BioLineRx Reports First Quarter 2016 Financial Results

On May 17, 2016 BioLineRx Ltd. (NASDAQ/TASE: BLRX), a clinical-stage biopharmaceutical company dedicated to identifying, in-licensing and developing promising therapeutic candidates, reported its financial results for the first quarter ended March 31, 2016 (Press release, BioLineRx, MAY 17, 2016, View Source;p=RssLanding&cat=news&id=2168907 [SID:1234512464]).

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Highlights and achievements during the first quarter of 2016, and to date:

Signing of immuno-oncology collaboration with Merck for BL-8040 Phase 2a study in pancreatic cancer
Successful top-line results from Phase 2a study for BL-8040 in r/r AML
Continued ramp-up of Phase 2b study for BL-8040 as consolidation treatment for AML patients following standard induction treatment
Initiation of Phase 2 study for BL-8040 in allogeneic stem-cell transplantation
Receipt of medical device classification for BL-7010 for celiac disease in Europe
BL-5010 for non-surgical removal of skin lesions receives CE mark and begins initial product launch in Europe
Expected upcoming significant milestones for the remainder of 2016:

Initiation of Phase 2a study for BL-8040 in combination with KEYTRUDA, in patients with metastatic pancreatic cancer, expected mid-year
Full set of data from Phase 2a study for BL-8040 in r/r AML to be provided at an upcoming US-based scientific conference
Partial results from Phase 2 study for BL-8040 in stem-cell mobilization for allogeneic transplantation expected by end of 2016
Initiation of efficacy study in gluten sensitivity for BL-7010
Roll-out of BL-5010 product launch by Omega to additional countries and selection of 2nd OTC indication for development
Kinneret Savitsky, Ph.D., CEO of BioLineRx, remarked, "During the first quarter of 2016, we made significant progress in advancing BL-8040, our lead oncology platform. We announced successful results in our Phase 2a study for relapsed and refractory AML and we continue to push forward in our Phase 2b trial in an earlier treatment line for AML – as a consolidation treatment following standard induction treatment. We also announced our entering into the exciting field of immuno-oncology, through our collaboration with Merck on a Phase 2a study to investigate BL-8040 in combination with KEYTRUDA for the treatment of pancreatic cancer. In addition, we are progressing with our strategic collaboration with Novartis for the co-development of selected Israeli-sourced novel drug candidates. Novartis has flagged several pre-clinical projects, which we intend to bring into our pipeline over the next few months. With $45 million of cash on our balance sheet as of the end of the first quarter, we are well positioned to carry out our strategic and operational plans through the end of 2018, and look forward to achieving our expected milestones during the second half of 2016."

Financial Results for First Quarter Ended March 31, 2016

Research and development expenses for the three months ended March 31, 2016 were $2.5 million, a decrease of $0.7 million, or 20.9%, compared to $3.2 million for the three months ended March 31, 2015. The decrease resulted primarily from the conclusion of one of the clinical trials for BL-8040 in 2015, and the wind-down of a second clinical trial for BL-8040 during the 2016 period.

Sales and marketing expenses for the three months ended March 31, 2016 were $0.2 million, substantially similar to the comparable period in 2015.

General and administrative expenses for the three months ended March 31, 2016 were $1.0 million, an increase of $0.1 million, or 15.5%, compared to $0.9 million for the three months ended March 31, 2015. The small increase was the cumulative effect of an increase in several categories of expenses, none of which individually was material.

The Company’s operating loss for the three months ended March 31, 2016 amounted to $3.8 million, compared with an operating loss of $4.3 million for the corresponding 2015 period.

Non-operating income (expenses) for the three months ended March 31, 2016 and 2015 were not material, and primarily relate to fair-value adjustments of warrant liabilities on the Company’s balance sheet.

Financial income (expenses), net for the three months ended March 31, 2016 and 2015 were not material, and primarily relate to investment income earned on bank deposits, as well as banking fees.

The Company’s net loss for the three months ended March 31, 2016 amounted to $3.5 million, compared with a net loss of $4.3 million for the corresponding 2015 period.

The Company held $45.0 million in cash, cash equivalents and short-term bank deposits as of March 31, 2016

Net cash used in operating activities was $4.2 million for the three months ended March 31, 2016, compared with net cash used in operating activities of $3.5 million for the 2015 period. The $0.7 million increase in net cash used in operating activities was primarily the result of a decrease in trade payables and accruals.

Net cash provided by investing activities for the three months ended March 31, 2016 was $1.7 million, compared to net cash used in investing activities of $20.7 million for the corresponding 2015 period. The changes in cash flows from investing activities relate primarily to investments in, and maturities of, short-term bank deposits and other investments during the respective periods.

Net cash provided by financing activities for the three months ended March 31, 2016 was $1.6 million, compared to net cash provided by financing activities of $26.5 million for the corresponding 2015 period. The decrease in cash flows from financing activities reflects the underwritten public offering completed by the Company in March 2015.

