Mustang Bio Reports First Quarter 2017 Financial Results and Recent Corporate Highlights
May 15 2017 - 4:05PM
Mustang Bio, Inc. (“Mustang”), a Fortress Biotech (NASDAQ:FBIO)
Company focused on the development of novel immunotherapies based
on proprietary chimeric antigen receptor engineered T cell (CAR T)
technology, today announced financial results and recent corporate
highlights for the quarter ended March 31, 2017.
Dr. Manuel Litchman, President and Chief Executive Officer of
Mustang, said, “In the first quarter of 2017, Mustang strengthened
our position as an emerging leader in the CAR T field with key
milestones that will enable us to advance the development of
meaningful therapies. From October 2016 to March 2017, we secured
roughly $95.0 million in private placement financings to support
the clinical progress of our lead CAR T therapies, MB-101 and
MB-102, and our expansion into new CAR Ts and therapeutic
indications. In addition, we entered into strategic licensing
agreements that will allow us to build out our cancer detection and
targeting applications. I was thrilled to join the team in April,
and look forward to continuing to deliver on milestones that
validate Mustang’s therapeutic potential.”
Financial Results:
- As of March 31, 2017, Mustang’s cash totaled $75.0 million
compared to $27.5 million at December 31, 2016, an increase of
$47.5 million for the quarter.
- Research and development expenses were $0.7 million for the
first quarter of 2017, compared to $0.6 million for the first
quarter of 2016.
- Research and development expenses from license acquisitions
totaled $0.6 million for the first quarter of 2017, compared to $0
for the first quarter of 2016.
- General and administrative expenses were $2.0 million for the
first quarter of 2017, compared to $0.3 million for the first
quarter of 2016.
- Net loss attributable to common stockholders was $3.2 million,
or $0.14 per share, for the first quarter of 2017. This compares to
a net loss attributable to common stockholders of $0.9 million, or
$0.09 per share, for the first quarter of 2016.
Recent Corporate Highlights:
- From October 2016 to March 2017, Mustang closed on a total of
approximately $95.0 million in private placement financings, prior
to fees and expenses.
- In February 2017, Mustang entered into three amended and
restated exclusive patent license agreements with City of Hope
(“COH”) related to Mustang’s lead therapies IL13Rα2-specific CAR
(MB-101) and CD123 CAR (MB-102), and to spacer technology to be
used in the development of CAR T treatments. These agreements
amended and replaced an original patent license agreement between
Mustang and COH related to IL13Rα2, CD123 and spacer
technology.
- Also in February 2017, Mustang entered into an exclusive
license agreement with COH to acquire intellectual property rights
in patent applications related to the intraventricular and
intracerebroventricular methods of delivering T cells that express
CARs.
- In March 2017, Mustang entered into an exclusive license
agreement to acquire intellectual property rights in patent
applications related to engineered anti-prostate stem cell antigen
antibodies for cancer detection and targeting.
- In April 2017, Mustang appointed Dr. Litchman as President and
Chief Executive Officer, as well as a member of the Board of
Directors.
About Mustang BioMustang Bio, Inc., a
subsidiary of Fortress Biotech, Inc., is a clinical‐stage
biopharmaceutical company focused on the development and
commercialization of novel cancer immunotherapy products designed
to leverage the patient’s own immune system to eliminate cancer
cells. Mustang aims to acquire rights to these technologies by
licensing or otherwise acquiring an ownership interest, funding
research and development, and outlicensing or bringing the
technologies to market. Mustang is currently developing proprietary
chimeric antigen receptor (CAR) engineered T cell (CAR T)
technology, which was licensed from Drs. Stephen Forman and
Christine Brown’s laboratory at the City of Hope National Medical
Center (“COH”). Mustang and COH have established a research
agreement to develop CARs across multiple cancers. Mustang’s lead
programs are in Phase 1 trials at COH: MB-101 for the treatment of
brain cancer, and MB-102 as a therapeutic agent in acute myeloid
leukemia. Mustang is registered under the Securities Exchange Act
of 1934, as amended, and files periodic reports with the U.S.
Securities and Exchange Commission. For more information, visit
www.mustangbio.com.
About Fortress BiotechFortress
Biotech, Inc. (“Fortress”) is a biopharmaceutical company dedicated
to acquiring, developing and commercializing novel pharmaceutical
and biotechnology products. Fortress develops and commercializes
products both within Fortress and through certain of its subsidiary
companies, also known as Fortress Companies. In addition to its
internal development programs, Fortress leverages its
biopharmaceutical business expertise and drug development
capabilities and provides funding and management services to help
the Fortress Companies achieve their goals. Fortress and the
Fortress Companies may seek licensings, acquisitions, partnerships,
joint ventures and/or public and private financings to accelerate
and provide additional funding to support their research and
development programs. For more information, visit
www.fortressbiotech.com.
