UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 6-K

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

 

For the month of: August 2017

 

Commission file number: 001-36578

 

BIOBLAST PHARMA LTD.

(Translation of registrant’s name into English)

 

37 Dereh Menechem Begin St., 15th Floor

Tel Aviv 6522042 Israel

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x      Form 40-F ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulations S-T Rule 101(b)(1): _____

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulations S-T Rule 101(b)(7): _____

 

 

 

 

 

CONTENTS

 

This Report of Foreign Private Issuer on Form 6-K of the Registrant consists of the press release issued by the Registrant on August 4, 2017, announcing the Registrant’s financial results for the quarter ended June 30, 2017, which is attached hereto as Exhibit 99.1.

 

The GAAP financial statements and the two first bullet points under the header Post Second Quarter 2017 Activities included in this Form 6-K of the Registrant are incorporated by reference into the registration statement on Form F-3 (File No. 333-206032) and the registration statements on Form S-8 (File No. 333-203114 and File No. 333-210459) of the Registrant, filed with the Securities and Exchange Commission, to be a part thereof from the date on which this report is submitted, to the extent not superseded by documents or reports subsequently filed or furnished.

 

Exhibit No.

 

99.1Press Release issued by Bioblast Pharma Ltd. on August 4, 2017.

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  Bioblast Pharma Ltd.
  (Registrant)
   
   
  By:  /s/ Chaime Orlev
 

Name:

 

Chaime Orlev
Chief Financial Officer and Vice President Finance and Administration

 

Date: August 4, 2017

 

 

 

 

 

Exhibit 99.1

 

 

 

Investor Contact JSB-Partners Contact
Matthew P. Duffy Wolfgang Stoiber
Managing Director Managing Director
LifeSci Advisors LLC JSB-Partners
Matthew@LifeSciAdvisors.com wstoiber@jsb-partners.com
Phone:  212-915-0685 Phone: 978-697-9753

 

 

Bioblast Pharma Reports Second Quarter 2017 Financial Results

 

 

Tel Aviv, Israel, – August 4, 2017 – Bioblast Pharma Ltd. (NasdaqCM: ORPN), a clinical-stage, orphan disease-focused biotechnology company, today announced financial results for the second quarter ended June 30, 2017.

 

Second Quarter 2017 Financial Results and Cash Position

 

·R&D Expenses: Research and development expenses were $0.9 million for the quarter ended June 30, 2017, compared to $1.9 million for the same period in 2016. The decrease was primarily related to reduced clinical trial related activities, specifically as our planned Phase 2b clinical study in Ocular Pharyngeal Muscular Dystrophy patients has not been initiated.

 

·Pre-Commercial Expenses: Pre-commercial expenses were $0.1 million for the quarter ended June 30, 2017, compared to $0.1 million for the same period in 2016.

 

·G&A Expenses: General and administrative expenses were $0.7 million for the quarter ended June 30, 2017, compared to $1.7 million for the same period in 2016. The decrease was primarily related to downsizing of the management team, which took effect primarily in the second quarter of 2016, offset by costs related to a terminated securities offering, announced on April 6, 2017.

 

·Net Loss: For the quarter ended June 30, 2017, net loss attributable to holders of ordinary shares was ($1.6) million, or ($0.10) per basic and diluted share, as compared to a net loss of ($3.7) million, or ($0.22) per share, for the same period in 2016.

 

·Cash Position: Cash, cash equivalents and short-term bank deposits as of June 30, 2017, were $5.2 million, compared to $7.1 million as of March 31, 2017, primarily reflecting our second quarter operating expenditures.

 

 

 

 

 

Post Second Quarter 2017 Activities

 

·As part of the continuing effort to reduce expenditures, the Company announced that Colin Foster and Ralf Rosskamp, MD, have submitted their resignations as members of the Board of Directors, effective August 31, 2017.

 

·The number of employees has been reduced to three, including the Chief Executive Officer, the Chief Medical Officer and the Chief Financial Officer, all of whom are working to assist JSB-Partners, which is the Company’s exclusive advisor to find a third party for partnership or merger opportunities.

 

·In addition, a comprehensive review of operations has identified expenses that have been eliminated or cut back across-the-board.

 

About Bioblast

 

Bioblast Pharma is a clinical-stage biotechnology company committed to developing clinically meaningful therapies for patients with rare and ultra-rare genetic diseases. Bioblast is traded on the NASDAQ under the symbol “ORPN.” For more information, please visit our website: www.BioblastPharma.com, the content of which is not incorporated herein by reference.

