Dimension Therapeutics Reports Second Quarter 2017 Financial Results and Provides Corporate Update
August 08 2017 - 8:00AM
Initial data from Phase 1/2 clinical trial of
DTX301, Dimension’s lead AAV8 vector product candidate for OTC
deficiency, expected year end 2017
Dimension Therapeutics, Inc. (NASDAQ:DMTX), a biopharmaceutical
company advancing novel, adeno-associated virus (AAV) gene
therapies targeting the liver, a key organ for human metabolism,
today reported financial results for the second quarter ended June
30, 2017, and provided a corporate update.
“Following our recently completed strategic review, we are
focused on delivering key clinical milestones later this year and
early in 2018 for multiple programs that have the potential to
benefit people living with devastating rare and metabolic diseases
associated with the liver,” said Annalisa Jenkins, MBBS, FRCP,
Chief Executive Officer of Dimension. “We remain excited about our
broad and unique IMD portfolio based on the AAV8 platform, and look
forward to initial data later this year with DTX301 in OTC
deficiency.”
Recent Highlights and Upcoming Milestones
- Completion of Strategic Review and Update of Corporate
Priorities –
- In June 2017, Dimension announced the completion of a strategic
review and a refocusing of its internal efforts to achieve key
development milestones for its product candidates DTX301 for OTC
deficiency, DTX401 for GSDIa, and DTX201 for hemophilia A.
- The Company expects to realize savings in operating expenses,
including personnel costs, as a result of streamlining headcount by
approximately 25% by the end of 2017.
- Inherited Metabolic Disease (IMD) Programs -
- Continued to advance portfolio of IMD candidates utilizing the
capsid serotype AAV8 – focused on DTX301 for OTC deficiency and
DTX401 for GSDIa.
- DTX301: Ongoing multi-center Phase 1/2
open-label study for lead IMD candidate DTX301. Ten sites open in
the United States, United Kingdom, Spain, and Canada, and
anticipate initial data from the trial by late 2017.
- Trial includes assessment of 13C-acetate to evaluate rate of
ureagenesis and hepatocyte (liver) ureagenesis capacity.
- DTX401: Anticipate IND filing early 2018 and
expect initial clinical data from the trial mid-2018.
- Early stage programs: Ongoing nonclinical
activities supporting selection of a candidate for Wilson disease
(DTX701) in the first half of 2018.
- Hemophilia A Program-
- DTX201: Anticipate IND filing early 2018 in
collaboration with Bayer for the treatment of moderate/severe to
severe hemophilia A, and expect initial data from the trial in
2018.
- DTX101 Phase 1/2 Trial Safety Update -
- Dimension has continued its comprehensive evaluation of data
from the Company’s recently discontinued Phase 1/2 study of DTX101
in moderate/severe-to-severe hemophilia B. The Company’s ongoing
DTX101 extension study for hemophilia B will continue to monitor
all patients dosed for up to five years post dosing.
- As of August 3, 2017, all patients in cohort 1 and cohort 2 had
normal alanine aminotransferase (ALT) levels. Notably, in patient 3
of cohort 2 ALT levels have returned to normal with no lasting
effects of the transient elevation in his liver function
tests.
- The Company plans to present full study findings, including
results from the biomarker and immune analyses, at a future
scientific conference.
- Manufacturing and HeLa 2.0 -
- Ongoing cGMP manufacturing campaigns for all clinical programs
with contract manufacturing organization (CMO) partners in
2017.
- Woburn facility producing material at 250L capacity with HEK293
suspension and HeLa 2.0 to support all needs for GLP toxicology
studies and tech transfer to CMO partners.
Second Quarter 2017 Financial Results
- Cash Position: Cash, cash equivalents and
marketable securities as of June 30, 2017, were $47.5 million. The
Company expects its existing cash, cash equivalents, and marketable
securities, which, along with reimbursements and $15 million of
potential milestones to be received in connection with its
collaboration agreement with Bayer, is expected to enable Dimension
to fund operations to the end of 2018. Without the
milestones, the company would be able to fund operations to
mid-2018.
- Revenue: For the quarter ended June 30, 2017,
the Company recognized $4.4 million of revenue associated with its
collaboration agreement with Bayer compared to $2.4 million for the
same period in 2016. The increase was due to services performed in
connection with the Company’s performance obligations under its
collaboration agreement with Bayer.
- R&D Expenses: Research and development
expenses for the quarter ended June 30, 2017 were approximately
$14.1 million compared to $11.2 million for the same period in
2016. The increase was primarily due to increased expenditures in
IND-enabling, manufacturing and clinical expenses.
