Completed Merger with Threshold Pharmaceuticals
in August
Molecular Templates, Inc. (Nasdaq:MTEM), a clinical-stage
oncology company focused on the discovery and development of the
company’s proprietary engineered toxin bodies (ETBs), which are
differentiated, targeted, biologic therapeutics for cancer, today
reported financial results for the third quarter of 2017. As of
September 30, 2017, cash and cash equivalents totaled $68.2
million.
“The completion of our merger with
Threshold Pharmaceuticals as well as the $60M in financings in the
third quarter mark a significant milestone for Molecular
Templates,” said Molecular Templates’ Chief Executive Officer and
Chief Scientific Officer, Eric Poma, Ph.D. “The merger and
financings put us in a strong position to continue to execute on
the development of our lead program, MT-3724, in aggressive
lymphomas as well as make strides toward the clinic in 2018 with
our next generation of ETBs currently in preclinical
development. Additionally, we are excited about our ongoing
research collaboration with Takeda Pharmaceuticals as we look to
expand the application of our ETB technology.”
Company Highlights and Upcoming
Milestones
Corporate
- On August 1, 2017, we successfully completed the reverse merger
with Threshold Pharmaceuticals, Inc. (previously Nasdaq ticker:
THLD) and concurrently changed the Company’s name to Molecular
Templates, Inc. (new Nasdaq ticker: MTEM).
- On August 1, 2017, we closed an equity financing for $40
million; as well as a private placement of $20 million to
Millennium Pharmaceuticals, Inc., a wholly owned subsidiary of
Takeda Pharmaceutical Company Ltd.
MT-3724
- On October 24, 2017, we announced the identification of the
maximum tolerated dose (MTD) for MT-3724 and the initiation of and
first patient dosed in an expansion cohort, as part of the second
portion of the ongoing Phase I study focused on relapsed/refractory
diffuse large B-cell lymphoma (DLBCL) patients. The expansion
cohort is expected to better define the overall response rate to
MT-3724 in heavily pre-treated DLBCL patients. Initial results of
this expansion cohort are expected to be announced in
1H18.
- Molecular anticipates initiating a Phase II monotherapy study
in relapsed and refractory DLBCL patients in 2018.
Takeda Collaboration
- Expanded Takeda collaboration in June 2017 with Multi-Target
Research and Licensing Collaboration Agreement to develop
next-generation oncology therapies, including stock purchase.
MT-4019
- Continued development of MT-4019, an ETB candidate that is
designed to target CD38-expressing myeloma cancer cells.
- Plan to submit an IND application to the FDA in mid-2018 to
initiate a Phase I clinical trial in the United States.
Research
- Several other ETB candidates in pre-clinical development
targeting both solid and hematological cancers where the
differentiated mechanism of action innate to ETBs, ribosome
inactivation, could play a significant role in treating
cancer.
Financial Results
The net loss attributable to common shareholders
for the third quarter was $(11.1) million, or $(0.62) per basic and
diluted share. This is compared to a net loss attributable to
common shareholders for the same period in 2016, of $(3.6) million,
or $(11.89) per basic and diluted share. As of September 30, 2017,
cash and cash equivalents totaled $68.2 million, which includes
$11.2 million received from the merger with Threshold
Pharmaceuticals in August 2017 and the receipt of $60 million for
two financings that closed on the same day.
Revenues for the third quarter of 2017 were $0.6
million, compared to no revenues during the same period in
2016. Revenues for the third quarter of 2017 related to
research and development revenues from our collaboration with
Takeda.
Total research and development (R&D)
expenses for the third quarter of 2017 were $2.5 million, compared
with $2.3 million for the same period in 2016. The $0.2 million
increase in R&D expenses in the third quarter of 2017, compared
with the same period in 2016, was primarily due to severance
benefits related to the merger with Threshold.
Total general and administrative (G&A)
expenses for the third quarter of 2017 were $4.0 million, compared
with $0.8 million for the same period in 2016. The $3.2
million increase in G&A expenses in the third quarter of 2017,
compared with the same period in 2016, was primarily due to costs
associated with the Merger and being a publicly traded company.
