ARCA Biopharma posts loss, has cash to continue operations through 2021

WESTMINSTER — ARCA Biopharma Inc. (Nasdaq: ABIO) “will need to raise additional capital and/or complete a partnership or other possible strategic transaction to fund future operations” and develop its leading drug candidate, according to the company’s second quarter 2020 earrings report filed this week. 

The company, which is developing a drug known as AB201 that could potentially be used to treat COVID-19, posted a $1.3 million net loss in Q2 compared to a $1.4 million loss in the same period last year. 

“ARCA believes that its current cash and cash equivalents, together with net proceeds of $24.1 million raised in July from sales of its common stock, will be sufficient to fund its operations, at its current cost structure, plus projected costs for the AB201 clinical development program, through the end of the fourth quarter of 2021,” the company reported. 

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ARCA CEO Michael Bristow said in a prepared statement, “As the SARS-CoV-2 pandemic has progressed, serious complications relating to over-activation of the coagulation and immune systems have increasingly been observed in patients hospitalized with severe disease,” ARCA CEO Michael Bristow said in a prepared statement. “Based on previous and emerging work on mechanisms of virus pathogenesis, we believe this evidence implicates involvement of tissue factor pathways of which AB201 is a potent and long-acting inhibitor, providing a strong rationale to evaluate AB201 as a potential therapeutic for COVID-19.  With this rationale along with significant safety data from prior human clinical trials, we look forward to initiating Phase 2 clinical development later this year.”