Celldex Therapeutics, Inc. (NASDAQ:CLDX) today reported business
and financial highlights for the third quarter ended September 30,
2020.
“In the third quarter, building on the compelling CDX-0159 data
presented at EAACI, we initiated two Phase 1b studies in chronic
spontaneous urticaria and chronic inducible urticaria which will
provide the foundation for several important data readouts in
2021,” said Anthony Marucci, Co-founder, President and Chief
Executive Officer of Celldex Therapeutics. “We also advanced the
first candidate from our bispecific program, CDX-527, into the
clinic in solid tumors and continued to expand the ongoing CDX-1140
program, adding a combination cohort with chemotherapy in
pancreatic cancer.
In addition, we are completing our work prioritizing
opportunities to expand development of CDX-0159 into additional
therapeutic areas. Our analysis supports that there are multiple
mast cell driven indications that have the potential to be
dramatically impacted by an agent that targets the root cause of
the disease—the mast cell itself—and we remain on track to start a
third study in a mast cell disease setting next summer. We are
closing out a busy, successful year and look forward to continuing
this momentum in 2021,” concluded Marucci.
Recent Pipeline Highlights
While Celldex’s clinical development programs have not been
significantly, negatively impacted by COVID-19 to date, the Company
continues to carefully monitor the evolving situation closely
across all development programs and work to minimize potential
impact/disruptions.
CDX-0159—a humanized monoclonal antibody developed by Celldex
that binds the KIT receptor with high specificity and potently
inhibits its activity. The KIT receptor tyrosine kinase is
expressed in a variety of cells, including mast cells, which
mediate inflammatory responses such as hypersensitivity and
allergic reactions. KIT signaling controls the differentiation,
tissue recruitment, survival and activity of mast
cells. Results from a Phase 1a dose escalation study of
CDX-0159 were featured in a late breaking presentation in June at
the EAACI Annual Congress 2020. CDX-0159 demonstrated a favorable
safety profile as well as profound and durable reductions of plasma
tryptase, indicative of systemic mast cell ablation.
- Celldex initiated dosing in a Phase 1b multi-center study of
CDX-0159 in chronic spontaneous urticaria (CSU) in October. This
study is a randomized, double-blind, placebo-controlled clinical
trial designed to assess the safety of multiple ascending doses of
CDX-0159 in up to 40 patients with CSU who remain symptomatic
despite treatment with antihistamines. Secondary and exploratory
objectives include pharmacokinetic and pharmacodynamic assessments,
including measurement of tryptase and stem cell factor levels and
clinical activity outcomes (impact on urticaria symptoms, disease
control, clinical response) as well as quality of life assessments.
Results from the study are expected in the second half of
2021.
- Patient screening has begun in a second Phase 1b study in
chronic inducible urticaria (CIndU). This study, which is being
conducted by Dr. Marcus Maurer, Professor of Dermatology and
Allergy and Director of Research at the Department of Dermatology
and Allergy at the Allergie-Centrum-Charité of the Charité -
Universitätsmedizin in Berlin, is exploring cold-induced urticaria
and symptomatic dermographism (scratch-induced urticaria). The
initiation of the study was slowed by the need to incorporate,
align and obtain approval on COVID-19 screening and management
protocols with the responsible Ethics Committee and German Health
Authority. The Company plans to present data from the study at the
end of the first quarter.
- Celldex is also exploring additional mast cell driven diseases
for potential future development, including mast cell activation
syndromes, asthma, allergic conditions and mast cell driven
gastrointestinal disorders.
CDX-1140—a potent CD40 human agonist antibody developed by
Celldex that the Company believes has the potential to successfully
balance systemic doses for good tissue and tumor penetration with
an acceptable safety profile.
- In the Phase 1 dose escalation study of CDX-1140 in patients
with recurrent, locally advanced or metastatic solid tumors and B
cell lymphomas, both the monotherapy and combination with CDX-301
dose escalation portions of the trial are complete with an
identified maximum tolerated dose (MTD) and recommended dose of
CDX-1140 at 1.5 mg/kg—one of the highest systemic dose levels in
the CD40 agonist class. Expansion cohorts are actively recruiting
including:
- CDX-1140 with KEYTRUDA® (pembrolizumab) in patients who have
progressed on checkpoint therapy; and,
- A combination of CDX-1140 with standard of care chemotherapy in
first line metastatic pancreatic cancer.
