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Clene Reports Third Quarter 2023 Financial Results and Operating Highlights

Clene Inc.
Clene Inc.
  • Reported statistically significant improved survival benefit of 19.3 months and significantly delayed clinical worsening in patients treated with CNM-Au8® in the RESCUE ALS open-label extension trial

  • Reported statistically significant long-term survival benefit of 70% decreased risk of death associated with CNM-Au8 treatment in the HEALEY ALS Platform Trial compared to PRO-ACT historical controls

  • Awarded $45.1 million NINDS grant to support research and expanded access of CNM-Au8 in people living with ALS

  • Announced peer-reviewed publication characterizing CNM-Au8 neuroprotective mechanism of action in the nanotechnology-focused journal, Small

  • Cash and cash equivalents of $42.1 million as of September 30, 2023, which includes gross proceeds of $40 million from a public offering in June and that may provide additional capital of up to $130 million through future warrant exercises based on regulatory milestones

SALT LAKE CITY, Nov. 07, 2023 (GLOBE NEWSWIRE) -- Clene Inc. (Nasdaq: CLNN) (along with its subsidiaries, “Clene”) and its wholly owned subsidiary Clene Nanomedicine Inc., a late clinical-stage biopharmaceutical company focused on improving mitochondrial health and protecting neuronal function to treat neurodegenerative diseases, including amyotrophic lateral sclerosis (ALS), Parkinson’s disease and multiple sclerosis (MS), today announced its third quarter 2023 financial results and provided recent operating highlights for its ALS clinical program.

“We are pleased to be approaching a meaningful regulatory discussion with the U.S. Food and Drug Administration (FDA) later in the fourth quarter to elucidate key next steps in our ALS regulatory submission of CNM-Au8,” said Rob Etherington, President and CEO of Clene. “We are hopeful that the consistent survival, delayed time to clinical worsening and strong safety profile with CNM-Au8 treatment from two phase 2 independent trials is sufficiently compelling for FDA to consider an accelerated path forward. The unmet need remains high for treatments to improve and extend life for patients living with this highly debilitating and rapidly progressive condition.”

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Third Quarter 2023 and Recent Operating Highlights

CNM-Au8, a gold nanocrystal suspension, for the treatment of ALS

  • In August, Clene reported 24-month data from the open-label extension of the Phase 2 RESCUE ALS study which showed a significant median survival benefit of 19.3 months, a 75% decreased risk of long-term all-cause mortality and a significant 52% decreased risk (p=0.049) of ALS clinical worsening events in patients originally randomized to CNM-Au8 treatment.

  • In September, Clene announced long-term follow-up data for patients treated with CNM-Au8 for up to 133 weeks in the HEALEY ALS Platform Trial. These post hoc data demonstrate significantly improved survival with a 49% decreased risk of death compared to a group of historical controls, who were included in the largest U.S. clinical database of previous ALS trials (PRO-ACT).

  • In October, Clene, in collaboration with Columbia University and Synapticure, was awarded a four-year grant totaling $45.1 million from the National Institute of Neurological Disorders and Stroke (NINDS), a division of the National Institutes of Health (NIH), to support an Expanded Access Protocol (EAP) for the Company’s investigational drug, CNM-Au8, in ALS.

Corporate Update

In September, the Company announced the publication of a scientific paper describing the catalytic mechanism of action (MOA) of its investigational drug, CNM-Au8 in the journal Small, a top nanotechnology-focused journal at the interface of materials science, chemistry, physics, engineering, medicine, and biology. The publication titled “A Mechanism Underpinning the Bioenergetic Metabolism-Regulating Function of Gold Nanocatalysts” characterizes the robust neuroprotective properties of CNM-Au8, which are related to the compound’s therapeutic catalytic activity. Because of the unique MOA of CNM-Au8 and the wide applicability of its neuroprotective activities, the drug is being studied across multiple neurodegenerative diseases including ALS, MS and Parkinson’s Disease.

The publication is available via Open Access at https://onlinelibrary.wiley.com/doi/10.1002/smll.202304082.

Third Quarter 2023 Financial Results

Clene’s cash, cash equivalents and marketable securities totaled $42.1 million as of September 30, 2023, compared to $23.3 million as of December 31, 2022. Clene expects that its resources as of September 30, 2023, will be sufficient to fund its operations into the third quarter of 2024.

Research and development expenses were $6.0 million for the quarter ended September 30, 2023, compared to $6.4 million for the same period in 2022. The year-over-year decrease was primarily related to a decrease in expenses related to our lead drug candidate, CNM-Au8, due to a decrease in clinical trial expenses in our HEALEY ALS Platform Trial and our RESCUE-ALS, REPAIR-MS, REPAIR-PD, and VISIONARY-MS clinical trials due to the completion of the blinded period of each trial, partially offset by increased expenses related to our ongoing EAPs and increased facility costs related to our newly-leased facility in Elkton, Maryland.

