-Underwritten Public Offering and Nasdaq
Listing Completed in September 2020
-Positive Phase 3 Interim Analysis Reported
with an Estimated 37 percent More Recoveries Observed in the
Lenzilumab Arm Versus Current Standard of Care
Humanigen, Inc., (HGEN) (“Humanigen”), a clinical stage
biopharmaceutical company focused on preventing and treating an
immune hyper-response called ‘cytokine storm’ with its lead drug
candidate lenzilumab™, today reported financial results for the
third quarter and nine months ended September 30, 2020, provided an
overview of recent accomplishments and issued spending expense
guidance for the remainder of 2020.
“We’ve achieved many important milestones in the third quarter,
including completing a public offering to begin trading on Nasdaq,
being selected for the National Institutes of Health’s ACTIV-5/Big
Effect Trial, strengthening our management team, adding clinical
trial sites in Brazil for our Phase 3 clinical trial of lenzilumab
in patients with COVID-19, and expanding our manufacturing capacity
with new agreements with Catalent and Thermo Fisher,” said Cameron
Durrant, MD, MBA, chief executive officer of Humanigen. “For the
last two months of 2020, we remain focused on enrollment of the
Phase 3 trial of lenzilumab for patients hospitalized with
COVID-19, in which we recently announced a positive analysis of
interim Phase 3 data. As enrollment continues for this trial within
the United States and in Brazil, we anticipate applying for an EUA
in the first quarter of 2021. I’m pleased with how our team has
remained dedicated to advancing promising therapeutics for cytokine
storm and would like to thank the dedicated health care providers
and essential workers who continue to expose themselves to risk
during this pandemic.”
Third Quarter 2020 Review and Recent Corporate
Updates
- Completed an underwritten public offering and uplisted to the
Nasdaq Capital Market in September 2020. Humanigen raised net
proceeds of approximately $72.7 million from the sale of 9,200,000
shares in the offering, including 1,200,000 shares sold upon the
full exercise by the underwriters of their over-allotment option,
after deducting the underwriting discounts and commissions and
estimated offering costs.
- Announced execution of a Cooperative Research and Development
Agreement (CRADA) with the Department of Defense (DoD) in support
of Operation Warp Speed (OWS) to support the development of
lenzilumab as a potential treatment for patients with
COVID-19.
- Released an interim analysis of blinded data safety monitoring
board data from the Phase 3 study suggesting that lenzilumab had a
clinically meaningful impact on patient recovery, with an estimated
37 percent more recoveries observed in the lenzilumab arm of the
randomized, placebo-controlled, double-blinded study versus current
standard of care which includes antivirals and steroids.
- Selected to take part in the ACTIV-5 “Big Effect Trial” funded
by the National Institute of Allergy and Infectious Diseases
(NIAID), part of the National Institutes of Health (NIH) to
evaluate the combination of lenzilumab and remdesivir on treatment
outcomes versus placebo and remdesivir in hospitalized COVID-19
patients. The trial is currently enrolling up to 100 patients in
each arm of the study with an interim analysis for efficacy after
50 patients have been enrolled in each arm.
- Published a case-control study in the Mayo Clinic Proceedings
Journal that demonstrate that an 80% reduction in relative risk of
invasive mechanical ventilation (IMV) and/or death for patients
treated with lenzilumab compared to the matched control group.
- Strengthened our management team with the addition of Dr. Dale
Chappell as chief scientific officer, David Tousley as chief
accounting and administrative officer, Timothy Morris as chief
operating officer and chief financial officer, Bob Atwill as head
of Asia-Pacific region and Edward Jordan as chief commercial
officer.
- Expanded manufacturing capabilities for lenzilumab with supply
agreements with Catalent Biologics, Lonza and Thermo Fisher.
