Odonate Inc ODTC Stock Analysis

About Odonate Inc

Odonate Therapeutics, Inc. is a pharmaceutical company formerly focused on the development of tesetaxel, an investigational, orally administered chemotherapy agent that belongs to a class of drugs known as taxanes, which are widely used in the treatment of cancer. In March 2021, Odonate announced the discontinuation of development of tesetaxel and its intent to wind down tesetaxel-related operations. Odonate has transitioned all patients in tesetaxel studies to appropriate alternative therapies or facilitated continuation of treatment with tesetaxel under compassionate use programs where appropriate. ODONATE THERAPEUTICS, INC. Condensed Balance Sheets (in thousands, except par value and share amounts) September 30, December 31, 2021 2020 (Unaudited) Assets Current assets: Cash $ 95,028 $ 157,265 Prepaid expenses and other current assets 4,554 2,607 Total current assets 99,582 159,872 Property and equipment, net 1,833 2,286 Right-of-use lease assets 3,590 4,017 Restricted cash 714 714 Other 54 997 Total assets $ 105,773 $ 167,886 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 11,661 $ 14,168 Accrued expenses 17,892 12,247 Lease liabilities, current portion 744 658 Total current liabilities 30,297 27,073 Lease liabilities, less current portion 4,105 4,668 Total liabilities 34,402 31,741 Commitments and contingencies Stockholders' equity: Common stock, $0.01 par value—100,000,000 shares authorized; 38,490,336 and 38,562,281 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively 368 367 Additional paid-in capital 507,210 502,205 Accumulated deficit (436,207 ) (366,427 ) Total stockholders' equity 71,371 136,145 Total liabilities and stockholders' equity $ 105,773 $ 167,886 ODONATE THERAPEUTICS, INC. Condensed Statements of Operations (Unaudited) (in thousands, except share and per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2021 2020 2021 2020 Operating expenses: Research and development $ 2,869 $ 28,242 $ 52,422 $ 86,966 General and administrative 11,148 2,408 17,467 8,033 Total operating expenses 14,017 30,650 69,889 94,999 Loss from operations (14,017 ) (30,650 ) (69,889 ) (94,999 ) Other income, net 20 173 109 935 Net loss $ (13,997 ) $ (30,477 ) $ (69,780 ) $ (94,064 ) Net loss per share: Basic and diluted $ (0.37 ) $ (0.93 ) $ (1.85 ) $ (3.00 ) Weighted-average shares outstanding: Basic and diluted 37,922,594 32,821,835 37,750,432 31,376,672 ODONATE THERAPEUTICS, INC. Condensed Statements of Cash Flows (Unaudited) (in thousands) Nine Months Ended September 30, 2021 2020 Cash flows from operating activities: Net loss $ (69,780 ) $ (94,064 ) Adjustments to reconcile net loss to net cash used in operating activities: Equity-based compensation expense 4,181 7,522 Depreciation and amortization 368 318 Non-cash lease expense 427 282 Loss on disposal of property and equipment 111 83 Changes in operating assets and liabilities: Prepaid expenses and other assets (1,004 ) 904 Accounts payable (2,507 ) (1,559 ) Accrued expenses 5,645 5,110 Lease liabilities (477 ) (225 ) Net cash used in operating activities (63,036 ) (81,629 ) Cash flows from investing activities: Purchases of property and equipment (26 ) (416 ) Net cash used in investing activities (26 ) (416 ) Cash flows from financing activities: Proceeds from issuance of common stock under employee stock plans 825 2,459 Proceeds from issuance of common stock, net of issuance costs - 87,384 Net cash provided by financing activities 825 89,843 Net decrease in cash and restricted cash (62,237 ) 7,798 Cash and restricted cash, beginning of period 157,979 181,174 Cash and restricted cash, end of period $ 95,742 $ 188,972 Supplemental disclosure of cash flow information: Initial recognition of right-of-use lease assets $ - $ 2,861 Tenant improvement allowance $ - $ 719