- Updated interim data from the ongoing Phase 1 study has been
accepted for poster presentation at the Society for Immunotherapy
of Cancer’s (SITC) 35th Anniversary Annual Meeting &
Pre-Conference Programs (SITC 2020) and will include updated data
from the monotherapy and CDX-301 combination cohorts focusing on
the MTD level (1.5 mg/kg), as well as preliminary safety data from
the combination cohort with pembrolizumab.
CDX-527—the first candidate developed by Celldex from its
bispecific platform which utilizes the Company’s proprietary highly
active anti-PD-L1 and CD27 human antibodies to couple CD27
co-stimulation with blockade of the PD-L1/PD-1 pathway.
- In August, Celldex initiated a Phase 1 dose escalation study in
up to ~90 patients with advanced or metastatic solid tumors that
have progressed during or after standard of care therapy to be
followed by tumor-specific expansion cohorts. The study is designed
to determine the MTD during a dose escalation phase and to
recommend a dose level for further study in the subsequent
expansion phase. The expansion is designed to further evaluate the
tolerability, and biologic and anti-tumor effects of selected dose
level(s) of CDX-527 in specific tumor types. Initial data from the
Phase 1 study are anticipated in the first half of 2021.
- The CDX-527 Phase 1 study design will be presented as a
clinical trial in progress poster at SITC 2020.
In addition to the CDX-1140 and CDX-527 presentations, the
Company will also present preclinical data from its Axl discovery
program at SITC 2020. Axl is a member of the TAM (Tyro3/Axl/MerTK)
family of receptor tyrosine kinases and a negative regulator of
innate immunity.
Third Quarter 2020 Financial Highlights
and 2020 Guidance
Cash Position: Cash, cash equivalents and
marketable securities as of September 30, 2020 were $199.6 million
compared to $206.9 million as of June 30, 2020. The decrease was
primarily driven by third quarter cash used in operating activities
of $11.9 million, partially offset by net proceeds of $4.3 million
from sales of common stock under Celldex’s Controlled Equity
OfferingSM agreement with Cantor. At September 30, 2020, Celldex
had 39.6 million shares outstanding.
Revenues: Total revenue was $0.7 million in the
third quarter of 2020 and $3.6 million for the nine months ended
September 30, 2020, compared to $0.5 million and $2.7 million for
the comparable periods in 2019. The increase in revenue was
primarily due to the $1.8 million milestone payment from
Rockefeller University related to Celldex’s manufacturing and
development services agreement, partially offset by a decrease in
services performed under the Company’s manufacturing and research
and development agreement with Duke University.
R&D Expenses: Research and development
(R&D) expenses were $10.7 million in the third quarter of 2020
and $32.1 million for the nine months ended September 30, 2020,
compared to $11.1 million and $32.3 million for the comparable
periods in 2019. The decrease in R&D expense was primarily due
to a decrease in contract research and stock-based compensation
expenses, partially offset by an increase in clinical trials and
contract manufacturing expenses.
G&A Expenses: General and administrative
(G&A) expenses were $3.6 million in the third quarter of 2020
and $10.8 million for the nine months ended September 30, 2020,
compared to $3.4 million and $12.2 million for the comparable
periods in 2019. The decrease in G&A expenses was primarily due
to a decrease in stock-based compensation and facility
expenses.
Intangible Asset Impairment: The $3.5 million
non-cash impairment charge recorded during the second quarter of
2020 was due to the discontinuation of the CDX-3379 program.
Changes in Fair Value Remeasurement of Contingent
Consideration: The $0.7 million loss on fair value
remeasurement of contingent consideration recorded during the third
quarter of 2020 and the $4.2 million gain on fair value
remeasurement of contingent consideration recorded during the nine
months ended September 30, 2020 were primarily due to updated
assumptions for CDX-3379 related milestones due to the
discontinuation of the CDX-3379 program in the second quarter of
2020, changes in discount rates and the passage of time.
