Sarepta Therapeutics, Inc. (NASDAQ:SRPT), the leader in precision
genetic medicine for rare diseases, today reported financial
results for the first quarter of 2021.
“In the first quarter,
we obtained FDA approval for and launched our third RNA therapy for
Duchenne, AMONDYS 45™ (casimersen). The first AMONDYS 45 patient
was treated within the first week of approval. Serving the
community with EXONDYS 51, VYONDYS 53, and AMONDYS 45, we achieved
net product revenue of $124.9 million, a 24% increase over the same
quarter in 2020,” stated Doug Ingram, Sarepta’s president and CEO.
“We also made significant strides in the advancement of our
pipeline. Two days ago we announced positive results for the 30
mg/kg cohort of SRP-5051, our lead PPMO candidate. As we reported,
after a median of only 12-weeks and three doses, the PPMO showed a
significant dose-dependent increase in expression, exhibiting an 18
times greater level of exon skipping and nearly an order of
magnitude greater level of dystrophin production as compared to
EXONDYS 51, the currently approved standard of care for those with
Duchenne amenable to exon 51 skipping. SRP-5051 achieved this in
about half the time as EXONDYS 51 and with only about 12% of the
dose exposure.”
Mr. Ingram continued,
“Also in the first quarter we reported positive data from our
ongoing study of SRP-9003, our investigational gene therapy for
limb-girdle muscular dystrophy Type 2E at the 2021 Muscular
Dystrophy Association Annual Clinical and Scientific Conference,
reporting robust expression, a good safety profile, good durability
to two years, and significantly better functional results than
age-matched natural history. For SRP-9001, our investigational gene
therapy for Duchenne, we have gained invaluable and proprietary
insight from the read out of Part 1 of Study 102 which we have used
to refine the protocol of our next trial, Study 301. We remain on
track to report data in the second quarter from Study 103
(ENDEAVOR), our open-label study evaluating the performance of our
commercially representative SRP-9001 material.”
First Quarter
2021 and Recent Corporate Developments:
- Reported positive clinical
results from Phase 2 MOMENTUM study of SRP-5051 in patients with
Duchenne muscular dystrophy amenable to skipping exon 51:
These results were from the 30 mg/kg arm of Part A of the MOMENTUM
study (Study 5051-201), a global, Phase 2, multi-ascending dose
clinical trial of SRP-5051, Sarepta’s next-generation peptide
phosphorodiamidate morpholino oligomer (PPMO) treatment for
patients with Duchenne muscular dystrophy amenable to skipping exon
51. Strong, dose-dependent exon-skipping and dystrophin expression
results with monthly dosing of SRP-5051 were observed in ambulant
and non-ambulant Duchenne patients when compared to earlier dosing
cohorts in Part A and a control group who received weekly dosing of
eteplirsen. Hypomagnesemia was identified in patients taking
SRP-5051. Cases have resolved with oral magnesium supplementation
and an analysis of all available data indicate that the
hypomagnesemia is monitorable and manageable. Part A of MOMENTUM is
now complete, and the Company is engaging regulatory agencies to
outline next steps for the program. Part B of MOMENTUM is intended
to be a pivotal trial supporting an accelerated approval in the
United States. The full results will be presented at a future
medical meeting.
Results from the 30 mg/kg dose
cohort:
- In biopsies taken at week 12, 30
mg/kg of SRP-5051 dosed monthly resulted in mean exon skipping
of 10.79% (n=4). Exon skipping was measured by digital drop
polymerase chain reaction (ddPCR).
- This correlates to a >4x
increase in exon skipping compared to the 20 mg/kg cohort of
SRP-5051 at 12 weeks (mean exon skipping of 2.57%, n=2) and an 18x
increase in exon skipping compared a weekly 30 mg/kg dose of
eteplirsen at 24 weeks (mean exon skipping of 0.59%, n=16).
- At week 12, 30 mg/kg of SRP-5051
resulted in mean dystrophin production of 6.55% of normal.
Dystrophin expression was measured by western blot.
- This is twice the dystrophin
expression compared to the 20 mg/kg cohort at week 12 (mean
expression of 3.06%) and eight times that of the eteplirsen
comparison group (mean expression of 0.82%).
