Portage Biotech Inc. (NASDAQ: PRTG) (“Portage” or the “Company”) a clinical-stage immuno-oncology company focused on the development of therapies and treatments targeting cancer treatment resistance, today announced financial results for the fiscal year ended March 31, 2021.
“Over the past year, we’ve transformed Portage, positioning the Company to capitalize on our promising portfolio of immuno-oncology platforms and assets as well as leverage our innovative drug development engine,” said Dr. Ian Walters, chief executive officer of Portage Biotech. “Throughout this transformation, we’ve maintained efficiency in our capital expenditures and operations to maximize value for shareholders thanks to the support of our lean, experienced team. Our efficiency coupled with our recent financing provides us with sufficient cash runway to complete Phase 1 and Phase 2 clinical trials for our lead invariant natural killer T cell (iNKT) agonists and is our first with formal biotech institutional support. We believe iNKTs have the potential to re-sensitize PD-1 tumors and could significantly expand the PD-1 market opportunity. With sufficient resources now in place, we are poised to advance our iNKT agonists and other assets through multiple data milestones and other value-driving catalysts in the coming year.”
Financial & Business Highlights from FY 2021 (April 2020 – March 2021) and Recent Weeks
Clinical Highlights from FY 2021 (April 2020 – March 2021) and Recent Weeks
Financial Results FY 2021 (April 2020 – March 2021)
The Company generated a net loss of $17.2 million in fiscal year 2021, compared to a net loss of $7.2 million in fiscal year 2020, an increase in net loss of $10.0 million year over year. Operating expenses, which include research and development and general and administrative expenses, were $12.4 million in fiscal year 2021, compared to $6.0 million in fiscal year 2020, an increase of $6.4 million. Operating expenses included $8.8 million of non-cash stock-based compensation expense in fiscal year 2021, compared to $2.1 million in fiscal year 2020.
Research and development ("R&D") costs increased by $3.2 million, or approximately 78%, from $4.1 million in fiscal year 2020, to $7.3 million in fiscal year 2021. The increase was attributable to non-cash stock-based compensation expense associated with grants made under the 2021 Equity Incentive Plan of $5.1 million, partially offset by a decrease in iOx related stock-based compensation expense of $0.8 million. Finally, fiscal 2021 development was slowed by the impact of the pandemic.
General and administrative ("G&A") expenses increased by $3.2 million, from $1.9 million in fiscal year 2020, to $5.1 million in fiscal year 2021. The principal reason for the increase was the $2.8 million of non-cash stock-based compensation expense associated with the Company’s 2021 Equity Incentive Plan in fiscal 2021. Additionally, the Company incurred approximately $0.2 million relating to initiatives associated with a corporate restructuring and business development.
Other items of income and expense were substantially non-operating in nature and were $2.5 million net expense in fiscal year 2021, compared to $0.5 million net expense in fiscal year 2020. $2.0 million of the net expense in fiscal year 2021 was non-cash. Other items of income and expense included:
Additionally, the Company reflected net deferred income tax provisions of $2.3 million and $0.7 million in the fiscal years 2021 and 2020, respectively.
As of June 30, 2021, the Company had approximately $28.6 million of cash on hand.
About Portage Biotech Inc.
Portage is a clinical-stage immuno-oncology company advancing first-in-class therapies that target known checkpoint resistance pathways to improve long-term treatment response and quality of life in patients with evasive cancers. The Company’s access to next-generation technologies coupled with a deep understanding of biological mechanisms enables the identification of the most promising clinical therapies and product development strategies that accelerate these medicines through the translational pipeline. Portage’s portfolio consists of five diverse platforms, leveraging delivery by intratumorals, nanoparticles, liposomes, aptamers, and virus-like particles. Within these five platforms, Portage has 10 products currently in development with multiple clinical readouts expected over the next 12-24 months. For more information, please visit www.portagebiotech.com, follow us on Twitter at @PortageBiotech or find us on LinkedIn at Portage Biotech Inc.
Forward-Looking Statements
This news release contains statements about the Company’s information that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof, and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law.
FOR MORE INFORMATION, PLEASE CONTACT:
Investor Relations
Chuck Padala
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Media Relations
Kate Caruso-Sharpe
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-tables to follow-
PORTAGE BIOTECH INC.
