NeuBase Therapeutics, Inc. (NASDAQ:NBSE) is a clinical-stage biopharmaceutical company that has historically focused on developing precision genetic medicines targeting rare, monogenic diseases as well as more common genetic disorders, including cancers. However, the company recently announced a strategic shift, halting further development of its research programs and exploring potential strategic alternatives to maximize shareholder value.
Business Overview
NeuBase has designed and validated a new technology platform called PATrOL™, which utilizes synthetic peptide nucleic acid (PNA) chemistry to directly engage the genome in a sequence-specific manner and address the root causality of diseases. The company's disclosed pipeline included therapeutic candidates for the treatment of myotonic dystrophy type 1 (DM1), Huntington's disease (HD), and certain KRAS-driven cancers.In October 2022, NeuBase announced plans to expand its focus to include the advancement of the differentiated gene editing capabilities of its platform. However, in August 2023, the company's Board of Directors made the determination to halt further development of the company's programs and to conduct a comprehensive exploration of strategic alternatives focused on maximizing shareholder value.
Financial Performance
NeuBase has historically operated at a loss, with no revenue from product sales. For the fiscal year ended September 30, 2022, the company reported a net loss of $34.2 million, with no revenue. The company's annual operating cash flow and free cash flow for the same period were negative $29.0 million and negative $29.5 million, respectively.For the nine months ended September 30, 2023, NeuBase reported a net loss of $9.4 million. The company's quarterly operating cash flow and free cash flow for the third quarter of 2023 were negative $2.8 million and negative $2.8 million, respectively.
Liquidity and Capital Resources
As of September 30, 2023, NeuBase had $12.6 million in cash and cash equivalents. The company expects to continue to incur substantial operating losses and negative cash flows from operations for the foreseeable future and may never become profitable.In August 2023, NeuBase announced a restructuring plan to reduce operating expenses and extend the company's cash runway into the fourth quarter of calendar year 2025 based on current operating plans and estimates. However, the company will likely need to raise additional capital through the issuance of equity or debt or the completion of a licensing transaction for one or more of its pipeline assets to fund its operations.