8-K – Current report

On May 17, 2016 Marina Biotech, Inc. (OTCQB: MRNA), a leading nucleic acid-based drug discovery and development company focused on rare diseases, reported recent corporate highlights and financial results for the first quarter 2016 (Filing, Q1, Marina Biotech, 2016, MAY 17, 2016, View Source [SID:1234512508]).

"Since our announcement in February that we were exploring strategic alternatives, we have assessed multiple merger and acquisition opportunities as well as the sale of our nucleic acid therapeutic assets," stated J. Michael French, president and chief executive officer of Marina Biotech. "The potential acquisition of Turing’s late-stage intranasal ketamine program places us in a position where we can utilize our legacy expertise and experience to quickly move the compound to commercialization. We are excited to complete the transaction with Turing and begin moving the intranasal ketamine program forward. We believe this program offers a therapeutic alternative to a potentially broad patient base suffering from neuropsychiatric and pain disorders for which there are no effective therapeutic alternatives."

Upon the close of the transaction, the Company’s main business will be the rapid advancement of the intranasal ketamine program for neuropsychiatric and pain indications with a focus on potential orphan disease opportunities. Over the coming weeks, Marina intends to assess the future needs of the Company, in order to put in place the best and most experienced Board of Directors and management team to take this valuable asset forward as quickly and as efficiently as possible.

The Company will also continue to seek alternatives for its nucleic acid therapeutics assets in order to maximize shareholder value. These alternatives could include the licensing and/or sale of individual nucleic acid chemistry and delivery technologies as well as the sale of the entire drug discovery platform. The Board of Directors and management intend to evaluate and create, as appropriate, the necessary corporate and organizational structure to facilitate the sale of the nucleic acid therapeutics assets while minimizing or eliminating any expense impact on the Company and its efforts to advance the intranasal ketamine program.

KEY RECENT ACTVITIES

· Acquisition of a Late-Stage Intranasal Ketamine Program from Turing Pharmaceuticals AG
o In May 2016, we announced that we had executed a term sheet under which Marina intends to acquire Turing Pharmaceutical AG’s intranasal ketamine program. Pending the negotiation of the definitive agreement, Marina is expected to acquire Turing’s intranasal ketamine program for approximately 53 million Marina common shares. The assets to be acquired will include all patents and intellectual property rights, clinical development plans, regulatory documents and existing product inventories. Marina will pay to Turing up to $95 million in success- and sales-based milestones plus a mid-single digit royalty on net sales. Marina’s purchase of Turing’s Phase 3 intranasal ketamine program is expected to close by July 1, 2016, pending the completion of customary due diligence considerations, the negotiation, execution and delivery of a definitive asset purchase agreement, and the satisfaction or waiver of the closing conditions set forth in the

asset purchase agreement, including the completion by Marina of a financing transaction yielding proceeds sufficient to initiate and support the Phase 3 efforts.
· Established two transactions for the delivery of gene-editing approaches
o In March 2016, we announced the execution of two agreements – an Option Agreement and a Licensing Agreement – for the delivery of gene-editing cargoes. In both cases, our partners were private and declined to disclose their names and their proprietary gene-editing approach.
· Termination of Negotiations with Microlin Bio, Inc.
o In March 2016, we announced that we had entered into a term sheet whereby Microlin Bio, Inc. would acquire Marina’s nucleic acid therapeutics assets for 6.7 million shares of Microlin’s common stock and approximately $1 million in cash. We terminated further negotiations on May 2, 2016.

FINANCIAL RESULTS

Cash
At March 31, 2016, we had cash of $0.31 million, compared to cash of $0.71 million at December 31, 2015.

Net Income
Net income for the three months ended March 31, 2016 was $1.07 million compared to $0.41 million for the three months ended March 31, 2015. This change was due primarily to changes in the fair value of the price adjustable warrants, revenue recorded during the first quarter of 2016, and a slight decrease in operating expenses during the first quarter of 2016.

Revenue
We recorded $0.25 million in revenue in the three months ended March 31, 2016, which consisted of an upfront license fee from a license agreement covering certain platforms for the delivery of an undisclosed genome editing technology. There were no revenues in the three months ended March 31, 2015.

Operating Expenses
Research and development ("R&D") expense decreased $0.06 million from $0.25 million in the three months ended March 31, 2015 to $0.19 million in the three months ended March 31, 2016, due primarily to the elimination of most consulting and clinical studies, offset by the sublicensing fee payable to Novosom for the above mentioned license of an undisclosed genome editing technology. General and administrative ("G&A") costs remained essentially unchanged at $1.06 million for the three months ended March 31, 2015 and the three months ended March 31, 2016. G&A costs consists primarily of salaries and other personnel-related expenses, stock-based compensation for G&A personnel and non-employee members of our Board, professional fees (such as accounting and legal), and corporate insurance costs.