 

Forward Looking Statements

 

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. For example, we are using forward-looking statements when we discuss exploring partnership or merger opportunities, and when we imply that our product candidate may successfully treat certain medical conditions. In addition, historic results of scientific research and clinical and preclinical studies do not guarantee that the conclusions of future research or studies will suggest identical or even similar conclusions or that historic results referred to in this press release would not be interpreted differently, in light of additional research and clinical and preclinical study results. Because such statements deal with future events and are based on Bioblast Pharma Ltd.’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of Bioblast Pharma could differ materially from those described in or implied by the statements in this press release, including those discussed under the heading “Risk Factors” in Bioblast Pharma’s annual report on Form 20-F filed with the Securities and Exchange Commission (“SEC”) on February 24, 2017, and in any subsequent filings with the SEC. Except as otherwise required by law, Bioblast Pharma disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date hereof, whether as a result of new information, future events or circumstances or otherwise.

 

 

 

 

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

U.S. dollars in thousands, except share and per share amounts

 

   Three Months Ended   Six Months Ended 
   June 30   June 30 
   2017   2016   2017   2016 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
                 
Research and development  $883   $1,935   $1,982   $3,793 
Pre-commercialization   65    64    471    836 
General and administrative   703    1,723    1,838    3,585 
Total operating expenses   1,651    3,722    4,291    8,214 
Loss from operations   (1,651)   (3,722)   (4,291)   (8,214)
                     
Financial income, net   21    14    29    41 
                     
Loss before taxes on income   (1,630)   (3,708)   (4,262)   (8,173)
                     
Taxes on income   3    (23)   43    106 
                     
Net loss  $(1,633)  $(3,685)  $(4,305)  $(8,279)
                     
Net loss attributable to Ordinary shareholders  $(1,633)  $(3,685)  $(4,305)  $(8,279)
                     
Net loss per share attributable to Ordinary shareholders - basic and diluted  $(0.10)  $(0.22)  $(0.26)  $(0.54)
                     
Weighted average number of Ordinary shares outstanding - basic and diluted   16,452,126    16,391,770    16,421,948    15,429,877 

 

 

 

 

 

CONSOLIDATED BALANCE SHEETS

 

U.S. dollars in thousands, except share amounts

 

   June 30, 2017   December 31, 2016 
   (Unaudited)   (Audited) 
ASSETS          
CURRENT ASSETS:          
Cash and cash equivalents  $5,163   $6,871 
Short-term bank deposits   -    3,007 
Receivables and prepaid expenses   342    663 
Property and equipment, net   9    - 
Total current assets   5,514    10,541 
           
LONG-TERM ASSETS:          
Long-term assets   -    18 
Property and equipment, net   -    71 
Total long-term assets   -    89 
           
TOTAL ASSETS  $5,514   $10,630 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
CURRENT LIABILITIES:          
Trade payables  $89   $700 
Other accounts payable   703    1,231 
Total current liabilities   792    1,931 
           
           
LONG-TERM LIABILITIES   -    - 
           
SHAREHOLDERS’ EQUITY:          
Ordinary shares of NIS 0.01 par value - 50,000,000 shares authorized at June 30, 2017 and December 31, 2016; Issued and outstanding shares 16,711,301 at June 30, 2017 and 16,391,770 at December 31, 2016   46    45 
Additional paid-in capital   48,790    48,463 
Accumulated deficit   (44,114)   (39,809)
Total stockholders’ equity   4,722    8,699 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY  $5,514   $10,630 

 

 

 

 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

U.S. dollars in thousands

 

   Six Months Ended 
   June 30 
   2017   2016 
   (Unaudited)   (Unaudited) 
Cash flows from operating activities          
Net loss  $(4,305)  $(8,279)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation and disposal of property and equipment   64    13 
Share based compensation   328    (256)
Interest on short-term deposit   7    42 
Changes in operating assets and liabilities:          
Decrease (increase) in receivables and prepaid expenses   321    (33)
Decrease (increase) in long-term assets   18    (23)
Decrease in trade payables   (611)   (793)
Increase (decrease) in other accounts payable   (528)   (253)
Increase in long-term liabilities   -    (70)
           
Net cash used in operating activities   (4,706)   (9,652)
           
Cash flow from investing activities          
           
Withdraw of short term deposits   3,000    5,000 
Purchase of property and equipment   (2)   (10)
Net cash used in investing activities   2,998    4,990 
           
Cash flow from financing activities          
           
Proceeds from exercise of options   *    - 
Issuance of shares and warrants, net   -    6,090 
Net cash provided by financing activities   -    6,090 
           
Increase (decrease) in cash and cash equivalents   (1,708)   1,428 
Cash and cash equivalents, beginning of the year   6,871    7,286 
           
Cash and cash equivalents, end of the year  $5,163   $8,714 

 

 

*represents an amount less than $1,000