LAVA Therapeutics Provides Business Update and Reports Fourth Quarter and Year-End 2022 Financial Results
April 11 2023 - 7:00AM
LAVA Therapeutics N.V. (Nasdaq: LVTX), a clinical-stage
immuno-oncology company focused on developing its proprietary
Gammabody™ platform of bispecific gamma-delta T cell engagers,
today announced recent corporate highlights and financial results
for the fourth quarter and year ended December 31, 2022.
“2022 was a very productive year for LAVA, marked by steady
progress in the clinical development of our lead programs, LAVA-051
and LAVA-1207,” said Stephen Hurly, president and chief executive
officer of LAVA Therapeutics. “We are encouraged by the initial
safety and activity signals and will continue dose escalation in
these programs as we work toward a recommended Phase 2 dose. We
will also continue to advance our pipeline of bispecific
gamma-delta T cell engagers for patients with cancer.”
“On the corporate front, we strengthened our management team
with the additions of two seasoned executives, Dr. Charles Morris
as chief medical officer and Fred Powell as chief financial
officer. Both executives joined LAVA following several decades of
experience and proven track records of success in their prior
roles. The Company also appointed three highly accomplished
independent members to the Board of Directors, which reflects an
important progression in the Company’s evolution,” continued
Hurly.
Recent Pipeline Highlights
LAVA-051Gammabody designed to target
CD1d-expressing tumors, including multiple myeloma (MM), chronic
lymphocytic leukemia (CLL) and acute myeloid leukemia (AML)
- Initial clinical data for LAVA-051 and presented clinical
pharmacokinetic and pharmacodynamic data from the first five
patient cohorts of the Phase 1 dose-escalation study that suggest a
favorable safety profile, which allowed us to expand the enrollment
of patients into planned additional cohorts.
- Potential signs of clinical activity were observed as well as
linear PK and on-mechanism PD parameters consistent with Vγ9Vδ2-T
cell engagement.
- Clinical trial sites are actively enrolling in North America
and Europe.
LAVA-1207Gammabody designed to target the
prostate-specific membrane antigen (PSMA) to trigger the potent and
preferential killing of PSMA-positive tumor cells in patients with
metastatic castration-resistant prostate cancer (mCRPC)
- Initial clinical data suggests a favorable safety profile, with
no occurrence of high-grade (>2) cytokine release syndrome.
- Initial signs of anti-tumor activity were observed, with
iRECIST stable disease (iSD) in 8 out of 14 evaluable patients at
week 8 and PSA levels stabilizing or decreasing in heavily
pre-treated patients.
- Clinical trial sites are actively enrolling in sites in North
America and Europe.
Corporate Update
- LAVA strengthened its executive management team with the
following appointments:
- Dr. Charles Morris was appointed as chief medical officer. Dr.
Morris is a medical oncologist with over 25 years of oncology drug
development experience and has a proven track record of advancing
novel oncology product candidates from clinical development through
global regulatory approvals.
- Fred Powell was appointed chief financial officer and brings
over 25 years of experience as a global CFO in the
biopharmaceutical industry, having served in this capacity for
several publicly traded biopharmaceutical companies.
- Three new independent directors were appointed to the LAVA
Board of Directors: Peter A. Kiener, DPhil, Mary Wadlinger and
Christy Oliger. Guido Magni, M.D., Ph.D., and Stefan Luzi, Ph.D.,
stepped down from the Board.
- In September 2022, we announced an exclusive global license
agreement with Seagen pursuant to which we granted a worldwide
exclusive license to Seagen to develop, manufacture and
commercialize SGN-EGFRd2 (LAVA-1223), an advanced preclinical asset
that utilizes LAVA’s proprietary Gammabody technology to target
EGFR-expressing solid tumors. Under the terms of the agreement,
LAVA received a $50 million upfront payment and could receive up to
approximately $650 million in potential development, regulatory and
commercial milestones, and royalties ranging from the high single
digits to the mid-teens on future sales.
Fourth Quarter and Year-End 2022 Financial
Results
The financial information provided below reflects changes made
to previously issued consolidated financial statements to revise
immaterial prior period misstatements. Further information
regarding the revision is included in our consolidated financial
statements, "Note 23 — Revision of Immaterial Misstatements,"
included in Item 18 of our annual report on Form 20-F.