Other Income
Other income increased from $1.73 million for the three months ended March 31, 2015 to $2.07 million in the three months ended March 31, 2016, due solely to the change in the fair value measurements for price adjustable warrants. This change in fair value is related to stock price decreases in each period decreasing the fair value of certain liabilities and derivatives.

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New KEYTRUDA® (pembrolizumab) Data at 2016 ASCO Annual Meeting Includes Three-Year Overall Survival Data in Melanoma and Updated Overall Survival Data in Non-Small Cell Lung Cancer As Well As Updated Findings in Head and Neck Cancer

On May 16, 2016 Merck (NYSE: MRK), known as MSD outside the United States and Canada, reported that new and updated data investigating KEYTRUDA (pembrolizumab), the company’s anti-PD-1 therapy, in more than 15 types of cancer will be presented at the 52nd Annual Meeting of the American Society of Clinical Oncology (ASCO) (Free ASCO Whitepaper) in Chicago, June 3 – 7, 2016 (Press release, Merck & Co, MAY 16, 2016, View Source [SID:1234512428]).

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At this year’s meeting, researchers will present data from studies of KEYTRUDA as a single agent, and in combination with other therapies, in melanoma and non-small cell lung cancer (NSCLC), as well as bladder, colorectal, esophageal, gastric, head and neck, renal cancers, lymphoma and multiple myeloma. First-time presentation of findings for KEYTRUDA will be presented in new tumor types including cervical, endometrial, leiomyosarcoma, pancreatic, salivary, and thyroid. Several abstracts were chosen to be presented as oral presentations – one of which includes three-year survival data for patients with advanced melanoma (abstract #9503); this abstract will be featured in the official ASCO (Free ASCO Whitepaper) press program on Wednesday, May 18 at 12:00 p.m. EDT.

"This year’s ASCO (Free ASCO Whitepaper) annual meeting represents a significant milestone for the KEYTRUDA clinical development program, which now includes more than 270 ongoing or planned studies across more than 30 tumor types, both as a single agent and in combination with other therapies," said Dr. Roy Baynes, senior vice president and head of global clinical development, Merck Research Laboratories. "We look forward to sharing new data with the cancer community from our industry-leading immuno-oncology program as we seek to advance our shared goal of transforming outcomes for patients across a broad range of tumors."

KEYTRUDA (pembrolizumab) Data at the 2016 ASCO (Free ASCO Whitepaper) Annual Meeting

A select list of abstracts and sessions featuring KEYTRUDA data – including oral presentations, clinical science symposia, posters, and poster discussions – are provided below:

Advanced Melanoma: Merck has established a broad data set for KEYTRUDA in the treatment of advanced melanoma. At ASCO (Free ASCO Whitepaper), oral presentations supporting the use of KEYTRUDA in the currently approved indication will include three-year overall survival (OS) data from the KEYNOTE-001 trial and a final OS analysis from the KEYNOTE-006 trial. Additionally, new and updated findings building on the growing body of research evaluating KEYTRUDA in combination with other therapies will be presented.

(Abstract #9503) Oral Abstract Session: Three-year overall survival for patients with advanced melanoma treated with pembrolizumab in KEYNOTE-001. C. Robert. Monday, June 6. 2:15 p.m. – 2:27 p.m. CDT. Location: Arie Crown Theater.
(Abstract #9504) Oral Abstract Session: Pembrolizumab versus ipilimumab for advanced melanoma: Final overall survival analysis of KEYNOTE-006. J. Schachter. Monday, June 6. 2:27 p.m. – 2:39 p.m. CDT. Location: Arie Crown Theater.
(Abstract #9506) Oral Abstract Session: Pembrolizumab (pembro) plus ipilimumab (ipi) for advanced melanoma: Results of the KEYNOTE-029 expansion cohort. G. Long. Monday, June 6. 2:51 p.m. – 3:03 p.m. CDT. Location: Arie Crown Theater.
(Abstract #9568) Poster Session: Efficacy analysis of MASTERKEY-265 phase 1b study of talimogene laherparepvec (T-VEC) and pembrolizumab (pembro) for unresectable stage IIIB-IV melanoma. G. Long. Saturday, June 4. 1:00 p.m. – 4:30 p.m. CDT. Location: Hall A.
(Abstract #3014) Poster Session/Discussion: Pembrolizumab (pembro) in combination with dabrafenib (D) and trametinib (T) for BRAF-mutant advanced melanoma: Phase 1 KEYNOTE-022 study. A. Ribas. Sunday, June 5. Poster: 8:00 a.m. – 11:30 a.m. CDT. Location: Hall A. Discussion: 4:45 p.m. – 6:00 p.m. CDT. Location: Hall B1.
Advanced Lung Cancer: Merck is continuing to advance the understanding of KEYTRUDA in lung cancer as a single agent and in combination with other therapies. Research to be presented at ASCO (Free ASCO Whitepaper) includes data from the KEYNOTE-010 trial in advanced NSCLC, as well as studies exploring PD-L1 expression, long-term survival, and combination with chemotherapy as a first-line therapy.

