Exhibit 99.1
RXi Pharmaceuticals Reports Financial Results for the Second Quarter of 2009
Worcester, MA, August 14, 2009 — RXi Pharmaceuticals Corporation (Nasdaq: RXII), a
biopharmaceutical company pursuing the development and commercialization of proprietary
therapeutics based on RNA interference (RNAi), today reported results for the quarter ended June
30, 2009.
Tod Woolf, Ph.D., President and Chief Executive Officer of RXi, commented, “RXi continues to make
significant progress on its RNAi therapeutic platform with advances in research that have the
potential to address multiple large therapeutic markets with unmet medical needs. With the
financing that we recently closed, the Company is well positioned to continue its research with
cutting-edge RNAi technologies and therapeutic developmental programs, continuing its leadership
position in the RNAi therapeutics field.”
Corporate Highlights:
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RXi exercised its option to an exclusive worldwide license to proprietary self-delivery
RNAi technology from Advirna LLC — RXi’s assessment of this novel technology indicated
that it could enable the delivery of RNAi molecules to cells spontaneously upon direct
administration, both in vitro and in vivo, without requiring a delivery vehicle or
transfection formulation. The ability to create self-delivering RNAi therapeutics may
potentially provide significant competitive advantages in efficacy, toxicity, ease of
administration and manufacturing cost. RXi has integrated this technology into its
comprehensive delivery platform to develop a sustainable pipeline of products for unmet
medical needs. |
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$8 Million Public Offering — RXi raised $8 million in a public offering to institutional
investors that will be used for working capital and for general corporate purposes. |
Scientific Achievements:
RXi presented data at various key scientific conferences this quarter.
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Data on self-delivering rxRNA (sd-rxRNA™) was presented at the TIDES Oligonucleotide
and Peptide® Technology and Product Development Conference and IBC’s Drug Discovery and
Development conference. |
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Promising pre-clinical results from our self-delivering rxRNA (sd-rxRNA™) were
presented demonstrating that sd-rxRNA promotes spontaneous cellular uptake of RNAi
therapeutics in vitro. In addition, RXi presented in vivo data that demonstrates that
sd-rxRNAs not only enter liver cells (hepatocytes) spontaneously, but also that
sd-rxRNAs significantly improve the biodistribution of RNAi compounds to the liver.
This positive data demonstrate the potential utility of RXi’s sd-rxRNA™ compounds for
both local and subcutaneous
administration, which could allow a broad range of new areas of RNAi therapeutic
development. |
Financial Highlights:
The Company reported a net loss of $9.3 million, or $0.67 per share, for the six months ended June
30, 2009, compared to a net loss of $7.0 million, or $0.55 per share, for the same period in 2008.
The Company had 13,821,910 common shares outstanding at June 30, 2009, as compared to 13,763,231
common shares outstanding at June 30, 2008.
Research and development expenses for the six months ended June 30, 2009 were $4.4 million,
including approximately $1.4 million in stock based compensation, compared to $3.9 million
including $1.7 million in stock-based compensation, for the six months ended June 30, 2008. The
increase of approximately $0.5 million, or 12.8%, was primarily due to higher staff-related costs
resulting from growth in R&D staff and increased patent application and prosecution expenses,
coupled with a decrease of approximately $0.2 million in stock-based compensation. General and
administrative expenses for the six months ended June 30, 2009 were $4.8 million, including $0.9
million in stock based compensation, compared to $3.2 million, including $0.8 million in stock
based compensation, for the six months ended June 30, 2008. The increase of $1.6 million, or 50.0%,
was primarily due to non-cash expense totaling $1.1 million associated with warrants issued for
business advisory services and common stock issued pursuant to Standby Equity Distribution
Agreement (SEDA) that the Company entered into in January 2009.
As of June 30, 2009, cash and cash equivalents totaled $4.4 million, compared to cash and cash
equivalents of $9.9 million at December 31, 2008. This decrease is due to cash used in operations
of $5.5 million for the six months ended June 30, 2009. On July 31, 2009 the Company entered into
a definitive agreement for the purchase of 2,385,715 shares of its common stock at $3.50 per share,
and warrants to purchase up to 954,286 shares of common stock at an exercise price of $4.50 per
share which will be exercisable beginning on February 4, 2010. The offering closed on August 4,
2009. The Company received approximately $7.8 million in net proceeds from the offering. Proceeds
from the transaction will be used to meet working capital needs and for general corporate purposes.
