LAWRENCEVILLE, N.J.,
Nov. 5, 2015 /PRNewswire/
-- Celsion Corporation (NASDAQ: CLSN), an oncology drug
development company, today announced financial results for the
quarter ended September 30, 2015 and
provided an update on its development programs, including
ThermoDox®, its proprietary heat-activated liposomal encapsulation
of doxorubicin, and GEN-1, an IL-12 DNA-based immunotherapy encased
in a synthetic nanoparticle delivery system, which minimizes
toxicity and maximizes the multiple antitumor effects of IL-12 and
is currently under development for the localized treatment of
ovarian and brain cancers.
"During the past quarter, we reported positive data highlighting
the multiple development opportunities for our chemotherapy and
immunotherapy products, broadened our European Early Access Program
to include primary liver cancer and realigned our current
organization structure, which we expect to provide the most
efficient path forward for our broad, diversified product pipeline
with a focus on generating clinical data from our GEN-1 platform,"
said Michael H. Tardugno, Celsion's
chairman, president and CEO. "We plan to initiate multiple
clinical studies over the next six to twelve months, including the
Euro-DIGNITY study evaluating ThermoDox in breast cancer, a Phase
1b trial for GEN-1 in first-line ovarian cancer, and a second trial
evaluating GEN-1 in combination with Avastin® and Doxil® in
platinum-resistant ovarian cancer patients. Enrollment of patients
in our global Phase III OPTIMA Study evaluating ThermoDox® in
primary liver cancer is continuing to build momentum. Lastly,
we plan to leverage our TheraSilence RNAi lung-directed delivery
platform through non-dilutive licensing and co-development
collaborations."
Recent Developments
ThermoDox®
Reported Positive Interim Data from the Phase II US DIGNITY
Study in RCW Breast Cancer.
In July 2015, Celsion announced
continuing positive interim data from its Phase II DIGNITY trial of
ThermoDox® in recurrent chest wall (RCW) breast cancer. Of
the 17 patients enrolled and treated in the DIGNITY Study, 13 were
eligible for evaluation of efficacy. Based on available data,
every patient experienced a clinical benefit of their highly
refractory disease with a local response rate of 69% observed in
the 13 evaluable patients, including 5 complete responses, 4
partial responses and 4 patients with stable disease. Local tumor
control in this population provides clinical benefit sufficient to
warrant its designation as a primary endpoint for pivotal
studies.
Announced Updated Overall Survival Data from Phase III HEAT
Study, Providing Support for the Clinical Protocol for the Phase
III OPTIMA Study.
In August 2015, Celsion announced
the latest Overall Survival (OS) analysis (as of July 15, 2015) from the Phase III HEAT Study. The
findings, which were demonstrated in a large, well bounded, well
defined subgroup of patients (n=285, 41% of the study patients),
showed that the combination of ThermoDox® and optimized RFA
provided a 58% improvement in OS compared to optimized RFA alone.
The Hazard Ratio at this analysis is 0.63 (95% CI 0.43 - 0.93) with
a p-value of 0.0198. Median overall survival for the ThermoDox®
group has been reached which translates into a 25.4 month (2.1
year) survival benefit over the optimized RFA only group (79 months
for the ThermoDox® plus optimized RFA group versus 53.6 months for
the optimized RFA only group). An overall survival benefit greater
than 60 months is widely recognized as curative.
In September 2015, the Company
announced presentations by three leading experts in the treatment
of primary liver cancer at the 2015 International Liver Cancer
Association (ILCA) 9th Annual Conference during a
symposium entitled "Intermediate HCC: Cure vs.
Palliation." These experts noted that ThermoDox may
represent a treatment with curative potential if the subgroup
findings from the HEAT Study are confirmed.
