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UNITY Biotechnology, Inc. Reports First Quarter 2018 Financial Results

/EIN News/ -- SAN FRANCISCO, June 07, 2018 (GLOBE NEWSWIRE) -- UNITY Biotechnology, Inc. (“UNITY”) (NASDAQ:UBX), a biotechnology company developing therapeutics to extend healthspan by slowing, halting or reversing diseases of aging, today reported first quarter 2018 financial results.

As of March 31, 2018, UNITY had cash, cash equivalents and short-term investments of $134.6 million. This amount excludes $5.0 million of proceeds from the final closing of UNITY’s $60 million Series C convertible preferred stock financing in April 2018, and $79.1 million of proceeds after underwriting discounts and commission from UNITY’s initial public offering (IPO) completed in May 2018.

“We had a very productive start to 2018. In addition to completing key financing milestones, we filed our first Investigational New Drug application and received clearance from FDA. We are now preparing to enroll the first patients in our Phase 1 clinical trial evaluating UBX0101 in moderate to severe osteoarthritis of the knee,” said Keith Leonard, chairman and chief executive officer of Unity Biotechnology, Inc. “We also added two new directors to the board and continue to hire key leaders to expand our strategic capabilities. With these important achievements, UNITY has the capital resources and leadership in place to execute against our mission of extending human healthspan by slowing, halting or reversing the diseases of aging.”

First Quarter Financial Results
Cash, cash equivalents and investments totaled $134.6 million as of March 31, 2018, compared to $92.2 million as of December 31, 2017. The increase in cash reflects $54.9 million in proceeds from the first close of UNITY’s Series C convertible preferred stock financing, offset by $11.9 million used in operations and $0.6 million in payments related to deferred offering costs from the IPO.

Research and development expenses were $13.0 million during the first quarter of 2018, compared with $7.0 million for the first quarter of 2017. The increase was attributable to an increase in personnel related expenses of $3.6 million, sponsored research expenses of $1.5 million and pre-clinical and start-up activity expenses of $0.9 million for the Phase 1 clinical study of UBX0101.

General and administrative expenses were $3.5 million during the first quarter of 2018, compared to $2.1 million for the first quarter of 2017. The increase was predominantly due to $0.6 million in personnel related expenses and $0.8 million increase in professional service expenses in preparation for becoming a public company.

About UNITY Biotechnology
UNITY Biotechnology is developing therapeutics to extend healthspan by slowing, halting or reversing diseases of aging. UNITY's initial focus is on creating senolytic medicines to selectively eliminate senescent cells and thereby treat age-related diseases, such as osteoarthritis, eye diseases and pulmonary diseases. More information is available at www.unitybiotechnology.com or follow us on Twitter.

Forward-Looking Statements
This press release contains forward-looking statements, including but not limited to statements related to the expected timing for enrolling patients in our Phase 1 clinical study of UBX0101 and our potential to bring medicines to market to treat age-related diseases and extend human healthspan. Such forward-looking statements involve substantial risks and uncertainties that could cause UNITY’s research and clinical development programs, future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the uncertainties inherent in the drug development process, including UNITY’s early stage of development and its understanding of senescence biology, the clinical trial enrollment process, the regulatory approval processes, the timing of regulatory filings, the challenges associated with manufacturing drug products, UNITY’s ability to successfully protect and defend its intellectual property and other matters that could affect the sufficiency of existing cash to fund operations and the availability or commercial potential of UNITY’s product candidates. UNITY undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of the company in general, see UNITY’s recently filed Registration Statement on Form S-1 and any subsequent current and periodic reports filed with the Securities and Exchange Commission.

Unity Biotechnology, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)

    Three Months Ended
    March,
    2018   2017
Operating expenses:      
Research and development $ 13,025     $ 6,970  
General and administrative   3,457       2,070  
         
  Total operating expenses   16,482       9,040  
         
  Operating loss   (16,482 )     (9,040 )
Interest income   352       108  
Other expense, net   (3 )     (2 )
  Net loss   (16,133 )     (8,934 )
Other comprehensive loss      
               
Unrealized loss on marketable securities, net of tax   (34 )     -  
               
Comprehensive loss $ (16,167 )   $ (8,934 )
  Net loss per share, basic and diluted $ 4.69     $ (2.90 )
         
         
  Weighted average number of shares used in computing net loss per share, basic and diluted   3,437,345       3,079,551  
 

Unity Biotechnology, Inc. 
Condensed Consolidated Balance Sheets 
(In thousands)

  March 31,    December 31,
  2018   2017
  (Unaudited)    
Assets      
Current Assets      
Cash and cash equivalents $ 62,754     $ 7,298  
Contribution receivable   -       1,382  
Short-term marketable securities   71,281       79,212  
Deferred offering costs   1,707       -  
Prepaid expenses and other current assets   697       988  
Total current assets   136,439       88,880  
       
Property and equipment, net   6,591       6,958  
Long-term marketable securities   -       5,118  
Restricted cash   550       550  
Other long-term assets   522       518  
Total assets $ 144,102     $ 102,024  
       
       
Liabilities, Convertible Preferred Stock, and Stockholder's Deficit      
Current liabilities      
Accounts payable $ 5,037     $ 2,378  
Accrued compensation   958       2,181  
Accrued and other current liabilities   4,668       3,338  
Total current liabilities   10,663       7,897  
               
Deferred rent, net of current portion   3,062       3,166  
Other non-current liabilities   101       118  
Total liabilities   13,826       11,181  
               
               
Convertible preferred stock   228,907       173,956  
Stockholder's deficit      
Common stock   1       1  
Additional paid-in capital   5,511       4,072  
Related party promissory notes for purchase of common stock   (592 )     (202 )
Employee promissory notes for purchase of common stock   (400 )     -  
Accumulated other comprehensive loss   (138 )     (104 )
Accumulated deficit   (103,013 )     (86,880 )
Total stockholders' deficit   (98,631 )     (83,113 )
Total liabilities, convertible preferred stock, and stockholder's deficit $ 144,102     $ 102,024  
       
Investors
                    UNITY Biotechnology, Inc.
                    Bob Goeltz 
                    Chief Financial Officer
                    1-650-525-4980
                    bob.goeltz@unitybiotechnology.com
                    
                    Media
                    Canale Communications
                    Jason Spark
                    1-619-849-6005
                    jason@canalecomm.com

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