Oncothyreon Reports Full Year and Fourth Quarter 2015 Financial Results & Provides Corporate Update
March 14 2016 - 4:01PM
--Initiated Phase 2 ONT-380 Trial Based on
Encouraging Combination Data--
Oncothyreon Inc. (NASDAQ:ONTY), a clinical-stage biopharmaceutical
company dedicated to the development of therapeutic products that
can improve the lives and outcomes of patients with cancer, today
provided a corporate update and reported financial results for the
year and quarter ended December 31, 2015.
“2015 was a significant year for Oncothyreon,
with the company reporting encouraging data from two combination
trials of ONT-380 demonstrating that this product candidate may be
impactful on HER2-positive breast cancer patients, including those
with brain metastases – a patient population in desperate need of
new treatment options,” said Christopher S. Henney, Chairman and
interim CEO of Oncothyreon. “We believe our clinical results to
date provided a strong foundation for us to advance ONT-380 into
our recently initiated randomized, double-blind, placebo-controlled
Phase 2 trial in combination with Herceptin and Xeloda, which
includes enrolling patients with progressing central nervous system
disease.”
Corporate Update & Recent Highlights
Clinical Development:
- ONT-380 Phase 2 Combination Trial Underway in Patients
with HER2-Positive Breast Cancer. The randomized,
double-blind, placebo control trial is evaluating ONT-380 in
combination with Herceptin® (trastuzumab) and Xeloda®
(capecitabine). ONT-380 is an oral, HER2-selective, central nervous
system (CNS)-active tyrosine kinase inhibitor. The trial is
targeted to enroll approximately 180 heavily pretreated patients
with advanced HER2-positive breast cancer who present with or
without brain metastases. Building on encouraging Phase 1b
results, the primary and secondary endpoint objectives are designed
to measure ONT-380’s contribution on both systemic and CNS disease,
an area of unmet need for patients.
- Data from Ongoing ONT-380 Phase 1b Combination Trials
Show Objective, Durable Responses and Favorable Tolerability
Profile. During 2015, data from two ongoing trials
of ONT-380 were presented at the American Society of Clinical
Oncology (ASCO) and the San Antonio Breast Cancer Symposium
(SABCS).
- ONT-380 in combination with Xeloda and/or Herceptin:
- This Phase 1b trial enrolled patients with metastatic
HER2-positive breast cancer with progression following prior
treatment with Herceptin and Kadcyla® (ado-trastuzumab emtansine or
T-DM1). In addition to patients without a prior history of
CNS disease, patients with untreated, asymptomatic CNS disease and
patients with progressing CNS disease after prior local therapy
were allowed to enroll in the trial and were followed for responses
both systemically and in the CNS. Overall, ONT-380 in
combination with Xeloda, Herceptin or both Xeloda and Herceptin has
been well tolerated. As reported at ASCO 2015, in a total of
32 patients treated with these combinations, the majority of
adverse events were Grade 1 or 2 in severity, with no reported
Grade 3 diarrhea. As reported at SABCS 2015, the objective response
rate across treatment groups was 42 percent and the CNS response
rate was 33 percent, providing encouraging data to support moving
forward with a follow-on Phase 2 study of ONT-380 in combination
with Xeloda and Herceptin.
- ONT-380 in combination with Kadcyla:
- This Phase 1b trial enrolled patients with metastatic
HER2-positive breast cancer with progression following prior
treatment with Herceptin and a taxane. Patients may have received
prior treatment with Perjeta® (pertuzumab) and Tykerb® (lapatinib).
Patients with or without brain metastases were eligible. This trial
has completed enrollment, but is ongoing with patients continuing
to receive treatment. Clinical data from this trial were presented
at SABCS 2014 and 2015, and at ASCO 2015. Overall, the combination
of ONT-380 and Kadcyla was clinically well tolerated in 50 patients
treated at the maximum tolerated dose of ONT-380, with the majority
of adverse events either Grade 1 or Grade 2 in severity. Grade 3
diarrhea was reported in 4 percent of patients. Durable (>6
months) systemic and CNS responses and disease stabilization were
seen, with an objective response rate of 41 percent and a CNS
response rate of 33 percent.
