Can Fite BioPharma Ltd (CANF)

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Can-Fite Reports Second Quarter 2020 Financial Results & Provides Clinical Update

Business Wire Business Wire•August 27, 2020

Can-Fite Reports Second Quarter 2020 Financial Results & Provides Clinical Update

Company to host conference call at 4:15 p.m. ET today, August 27, 2020
Piclidenoson Phase III rheumatoid arthritis and psoriasis interim data expected Q4 2020

Achieved efficacy and safety endpoints in Phase II NASH trial

IND filed with FDA for Phase II study of Piclidenoson in treatment of COVID-19

Can-Fite BioPharma Ltd. (NYSE American: CANF) (TASE:CFBI), a biotechnology company advancing a pipeline of proprietary small molecule drugs that address cancer, liver and inflammatory diseases, today announced financial results for the six months ended June 30, 2020.

Clinical Developments and Corporate Highlights for the Second Quarter and Recent Weeks Include:

Piclidenoson Phase III Rheumatoid Arthritis and Psoriasis Interim Data Expected Q4 2020 – Having enrolled over 50% of patients in its two Phase III studies in rheumatoid arthritis and psoriasis, Can-Fite plans to announce interim analysis for both studies in Q4 2020.

Namodenoson Showed Significant Efficacy in Treating Patients with NAFLD/NASH in a Phase II Study – Can-Fite’s Phase II NASH study achieved primary and secondary efficacy and safety endpoints in a dose dependent and statistically significant manner. The study evaluated 60 patients with non-alcoholic fatty liver disease (NAFLD) with or without non-alcoholic steatohepatitis (NASH) who were treated in three arms of the study with either 25mg Namodenoson, 12mg Namodenoson, or placebo. Namodenoson induced significant change in primary and secondary study endpoints over the 12 week study, which is a relatively short period of time. A robust anti-Inflammatory effect manifested by significant decrease in the liver enzymes ALT and AST and significant improvement in the positive cytokine adiponectin was recorded. A reduced liver fat content (LFC) and a reduction in % of liver fat volume was found together with a decrease in FIB-4 and FAST, non-invasive tests used as markers to exclude advanced fibrosis. In addition, a decrease in body weight has been observed in the 2 doses of Namodenoson, with a better effect in the higher dose. The 25mg dose of Namodenoson was found to have optimal efficacy while also having a strong safety profile and was well tolerated. 25mg has been selected as the dose to be used in the Company’s next NAFLD/NASH study. The NASH market is projected to reach at least $35 billion by 2025. There are currently no other treatment options approved for this growing unmet need.

Namodenoson Patents for the Treatment of NASH & NAFLD in U.S. and Europe – During the second quarter, the U.S. Patent and Trademark Office granted Can-Fite a patent for Namodenoson in the treatment of NASH and NAFLD. This was followed by the European Patent Office’s notification to Can-Fite, after the end of the second quarter, of its intent to grant a similar patent. The patents cover the use of the A3 adenosine receptor (A3AR) in reducing ectopic fat accumulation, particularly in fatty liver and specifically addresses reducing fat accumulation and treating conditions associated with fat accumulation such as fatty liver diseases including NASH and NAFLD.

Namodenoson Headed into Pivotal Phase III Liver Cancer Study in Europe and U.S. – Following a successful meeting with the European Medicines Agency (EMA) during the second quarter, and a prior End-of-Phase II Meeting with the U.S. Food and Drug Administration (FDA), Can-Fite completed its protocol for a pivotal Phase III study of Namodenoson in the treatment of hepatocellular carcinoma (HCC), the most common form of liver cancer. The study is designed to support a New Drug Application submission in the U.S. and a Marketing Authorization Application in Europe. Namodenoson is currently being used to treat liver cancer patients in a compassionate use program in Israel.

