for expansion of the indications for our Products and approval of our Product Candidates provide data to warrant progression of clinical trials, potential regulatory approval or further development of any of our Products or Product Candidates; • our ability to develop, acquire and advance product candidates into, and successfully complete, clinical studies, and our ability to submit for and obtain regulatory approval for product candidates in our anticipated timing, or at all; • our ability to meet the postmarketing study requirements within theU.S. Food and Drug Administration's ("FDA") mandated timelines and to obtain favorable results and comply with standard postmarketing requirements, includingU.S. federal advertising and promotion laws, federal and state anti-fraud and abuse laws, healthcare information privacy and security laws, safety information, safety surveillance and disclosure of payments or other transfers of value to healthcare professionals and entities for Products or any of our Product Candidates; 19
--------------------------------------------------------------------------------
• our ability to successfully develop and achieve regulatory approval for our Product Candidates and our other future product candidates utilizing our proprietary Biochronomer® drug delivery technology ("Biochronomer Technology"); • our ability to establish key collaborations and vendor relationships for our Products and our Product Candidates; • our ability to successfully develop and commercialize any technology that we may in-license or products we may acquire; • unanticipated delays due to manufacturing difficulties, supply constraints or changes in the regulatory environment; • our ability to successfully operate in non-U.S. jurisdictions in which we may choose to do business, including compliance with applicable regulatory requirements and laws; • uncertainties associated with obtaining and enforcing patents and trade secrets to protect our Products, our Product Candidates, our Biochronomer Technology and our other technology, and our ability to successfully defend ourselves against unforeseen third-party infringement claims; • the extent of the impact of the ongoing Coronavirus Disease 2019 ("COVID-19") pandemic on our business, including any COVID-19 mutations and any other diseases related to or resulting from COVID-19; • our estimates regarding our capital requirements; and • our ability to obtain additional financing and raise capital as necessary to fund operations or pursue business opportunities.
Any forward-looking statements in this Quarterly Report on Form 10-Q reflect our
current views with respect to future events or to our future financial
performance and involve known and unknown risks, uncertainties and other factors
that may cause our actual results, performance or achievements to be materially
different from any future results, performance or achievements expressed or
implied by these forward-looking statements. Factors that may cause actual
results to differ materially from current expectations include, among other
things, those listed under the section entitled "Risk Factors" in this Quarterly
Report on Form 10-
Overview
We are a commercial-stage biotechnology company focused on improving the lives of patients by developing best-in-class treatments to address some of the most important unmet patient needs. Our advanced science, patented technologies, and innovative approach to drug discovery and development have allowed us to create and commercialize a portfolio of products that aim to advance the standard of care for acute care and oncology patients.
Oncology Care Product Portfolio
SUSTOL
SUSTOL was our first commercial product. SUSTOL was approved by the FDA in
SUSTOL is indicated in combination with other antiemetics in adults for the prevention of acute and delayed nausea and vomiting associated with initial and repeat courses of moderately emetogenic chemotherapy (MEC) or anthracycline and cyclophosphamide (AC) combination chemotherapy regimens. SUSTOL is an extended-release, injectable 5-hydroxytryptamine type 3 ("5-HT3") receptor antagonist that utilizes our Biochronomer Technology to maintain therapeutic levels of granisetron for ?5 days. The SUSTOL global Phase 3 development program was comprised of two, large, guideline-based clinical studies that evaluated SUSTOL's efficacy and safety in more than 2,000 patients with cancer. SUSTOL's efficacy in preventing nausea and vomiting was evaluated in both the acute phase (0-24 hours following chemotherapy) and the delayed phase (24-120 hours following chemotherapy).
20
--------------------------------------------------------------------------------
SUSTOL is the first extended-release 5-HT3 receptor antagonist approved for the
prevention of acute and delayed nausea and vomiting associated with both MEC and
AC combination chemotherapy regimens. A standard of care in the treatment of
breast cancer and other cancer types, AC regimens are among the most commonly
prescribed HEC regimens, as defined by both the National Comprehensive Cancer
Network ("NCCN") and the
In
In
CINVANTI
CINVANTI is our second commercial product. CINVANTI was approved by the FDA in
CINVANTI, in combination with other antiemetic agents, is indicated in adults for the prevention of acute and delayed nausea and vomiting associated with initial and repeat courses of highly emetogenic cancer chemotherapy (HEC) including high-dose cisplatin as a single-dose regimen, delayed nausea and vomiting associated with initial and repeat courses of moderately emetogenic cancer chemotherapy (MEC) as a single-dose regimen, and nausea and vomiting associated with initial and repeat courses of MEC as a 3-day regimen.
CINVANTI is an intravenous ("IV") formulation of aprepitant, a substance P/neurokinin-1 ("NK1") receptor antagonist. CINVANTI is the first IV formulation to directly deliver aprepitant, the active ingredient in EMEND® capsules. Aprepitant (including its prodrug, fosaprepitant) is the only single-agent NK1 receptor antagonist to significantly reduce nausea and vomiting in both the acute phase (0-24 hours after chemotherapy) and the delayed phase (24-120 hours after chemotherapy). CINVANTI is the first and only IV formulation of an NK1 receptor antagonist indicated for the prevention of acute and delayed nausea and vomiting associated with HEC and nausea and vomiting associated with MEC that is free of synthetic surfactants, including polysorbate 80.