General and administrative expenses were $3.7 million for the quarter ended September 30, 2023, compared to $3.6 million for the same period in 2022. General and administrative expenses have remained flat year over year although directors’ and officers’ insurance fees and legal fees have decreased year over year while finance and accounting expenses related to fees from auditors, consultants and other financial vendors have increased and personnel fees have increased.

Total other income was $7.1 million for the quarter ended September 30, 2023, compared to total other expense of $1.2 million for the same period in 2022. The year-over-year increase in other income was primarily attributable to the changes in the fair value of common stock warrant liabilities and contingent earn-out liabilities as well as an increase in interest income.

Clene reported a net loss of $2.4 million, or $0.02 per share, for the quarter ended September 30, 2023, compared to a net loss of $11.0 million, or $0.17 per share, for the same period in 2022.

About Clene
Clene Inc., (Nasdaq: CLNN) (along with its subsidiaries, “Clene”) and its wholly owned subsidiary Clene Nanomedicine Inc., is a late clinical-stage biopharmaceutical company focused on improving mitochondrial health and protecting neuronal function to treat neurodegenerative diseases, including amyotrophic lateral sclerosis, Parkinson’s disease and multiple sclerosis. CNM-Au8® is an investigational first-in-class therapy that improves central nervous system cells’ survival and function via a mechanism that targets mitochondrial function and the NAD pathway while reducing oxidative stress. CNM-Au8® is a federally registered trademark of Clene Nanomedicine, Inc. The company is based in Salt Lake City, Utah, with R&D and manufacturing operations in Maryland. For more information, please visit www.clene.com or follow us on X (formerly Twitter) and LinkedIn.

Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, which are intended to be covered by the “safe harbor” provisions created by those laws. Clene’s forward-looking statements include, but are not limited to, statements regarding our or our management team’s expectations, hopes, beliefs, intentions or strategies regarding our future operations. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “contemplate,” “continue,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements represent our views as of the date of this press release and involve a number of judgments, risks and uncertainties. We anticipate that subsequent events and developments will cause our views to change. We undertake no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date. As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include our ability to demonstrate the efficacy and safety of our drug candidates; the clinical results for our drug candidates, which may not support further development or marketing approval; actions of regulatory agencies, which may affect the initiation, timing and progress of clinical trials and marketing approval; our ability to achieve commercial success for our drug candidates, if approved; our limited operating history and our ability to obtain additional funding for operations and to complete the development and commercialization of our drug candidates; and other risks and uncertainties set forth in “Risk Factors” in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and you are cautioned not to rely unduly upon these statements. All information in this press release is as of the date of this press release. The information contained in any website referenced herein is not, and shall not be deemed to be, part of or incorporated into this press release.

Media Contact
Ignacio Guerrero-Ros, Ph.D., or David Schull
Russo Partners, LLC
Ignacio.guerrero-ros@russopartnersllc.com
David.schull@russopartnersllc.com
(858) 717-2310

Investor Contact
Kevin Gardner
LifeSci Advisors
kgardner@lifesciadvisors.com
617-283-2856

 

CLENE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per share amounts)
(Unaudited)

 

Three Months Ended September
30,

 

Nine Months Ended September
30,

 

 

2023

 

2022

 

2023

 

2022

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product revenue

$

65

 

 

$

130

 

 

$

355

 

 

$

139

 

 

Royalty revenue

 

43

 

 

 

44

 

 

 

129

 

 

 

100

 

 

Total revenue

 

108

 

 

 

174

 

 

 

484

 

 

 

239

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

12

 

 

 

19

 

 

 

83

 

 

 

19

 

 

Research and development

 

5,972

 

 

 

6,403

 

 

 

19,982

 

 

 

24,149

 

 

General and administrative

 

3,666

 

 

 

3,557

 

 

 

11,029

 

 

 

12,807

 

 

Total operating expenses

 

9,650

 

 

 

9,979

 

 

 

31,094

 

 

 

36,975

 

 

Loss from operations

 

(9,542

)

 

 

(9,805

)

 

 

(30,610

)

 

 

(36,736

)

 

Other income (expense), net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

546

 

 

 

59

 

 

 

931

 

 

 

144

 

 

Interest expense

 

(1,188

)

 

 

(857

)

 

 

(3,358

)

 

 

(2,390

)

 

Gain on termination of lease

 

 

 

 

 

 

 

 

 

 

420

 

 