- G&A Expenses: General and administrative
expenses for the quarter ended June 30, 2017 were approximately
$2.6 million compared to $3.2 million for the same period in 2016.
The decrease was primarily due to decrease in personnel related
expenses.
- Net Loss: For the quarter ended June 30, 2017,
the Company reported a net loss of $(12.3) million, or $(0.49) per
share, compared to a net loss of $(12.1) million, or $(0.49) per
share, for the same period in 2016.
- Shares Outstanding: As of June 30, 2017, the
Company had approximately 25.0 million common shares issued and
outstanding.
About Dimension Therapeutics, Inc.
Dimension Therapeutics, Inc. (NASDAQ:DMTX) is a leader in
discovering and developing new therapeutic products for people
living with devastating rare and metabolic diseases associated with
the liver, based on the most advanced mammalian adeno-associated
virus (AAV) gene delivery technology. Dimension is actively
progressing its broad pipeline, which features programs addressing
unmet needs for patients suffering from inherited metabolic
diseases, including OTC deficiency and GSDIa, and a collaboration
with Bayer in hemophilia A. Dimension has initiated a phase 1/2
clinical trial with DTX301 for the treatment of OTC deficiency. The
company targets diseases with readily identifiable patient
populations, highly predictive preclinical models, and
well-described, and often clinically validated, biomarkers. Founded
in 2013, Dimension maintains headquarters in Cambridge,
Massachusetts.
Cautionary Note Regarding Forward-Looking
Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, including, but not limited to, statements regarding the
expected benefits of Dimension’s reprioritization, the progress of
Dimension’s manufacturing campaigns and Dimension’s manufacturing
capacity, the potential productivity of Dimension’s ongoing
collaborations, the potential benefits of our existing
collaboration with Bayer, including likelihood of receipt of
contingent payments that may be payable in connection with our
collaboration with Bayer, our ability to establish or maintain
other collaborations or strategic relationships or obtain
additional funding, timing and likelihood of achievement of
Dimension’s upcoming development milestones, including timing of
disclosure of data, the expected progress of Dimension's portfolio
and programs, timing and likelihood of regulatory filings and
approvals, and our ability to develop and advance product
candidates into, and successfully complete, clinical studies. All
such forward-looking statements are based on management's current
expectations of future events and are subject to a number of risks
and uncertainties that could cause actual results to differ
materially and adversely from those set forth in or implied by such
forward-looking statements. These risks and uncertainties include
the risks that Dimension may not have correctly determined the
optimal allocation of resources in connection with its
reprioritization; that Dimension’s product candidates, including
its candidate, DTX301, will not achieve development milestones,
including patient enrollment, dosing of patients, release of
initial data, or regulatory filings; that Dimension may not obtain
the milestone payments in connection with our collaboration with
Bayer; that Dimension may be forced to delay, reduce or eliminate
certain research and development programs, reduce or eliminate
discretionary operating expenses, delay product portfolio
expansion; that Dimension may be unable to raise capital for our
streamlined operations when needed and may not continue as a going
concern; and the other risks described under the caption "Risk
Factors" in Dimension Therapeutics’ Quarterly Report on Form 10-Q
for the period ended June 30, 2017, which is on file with the
Securities and Exchange Commission, as well as other risks detailed
in Dimension Therapeutics’ additional filings with the Securities
and Exchange Commission. All information in this press release is
as of the date of the release, and Dimension Therapeutics
undertakes no duty to update this information unless required by
law.