Internal Research & Discovery
Collaborations:
- Research Collaboration Moving Chk1 Inhibitors
Forward. During 2015, Oncothyreon continued preclinical
activities to develop a small molecule against the checkpoint
kinase 1 (Chk1) target in collaboration with Sentinel
Oncology. IND-enabling studies are expected to begin in
2017.
- Protocell Research Program Progressing. During
2015, Oncothyreon continued research on protocells, a novel
nanoparticle platform technology that may enable the targeted
delivery of a variety of therapeutic agents.
Leadership:
- Expanded Leadership Team, CEO Search Underway.
In January 2016, Oncothyreon announced the appointment
of Christopher S. Henney, the company's chairman, as interim
CEO. The company’s comprehensive search for a new CEO is
actively ongoing.
Additionally, Oncothyreon appointed three new
members to its Board of Directors: Steven P. James in March
2015 and Mark Lampert and Gwen Fyfe, M.D. in January
2016.
Full Year and Fourth Quarter 2015 Financial
Highlights
- Cash, cash equivalents and investments totaled $56.4 million as
of December 31, 2015, compared to $63.7 million at December 31,
2014, a decrease of $7.3 million, or 11.5%. The decrease was
primarily attributable to $28.9 million of cash used in operations
during the year ended December 31, 2015, partially offset by
the net proceeds of $22.4 million from the closing of concurrent
but separate underwritten offerings of common stock and Series B
convertible preferred stock in February
2015.
- Research and development expenses for the fourth quarter of
2015 decreased by $19.1 million to $6.9 million from $26.0 million
in the fourth quarter of 2014. Full year research and development
expenses decreased by $18.4 million to $23.5 million in 2015 from
$41.9 million in 2014. The fourth quarter and full year
decrease in expense was primarily the result of the one-time
upfront payment made to Array Biopharma in December
2014.
- General and administrative expenses for the fourth quarter of
2015 increased by $0.4 million to $2.3 million, from $1.9 million
in the fourth quarter of 2014. Full year 2015 general and
administrative expenses were $9.3 million, an increase of $0.3
million from $9.0 million in 2014. This increase was primarily due
to patent expenses related to our product candidates.
- Net loss for the year ended December 31, 2015 was $32.6
million, or $0.34 per basic and diluted share, compared with a net
loss of $50.0 million, or $0.64 per basic and diluted share, for
the comparable period in 2014. Net loss for the three months ended
December 31, 2015 was $9.1 million, or $0.10 per basic and diluted
share, compared with a net loss of $27.6 million, or $0.30 per
basic and diluted share, for the comparable period in 2014. The
decrease in net loss for the year and quarter was primarily
attributable to a $20.0 million upfront payment Oncothyreon made to
Array BioPharma upon entering into an exclusive license agreement
in December 2014. The decrease in net loss was partly offset by
slightly higher general and administrative expenses and lower
non-cash income from the change in the fair value of our warrant
liability.
Financial Guidance
Oncothyreon believes the following financial
guidance to be correct as of the date provided. Oncothyreon
is providing this guidance as a convenience to investors and
assumes no obligation to update it.
Oncothyreon currently expects operating expenses
in 2016 to be higher than in 2015. This increase will primarily be
related to expenditures associated with the Phase 2 trial of
ONT-380. Oncothyreon currently expects cash used in operations in
2016 to be approximately $38.0 million to $40.0 million. With
cash, cash equivalents and investments of $56.4 million as of
December 31, 2015, Oncothyreon estimates that its cash,
cash-equivalents and investments will be sufficient to fund
operations for at least the next 12 months.
About Oncothyreon
Oncothyreon is a clinical-stage
biopharmaceutical company specializing in the development of
innovative therapeutic products for the treatment of cancer. Our
goal is to discover, develop and commercialize novel compounds that
have the potential to improve the lives and outcomes of cancer
patients. Our most advanced product candidate is ONT-380, an orally
active and selective small molecule HER2 inhibitor. We are
developing preclinical product candidates in oncology and
immune-oncology using our protocell technology. For more
information, visit www.oncothyreon.com.
Forward-Looking Statements
In order to provide Oncothyreon’s investors with
an understanding of its current results and future prospects, this
release contains statements that are forward-looking. Any
statements contained in this press release that are not statements
of historical fact may be deemed to be forward-looking statements.
