Portage Biotech Reports Fiscal Year-Ended March 31, 2024 Financial Results and Business Update
- Exploration and evaluation of strategic alternatives continue
- Pausing patient enrollment in the ADPORT-601 clinical trial (adenosine 2A and 2B inhibitors)
- Discontinuing the iNKT clinical trial for PORT-2
“After reviewing Portage’s funding requirements, which necessitated discontinuing the clinical development of its iNKT program and pausing patient enrollment in the ADPORT-601 clinical trial of PORT-6 (adenosine 2A inhibitor) and PORT-7 (adenosine 2B inhibitor), we continue to explore strategic alternatives. These may include finding a partner for one or more of our assets, a sale of our company, a merger, restructurings (both in and out of court), a company wind down, further financing efforts, or other strategic actions,” said Dr.
Financial Results from Year Ended
The Company incurred a net loss of approximately
Operating expenses, which include research and development (“R&D”) costs and general and administrative (“G&A”) expenses, were
R&D costs increased by approximately
G&A expenses decreased by approximately
The Company’s other pre-tax items of income and expense were substantially non-cash in nature, aggregating approximately
The Company recognized a
Additionally, the Company recognized a non-cash net deferred income tax benefit of
As of
About Portage Biotech Inc.
Portage is a clinical-stage immuno-oncology company advancing multi-targeted therapies to extend survival and significantly improve the lives of patients with cancer. The Company has made the decision to discontinue its sponsored trial for its the invariant natural killer T-cell (iNKT) program and pause patient enrollment to its sponsored adenosine trial program (ADPORT-601 trial) for its potentially best-in-class adenosine antagonists PORT-6 (adenosine 2A inhibitor) and PORT-7 (adenosine 2B inhibitor). The Company is exploring strategic alternatives, which may include finding a partner for one or more of its assets, a sale of the company, a merger, restructurings, both in and out of court, a company wind down, further financing efforts or other strategic action. For more information, please visit www.portagebiotech.com, follow us on Twitter at @PortageBiotech or find us on LinkedIn at
Forward-Looking Statements
All statements in this news release, other than statements of historical facts, including without limitation, statements regarding about the Company’s information that are forward-looking in nature and, business strategy, plans and objectives of management for future operations and those statements preceded by, followed by or that otherwise include the words "believe," "expects," "anticipates," "intends," "estimates," “will,” “may,” “plan,” “potential,” “continue,” or similar expressions or variations on such expressions are forward-looking statements. For example, statements regarding the Company's plans to continue exploring strategic alternatives, which may include finding a partner for one or more of its assets, a sale of the company, a merger, restructurings (both in and out of court), a company wind down, further financing efforts, or other strategic actions, are forward-looking statements. As a result, forward-looking statements are subject to certain risks and uncertainties, including, but are not limited to: the Company's plans and ability to develop and commercialize product candidates and the timing of these development programs; the Company's clinical development of its product candidates, including the results of current and future clinical trials; the benefits and risks of the Company's product candidates as compared to others; the Company's maintenance and establishment of intellectual property rights in its product candidates; the Company's ability to obtain financing in the future to cover its operational costs and progress its plans for clinical development, its estimates regarding its capital requirements, and its ability to continue as a going concern; the Company’s estimates of future revenues and profitability; the Company's estimates of the size of the potential markets for its product candidates; its selection and licensing of product candidates; and other factors set forth in “Item 3 - Key Information-Risk Factors” in the Company’s Annual Report on Form 20-F for the year ended
FOR MORE INFORMATION, PLEASE CONTACT:
Investor Relations:
ir@portagebiotech.com
Media Relations:
media@portagebiotech.com
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Consolidated Statements of Operations and Other Comprehensive Income (Loss) ( |
||||||||||
| Years Ended |
||||||||||
