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Protara Therapeutics Announces First Quarter 2020 Financial Results and Business Overview

May 13, 2020

NEW YORK, May 13, 2020 (GLOBE NEWSWIRE) -- Protara Therapeutics, Inc. (Nasdaq: TARA), a clinical stage company developing treatments for rare and specialty diseases with significant unmet needs, today announced financial results for the first quarter ended March 31, 2020.

“We remain keenly focused on executing on our core mission to deliver effective therapies for rare and specialty diseases amidst these unprecedented times,” Jesse Shefferman, Chief Executive Officer of Protara Therapeutics. “With solid financial footing and a strong commitment to the patients we serve, we believe we are well positioned to continue to advance our promising portfolio of late-stage product candidates. We look forward to providing updates on these efforts in the coming months.”

Pipeline Overview

TARA-002

  • TARA-002, Protara’s lead product candidate, is an investigational cell based therapy based on the broad immunostimulant OK-432, which is approved in Japan and Taiwan for lymphangiomas, including lymphatic malformations (LMs), which are rare, typically congenital, malformations of the lymphatic vasculature. The Company plans to initially pursue development of TARA-002 for the treatment of LMs and is also evaluating the potential of TARA-002 in oncologic indications.

IV Choline Chloride

  • Protara is developing intravenous (IV) Choline Chloride, a Phase 3-ready investigational phospholipid substrate replacement therapy for patients receiving parenteral nutrition who have intestinal failure associated liver disease (IFALD). IV Choline Chloride has been granted Orphan Drug Designation by the U.S. Food and Drug Administration for this indication.

Corporate Name Change

  • The Company recently announced a corporate name change to Protara Therapeutics from ArTara Therapeutics. The Company’s shares will continue trading on the Nasdaq Capital Market under the ticker symbol “TARA.” 

Business Impact of COVID-19

  • Protara is actively monitoring the rapidly evolving COVID-19 pandemic and maintaining operations in accordance with guidance from health authorities and government agencies.    The Company has experienced limited impact on its pre-clinical, clinical and business activities but will continue to monitor the situation and take steps to mitigate any potential impact.

First Quarter 2020 Results from Operations

  • The Company reported a net loss of $10.1 million for the first quarter of 2020 which included approximately $2.8 million of stock-based compensation expense, and approximately $1.0 million in other non-recurring merger related expenses.
     
  • As of March 31, 2020, cash, cash equivalents and restricted cash were $36.1 million.

A Form 10-Q containing the full financial statements was filed this morning and is available for viewing on the Company’s website at www.Protaratx.com or www.sec.gov.

About Protara Therapeutics, Inc.

Protara is committed to identifying and advancing transformative therapies for people with rare and specialty diseases who have limited treatment options. Protara’s portfolio includes its lead program, TARA-002, an investigational cell therapy being developed for the treatment of lymphatic malformations, and intravenous (IV) Choline Chloride, an investigational phospholipid substrate replacement therapy for the treatment of intestinal failure associated liver disease (IFALD). For more information, visit www.protaratx.com.

Forward-Looking Statements

Statements contained in this press release regarding matters that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Such statements include, but are not limited to, statements regarding Protara’s business strategy, Protara’s development plans for its product candidates, Protara’s financial footing and the impact of the COVID-19 pandemic on Protara’s business and clinical programs. Risks that contribute to the uncertain nature of the forward-looking statements include: uncertainties related to Protara’s development programs, including the initiation and completion of non-clinical studies and clinical trials and the timing of required filings with the FDA and other regulatory agencies; uncertainties related to the actual impacts and length of such impacts caused by the COVID-19 pandemic; having to use cash in ways or on timing other than expected; and the impact of market volatility on cash reserves. These and other risks and uncertainties are described more fully under the caption "Risk Factors" and elsewhere in Protara's filings and reports with the United States Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made. Protara undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

Company Contact:

Blaine Davis
Protara Therapeutics
Blaine.Davis@protaratx.com
646-844-0337

 
 PROTARA THERAPEUTICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
       
  As of
  March 31, 2020   December 31, 2019
  (unaudited)    
Assets      
Current assets:      
Cash and cash equivalents $ 36,068,736     $ 564,124  
Restricted cash   50,000       -  
Deferred offering costs   -       121,712  
Prepaid expenses and other current assets   3,562,822       78,057  
Total current assets   39,681,558       763,893  
       
Non-current assets:      
Property and equipment, net   655,783       458,591  
Right-of-use asset   391,519       -  
Goodwill   29,367,213       -  
Total assets $ 70,096,073     $ 1,222,484  
       
Liabilities and Stockholders' (Deficit) Equity      
Current liabilities:      
Accounts payable $ 2,649,602     $ 715,653  
Accrued expenses   995,588       2,634,790  
Short-term debt   1,297,777       -  
Right-of-use liability, current   24,727       -  
  Total current liabilities   4,967,694       3,350,443  
       
Non-current liabilities:      
Right-of-use liability, long-term   386,538       -  
  Total liabilities   5,354,232       3,350,443  
       
Commitments and Contingencies      
       
Stockholders' Equity (Deficit)      
Preferred Stock, $0.001 par value, authorized 10,000,000 shares:      
       
Series 1 Convertible Preferred Stock, 3,880 and 0 shares authorized at March 31, 2020      
and December 31, 2019, respectively, 3,879 and 0 shares issued and outstanding as of      
March 31, 2020 and December 31, 2019, respectively.   4       -  
Common Stock, $0.001 par value, authorized 100,000,000 shares:      
Common Stock, 5,843,203 and 2,627,533 common shares issued and outstanding as of      
March 31, 2020 and December 31, 2019, respectively.   5,843       2,628  
Additional Paid in Capital   87,577,911       10,651,073  
Accumulated Deficit   (22,841,917 )     (12,781,660 )
Total Stockholders' Equity (Deficit)   64,741,841       (2,127,959 )
  Total Liabilities and Stockholders' Equity (Deficit) $ 70,096,073     $ 1,222,484  
       


PROTARA THERAPEUTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
       
  For the Three Months Ended March 31,
    2020       2019  
       
Operating expense:      
Research & development $ 3,064,793     $ 1,077,846  
General & administrative   7,094,832       450,210  
Total operating expenses   10,159,625       1,528,056  
       
Operating loss   (10,159,625 )     (1,528,056 )
       
Other (income) expense, net      
Interest (income) expense, net   (99,368 )     -  
Total other (income) expense, net   (99,368 )     -  
       
Net Loss $ (10,060,257 )   $ (1,528,056 )
       
Weighted Average Shares Outstanding, basic and diluted   5,560,507       2,627,533  
       
Net loss per share, basic and diluted $ (1.81 )   $ (0.58 )
       

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Source: Protara Therapeutics, Inc.


IR Contact

Blaine Davis
Chief Financial Officer
Phone: 646-844-0337
Email: Blaine.Davis@protaratx.com

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