(Abstract #9026) Poster Session: Long-term OS for patients with advanced NSCLC enrolled in the KEYNOTE-001 study of pembrolizumab (pembro). R Hui. Saturday, June 4. 8:00 a.m. – 11:30 a.m. CDT. Location: Hall A.
(Abstract #9024) Poster Session: Pembrolizumab vs docetaxel for previously treated advanced NSCLC with a PD-L1 tumor proportion score (TPS) 1%-49%: Results from KEYNOTE-010. E. Garon. Saturday, June 4. 8:00 a.m. – 11:30 a.m. CDT. Location: Hall A.
(Abstract #9015) Poster Session/Discussion: Relationship between level of PD-L1 expression and outcomes in the KEYNOTE-010 study of pembrolizumab vs docetaxel for previously treated, PD-L1-Positive NSCLC. P. Baas. Saturday, June 4. Poster: 8:00 a.m. – 11:30 a.m. CDT. Location: Hall A. Discussion: 3:00 p.m. – 4:15 p.m. CDT. Location: E354b.
(Abstract #9016) Poster Session/Discussion: Pembrolizumab (pembro) plus chemotherapy as front-line therapy for advanced NSCLC: KEYNOTE-021 cohorts A-C. S. Gadgeel. Saturday, June 4. Poster: 8:00 a.m. – 11:30 a.m. CDT. Location: Hall A. Discussion: 3:00 p.m. – 4:15 p.m. CDT. Location: E354b.
Advanced Head and Neck Cancer: With multiple registration-enabling studies, Merck currently has the largest immuno-oncology clinical development program in head and neck cancer and is advancing research investigating OS and progression-free survival (PFS) endpoints with single agent KEYTRUDA (pembrolizumab), as well as in combination with chemotherapy compared to standard of care. At ASCO (Free ASCO Whitepaper), presentations in this tumor type will include first-time findings from the KEYNOTE-055 trial in head and neck squamous cell carcinoma (HNSCC) and updated findings from the KEYNOTE-012 trial, which was the first clinical study investigating the role of a PD-1 inhibitor in recurrent or metastatic head and neck cancer and served as the basis for the KEYTRUDA supplemental Biologics License Application (sBLA) filing.

(Abstract #6012) Clinical Science Symposium: Efficacy and safety of pembrolizumab in recurrent/metastatic head and neck squamous cell carcinoma (R/M HNSCC): Pooled analyses after long-term follow-up in KEYNOTE-012. R. Mehra. Monday, June 6. 12:18 p.m. – 12:30 p.m. CDT. Location: S100bc.
(Abstract #6011) Clinical Science Symposium: Preliminary results from KEYNOTE-055: Pembrolizumab after platinum and cetuximab failure in head and neck squamous cell carcinoma (HNSCC). J. Bauml. Monday, June 6. 12:06 p.m. – 12:18 p.m. CDT. Location: S100bc.
(Abstract #6017) Poster Session/Poster Discussion Session: Preliminary results for the advanced salivary gland carcinoma cohort of the phase 1b KEYNOTE-028 study of pembrolizumab. R. Cohen. Saturday, June 4. Poster: 1:00 p.m. – 4:30 p.m. CDT. Location: Hall A. Discussion: 4:45 p.m. – 6:00 p.m. CDT. Location: S406.
(Abstract #6010) Clinical Science Symposium: Biomarkers and response to pembrolizumab (pembro) in recurrent/metastatic head and neck squamous cell carcinoma (R/M HNSCC). L. Chow. Monday, June 6. 11:42 a.m. – 11:54 a.m. CDT. Location: S100bc.
Advanced Hematological Cancers: Data in several hematological cancers will be presented at ASCO (Free ASCO Whitepaper), including new findings from the KEYNOTE-087 trial evaluating single agent KEYTRUDA (pembrolizumab) in patients with classical Hodgkin lymphoma (cHL), which supported the recent Breakthrough Therapy Designation granted to KEYTRUDA by the U.S. Food and Drug Administration (FDA). A final analysis of the KEYNOTE-023 trial, investigating KEYTRUDA in combination with two commonly used treatments for multiple myeloma, will also be presented.

(Abstract #7555) Poster Session/Discussion: Pembrolizumab for relapsed/refractory classical Hodgkin lymphoma (R/R cHL): phase 2 KEYNOTE-087 study. R. Chen. Monday June 6. Poster: 8:00 a.m. – 11:30 a.m. CDT. Location: Hall A. Discussion: 1:15 p.m. – 2:45 p.m. CDT. Location: E345b.
(Abstract #8010) Clinical Science Symposium: Pembrolizumab in combination with lenalidomide and low-dose dexamethasone for relapsed/refractory multiple myeloma (RRMM): Final efficacy and safety analysis. M. Mateos. Tuesday, June 7. 10:09 a.m. – 10:21 a.m. CDT. Location: E354b.
Additional Data from Merck’s Oncology Portfolio

Data from studies of other medicines in Merck’s portfolio and pipeline will also be presented at the meeting. For more information, including a complete list of abstract titles, please visit the ASCO (Free ASCO Whitepaper) website at View Source

About KEYTRUDA (pembrolizumab) Injection 100 mg

KEYTRUDA is a humanized monoclonal antibody that works by increasing the ability of the body’s immune system to help detect and fight tumor cells. KEYTRUDA blocks the interaction between PD-1 and its ligands, PD-L1 and PD-L2, thereby activating T lymphocytes which may affect both tumor cells and healthy cells.