Commitment share expense

 

 

 

 

 

 

 

(402

)

 

 

 

 

Issuance costs for common stock warrant liability

 

 

 

 

 

 

 

(333

)

 

 

 

 

Loss on initial issuance of equity

 

 

 

 

 

 

 

(14,840

)

 

 

 

 

Change in fair value of common stock warrant
   liabilities

 

6,341

 

 

 

149

 

 

 

5,958

 

 

 

151

 

 

Change in fair value of Clene Nanomedicine
   contingent earn-out liability

 

1,004

 

 

 

(1,591

)

 

 

2,114

 

 

 

6,662

 

 

Change in fair value of Initial Stockholders contingent
   earn-out liability

 

129

 

 

 

(205

)

 

 

272

 

 

 

849

 

 

Research and development tax credits and unrestricted
   grants

 

247

 

 

 

1,346

 

 

 

902

 

 

 

2,001

 

 

Other income (expense), net

 

45

 

 

 

(72

)

 

 

35

 

 

 

35

 

 

Total other income (expense), net

 

7,124

 

 

 

(1,171

)

 

 

(8,721

)

 

 

7,872

 

 

Net loss before income taxes

 

(2,418

)

 

 

(10,976

)

 

 

(39,331

)

 

 

(28,864

)

 

Income tax benefit

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

(2,418

)

 

 

(10,976

)

 

 

(39,331

)

 

 

(28,864

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain (loss) on available-for-sale securities

 

(4

)

 

 

33

 

 

 

16

 

 

 

(54

)

 

Foreign currency translation adjustments

 

(81

)

 

 

(39

)

 

 

(130

)

 

 

(99

)

 

Total other comprehensive loss

 

(85

)

 

 

(6

)

 

 

(114

)

 

 

(153

)

 

Comprehensive loss

$

(2,503

)

 

$

(10,982

)

 

$

(39,445

)

 

$

(29,017

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share – basic and diluted

$

(0.02

)

 

$

(0.17

)

 

$

(0.41

)

 

$

(0.46

)

 

Weighted average common shares used to compute basic
and diluted net loss per share

 

128,405,483

 

 

 

63,508,928

 

 

 

97,026,964

 

 

 

63,234,757

 

 

 

CLENE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)

 

September 30,
2023

 

December 31,
2022

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

42,113

 

 

$

18,332

 

 

Marketable securities

 

 

 

 

4,983

 

 

Accounts receivable

 

64

 

 

 

189

 

 

Inventory

 

104

 

 

 

43

 

 

Prepaid expenses and other current assets

 

4,165

 

 

 

5,648

 

 

Total current assets

 

46,446

 

 

 

29,195

 

 

Restricted cash

 

58

 

 

 

58

 

 

Operating lease right-of-use assets

 

4,287

 

 

 

4,602

 

 

Property and equipment, net

 

9,642

 

 

 

10,638

 

 

TOTAL ASSETS

$

60,433

 

 

$

44,493

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

$

1,889

 

 

$

3,014

 

 

Accrued liabilities

 

3,194

 

 

 

3,863

 

 

Operating lease obligations, current portion

 

553

 

 

 

488

 

 

Finance lease obligations, current portion

 

44

 

 

 

74

 

 

Notes payable, current portion

 

9,588

 

 

 

6,418

 

 

Total current liabilities

 

15,268

 

 

 

13,857

 

 

Operating lease obligations, net of current portion

 

5,080

 

 

 

5,557

 

 

Finance lease obligations, net of current portion

 

 

 

 

34

 

 

Notes payable, net of current portion

 

6,675

 

 

 

9,483

 

 

Convertible notes payable

 

9,975

 

 

 

9,770

 

 

Common stock warrant liabilities

 

1,860

 

 

 

 

 

Clene Nanomedicine contingent earn-out liability

 

150

 

 

 

2,264

 

 

Initial Stockholders contingent earn-out liability

 

19

 

 

 

291

 

 

TOTAL LIABILITIES

 

39,027

 

 

 

41,256

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock, $0.0001 par value: 300,000,000 and 150,000,000 shares
   authorized at September 30, 2023 and December 31, 2022, respectively;
   128,411,981 and 74,759,591 shares issued and outstanding at September 30,
   2023 and December 31, 2022, respectively

 

13

 

 

 

7

 

 

Additional paid-in capital

 

253,854

 

 

 

196,246

 

 

Accumulated deficit

 

(232,550

)

 

 

(193,219

)

 

Accumulated other comprehensive income

 

89

 

 

 

203

 

 

TOTAL STOCKHOLDERS’ EQUITY

 

21,406

 

 

 

3,237

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

60,433

 

 

$

44,493