- As of December 31,
2022, LAVA had cash, cash equivalents and investments totaling
$132.9 million compared to cash and cash equivalents of $133.2
million as of December 31, 2021. The cash balance is expected to be
sufficient to fund the Company’s activities into 2026.
- Research and
license revenue was $2.6 million and $1.1 million for the quarters
ended December 31, 2022 and 2021, respectively, and $19.4 million
and $5.4 million for the years ended December 31, 2022 and 2021,
respectively. The full-year increase was primarily due to $17.9
million in revenue from the Company’s collaboration with Seagen
Inc.
- Research and
development expenses were $10.5 million and $6.6 million for the
quarters ended December 31, 2022 and 2021, respectively, and $40.1
million and $36.9 million for the years ended December 31, 2022 and
2021, respectively. The higher quarterly and full-year expense was
due to ongoing activities of the clinical trials for LAVA-051 and
LAVA-1207, which were offset by a one-time license fee of $14.4
million triggered in the first quarter of 2021 by the IPO.
- General and
administrative expenses were $3.7 million and $3.8 million for the
quarters ended December 31, 2022 and 2021, respectively, and $14.1
million and $12.0 million for the years ended December 31, 2022 and
2021, respectively. The increase for the full year 2022 was due to
higher personnel-related expenses and the costs of being a public
company for a full year compared to only 9 months in 2021.
- Net losses were
$15.0 million and $8.2 million for the quarters ended December 31,
2022 and 2021, respectively, or $0.57 and $0.32 net loss per share
for the quarters ended December 31, 2022 and 2021, respectively,
and $31.9 million and $42.4 million for the years ended December
31, 2022 and 2021, respectively, or $1.23 and $2.14 net loss per
share for the years ended December 31, 2022 and 2021,
respectively.
|
LAVA Therapeutics N.V.Condensed
Consolidated Statements of Loss (unaudited)(in
thousands, except share and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
Research and license revenue |
$ |
2,640 |
|
|
$ |
1,066 |
|
|
$ |
19,391 |
|
|
$ |
5,350 |
|
Total revenue |
|
2,640 |
|
|
|
1,066 |
|
|
|
19,391 |
|
|
|
5,350 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
(10,486 |
) |
|
|
(6,634 |
) |
|
|
(40,105 |
) |
|
|
(36,945 |
) |
General and administrative |
|
(3,714 |
) |
|
|
(3,768 |
) |
|
|
(14,124 |
) |
|
|
(12,018 |
) |
Total operating
expenses |
|
(14,200 |
) |
|
|
(10,402 |
) |
|
|
(54,229 |
) |
|
|
(48,963 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss |
|
(11,560 |
) |
|
|
(9,336 |
) |
|
|
(34,838 |
) |
|
|
(43,613 |
) |
Non-operating (expenses)
income |
|
(3,369 |
) |
|
|
1,174 |
|
|
|
3,180 |
|
|
|
1,415 |
|
Loss before income
tax |
|
(14,929 |
) |
|
|
(8,162 |
) |
|
|
(31,658 |
) |
|
|
(42,198 |
) |
Income tax expense |
|
(67 |
) |
|
|
(57 |
) |
|
|
(249 |
) |
|
|
(157 |
) |
Net loss |
$ |
(14,996 |
) |
|
$ |
(8,219 |
) |
|
$ |
(31,907 |
) |
|
$ |
(42,355 |
) |
Net loss per
share: |
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic and
diluted |
$ |
(0.57 |
) |
|
$ |
(0.32 |
) |
|
$ |
(1.23 |
) |
|
$ |
(2.14 |
) |
Weighted average common shares
outstanding, basic and diluted |
|
26,289,087 |
|
|
|
25,775,538 |
|
|
|
25,924,005 |
|
|
|
19,758,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LAVA Therapeutics N.V.Condensed Consolidated Statements of
Financial Position (unaudited)(in
thousands) |
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
2022 |
|
2021 |
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
Non-current assets |
$ |
2,892 |
|
|
$ |
2,742 |
|
Other current assets |
|
7,665 |
|
|
|
3,302 |
|
Cash, cash equivalents and
investments |
|
132,868 |
|
|
|
133,203 |
|
Total
assets |
$ |
143,425 |
|
|
$ |
139,247 |
|
|
|
|
|
|
|
|
|
Equity and
Liabilities: |
|
|
|
|
|
|
|
Total
Equity |
$ |
86,040 |
|
|
$ |
118,367 |
|
|
|
|
|
|
|
|
|
Deferred revenue |
|
35,000 |
|
|
|
1,527 |
|
Lease liabilities |
|
810 |
|
|
|
581 |
|
License liabilities |
|
4,732 |
|
|
|
10,056 |
|
Borrowings |
|
4,640 |
|
|
|
4,284 |
|
Trade payables and other |
|
4,010 |
|
|
|
2,553 |
|
Accrued expenses and other
current liabilities |
|
8,193 |
|
|
|
1,879 |
|
Total
liabilities |
|
57,385 |
|
|
|
21,880 |
|
|
|
|
|
|
|
|
|
Total equity and
liabilities |
$ |
143,425 |
|
|
$ |
139,247 |
|
|
|
|
|
|
|
|
|
About LAVA TherapeuticsLAVA Therapeutics N.V.