IND Filed with FDA for Phase II COVID-19 Study of Piclidenoson – Based on pre-IND advice and guidance from the U.S. FDA during the second quarter, Can-Fite developed a clinical trial protocol and filed an Investigational New Drug (IND) application in July for Piclidenoson in the treatment of COVID-19. A 28-day Phase II study will evaluate hospitalized patients with moderate COVID-19 symptoms. The study titled, "Piclidenoson for Treatment of COVID-19 – A Randomized, Double Blind, Placebo-Controlled Trial" will enroll 40 patients who are receiving standard supportive care and will randomly assign them in a 1:1 ratio to the trial arms of Piclidenoson twice daily or placebo. After 28 days of treatment, efficacy will be assessed through standard measures of clinical and respiratory status at day 29, including the proportion of patients alive and free of respiratory failure, as well as the proportion discharged home without need for supplemental oxygen.

Completed Development of Assay to Identify Clinically Active Cannabis Derived Compounds – Can-Fite completed the development of a biological cell-based in vitro assay which can identify clinically active cannabis derived compounds that bind to and activate A3AR, the target of Can-Fite’s platform technology. Numerous studies published in peer reviewed scientific journals demonstrate that cannabis derived compounds bind to the Gi protein-coupled A3AR, which is over-expressed in pathological cells and tissues. In addition to using this assay in the development of its own cannabis derived compound-based therapeutics, Can-Fite plans to market the assay on a ‘fee for service’ basis to researchers and other cannabis companies worldwide.

Cash Infusion of $12.9 Million – During the second quarter of 2020, Can-Fite received $8 million in a registered direct offering and a further $1.5 million through warrant exercises. In addition, during July, the Company received $3.4 million from in a registered direct offering.

"Following Namodenoson’s very encouraging Phase II efficacy and safety results in the treatment of NASH and NAFLD, we are now planning our next study in this indication which is in dire need of an effective treatment as the global prevalence of NAFLD is estimated at 25% and NASH is at 3%–5% of the general population. Achieving primary and secondary endpoints in the Phase II patients treated with 25mg of Namodenoson gives us a clear imperative to advance this clinical program," stated Can-Fite CEO Pnina Fishman.

"In the U.S., we anticipate starting a Phase II COVID-19 study of Piclidenoson upon the FDA’s response to our IND filing. As the spread of COVID-19 infections appears to be difficult to contain, it is more important than ever to rapidly develop and make available effective treatments in parallel with the massive efforts that are going into vaccine development. Looking ahead to the balance of 2020, Can-Fite has several upcoming milestones including interim results from our Phase III studies in rheumatoid arthritis and psoriasis," Dr. Fishman added.

"The COVID-19 outbreak has had a limited impact on our operations to date. Our ongoing clinical trials and clinical trial preparation work continue to remain on track. We have implemented remote working and workplace protocols for our employees in accordance with Israel Health Ministry guidelines and we continue to closely evaluate the pandemic as it unfolds," Dr. Fishman concluded.

Financial Results

Revenues for the six months ended June 30, 2020 were $0.40 million compared to revenues of $0.68 million during the six months ended June 30, 2019. The decrease in revenues was mainly due to the recognition of a lower portion of advance payments received under distribution agreements from Gebro, Chong Kun Dung Pharmaceuticals, and Cipher Pharmaceuticals.

Research and development expenses for the six months ended June 30, 2020 were $7.05 million compared with $3.96 million for the same period in 2019. Research and development expenses for the six months ended June 30, 2020 comprised primarily of expenses associated with the Phase II studies for Namodenoson in the treatment of NASH and HCC, as well as expenses for ongoing Phase III studies of Piclidenoson in the treatment of rheumatoid arthritis and psoriasis. The increase is primarily due to increased costs associated with the accelerating rate of absorption of patients for the Phase III clinical trial of Piclidenoson for the treatment of rheumatoid arthritis and for psoriasis.

General and administrative expenses were $1.45 million for the six months ended June 30, 2020 compared to $1.33 million for the same period in 2019. The increase is primarily due to an increase in salaries and related benefits and insurance expenses which was partly offset by a decrease in travel expenses and professional services.