Consolidated Statements of Operations and Comprehensive Income (Loss)
(U.S. Dollars in thousands, except per share amounts)
| Years Ended March 31, | |||||||||||
| 2021 | 2020 | 2019 | |||||||||
| Expenses | |||||||||||
| Research and development | $ | 7,312 | $ | 4,108 | $ | 1,907 | |||||
| General and administrative expenses | 5,128 | 1,870 | 857 | ||||||||
| Loss from operations | (12,440 | ) | (5,978 | ) | (2,764 | ) | |||||
| Gain on sale of marketable equity securities | 72 | – | – | ||||||||
| Foreign exchange transaction gain (loss) | – | 6 | (691 | ) | |||||||
| Change in fair value of warrant liability | (790 | ) | 24 | – | |||||||
| (Loss) on equity issued at a discount | (1,256 | ) | – | – | |||||||
| Loss on extinguishment of notes payable | (223 | ) | (33 | ) | – | ||||||
| Share of (loss) income in associate accounted for using equity method | (490 | ) | 18 | (162 | ) | ||||||
| Gain on disposition of subsidiaries | 412 | – | – | ||||||||
| Interest income | – | 11 | 111 | ||||||||
| Interest expense | (177 | ) | (557 | ) | (88 | ) | |||||
| Loss before provision for income taxes | (14,892 | ) | (6,509 | ) | (3,594 | ) | |||||
| Income tax (expense) | (2,297 | ) | (740 | ) | – | ||||||
| Net (loss) | (17,189 | ) | (7,249 | ) | (3,594 | ) | |||||
| Other comprehensive income (loss) | |||||||||||
| Net unrealized gain on investments | – | 876 | 50 | ||||||||
| Total comprehensive (loss) for year | $ | (17,189 | ) | $ | (6,373 | ) | $ | (3,544 | ) | ||
| Net (loss) attributable to: | |||||||||||
| Owners of the Company | $ | (15,833 | ) | $ | (5,333 | ) | $ | (2,635 | ) | ||
| Non-controlling interest | (1,356 | ) | (1,916 | ) | (959 | ) | |||||
| $ | (17,189 | ) | $ | (7,249 | ) | $ | (3,594 | ) | |||
| Comprehensive (loss) attributable to: | |||||||||||
| Owners of the Company | $ | (15,833 | ) | $ | (4,457 | ) | $ | (2,585 | ) | ||
| Non-controlling interest | (1,356 | ) | (1,916 | ) | (959 | ) | |||||
| $ | (17,189 | ) | $ | (6,373 | ) | $ | (3,544 | ) | |||
| (Loss) per share | |||||||||||
| Basic and diluted | $ | (1.35 | ) | $ | (0.49 | ) | $ | (0.55 | ) | ||
| Weighted average shares outstanding | |||||||||||
| Basic and diluted | 11,733 | 10,952 | 4,820 | ||||||||
PORTAGE BIOTECH INC.
Consolidated Statements of Financial Position
(U.S. Dollars in thousands)
| March 31, | ||||||||
| 2021 | 2020 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 2,770 | $ | 3,152 | ||||
| Prepaid expenses and other receivables | 2,176 | 574 | ||||||
| Investments in marketable equity securities | – | 68 | ||||||
| 4,946 | 3,794 | |||||||
| Long-term assets | ||||||||
| Long-term portion of other receivables | 22 | 34 | ||||||
| Investment in associates | 1,735 | 1,225 | ||||||
| Investment in private companies | 7,409 | 7,409 | ||||||
| Goodwill | 43,324 | 43,324 | ||||||
| In-process research and development | 117,388 | 117,388 | ||||||
| Other assets | 36 | – | ||||||
| Total assets | $ | 174,860 | $ | 173,174 | ||||
| Liabilities and Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | 1,938 | $ | 1,268 | ||||
| Warrant liabilities | 1,120 | – | ||||||
| Unsecured notes payable | 150 | 300 | ||||||
| Advance from related party | – | 1,000 | ||||||
| 3,208 | 2,568 | |||||||
| Non-current liabilities | ||||||||
| Unsecured notes payable | – | 3,361 | ||||||
| Deferred tax | 24,050 | 21,604 | ||||||
| 24,050 | 24,965 | |||||||
| Total liabilities | 27,258 | 27,533 | ||||||
| Shareholders’ Equity | ||||||||
| Capital stock | 130,649 | 117,817 | ||||||
| Stock option reserve | 7,977 | 58 | ||||||
| Accumulated other comprehensive income | 958 | 958 | ||||||
| Accumulated deficit | (38,135 | ) | (22,302 | ) | ||||
| Total equity attributed to owners of the Company | 101,449 | 96,531 | ||||||
| Non-controlling interest | 46,153 | 49,110 | ||||||
| Total equity | 147,602 | 145,641 | ||||||
| Total liabilities and equity | $ | 174,860 | $ | 173,174 | ||||
| Commitments and Contingent Liabilities (Note 20) | ||||||||
| Last Trade: | US$4.21 |
| Daily Change: | -0.66 -13.55 |
| Daily Volume: | 18,500 |
| Market Cap: | US$4.420M |
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