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Tetraphase Pharmaceuticals Reports Second Quarter 2016 Financial Results and Highlights Recent Progress

WATERTOWN, Mass., Aug. 04, 2016 (GLOBE NEWSWIRE) -- Tetraphase Pharmaceuticals, Inc. (NASDAQ:TTPH), a clinical stage biopharmaceutical company developing novel antibiotics to treat life-threatening multidrug-resistant (MDR) infections, today reported financial results for the second quarter ended June 30, 2016, and provided an overview of certain corporate achievements and plans.

“During the second quarter, we finalized the protocol for IGNITE4, our upcoming phase 3 clinical trial evaluating IV eravacycline in patients with complicated intra-abdominal infections (cIAI), and remain on track to initiate this trial early in the fourth quarter of 2016,” said Guy Macdonald, Tetraphase's President and Chief Executive Officer. “Based on discussions with the FDA, we have designed IGNITE4 using a 12.5% non-inferiority margin and a trial population of approximately 450 patients. We currently anticipate reporting top-line results from IGNITE4 as early as the fourth quarter of 2017. In parallel, we are also working to finalize the trial design for IGNITE3, our phase 3 clinical trial evaluating once-daily IV eravacycline in complicated urinary tract infections (cUTI), and we look forward to providing details regarding the design and timing of IGNITE3 once the protocol is completed.”

Dr. Patrick Horn, Tetraphase’s Chief Medical Officer, commented, “Separately, we continue to advance development work on the oral formulation of eravacycline. Early data from this phase 1 program indicate that the oral dosing regimen used in IGNITE2 leads to lower systemic levels of eravacycline than expected. These data also suggest that administration of oral eravacycline in a fasted state results in increased drug exposure. With this information now in hand, we have commenced further clinical testing designed to evaluate several additional variables associated with optimizing the oral eravacycline dosing regimen.”

“Along with the advancement of our clinical programs, we continue to build the profile of eravacycline by testing it against multidrug-resistant bacterial strains in vitro and, at ASM Microbe and ECCMID we presented data showing eravacycline’s potent activity against these difficult-to-treat pathogens, including carbapenem-resistant enterobacteriaceae and Acinetobacter baumannii,” added Dr. Horn. “We also recently confirmed that in in vitro studies eravacycline retained its potent activity against colistin-resistant clinical isolates expressing the mcr-1 gene, which was just found in bacteria in the U.S. for the first time, and we look forward to presenting these data at an upcoming medical meeting.”

Second Quarter 2016 Financial Results

As of June 30, 2016, Tetraphase had cash and cash equivalents of $178.3 million and 36.7 million shares outstanding. The company expects that its cash and cash equivalents, as well as expected revenue from its U.S. government awards, will be sufficient to fund operations into the middle of 2018.

Revenues during the second quarter of 2016 were $1.2 million compared to $3.3 million for the same period in 2015. Revenues for each period consisted of contract and grant revenue under the Company’s U.S. government awards for the development of Tetraphase compounds for the treatment of diseases caused by bacterial biothreat pathogens and for certain infections caused by life-threatening multidrug-resistant bacteria. The decrease in revenues was primarily due to the scope and timing of activities related to our BARDA Contract conducted during the quarter ended June 30, 2016.

Research and development (R&D) expenses for the second quarter of 2016 were $13.7 million compared to $22.9 million for the same period in 2015. The decrease in R&D expenses was primarily due to lower costs related to our Phase 3 clinical program for eravacycline.

General and administrative (G&A) expenses for the second quarter of 2016 were $4.8 million compared to $6.5 million for the same period in 2015. The decrease in G&A expenses was primarily due to a decrease in stock-based compensation expense, as well as a decrease in pre-commercialization activities for eravacycline.

For the second quarter of 2016, Tetraphase reported a net loss of $17.2 million, or $0.47 per share, compared to a net loss of $26.0 million, or $0.72 per share, for the same period in 2015.