- Sarepta’s investigational
gene therapy, SRP-9003 being developed for the treatment of
limb-girdle muscular dystrophy Type 2E (LGMD2E/R4), showed
sustained expression and functional improvements at two years after
administration: At the 2021 Muscular Dystrophy Association
(MDA) Annual Clinical and Scientific Conference held in March, the
Company presented the first expression data from biopsies of
participants in Cohort 1 (low-dose cohort) taken two years after a
single administration of SRP-9003. The results showed sustained
protein expression in muscle tissue. In functional outcomes
assessments taken two years following treatment in Cohort 1 and one
year after treatment in Cohort 2 (high-dose cohort), patients
continued to demonstrate stability in their NSAD (North Star
Assessment for Dysferlinopathies) total score and improvements on
timed function tests. The results from both cohorts reinforce the
safety and tolerability profile of SRP-9003.
Cohort 1
(Dosed at 1.85×1013 vg/kg), 24
months following treatment:
- As measured by western blot, mean
beta-SG of 54% at 24 months of normal control, compared to 36%
measured at Day 60.
- Percent immunofluorescent (IF)
positive fibers was 48% compared to normal control, compared to 51%
at Day 60.
- Participants showed a mean
intensity of 35% of transduced beta-SG, properly localized to the
muscle sarcolemma, as measured by IF, compared to 47% at Day
60.
- The mean NSAD improvement from
baseline of 5.7 points at 18 months was sustained through 24
months.
- All three participants demonstrated
continued improvements from baseline across all functional
measures, including time-to-rise, four-stair climb, 100-meter walk
test and 10-meter walk test.
Cohort 2
(Dosed at 7.41×1013 vg/kg), 12
months following treatment:
- At Day 60, the expression of
beta-SG (72% mean positive fibers and 73% mean intensity) resulted
in increased expression of delta-sarcoglycan, with 65% mean
positive fibers and 103% intensity, and gamma-sarcoglycan, 60% mean
positive fibers and 97% intensity. These results suggest treatment
with SRP-9003 demonstrates reconstitution of the
dystrophin-associated protein complex, which could lead to improved
membrane integrity and thus improved clinical motor outcomes
measures.
- All three participants demonstrated
improvements from baseline across all functional measures,
including the NSAD, time-to-rise, four-stair climb, 100-meter walk
test and 10-meter walk test.
- The mean NSAD improvement from
baseline was 4.0 points at one year, compared to 3.7 at 6
months.
- Presented results from gene
therapy and RNA platforms at the 2021 MDA Annual Clinical and
Scientific Conference: Sarepta held two symposia and
presented four podium presentations and six posters at MDA. In
addition to the new two- and one-year data for SRP-9003, the three
other podium presentations covered data from Part 1 of Study
9001-102, an ongoing clinical trial of SRP-9001, Sarepta’s
investigational gene therapy for Duchenne muscular dystrophy and
pre-clinical approaches to the challenge of pre-existing
antibodies. An analysis of time to loss of ambulation in patients
taking eteplirsen compared to standard of care was also
presented.
Conference
CallThe Company will be hosting a conference call at 4:30
p.m. Eastern Time to discuss Sarepta’s financial results and
provide a corporate update. The conference call may be accessed by
dialing (844) 534-7313 for domestic callers and (574) 990-1451 for
international callers. The passcode for the call is 6429649. Please
specify to the operator that you would like to join the “Sarepta
First Quarter 2021 Earnings Call.” The conference call will be
webcast live under the investor relations section of Sarepta's
website at www.sarepta.com and will be archived there following the
call for 90 days. Please connect to Sarepta's website several
minutes prior to the start of the broadcast to ensure adequate time
for any software download that may be necessary.
Financial
ResultsOn a GAAP basis, the Company reported a net loss of
$167.3 million and $17.5 million, or $2.10 and $0.23 per basic and
diluted share for the first quarter of 2021 and 2020, respectively.
On a non-GAAP basis, the net loss for the first quarter of 2021 was
$122.5 million, or $1.54 per basic and diluted share, compared to a
net loss of $79.8 million, or $1.04 per basic and diluted share for
the same period of 2020.
