Translate Bio Announces Third Quarter 2019 Financial Results and Reviews Recent Highlights
November 06 2019 - 4:11PM
Translate Bio (Nasdaq: TBIO), a clinical-stage messenger RNA (mRNA)
therapeutics company developing a new class of potentially
transformative medicines to treat diseases caused by protein or
gene dysfunction, today announced financial results for the third
quarter ended September 30, 2019 and provided an overview of recent
corporate achievements and updates.
“In 2019, we have continued to make significant progress towards
our goal of developing a new class of medicines utilizing our mRNA
therapeutic platform. Building on the early positive data in our
ongoing Phase 1/2 clinical trial in CF, we expanded our focus in
pulmonary diseases and have also continued to build out critical
operations across the Company including development of our delivery
platform, growth of our manufacturing capabilities and preparations
for future clinical development,” said Ronald Renaud, chief
executive officer of Translate Bio. “In 2020, we look forward to
sharing results from the multiple-ascending dose part of the Phase
1/2 CF clinical trial and continuing to advance our pipeline of
mRNA therapeutics.”
Third Quarter 2019 and Recent Highlights
- Presented early positive clinical data of MRT5005 at
the North American Cystic Fibrosis Conference: Described
interim safety and tolerability results from the SAD portion of an
ongoing, first-in-human Phase 1/2 clinical trial of MRT5005 in
patients with CF. The MAD portion of the trial is ongoing with data
expected in 2020.
- Expanded pulmonary disease focus with program pipeline
update: Announced the prioritization of
the development of pulmonary disease programs including the ongoing
development of MRT5005 for the treatment of CF, as well as the
evaluation of targets in additional pulmonary diseases.
- Entered into a strategic manufacturing agreement with
Albany Molecular Research, Inc. (AMRI): Announced a
multi-year strategic manufacturing agreement with AMRI, a
best-in-class, global clinical development manufacturing
organization, in support of the planned expansion of the Company’s
current Good Manufacturing Practices (cGMP) clinical mRNA
manufacturing capabilities. The agreement provides Translate Bio
with customized and dedicated manufacturing space for cGMP mRNA
production for current and future programs.
- Completed $90M public offering of common
stock: Completed a public offering of 9,000,000 shares of
common stock at a public offering price of $10.00 per share, for
gross proceeds of $90.0 million.
Anticipated Milestones
- MRT5005 (CF): Report results from the additional SAD dose group
and MAD portion of Phase 1/2 clinical trial in 2020.
- Validate targets to support identification of development
candidates for additional pulmonary diseases including primary
ciliary dyskinesia, pulmonary arterial hypertension and idiopathic
pulmonary fibrosis.
Upcoming Events
- The Company will present and host one-on-one meetings at the
following investor conferences:• Stifel 2019 Healthcare
Conference, November 19-20, 2019, New York, NY• Jefferies London
Healthcare Conference, November 20-21, 2019, London,
England• Evercore ISI 2nd Annual HealthCONx Conference,
December 3-5, 2019, Boston, MA
- The Company will give a presentation entitled "Advancing the
development of LNP-encapsulated mRNA therapeutics for pulmonary
diseases" at the 7th International mRNA Health Conference taking
place November 11-12, 2019 in Berlin, Germany.
Third Quarter 2019 Financial Results and Financial
Guidance
Translate Bio ended the third quarter of 2019 with $210.2
million in cash, cash equivalents and short-term investments and
60,020,725 shares of common stock outstanding, which includes gross
proceeds of $90.0 million raised through a public offering of
9,000,000 shares of its common stock in September 2019. The Company
expects that its existing cash, cash equivalents and investments
will enable it to fund its operations into the first half of
2021.
Translate Bio reported a net loss of $21.2 million and $42.6
million for the three months ended September 30, 2019 and 2018,
respectively.
Collaboration revenue was $1.3 million and $0.2 million in the
three months ended September 30, 2019 and 2018, respectively, which
was derived from the collaboration and license agreement that the
Company entered into with Sanofi Pasteur in 2018.
Operating expenses for the three months ended September 30, 2019
were $22.9 million, compared to $45.7 million for the same period
in 2018, and were comprised of the following:
- Research and development expenses of $17.3 million during the
third quarter of 2019, compared to $12.9 million for the same
period in 2018. The increase is primarily due to an increase in
costs associated with the continued advancement of the CF program
and continued development of MRT and vaccine discovery
programs.
- General and administrative expenses of $6.9 million during the
third quarter of 2019, compared to $6.0 million for the same period
in 2018. The increase is primarily due to an increase in
personnel-related costs.
