Assembly Biosciences Reports Second Quarter 2020 Financial Results and Recent Highlights
August 05 2020 - 4:05PM
Assembly Biosciences, Inc. (Nasdaq: ASMB), a clinical-stage
biotechnology company developing innovative therapeutics targeting
hepatitis B virus (HBV) and diseases associated with the
microbiome, today reported financial results and recent highlights
for the second quarter ended June 30, 2020.
“We have continued to advance the clinical development of our
HBV core inhibitors during 2020 with the achievement of key
milestones. In June, patients began coming off combination therapy
in our Phase 2 open-label extension study of ABI-H0731 and will now
be followed to evaluate the sustained virologic response (SVR)
rate. We expect to be able to report data from these patients off
treatment for 24 weeks (SVR24), early next year,” said John
McHutchison, AO, MD, Chief Executive Officer and President of
Assembly Biosciences. “Additionally, in July we established an
important collaboration with BeiGene, a premier scientific partner
with key operational capabilities in China. This will allow us to
accelerate the clinical development and commercialization of our
core inhibitor candidates in China, where up to 90 million
individuals are infected with hepatitis B.”
Second Quarter 2020 and Recent Highlights
HBV Portfolio |
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China Collaboration with BeiGene |
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On July 20, 2020, Assembly announced its license and collaboration
agreement with BeiGene, Ltd. for Assembly’s portfolio of three
clinical-stage core inhibitors (ABI-H0731, ABI-H2158, ABI-H3733) in
China including Hong Kong, Macau and Taiwan. |
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Assembly received $40 million upfront and is eligible to receive
approximately $500 million in total potential future milestone
payments. Assembly is also eligible to receive tiered royalties on
net product sales. BeiGene will contribute the initial funding for
clinical development in China, with development costs for the
territory shared equally thereafter. |
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ABI-H0731(‘731): Assembly’s lead core inhibitor candidate |
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Patients achieving stopping criteria are continuing to transition
off combination therapy in the Phase 2 open-label extension study
(Study 211) and are being monitored for sustained virologic
response. |
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Assembly initiated a Phase 2 exploratory study evaluating treatment
intensification with ‘731 in combination with a nucleos(t)ide
analogue reverse transcriptase inhibitor (NrtI) in patients with
chronic HBV infection who are not completely virologically
suppressed on NrtI therapy alone. Approximately 10-30% of patients
do not completely suppress HBV DNA after a year or more on standard
of care NrtI therapy, and these patients have an unmet need for a
more effective treatment. |
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ABI-H2158 (‘2158), Assembly’s second-generation, more potent core
inhibitor candidate |
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Assembly initiated a multi-center, randomized, placebo-controlled
Phase 2 trial to evaluate ‘2158 with entecavir versus placebo with
entecavir in treatment naïve HBeAg positive patients with chronic
HBV infection. |
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The U.S Food and Drug Administration granted Fast Track designation
for ‘2158 for the treatment of chronic HBV Infection. |
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Microbiome Portfolio |
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Assembly presented preclinical data from its immuno-oncology
microbiome program in an e-poster at the American Association for
Cancer Research (AACR) 2020 Virtual Annual Meeting. |
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Assembly will regain worldwide rights to the gastrointestinal
programs previously licensed to AbbVie (formerly Allergan
pre-acquisition) in the fourth quarter of 2020. The Company is
exploring strategic alternatives with respect to its microbiome
portfolio. |
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Corporate Highlights |
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In June 2020, William Delaney IV, PhD joined as Chief Scientific
Officer, Virology. |
Anticipated Milestones and Events
HBV Portfolio |
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‘731 |
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Additional interim analyses from Study 211 will be presented at the
European Association for the Study of the Liver’s (EASL) Digital
International Liver Congress, rescheduled to August 27-29, 2020;
abstracts were accepted as an oral presentation (HBeAg negative
patients) and as a late-breaking poster (HBeAg positive
patients). |
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’2158 |
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Phase 1b clinical data on multiple dose cohorts will be presented
as a late-breaking poster at EASL. |
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The analytical methodologies for Assembly’s highly sensitive HBV