Third Quarter 2020 Financial Results
Net loss for the three months ended September 30, 2020 was $30.8
million or $0.71 per share as compared to $2.4 million or $0.11 per
share for the third quarter of 2019. The increase in net loss for
the quarter was primarily due to an increase in research and
development expenses of $21.9 million from $0.5 million for the
three months ended September 30, 2019 to $22.4 million for the
three months ended September 30, 2020. The increase is primarily
due to reservation fees, technology transfer expenses and material
manufacturing costs of lenzilumab for the Phase 3 clinical study
and in anticipation of filing for an Emergency Use Authorization
(EUA) in 2021 and increase in enrollment in the Phase 3 clinical
trial related to lenzilumab in hospitalized patients with COVID-19.
The increase in the net loss for the third quarter of 2020 was also
due an increase in general and administrative expenses of $6.8
million to $8.3 million from $1.5 million for the three months
ended September 30, 2019. The increase is primarily due to
increased compensation costs including stock based compensation
expense related to the hiring of a chief operating and financial
officer and a chief commercial officer, an increase in bonus
expense upon the completion of certain corporate milestones, and an
increase in legal, accounting and public and investor relations
expenses in preparation for the listing on Nasdaq including a
non-cash charge of $1.9 million for warrants issued to certain
consultants which became exercisable upon the completion of the
listing on Nasdaq.
Nine months ended September 30, 2020 Financial
Results
Net loss for the nine months ended September 30, 2020 was $57.2
million or $1.79 per share as compared to $8.3 million or $0.37 per
share for the first nine months of 2019. The increase in net loss
for the period was due to an increase in research and development
expenses of $42.1 million to $44.2 million from $2.1 million for
the nine months ended September 30, 2019. The increase is primarily
due to material manufacturing costs of lenzilumab for the Phase 3
clinical study and the initiation in May of 2020 of the Phase 3
clinical trial for lenzilumab in hospitalized patients with
COVID-19. The increase in the net loss for the nine months ending
September 30, 2020 was also due to an increase in general and
administrative expenses of $6.6 million to $11.7 million from $5.1
million for the nine months ended September 30, 2019. The increase
is primarily due to increased compensation costs including stock
based compensation expense related to the hiring of function heads
in the third quarter of 2020 and increased bonus expense upon the
completion of certain corporate milestones, and an increase in
legal, accounting and public and investor relations expenses in
connection with for the listing on Nasdaq.
Cash and cash equivalents
Net cash used in operating activities, net of balance sheet
changes, was $23.0 million for the third quarter of 2020. In the
third quarter of 2020 the company raised $72.7 million in net
proceeds from its underwritten public offering of common stock. As
of September 30, 2020, the Company had cash and cash equivalents of
$91.4 million.
Expense Guidance for the Fourth quarter and Full Year
2020
We expect our expenses to continue to increase significantly in
the remaining three months of 2020 as a result of securing
additional manufacturing capacity for the production of lenzilumab,
the expansion of enrollment of patients and sites for the clinical
trials for COVID-19 and the initiation of commercial preparation
activities in anticipation of submitting an EUA in the first
quarter of 2021.
“Spending for the third quarter 2020 was higher than consensus
due to an increase in manufacturing expenses as we secured
additional capacity for lenzilumab to support the clinical trials
and prepare for the filing for the EUA early next year. R&D
expense may double as we expand the Phase 3 clinical study and
continue the production of lenzilumab in the fourth quarter 2020,”
commented Timothy E. Morris, chief operating and financial officer
of Humanigen. “Our current cash balance is sufficient to complete
the phase 3 trial and file the EUA. Now that we are part of
Operation Warp Speed and following the announcement of the CRADA,
we will explore the possibility of financial assistance from the US
government to support development of lenzilumab.”
A summary of key financial highlights as of and for the periods
ended September 30, 2020 and 2019 is as follows ($ in
thousands):
Three Months Ended September 30, Nine Months Ended
September 30,
2020
2019
2020
2019
Research and development $
22,416
$
549
$
44,218
$
2,142
Selling, general and administrative
8,331
1,497
11,685
5,122
Loss from operations
(30,747)
(2,046)
(55,903)
(7,264)
Net loss
$
(30,751)
$
(2,389)
$
(57,240)
$
(8,268)
Net loss per common share $
(0.71)
$
(0.11)
$
(1.79)
$
(0.37)
Weighted average common shares
43,490,071
22,553,322
32,041,790
22,260,783
September 30, 2020
December 31, 2019
Cash and cash equivalents $
91,431
$
143
Current assets $
92,049
$
452
Current liabilities
14,869
13,594
Working Capital $
77,180
$
(13,142)
About Humanigen, Inc.