KEYTRUDA is indicated for the treatment of patients with unresectable or metastatic melanoma.

KEYTRUDA is also indicated for the treatment of patients with metastatic non-small cell lung cancer (NSCLC) whose tumors express PD-L1 as determined by an FDA-approved test with disease progression on or after platinum-containing chemotherapy. Patients with EGFR or ALK genomic tumor aberrations should have disease progression on FDA-approved therapy for these aberrations prior to receiving KEYTRUDA. This indication is approved under accelerated approval based on tumor response rate and durability of response. An improvement in survival or disease-related symptoms has not yet been established. Continued approval for this indication may be contingent upon verification and description of clinical benefit in the confirmatory trials.

KEYTRUDA is administered at a dose of 2 mg/kg as an intravenous infusion over 30 minutes every three weeks for the approved indications.

Selected Important Safety Information for KEYTRUDA (pembrolizumab)

Immune-mediated pneumonitis, including fatal cases, occurred in patients receiving KEYTRUDA. Pneumonitis occurred in 32 (2.0%) of 1567 patients with melanoma, including Grade 1 (0.8%), 2 (0.8%), and 3 (0.4%) pneumonitis. Pneumonitis occurred in 19 (3.5%) of 550 patients with NSCLC, including Grade 2 (1.1%), 3 (1.3%), 4 (0.4%), or 5 (0.2%) pneumonitis and more frequently in patients with a history of asthma/chronic obstructive pulmonary disease (5.4%) or prior thoracic radiation (6.0%). Monitor patients for signs and symptoms of pneumonitis. Evaluate suspected pneumonitis with radiographic imaging. Administer corticosteroids for Grade 2 or greater pneumonitis. Withhold KEYTRUDA for Grade 2; permanently discontinue KEYTRUDA for Grade 3 or 4 or recurrent Grade 2 pneumonitis.

Immune-mediated colitis occurred in 31 (2%) of 1567 patients with melanoma, including Grade 2 (0.5%), 3 (1.1%), and 4 (0.1%) colitis. Immune-mediated colitis occurred in 4 (0.7%) of 550 patients with NSCLC, including Grade 2 (0.2%) or 3 (0.4%) colitis. Monitor patients for signs and symptoms of colitis. Administer corticosteroids for Grade 2 or greater colitis. Withhold KEYTRUDA (pembrolizumab) for Grade 2 or 3; permanently discontinue KEYTRUDA for Grade 4 colitis.

Immune-mediated hepatitis occurred in patients receiving KEYTRUDA. Hepatitis occurred in 16 (1%) of 1567 patients with melanoma, including Grade 2 (0.1%), 3 (0.7%), and 4 (0.1%) hepatitis. Monitor patients for changes in liver function. Administer corticosteroids for Grade 2 or greater hepatitis and, based on severity of liver enzyme elevations, withhold or discontinue KEYTRUDA .

Hypophysitis occurred in 13 (0.8%) of 1567 patients with melanoma, including Grade 2 (0.3%), 3 (0.3%), and 4 (0.1%) hypophysitis. Hypophysitis occurred in 1 (0.2 %) of 550 patients with NSCLC, which was Grade 3 in severity. Monitor patients for signs and symptoms of hypophysitis (including hypopituitarism and adrenal insufficiency). Administer corticosteroids and hormone replacement as clinically indicated. Withhold KEYTRUDA for Grade 2; withhold or discontinue for Grade 3 or 4 hypophysitis.

Hyperthyroidism occurred in 51 (3.3%) of 1567 patients with melanoma, including Grade 2 (0.6%) and 3 (0.1%) hyperthyroidism. Hypothyroidism occurred in 127 (8.1%) of 1567 patients with melanoma, including Grade 3 (0.1%) hypothyroidism. Hyperthyroidism occurred in 10 (1.8%) of 550 patients with NSCLC, including Grade 2 (0.7%) or 3 (0.3%) hyperthyroidism. Hypothyroidism occurred in 38 (6.9%) of 550 patients with NSCLC, including Grade 2 (5.5%) or 3 (0.2%) hypothyroidism. Thyroid disorders can occur at any time during treatment. Monitor patients for changes in thyroid function (at the start of treatment, periodically during treatment, and as indicated based on clinical evaluation) and for clinical signs and symptoms of thyroid disorders. Administer replacement hormones for hypothyroidism and manage hyperthyroidism with thionamides and beta-blockers as appropriate. Withhold or discontinue KEYTRUDA for Grade 3 or 4 hyperthyroidism.