Revenues for the nine months ended September 30,
2017 were $2.6 million, compared to $1.5 million for the same
period in 2016. Revenues for the nine months ended September 30,
2017 were primarily comprised of research and development revenues
from our collaboration with Takeda. Revenues for the same period in
2016 comprised of grant revenue from the Cancer Prevention &
Research Institute of Texas (“CPRIT”).
Total R&D expenses for the nine months ended
September 30, 2017 were $4.8 million, compared to $7.2 million for
the same period in 2016. The $2.4 million decrease in R&D
expenses for the nine months ended September 30, 2017, compared the
same period in 2016, was primarily due to decreased spending for
outsourced preclinical costs.
Total G&A expenses for the nine months ended
September 30, 2017 were $8.2 million, compared to $2.6 million for
the same period in 2016. The $5.6 million increase in G&A
spending for the nine months ended September 30, 2017, compared to
the same period in 2016, was primarily due to costs associated with
the Merger and being a publicly traded company.
The net loss attributable to common shareholders
for the nine months ended September 30, 2017 was $(17.2) million,
or $(2.75) per basic and diluted share, compared to a net loss
attributable to common shareholders of $(9.6) million or $(32.01)
per basic and diluted share, for the same period in 2016.
About Molecular Templates
Molecular Templates is a clinical-stage oncology
company focused on the discovery and development of differentiated,
targeted, biologic therapeutics for cancer. We believe our
proprietary biologic drug platform technology, referred to as
engineered toxin bodies, or ETBs, provides a differentiated
mechanism of action that may address some of the limitations
associated with currently available cancer therapeutics. ETBs
utilize a genetically engineered form of Shiga-like Toxin A
subunit, or SLTA, a ribosome inactivating bacterial protein, that
can be targeted to specifically destroy cancer cells.
Additional information about Molecular Templates can be obtained at
http://www.mtem.com.
Forward-Looking Statements
This press release contains forward-looking
statements for purposes of the Private Securities Litigation Reform
Act of 1995 (the “Act”). Molecular Templates disclaims any intent
or obligation to update these forward-looking statements, and
claims the protection of the Act’s Safe Harbor for forward-looking
statements. All statements, other than statements of
historical facts, included in this press release regarding
strategy, future operations, future financial position, future
revenue, projected expenses, prospects, plans and objectives of
management are forward-looking statements. In addition, when or if
used in this press release, the words “may,” “could,” “should,”
“anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,”
“predict” and similar expressions and their variants, as they
relate to Molecular Templates may identify forward-looking
statements. Examples of such statements include, but are not
limited to, statements relating to the development of the Company’s
lead program, MT-3724; the Company making strides toward the clinic
in 2018 with its next generation of ETBs currently in preclinical
development; expanding the application of the Company’s ETB
technology; the Company’s expectation that its expansion cohort
will better define the overall response rate of MT-3724 in heavily
treated DLBCL patients; and the Company’s belief that its
proprietary biologic drug platform technology, or ETBs, provides
for a differentiated mechanism of action that may address some of
the limitations associated with currently available cancer
therapeutics.
Forward-looking statements are not guarantees of
future performance and involve risks and uncertainties. Actual
events or results may differ materially from those discussed in the
forward-looking statements as a result of various factors. For a
more detailed discussion of the potential risks and uncertainties
that may impact their accuracy, see the “Risk Factors” sections in
Molecular Templates’ filings with the Securities and Exchange
Commission. Given these risks, uncertainties and other factors, you
should not place undue reliance on these forward-looking
statements. Also, these forward-looking statements reflect our view
only as of the date of this press release. We hereby qualify
our forward-looking statements by our cautionary statements.
Except as required by law, we assume no obligation to update
these forward-looking statements publicly, or to update the reasons
that actual results could differ materially from those anticipated
in these forward-looking statements, even if new information
becomes available in the future.
