ASLAN Pharmaceuticals Reports First Quarter 2020 Financial Results and Provides Corporate Update

May 11, 2020

SINGAPORE, May 11, 2020 (GLOBE NEWSWIRE) -- ASLAN Pharmaceuticals (Nasdaq:ASLN, TPEx:6497), a clinical-stage immunology and oncology focused biopharmaceutical company developing innovative treatments to transform the lives of patients, today reported financial results for the first quarter ended 31 March 2020 and provided an update on its clinical activities.

Dr Carl Firth, Chief Executive Officer, ASLAN Pharmaceuticals, said: “The COVID-19 pandemic has brought about unprecedented changes and affected many worldwide. We have been putting strategies in place to mitigate risks to our development programs, including opening sites in different geographies where restrictions are easing. We are also taking steps to ensure that we emerge from this situation stronger and ready to initiate our planned phase 2b study of ASLAN004 for atopic dermatitis in 1H 2021, building our US presence as we grow a team there and prepare to file an Investigational New Drug application with the US FDA.”

First quarter 2020 and recent business highlights

Clinical development

ASLAN004

  • As announced on 13 April, recruitment for the second dose cohort of the multiple ascending dose (MAD) study in atopic dermatitis (AD) has been paused in light of government restrictions in Singapore to contain the spread of COVID-19. ASLAN is closely monitoring government guidance around the restrictions, which were extended until 1 June 2020 on 21 April.
  • ASLAN still expects to announce unblinded, interim data from the study later this year but will review the timelines when the tightened restrictions are lifted in Singapore and recruitment into the study recommences.
  • To accelerate recruitment, ASLAN has identified several clinical sites in Australia that could join the ongoing MAD study.

Varlitinib

  • Two abstracts on varlitinib have been accepted for presentation at the American Society of Clinical Oncology (ASCO) virtual congress on 29 May. An abstract on the results from the TreeTopp study was accepted for poster presentation and the second abstract, on the comparison of therapeutic responses by using CT imaging, will be available in the virtual library.

Anticipated upcoming milestones for ASLAN004

  • Interim, unblinded data from the 3 dose cohorts (up to 24 patients) expected in 2H 2020, and initiation of the expansion cohort (an additional 18 patients).
  • Opening of clinical trial sites in Australia and filing of IND application with the US FDA in the middle of 2020.
  • Completion of MAD clinical trial in moderate-to-severe AD patients in 1H 2021.
  • Initiation of Phase 2b study of ASLAN004 for AD in 1H 2021.

First quarter 2020 financial highlights

  • Cash used in operations for the first quarter of 2020 was US$5.2 million compared to US$7.2 million in the same period in 2019.
  • Research and development expenses were US$2.4 million in the first quarter of 2020 compared to US$4.4 million in the first quarter of 2019. The decrease was driven by the completion of clinical studies related to varlitinib and lower manufacturing expenses.
  • General and administrative expenses were US$1.0 million in the first quarter of 2020 compared to US$2.3 million in the first quarter of 2019. The decrease was primarily due to earlier restructuring efforts which resulted in a decrease in headcount and staffing costs.
  • Net loss for the first quarter of 2020 was US$3.0 million compared to a net loss of US$4.3 million for the first quarter of 2019.
  • Cash, cash equivalents and short-term investments totaled US$16.9 million as of 31 March 2020 compared to US$22.2 million as of 31 December 2019. Weighted average shares outstanding for the first quarter of 2020 was 190.0 million compared to 160.2 million for the first quarter of 2019. One American Depositary Share is the equivalent of five ordinary shares.             



ASLAN Pharmaceuticals Limited
CONSOLIDATED BALANCE SHEET1
(in US dollars)
         
    December 31, 2019
(audited)		   March 31, 2020
(unaudited)
ASSETS        
         
CURRENT ASSETS        
Cash and cash equivalents   $ 22,203,031     $ 16,894,299  
Accounts receivable     -       -  
Prepayments     68,923       185,430  
Total current assets     22,271,954       17,079,729  
         
NON-CURRENT ASSETS        
Financial assets at fair value through profit or loss     68,256       73,928  
Financial assets at fair value through other comprehensive income     132,160       97,153  
Property, plant and equipment     38,333       29,718  
Right-of-use assets     727,866       661,153  
Intangible assets     2,845       1,867  
Refundable deposits     108,076       108,076  
Total non-current assets     1,077,536       971,895  
         
TOTAL ASSETS   $     23,349,490     $     18,051,624  
         
LIABILITIES AND EQUITY        
         
CURRENT LIABILITIES        
Trade payables   $ 1,871,843     $ 1,363,914  
Other payables     3,246,842       2,188,744  
Lease Liabilities - current     264,543       268,170  
Total current liabilities     5,383,228       3,820,828  
         
NON-CURRENT LIABILITIES        
Financial liabilities at fair value through profit or loss     262,350       262,350  
Long-term borrowings     17,065,305       16,706,400  
Long-term borrowing from related parties     566,176       586,749  
Lease Liabilities - non-current     490,835       421,895  
Other non-current liabilities     184,870       125,514  
Total non-current liabilities     18,569,536       18,102,908  
         