Forward-Looking StatementsThis
press release may contain “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, each as amended. Such
statements include, but are not limited to, any statements relating
to our growth strategy and product development programs and any
other statements that are not historical facts. Forward-looking
statements are based on management’s current expectations and are
subject to risks and uncertainties that could negatively affect our
business, operating results, financial condition and stock value.
Factors that could cause actual results to differ materially from
those currently anticipated include: risks relating to our growth
strategy; risks relating to the results of research and development
activities; risks relating to the timing of starting and completing
clinical trials; our ability to obtain, perform under and maintain
financing and strategic agreements and relationships; uncertainties
relating to preclinical and clinical testing; our dependence on
third-party suppliers; our ability to attract, integrate and retain
key personnel; the early stage of products under development; our
need for substantial additional funds; government regulation;
patent and intellectual property matters; competition; as well as
other risks described in our SEC filings. We expressly disclaim any
obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in our expectations or any changes in events,
conditions or circumstances on which any such statement is based,
except as required by law.
MUSTANG BIO, INC. |
UNAUDITED CONDENSED BALANCE
SHEETS |
($ in thousands, except for share and per share
amounts) |
|
|
|
|
|
|
|
|
|
March 31, |
|
|
December 31, |
|
|
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
Cash |
|
$ |
75,010 |
|
|
$ |
27,499 |
|
Prepaid
expenses |
|
|
15 |
|
|
|
- |
|
Total
current assets |
|
|
75,025 |
|
|
|
27,499 |
|
Total
Assets |
|
$ |
75,025 |
|
|
$ |
27,499 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current
Liabilities: |
|
|
|
|
|
|
|
|
Accounts
payable and accrued expenses |
|
$ |
766 |
|
|
$ |
683 |
|
Common
shares issuable liability |
|
|
- |
|
|
|
1,682 |
|
Accrued
expenses - related party |
|
|
15 |
|
|
|
125 |
|
Accrued
interest - related party |
|
|
2 |
|
|
|
413 |
|
Notes
payable - related party |
|
|
28 |
|
|
|
320 |
|
Total
current liabilities |
|
|
811 |
|
|
|
3,223 |
|
Total
Liabilities |
|
|
811 |
|
|
|
3,223 |
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity |
|
|
|
|
|
|
|
|
Preferred stock
($0.0001 par value), 2,000,000 shares authorized, 250,000 shares of
Class A preferred stock issued and outstanding as of March 31, 2017
and December 31, 2016, respectively |
|
|
- |
|
|
|
- |
|
Common Stock ($0.0001
par value), 50,000,000 shares authorized |
|
|
- |
|
|
|
|
|
Class A
common shares, 1,000,000 shares issued and outstanding as of
March 31, 2017 and December 31, 2016, respectively |
|
|
- |
|
|
|
- |
|
Common
shares, 25,041,889 and 15,165,244 shares issued and
outstanding as of March 31, 2017 and December 31, 2016,
respectively |
|
|
3 |
|
|
|
2 |
|
Common stock issuable,
0 and 767,264 shares as of March 31, 2017 and December 31, 2016,
respectively |
|
|
- |
|
|
|
4,396 |
|
Additional paid-in
capital |
|
|
94,549 |
|
|
|
36,998 |
|
Accumulated
deficit |
|
|
(20,338 |
) |
|
|
(17,120 |
) |
Total
Stockholders’ Equity |
|
|
74,214 |
|
|
|
24,276 |
|
Total
Liabilities and Stockholders’ Equity |
|
$ |
75,025 |
|
|
$ |
27,499 |
|
MUSTANG BIO, INC. |
UNAUDITED CONDENSED STATEMENTS OF
OPERATIONS |
($ in thousands, except for share and per share
amounts) |
|
|
|
|
|
|
For the three months ended March
31, |
|
|
|
2017 |
|
|
2016 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
$ |
706 |
|
|
$ |
567 |
|
Research and development – licenses acquired |
|
|
575 |
|
|
|
- |
|
General and administrative |
|
|
2,025 |
|
|
|
255 |
|
Loss
from operations |
|
|
(3,306) |
|
|
|
(822) |
|
|
|
|
|
|
|
|
|
|
Other
income (expense) |
|
|
|
|
|
|
|
|
Interest income |
|
|
90 |
|
|
|
- |
|
Interest expense - related party |
|
|
(2 |
) |
|
|
(81 |
) |
Total
other income (expense) |
|
|
88 |
|
|
|
(81 |
) |
Net Loss |
|
$ |
(3,218 |
) |
|
$ |
(903 |
) |
|
|
|
|
|
|
|
|
|
Net
loss per common share outstanding, basic and diluted |
|
$ |
(0.14 |
) |
|
$ |
(0.09 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding, basic and
diluted |
|
|
22,401,000 |
|
|
|
10,052,198 |
|
Contacts:
Jaclyn Jaffe
Mustang Bio, Inc.
(781) 652‐4500
ir@mustangbio.com
Fortress Biotech Media Relations
Laura Bagby
6 Degrees
(312) 448-8098
lbagby@6degreespr.com
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