HOUSTON, March 19, 2020 /PRNewswire/ -- Moleculin
Biotech, Inc., (Nasdaq: MBRX) (Moleculin or the Company), a
clinical stage pharmaceutical company with a broad portfolio of
drug candidates targeting highly resistant tumors, announced its
financial results for the year ended December 31, 2019 and provided a business
update.
Management Discussion
Walter Klemp, Chairman and CEO of
Moleculin, stated, "2019 marked a pivotal year for Moleculin, as we
achieved several key milestones in our three core technologies and
six oncology drug candidates, strengthened our financial position,
and bolstered our leadership team. Notably, we are extremely
excited by the progress we made advancing our lead candidate,
Annamycin, a 'next generation anthracycline' demonstrating little
to no cardiotoxicity. In the recently completed Phase 1 portion of
our US Phase 1/2 clinical trial in AML, Annamycin met its primary
endpoint and demonstrated a clean safety profile with no evidence
of cardio-toxicity when delivered to patients at or below the
lifetime maximum anthracycline dose established by the FDA. These
findings were consistent with an independent review of Annaymcin,
in which the independent expert concluded that he 'does not see
evidence of cardio-toxicity.' We are looking forward to further
advancing this trial in 2020, as the FDA has already granted
Annamycin Fast Track status and Orphan Drug Designation for AML. We
plan to discuss with the FDA a plan to accelerate our approval
pathway for a pivotal Phase 2 trial by relying on our European
trial to establish a recommended Phase 2 dose, which we believe
will be the fastest and most efficient way for us to enter Phase 2.
We also look forward to filing an Investigational New Drug (IND)
application for the treatment of tumor metastases to the lung in
2020."
Mr. Klemp continued, "We are also pleased by the progress made
in both our WP1066 and WP1122 programs. In our WP1066 portfolio,
Emory University received FDA approval
for their IND status request for our STAT3 Inhibitor in a pediatric
brain tumor clinical trial. This approval enables us to explore a
new approach for treating pediatric brain cancer. Pre-clinical
research at Emory demonstrated WP1066's significant anti-tumor
effect on medulloblastoma cell lines, and we are very encouraged to
continue to explore this potential solution for treating this rare
condition. Additionally, we reported positive data from the Phase 1
'proof-of-concept' clinical trial with WP1220 for the treatment of
cutaneous T-cell lymphoma (CTCL), which demonstrated a median
reduction of 56% in skin cancer lesions. We also made great strides
within our WP1122 portfolio where we began preclinical testing of a
new approach to Pancreatic cancer, by attacking cancer through
inhibiting tumor metabolism. "
Mr. Klemp concluded, "We are excited to build off the tremendous
progress made in 2019 across our entire drug portfolio. We believe
we are well positioned to continue the momentum in 2020 and look
forward to the upcoming WP1066 trial at Emory
University, advancing WP1220 into a Phase 2 clinical trial,
and the potential accelerated FDA approval pathway and Phase 2
trial of Annamycin. And, this momentum has taken on a new dimension
with our recent announcement of our agreement with UTMB to test
WP1122 for antiviral properties on many viruses, including
Coronavirus. We continue to work diligently towards our near-term
goals of delivering on Phase 2 clinicals trial for WP1220 and our
'next generation anthracycline,' Annamycin. We look forward
to sharing our progress throughout the year."
Recent Milestones and Accomplishments:
Next Generation Anthracycline - Annamycin
- Received positive independent report confirming absence of
cardiotoxicity (unlike currently approved anthracyclines)
- Announced positive results and successful completion of the
Phase 1 portion of the AML Phase 1/2 trial in the US and plans to
seek accelerated FDA approval for pivotal Phase 2 trial in AML
- Found to be active against tumor metastases to the lung in
pre-clinical testing
- Confirmed anti-tumor efficacy of Annamycin in AML through new
animal data
- Expanded production to support positive clinical activity
- Received FDA Fast Track designation and filed for new patents
covering the production and reconstitution of Annamycin
Immune/Transcription Modulators - WP1066 Portfolio
- Emory University received FDA
Approval of IND for STAT3 inhibitor in Investigator Initiated
Clinical Trial
- Filed for patent protection on behalf of MD Anderson covering
combination of immune-stimulating/transcriptional modulator,
including combination with radiation therapy
- Received Emory University Clinical
Trial Review Committee approval in pediatric brain tumor trial
- Presented preclinical pancreatic cancer data at American
Association for Cancer Research Annual Meeting
- Received Orphan Drug Designation from FDA
Metabolism/Glycosylation Inhibitors - WP1122
Portfolio
- Final data from Phase 1 proof-of-concept clinical trial for the
treatment of cutaneous T-cell lymphoma
- Began preclinical testing of new approach to Pancreatic cancer,
opportunity to attack cancer by inhibiting tumor metabolism
- Entered into an agreement with University
of Texas Medical Branch at Galveston (UTMB) to conduct research on
WP1122, and other molecules of the Company, for antiviral