- An impairment charge of $18.6 million representing the
value of the indefinite-lived in-process research and development
related to the ornithine transcarbamylase (OTC) deficiency program,
the development of which the Company discontinued in the third
quarter of 2019.
- Operating income of $19.8 million for changes in the fair value
of contingent consideration related to future potential milestone
and earnout payment obligations. The operating income was
attributed primarily to the decision to discontinue the OTC
deficiency program, which resulted in the removal of $23.2 million
in contingent consideration liability related to the OTC deficiency
program, largely offset by an increase in the fair value of the
contingent consideration liability related to the CF program due to
its continued progress and the time value of money due to passage
of time.
About Translate BioTranslate Bio is a
clinical-stage mRNA therapeutics company developing a new class of
potentially transformative medicines to treat diseases caused by
protein or gene dysfunction. The Company’s MRT platform is designed
to develop product candidates that deliver mRNA carrying
instructions to produce intracellular, transmembrane and secreted
proteins for therapeutic benefit. Translate Bio is
primarily focused on applying its MRT platform to treat pulmonary
diseases caused by insufficient protein production or where
production of proteins can modify disease. The Company also
believes its technology is applicable to a broad range of diseases,
including diseases that affect the liver, eye and central nervous
system. Additionally, the MRT platform may be applied to various
classes of treatments, such as therapeutic antibodies or vaccines
in areas such as infectious disease and oncology. Translate Bio’s
lead program is being developed as a treatment for cystic fibrosis
(CF) and is in an ongoing Phase 1/2 clinical trial. For more
information about the Company, please visit www.translate.bio or on
Twitter at @TranslateBio.
Cautionary Note Regarding Forward-Looking
StatementsThis press release contains forward-looking
statements within the meaning of The Private Securities Litigation
Reform Act of 1995. Such forward-looking statements include, but
are not limited to, those regarding: the potential for MRT5005 to
address the underlying cause of CF and benefit patients; Translate
Bio’s plans to report data from the additional SAD dose group and
MAD part of the Phase 1/2 clinical trial of MRT5005 in 2020;
Translate Bio’s plans to advance its pipeline of mRNA therapeutics
and validate targets for additional pulmonary diseases; the period
in which Translate Bio expects that its existing cash,
cash equivalents and investments will enable it to fund its
operations; Translate Bio’s beliefs regarding the broad
applicability of its MRT platform; and Translate Bio’s plans,
strategies and prospects for its business, including its lead
development programs. The words “anticipate,” “believe,”
“continue,” “could,” “estimate,” “expect,” “forward”, “intend,”
“may,” “plan,” “potential,” “predict,” “project,” “should,”
“target,” “would” and similar expressions are intended to identify
forward-looking statements, although not all forward-looking
statements contain these identifying words. Such statements are
subject to numerous important factors, risks and uncertainties that
may cause actual events or results to differ materially from
current expectations and beliefs, including but not limited to:
Translate Bio’s ability to advance the development of its platform
and programs under the timelines it projects, demonstrate the
requisite safety and efficacy of its product candidates and
replicate in clinical trials any positive findings from preclinical
studies; the content and timing of decisions made by the U.S.
Food and Drug Administration, other regulatory authorities and
investigational review boards at clinical trial sites, including
decisions as it relates to ongoing and planned clinical trials;
Translate Bio’s ability to obtain, maintain and enforce necessary
patent and other intellectual property protection; the availability
of significant cash required to fund operations; competitive
factors; general economic and market conditions and other important
risk factors set forth under the caption “Risk Factors” in
Translate Bio’s Quarterly Report on Form 10-Q for the quarterly
period ended September 30, 2019 filed with the Securities and
Exchange Commission on November 6, 2019 and in any other subsequent
filings made by Translate Bio. Any forward-looking statements
contained in this press release speak only as of the date hereof,
and Translate Bio specifically disclaims any obligation to update
any forward-looking statement, whether as a result of new
information, future events or otherwise.