Type 1 diabetes mellitus, including diabetic ketoacidosis, occurred in 3 (0.1%) of 2117 patients. Monitor patients for hyperglycemia or other signs and symptoms of diabetes. Administer insulin for type 1 diabetes, and withhold KEYTRUDA and administer anti hyperglycemics in patients with severe hyperglycemia.

Immune-mediated nephritis occurred in patients receiving KEYTRUDA. Nephritis occurred in 7 (0.4%) of 1567 patients with melanoma including, Grade 2 (0.2%), 3 (0.2%), and 4 (0.1%) nephritis. Monitor patients for changes in renal function. Administer corticosteroids for Grade 2 or greater nephritis. Withhold KEYTRUDA for Grade 2; permanently discontinue KEYTRUDA (pembrolizumab) for Grade 3 or 4 nephritis.

Other clinically important immune-mediated adverse reactions can occur. For suspected immune-mediated adverse reactions, ensure adequate evaluation to confirm etiology or exclude other causes. Based on the severity of the adverse reaction, withhold KEYTRUDA and administer corticosteroids. Upon improvement to Grade 1 or less, initiate corticosteroid taper and continue to taper over at least 1 month. Based on limited data from clinical studies in patients whose immune-related adverse reactions could not be controlled with corticosteroid use, administration of other systemic immunosuppressants can be considered. Resume KEYTRUDA when the adverse reaction remains at Grade 1 or less following corticosteroid taper. Permanently discontinue KEYTRUDA for any Grade 3 immune-mediated adverse reaction that recurs and for any life-threatening immune-mediated adverse reaction.

The following clinically significant, immune-mediated adverse reactions occurred in less than 1% (unless otherwise indicated) of 1567 patients with melanoma: arthritis (1.6%), exfoliative dermatitis, bullous pemphigoid, uveitis, myositis, Guillain-Barré syndrome, myasthenia gravis, vasculitis, pancreatitis, hemolytic anemia, and partial seizures arising in a patient with inflammatory foci in brain parenchyma. The following clinically significant, immune-mediated adverse reactions occurred in less than 1% of 550 patients with NSCLC: rash, vasculitis, hemolytic anemia, serum sickness, and myasthenia gravis.

Severe and life-threatening infusion-related reactions have been reported in 3 (0.1%) of 2117 patients. Monitor patients for signs and symptoms of infusion related reactions including rigors, chills, wheezing, pruritus, flushing, rash, hypotension, hypoxemia, and fever. For Grade 3 or 4 reactions, stop infusion and permanently discontinue KEYTRUDA .

Based on its mechanism of action, KEYTRUDA can cause fetal harm when administered to a pregnant woman. If used during pregnancy, or if the patient becomes pregnant during treatment, apprise the patient of the potential hazard to a fetus. Advise females of reproductive potential to use highly effective contraception during treatment and for 4 months after the last dose of KEYTRUDA.

In Trial 6, KEYTRUDA was discontinued due to adverse reactions in 9% of 555 patients with advanced melanoma; adverse reactions leading to discontinuation in more than one patient were colitis (1.4%), autoimmune hepatitis (0.7%), allergic reaction (0.4%), polyneuropathy (0.4%), and cardiac failure (0.4%). Adverse reactions leading to interruption of KEYTRUDA occurred in 21% of patients; the most common (≥1%) was diarrhea (2.5%). The most common adverse reactions with KEYTRUDA (pembrolizumab) vs ipilimumab were fatigue (28% vs 28%), diarrhea (26% with KEYTRUDA), rash (24% vs 23%), and nausea (21% with KEYTRUDA). Corresponding incidence rates are listed for ipilimumab only for those adverse reactions that occurred at the same or lower rate than with KEYTRUDA.

In Trial 2, KEYTRUDA was discontinued due to adverse reactions in 12% of 357 patients with advanced melanoma; the most common (≥1%) were general physical health deterioration (1%), asthenia (1%), dyspnea (1%), pneumonitis (1%), and generalized edema (1%). Adverse reactions leading to interruption of KEYTRUDA occurred in 14% of patients; the most common (≥1%) were dyspnea (1%), diarrhea (1%), and maculo-papular rash (1%). The most common adverse reactions with KEYTRUDA vs chemotherapy were fatigue (43% with KEYTRUDA), pruritus (28% vs 8%), rash (24% vs 8%), constipation (22% vs 20%), nausea (22% with KEYTRUDA), diarrhea (20% vs 20%), and decreased appetite (20% with KEYTRUDA). Corresponding incidence rates are listed for chemotherapy only for those adverse reactions that occurred at the same or lower rate than with KEYTRUDA.

KEYTRUDA was discontinued due to adverse reactions in 14% of 550 patients with NSCLC. Serious adverse reactions occurred in 38% of patients. The most frequent serious adverse reactions reported at least 2% of patients were pleural effusion, pneumonia, dyspnea, pulmonary embolism, and pneumonitis. The most common adverse reactions (reported in at least 20% of patients) were fatigue (44%), cough (29%), decreased appetite (25%), and dyspnea (23%).