properties against a range of viruses, including Coronavirus
Corporate Strategy
- Entered into sublicense agreement with WPD Pharmaceuticals
requiring WPD to provide a minimum of $4
million in development expenditures over a four-year
period
- Appointed Dr. Martin Tallman,
Chief of Leukemia of Memorial Sloan Kettering Cancer Center, and
Dr. James L. Abbruzzese, Chief of
Medical Oncology Division at Duke
University, to Science Advisory Board
- Appointed Dr. Hongbo Zhai,
former Senior Faculty and Supervisor of Postdoctoral Fellow at
University of California San Francisco,
to Science Advisory Board
Anticipated 2020 Milestones
- First patient treated in the Phase 1 clinical trial with WP1066
for the treatment of pediatric brain tumors at Emory University
- IND submission for Annamycin for the treatment of tumor
metastases to the lung
- Pre-IND Meeting with FDA/EMA concerning a Phase 2 clinical
trial with WP1220 for the treatment of CTCL
- File IND/CTA for a Phase 2 clinical trial with WP1220 for the
treatment of CTCL
- FDA End of Phase 1 meeting for Annamycin in AML
- Achieving an MTD or a dose level at or above 300
mg/m2 in EU AML Phase 1/2 trial for Annamycin
- Benefit from non-dilutive financial funding for additional
clinical trials
Financial Results for the Year Ended December 31, 2019
Research and development ("R&D") expense was $11.0 million and $9.7
million for the years ended December
31, 2019 and 2018, respectively. The increase in R&D of
approximately $1.3 million mainly
relates to: increased clinical trial activity (2 drugs in 3
clinical trials in 2018, versus 3 drugs in 4 clinical trials in
2019) including the manufacturing of additional drug product and
the issuance of common stock for $0.5
million, related to the exercise of the option to reacquire
certain license rights in Germany
under the Dermin License Agreements. These increases were offset by
a reduction of $0.7 million in
various other R&D expenses.
General and administrative ("G&A") expense was $6.3 million and $5.2
million for the years ended December
31, 2019 and 2018, respectively. The increase in G&A of
approximately $1.1 million was mainly
attributable to an increase in payroll costs for additional finance
and office staff, stock-based compensation expense for vested
warrants issued to a consultant, and annual employee stock
options.
The net loss for the year ended December
31, 2019 was $13.2 million,
which included non-cash expenses of approximately $1.5 million of stock-based compensation in 2019
as compared to $1.1 million in
2018.
Liquidity and Capital Resources
As of December 31, 2019, we had
cash and cash equivalents of $10.7
million and prepaid expenses and other of $2.7 million. We also had $2.2 million of accounts payable and $1.4 million of accrued expenses. A significant
portion of the accounts payable and accrued expenses are due to
work performed in relation to our clinical trials. For the years
ended December 31, 2019 and 2018, we
used approximately $17.2 million and
$12.2 million of cash in operating
activities, respectively, which represents cash outlays for
research and development and general and administrative expenses in
such periods. The increase in 2019 reflects the increase in
clinical and preclinical activity over 2018. For the year ended
December 31, 2019, net proceeds from
financing activities were $20.9
million, predominately from the sale of our common stock and
warrants. In 2018, approximately $12.0
million was raised predominately through the sale of shares
of common stock and the exercise of warrants. Cash used in
investing activities for the year ended December 31, 2019 was approximately $0.05 million primarily for the purchases of
employee computer equipment and office furniture.
We believe that our cash resources as of December 31, 2019, along with the additional
funding received subsequent to year-end, will be sufficient to meet
our projected operating requirements towards the end of the third
quarter of 2020. This expectation does not consider unplanned
preclinical and clinical activity, additional funding, including
but not limited to, equity issuances including the use of the
Lincoln Park or ATM facilities.
About Moleculin Biotech, Inc.
Moleculin Biotech, Inc. is a clinical stage pharmaceutical
company focused on the development of a broad portfolio of oncology
drug candidates for the treatment of highly resistant tumors. The
Company's clinical stage drugs are: Annamycin, a Next Generation
Anthracycline, designed to avoid multidrug resistance mechanisms
with little to no cardiotoxicity being studied for the treatment of
relapsed or refractory acute myeloid leukemia, more commonly
referred to as AML, WP1066, an Immune/Transcription Modulator
capable of inhibiting p-STAT3 and other oncogenic transcription
factors while also stimulating a natural immune response, targeting
brain tumors, pancreatic cancer and hematologic malignancies, and
WP1220, an analog to WP1066, for the topical treatment of cutaneous
T-cell lymphoma. Moleculin is also engaged in preclinical
development of additional drug candidates, including other
Immune/Transcription Modulators, as well as WP1122 and related
compounds capable of Metabolism/Glycosylation Inhibition.
For more information about the Company, please visit
http://www.moleculin.com.
