TORONTO and HOUSTON, Nov. 13,
2018 /CNW/ - Medicenna Therapeutics Corp. ("Medicenna" or
the "Company") (TSX: MDNA; OTCQB: MDNAF), a clinical stage
immuno-oncology company, today reported financial results for the
three and six months ended September 30,
2018.
The following are the achievements and highlights for the
quarter ending September 30, 2018
through to the date hereof:
- On July 25, 2018, Medicenna
announced the allowance of a patent ("Interleukin-4
receptor-binding fusion proteins and uses thereof") issued to
Medicenna that covers the composition of engineered IL-4 Superkines
coupled to potent fully human cytotoxic payloads.
- On August 2, 2018, Medicenna
announced preliminary pre-clinical data on MDNA109, the only IL-2
in development with high affinity to CD122 to boost cancer fighting
T cells, showing that fusions of MDNA109 with inactive protein
scaffolds are long-acting and provide the convenience of easier
dosing without sacrificing its safety and efficacy.
- On August 10, 2018 Medicenna
received US$1,219,871 from the Cancer
Prevention and Research Institute of Texas ("CPRIT") for the reimbursement of
previously incurred expenses.
- On August 28, 2018, Medicenna
presented preliminary pre-clinical results on MDNA109 at the Sixth
Annual Immuno-Oncology Summit held in Boston, MA. The poster presentation
highlighted data comparing efficacy and pharmacokinetics of MDNA109
and long-acting variants of MDNA109 in mouse models. Preliminary
data indicated that a biweekly schedule of subcutaneous
administration of MDNA109-Fc retained similar potency to daily
administration of MDNA109 in aggressive murine models of metastatic
melanoma, suggesting a weekly or every two-week dosing in
patients.
- On September 27, 2018, Medicenna
announced the allowance of a patent ("Superagonists and Antagonists
of Interleukin-2") issued to the Board of Trustees of the Leland
Stanford Junior University and licensed exclusively to Medicenna.
The allowed patent covers the composition MDNA109 with extended
half-life characteristics as well as MDNA109 fused to therapeutic
proteins such as antibodies, a new class of molecules referred to
as immunocytokines.
- On October 22, 2018, subsequent
to the quarter end, the Company presented results and participated
in a poster discussion session at the European Society for Medical
Oncology Congress held in Munich
on October 20, 2018. Based on interim
data from patients treated at low doses implemented during the
first half of the Phase 2b study of
MDNA55, the presentation highlighted the benefits of using of
advanced imaging modalities in order to help tumor response
evaluation and identify pseudo-progression in some patients which
ultimately translates into tumor shrinkage, and potential treatment
benefit.
- On October 31, 2018, the Company
provided an interim update from the ongoing Phase 2b clinical trial of MDNA55 for the treatment of
rGBM. Results from the low dose cohorts showed promising median
overall survival of 9.8 months following a single treatment with an
overall survival rate of 89% at 6 months, 58% at 9 months and 47%
at 12 months. This materially exceeds survival rates reported for
approved drugs for rGBM; survival rates for MDNA55 at 6, 9 or 12
months are 44% to 81% better than that of Avastin and 35% to 57%
better than Lomustine. Furthermore, a preliminary review of
post-treatment MRIs conducted at each of the individual sites
showed tumor shrinkage or stabilization for at least 8 weeks
without clinical decline in 11 of 26 evaluable subjects treated at
the low doses corresponding to a disease control rate of 42%.
- On November 8, 2018, the Company
announced that it had filed and been receipted for a preliminary
short form prospectus with securities regulatory authorities in the
provinces of Ontario, British Columbia and Alberta in connection with a proposed marketed
offering of units (the "Units") of the Company (the "Offering").
