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May 08, 2018
Versartis Reports First Quarter 2018 Financial Results

MENLO PARK, Calif., May 08, 2018 (GLOBE NEWSWIRE) -- Versartis, Inc. (Nasdaq:VSAR), an endocrine-focused biopharmaceutical company, today announced financial results for the first quarter ended March 31, 2018.

“We have undertaken additional efforts to aggressively manage our cash as we work diligently to complete our strategic review process,” said Jay Shepard, President and CEO of Versartis, Inc.  “We acknowledge the patience our shareholders have shown during this process and we are committed to providing an update as soon as we can.”

First Quarter 2018 Financial Results
For the first quarter ended March 31, 2018, Versartis reported a net loss of approximately $9.0 million, or $0.25 per share, basic and diluted, compared to a net loss for the first quarter ended March 31, 2017 of $29.7 million, or $0.85 per share, basic and diluted.

Total operating expenses for the quarter ended March 31, 2018 were $8.5 million compared to $29.7 million for the quarter ended March 31, 2017. Research and development (R&D) expenses for the quarter ended March 31, 2018 were $3.6 million, compared to $22.0 million for the quarter ended March 31, 2017. The decrease in R&D expenses was primarily due to the termination of clinical and manufacturing related contracts that supported the company’s Phase 3 clinical trials for somavaratan following the Phase 3 VELOCITY trial failing to meet its primary endpoint. 

General and administrative (G&A) expenses were $4.9 million for the quarter ended March 31, 2018 compared to $7.7 million for the quarter ended March 31, 2017.  The decrease in G&A expenses was primarily due to the reduction in workforce and our continued efforts to reduce consulting and professional services expenses following the Phase 3 VELOCITY trial failing to meet its primary endpoint.  

Total operating expenses for the quarter ended March 31, 2018 include non-cash stock-based compensation expense of $2.8 million compared to $3.9 million of non-cash stock-based compensation expense for the quarter ended March 31, 2017.

Cash, cash equivalents, and short-term investments were $74.7 million as of March 31, 2018.

Contacts:
Kevin Haas
VP, Finance
(650) 963-8595
khaas@versartis.com

Versartis, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share amounts)

  Three Months Ended  
  March 31,  
  2018     2017  
Operating expenses              
Research and development $ 3,600     $ 22,004  
General and administrative   4,917       7,656  
Total operating expenses   8,517       29,660  
Loss from operations   (8,517 )     (29,660 )
Interest income   193       199  
Other income (expense), net   (657 )     (261 )
Net loss   (8,981 )     (29,722 )
Net loss per share- basic and diluted $ (0.25 )   $ (0.85 )
Weighted-average common shares used to compute basic and diluted net loss per share   36,019       35,004  
 

Versartis, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands)

      March 31,        December 31,  
  2018     2017  
Assets:              
Cash and cash equivalents $ 74,686     $ 81,146  
Other assets   3,594       3,743  
Build-to-suit lease asset   8,829       8,888  
Total assets $ 87,109     $ 93,777  
Liabilities and stockholders' equity:              
Accounts payable and other current liabilities $ 3,535     $ 5,593  
Build-to-suit lease obligation   6,944       5,428  
Total liabilities   10,479       11,021  
Total stockholders' equity   76,630       82,756  
Total liabilities and stockholders equity $ 87,109     $ 93,777  

 

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Source: Versartis, Inc.