LOS ANGELES (November 17, 2015) – Ritter Pharmaceuticals, Inc. (NASDAQ: RTTR) (“Ritter Pharmaceuticals” or the “Company”), a pharmaceutical company developing novel therapeutic products that modulate the human gut microbiome to treat gastrointestinal diseases, today reported financial results and a business update for the third quarter ended September 30, 2015.
– Closed initial public offering on June 29, 2015 generating gross proceeds of $20 million
– Strengthened senior leadership team with key appointments:
- William J. Sandborn, M.D. to Medical Advisory Board
- AnnKatrin Petersen-Jappelli, M.D., M.SC. as Chief Medical Officer
– Retained William M. Merino as Senior Clinical and Regulatory Advisor
“Following our successful initial public offering in June, we have been working diligently to execute our business strategy and prepare for our upcoming Phase 2b/3 clinical trial of RP-G28, the potentially first FDA-approved therapy for lactose intolerance, in early 2016. We are pleased to say that we have made significant progress with these efforts, efficiently utilizing our capital resources to accomplish the objectives we have in place,” said Michael D. Step, Chief Executive Officer. “Importantly, we have expanded our leadership team with the appointment of Dr. William Sandborn to our Medical Advisory Board. Dr. Sandborn is considered one of the country’s leading experts for gastrointestinal disease and was previously head of the Mayo Clinic. He will be a tremendous asset as we work through the development of RP-G28. Internally, we added Dr. AnnKatrin Petersen-Jappelli to the management team as our Chief Medical Officer. She will be integral to our success as we move forward with our upcoming clinical trial and work to enhance the Company’s portfolio of products.”
Andrew Ritter, President of Ritter Pharmaceuticals, commented, “We are extremely excited about the potential for our lead product candidate in the treatment of lactose intolerance. Most of the current treatment options consist of supplements and adherence to strict diets that avoid dairy, which can be a burden on the daily lives of patients. We believe that RP-G28 can provide an improved quality of life and meet a significant need in this market given the results that have been demonstrated to date with our 30-day treatment regimen. The market for moderate to severe lactose intolerant patients in the US is approximately $1.2 billion, which provides a very sizeable opportunity for Ritter Pharmaceuticals and we look forward to providing these patients with an improved treatment option.”
Third Quarter 2015 Financial Results
For the third quarter of 2015, Ritter Pharmaceuticals reported a net loss attributable to common stockholders of approximately $3.1 million compared to a net loss of approximately $0.4 million for the third quarter of 2014. Basic and diluted net loss per share was ($0.40) for the three months ended September 30, 2015 compared to basic and diluted net loss per share of ($0.92) for the same period in 2014.
Research and development expenses totaled approximately $1.5 million for the third quarter of 2015 compared to approximately $60,000 for the third quarter of 2014. This increase was primarily attributable to our manufacturing ramp-up costs associated with the preparation of product for clinical trials.
For the third quarter of 2015, general and administrative expenses were approximately $1.6 million compared to approximately $200,000 for the third quarter of 2014. This increase was primarily due to the increase in stock based compensation related to the options granted in December 2014, increase in headcount and an increase related to the closing of our initial public offering.
Total operating expenses for the third quarter of 2015 were approximately $3.1 million compared to total operating expenses of approximately $254,000 for the third quarter of 2014. This increase was attributable to the increase in research and development and general and administrative expenses described above.
As of September 30, 2015, Ritter Pharmaceuticals had cash and cash equivalents of $16.2 million after the closing of the Company’s initial public offering of $20 million in gross proceeds (net proceeds of approximately $17.4 million).
About Ritter Pharmaceuticals
Ritter Pharmaceuticals, Inc. develops novel therapeutic products that modulate the human gut microbiome to treat gastrointestinal diseases. The company is advancing human gut health research by exploring the metabolic capacity of gut microbiota, and translating the functionality of these microbiome modulators into safe and effective applications. Their lead drug candidate, RP-G28, has the potential to become the first FDA-approved drug for lactose intolerance, a condition that affects more than one billion people worldwide.
This release may contain forward-looking statements, which express the current beliefs and expectations of Ritter Pharmaceuticals’ management. Such statements involve a number of known and unknown risks and uncertainties that could cause the company’s future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Any statements contained herein that do not describe historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those discussed in such forward-looking statements. These forward-looking statements are made only as of the date hereof, and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.