Financial expenses, net for the six months ended June 30, 2020 was $0.12 million compared to financial expenses, net of $0.28 million for the same period in 2019. The decrease in financial expenses, net is primarily due to a decrease in exchange rate expenses.

Can-Fite's net loss for the six months ended June 30, 2020 was $8.23 million compared with a net loss of $4.89 million for the same period in 2019. As of June 30, 2020, Can-Fite had cash and cash equivalents of $9.05 million as compared to $2.69 million at December 31, 2019. The increase in cash during the six months ended June 30, 2020 is due to an aggregate of $17.9 million received through a warrant exercise transaction in January 2020, a public offering in February 2020, partial exercises in March, April and May 2020 of warrants issued in the February 2020 public offering, and a registered direct offering in June 2020.

The Company's consolidated financial results for the six months ended June 30, 2020 are presented in accordance with US GAAP Reporting Standards.

Conference Call

Management will host a conference call today, August 27, 2020 at 4:15 p.m. ET. Investors in the U.S. are invited to dial 877-423-9813. International investors may dial 201-689-8573. The conference ID is 13708494. Investors may also participate via webcast: http://public.viavid.com/index.php?id=141284

A replay of the webcast will be archived on Can-Fite’s website for a period of time.

INTERIM CONSOLIDATED BALANCE SHEETS

U.S dollars in thousands (except for share and per share data)





June 30,





December 31,







2020





2019







Unaudited





Audited

















ASSETS



























CURRENT ASSETS:



























Cash and cash equivalents



$

9,059





$

2,697



Other receivable and prepaid expenses





3,567







4,383



Short-term investment





78







64



















Total current assets





12,704







7,144



















NON-CURRENT ASSETS:































Other non-current receivables





-







912



Operating lease right of use assets

66

82

Property, plant and equipment, net





30







36



















Total long-term assets





96







1,030



















Total assets



$

12,800





$

8,174



INTERIM CONSOLIDATED BALANCE SHEETS

U.S dollars in thousands (except for share and per share data)





June 30,





December 31,







2020





2019







Unaudited





Audited































LIABILITIES AND SHAREHOLDERS’ EQUITY



























CURRENT LIABILITIES:



























Trade payables



$

437





$

2,156



Current maturity of operating lease liability

36

36

Deferred revenues





556







469



Other accounts payable





472







610



















Total current liabilities





1,501







3,271



















NON-CURRENT LIABILITIES:































Long - term operating lease liability

22

39

Deferred revenues





2,121







2,422



















Total long-term liabilities





2,143







2,461



.

CONTINGENT LIABILITIES AND COMMITMENTS



















SHAREHOLDERS’ EQUITY:



































Ordinary shares of NIS 0.25 par value - Authorized: 500,000,000 shares at June 30, 2020 and December 31, 2019; Issued and outstanding: 411,254,463 shares as of June 30, 2020; 120,652,683 shares as of December 31, 2019





29,234







8,225



Additional paid-in capital





98,056







103,401



Accumulated other comprehensive income





1,127







1,127



Accumulated deficit





(119,261

)





(110,311

)















Total equity





9,156







2,442

















Total liabilities and shareholders’ equity



$

12,800





$

8,174



INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

U.S dollars in thousands (except for share and per share data)





Six months ended

June 30,







2020





2019







Unaudited

















Revenues



$

402



$

688

















Research and development expenses





(7,054

)





(3,960

)

General and administrative expenses





(1,455

)





(1,333

)















Operating loss





(8,107

)





(4,605

)















Total financial expenses, net





(128

)





(288

)















Net loss





(8,235

)





(4,893

)

.

Total comprehensive loss

(8,235

)





(4,893

)

.

Deemed dividend

(715)

-

.

Net loss attributed to ordinary shareholders

$

(8,950)

$

(4,893)















Basic and diluted net loss per share





(0.04

)





(0.08

)


Weighted average number of ordinary shares used in computing basic and diluted net loss per share

254,940,675

59,321,108

https://finance.yahoo.com/news/fite-reports-second-quarter-2020-110000507.html