Media Coverage

KindredBio sees net loss rise as it increases commercialization efforts

Mar 02, 2018 - Animal Pharm
By Sian Lazell 
Animal Pharm
March 2, 2018

Kindred Biosciences has reported a higher net loss in the fourth quarter of 2017, as it advances its pipeline and works towards commercialization.

Loss in Q4 was up 67% to $9.7 million on the back of higher general expenses and R&D. General and administrative expenses increased by 101% to $4.8m, while R&D expenditure was up 46% to $5.1m.

KindredBio's full-year results showed a similar performance. The firm's net loss over the 12 months ended December 31, 2017, amounted to $30.9m (+37%). General and administrative expenses came to nearly $14m (+68%) while R&D costs totaled $17.7m (+27%).

KindredBio attributed the rise in costs in 2017 to: increased headcount; higher marketing and corporate expenses related to pre-launch activities for Zimeta Oral; establishing a small commercial team; increased clinical trial costs related to the pivotal field effectiveness study of Zimeta Oral; and higher biologics manufacturing and lab supplies expenses.

KindredBio is developing Zimeta Oral for the control of pyrexia in horses and gained positive results from a pivotal field effectiveness study of the product at the end of 2017. Around the same time, the firm submitted a marketing authorization application for Mirataz (mirtazapine transdermal gel) in Europe. Mirataz is a transdermal formulation of mirtazapine to be used in cats for the management of weight loss.

Chief executive of the firm Richard Chin said: "We are very pleased with our progress in 2017. In the space of a single year, we announced positive pivotal results for Zimeta Oral – which is our third consecutive positive pivotal study – filed for registration of Mirataz in Europe, commissioned a cGMP biologics plant in California, purchased a 180,000 square foot manufacturing plant in Kansas, and announced positive pilot study results for multiple molecules.

"Last year, we also became the leading veterinary biopharmaceutical start-up as measured by market capitalization, a significant milestone that is a testament to our business model, and our team.

"We still expect the approval of Mirataz within the first half of this year, more likely the first quarter than the second, and we still continue to expect approval of Zimeta in the second quarter of this year.

"On the pipeline front, we are hitting full stride on our biologics programs. We have initiated a pilot efficacy studies for epoCat [a long-acting feline recombinant erythropoietin for the control of non-regenerative anemia in cats] and for some of the atopic dermatitis candidates. The current market leader in the atopic dermatitis deal is expecting over $500m in sales in this market, as some of you know. We believe that our products have the potential to be very competitive and we believe that we're the only company with mid-clinical stage atopic dermatitis candidates.

"Similarly, we're making progress on our small molecules with very promising results from some of the programs. And in fact, given the successes across our pipelines we will need to prioritize because the success rate is actually higher than we expected and we're seeing lot less attrition than we thought we would.

"In summary, we're very excited about the year ahead. We expect to have two products approved, we're advancing our pipeline, we're continuing to build a world-class team, we're building a strong track record of execution."

Despite a continued widening of net loss, the value of KindredBio's pipeline progress is attracting investor interest. In December, the firm's share price hit its highest value for three years, boosted by the milestones it achieved in 2017.

Reprinted with permission of Animal Pharm News




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