nucleic acid (DNA and pgRNA) assays will be featured in a poster at
EASL. |
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Upcoming Events and Conferences |
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William Blair Biotech Focus Conference: August 6, 2020 |
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Baird’s 2020 Global Healthcare Conference: September 9, 2020 |
Second Quarter 2020 Financial Results
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Cash, cash equivalents and marketable securities
were $226.7 million as of June 30, 2020, compared to $249.1 million
as of March 31, 2020. This excludes the $40.0 million upfront
payment received in July 2020 as part of the collaboration
agreement with BeiGene. Including the proceeds from the
collaboration, Assembly’s cash position is projected to fund
operations into the second half of 2022. |
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Revenues from collaborative research were $39.4
million for the three months ended June 30, 2020 compared to $3.1
million for the same period in 2019. This includes the recognition
of deferred revenue and reimbursements incurred under the
collaboration agreement with AbbVie (formerly Allergan
pre-acquisition) for which AbbVie provided written notice of
termination in June 2020. As a result, we recognized the remaining
deferred revenue balance of $36.0 million. Assembly will continue
to recognize additional collaboration revenue into the fourth
quarter of 2020 for reimbursement activities that occur through the
120-day transition period. |
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Research and development expenses were $23.3
million for the three months ended June 30, 2020, compared to $18.7
million for the same period in 2019. The increase was primarily due
to an increase of $3.9 million in research and development expenses
related to the HBV program. Research and development expenses
include non-cash stock-based compensation expenses of $3.6 million
for the three months ended June 30, 2020 and $3.1 million for the
same period in 2019. |
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General and administrative expenses were $9.5
million for the three months ended June 30, 2020 compared to $4.1
million for the same period in 2019. The increase was primarily due
to a non-recurring reversal of previously recognized stock-based
compensation expense of $3.6 million related to forfeited awards
following the departure of one of Assembly’s former executive
officers in 2019. General and administrative expenses include
non-cash stock-based compensation expenses of $3.5 million for the
three months ended June 30, 2020 and $(1.1) million for the same
period in 2019. |
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Net income (loss) attributable to common
stockholders was $7.5 million, or $0.21 per basic and
$0.19 per diluted share, for the three months ended June 30, 2020
compared to $(18.5) million, or $(0.72) per basic and diluted
share, for the same period in 2019. This was primarily due to the
recognition of the remaining deferred revenue balance as noted
above. |
About Assembly BiosciencesAssembly
Biosciences, Inc. is a clinical-stage biotechnology company
developing innovative therapeutics targeting hepatitis B virus
(HBV) and diseases associated with the microbiome. The HBV program
is focused on advancing a new class of potent, oral core inhibitors
that have the potential to increase cure rates for chronically
infected patients. The microbiome program is developing novel
oral live microbial biotherapeutic candidates with Assembly’s fully
integrated platform, including a robust process for strain
identification and selection, GMP manufacturing expertise and
targeted delivery to the lower gastrointestinal tract with the
GEMICEL® technology. For more information, visit
assemblybio.com.
Forward-Looking Statements The information in
this press release contains forward-looking statements that are
subject to certain risks and uncertainties that could cause actual
results to materially differ. These risks and uncertainties
include: Assembly’s ability to initiate and complete clinical
trials involving its HBV Cure and Microbiome therapeutic product
candidates in the currently anticipated timeframes; safety and
efficacy data from clinical studies may not warrant further
development of Assembly’s product candidates; clinical and
nonclinical data presented at conferences may not differentiate
Assembly’s product candidates from other companies’ candidates;
Assembly may not observe sustained virologic response in patients
who stop therapy in Study 211; the timing and ability to implement
strategic alternatives with respect to the Microbiome program;
Assembly’s ability to maintain financial resources necessary to
continue its clinical trials and fund business operations; any
impact that the spread of the coronavirus and resulting COVID-19
pandemic may have on Assembly’s business and operations, including
initiation and continuation of its clinical trials or timing of
discussions with regulatory authorities; and other risks identified
from time to time in Assembly’s reports filed with the U.S.