  Total liabilities     23,952,764       21,923,736  
         
EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE COMPANY        
Ordinary shares     61,366,844       61,366,844  
Capital surplus     116,495,710       116,495,710  
Accumulated deficits     (179,484,825 )     (182,531,530 )
Other reserves     (55,084 )     (90,091 )
Total equity attributable to stockholders of the Company     (1,677,355 )     (4,759,067 )
         
NON-CONTROLLING INTERESTS     1,074,081       886,955  
Total equity     (603,274 )     (3,872,112 )
         
TOTAL LIABILITIES AND EQUITY   $     23,349,490     $     18,051,624    
                 



ASLAN Pharmaceuticals Limited
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)1
(in US dollars, unaudited)
     
    For the Three Months Ended March 31
      2019       2020  
NET REVENUE   $ 3,000,000     $ -  
         
COST OF REVENUE     (100,000 )     -  
         
GROSS PROFIT     2,900,000       -  
         
OPERATING EXPENSES        
General and administrative expenses     (2,256,361 )     (997,543 )
Research and development expenses     (4,449,532 )     (2,354,616 )
Total operating expenses     (6,705,893 )     (3,352,159 )
         
LOSS FROM OPERATIONS     (3,805,893 )     (3,352,159 )
         
NON-OPERATING INCOME AND EXPENSES        
Interest income     69,024       102  
Other gains and losses     (404,555 )     457,251  
Finance costs     (199,700 )     (339,025 )
Total non-operating income and expenses     (535,231 )     118,328  
         
LOSS BEFORE INCOME TAX     (4,341,124 )     (3,233,831 )
         
INCOME TAX EXPENSE     (2,918 )     -  
         
NET LOSS FOR THE PERIOD     (4,344,042 )     (3,233,831 )
         
OTHER COMPREHENSIVE LOSS        
Items that will not be reclassified subsequently to profit or loss:        
Unrealized loss on investments in equity instruments at fair value through other comprehensive income     -       (35,007 )
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD   $ (4,344,042 )   $ (3,268,838 )
         
NET LOSS ATTRIBUTABLE TO:        
Stockholders of the Company   $ (4,344,042 )   $ (3,046,705 )
Non-controlling interests     -       (187,126 )
    $ (4,344,042 )   $ (3,233,831 )
         
TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO:        
Stockholders of the Company   $ (4,344,042 )   $ (3,081,712 )
Non-controlling interests     -       (187,126 )
    $ (4,344,042 )   $ (3,268,838 )
         
LOSS PER SHARE        
Basic and diluted   $ (0.03 )   $ (0.02 )
Weighed-avg. shares outstanding (in thousand)     160,249       189,955  

1 Financial Statements in US dollars are prepared by the company and are unaudited by certified public accountant as of 31 Mar 2020.

Media and IR contacts

Emma Thompson
Spurwing Communications
Tel: +65 6751 2021
Email: ASLAN@spurwingcomms.com
 		 Robert Uhl
Westwicke Partners
Tel: +1 858 356 5932
Email: robert.uhl@westwicke.com

About ASLAN Pharmaceuticals
ASLAN Pharmaceuticals (Nasdaq:ASLN, TPEx:6497) is a clinical-stage immunology and oncology focused biopharmaceutical company developing innovative treatments to transform the lives of patients. Led by a senior management team with extensive experience in global development and commercialisation, ASLAN has a clinical portfolio comprised of a first in class monoclonal therapy, ASLAN004, that is being developed in atopic dermatitis and other immunology indications, and a small molecule inhibitor targeting oncology. ASLAN’s partners include Almirall, Array BioPharma, Bristol-Myers Squibb, and CSL. For additional information please visit www.aslanpharma.com.

Forward looking statements

This release and the accompanying financial information, if any, contains forward-looking statements. These statements are based on the current beliefs and expectations of the management of ASLAN Pharmaceuticals Limited and/or its affiliates (the "Company"). These forward-looking statements may include, but are not limited to, statements regarding the Company’s business strategy, the Company’s plans to develop and commercialise its product candidates, the safety and efficacy of the Company’s product candidates, the Company’s plans and expected timing with respect to regulatory filings and approvals, and the size and growth potential of the markets for the Company’s product candidates. The Company’s estimates, projections and other forward-looking statements are based on management's current assumptions and expectations of future events and trends, which affect or may affect the Company’s business, strategy, operations or financial performance, and inherently involve significant known and unknown risks and uncertainties.  Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation the risk factors described in the Company’s US Securities and Exchange Commission filings and reports (Commission File No. 001-38475), including the Company’s prospectus dated May 8, 2018 filed with the US Securities and Exchange Commission on such date.  

All statements other than statements of historical fact are forward-looking statements. The words “believe,” “may,” “might,” “could,” “will,” “aim,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plan,” or the negative of those terms, and similar expressions that convey uncertainty of future events or outcomes are intended to identify estimates, projections and other forward-looking statements. Estimates, projections and other forward-looking statements speak only as of the date they were made, and, except to the extent required by law, the Company undertakes no obligation to update or review any estimate, projection or forward-looking statement. 

Source: ASLAN PHARMACEUTICALS LIMITED