Forward-Looking Statements
Some of the statements in this release are forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933, Section 21E of the Securities Exchange Act of 1934 and the
Private Securities Litigation Reform Act of 1995, which involve
risks and uncertainties. Forward-looking statements in this press
release include, without limitation, the ability of Moleculin
to successfully recruit sufficient patients to complete its current
clinical trials; the ability of Moleculin to be permitted by the
FDA to accelerate its approval pathway for a pivotal Phase 2 trial
by relying on its European trial to establish a recommended Phase 2
dose; and the ability of Moleculin to file an IND for the treatment
of cancer metastases to the lung in 2020. Although Moleculin
believes that the expectations reflected in such forward-looking
statements are reasonable as of the date made, expectations may
prove to have been materially different from the results expressed
or implied by such forward-looking statements. Moleculin Biotech
has attempted to identify forward-looking statements by terminology
including ''believes,'' ''estimates,'' ''anticipates,''
''expects,'' ''plans,'' ''projects,'' ''intends,'' ''potential,''
''may,'' ''could,'' ''might,'' ''will,'' ''should,''
''approximately'' or other words that convey uncertainty of future
events or outcomes to identify these forward-looking statements.
These statements are only predictions and involve known and unknown
risks, uncertainties, and other factors, including those discussed
under Item 1A. "Risk Factors" in our most recently filed Form 10-K
filed with the Securities and Exchange Commission (SEC) and updated
from time to time in our Form 10-Q filings and in our other public
filings with the SEC. Any forward-looking statements contained in
this release speak only as of its date. We undertake no obligation
to update any forward-looking statements contained in this release
to reflect events or circumstances occurring after its date or to
reflect the occurrence of unanticipated events.
Contacts
James Salierno
/ Carol Ruth
The Ruth Group
646-536-7028 / 7000
jsalierno@theruthgroup.com
cruth@theruthgroup.com
-- Financial tables follow --
|
|
|
|
|
Moleculin Biotech,
Inc.
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
December
31
|
(in
thousands)
|
|
2019
|
|
2018
|
Current
Assets:
|
|
|
Cash and cash
equivalents
|
|
$
|
10,735
|
|
|
$
|
7,134
|
|
Prepaid expenses and
other current assets
|
|
2,749
|
|
|
840
|
|
Total current
assets
|
|
13,484
|
|
|
7,974
|
|
Furniture and
equipment, net
|
|
316
|
|
|
463
|
|
Intangible
assets
|
|
11,148
|
|
|
11,148
|
|
Operating lease
right-of-use asset
|
|
287
|
|
|
—
|
|
Total Assets
|
|
$
|
25,235
|
|
|
$
|
19,585
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
Accounts payable and
accrued expenses and other current liabilities
|
|
$
|
3,570
|
|
|
$
|
3,698
|
|
Warrant liability -
current
|
|
—
|
|
|
180
|
|
Total current liabilities
|
|
3,570
|
|
|
3,878
|
|
Operating lease
liability - long-term, net of current portion
|
|
276
|
|
|
—
|
|
Deferred rent -
long-term
|
|
—
|
|
|
107
|
|
Warrant liability -
long term
|
|
5,818
|
|
|
1,328
|
|
Total Liabilities
|
|
9,664
|
|
|
5,313
|
|
Total Stockholders'
Equity
|
|
15,571
|
|
|
14,272
|
|
Total Liabilities and
Stockholders' Equity
|
|
$
|
25,235
|
|
|
$
|
19,585
|
|
|
|
|
|
|
Unaudited
Condensed Consolidated Statements of Operations
|
|
|
|
|
|
|
Year Ended
December 31,
|
(in thousands,
except share and per share amounts)
|
|
2019
|
|
2018
|
Revenues
|
|
$
|
—
|
|
|
$
|
—
|
|
Operating
Expenses:
|
|
|
|
|
Research and
development
|
|
11,013
|
|
|
9,728
|
|
General and
Administrative and depreciation
|
|
6,511
|
|
|
5,297
|
|
Total operating
expenses
|
|
17,524
|
|
|
15,025
|
|
Loss from
operations
|
|
(17,524)
|
|
|
(15,025)
|
|
Other income
(expense):
|
|
|
|
|
Gain from change in
fair value of warrant liability
|
|
4,062
|
|
|
3,185
|
|
Other income
(expense)
|
|
15
|
|
|
(40)
|
|
Interest income,
net
|
|
13
|
|
|
4
|
|
Net Loss before
taxes
|
|
$
|
(13,434)
|
|
|
$
|
(11,876)
|
|
Income tax
benefit
|
|
$
|
229
|
|
|
$
|
—
|
|
Net loss
|
|
$
|
(13,205)
|
|
|
$
|
(11,876)
|
|
Net loss per common
share - basic and diluted
|
|
$
|
(0.32)
|
|
|
$
|
(0.46)
|
|
Weighted average
common shares outstanding - basic and diluted
|
|
40,721,406
|
|
|
25,904,170
|
|
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SOURCE Moleculin Biotech, Inc.