Fresh Tracks Therapeutics improves performance as board continues exploring M&A options
BOULDER — Fresh Tracks Therapeutics Inc., the Boulder-based pharmaceutical company formerly called Brickell Biotech, saw year-over-year improvement in its bottom and top lines in the fourth quarter of 2022 and for the full 2022 fiscal year.
The improved performance comes during a pivotal time for FTT, which is in the process of examining its options for a merger or sale.
Fresh Tracks posted a net loss of $4.5 million on sales of $2.1 million for the fourth quarter of 2022 compared to a net loss of $6.1 million on $100,000 in sales for the same period in 2021.
For the full fiscal year, Fresh Track trimmed its losses from $39.5 million in 2021 to $21.1 million last year.
The 2022 rebrand of Fresh Tracks, which promoted a new CEO about two months ago amid ongoing financial woes, occurred as the company seeks to pivot away from drugs that combat excessive sweating toward treatments for autoimmune, inflammatory and other debilitating diseases.
Brickell sold off the rights to sofpironium bromide, its excessive-sweating drug, for a $9 million upfront payment, last year to Botanix Pharmaceuticals Ltd., which pledged to make “additional success-based regulatory and sales milestone payments of up to $168 million and tiered earnout payments ranging from high single digits to mid-teen digits on net sales” of the gel, the company said in 2022.
In early March, Fresh Tracks, the stock price of which dipped below $1 per share this month, announced it had hired MTS Health Partners LP to explore its strategic options, which the company said could include “a financing, sale or licensing of assets, acquisition, merger, business combination, or other strategic transaction or series of related transactions.”
The company, in its annual report this week, said that it does “not expect to disclose developments with respect to this process until the evaluation of strategic options has been completed or until the board has concluded disclosure is appropriate or legally required.”
Fresh Tracks raised $6.6 million this month through an at-the-market stock offering. This funding, combined with its cash on hand “will be sufficient to fund its operations for at least the next 12 months,” FTT said.