Net Loss: Net loss was $14.2 million, or
($0.36) per share, for the third quarter of 2020, and $37.9
million, or ($1.44) per share, for the nine months ended September
30, 2020, compared to a net loss of $11.4 million, or ($0.75) per
share, for the third quarter of 2019 and $40.4 million, or ($2.92)
per share, for the nine months ended September 30, 2019.
Financial Guidance: Celldex believes that the
cash, cash equivalents and marketable securities at September 30,
2020 are sufficient to meet estimated working capital requirements
and fund planned operations through 2023.
KEYTRUDA® is a registered trademark of Merck Sharp & Dohme
Corp., a subsidiary of Merck & Co., Inc., Kenilworth, NJ
USA.
About Celldex Therapeutics, Inc.Celldex is a
clinical stage biotechnology company dedicated to developing
monoclonal and bispecific antibodies that address devastating
diseases for which available treatments are inadequate. Our
pipeline includes antibody-based therapeutics which have the
ability to engage the human immune system and/or directly affect
critical pathways to improve the lives of patients with
inflammatory diseases and many forms of cancer. Visit
www.celldex.com.
Forward Looking Statement This release contains
"forward-looking statements" made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These statements are typically preceded by words such as
"believes," "expects," "anticipates," "intends," "will," "may,"
"should," or similar expressions. These forward-looking statements
reflect management's current knowledge, assumptions, judgment and
expectations regarding future performance or events. Although
management believes that the expectations reflected in such
statements are reasonable, they give no assurance that such
expectations will prove to be correct or that those goals will be
achieved, and you should be aware that actual results could differ
materially from those contained in the forward-looking statements.
Forward-looking statements are subject to a number of risks and
uncertainties, including, but not limited to, our ability to
successfully complete research and further development and
commercialization of Company drug candidates; the effects of the
outbreak of COVID-19 on our business and results of operations; the
uncertainties inherent in clinical testing and accruing patients
for clinical trials; our limited experience in bringing programs
through Phase 3 clinical trials; our ability to manage and
successfully complete multiple clinical trials and the research and
development efforts for our multiple products at varying stages of
development; the cost of paying development, regulatory approval
and sales-based milestones under our merger agreement with Kolltan,
including the cost, timing, and outcome of our declaratory judgment
action against the Kolltan stockholder representative with respect
to certain of those milestones; the availability, cost, delivery
and quality of clinical and commercial grade materials produced by
our own manufacturing facility or supplied by contract
manufacturers, who may be our sole source of supply; the timing,
cost and uncertainty of obtaining regulatory approvals; the failure
of the market for the Company's programs to continue to develop;
our ability to protect the Company's intellectual property; the
loss of any executive officers or key personnel or consultants;
competition; changes in the regulatory landscape or the imposition
of regulations that affect the Company's products; our ability to
continue to obtain capital to meet our long-term liquidity needs on
acceptable terms, or at all, including the additional capital which
will be necessary to complete the clinical trials that we have
initiated or plan to initiate; and other factors listed under "Risk
Factors" in our annual report on Form 10-K and quarterly reports on
Form 10-Q.
All forward-looking statements are expressly qualified in their
entirety by this cautionary notice. You are cautioned not to place
undue reliance on any forward-looking statements, which speak only
as of the date of this release. We have no obligation, and
expressly disclaim any obligation, to update, revise or correct any
of the forward-looking statements, whether as a result of new
information, future events or otherwise.
