Nabriva Therapeutics plc (NBRV) is a biopharmaceutical company that historically engaged in the commercialization and research and development of novel anti-infective agents to treat serious infections. The company has the commercial rights to an approved product, XENLETA, as well as a development product candidate, CONTEPO.
Recent Developments
In January 2023, Nabriva's board of directors approved a plan to preserve the company's cash to adequately fund an orderly wind down of its operations, referred to as the Cash Preservation Plan. As part of this plan, Nabriva has reduced its operations to those necessary to make XENLETA commercially available to wholesale customers, identify and explore strategic options for its assets, and wind down its business. The company has terminated all of its employees and has no intention of resuming any active sales promotion or research and development activities.
Financials
For the full year 2022, Nabriva reported annual revenue of $35.7 million, down from $59.1 million in 2021. The company's annual net loss widened to $57.2 million in 2022, compared to a net loss of $48.1 million in the prior year. Nabriva's annual operating cash flow was -$36.7 million, and its annual free cash flow was -$36.9 million in 2022.
In the first quarter of 2023, Nabriva's total revenue decreased to $4.8 million, compared to $8.0 million in the same period of 2022. The company's net loss for the quarter was $8.7 million, compared to a net loss of $11.8 million in Q1 2022. Nabriva's operating cash flow was -$2.6 million, and its free cash flow was -$2.6 million in the first quarter of 2023.
For the second quarter of 2023, Nabriva reported total revenue of $2.2 million, down from $9.2 million in the same period of the prior year. The company's net loss for Q2 2023 was $12.1 million, compared to a net loss of $11.1 million in Q2 2022. Nabriva's operating cash flow was -$2.5 million, and its free cash flow was -$2.5 million in the second quarter of 2023.
The decrease in Nabriva's revenue and widening of its net losses in 2022 and the first half of 2023 were primarily due to the company's decision to wind down its operations. As part of the Cash Preservation Plan, Nabriva terminated its agreement with the contract sales organization responsible for promoting its products and transitioned the distribution of SIVEXTRO back to Merck & Co. Inc. effective June 30, 2023. The company also recorded significant inventory impairment charges related to XENLETA and SIVEXTRO as a result of its decision to wind down.
Liquidity
Nabriva's liquidity position has been significantly impacted by the wind down of its operations. As of June 30, 2023, the company had cash, cash equivalents, and restricted cash of $2.3 million. Based on its current operating plans, Nabriva expects that its existing cash resources will be sufficient to enable it to fund its operating expenses and debt service obligations through the end of October 2023.
In July 2023, Nabriva entered into an Asset Purchase Agreement with Sumitomo Pharma Co., Ltd. to sell certain assets and rights related to the development, manufacture, marketing, and commercialization of lefamulin in China, Hong Kong, Macau, and Taiwan for $15.0 million. The company received $2.8 million in cash from this transaction, with the remaining funds used to settle obligations with contract manufacturing organizations.
Following the Sumitomo transaction, Nabriva is currently focused on the sale of its remaining assets, including CONTEPO. The company plans to initiate steps to exit from its public reporting requirements under the Exchange Act in order to further curtail its expenses. However, the timing and outcome of this process remain uncertain, and Nabriva will continue to incur expenses while it carries out the orderly wind down of its operations.
Risks and Challenges
Nabriva faces significant risks and uncertainties as it winds down its business. The company may not be able to realize the full value of its remaining assets, and it could incur additional costs and liabilities related to the wind down process. Furthermore, the company's ability to make any distributions to shareholders is subject to significant uncertainty and will depend on the ultimate outcome of the wind down.
Conclusion
Nabriva Therapeutics is in the process of winding down its operations and exploring strategic options for its remaining assets. The company's financial performance has deteriorated as a result of its decision to cease active commercialization and research and development activities. Nabriva's liquidity position is limited, and it faces significant risks and uncertainties as it navigates the wind down process. Investors should closely monitor the company's progress and any updates regarding the potential sale or disposition of its remaining assets.