The Offering is being led by Bloom Burton Securities Inc. (the
"Lead Agent") on behalf of a syndicate comprised of Mackie Research
Capital Corporation and Richardson GMP Limited. Each Unit will be
comprised of one common share of the Company and one-half of one
common share purchase warrant of the Company (a "Warrant"). The
number of Units to be distributed, the price of each Unit, the
minimum and maximum size of the Offering, and the exercise price
and term of each Warrant will be determined by negotiation between
the Company and the Lead Agent in the context of the market with
final terms to be determined at the time of pricing. The
Preliminary Prospectus is subject to completion and amendment.
- On November 9, 2018, Medicenna
presented an update to preliminary pre-clinical results on MDNA109
at the 33rd Annual Meeting of the Society for
Immunotherapy of Cancer held in Washington, DC.
Financial Results
For the three months ended September 30,
2018, Medicenna reported a net loss of $897,659 or $0.04
per share compared to a loss of $1,718,252 or $0.07
per share for the three months ended September 30, 2017. For the six months ended
September 30, 2018, Medicenna
reported a net loss of $1,935,876 or
$0.08 per share compared to a loss of
$3,973,924 or $0.16 per share for the six months ended
September 30, 2017.
The decrease in net loss for the three and six months ended
September 30, 2018 compared with the
three and six months ended September 30,
2017 was primarily a result of: decreased regulatory, travel
and salary costs as we reduce overall spending and decreased
discovery and pre-clinical expenses due to work completed on the
MDNA57 collaboration in the prior year, as well as a higher level
of expenses offset by CPRIT eligible expenses related to MDNA55.
These reductions were offset by additional spending on licensing
fees, patent costs, royalties and consulting expenses associated
with pipeline review and program prioritization.
Research and Development Expenses
Research and
development ("R&D") expenses of $445,814 were incurred in the three months ended
September 30, 2018, compared with
$1,069,648 in the three months ended
September 30, 2017 and $1,080,787 in R&D expenses were incurred
during the six months ended September 30,
2018, compared with $2,874,438
in the six months ended September 30,
2017.
The decrease in R&D expenses in the current year periods can
be primarily attributed to decreased regulatory costs due to the
timing of expenditures, reduced discovery and pre-clinical expenses
due to work ongoing and completed in the prior year related to the
development of MDNA57, reduced salaries and benefits due to overall
cost containment measures as well as a reduction in travel
expenses. A higher reimbursement of expenses with respect to
the CPRIT grant of $1,509,772 in the
three months ended September 30, 2018
compared with $1,090,102 in the same
period in the prior year, and $2,918,708 in the six months ended September 30, 2018 compared with $1,449,604 in the six months ended September 30, 2017, further reduced the R&D
expenses incurred.
The above expenditure reductions were offset by the higher
manufacturing costs related to MDNA109 program development and
higher consulting expenses associated with a pipeline review and
program prioritization.
General and Administrative Expenses
General and
administrative ("G&A") expenses of $443,363 were incurred in the three months ended
September 30, 2018 compared with
$632,132 in the three months ended
September 30, 2017. G&A expenses
of $857,914 were incurred during the
six months ended September 30, 2018,
compared with $1,070,223 in the same
period in the prior year. The decrease in G&A expenses in the
current year periods is attributed to lower salary and benefit
costs due to headcount reductions and a bonus accrual in the prior
year and no comparable accrual in the current year periods, reduced
legal expenses in the current year periods due to expenses related
to the graduation from the TSX Venture Exchange to the Toronto
Stock Exchange incurred in the prior year periods, a reduction in
facility expenses with a lower cost alternative for office space
and reduced travel costs. These cost reductions were offset by
lower CPRIT eligible expenditures claimed in the current year
periods, as well as higher stock based compensation in the current
year periods due to the timing of stock option grant
amortization
Selected Consolidated Financial Information
Medicenna
Therapeutics Corp.
