MiRagen reports loss, effects reverse stock split

BOULDER — miRagen Therapeutics Inc. (Nasdaq: MGEN), a Boulder-based biotechnology company developing new treatments for patients with diseases that are underserved by current therapies, reported a net loss of $5.5 million for the third quarter ended Sept. 30, compared with a net loss of $11.2 million for the same period a year ago.

The most-recent loss amounted to 10 cents per share, compared with a loss of 36 cents per share in the third quarter of 2019. MiRagen reported no revenues for the quarter.

Effective Thursday, miRagen effected a reverse stock split of its common stock at a ratio of 1-for-15. Trading of the stock will begin on a split-adjusted basis when markets open on Nov. 13. The stock will continue to trade on the Nasdaq Capital Market under the ticker symbol “MGEN.”

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MiRagen’s stockholders approved the reverse stock split and granted miRagen’s board of directors the authority to effect a reverse stock split at miRagen’s annual meeting of shareholders held on May 21, 2020.

Nasdaq in October warned miRagen that it could be delisted if its stock price remained below $1 through April 2021. It was the second such warning received by the company in the previous 12 months. A reverse stock split reduces the number of shares outstanding, theoretically increasing the value of remaining shares.

The company recently completed the acquisition of Viridian Therapeutics Inc., which develops treatments for thyroid-related eye diseases.

“With our recent acquisition of Viridian Therapeutics, concurrent financing and senior leadership additions, we believe miRagen is well positioned to advance the development of new treatments designed for patients with diseases that are underserved by current therapies, beginning with thyroid eye disease, or TED,” miRagen CEO Lee Rauch said in a press release.  “We believe that VRDN-001, an insulin-like growth factor-1 receptor monoclonal antibody, has the potential to become a meaningful treatment option for patients suffering from TED. We plan to initiate a Phase 2 clinical trial of VRDN-001 in 2021.”

Subsequent to the acquisition, miRagen closed a private placement financing resulting in gross proceeds of almost $91 million for the company.

Proceeds are intended primarily to advance clinical studies of VRDN-001. With completion of  the financing, miRagen reported pro forma cash on hand of about $144 million, providing it with a cash runway to take it through 2023.

The financing was led by Fairmount Funds Management LLC, with participation from Venrock Healthcare Capital Partners, BVF Partners L.P., Cormorant Asset Management, Perceptive Advisors, Wellington Management, Ally Bridge Group, Logos Capital, Surveyor Capital, Commodore Capital and Ridgeback Capital, as well as additional undisclosed institutional investors.

MiRagen’s stock closed at $1.07 per share Thursday, down 1 cent.

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