Securities and Exchange Commission (the SEC). You are urged to
consider statements that include the words may, will, would, could,
should, might, believes, hopes, estimates, projects, potential,
expects, plans, anticipates, intends, continues, forecast,
designed, goal or the negative of those words or other comparable
words to be uncertain and forward-looking. Assembly intends such
forward-looking statements to be covered by the safe harbor
provisions contained in Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. More information about Assembly’s risks and
uncertainties are more fully detailed under the heading “Risk
Factors” in Assembly's filings with the SEC, including its most
recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q
and Current Reports on Form 8-K. Except as required by law,
Assembly assumes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Contacts
Lauren GlaserSenior Vice President, Investor Relations and
Corporate Affairs(415) 521-3828lglaser@assemblybio.com
Solebury TroutLuke Brown(646) 378-2944lbrown@troutgroup.com
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ASSEMBLY BIOSCIENCES, INC. |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(In thousands except for share amounts and par
value) |
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June 30, |
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December 31, |
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2020 |
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2019 |
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(Unaudited) |
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ASSETS |
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Current assets |
|
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Cash and cash equivalents |
$ |
96,709 |
|
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$ |
46,732 |
|
Marketable securities |
|
130,005 |
|
|
|
227,311 |
|
Accounts receivable from collaboration |
|
3,315 |
|
|
|
3,374 |
|
Prepaid expenses and other current assets |
|
5,059 |
|
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|
5,363 |
|
Total current assets |
|
235,088 |
|
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282,780 |
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Property and equipment, net |
|
2,063 |
|
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|
1,830 |
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Operating lease right-of-use (ROU) assets |
|
10,780 |
|
|
|
11,975 |
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Other assets |
|
5,232 |
|
|
|
1,684 |
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Indefinite-lived intangible asset |
|
29,000 |
|
|
|
29,000 |
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Goodwill |
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12,638 |
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12,638 |
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Total assets |
$ |
294,801 |
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$ |
339,907 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities |
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Accounts payable |
$ |
3,640 |
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$ |
1,731 |
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Accrued clinical expenses |
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4,362 |
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4,826 |
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Other accrued expenses |
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6,019 |
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8,286 |
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Deferred revenue - short-term |
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— |
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6,411 |
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Operating lease liabilities - short-term |
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3,250 |
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3,186 |
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Total current liabilities |
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17,271 |
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24,440 |
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Deferred tax liabilities |
|
2,531 |
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2,531 |
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Deferred revenue - long-term |
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— |
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30,637 |
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Operating lease liabilities - long-term |
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7,884 |
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9,082 |
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Total liabilities |
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27,686 |
|
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|
66,690 |
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Commitments and contingencies |
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Stockholders' equity |
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Preferred stock, $0.001 par value; 5,000,000 shares authorized; no
shares issued or outstanding |
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— |
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— |
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Common stock, $0.001 par value; 100,000,000 shares authorized as of
June 30, 2020 and December 31, 2019; 32,807,519 and 32,558,307
shares issued and outstanding as of June 30, 2020 and December
31, 2019, respectively |
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33 |
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32 |
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Additional paid-in capital |
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725,784 |
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712,807 |
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Accumulated other comprehensive income (loss) |
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104 |
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(201 |
) |
Accumulated deficit |
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(458,806 |
) |
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(439,421 |
) |
Total stockholders' equity |
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267,115 |
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273,217 |
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Total liabilities and stockholders' equity |
$ |
294,801 |
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$ |
339,907 |
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ASSEMBLY BIOSCIENCES, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS) |
(In thousands except for share and per share amounts) |
(Unaudited) |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2020 |
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2019 |
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2020 |
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2019 |
Collaboration revenue |
$ |
39,376 |
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$ |
3,080 |
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$ |
43,457 |
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$ |
6,966 |
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Operating expenses: |
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Research and development |
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23,327 |
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18,700 |
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46,373 |
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41,405 |
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General and administrative |
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9,470 |
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4,080 |
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|
18,199 |
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13,597 |
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Total operating expenses |
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32,797 |
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22,780 |
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64,572 |
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|
55,002 |
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Income (loss) from operations |
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6,579 |
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(19,700 |
) |
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(21,115 |
) |
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(48,036 |
) |
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Other income |
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Interest and other income, net |
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691 |
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1,186 |
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|
1,730 |
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|
2,463 |
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Total other income |
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691 |
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|
|
1,186 |
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|
|
1,730 |
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|
|
2,463 |
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Income (loss) before income taxes |
|
7,270 |
|
|
|
(18,514 |
) |
|
|
(19,385 |
) |
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(45,573 |
) |
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Income tax benefit |
|
— |
|
|
|
11 |
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|
— |
|
|
|
18 |
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Net income (loss) |
$ |
7,270 |
|
|
$ |
(18,503 |
) |
|
$ |
(19,385 |
) |
|
$ |
(45,555 |
) |
|
|
|
|
|
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|
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Other comprehensive income |
|
|
|
|
|
|
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Unrealized gain on marketable securities, net of tax |
|
190 |
|
|
|
52 |
|
|
|
305 |
|
|
|
160 |
|
Comprehensive income (loss) |
$ |
7,460 |
|
|
$ |
(18,451 |
) |
|
$ |
(19,080 |
) |
|
$ |
(45,395 |
) |
|
|
|
|
|
|
|
|
Net income (loss) per share, basic |
$ |
0.21 |
|
|
$ |
(0.72 |
) |
|
$ |
(0.55 |
) |
|
$ |
(1.77 |
) |
Weighted average common shares outstanding, basic |
|
35,307,669 |
|
|
|
25,740,500 |
|
|
|
35,229,570 |
|
|
|
25,690,617 |
|
Net income (loss) per share, diluted |
$ |
0.19 |
|
|
$ |
(0.72 |
) |
|
$ |
(0.55 |
) |
|
$ |
(1.77 |
) |
Weighted average common shares outstanding, diluted |
|
37,291,474 |
|
|
|
25,740,500 |
|
|
|
35,229,570 |
|
|
|
25,690,617 |
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