Earlier this week, the Company announced several presentations
by leading liver cancer experts in Asia highlighting the curative potential for
ThermoDox plus optimized RFA at the 2nd Asian Conference on Tumor
Ablation. The presentations at both of these
meetings support the protocol for the Phase III OPTIMA Study which
is expected to enroll up to 550 patients globally in up to 75
clinical sites in the United
States, Europe,
China and Asia Pacific. The
Company noted that the presentations at ACTA now represent the
fifth international medical conference and the seventh time that
the Overall Survival data from the HEAT Study has been discussed by
leading experts in HCC research.
Expanded the ThermoDox® Early Access Program (EAP) in
Europe.
In August, the Company and myTomorrows expanded the ThermoDox
European Early Access Program to include patients with primary
liver cancer and liver cancer metastases in all countries in the
European Union territory, Switzerland, Turkey and Israel. The Company's original EAP with
myTomorrows, formed in January 2015,
provides eligible patients with access to ThermoDox® for the
treatment of recurrent chest wall breast cancer. The EAP
provides physicians with access to products in later stage
development demonstrating evidence of clinical benefit, with an
acceptable safety profile and a quality manufacturing process in
place. Celsion will be allowed to price ThermoDox at
commercial rates.
GEN-1 IL-12 DNA-Based Immunotherapy
Enrolled the First Patient in the OVATION Study
In October 2015, Celsion announced
the enrollment of the first patient in its Phase Ib dose escalating
clinical trial (the OVATION Study) combining GEN-1, the Company's
DNA-based immunotherapy, with standard of care for the treatment of
newly diagnosed ovarian cancer patients who will undergo
neoadjuvant chemotherapy. Interim results from this open
label study will be available with patient evaluability and will
continue through the first half of next year at higher doses of
GEN-1.
Announced Confirmatory Preclinical Data for its GEN-1 IL-12
Immunotherapy in Combination with Avastin® and Doxil® for Ovarian
Cancer
In October 2015, Celsion announced
results from a large, comprehensive, preclinical program of the
Company's GEN-1 IL-12 immunotherapy in combination with Avastin®
and Doxil® for the treatment of platinum resistant ovarian
cancer. The preclinical studies provide evidence of a robust
and synergistic anti-cancer advantage compared to untreated animals
and suggest a statistically significant improvement over the
combination of Avastin® and Doxil®. These studies support an
IND filing for a Phase I/II trial evaluating the combination in
ovarian cancer later this year.
Corporate Developments
Completed Integration of June
2014 EGEN Acquisition
During the third quarter of 2015, the Company completed the
integration of its June 2014
acquisition of EGEN, Inc. with the consolidation of all early stage
preclinical assets at its Huntsville,
AL facility. All clinical development,
commercialization, business development and administrative
functions are now located in Lawrenceville, NJ. From this
reorganization, the Company expects to realize a 15 to 20 percent
reduction in personnel and related annual operational costs.
Financial Results
For the quarter ended September 30,
2015, Celsion reported a net loss of $4.3 million, or $(0.19) per share, compared to a net loss of
$6.9 million, or $(0.40) per share, in the same period of 2014.
Operating expenses were $4.4 million
in the third quarter of 2015 compared to $6.8 million in the same period of 2014.
For the nine month period ended September 30, 2015, the Company reported a net
loss of $16.9 million, or
$(0.79) per share, compared to
$19.0 million, or $(1.12) per share, in the same period of
2014. Operating expenses were $16.3
million in the first nine months of 2015 compared to
$18.7 million in the same period of
2014. Net loss and operating expenses for the three-month and
nine-month periods ended September 30,
2014 included $0.1 million and
$1.2 million, respectively of
one-time costs associated with the June
2014 acquisition of EGEN, Inc. Net cash used in
operations was $16.9 million in the
first nine months of 2015 compared to $14.8
million in the same period last year. The Company
ended the third quarter of 2015 with $24.4
million of total cash, investments and accrued interest on
these investments.