About RXi Pharmaceuticals Corporation
RXi Pharmaceuticals is a discovery-stage biopharmaceutical company pursuing the development and
potential commercialization of proprietary therapeutics based on RNA interference (RNAi) for the
treatment of human diseases. RXi Pharmaceuticals has a comprehensive RNAi platform that includes
both RNAi compounds and delivery methods. RXi Pharmaceuticals’ rxRNA™ compounds are distinct from
the siRNA compounds used by many other companies developing RNAi therapeutics and are very active
and potent (10-100 pM activity in cell culture) based on the company’s internal research, in
addition to being nuclease resistant and readily manufactured. RXi Pharmaceuticals believes it is
well positioned to compete successfully in the RNAi-based therapeutics market with its accomplished
scientific advisors, including Dr. Craig Mello,
recipient of the 2006 Nobel Prize for his co-discovery of RNAi; a management team that is
experienced in developing RNAi products; and a strong early intellectual property position in RNAi
chemistry and delivery. www.rxipharma.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about
future expectations, plan and future development of RXi Pharmaceutical Corporation’s products and
technologies. These forward-looking statements about future expectations, plans and prospects of
the
development of RXi Pharmaceutical Corporation’s products and technologies involve significant
risks, uncertainties and assumptions, including the risk of delays in satisfying the conditions to
selling any of the securities to YA Global Investments pursuant to the Standby Equity Distribution
Agreement that we have in place with them and the potential adverse impact on the market price of
our securities due to resale by YA Global Investments of securities purchased from the Company if
the Company sells them securities, the risk that the proceeds from the recently completed
securities offering will be insufficient to meet all of the capital needed to support our
operations, the risk that pre-clinical results of our oral delivery technology obtained to date may
not be reproducible in subsequent pre-clinical or clinical trials, the risk that unanticipated
safety or efficacy issues may arise in the course of developing our oral delivery technology, the
risk that the development of our RNAi-based therapeutics may be delayed or may not proceed as
planned and we may not be able to complete development of any RNAi-based product, the risk that the
FDA approval process may be delayed for any drugs that we develop, risks related to development and
commercialization of products by our competitors, risks related to our ability to control the
timing and terms of collaborations with third parties and the possibility that other companies or
organizations may assert patent rights that prevent us from developing our products. Actual results
may differ materially from those RXi Pharmaceuticals Corporation contemplated by these
forward-looking statements. RXi Pharmaceuticals Corporation does not undertake to update any of
these forward-looking statements to reflect a change in its views or events or circumstances that
occur after the date of this release.
RXi Pharmaceuticals Corporation
(A Development Stage Company)
Condensed Statements of Expenses
(in thousands, except share and per share data)
(Unaudited)
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For the Three |
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For the Three |
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For the Six |
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For the Six |
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Months Ended |
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Months Ended |
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Months Ended |
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Months Ended |
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June 30, |
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June 30, |
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June 30, |
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June 30, |
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2009 |
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2008 |
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2009 |
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2008 |
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Research and development
expense |
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$ |
3,026 |
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$ |
2,766 |
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$ |
4,442 |
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$ |
3,854 |
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General and administrative
expense |
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2,049 |
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|
1,580 |
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4,804 |
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|
3,213 |
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Operating loss |
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(5,075 |
) |
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(4,346 |
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(9,246 |
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(7,067 |
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Other income (expense), net |
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(6 |
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28 |
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(6 |
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103 |
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Net loss |
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$ |
(5,081 |
) |
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$ |
(4,318 |
) |
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$ |
(9,252 |
) |
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$ |
(6,964 |
) |
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Net loss per common share: |
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Basic and diluted loss per
share |
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$ |
(0.37 |
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$ |
(0.34 |
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$ |
(0.67 |
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$ |
(0.55 |
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Weighted average common
shares outstanding: |
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Basic and diluted |
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13,812,817 |
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12,743,404 |
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13,812,367 |
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12,713,918 |
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RXi Pharmaceuticals Corporation
(A Development Stage Company)
Condensed Balance Sheets
(in thousands, except share and per share data)
(Unaudited)
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June 30, |
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December 31, |
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2009 |
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2008 |
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Cash and cash equivalents |
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$ |
4,362 |
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$ |
9,856 |
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Prepaid expenses and other current assets |
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333 |
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73 |
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Equipment and furnishings, net |
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391 |
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414 |
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Deposits |
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16 |
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16 |
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Total assets |
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$ |
5,102 |
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$ |
10,359 |
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Accounts payable |
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$ |
580 |
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$ |
394 |
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Accrued expense and other current liabilities |
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1,274 |
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|
976 |
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Current maturities of capital lease obligations |
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14 |
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17 |
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Total current liabilities |
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1,868 |
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|
1,387 |
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Capital lease obligations, net of current maturities |
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11 |
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4 |
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Total liabilities |
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1,879 |
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|
1,391 |
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Total stockholders’ equity |
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3,223 |
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8,968 |
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Total liabilities and stockholders’ equity |
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$ |
5,102 |
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$ |
10,359 |
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