is a clinical-stage immuno-oncology company utilizing its
proprietary Gammabody™ platform to develop a portfolio of
bispecific gamma delta T cell engagers for the potential treatment
of solid and hematologic malignancies. The Company utilizes
bispecific antibodies engineered to selectively kill cancer cells
by triggering Vγ9Vδ2 (Vgamma9 Vdelta2) T cell antitumor effector
functions upon cross-linking to tumor-associated antigens.
LAVA-051, the Company’s lead candidate for the treatment of
multiple myeloma, chronic lymphocytic leukemia and acute myeloid
leukemia, is enrolling patients in a Phase 1/2a clinical study
(NCT04887259). A Phase 1/2a clinical study to evaluate LAVA-1207 in
patients with metastatic castration-resistant prostate cancer
(mCRPC) is also enrolling (NCT05369000). For more information,
please visit www.lavatherapeutics.com, and follow us
on LinkedIn, Twitter and YouTube.
LAVA’s Cautionary
Note on
Forward-Looking Statements This
press release contains forward-looking statements, including with
respect to the Company’s anticipated growth and clinical
development plans including the timing and results of clinical
trials. Words such as “anticipate,” “believe,” “could,” “will,”
“may,” “expect,” “should,” “plan,” “intend,” “estimate,”
“potential,” “suggests” and similar expressions (as well as other
words or expressions referencing future events, conditions or
circumstances) are intended to identify forward-looking statements.
These forward-looking statements are based on LAVA’s expectations
and assumptions as of the date of this press release and are
subject to various risks and uncertainties that may cause actual
results to differ materially from these forward-looking statements.
Forward-looking statements contained in this press release include
but are not limited to statements about the expected safety profile
of our product candidates, preclinical data, clinical development
and scope of clinical trials, including the availability of data
therefrom, the potential use of our product candidates to treat
various tumor targets, any payments to us under our license
agreement with Seagen and our expected cash runway. Many factors,
risks and uncertainties may cause differences between current
expectations and actual results including, among other things, the
timing and results of our research and development programs and
preclinical and clinical trials, the risk that results obtained in
clinical trials to date may not be indicative of results obtained
in ongoing or future trials, our ability to obtain regulatory
approval for and commercialize our product candidates, our ability
to leverage our initial programs to develop additional product
candidates using our Gammabody™ platform, and the failure of LAVA’s
collaborators to support or advance collaborations or our product
candidates. The COVID-19 pandemic may disrupt our business and that
of the third parties on which we depend, including delaying or
otherwise disrupting our clinical trials and preclinical studies,
manufacturing, and supply chain or impairing employee productivity.
In addition, there may be adverse effects on our business condition
and results from general economic and market conditions and overall
fluctuations in the United States and international equity markets,
including deteriorating market conditions due to investor concerns
regarding inflation and hostilities between Russia and Ukraine, and
recent and potential future disruptions in access to bank deposits
or lending commitments due to bank failures. These and other risks
are described in greater detail under the caption “Risk Factors”
and included in LAVA’s filings with the Securities and Exchange
Commission. LAVA assumes no obligation to update any
forward-looking statements contained herein to reflect any change
in expectations, even as new information becomes available.
CONTACTSInvestor
Relationsir@lavatherapeutics.com
Argot Partners (IR/Media)212-600-1902lava@argotpartners.com
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