Research and development (R&D) costs were $2.8 million in the third quarter of 2015
compared to $4.6 million the same
period last year. Research and development costs were
$11.0 million in the first nine
months of 2015 compared to $10.7
million the same period last year. The increase
in R&D costs in 2015 is primarily due to expenses associated
with the operations of EGEN, Inc., the costs associated with the
start-up and initiation of the Phase III OPTIMA Study in 2014 and
the production of clinical supplies in 2015 for anticipated GEN-1
Phase I studies. General and administrative expenses were
$1.5 million in the third quarter of
2015 compared to $2.0 million the
same period of 2014. General and administrative expenses were
$5.3 million in the first nine months
of 2015 compared to $6.8 million the
same period of 2014. These decreases were primarily the
result of lower insurance premiums and lower personnel costs
resulting from the reorganization and staff reductions announced
during the third quarter of 2015.
Quarterly Conference Call
The Company is hosting a conference call to provide a business
update and discuss the third quarter 2015 financial results at
11:00 a.m. EST on Thursday, November 5, 2015. To participate in the
call, interested parties may dial 1-877-419-6594
(Toll-Free/North America) or
1-719-325-4755 (International/Toll) and ask for the Celsion
Corporation Third Quarter 2015 Conference Call (Conference Code:
939465) to register ten minutes before the call is scheduled to
begin. The call will also be broadcast live on the internet at
http://www.celsion.com.
The call will be archived for replay on Thursday, November 5, 2015 and will remain
available until Thursday, November
19, 2015. The replay can be accessed at 1-888-203-1112
(Toll-Free/North America) or +1
719-457-0820 (International/Toll) using Conference ID: 939465. An
audio replay of the call will also be available on the Company's
website, http://www.celsion.com, for 30 days after 2:00 p.m. EST Thursday November 5, 2015.
About Celsion Corporation
Celsion is a fully-integrated oncology company focused on
developing a portfolio of innovative cancer treatments, including
directed chemotherapies, immunotherapies and RNA- or DNA-based
therapies. The Company's lead program is ThermoDox®, a proprietary
heat-activated liposomal encapsulation of doxorubicin, currently in
Phase III development for the treatment of primary liver cancer and
in Phase II development for the treatment of recurrent chest wall
breast cancer. The pipeline also includes GEN-1, a DNA-based
immunotherapy for the localized treatment of ovarian and brain
cancers. Celsion has three platform technologies for the
development of novel nucleic acid-based immunotherapies and other
investigational anti-cancer DNA or RNA therapies, including
TheraPlas™, TheraSilence™ and RAST™. For more information on
Celsion, visit our website: http://www.celsion.com.
Celsion wishes to inform readers that forward-looking
statements in this release are made pursuant to the "safe harbor"
provisions of the Private Securities Litigation Reform Act of
1995. Readers are cautioned that such forward-looking
statements involve risks and uncertainties including, without
limitation, unforeseen changes in the course of research and
development activities and in clinical trials, including timing,
enrollment and data; the uncertainties of and difficulties in
analyzing interim clinical data, particularly in small subgroups
that are not statistically significant; FDA and regulatory
uncertainties and risks; the significant expense, time, and risk of
failure of conducting clinical trials; the need for Celsion to
evaluate its future development plans; possible acquisitions or
licenses of other technologies, assets or businesses; possible
actions by customers, suppliers, competitors, regulatory
authorities; and other risks detailed from time to time in the
Celsion's periodic reports and prospectuses filed with the
Securities and Exchange Commission. Celsion assumes no
obligation to update or supplement forward-looking statements that
become untrue because of subsequent events, new information or
otherwise.