Contact: Michael WoodInvestor
Relations & Corporate Communications(646) 597-6983
Molecular Templates, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(in thousands, except per share
data) (unaudited) |
|
|
|
|
|
|
|
|
Three Months
EndedSeptember 30, |
|
|
Nine Months
EndedSeptember 30, |
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Collaboration revenue |
$ |
648 |
|
|
$ |
— |
|
|
$ |
2,408 |
|
|
$ |
— |
|
Grant
revenue |
|
— |
|
|
|
— |
|
|
|
167 |
|
|
|
1,526 |
|
Total
revenue |
|
648 |
|
|
|
0 |
|
|
|
2,575 |
|
|
|
1,526 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
and development |
|
2,522 |
|
|
|
2,271 |
|
|
|
4,829 |
|
|
|
7,178 |
|
General
and administrative |
|
3,996 |
|
|
|
810 |
|
|
|
8,233 |
|
|
|
2,553 |
|
Total operating expenses |
|
6,518 |
|
|
|
3,081 |
|
|
|
13,062 |
|
|
|
9,731 |
|
Loss
from operations |
|
(5,870 |
) |
|
|
(3,081 |
) |
|
|
(10,487 |
) |
|
|
(8,205 |
) |
Interest
and other income, net |
|
1 |
|
|
|
6 |
|
|
|
2 |
|
|
|
18 |
|
Other
expense, net |
|
(107 |
) |
|
|
(118 |
) |
|
|
(752 |
) |
|
|
(279 |
) |
Change
in fair value of warrant liabilities |
|
(272 |
) |
|
|
1 |
|
|
|
(269 |
) |
|
|
2 |
|
Loss on
conversion of notes |
|
(4,719 |
) |
|
|
— |
|
|
|
(4,719 |
) |
|
|
— |
|
Net
loss |
|
(10,967 |
) |
|
|
(3,192 |
) |
|
|
(16,225 |
) |
|
|
(8,464 |
) |
Deemed
dividends on preferred stock |
|
(138 |
) |
|
|
(393 |
) |
|
|
(958 |
) |
|
|
(1,179 |
) |
Net loss
attributable to common shareholders |
$ |
(11,105 |
) |
|
$ |
(3,585 |
) |
|
$ |
(17,183 |
) |
|
$ |
(9,643 |
) |
Net loss
per share attributable to common shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted |
$ |
(0.62 |
) |
|
$ |
(11.89 |
) |
|
$ |
(2.75 |
) |
|
$ |
(32.01 |
) |
Weighted
average number of shares used in net loss per share
calculations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted |
|
17,926 |
|
|
|
301 |
|
|
|
6,242 |
|
|
|
301 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Molecular Templates, Inc. CONDENSED
CONSOLIDATED BALANCE SHEETS(in thousands)
(unaudited) |
|
|
|
|
|
|
|
|
September 30, |
|
|
December 31, |
|
2017 |
2016 |
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
68,181 |
|
|
$ |
1,716 |
|
Accounts
receivable |
|
38 |
|
|
|
— |
|
Prepaid
expenses and other current assets |
|
1,363 |
|
|
|
127 |
|
Total current
assets |
|
69,582 |
|
|
|
1,843 |
|
Property and equipment,
net |
|
963 |
|
|
|
334 |
|
In-process research and
development |
|
27,300 |
|
|
|
— |
|
Goodwill |
|
3,314 |
|
|
|
— |
|
Intangible assets |
|
1,321 |
|
|
|
921 |
|
Other assets |
|
57 |
|
|
|
— |
|
Total
assets |
$ |
102,537 |
|
|
$ |
3,098 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
Accounts
payable |
$ |
3,823 |
|
|
$ |
934 |
|
Accrued
liabilities |
|
1,500 |
|
|
|
1,210 |
|
Current
portion of long-term debt |
|
2,348 |
|
|
|
2,400 |
|
Current
portion of capital lease obligations |
|
51 |
|
|
|
36 |
|
Related
party debt |
|
— |
|
|
|
7,315 |
|
Deferred
revenue |
|
3,585 |
|
|
|
1,870 |
|
Total
current liabilities |
|
11,307 |
|
|
|
13,765 |
|
Capital
lease obligations, net of current portion |
|
60 |
|
|
|
53 |
|
Warrant
liabilities |
|
1,392 |
|
|
|
49 |
|
Deferred rent |
|
145 |
|
|
|
— |
|
Long-term
debt, net of current portion |
|
1,734 |
|
|
|
3,165 |
|
Total liabilities |
|
14,638 |
|
|
|
17,032 |
|
Redeemable convertible
preferred stock |
|
— |
|
|
|
25,871 |
|
Stockholders’ equity
(deficit): |
|
87,899 |
|
|
|
(39,805) |
|
Total liabilities and
stockholders’ equity (deficit) |
$ |
102,537 |
|
|
$ |
3,098 |
|
|
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