No formal pharmacokinetic drug interaction studies have been conducted with KEYTRUDA.

It is not known whether KEYTRUDA is excreted in human milk. Because many drugs are excreted in human milk, instruct women to discontinue nursing during treatment with KEYTRUDA and for 4 months after the final dose.

Safety and effectiveness of KEYTRUDA have not been established in pediatric patients.

Our Focus on Cancer

Our goal is to translate breakthrough science into innovative oncology medicines to help people with cancer worldwide. At Merck Oncology, helping people fight cancer is our passion and supporting accessibility to our cancer medicines is our commitment. Our focus is on pursuing research in immuno-oncology and we are accelerating every step in the journey – from lab to clinic – to potentially bring new hope to people with cancer.

As part of our focus on cancer, Merck is committed to exploring the potential of immuno-oncology with one of the fastest-growing development programs in the industry. We are currently executing an expansive research program that includes more than 270 clinical trials evaluating our anti-PD-1 therapy across more than 30 tumor types. We also continue to strengthen our immuno-oncology portfolio through strategic acquisitions and are prioritizing the development of several promising immunotherapeutic candidates with the potential to improve the treatment of advanced cancers.

Aeolus Announces Second Quarter Fiscal Year 2016 Financial Results and Investor Update Call

On May 16, 2016 Aeolus Pharmaceuticals, Inc. (OTCQB: AOLS), a biotechnology company developing compounds to protect against fibrosis, inflammation, nerve damage and infection reported financial results for the three months ended March 31, 2016 (Press release, Aeolus, MAY 16, 2016, View Source [SID:1234512438]). The Company also announced a conference call to update investors on its development programs, including its partnership with the Biomedical Advanced Research and Development Authority ("BARDA") for the development of AEOL-10150 ("10150") as treatment for the pulmonary and delayed effects of acute radiation exposure ("Lung-ARS").

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Investor Update Call Information:

Date: Thursday, May 19 th , 2016

Time: 11:00 AM EDT/8:00 AM PDT

Dial-in Number: (844) 784-2549

International Dial-in: (661) 378-9785

A recording of the conference call will be available on the Company’s website, www.aolsrx.com, for 28 days following the call.

The Company reported a net loss of approximately $2,535,000, or $0.02 per share for the three months ended March 31, 2016. This compares to a net loss of $1,033,000, or $0.01 per share, for the three months ended December 31, 2015. The increase in net loss was primarily attributable to a $1,906,000 non-cash expense related to a deemed dividend for the Company’s Series C Preferred Stock. The net operating loss for the period was $629,000 or $0.00 per share.

"During the quarter, the U.S Food and Drug Administration ("FDA") removed the clinical hold on our Investigational New Drug Application ("IND") for 10150 to treat Lung-ARS," stated John L. McManus, President and Chief Executive Officer. "We are in discussions with our development partner, BARDA, regarding the appropriate clinical studies to generate the human safety data required for a pre-Emergency Use Authorization filing and, ultimately, for an approval under the FDA’s ‘Animal Rule.’ We are not aware of any other compounds in advanced development for Lung-ARS or any compounds that have demonstrated efficacy when administered after radiation exposure. In addition, we are preparing to meet with the FDA to discuss the filing of INDs for human studies in Idiopathic Pulmonary Fibrosis and Cancer Radiation Therapy. We hope to initiate these studies in the second half of 2016."

Key Operational Accomplishments During the Quarter:

FDA removed the clinical hold on AEOL 10150 for studies in healthy volunteers supporting the Lung-ARS program
Preparation of IND submissions to the FDA for later this year for studies of AEOL 10150 in patients with Idiopathic Pulmonary Fibrosis and in patients receiving radiation therapy for cancer
Patent for AEOL 11114 issued in Europe and allowed in Japan
IND-enabling work for AEOL 11114 in Parkinson’s Disease initiated with a filing expected in 2017
Animal study of AEOL 20415 (an new, novel anti-infective) initiated as a treatment for infections in patients with Cystic Fibrosis with results expected in the second quarter
BARDA contract modification executed to extend stability testing on AEOL 10150 bulk drug and final drug product for 3 additional years
Results of Operations for the Three Months Ended March 31, 2016

Revenue for the three months ended March 31, 2016 was approximately $565,000, versus revenue of $1,189,000 for the three months ended March 31, 2015. The revenue is from the Lung ARS medical countermeasure development contract with BARDA, a division of the U.S. Department of Health and Human Services. Lower revenue in 2016 reflects the timing of the initiation of program items and revenue recognition under accounting rules.

Research and development expenses decreased to approximately $501,000 for the three months ended March 31, 2016, from approximately $1,297,000 for the three months ended March 31, 2015. The decrease in 2016 expenses reflects both the timing of program items under the BARDA contract and expense recognition under accounting rules.

