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Successfully building BioPharma pipeline in high-value indications
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Company plans to advance IND-cleared program into a Phase 1 study in a metabolic disease indication in early 2020
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Strategic corporate shift to fully focus on BioPharma Division unlocks opportunities for non-dilutive capital to fund pipeline
Applied BioSciences Corp.
(OTCQB:APPB) (“Applied” or the “Company”), today announced its financial
results for the second quarter Fiscal Year 2020 ended September 30,
2019. The Company also provided an update on its corporate and clinical
progress.
“We continue to push forward on all fronts as we work to establish
Applied as a leader in the development and commercialization of novel,
science-driven, synthetic endocannabinoid therapeutics /
biopharmaceuticals and impact areas of significant unmet need,”
commented Dr. Raymond Urbanski, Chief Executive Officer of Applied.
“Over the course of the past quarter, we have made notable strides on
the corporate and clinical front and remain diligent in working to drive
value for all stakeholders.”
“We continued to build out our BioPharma division and have
established a Scientific Advisory Board of leading experts in the
endocannabinoid space. We were pleased to have welcomed our inaugural
members Judith Korner, M.D. and Patricia Reggio, Ph.D., who will play an
integral role as we look to optimize our therapeutic pipeline and look
to make additional appointments in the near term to help drive this
business unit forward. Additionally, we have continued to execute on our
robust business development initiatives and remain in late-stage
discussions to in-license our product candidates that we believe have
the potential to address a number of areas with significant unmet need.
In tandem, we continue to remain opportunistic in accessing the
necessary non-dilutive funding and capital through strategic investments
from which we believe will provide us with the foundation and momentum
to move forward.”
Applied BioPharma: developing
science-driven synthetic cannabinoid therapeutics that satisfy unmet
medical needs and continue to drive innovation in the endocannabinoid
space.
The Applied BioPharma division is focused on the development and
commercialization of novel therapeutics that target the endocannabinoid
system (ECS).
Applied Biopharma has to date developed partnerships with leading
academic and research institutions and has exclusively licensed
patented, synthetically derived small molecule candidates which target
the ECS G-protein coupled receptors (GPCRs) e.g., the cannabinoid
receptor 1 and cannabinoid receptor 2, for the treatment of metabolic
diseases (type 2 diabetes, obesity, fatty liver disease) and
inflammation (pulmonary inflammation, optic nerve inflammation following
traumatic brain injury and ischemic/reperfusion injury such as acute
kidney injury post-transplant and acute myocardial infarction (heart
attack).
The Company’s growing pipeline is comprised of selective CB1 and CB2
agonist, inverse agonist and antagonists utilizing multiple scaffolds
and state-of-the-art medicinal chemistry across several academic centers
and institutions.
- Applied expects to advance the first of its preclinical programs into open INDs in 2020.
- ABP-1902, its lead CB2 agonist, intended for mitigating the deleterious effects of ischemic-reperfusion injury.
- ABP-1901, its lead CB2 inverse agonist, which has demonstrated
effectiveness in limiting or reversing damage due to neuroinflammation.
- Applied expects to advance the first of its clinical programs into a Phase 1 study in early to mid-2020.
The Company is actively advancing and seeking additional in-license
opportunities with the goal of developing an industry-leading pipeline
of endocannabinoid system-targeted drug candidates that address
significant unmet needs across a wide range of therapeutic areas.
Applied Products: portfolio
of consumer, animal health, women’s health and sports medicine of
hemp-derived, THC-free, pharmaceutical grade CBD isolates and
distribution products, all of which ship to the majority of U.S., as
well as to multiple non-U.S. countries.
The Applied Products business unit is focused on maximizing top-line
revenue through selective investments in product lines and marketing
campaigns (increase share-of-voice), continually reevaluating the
endocannabinoid Health & Wellness environment for opportunities and
developing and implementing a nutraceutical strategy.
Applied Products has seen a modest year-over-year increase in top
line revenue. At this time the Board, with the understanding that to be
successful in the lucrative yet dynamic and very competitive consumer
CBD space would require significant resource and capital allocations, is
evaluating various strategic options for this business unit.
Trace Analytics, Inc:
Applied’s majority owned subsidiary scalable analytics
cannabis/cannabinoid laboratory poised to meet the demands for mandated
regulatory cannabis/cannabinoid testing.
In July 2019, Trace Analytics was contracted for services with the
Washington State Department of Agriculture (WSDA). This contract
includes testing Industrial Hemp samples and include percentage testing
for post-decarboxylation delta 9-tetrahydrocannabidiol (THC) and delta
9-tetrahydocannabinolic acid (THC-A) to ensure the percentages of
certain cannabinoids are below Federal limits.
Applied is currently in late-stage discussions for a strategic transaction, expected to close by year end.
Upcoming Milestones Expected to Drive Value
- Finalize the in-licensing of product candidates to build pipeline for the Applied BioPharma division.
- Closing on the sale of Trace Analytics leading to the infusion of non-dilutive capital into the company.
- Finalize and execute on the strategic options for Applied Products.
- Successfully execute overall strategy of the Company and business development efforts.
- Engage with key stakeholders in the investment community and execute on the robust effort to raise awareness of the Company.
- Uplist to a National Exchange.
Summary of Financial Results for Second Quarter FY2020 Ended September 30, 2019
For the quarter ended September 30, 2019, the Company reported net
loss of approximately $777,746 or net loss per diluted share of $0.06,
compared to a net loss of approximately $110,423 or a net loss per
diluted share of $0.01, for the quarter ended September 30, 2018.
The Company reported revenues from Applied BioSciences’ CBD product
lines was $169,654 and $59,400 during the six months ended September 30,
2019 and 2018, respectively. The increase reflects higher sales across
all of the Company’s CBD brand product lines, most notably in its
topical products, combined with expansion into sales of bulk hemp seed
and raw CBD. Service revenue resulting from the Company’s lab testing is
attributed solely to the acquisition of Trace Analytics in January
2019, and totaled $286,077 for the six months ended September 30, 2019.
General and administrative expenses increased $519,140 to $707,192
for the three months ended September 30, 2019 as compared to $188,052
for the three months ended September 30, 2018. The increase was mainly
attributable to the acquisition of Trace Analytics and addition of our
Applied BioPharma subsidiary, with general and administrative expenses
for the remainder of the Company.
The Company ended the quarter with $73,412 in cash and cash
equivalents. The Company is actively evaluating opportunities to fund
continued growth in its products and services revenue along with planned
business development activities for Applied BioPharma and anticipates
closing a financing by the end of first quarter Fiscal Year 2020.
About Applied BioSciences Corp.
Applied BioSciences is a vertically integrated company focused on the
development and commercialization of novel, science-driven, synthetic
cannabinoid therapeutics / biopharmaceuticals that target the
endocannabinoid system to treat a wide-range of diseases across multiple
therapeutic areas. We also deliver high-quality consumer and OTC
THC-free CBD products that promote overall health and wellbeing as well
as state-of-the-art testing and analytics capabilities to our customers.
For more information, visit appliedbiocorp.com and connect with the Company on Twitter, Facebook and LinkedIn.