Celsion Investor Contact
Jeffrey W. Church
Senior Vice President and CFO
609-482-2455
jchurch@celsion.com
Celsion
Corporation
|
Condensed
Statements of Operations
|
(in thousands
except per share amounts)
|
|
|
Three Months
Ended September
30,
|
|
Nine Months
Ended September
30,
|
|
|
2015
|
|
2014
|
|
2015
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Licensing
revenue
|
$
|
125
|
|
$
|
125
|
|
$
|
375
|
|
$
|
375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
2,883
|
|
|
4,630
|
|
|
10,958
|
|
|
10,688
|
|
General and
administrative
|
|
1,484
|
|
|
2,044
|
|
|
5,317
|
|
|
6,783
|
|
Acquisition
costs
|
|
–
|
|
|
120
|
|
|
–
|
|
|
1,188
|
|
Total operating
expenses
|
|
4,367
|
|
|
6,794
|
|
|
16,275
|
|
|
18,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(4,242)
|
|
|
(6,669)
|
|
|
(15,900)
|
|
|
(18,284)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense)
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) from
change in valuation of
common stock warrant liability
|
|
–
|
|
|
97
|
|
|
(61)
|
|
|
81
|
|
Gain from change in
valuation of earn-out
milestone liability
|
|
283
|
|
|
–
|
|
|
41
|
|
|
–
|
|
Investment income,
net
|
|
15
|
|
|
27
|
|
|
49
|
|
|
57
|
|
Interest
expense
|
|
(323)
|
|
|
(419)
|
|
|
(1,075)
|
|
|
(913)
|
|
Other
expense
|
|
–
|
|
|
22
|
|
|
(1)
|
|
|
20
|
|
Total other
(expense) income, net
|
|
(25)
|
|
|
(273)
|
|
|
(1,047)
|
|
|
(755)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(4,267)
|
|
|
(6,942)
|
|
|
(16,947)
|
|
|
(19,039)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common
share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
$
|
(0.19)
|
|
$
|
(0.40)
|
|
$
|
(0.79)
|
|
$
|
(1.12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
23,023
|
|
|
17,527
|
|
|
21,335
|
|
|
16,932
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Celsion
Corporation
|
Selected Balance
Sheet Information
|
(in
thousands)
|
|
ASSETS
|
|
September
30,
2015
|
|
December
31,
2014
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
7,575
|
$
|
12,687
|
|
Investment securities
and interest receivable
on
investment securities
|
|
16,798
|
|
24,383
|
|
Prepaid expenses and
other current assets
|
|
404
|
|
436
|
|
Total current
assets
|
|
24,777
|
|
37,506
|
|
|
|
|
|
|
|
Property and
equipment
|
|
955
|
|
1,171
|
|
|
|
|
|
|
|
Other
assets
|
|
|
|
|
|
In-process research
and development
|
|
25,802
|
|
25,802
|
|
Goodwill
|
|
1,976
|
|
1,976
|
|
Deposits and other
assets
|
|
149
|
|
240
|
|
Total other
assets
|
|
27,927
|
|
28,018
|
|
|
|
|
|
|
|
Total
assets
|
$
|
53,659
|
$
|
66,695
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
3,952
|
$
|
5,937
|
|
Deferred revenue –
current portion
|
|
500
|
|
500
|
|
Note payable - current
portion
|
|
3,977
|
|
3,654
|
|
Total current
liabilities
|
|
8,429
|
|
10,091
|
|
|
|
|
|
|
|
Earn-out milestone
liability
|
|
13,622
|
|
13,664
|
|
Common stock warrant
liability
|
|
–
|
|
275
|
|
Notes payable –
noncurrent portion
|
|
3,344
|
|
6,053
|
|
Other liabilities –
noncurrent portion
|
|
3,181
|
|
3,787
|
|
Total
liabilities
|
|
28,576
|
|
33,870
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
Common
stock
|
|
231
|
|
201
|
|
Additional paid-in
capital
|
|
238,865
|
|
229,779
|
|
Accumulated other
comprehensive loss
|
|
(2)
|
|
(16)
|
|
Accumulated
deficit
|
|
(212,489)
|
|
(195,074)
|
|
|
|
26,605
|
|
34,890
|
|
Less: Treasury
stock
|
|
(1,522)
|
|
(2,065)
|
|
Total stockholders'
equity
|
|
25,083
|
|
32,825
|
|
|
|
|
|
|
|
Total
liabilities and stockholders' equity
|
$
|
53,659
|
$
|
66,695
|
|
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SOURCE Celsion Corporation