Company ContactSarah CavanaughSenior Vice
President, Corporate Affairs & AdministrationCelldex
Therapeutics, Inc.(781) 433-3161scavanaugh@celldex.com
CELLDEX
THERAPEUTICS, INC. |
(In
thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS |
|
Three
Months |
|
Nine
Months |
OF OPERATIONS DATA |
|
Ended September 30, |
|
Ended September 30, |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
(Unaudited) |
|
(Unaudited) |
REVENUES: |
|
|
|
|
|
|
|
|
Product Development and |
|
|
|
|
|
|
|
|
|
Licensing
Agreements |
|
$ |
12 |
|
|
$ |
55 |
|
|
$ |
2,297 |
|
|
$ |
379 |
|
Contracts and Grants |
|
|
656 |
|
|
|
491 |
|
|
|
1,336 |
|
|
|
2,307 |
|
|
|
|
|
|
|
|
|
|
|
Total Revenue |
|
|
668 |
|
|
|
546 |
|
|
|
3,633 |
|
|
|
2,686 |
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
Research and Development |
|
|
10,708 |
|
|
|
11,101 |
|
|
|
32,109 |
|
|
|
32,333 |
|
General and Administrative |
|
|
3,640 |
|
|
|
3,403 |
|
|
|
10,833 |
|
|
|
12,207 |
|
Intangible Asset Impairment |
|
|
- |
|
|
|
- |
|
|
|
3,500 |
|
|
|
- |
|
Other Asset Impairment |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,800 |
|
Loss (Gain) on Fair Value Remeasurement |
|
|
|
|
|
|
|
|
|
of Contingent Consideration |
|
|
662 |
|
|
|
(2,114 |
) |
|
|
(4,236 |
) |
|
|
(1,612 |
) |
|
|
|
|
|
|
|
|
|
|
Total Operating Expense |
|
|
15,010 |
|
|
|
12,390 |
|
|
|
42,206 |
|
|
|
44,728 |
|
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
|
(14,342 |
) |
|
|
(11,844 |
) |
|
|
(38,573 |
) |
|
|
(42,042 |
) |
|
|
|
|
|
|
|
|
|
|
Investment and Other Income, Net |
|
|
118 |
|
|
|
431 |
|
|
|
465 |
|
|
|
1,611 |
|
|
|
|
|
|
|
|
|
|
|
Net Loss Before Income Tax Benefit |
|
|
(14,224 |
) |
|
|
(11,413 |
) |
|
|
(38,108 |
) |
|
|
(40,431 |
) |
|
|
|
|
|
|
|
|
|
|
Income Tax Benefit |
|
|
- |
|
|
|
- |
|
|
|
228 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(14,224 |
) |
|
$ |
(11,413 |
) |
|
$ |
(37,880 |
) |
|
$ |
(40,431 |
) |
|
|
|
|
|
|
|
|
|
|
Basic and Diluted Net Loss per |
|
|
|
|
|
|
|
|
|
Common Share |
|
$ |
(0.36 |
) |
|
$ |
(0.75 |
) |
|
$ |
(1.44 |
) |
|
$ |
(2.92 |
) |
Shares Used in Calculating Basic |
|
|
|
|
|
|
|
|
|
and Diluted Net Loss per Share |
|
|
39,278 |
|
|
|
15,282 |
|
|
|
26,303 |
|
|
|
13,854 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED |
|
|
|
|
|
|
|
|
BALANCE SHEETS DATA |
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
|
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
ASSETS |
|
|
|
|
|
|
|
|
Cash, Cash Equivalents and Marketable Securities |
|
|
|
|
|
$ |
199,594 |
|
|
$ |
64,383 |
|
Other Current Assets |
|
|
|
|
|
|
3,331 |
|
|
|
2,315 |
|
Property and Equipment, net |
|
|
|
|
|
|
3,813 |
|
|
|
4,031 |
|
Intangible and Other Assets, net |
|
|
|
|
|
|
49,032 |
|
|
|
52,204 |
|
|
Total
Assets |
|
|
|
|
|
$ |
255,770 |
|
|
$ |
122,933 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
$ |
12,200 |
|
|
$ |
11,643 |
|
Long-Term Liabilities |
|
|
|
|
|
|
13,595 |
|
|
|
17,264 |
|
Stockholders' Equity |
|
|
|
|
|
|
229,975 |
|
|
|
94,026 |
|
|
Total
Liabilities and Stockholders' Equity |
|
|
|
|
|
$ |
255,770 |
|
|
$ |
122,933 |
|
|
|
|
|
|
|
|
|
|
|
Celldex Therapeutics (NASDAQ:CLDX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Celldex Therapeutics (NASDAQ:CLDX)
Historical Stock Chart
From Apr 2023 to Apr 2024