Gain Therapeutics, Inc. Reports Second Quarter 2022 Financial Results and Business Update – BioSpace

BETHESDA, Md., Aug. 08, 2022 (GLOBE NEWSWIRE) -- Gain Therapeutics, Inc. (Nasdaq: GANX) (Gain, or the Company), a biotechnology company transforming drug discovery with its proprietary computational discovery platform identifying novel allosteric binding sites and creating small molecule treatments, today announced its financial results for the second quarter ended June 30, 2022, and highlighted recent corporate progress.

We move into the second half of 2022 having made tangible progress across our pipeline, said Eric Richman, Chief Executive Officer of Gain Therapeutics. We continued to expand the body of positive preclinical data on our lead programs in Parkinsons disease and Gaucher disease, respectively, GT-02287 and GT-02329, which we presented at key scientific conferences, further demonstrating the broad potential of our transformational SEE-Tx drug discovery platform.

SEE-Tx integrates advances in structural biology and supercomputing technology using a proprietary, patented algorithm to identify unique, never-before-described druggable binding sites on proteins in a fraction of the time of traditional pharmaceutical methods. This revolutionary technology positions Gain at the forefront of modern drug discovery approaches as we seek to break traditional drug discovery barriers and deploy leading-edge science to accelerate the discovery of novel therapies.

Mr. Richman continued: We are very encouraged by the accumulating preclinical data, which demonstrate proof-of-concept of the unique, potentially disease-modifying mechanism of action of these compounds. Based on these data, we believe that our first-in-class small molecule candidates will deliver upon our mission to provide new disease-modifying treatments for underserved patients suffering from genetically defined neurodegenerative diseases and lysosomal storage disorders. We look forward to continuing our progress and moving our lead Parkinsons and Gaucher disease candidates, GT-02287 and GT-02329, through preclinical development and into the clinic.

Business and Recent Developments

Upcoming Milestones

Financial Results

Revenues were $0.95 million for the three-month period ended June 30, 2022 compared to $0.89 million for the same period in 2021. The increase was primarily attributable to the timing and scope of development services under the collaboration agreement with Zentalis Pharmaceuticals.

Research and development expenses totaled $2.58 million for the three-month period ended June 30, 2022 compared to $1.79 million for the same period in 2021, an increase of $0.79 million. The increase in research and development expenses was primarily driven by increased program development activities related to the advancement of the Companys pre-clinical pipeline, as well as increased personnel-related costs resulting from an increase in employee headcount, which includes the impact of non-cash stock-based compensation.

General and administrative expenses were $2.69 million for the three-month period ended June 30, 2022 compared to $1.81 million for the same period of 2021, an increase of $0.88 million. This increase was primarily due to an increase in personnel-related costs resulting from an increase in employee headcount, which includes the impact of non-cash stock-based compensation, an increase in expenses for legal fees relating to IP and corporate matters, and an increase in professional fees for accounting and investor relations as we continue to expand our business and build management infrastructure.

Total operating expenses increased to $5.27 million, which include the impact of non-cash stock-based compensation of $0.31 million, compared to $3.60 million in the second quarter 2021, which include the impact of non-cash stock-based compensation and warrants of $0.65 million.

Net loss was $5.08 million compared to $3.56 million in the second quarter 2021. The increase in net loss was due to increased research and development expenses, as well as an increase in general and administrative expenses primarily related to investments in the Companys infrastructure as a publicly traded company.

GAAP basic and diluted net loss per share was $0.43, compared to basic and diluted net loss per share of $0.30 in the second quarter 2021.

Cash, cash equivalents and marketable securities were $29.1 million as of June 30, 2022 compared to $36.8 million at December 31, 2021.

GAIN THERAPEUTICS,INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

GAIN THERAPEUTICS,INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

About Gain Therapeutics, Inc. Gain Therapeutics, Inc. is transforming drug discovery with its proprietary computational discovery platform identifying novel allosteric binding sites and creating small molecule treatments to address unmet medical needs. The ability to identify never-seen-before allosteric targets on proteins involved in diseases across the full spectrum of therapeutic areas provides opportunities for a range of drug-protein interactions, including protein stabilization, protein destabilization, targeted protein degradation, allosteric inhibition, and allosteric activation. Gains pipeline spans neurodegenerative diseases, lysosomal storage disorders, metabolic diseases, and oncology. Gains lead program in Parkinsons disease has been awarded funding support from The Michael J. Fox Foundation for Parkinsons Research (MJFF) and The Silverstein Foundation for Parkinsons with GBA, as well as from the Eurostars-2 joint program with co-funding from the European Union Horizon 2020 research and Innosuisse. For more information, please visit https://www.gaintherapeutics.com.

Cautionary Note Regarding Forward-Looking Statements This press release contains "forward-looking statements." In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of these terms and other comparable terminology. These statements are not historical facts but instead represent the Company's belief regarding future results, many of which, by their nature, are inherently uncertain and outside the Company's control. It is possible that actual results, including with respect to any financial forecast or the possibility of any future regulatory approval or filing, may differ materially from those anticipated in these forward-looking statements due to a number of factors, including but not limited to, risks detailed in the Companys Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission on March 25, 2022, as well as other documents that may be filed by the Company from time to time. New risks and uncertainties arise over time, and it is not possible for us to predict all such factors or how they may affect us. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We are under no duty to update any of these forward-looking statements after the date of this earnings release to conform these statements to actual results or revised expectations. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this earnings release.

Investor & Media Contact:

Stacey Jurchison VP, Investor Relations (410) 474-8200 sjurchison@gaintherapeutics.com

Noor Pahlavi Argot Partners (212) 600-1902 Gain@argotpartners.com

Read this article:
Gain Therapeutics, Inc. Reports Second Quarter 2022 Financial Results and Business Update - BioSpace