Second Quarter and Recent Corporate Highlights

  • Presented data at the 26th European Congress of Clinical Microbiology and Infectious Diseases (ECCMID), including preclinical data for eravacycline and TP-6076.
  • Received guidance from the U.S. FDA confirming that one additional positive phase 3 clinical trial will be required to support a New Drug Application (NDA) submission for IV eravacycline. Based on the FDA's guidance, Tetraphase plans to conduct two additional pivotal phase 3 clinical trials: one in cIAI (IGNITE4) to support the NDA filing and one in cUTI (IGNITE3) that will form the basis of a supplemental NDA for IV eravacycline.
  • Finalized the clinical trial design for IGNITE4 to support an NDA filing for IV eravacycline for cIAI. IGNITE4, the Company’s planned phase 3 clinical trial evaluating the efficacy and safety of twice-daily IV eravacycline compared to meropenem in patients with cIAI, is expected to enroll approximately 450 patients and the primary analysis will be conducted using a 12.5% non-inferiority margin. Tetraphase expects to initiate this clinical trial early in the fourth quarter of 2016, with top-line results expected as early as the fourth quarter of 2017.
  • Presented data at the American Society of Microbiology (ASM) Microbe 2016 Conference, including clinical and preclinical data for eravacycline and preclinical data for TP-271, a novel, broad-spectrum antibiotic candidate which is being developed to combat respiratory disease caused by bacterial biothreats and antibiotic-resistant public health pathogens, as well as bacterial pathogens associated with community-acquired bacterial pneumonia.
  • Commenced patient dosing in a phase 1 clinical trial for TP-6076, the lead candidate from the Company’s second-generation antibiotic program which has demonstrated potent preclinical activity against multidrug-resistant Gram-negative pathogens.
  • Continued clinical testing designed to advance the development of an oral dose formulation of eravacycline. During the second quarter, Tetraphase completed preliminary clinical testing which indicates that the overall efficacy results in IGNITE2 were likely driven by underperformance of the oral formulation due to a food effect. Preliminary clinical testing also suggests that administration of oral eravacycline in a fasted state results in increased drug exposure. Further clinical testing is now underway to evaluate several additional variables associated with increasing drug exposure and optimizing the oral eravacycline dosing regimen.
  • Added to the Russell Microcap® Index when the Russell Investment Group reconstituted its family of U.S. indexes in late June 2016.

About Tetraphase Pharmaceuticals, Inc.
Tetraphase is a clinical-stage biopharmaceutical company using its proprietary chemistry technology to create novel antibiotics for serious and life-threatening bacterial infections, including those caused by many of the multidrug-resistant (MDR) bacteria highlighted as urgent public health threats by the CDC. Tetraphase has created more than 3,000 novel tetracycline analogs using its proprietary technology platform. Tetraphase's pipeline includes three antibiotic clinical candidates: eravacycline, which is in phase 3 clinical trials, and TP-271 and TP-6076, which are in phase 1 clinical trials. Please visit www.tphase.com for more company information.

Forward-Looking Statements
Any statements in this press release about our future expectations, plans and prospects, including statements regarding our strategy, future operations, prospects, plans and objectives, and other statements containing the words "anticipates," "believes," "expects," "plans," "will" and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: whether results obtained in preclinical studies and early or interim clinical trials will be indicative of results obtained in future clinical trials; whether eravacycline or any other clinical candidate will advance through the clinical trial process on a timely basis or at all; whether the results of the Company's development efforts will warrant regulatory submission and whether any such submissions will receive approval from the United States Food and Drug Administration or equivalent foreign regulatory agencies; whether, if any clinical candidate obtains approval, it will be successfully distributed and marketed; and other factors discussed in the "Risk Factors" section of our quarterly report on Form 10-Q, filed with the Securities and Exchange Commission on August 4, 2016. In addition, the forward-looking statements included in this press release represent our views as of August 4, 2016. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we specifically disclaim any obligation to do so.


Tetraphase Pharmaceuticals, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2016 2015 2016 2015
Revenues $1,243 $3,343 $3,205 $6,359
Operating expenses
Research and development 13,746 22,907 27,269 41,780
General and administrative 4,759 6,489 10,012 11,393
Total operating expenses 18,505 29,396 37,281 53,173
Loss from operations (17,262) (26,053) (34,076) (46,814)
Other income (expense)
Other income (expense), net 94 10 167 (216)
Net loss $(17,168) $(26,043) $(33,909) $(47,030)
Net loss per share-basic and diluted $(0.47) $(0.72) $(0.93) $(1.38)
Weighted-average number of common shares used in net loss per share applicable to common stockholders-basic and diluted 36,629 36,207 36,614 33,991


Tetraphase Pharmaceuticals, Inc.
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
June 30, December 31,
2016 2015
Assets
Cash and cash equivalents$178,311 $205,912
Accounts receivable 2,981 4,151
Prepaid expenses and other current assets 5,257 3,705
Property and equipment, net 982 943
Other assets, noncurrent 199 206
Total assets$187,730 $214,917
Liabilities and stockholders’ equity
Accounts payable and accrued expenses$9,288 $9,953
Deferred revenue 1,195 909
Stockholders' equity 177,247 204,055
Total liabilities and stockholders’ equity$187,730 $214,917


Investor Contacts: Tetraphase Pharmaceuticals Teri Dahlman 617-600-7040 tdahlman@tphase.com Argot Partners Maeve Conneighton 212-600-1902 maeve@argotpartners.com Media Contact: Sam Brown Inc. Mike Beyer 312-961-2502 Mikebeyer@sambrown.com

Source:Tetraphase Pharmaceuticals