Surface Oncology Reports Financial Results and Corporate Highlights for First Quarter 2019
May 09 2019 - 7:00AM
Surface Oncology (NASDAQ:SURF), a clinical-stage immuno-oncology
company developing next-generation immunotherapies that target the
tumor microenvironment, today reported financial results and
corporate highlights for the first quarter of 2019.
“2019 is an important execution year for Surface
and we are off to a fantastic start. During the first quarter, we
continued to make strong progress on a number of fronts, including
the expansion of both our executive team and scientific advisory
board, as well as the advancement of our next wave of product
programs, SRF617 and SRF388, towards initial clinical trials,” said
Jeff Goater, chief executive officer.
Recent Corporate
Highlights:
- Addition of F. Steven Hodi, M.D., Dana Farber Cancer Institute,
to our Scientific Advisory Board. Dr. Hodi is a clinical pioneer in
the field of cancer immunotherapy and his groundbreaking work in
melanoma with checkpoint inhibitors led to the first wave of cancer
immunotherapy drug approvals.
- Appointment of Wendy Dwyer as chief business officer. Ms. Dwyer
brings over 20 years of transactional experience, including prior
business development leadership roles at AstraZeneca, Ipsen
Biosciences and Endo Pharmaceuticals.
- The Novartis-sponsored phase 1 trial of NZV930 (CD73) continues
to progress, now enrolling patients in seven countries.
- IND filings for both SRF617 (CD39) and SRF388 (IL-27) remain on
track for Q4 of 2019.
- Surface Oncology scientists co-authored the paper, "IL-27 and
TCR Stimulation Promote T Cell Expression of Multiple Inhibitory
Receptors," which was published in ImmunoHorizons.
Financial Results:
As of March 31, 2019, cash, cash equivalents and
marketable securities were $140.2 million, compared to $158.8
million on December 31, 2018.
Research and development (R&D) expenses were
$14.3 million for the first quarter ended March 31, 2019, compared
to $11.1 million for the same period in 2018. The increase was
primarily driven by expenditures associated with Surface’s
advancing product pipeline, including increased R&D personnel
costs associated with the growth of the Company. R&D expenses
included $0.6 million in stock-based compensation expense for the
first quarter of 2019.
General and administrative (G&A) expenses
were $5.1 million for the first quarter ended March 31, 2019,
compared to $3.4 million for the same period in 2018. The increase
in G&A expenses is primarily due to increased personnel costs
and professional fees associated with the growth of the company and
operating as a public company. G&A expenses included $0.8
million in stock-based compensation expense for the first quarter
of 2019.
For the first quarter ended March 31, 2019, net
loss was $4.2 million, or basic and diluted net loss per share
attributable to common stockholders of $0.15. Net income was $31.2
million for the same period in 2018 or diluted net income per share
attributable to common stockholders of $1.05. Income from the first
quarter of 2018 was driven by milestones from our partnership with
Novartis.
Financial Outlook:
Based upon its current operating plan, Surface
continues to have a projected cash runway through 2021.
About Surface Oncology:
Surface Oncology is an immuno-oncology company
developing next-generation antibody therapies focused on the tumor
microenvironment with lead programs targeting CD73, CD39, IL-27 and
CD47. Surface’s novel cancer immunotherapies are designed to
achieve a clinically meaningful and sustained anti-tumor response
and may be used alone or in combination with other therapies. The
company has a pipeline of seven novel immunotherapies and a
strategic collaboration with Novartis focused on NZV930 (CD73) and
potentially one additional undisclosed program. For more
information, please visit www.surfaceoncology.com
Cautionary Note Regarding Forward-Looking
Statements:
Certain statements set forth in this press
release constitute “forward-looking” statements within the meaning
of the Private Securities Litigation Reform Act of 1995, as
amended. Forward-looking statements can be identified by terms such
as “believes,” “expects,” “plans,” “potential,” “would” or similar
expressions and the negative of those terms. These forward-looking
statements are based on Surface Oncology’s management’s current
beliefs and assumptions about future events and on information
currently available to management.
Forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause
Surface Oncology’s actual results, performance or achievements to
be materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. These risks include, but are not limited to, risks and
uncertainties related to Surface Oncology’s ability to successfully
develop SRF388, SRF617 and its other product candidates through
current and future milestones or regulatory filings on the
anticipated timeline, if at all, the therapeutic potential of
Surface Oncology’s product candidates, the risk that results from
preclinical studies or early clinical trials may not be
representative of larger clinical trials, the risk that Surface
Oncology’s product candidates, including SRF388 and SRF617, will
not be successfully developed or commercialized and the risks
related to Surface Oncology’s dependence on third parties in
connection with its manufacturing, clinical trials and preclinical
studies. Additional risks and uncertainties that could affect
Surface Oncology’s future results are included in the section
titled “Risk Factors” in our Annual Report on Form 10-K for the
year ending December 31, 2018, which is available on the Security
and Exchange Commission’s website at www.sec.gov and Surface
Oncology’s website at www.surfaceoncology.com.
Additional information on potential risks will
be made available in other filings that Surface Oncology makes from
time to time with the Securities and Exchange Commission. In
addition, any forward-looking statements contained in this press
release are based on assumptions that Surface Oncology believes to
be reasonable as of this date. Except as required by law, Surface
Oncology assumes no obligation to update these forward-looking
statements, or to update the reasons if actual results differ
materially from those anticipated in the forward-looking
statements.
Contacts:
Seth Lewisslewis@surfaceoncology.com 617-665-5031
Ten Bridge CommunicationsKrystle
Gibbskrystle@tenbridgecommunications.com508-479-6358
Selected Financial
Information:
(In thousands, except per share
amounts)(Unaudited)
|
|
Three months ended March 31, |
|
Statement of Operations
Items |
|
2019 |
|
|
2018 |
|
Collaboration revenue – related
party |
|
$ |
14,434 |
|
|
$ |
45,495 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
|
14,309 |
|
|
|
11,090 |
|
General and administrative |
|
|
5,093 |
|
|
|
3,362 |
|
Total operating expenses |
|
|
19,402 |
|
|
|
14,452 |
|
Income (loss) from operations |
|
|
(4,968 |
) |
|
|
31,043 |
|
Total other income |
|
|
769 |
|
|
|
169 |
|
Net income (loss) |
|
|
(4,199 |
) |
|
|
31,212 |
|
Accretion of redeemable convertible
preferred stock to redemption value |
|
|
- |
|
|
|
(11 |
) |
Net income attributable to redeemable
convertible preferred stockholders |
|
|
- |
|
|
|
(26,866 |
) |
Net income (loss) attributable to common
stockholders |
|
$ |
(4,199 |
) |
|
$ |
4,335 |
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share attributable
to common stockholders— basic |
|
$ |
(0.15 |
) |
|
$ |
1.59 |
|
Weighted average common shares
outstanding— basic |
|
|
27,825,698 |
|
|
|
2,727,606 |
|
Net income (loss) per share attributable
to common stockholders— diluted |
|
$ |
(0.15 |
) |
|
$ |
1.05 |
|
Weighted average common shares
outstanding— diluted |
|
|
27,825,698 |
|
|
|
4,134,644 |
|
|
|
March 31, |
|
|
December 31, |
|
Selected Balance Sheet
Items: |
|
2019 |
|
|
2018 |
|
Cash, cash equivalents and marketable
securities |
|
$ |
140,174 |
|
|
$ |
158,835 |
|
Total assets |
|
|
170,608 |
|
|
|
174,065 |
|
Accounts payable and accrued
expenses |
|
|
9,263 |
|
|
|
12,215 |
|
Deferred revenue – related party |
|
|
39,518 |
|
|
|
53,952 |
|
Total stockholders’ equity |
|
|
100,393 |
|
|
|
102,862 |
|
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