BRIDGEWATER, N.J., March 12, 2020 -- Menlo Therapeutics Inc. (Nasdaq: MNLO) (“Menlo” or the “Company”), a specialty pharmaceutical company focused on developing and commercializing proprietary therapies to address unmet needs in dermatology, today announced financial results for its wholly-owned subsidiary, Foamix Pharmaceuticals Ltd. (“Foamix”), for the twelve months ended December 31, 2019 and provided a corporate update.  Menlo and Foamix announced the consummation of their merger transaction on March 9, 2020.  

At December 31, 2019, Foamix had cash and cash equivalents of $73.4 million, compared to cash and cash equivalents of $99.4 million at December 31, 2018.

Pro Forma Cash Position for Combined Company

At December 31, 2019, the combined pro forma cash position for Menlo, assuming the merger transaction with Foamix Pharmaceuticals was completed on December 31, 2019, was approximately $150.5 million.

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About Menlo

Menlo Therapeutics Inc. recently combined with Foamix Pharmaceuticals Ltd. to form a different type of biopharmaceutical company working to solve some of today’s most difficult therapeutic challenges in dermatology and beyond.

With expertise in topical medicine innovation as a springboard, the Company is working to develop and commercialize a variety of solutions using its proprietary Molecule Stabilizing Technology (MST™), and has received FDA approval for the world’s first topical minocycline, AMZEEQ™ (minocycline) topical foam, 4%. In addition, the Company is focused on the development of serlopitant, a once-daily oral NK1 receptor antagonist, as a novel potential treatment option for pruritus associated with prurigo nodularis.

Cautionary Statement Regarding Forward-Looking Statements

This release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding expectations with respect to the anticipated announcement of results of Menlo’s clinical trials for pruritus associated with prurigo nodularis, statements regarding the development and commercialization of Menlo’s products and product candidates and other statements regarding the future expectations, plans and prospects of Menlo. All statements in this press release which are not historical facts are forward-looking statements. Any forward-looking statements are based on Menlo’s current knowledge and its present beliefs and expectations regarding possible future events and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially and adversely from those set forth or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, Menlo’s ability to successfully integrate the two companies; the achievement of certain expected cost synergies; the outcome of any legal proceedings related to the merger; the outcome and cost of clinical trials for current and future product candidates, including those for serlopitant; determination by the FDA that results from Menlo’s clinical trials are not sufficient to support registration or marketing approval of product candidates; adverse events associated with the commercialization of AMZEEQ™; the outcome of pricing, coverage and reimbursement negotiations with third party payors for AMZEEQ™ or any other products or product candidates that Menlo may commercialize in the future; whether, and to what extent, third party payors impose additional requirements before approving AMZEEQ™ prescription reimbursement; the eligible patient base and commercial potential of AMZEEQ™ or any of Menlo’s other product or product candidates; risks that Menlo’s intellectual property rights, such as patents, may fail to provide adequate protection, may be challenged and one or more claims may be revoked or interpreted narrowly or will not be infringed; risks that any of Menlo’s patents may be held to be narrowed, invalid or unenforceable or one or more of Menlo’s patent applications may not be granted and potential competitors may also seek to design around Menlo’s granted patents or patent applications; additional competition in the acne and dermatology markets; inability to raise additional capital on favorable terms or at all; Menlo’s ability to recruit and retain key employees; and Menlo’s ability to stay in compliance with applicable laws, rules and regulations. For a discussion of other risks and uncertainties, and other important factors, any of which could cause Menlo’s actual results to differ from those contained in the forward-looking statements, see the sections titled “Risk Factors” in (i) Menlo’s most recent annual report on Form 10-K, (ii) Foamix’s most recent annual report on Form 10-K and (iii) Menlo’s definitive joint proxy statement/prospectus filed with the U.S. Securities and Exchange Commission under Rule 424(b)(3) on January 7, 2020, as well as discussions of potential risks, uncertainties, and other important factors in Menlo’s subsequent filings with the U.S. Securities and Exchange Commission. Although Menlo believes these forward-looking statements are reasonable, they speak only as of the date of this announcement and Menlo undertakes no obligation to update publicly such forward-looking statements to reflect subsequent events or circumstances, except as otherwise required by law. Given these risks and uncertainties, you should not rely upon forward-looking statements as predictions of future events.

Media Relations:

Vusi Moyo

Zeno Group

312-396-9703

vusi.moyo@zenogroup.com

Investor Relations:

Joyce Allaire

LifeSci Advisors, LLC

646-889-1200

		December 31
		2019				2018
A s s e t s
CURRENT ASSETS:
Cash and cash equivalents		$	43,759			$	27,868
Restricted cash			825				250
Short term bank deposits			12,102				24,047
Investment in marketable securities			16,246				46,669
Restricted investment in marketable securities			434				268
Trade receivable			135				1,066
Other			1,557				999
Inventory			1,356				-
TOTAL  CURRENT ASSETS			76,414				101,167
NON-CURRENT ASSETS:
Investment in marketable securities			-				150
Restricted investment in marketable securities			-				133
Property and equipment, net			2,885				2,235
Operating lease right of use assets			1,694				-
Other			166				46
TOTAL  NON-CURRENT ASSETS			4,745				2,564
TOTAL  ASSETS		$	81,159			$	103,731

		December 31
		2019				2018
Liabilities and shareholders’ equity
CURRENT LIABILITIES:
Trade payables		$	19,352			$	6,327
Accrued expenses			3,381				351
Employee related obligations			5,231				3,498
Operating lease liabilities			1,092				-
Other			270				292
TOTAL CURRENT LIABILITIES			29,326				10,468
LONG-TERM LIABILITIES:
Liability for employee severance benefits			424				367
Operating lease liabilities			653				-
Long-term debt			32,725				-
Other liabilities			456				714
TOTAL LONG-TERM LIABILITIES			34,258				1,081
TOTAL LIABILITIES			63,584				11,549
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Ordinary Shares, NIS 0.16 par value - authorized: 135,000,000 and 90,000,000 Ordinary Shares as of December 31, 2019 and December 31, 2018; issued and outstanding: 61,580,544 and 54,351,140 Ordinary Shares as of December 31, 2019 and December 31, 2018, respectively			2,659				2,331
Additional paid-in capital			325,498				305,303
Accumulated deficit			(310,587	)			(215,409	)
Accumulated other comprehensive income (loss)			5				(43	)
TOTAL SHAREHOLDERS' EQUITY			17,575				92,182
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	81,159			$	103,731

		Year ended December 31
		2019				2018				2017
REVENUES		$	443			$	3,595			$	3,669
COST OF REVENUES			-				-				13
GROSS PROFIT			443				3,595				3,656
OPERATING EXPENSES:
Research and development			51,202				64,474				57,779
Selling, general and administrative			45,114				14,013				11,491
TOTAL OPERATING EXPENSES			96,316				78,487				69,270
OPERATING LOSS			95,873				74,892				65,614
FINANCE INCOME			(1,672	)			(985	)			(1,134	)
FINANCE EXPENSES			1,153				44				71
LOSS BEFORE INCOME TAX			95,354				73,951				64,551
INCOME TAX			(176	)			212				1,164
NET LOSS FOR THE YEAR		$	95,178			$	74,163			$	65,715
LOSS PER SHARE BASIC AND DILUTED		$	1.66			$	1.70			$	1.76
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF BASIC AND DILUTED LOSS PER SHARE IN THOUSANDS			57,292				43,660				37,376