General and administrative expenses were approximately $693,000 for the three months ended March 31, 2016 compared to approximately $604,000 for the three months ended March 31, 2015.

Results of Operations for the Six Months Ended March 31, 2016

Revenue for the six months ended March 31, 2016 was approximately $870,000, versus revenue of $2,114,000 for the six months ended March 31, 2015. The revenue is from the Lung ARS medical countermeasure development contract with BARDA. Lower revenue in 2016 reflects the timing of the initiation of program items and revenue recognition under accounting rules.

Research and development expenses decreased to approximately $993,000 for the six months ended March 31, 2016, from approximately $2,270,000 for the six months ended March 31, 2015. The decrease in 2016 expenses reflects both the timing of program items under the BARDA contract and expense recognition under accounting rules.

General and administrative expenses were approximately $1,254,000 for the six months ended March 31, 2016 compared to approximately $1,254,000 for the six months ended March 31, 2015.

As of March 31, 2016, the Company had approximately $4,509,000 in cash and cash equivalents and 151,559,745 common shares outstanding. The Company had accounts receivable of $1,366,000 and accounts payable of $1,031,000 on March 31, 2016.

Aeolus has filed today with the SEC its Quarterly Report on Form 10-Q for the quarter ended March 31, 2016. Aeolus urges its investors to read this quarterly filing as well as its Annual Report on Form 10-K, also filed with the SEC, for further details concerning the Company. The Quarterly Report on Form 10-Q and the Annual Report on Form 10-K are also available on the Company’s website, at www.aolsrx.com.

About AEOL 10150

AEOL 10150 is a broad-spectrum catalytic antioxidant specifically designed to neutralize reactive oxygen and nitrogen species. The neutralization of these species reduces oxidative stress, inflammation, and subsequent tissue damage-signaling cascades resulting from radiation exposure. AEOL 10150 may have a profound beneficial impact on people who have been exposed, or are about to be exposed, to high-doses of radiation in the treatment of oncology.

AEOL 10150 has performed well in animal safety studies, was well tolerated in two human clinical trials and has demonstrated statistically significant survival efficacy in multiple Radiation-Induced Lung Fibrosis ("Lung ARS") studies in animals. The Company believes it could have a profound beneficial impact on people who have been exposed, or are about to be exposed, to high-doses of radiation, whether from cancer therapy or a nuclear event. Aeolus has received "Orphan Drug" designation for the use of AEOL 10150 in treating Lung ARS and Idiopathic Pulmonary Fibrosis and has filed an IND to allow for human safety testing of the compound in healthy volunteers. AEOL 10150 is also currently in development for use in Idiopathic Pulmonary Fibrosis and as both a therapeutic and prophylactic drug in cancer patients.

8-K – Current report

On May 16, 2016 Diffusion Pharmaceuticals Inc. (OTCQX: DFFN), a clinical stage biotechnology company focused on the development of novel small molecule therapeutics for cancer, reported financial results for the first quarter ended March 31, 2016 and provided an overview of recent corporate highlights (Filing, Q1, RestorGenex, 2016, MAY 16, 2016, View Source [SID:1234512489]). The quarterly results will be filed shortly on Form 10-Q with the SEC.

David Kalergis, Chairman and Chief Executive Officer of Diffusion, said, "We are pleased with the direction that we are heading following the merger with RestorGenex Corporation. We are continuing to expand our team and welcomed Tom Byrne as General Counsel. We also continue to advance our plan to expand the clinical development pipeline for TSC from GBM to first line pancreatic cancer."

Corporate Highlights

In January 2016, Diffusion Pharmaceuticals LLC completed a reverse merger with RestorGenex Corporation in an all-stock transaction. Following the close of the reverse merger, RestorGenex was renamed Diffusion Pharmaceuticals Inc. and its ticker symbol was changed to "DFFN".

In April 2016, Thomas Byrne joined Diffusion as General Counsel and transitioned from his prior positon on the Board of Directors. Mr. Byrne is continuing to oversee Diffusion’s intellectual property strategy, which he has directed since Diffusion was founded in 2001.

First Quarter 2016 Results

Research and development expenses were $2.4 million for the quarter ended March 31, 2016, compared to $732,000 for the quarter ended March 31, 2015. This increase was primarily a result of an increase in drug manufacturing costs and initiating the TSC pancreatic cancer program.

General and administrative expenses were $3.9 million for the quarter ended March 31, 2016, compared to $459,000 for the quarter ended March 31, 2015. The increase was attributed to costs associated with the merger and operating as a public company, including corporate insurance, professional fees and financial reporting fees.

Net loss was $6.2 million for the quarter ended March 31, 2016, compared to a net loss of $1.2 million for the quarter ended March 31, 2015. The increase in the net loss was due primarily to higher expenses associated with the increased research and development expenses, and general and administrative expenses summarized above.

Cash and cash equivalents were $5.9 million for the quarter ended March 31, 2016, compared to $2.0 million for quarter ended March 31, 2015.

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