Humanigen, Inc. is developing its portfolio of clinical and
pre-clinical therapies for the treatment of cancers and infectious
diseases via its novel, cutting-edge GM-CSF neutralization and
gene-knockout platforms. We believe that our GM-CSF neutralization
and gene-editing platform technologies have the potential to reduce
the inflammatory cascade associated with coronavirus infection. The
company’s immediate focus is to prevent or minimize the cytokine
release syndrome that precedes severe lung dysfunction and ARDS in
serious cases of SARS-CoV-2 infection. The company is also focused
on creating next-generation combinatory gene-edited CAR-T therapies
using strategies to improve efficacy while employing GM-CSF gene
knockout technologies to control toxicity. In addition, the company
is developing its own portfolio of proprietary first-in-class
EphA3-CAR-T for various solid cancers and EMR1-CAR-T for various
eosinophilic disorders. The company is also exploring the
effectiveness of its GM-CSF neutralization technologies (either
through the use of lenzilumab as a neutralizing antibody or through
GM-CSF gene knockout) in combination with other CAR-T, bispecific
or natural killer (NK) T cell engaging immunotherapy treatments to
break the efficacy/toxicity linkage, including to prevent and/or
treat graft-versus-host disease (GvHD) in patients undergoing
allogeneic hematopoietic stem cell transplantation (HSCT).
Additionally, Humanigen and Kite, a Gilead Company, are evaluating
lenzilumab in combination with Yescarta® (axicabtagene ciloleucel)
in patients with relapsed or refractory large B-cell lymphoma in a
clinical collaboration. For more information, visit
www.humanigen.com.
Forward-Looking Statements
This release contains forward-looking statements.
Forward-looking statements reflect management's current knowledge,
assumptions, judgment and expectations regarding future performance
or events. Although management believes that the expectations
reflected in such statements are reasonable, they give no assurance
that such expectations will prove to be correct and you should be
aware that actual events or results may differ materially from
those contained in the forward-looking statements. Words such as
"will," "expect," "intend," "plan," "potential," "possible,"
"goals," "accelerate," "continue," and similar expressions identify
forward-looking statements, including, without limitation,
statements regarding our expectations for the Phase 3 study and the
potential future development of lenzilumab, our pathway to and
estimated timing for our intended submission for an Emergency Use
Authorization from FDA, statements regarding our intention to seek
financial assistance for the development of lenzilumab from the US
government, and statements regarding the potential for lenzilumab
to be used to prevent or treat GvHD and, as sequenced therapy with
Kite’s Yescarta, in CAR-T therapies. Forward-looking statements are
subject to a number of risks and uncertainties including, but not
limited to, the risks inherent in our lack of profitability; our
dependence on partners to further the development of our product
candidates; the costs and the uncertainties inherent in the
development, attainment of requisite regulatory approvals and
launch of any new pharmaceutical product; the outcome of pending or
future litigation; and the various risks and uncertainties
described in the "Risk Factors" sections and elsewhere in the
company's periodic and other filings with the Securities and
Exchange Commission.
All forward-looking statements are expressly qualified in their
entirety by this cautionary notice. You should not place undue
reliance on any forward-looking statements, which speak only as of
the date of this release. We undertake no obligation to revise or
update any forward-looking statements made in this press release to
reflect events or circumstances after the date hereof or to reflect
new information or the occurrence of unanticipated events, except
as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20201111005239/en/
Media Cammy Duong Westwicke, an ICR company
Cammy.duong@westwicke.com 203-682-8380 Investors Alan Lada
Solebury Trout ALada@SoleburyTrout.com 617-221-8006
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