|
Condensed
Consolidated Interim Statements of Operations
|
(Expressed in
Canadian Dollars)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
3 months ended
September 30,
2018
|
3 months ended
September 30,
2017
|
6 months ended
September 30,
2018
|
6 months ended
September 30,
2017
|
|
|
$
|
$
|
$
|
$
|
Operating
expenses
|
|
|
|
|
|
General and
administration
|
443,363
|
632,132
|
857,914
|
1,070,223
|
|
Research and
development
|
445,814
|
1,069,648
|
1,080,787
|
2,874,438
|
|
|
|
|
|
|
Total operating
expenses
|
889,177
|
1,701,780
|
1,938,701
|
3,944,661
|
|
|
|
|
|
|
|
Interest (income)
expense
|
(9)
|
(443)
|
(101)
|
(2,743)
|
|
Foreign exchange loss
(gain)
|
8,491
|
16,915
|
(2,724)
|
32,006
|
|
|
8,482
|
16,472
|
(2,825)
|
29,263
|
|
|
|
|
|
|
Net loss for the
period
|
(897,659)
|
(1,718,252)
|
(1,935,876)
|
(3,973,924)
|
Cumulative
translation adjustment
|
(16,452)
|
(79,648)
|
10,744
|
(124,579)
|
Net loss and
comprehensive loss for
the period
|
(914,111)
|
(1,797,900)
|
(1,925,132)
|
(4,098,503)
|
|
|
|
|
|
|
Basic and diluted
loss per share
|
(0.04)
|
(0.07)
|
(0.08)
|
(0.16)
|
|
|
|
|
|
|
Weighted average
number of
common shares outstanding
|
24,578,137
|
24,344,048
|
24,578,137
|
24,329,111
|
The press release, the financial statements and the management's
discussion and analysis for the quarter ended September 30,
2018 will be available on SEDAR at www.sedar.com
About Medicenna
Medicenna is a clinical stage immunotherapy company focused on
oncology and the development and commercialization of novel, highly
selective versions of IL-2, IL-4 and IL-13 Superkines and first in
class Empowered Cytokines™ (ECs) for the treatment of a broad range
of cancers. Medicenna's wholly owned subsidiary, Houston-based
Medicenna BioPharma, is specifically targeting the Interleukin-4
Receptor (IL4R), which is over-expressed by at least 20 different
types of cancer affecting more than one million new cancer patients
every year. Supported by a significant non-dilutive grant from
CPRIT, Medicenna's lead IL4-EC, MDNA55 is enrolling patients in a
Phase 2b clinical trial for rGBM, the
most common and uniformly fatal form of brain cancer, at top-ranked
brain cancer centres in the US. MDNA55 has completed three clinical
trials in 72 patients, including 66 adults with rGBM, demonstrated
compelling efficacy and obtained Fast-Track and Orphan Drug status
from the FDA and FDA/EMA respectively. For more information, please
visit www.medicenna.com.
This news release contains forward-looking statements
relating to the future operations of the Company and other
statements that are not historical facts. Forward-looking
statements are often identified by terms such as "will", "may",
"should", "anticipate", "expects" and similar expressions. All
statements other than statements of historical fact, included in
this release, including, without limitation, statements with
respect to the ongoing development of MDNA55 and MDNA109 and
objectives of the Company, are forward-looking statements that
involve risks and uncertainties. There can be no assurance that
such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results
to differ materially from the Company's expectations include the
risks detailed in the annual information form of the Company dated
June 26, 2018 and in other filings
made by the Company with the applicable securities regulators from
time to time.
The reader is cautioned that assumptions used in the
preparation of any forward-looking information may prove to be
incorrect. Events or circumstances may cause actual results to
differ materially from those predicted, as a result of numerous
known and unknown risks, uncertainties, and other factors, many of
which are beyond the control of the Company. The reader is
cautioned not to place undue reliance on any forward-looking
information. Such information, although considered reasonable by
management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement. The
forward-looking statements contained in this news release are made
as of the date of this news release and the Company will update or
revise publicly any of the included forward-looking statements only
as expressly required by Canadian securities law.
SOURCE Medicenna Therapeutics Corp.