Ritter Pharmaceuticals, Inc. (NASDAQ:RTTR) Files An 8-K Reports Third Quarter 2016 Financial Results and Provides Business Update

ME Staff
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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 ending September 30, 2016.

Recent Highlights

  • Completed last patient dosing and all monitoring visits in its Phase 2b/3 clinical trial of RP-G28 for the treatment of lactose intolerance on schedule;
  • Topline results of the trial are expected to be announced in the first quarter of 2017;
  • Initiated a 12-month extension study to evaluate the long-term durability of RP-G28 on a subset of Phase 2b/3 clinical trial patients; and
  • Raised gross proceeds of approximately $5,000,000, in an underwritten public offering to support operations and other general corporate purposes.

“The recent months have been of significant importance to Ritter Pharmaceuticals and the development of RP-G28 for the treatment of lactose intolerance,” said Andrew J. Ritter, Co-Founder and President of Ritter Pharmaceuticals. “Notably, we completed patient dosing and monitoring in our Phase 2b/3 clinical trial of RP-G28, which enrolled 377 patients. We accomplished this in less than eight months, which was within the timeline we had laid out for investors, keeping us on path for data announcement in Q1 2017. Not only does this demonstrate solid execution by our clinical team, but it also underscores the significant patient need for a lactose intolerance treatment.”

In the United States alone, lactose intolerance is a large and underserved market with over 40 million Americans suffering from the condition. Current spending on over-the-counter lactose intolerance aids in the United States is estimated at approximately $2.45 billion, but no product on the market today provides reliable or long-term relief. Globally, over a staggering 1 billion individuals suffer from lactose intolerance.

Michael Step, Chief Executive Officer of Ritter Pharmaceuticals further added, “We successfully raised approximately $5 million in the month of October in a follow-on offering, extending our cash runway based on our current cash burn. With the completion of our successful financing and a very significant milestone on the horizon, we are excited about the Company’s prospects in 2017 and beyond.”

Third Quarter 2016 Financial Results

For the third quarter of 2016, Ritter Pharmaceuticals reported a net loss attributable to common stockholders of approximately $3.5 million compared to a net loss of approximately $3.1 million for the third quarter of 2015. Basic and diluted net loss per share was $0.41 for the three months ended September 30, 2016 compared to basic and diluted net loss per share of $0.40 for the same period in 2015.

Research and development expenses totaled approximately $2.3 million for the quarter ended September 30, 2016 compared to approximately $1.5 million for the comparable period in 2015. This increase was primarily attributable to the Phase 2b/3 clinical trial that was ongoing during the quarter.

General and administrative expenses for the third quarter of 2016 were approximately $1.1 million compared to approximately $1.6 million for the third quarter of 2015. This decrease was primarily due to a decrease of approximately $0.5 million in stock-based compensation expense for the third quarter of 2016 as compared to the third quarter of 2015.

Total operating expenses for the third quarter of 2016 were approximately $3.5 million, compared to approximately $3.1 for the previous year period.

As of September 30, 2016, Ritter Pharmaceuticals had cash and cash equivalents of approximately $8.5 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. The Company’s 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.