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Dec 31, 2019

Denali Therapeutics Q4 2019 Earnings Report

Denali Therapeutics experienced a net loss, decreased collaboration revenue, and increased research and development expenses.

Key Takeaways

Denali Therapeutics reported a net loss for the quarter ended December 31, 2019, compared to net income for the same period in 2018. There was a decrease in collaboration revenue and an increase in research and development expenses.

Net loss of $54.0 million for the quarter ended December 31, 2019, compared to net income of $77.5 million for the quarter ended December 31, 2018.

Collaboration revenue was $4.7 million for the quarter ended December 31, 2019, compared to $125.7 million for the quarter ended December 31, 2018.

Total research and development expenses were $51.6 million for the quarter ended December 31, 2019, compared to $39.9 million for the quarter ended December 31, 2018.

Cash, cash equivalents, and marketable securities were $455.2 million as of December 31, 2019.

Total Revenue
$4.67M
Previous year: $126M
-96.3%
EPS
-$0.56
Previous year: $0.79
-170.9%
Gross Profit
-$46.9M
Previous year: $85.8M
-154.7%
Cash and Equivalents
$79.4M
Previous year: $77.1M
+3.0%
Free Cash Flow
-$50.4M
Previous year: $91.7M
-155.0%
Total Assets
$553M
Previous year: $662M
-16.4%

Denali Therapeutics

Denali Therapeutics

Forward Guidance

Denali expects key milestones in 2020, including advancing its LRRK2 program into late stage clinical testing and establishing clinical biomarker proof-of-concept with its first large molecule program, ETV:IDS (DNL310) in Hunter syndrome.

Positive Outlook

  • Advancing LRRK2 program into late stage clinical testing.
  • Establishing clinical biomarker proof-of-concept with ETV:IDS (DNL310) in Hunter syndrome.
  • Initiating a Phase 1/2 study for DNL310 in Hunter syndrome patients in the first half of 2020.
  • Positive results from a Phase 1b study with DNL201 in patients with Parkinson’s disease.
  • Commenced dosing of its small molecule activator of EIF2B, DNL343, in healthy volunteers.

Challenges Ahead

  • Early stages of clinical drug development.
  • Ability to complete the development and, if approved, commercialization of its product candidates.
  • Risk of the occurrence of any event, change or other circumstance that could give rise to the termination of Denali’s collaboration agreements.
  • Dependence on successful development of its BBB platform technology.
  • Ability to conduct or complete clinical trials on expected timelines.