Generation Bio Reports Business Highlights and Second Quarter 2021 Financial Results
August 11 2021 - 4:20PM
Generation Bio Co. (Nasdaq: GBIO), a biotechnology company
innovating genetic medicines for people living with rare and
prevalent diseases, reported recent business highlights and second
quarter 2021 financial results.
“This quarter we announced our shift to rapid enzymatic
synthesis, or RES, for production of our closed-ended DNA, ceDNA,
constructs and our signing of a lease to establish significant
internal current Good Manufacturing Practice, or cGMP,
manufacturing capacity. These are important steps toward our goal
of extending the reach of our durable, redosable genetic medicines
to patients with prevalent diseases,” said Geoff McDonough, M.D.,
chief executive officer of Generation Bio. “We will continue to
advance the platform throughout the rest of the year and expect
factor VIII expression data with ceDNA produced using RES in
non-human primates for our hemophilia A program by
year-end.”
Business Highlights
- Transition of Portfolio to
Next-Generation Rapid Enzymatic Manufacturing Process
Underway: In July 2021, Generation Bio announced plans to
deploy next-generation RES for manufacturing its closed-ended DNA
(ceDNA) constructs across all portfolio programs. The company also
signed a lease agreement to build out a state-of-the-art cGMP
facility of approximately 104,000 square feet in Waltham, Mass. to
scale RES for clinical and initial commercial supply. The facility
is expected to be operational in 2023, enabling an Investigational
New Drug (IND) application and clinical development for the
company’s lead program in hemophilia A. The company is using its
existing infrastructure for current production of research material
using RES. As Generation Bio transitions to RES, it expects to
update its program development strategy and timelines for its
pipeline.
Second Quarter 2021 Financial Results
- Cash
Position: Cash, cash equivalents and marketable
securities were $425.2 million as of June 30, 2021,
compared with $262.3 million as of December 31, 2020.
- R&D
Expenses: Research and development (R&D) expenses
were $22.7 million for the quarter ended June 30,
2021, compared to $13.5 million for the quarter ended June 30,
2020.
- G&A
Expenses: General and administrative (G&A)
expenses were $8.2 million for the quarter ended
June 30, 2021, compared to $4.3 million for the quarter ended June
30, 2020.
- Net Loss: Net
loss was $30.8 million, or $0.55 basic and diluted net loss
per share, for the quarter ended June 30, 2021, compared to a
net loss of $17.7 million, or $1.50 basic and diluted net loss per
share, for the quarter ended June 30, 2020.
About Generation Bio
Generation Bio is innovating genetic medicines to provide
durable, redosable treatments for people living with rare and
prevalent diseases. The company’s non-viral genetic medicine
platform incorporates a novel DNA construct called closed-ended
DNA, or ceDNA; a unique cell-targeted lipid nanoparticle delivery
system, or ctLNP; and a highly scalable capsid-free manufacturing
process that uses proprietary cell-free rapid enzymatic synthesis,
or RES, to produce ceDNA. The platform is designed to enable
multi-year durability from a single dose, to deliver large genetic
payloads, including multiple genes, to specific tissues, and to
allow titration and redosing to adjust or extend expression levels
in each patient. RES has the potential to expand Generation Bio’s
manufacturing scale to hundreds of millions of doses to support its
mission to extend the reach of genetic medicine to more people,
living with more diseases, around the world.
For more information, please visit www.generationbio.com.
