Gritstone Oncology Reports First Quarter 2019 Financial Results and Recent Highlights
May 13 2019 - 9:01AM
Gritstone Oncology, Inc. (Nasdaq: GRTS), a clinical-stage
biotechnology company developing the next generation of cancer
immunotherapies to fight multiple cancer types, today reported
recent business highlights and financial results for the first
quarter ended March 31, 2019.
“In a short period, we have made remarkable progress advancing
our development programs, as well as expanding and enhancing our
best-in-class artificial intelligence platform, Gritstone EDGETM,”
said Andrew Allen, M.D., Ph.D., co-founder, president and chief
executive officer of Gritstone Oncology. “Our two pioneering
neoantigen-based programs have entered (GRANITE), or are about to
enter (SLATE), clinical studies. The GRANITE program should deliver
an intense and focused immune attack upon tumors through the
production of a unique therapy for each individual patient based
upon EDGE-enabled definition of their tumor-specific neoantigens
(TSNA). Our ‘off the shelf’ SLATE program, which was recently
accelerated based on feedback from the Food and Drug Administration
(FDA), includes TSNA that are shared among some patients and is
designed to similarly arm the immune system to destroy tumors in
patients identified to have one or more of those TSNA. The TSNA
that serve as the keystone to these therapies are identified by
EDGE, our proprietary machine learning antigen-prediction model,
that we continue to expand, both identifying further novel class I
HLA-presented neoantigens and extending into the exciting domain of
class II HLA-presented neoantigens. On the heels of these
successes, we bolstered our cash position in April to enable us to
maximize the many opportunities within our portfolio to change the
landscape of cancer therapy.”
Recent Gritstone Oncology
Highlights
- Completed a successful public offering of common stock, raising
approximately $74.8 million in gross proceeds
- Began dosing patients in its Phase 1/2 “GO-004” clinical study
evaluating GRANITE-001 in combination with immune checkpoint
blockade for the treatment of patients with advanced solid tumors,
including microsatellite stable colorectal cancer, gastroesophageal
cancer, metastatic non-small cell lung cancer, and bladder
cancer
- Accelerated the clinical timeline for the SLATE Phase 1 study
by up to six months from the company’s prior expectations following
FDA feedback
- Delivered an oral presentation at the American Association for
Cancer Research (AACR) Annual Meeting demonstrating that Gritstone
EDGETM improved the positive predictive value for human leukocyte
antigen class II (HLA-DR) peptide presentation over standard
methods by approximately 20-fold
- Presented a poster at AACR showing Gritstone’s capabilities to
efficiently identify neoantigen-reactive T cells and T cell
receptors, which have potential applications in cell therapy
- Augmented the Scientific Advisory Board with the addition of
Eugene Zhukovsky, Ph.D., an expert in the development of bispecific
biotherapeutics
- Appointed technology executive Mike Forcht, Ed.D., M.B.A., as
senior vice president of Human Resources
- Selected by the Board of Directors of the Massachusetts Life
Sciences Center (MLSC), an economic development investment agency
dedicated to supporting the growth and development of the life
sciences in Massachusetts, as a recipient of a tax incentive award
to support the expansion of Gritstone’s Cambridge-based
talent
Anticipated Near-term
Milestones
- Submit an Investigational New Drug application for the Phase
1/2 study of SLATE-001 in the second quarter of 2019
- Dose the first patient in the Phase 1/2 SLATE clinical study as
early as mid-2019
- Report preliminary data from the first part of both the SLATE
and GRANITE Phase 1 trials in the fourth quarter of 2019 at a
scientific meeting
- Nominate a lead bispecific antibody development candidate
directed towards a novel solid tumor-specific HLA-peptide complex
in 4Q19
First Quarter 2019 Financial
ResultsFor the three months ended March 31, 2019,
Gritstone reported a net loss of $18.0 million, compared to a net
loss of $13.4 million for the three months ended March 31,
2018.