|
|
DIMENSION THERAPEUTICS,
INC. |
|
|
|
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
|
|
(In thousands, except share and per share
amounts) |
|
|
|
(Unaudited) |
|
|
|
|
|
June 30, |
|
|
December 31, |
|
|
|
2017 |
|
|
2016 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
25,062 |
|
|
$ |
30,234 |
|
Marketable securities |
|
|
22,428 |
|
|
|
47,715 |
|
Accounts
receivable |
|
|
3,097 |
|
|
|
1,885 |
|
Prepaid
expenses and other current assets |
|
|
6,075 |
|
|
|
5,484 |
|
Total
current assets |
|
|
56,662 |
|
|
|
85,318 |
|
Property and equipment,
net |
|
|
7,344 |
|
|
|
8,402 |
|
Deferred offering
costs |
|
|
205 |
|
|
|
145 |
|
Total
assets |
|
$ |
64,211 |
|
|
$ |
93,865 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
1,335 |
|
|
$ |
2,368 |
|
Accrued
expenses and other current liabilities |
|
|
3,339 |
|
|
|
7,247 |
|
Deferred
revenue |
|
|
9,867 |
|
|
|
8,663 |
|
Notes
payable |
|
|
2,455 |
|
|
|
2,361 |
|
Total
current liabilities |
|
|
16,996 |
|
|
|
20,639 |
|
Deferred revenue, net
of current portion |
|
|
7,385 |
|
|
|
8,663 |
|
Notes payable, net of
discount and current portion |
|
|
3,321 |
|
|
|
4,169 |
|
Other liabilities |
|
|
436 |
|
|
|
453 |
|
Total
liabilities |
|
|
28,138 |
|
|
|
33,924 |
|
Commitments and
contingencies (Note 9) |
|
|
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
|
|
|
|
Preferred
stock, $0.0001 par value; 5,000,000 shares authorized at June 30,
2017 and December 31, 2016; zero shares issued or outstanding at
June 30, 2017 and December 31, 2016. |
|
|
— |
|
|
|
— |
|
Common
stock, $0.0001 par value; 150,000,000 shares authorized as of
June 30, 2017 and December 31, 2016; 25,043,506 shares issued
and outstanding as of June 30, 2017 and December 31,
2016. |
|
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
|
162,117 |
|
|
|
160,185 |
|
Accumulated deficit |
|
|
(125,996 |
) |
|
|
(100,195 |
) |
Accumulated other comprehensive loss |
|
|
(50 |
) |
|
|
(51 |
) |
Total
stockholders’ equity |
|
|
36,073 |
|
|
|
59,941 |
|
Total
liabilities and stockholders’ equity |
|
$ |
64,211 |
|
|
$ |
93,865 |
|
|
|
|
|
|
|
|
|
|
DIMENSION THERAPEUTICS, INC. |
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS |
|
|
|
(In thousands, except share and per share
amounts) |
|
|
|
(Unaudited) |
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Revenue |
|
$ |
4,369 |
|
|
$ |
2,371 |
|
|
$ |
7,987 |
|
|
$ |
4,577 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
and development |
|
|
14,089 |
|
|
|
11,240 |
|
|
|
27,803 |
|
|
|
20,045 |
|
General
and administrative |
|
|
2,610 |
|
|
|
3,236 |
|
|
|
6,042 |
|
|
|
6,177 |
|
Total
operating expenses |
|
|
16,699 |
|
|
|
14,476 |
|
|
|
33,845 |
|
|
|
26,222 |
|
Loss from
operations |
|
|
(12,330 |
) |
|
|
(12,105 |
) |
|
|
(25,858 |
) |
|
|
(21,645 |
) |
Interest income,
net |
|
|
21 |
|
|
|
6 |
|
|
|
57 |
|
|
|
35 |
|
Net loss |
|
$ |
(12,309 |
) |
|
$ |
(12,099 |
) |
|
$ |
(25,801 |
) |
|
$ |
(21,610 |
) |
Net loss per share —
basic and diluted |
|
$ |
(0.49 |
) |
|
$ |
(0.49 |
) |
|
$ |
(1.03 |
) |
|
$ |
(0.87 |
) |
Weighted average common
shares outstanding — basic and diluted |
|
|
25,002,532 |
|
|
|
24,899,479 |
|
|
|
24,992,162 |
|
|
|
24,885,823 |
|
Comprehensive
loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(12,309 |
) |
|
$ |
(12,099 |
) |
|
$ |
(25,801 |
) |
|
$ |
(21,610 |
) |
Other comprehensive
loss: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on marketable securities |
|
|
1 |
|
|
|
— |
|
|
|
(50 |
) |
|
|
— |
|
Total
other comprehensive loss |
|
|
1 |
|
|
|
— |
|
|
|
(50 |
) |
|
|
— |
|
Total comprehensive
loss |
|
$ |
(12,308 |
) |
|
$ |
(12,099 |
) |
|
$ |
(25,851 |
) |
|
$ |
(21,610 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This selected financial information should be read in
conjunction with the unaudited, condensed consolidated financial
statements and notes included in the Company's Quarterly Report on
Form 10-Q for the quarter ended June 30, 2017.
Contacts:
Mary Thistle
Chief Operating Officer
Dimension Therapeutics
617-714-0659
mary.thistle@dimensiontx.com
Burns McClellan, on behalf of Dimension Therapeutics
Media: Justin Jackson
212-213-0006, ext.327
jjackson@burnsmc.com
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