| 2024 | 2023 | 2022 | ||||||||
| Expenses | ||||||||||
| Research and development | $ | 12,535 | $ | 8,674 | $ | 6,769 | ||||
| General and administrative expenses | 5,664 | 7,901 | 8,819 | |||||||
| Loss from operations | (18,199 | ) | (16,575 | ) | (15,588 | ) | ||||
| Change in fair value of deferred purchase price payable - Tarus and deferred obligation - iOx milestone | 11,305 | 2,711 | – | |||||||
| Loss on Registered Direct Offering | (2,432 | ) | – | – | ||||||
| Offering costs | (662 | ) | – | – | ||||||
| Change in fair value of warrant liability | 6,868 | 33 | 852 | |||||||
| Impairment loss - iOx IPR&D | (57,890 | ) | (59,320 | ) | – | |||||
| Impairment loss - Tarus IPR&D | (23,615 | ) | (4,585 | ) | – | |||||
| Impairment loss - |
– | (43,862 | ) | – | ||||||
| Impairment loss - Stimunity | (1,002 | ) | (818 | ) | – | |||||
| Impairment loss - Saugatuck | (178 | ) | – | – | ||||||
| Commitment fee under Committed Purchase Agreement | (839 | ) | – | – | ||||||
| Share of loss in associate accounted for using equity method | (233 | ) | (260 | ) | (62 | ) | ||||
| Gain on dissolution of investment in associate | 27 | – | – | |||||||
| Gain from sale of investment in public company | 725 | – | – | |||||||
| Foreign exchange transaction gain (loss) | 7 | (53 | ) | 24 | ||||||
| Depreciation expense | (54 | ) | (1 | ) | – | |||||
| Interest income | 274 | 217 | – | |||||||
| Interest expense | (32 | ) | (9 | ) | (43 | ) | ||||
| Loss before provision for income taxes | (85,930 | ) | (122,522 | ) | (14,817 | ) | ||||
| Income tax benefit (expense) | 10,548 | 17,856 | (4,352 | ) | ||||||
| Net loss | (75,382 | ) | (104,666 | ) | (19,169 | ) | ||||
| Other comprehensive income (loss) | ||||||||||
| Net unrealized loss on investments | (38 | ) | (5,283 | ) | – | |||||
| Total comprehensive loss for year | $ | (75,420 | ) | $ | (109,949 | ) | $ | (19,169 | ) | |
| Net loss attributable to: | ||||||||||
| Owners of the Company | $ | (75,339 | ) | $ | (104,611 | ) | $ | (16,870 | ) | |
| Non-controlling interest | (43 | ) | (55 | ) | (2,299 | ) | ||||
| Net loss | $ | (75,382 | ) | $ | (104,666 | ) | $ | (19,169 | ) | |
| Comprehensive loss attributable to: | ||||||||||
| Owners of the Company | $ | (75,377 | ) | $ | (109,894 | ) | $ | (16,870 | ) | |
| Non-controlling interest | (43 | ) | (55 | ) | (2,299 | ) | ||||
| Total comprehensive loss for year | $ | (75,420 | ) | $ | (109,949 | ) | $ | (19,169 | ) | |
| Loss per share | ||||||||||
| Basic and diluted | $ | (3.89 | ) | $ | (6.49 | ) | $ | (1.29 | ) | |
| Weighted average shares outstanding | ||||||||||
| Basic and diluted | 19,343 | 16,119 | 13,060 | |||||||
Consolidated Statements of Financial Position ( |
||||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 5,028 | $ | 10,545 | ||||
| Prepaid expenses and other receivables | 2,667 | 2,689 | ||||||
| Convertible note receivable | – | 442 | ||||||
| Total current assets | 7,695 | 13,676 | ||||||
| Non-current assets | ||||||||
| Investment in associate | – | 806 | ||||||
| Investment in public company | – | 2,087 | ||||||
| In-process research and development | – | 81,683 | ||||||
| Deferred commitment fee, net of amortization of |
– | 839 | ||||||
| Right to use asset | 35 | – | ||||||
| Other assets, including equipment, net | 49 | 38 | ||||||
| Total non-current assets | 84 | 85,453 | ||||||
| Total assets | $ | 7,779 | $ | 99,129 | ||||
| Liabilities and Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 2,836 | $ | 1,865 | ||||
| Lease liability - current, including interest | 40 | – | ||||||
| Other current liabilities | 3 | – | ||||||
| Total current liabilities | 2,879 | 1,865 | ||||||
| Non-current liabilities | ||||||||
| Lease liability - non-current | 7 | – | ||||||
| Warrant liability | 1,564 | – | ||||||
| Deferred tax liability | – | 10,564 | ||||||
| Deferred purchase price payable - Tarus | – | 7,179 | ||||||
| Deferred obligation - iOx milestone | – | 4,126 | ||||||
| Total non-current liabilities | 1,571 | 21,869 | ||||||
| Total liabilities | 4,450 | 23,734 | ||||||
| Shareholders’ Equity | ||||||||
| Capital stock | 219,499 | 218,782 | ||||||
| Stock option reserve | 23,841 | 21,204 | ||||||
| Accumulated other comprehensive loss | – | (4,325 | ) | |||||
| Accumulated deficit | (239,318 | ) | (159,616 | ) | ||||
| Total equity attributable to owners of the Company | 4,022 | 76,045 | ||||||
| Non-controlling interest | (693 | ) | (650 | ) | ||||
| Total equity | 3,329 | 75,395 | ||||||
| Total liabilities and equity | $ | 7,779 | $ | 99,129 | ||||
| Commitments and Contingent Liabilities | ||||||||
Source: Portage Biotech Inc.