Collaboration revenue was $1.3 million for the
three months ended March 31, 2019, with no collaboration revenue
recognized for the three months ended March 31, 2018. The increase
was due to revenue recognized under the Research Collaboration and
License Agreement with bluebird, which was entered into
in August 2018.
Total research and development expenses were
$15.9 million for the three months ended March 31, 2019, compared
to $11.4 million for the three months ended March 31, 2018. The
increase was primarily attributable to an increase in
personnel-related expenses driven by increased headcount, as well
as an increase in outside services and consultants, in-house
laboratory supplies and consumables, and facilities-related
expenses.
General and administrative expenses were $4.4
million for the three months ended March 31, 2019, compared to $2.0
million for the three months ended March 31, 2018. The increase was
primarily attributable to an increase in personnel-related expenses
driven by an increase in headcount and an increase in legal and
other outside professional services required to support the
company’s ongoing operations as a public company.
Cash, cash equivalents, and marketable
securities were $132.2 million as of March 31, 2019, compared to
$153.1 million as of December 31, 2018. The first quarter ending
cash position does not include the $74.8 million in gross proceeds
from the public stock offering that was completed in the second
quarter.
About Gritstone
OncologyGritstone Oncology (Nasdaq: GRTS), a
clinical-stage biotechnology company, is developing the next
generation of cancer immunotherapies to fight multiple cancer
types. Gritstone develops its products by leveraging two key
pillars—first, a proprietary machine learning-based platform,
Gritstone EDGE™, which is designed to predict, from a routine tumor
biopsy, the tumor-specific neoantigens (TSNA) that are presented on
a patient’s tumor cells; and second, the ability to develop and
manufacture potent immunotherapies utilizing patients’ TSNA to
potentially drive the patient’s immune system to specifically
attack and destroy tumors. The company’s lead product candidate,
GRANITE-001, is a personalized neoantigen-based immunotherapy in
Phase 1 clinical testing. Gritstone’s second product candidate,
SLATE-001, is a shared neoantigen (“off-the-shelf”) immunotherapy
which is advancing towards the clinic. Novel tumor-specific
antigens can also provide targets for bispecific antibody (BiSAb)
therapeutics for solid tumors, and Gritstone’s BiSAb program is
currently in lead optimization. For more information, please visit
gritstoneoncology.com.
Gritstone Forward-Looking Statements This press
release contains forward-looking statements, including, but not
limited to, statements related to the expected timing for
preliminary efficacy data from the Phase 1 GRANITE and SLATE
studies and its investigational immunotherapies. Such
forward-looking statements involve substantial risks and
uncertainties that could cause Gritstone’s research and clinical
development programs, future results, performance or achievements
to differ significantly from those expressed or implied by the
forward-looking statements. Such risks and uncertainties include,
among others, the uncertainties inherent in the drug development
process, including Gritstone’s programs’ early stage of
development, the process of designing and conducting preclinical
and clinical trials, the regulatory approval processes, the timing
of regulatory filings, the challenges associated with manufacturing
drug products, Gritstone’s ability to successfully establish,
protect and defend its intellectual property and other matters that
could affect the sufficiency of existing cash to fund operations.
Gritstone undertakes no obligation to update or revise any
forward-looking statements. For a further description of the risks
and uncertainties that could cause actual results to differ from
those expressed in these forward-looking statements, as well as
risks relating to the business of the company in general, see
Gritstone’s most recent Quarterly Report on Form 10-Q filed on May
13, 2019 and any current and periodic reports filed with the
Securities and Exchange Commission.