TRANSLATE
BIO, INC. |
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
(IN
THOUSANDS) |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Collaboration revenue |
|
$ |
1,266 |
|
|
$ |
238 |
|
|
$ |
3,914 |
|
|
$ |
238 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
|
17,295 |
|
|
|
12,933 |
|
|
|
51,343 |
|
|
|
40,854 |
|
General and administrative |
|
|
6,881 |
|
|
|
5,957 |
|
|
|
21,284 |
|
|
|
16,726 |
|
Change in fair value of contingent consideration |
|
|
(19,834 |
) |
|
|
26,829 |
|
|
|
(3,243 |
) |
|
|
39,589 |
|
Impairment of intangible asset |
|
|
18,559 |
|
|
|
— |
|
|
|
18,559 |
|
|
|
— |
|
Total operating expenses |
|
|
22,901 |
|
|
|
45,719 |
|
|
|
87,943 |
|
|
|
97,169 |
|
Loss from
operations |
|
|
(21,635 |
) |
|
|
(45,481 |
) |
|
|
(84,029 |
) |
|
|
(96,931 |
) |
Other income
(expense): |
|
|
|
|
|
|
|
|
Interest income |
|
|
428 |
|
|
|
318 |
|
|
|
1,306 |
|
|
|
499 |
|
Other expense |
|
|
(20 |
) |
|
|
(7 |
) |
|
|
(20 |
) |
|
|
(52 |
) |
Total other income (expense), net |
|
|
408 |
|
|
|
311 |
|
|
|
1,286 |
|
|
|
447 |
|
Loss before
benefit from income taxes |
|
|
(21,227 |
) |
|
|
(45,170 |
) |
|
|
(82,743 |
) |
|
|
(96,484 |
) |
Benefit from
income taxes |
|
|
— |
|
|
|
2,524 |
|
|
|
486 |
|
|
|
5,126 |
|
Net
loss |
|
$ |
(21,227 |
) |
|
$ |
(42,646 |
) |
|
$ |
(82,257 |
) |
|
$ |
(91,358 |
) |
|
|
|
|
|
|
|
|
|
TRANSLATE
BIO, INC. |
CONDENSED
CONSOLIDATED BALANCE SHEETS |
(IN
THOUSANDS) |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30, |
|
December
31, |
|
|
|
|
|
2019 |
|
2018 |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
98,930 |
|
|
$ |
55,199 |
|
|
|
Short-term investments |
|
111,233 |
|
|
|
88,904 |
|
|
|
Prepaid expenses and other current assets |
|
6,648 |
|
|
|
4,474 |
|
|
|
Restricted cash |
|
950 |
|
|
|
1,025 |
|
|
|
|
|
Total current assets |
|
217,761 |
|
|
|
149,602 |
|
Property and equipment, net |
|
10,680 |
|
|
|
10,245 |
|
Right-of-use assets, net |
|
10,527 |
|
|
|
— |
|
Goodwill |
|
21,359 |
|
|
|
21,359 |
|
Intangible assets, net |
|
86,695 |
|
|
|
106,445 |
|
Other long-term assets |
|
2,492 |
|
|
|
— |
|
|
|
|
|
Total
assets |
$ |
349,514 |
|
|
$ |
287,651 |
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
3,407 |
|
|
$ |
5,168 |
|
|
|
Accrued expenses |
|
8,767 |
|
|
|
6,547 |
|
|
|
Current portion of deferred revenue |
|
12,603 |
|
|
|
2,572 |
|
|
|
Current portion of operating lease liability |
|
489 |
|
|
|
— |
|
|
|
|
|
Total
current liabilities |
|
25,266 |
|
|
|
14,287 |
|
Long-term portion of contingent consideration |
|
100,399 |
|
|
|
103,642 |
|
Deferred revenue, net of current portion |
|
30,046 |
|
|
|
41,841 |
|
Deferred tax liabilities |
|
— |
|
|
|
481 |
|
Deferred rent |
|
— |
|
|
|
2,105 |
|
Operating lease liability, net of current portion |
|
12,230 |
|
|
|
— |
|
|
|
|
|
Total
liabilities |
|
167,941 |
|
|
|
162,356 |
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
Common stock |
|
60 |
|
|
|
45 |
|
|
|
Additional paid-in capital |
|
509,294 |
|
|
|
371,257 |
|
|
|
Accumulated deficit |
|
(328,460 |
) |
|
|
(246,203 |
) |
|
|
Accumulated other comprehensive income |
|
679 |
|
|
|
196 |
|
|
|
|
|
Total
stockholders' equity |
|
181,573 |
|
|
|
125,295 |
|
|
|
|
|
Total
liabilities and stockholders' equity |
$ |
349,514 |
|
|
$ |
287,651 |
|
|
|
|
|
|
|
|
|
Contacts for Translate Bio
Investors
MediaTeri
Dahlman
Maura
Gavaghantdahlman@translate.bio
mgavaghan@translate.bio857-242-7792
857-242-7789
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