NK1 receptor antagonists are typically used in combination with 5-HT3 receptor
antagonists. The only other injectable NK1 receptor antagonist currently
approved in the
In
In
In
21
--------------------------------------------------------------------------------
Acute Care Product Portfolio ZYNRELEF (HTX-011)
In
ZYNRELEF was granted a marketing authorization by the
In
HTX-034
HTX-034, our next-generation product candidate for postoperative pain management, is an investigational non-opioid, fixed-dose combination, extendedrelease solution of the local anesthetic bupivacaine, the nonsteroidal anti-inflammatory drug meloxicam and an additional agent that further potentiates the activity of bupivacaine. HTX-034 is formulated in the same proprietary polymer as ZYNRELEF. By combining two different mechanisms that each enhance the activity of the local anesthetic bupivacaine, HTX-034 is designed to provide superior and prolonged analgesia. Local administration of HTX-034 in a validated preclinical postoperative pain model resulted in sustained analgesia for 7 days.
In
HTX-019 for PONV
HTX-019 is an investigational agent for the prevention of postoperative nausea
and vomiting ("PONV"). HTX-019 is an IV injectable emulsion formulation designed
to directly deliver aprepitant, the active ingredient in EMEND capsules, which
is the only NK1 receptor antagonist approved in the
22
--------------------------------------------------------------------------------
Biochronomer Technology
Our proprietary Biochronomer Technology is designed to deliver therapeutic levels of a wide range of otherwise short-acting pharmacological agents over a period from days to weeks with a single administration. Our Biochronomer Technology consists of polymers that have been the subject of comprehensive animal and human toxicology studies that have shown evidence of the safety of the polymer. When administered, the polymers undergo controlled hydrolysis, resulting in a controlled, sustained release of the pharmacological agent encapsulated within the Biochronomer-based composition. Furthermore, our Biochronomer Technology is designed to permit more than one pharmacological agent to be incorporated, such that multimodal therapy can be delivered with a single administration.
Critical Accounting Policies and Estimates
The discussion and analysis of our financial condition and results of operations
are based on our condensed consolidated financial statements, which have been
prepared in accordance with accounting principles generally accepted in the
Our critical accounting policies include: revenue recognition, investments,
inventory, accrued clinical liabilities, income taxes, and stock-based
compensation. There have been no material changes to our critical accounting
policies and estimates disclosures included in our Annual Report on Form 10-K
for the year ended
Recent Accounting Pronouncements
See Note 3 to the condensed consolidated financial statements included in Item 1 of this Quarterly Report on Form 10-Q.
Results of Operations for the Three and Six Months Ended
Net Product Sales
Net product sales for the three and six months ended
23
--------------------------------------------------------------------------------
Cost of Product Sales
For the three and six months ended
Research and Development Expense
Research and development expense consisted of the following (in thousands):
Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 ZYNRELEF-related costs$ 15,562 $ 24,422 $ 33,119 $ 41,653 PONV-related costs 1,442 - 3,499 - HTX-034-related costs 1,125 1,267 2,943 2,429 CINVANTI-related costs 795 1,777 1,305 2,698 SUSTOL-related costs 508 677 868 1,556 Personnel costs and other expenses 11,129 11,180 22,006 22,594 Stock-based compensation expense 4,672 4,681 9,609 9,968
Total research and development expense
For the three months ended
For the six months ended
General and Administrative Expense
For the three and six months ended
Sales and Marketing Expense
For the three and six months ended
Other Income (Expense)
For the three and six months ended
Liquidity and Capital Resources
As of
Our net loss for the three and six months ended
24
--------------------------------------------------------------------------------
Our net cash used for operating activities for the six months ended
Our net cash provided by investing activities for the six months ended
Our net cash provided by financing activities for the six months ended
Historically, we have financed our operations, including technology and product research and development, primarily through sales of our common stock and debt financings.
Contractual Obligations
We enter into agreements with clinical sites and clinical research organizations for the conduct of our clinical trials and contract manufacturing organizations for the manufacture and supply of preclinical, clinical and commercial materials and drug product. We make payments to these clinical sites and clinical research organizations based in part on the number of eligible patients enrolled and the length of their participation in the clinical trials. In some of our agreements with contract manufacturing organizations, we are required to meet minimum purchase obligations. Under certain of these agreements, we may be subject to penalties in the event that we prematurely terminate these agreements. At this time, due to the variability associated with clinical site agreements, contract research organization agreements and contract manufacturing agreements, we are unable to estimate with certainty the future costs we will incur. We intend to use our current financial resources to fund our obligations under these commitments.
Off-Balance Sheet Arrangements
We are not involved in any "off-balance sheet arrangements" within the meaning
of the rules of the
25
--------------------------------------------------------------------------------
© Edgar Online, source