ContactsMedia:Dan Budwick1AB(973)
271-6085dan@1abmedia.com
Investors:Alexandra SantosWheelhouse Life Science Advisors(510)
871-6161asantos@wheelhouselsa.com
Gritstone Oncology, Inc. |
Condensed Statements of Operations |
(Unaudited) |
(In thousands, except share and per share data) |
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
|
|
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
Collaboration revenue |
|
$ |
1,347 |
|
|
$ |
- |
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
Research and development |
|
|
15,899 |
|
|
|
11,401 |
|
General and administrative |
|
|
4,377 |
|
|
|
2,038 |
|
Total operating expenses |
|
|
20,276 |
|
|
|
13,439 |
|
Loss from operations |
|
|
(18,929 |
) |
|
|
(13,439 |
) |
Interest and other income, net |
|
|
920 |
|
|
|
63 |
|
Net loss |
|
$ |
(18,009 |
) |
|
$ |
(13,376 |
) |
Net loss per common share, basic and diluted |
|
$ |
(0.62 |
) |
|
$ |
(6.03 |
) |
Shares used to compute for net income (loss) per
common share, basic and diluted |
|
|
28,938,891 |
|
|
|
2,217,726 |
|
Gritstone Oncology, Inc. |
Condensed Balance Sheets |
(Unaudited) |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2019 |
|
December 31, 2018 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
$ |
34,572 |
|
|
$ |
52,183 |
|
Marketable securities |
|
|
|
|
|
|
97,590 |
|
|
|
100,927 |
|
Prepaid expenses and other current assets |
|
|
|
|
|
|
2,838 |
|
|
|
4,526 |
|
Total current assets |
|
|
|
|
|
|
135,000 |
|
|
|
157,636 |
|
Property and equipment, net |
|
|
|
|
|
|
15,652 |
|
|
|
29,494 |
|
Operating lease right-of-use assets |
|
|
|
|
|
|
22,018 |
|
|
|
- |
|
Deposits and other
long-term assets |
|
|
|
|
|
|
2,817 |
|
|
|
2,428 |
|
Total assets |
|
|
|
|
|
$ |
175,487 |
|
|
$ |
189,558 |
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders'
equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
|
|
|
$ |
3,622 |
|
|
$ |
4,825 |
|
Accrued compensation |
|
|
|
|
|
|
1,694 |
|
|
|
3,951 |
|
Accrued liabilities |
|
|
|
|
|
|
803 |
|
|
|
992 |
|
Lease liabilties, current portion |
|
|
|
|
|
|
2,574 |
|
|
|
- |
|
Deverred revenue, current portion |
|
|
|
|
|
|
5,419 |
|
|
|
5,340 |
|
Total current liabilities |
|
|
|
|
|
|
14,112 |
|
|
|
15,108 |
|
Deferred rent, net of current portion |
|
|
|
|
|
|
- |
|
|
|
1,353 |
|
Other non-current liabilities |
|
|
|
|
|
|
2 |
|
|
|
12 |
|
Lease financing obligation, net of current portion |
|
|
|
|
|
|
- |
|
|
|
10,490 |
|
Lease liabilities, net of current portion |
|
|
|
|
|
|
17,104 |
|
|
|
- |
|
Deferred revenue, net of current portion |
|
|
|
|
|
|
12,047 |
|
|
|
13,473 |
|
Total liabilities |
|
|
|
|
|
|
43,265 |
|
|
|
40,436 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
Convertible preferred stock |
|
|
|
|
|
|
- |
|
|
|
- |
|
Common stock |
|
|
|
|
|
|
16 |
|
|
|
16 |
|
Additional paid-in capital |
|
|
|
|
|
|
276,703 |
|
|
|
275,593 |
|
Accumulated other comprehensive loss |
|
|
|
|
|
|
67 |
|
|
|
(85 |
) |
Accumulated deficit |
|
|
|
|
|
|
(144,564 |
) |
|
|
(126,402 |
) |
Total stockholders' equity |
|
|
|
|
|
|
132,222 |
|
|
|
149,122 |
|
Total liabilities and stockholders' equity |
|
|
|
|
|
$ |
175,487 |
|
|
$ |
189,558 |
|
|
|
|
|
|
|
|
|
|
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