Words such as “believes,” “anticipates,” “plans,” “expects,”
“will,” “intends,” “potential,” “possible” and similar expressions
are intended to identify forward-looking statements. These
forward-looking statements include Oncothyreon’s expectations
regarding clinical and preclinical development activities,
potential benefits of its current and future product candidates,
future expenses and the use and adequacy of cash resources.
Forward-looking statements involve risks and
uncertainties related to Oncothyreon’s business and the general
economic environment, many of which are beyond its control. These
risks, uncertainties and other factors could cause Oncothyreon’s
actual results to differ materially from those projected in
forward-looking statements, including the risks associated with the
costs and expenses of developing its product candidates, the
adequacy of financing and cash, cash equivalents and investments,
changes in general accounting policies, general economic factors,
achievement of the results it anticipates from its preclinical
development and clinical trials of its product candidates and its
ability to adequately obtain and protect its intellectual property
rights. Although Oncothyreon believes that the forward-looking
statements contained herein are reasonable, it can give no
assurance that its expectations are correct. All forward-looking
statements are expressly qualified in their entirety by this
cautionary statement. For a detailed description of Oncothyreon’s
risks and uncertainties, you are encouraged to review the documents
filed with the securities regulators in the United States on EDGAR
and in Canada on SEDAR. Except as required by law, Oncothyreon does
not undertake any obligation to publicly update its forward-looking
statements based on events or circumstances after the date
hereof.
Additional Information
Additional information relating to Oncothyreon can be found on
EDGAR at www.sec.gov and on SEDAR at www.sedar.com.
ONCOTHYREON INC. 2601 Fourth Avenue, Suite 500,
Seattle, WA 98121
Tel: (206) 801-2100 Fax: (206)
801-2101
http://www.oncothyreon.com
ONCOTHYREON INC. |
Consolidated Statements of Operations |
(In thousands except share and per share amounts) |
(Unaudited) |
|
|
Three months ended
December 31, |
Year ended
December 31, |
|
2015 |
2014 |
2015 |
2014 |
|
|
|
|
|
Operating
Expenses |
|
|
|
|
Research and development |
$ |
6,887 |
|
$ |
26,008 |
|
$ |
23,468 |
|
$ |
41,884 |
|
General and administrative |
|
2,264 |
|
|
1,850 |
|
|
9,321 |
|
|
8,951 |
|
Total operating expenses |
|
9,151 |
|
|
27,858 |
|
|
32,789 |
|
|
50,835 |
|
Loss from operations |
|
(9,151 |
) |
|
(27,858 |
) |
|
(32,789 |
) |
|
(50,835 |
) |
Other income
(expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment and other income
(expense), net |
|
20 |
|
|
24 |
|
|
80 |
|
|
76 |
|
Change in fair value of warrant
liability |
|
|
— |
|
|
255 |
|
|
128 |
|
|
796 |
|
Total other income (expense),
net |
|
20 |
|
|
279 |
|
|
208 |
|
|
872 |
|
Net
loss |
$ |
(9,131 |
) |
$ |
(27,579 |
) |
$ |
(32,581 |
) |
$ |
(49,963 |
) |
Net loss per share
– basic and diluted |
$ |
(0.10 |
) |
$ |
(0.30 |
) |
$ |
(0.34 |
) |
$ |
(0.64 |
) |
Shares used to
compute basic and diluted net loss per share |
|
94,934,417 |
|
|
91,566,479 |
|
|
96,617,119 |
|
|
77,619,807 |
|
ONCOTHYREON INC. |
|
Consolidated Balance Sheet Data |
|
(In thousands except share amounts) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
|
|
|
December 31, 2015 |
|
December 31, 2014 |
|
|
|
Cash, cash
equivalents and investments |
|
$ |
56,360 |
|
|
$ |
63,714 |
|
|
|
|
Total
assets |
|
$ |
96,574 |
|
|
$ |
103,103 |
|
|
|
|
Long term
liabilities |
|
$ |
8,044 |
|
|
$ |
7,430 |
|
|
|
|
Stockholders’ equity |
|
$ |
83,735 |
|
|
$ |
91,266 |
|
|
|
|
Common
shares outstanding |
|
|
94,961,859 |
|
|
|
91,601,352 |
|
|
|
Investor Contact:
Julie Rathbun
Rathbun Communications
206-769-9219
ir@oncothyreon.com
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