Forward-Looking Statements
Any statements in this press release about future expectations,
plans and prospects for the company, including statements about our
strategic plans or objectives, our technology platform, our
research and clinical development plans, the expected timing of the
submission of IND applications and preclinical data, our
manufacturing plans, our expectations regarding our new facility
and other statements containing the words “believes,”
“anticipates,” “plans,” “expects,” and similar expressions,
constitute forward-looking statements within the meaning of The
Private Securities Litigation Reform Act of 1995. Actual results
may differ materially from those indicated by such forward-looking
statements as a result of various important factors, including:
uncertainties inherent in the identification and development of
product candidates, including the conduct of research activities,
the initiation and completion of preclinical studies and clinical
trials and clinical development of the company’s product
candidates; uncertainties as to the availability and timing of
results from preclinical studies and clinical trials; whether
results from preclinical studies will be predictive of the results
of later preclinical studies and clinical trials; uncertainties
regarding the timing and ability to complete the build-out of the
company’s manufacturing facility and regarding the new
manufacturing process; expectations regarding the timing of
submission of IND applications; expectations for regulatory
approvals to conduct trials or to market products; challenges in
the manufacture of genetic medicine products; whether the company’s
cash resources are sufficient to fund the company’s operating
expenses and capital expenditure requirements for the period
anticipated; the impact of the COVID-19 pandemic on the company’s
business and operations; as well as the other risks and
uncertainties set forth in the “Risk Factors” section of our most
recent annual report on Form 10-K and quarterly report on Form
10-Q, which are on file with the Securities and Exchange
Commission, and in subsequent filings the company may make with the
Securities and Exchange Commission. In addition, the
forward-looking statements included in this press release represent
the company’s views as of the date hereof. The company anticipates
that subsequent events and developments will cause the company’s
views to change. However, while the company may elect to
update these forward-looking statements at some point in the
future, the company specifically disclaims any obligation to do
so. These forward-looking statements should not be relied upon
as representing the company’s views as of any date subsequent to
the date on which they were made.
Contacts:
InvestorsMaren KillackeyGeneration
Bio541-646-2420mkillackey@generationbio.com
MediaAlicia WebbGeneration
Bio847-254-4275awebb@generationbio.com
Lisa RaffenspergerTen Bridge
Communications617-903-8783lisa@tenbridgecommunications.com
GENERATION BIO
CO.CONSOLIDATED BALANCE SHEET DATA
(Unaudited)(In thousands)
Earnings Release
Balance Sheet |
|
June 30, 2021 |
|
December 31, 2020 |
Cash, cash equivalents and marketable securities |
|
$ |
425,193 |
|
$ |
262,327 |
Working capital |
|
|
418,810 |
|
|
256,515 |
Total assets |
|
|
490,792 |
|
|
294,155 |
Total stockholders’
equity |
|
|
433,402 |
|
|
268,013 |
GENERATION BIO
CO.CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS (Unaudited)
(in thousands, except share and per share
data)
|
|
Three Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
Operating expenses: |
|
|
|
|
|
|
Research and development |
|
$ |
22,656 |
|
|
$ |
13,456 |
|
General and administrative |
|
|
8,186 |
|
|
|
4,308 |
|
Total operating expenses |
|
|
30,842 |
|
|
|
17,764 |
|
Loss from operations |
|
|
(30,842 |
) |
|
|
(17,764 |
) |
Other income: |
|
|
|
|
|
|
Interest income |
|
|
51 |
|
|
|
33 |
|
Net loss and net loss
attributable to common stockholders |
|
$ |
(30,791 |
) |
|
$ |
(17,731 |
) |
Net loss per share
attributable to common stockholders, basic and diluted |
|
$ |
(0.55 |
) |
|
$ |
(1.50 |
) |
Weighted average common shares
outstanding, basic and diluted |
|
|
56,318,025 |
|
|
|
11,801,704 |
|
|
|
|
|
|
|
|
Comprehensive loss: |
|
|
|
|
|
|
Net loss |
|
$ |
(30,791 |
) |
|
$ |
(17,731 |
) |
Other comprehensive loss: |
|
|
|
|
|
|
Unrealized losses on marketable securities |
|
|
(6 |
) |
|
|
(4 |
) |
Comprehensive loss |
|
$ |
(30,797 |
) |
|
$ |
(17,735 |
) |
|
|
|
|
|
|
|
|
|
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