Revenues For the three months ended March 31,
2021, the Company recorded net product revenues of $124.9 million,
compared to net product revenues of $100.4 million for the same
period of 2020, an increase of $24.5 million. The increase
primarily reflects the continuing increase in demand for the
Company’s products in the U.S.
For the three months
ended March 31, 2021 and 2020, the Company recognized $22.0 million
and $13.2 million of collaboration revenue, respectively, which
relates to the Company’s collaboration arrangement with Roche
Holding A.G. (Roche).
Cost and
Operating Expenses Cost of sales (excluding amortization
of in-licensed rights)For the three months ended March 31, 2021,
cost of sales (excluding amortization of in-licensed rights) was
$22.3 million, compared to $12.6 million for the same period of
2020, an increase of $9.7 million. The increase in cost of sales is
primarily due to increasing demand for the Company’s products and
the write-offs of certain batches of EXONDYS 51 not meeting the
Company’s quality specifications for the three months ended March
31, 2021, with no similar activity for the three months ended March
31, 2020.
Research and
developmentResearch and development expenses were $195.1 million
for the three months ended March 31, 2021, compared to $136.1
million for the same period of 2020, an increase of $59.0 million.
The increase in research and development expenses primarily
reflects the following:
- $27.1 million increase in
manufacturing expenses primarily due to a continuing ramp-up of the
Company’s gene therapy programs;
- $10.0 million increase in clinical
trial expenses primarily due to increased patient enrollment for
the Company’s ESSENCE program as well as certain start-up
activities for the Company’s micro-dystrophin program;
- $6.9 million increase in research
activities primarily driven by an increase in sponsored research
with academic institutions during the three months ended March 31,
2021;
- $4.6 million increase in
pre-clinical expenses primarily due to an increase of toxicology
studies in the Company’s PPMO platforms;
- $4.1 million increase in
compensation and other personnel expenses primarily due to a net
increase in headcount;
- $3.9 million increase in facility-
and technology-related expenses due to the Company’s continuing
expansion efforts;
- $3.6 million increase in
collaboration cost sharing with Genethon on its micro-dystrophin
drug candidates and Lysogene on its MPS IIIA drug candidate;
- $1.9 million increase in
stock-based compensation expense primarily driven by increases in
headcount and changes in stock price;
- $1.9 million decrease in
professional service expenses primarily due to a decrease in
reliance on third-party research and development contractors as a
result of an increase in hiring and headcount;
- $4.5 million decrease in up-front,
milestone and other expenses primarily due to $4.0 million of
milestone expense incurred in the three months ended March 31,
2021, offset by $8.8 million of milestone expense accrued to an
academic institution during the same period of 2020; and
- $3.3 million increase in the offset
to expense associated with a collaboration reimbursement from Roche
primarily due to continuing development of the Company’s
micro-dystrophin gene therapy.
Non-GAAP research and
development expenses were $173.5 million and $114.2 million for the
three months ended March 31, 2021 and 2020, respectively, an
increase of $59.3 million.
Selling, general and
administrationSelling general and administrative expenses were
approximately $71.1 million for the three months ended March 31,
2021, compared to $82.8 million for the same period in 2020, a
decrease of $11.7 million. The decrease in selling, general and
administrative expenses primarily reflects the following:
- $2.6 million increase in
stock-based compensation primarily due to increases in headcount
and changes in stock price;
- $1.3 million increase in
compensation and other personnel expenses primarily due to a net
increase in headcount; and
- $15.6 million decrease in
professional services primarily due to a decrease in reliance on
third-party selling, general and administrative contractors as a
result of an increase in hiring and headcount, as well as a
transaction fee for the Roche transaction incurred during the three
months ended March 31, 2020, with no similar activity incurred
during the three months ended March 31, 2021.
Non-GAAP selling,
general and administrative expenses were $51.5 million and $54.5
million for the three months ended March 31, 2021 and 2020,
respectively, a decrease of $3.0 million.
Settlement and license
chargesIn February 2021, the Company recognized a $10.0 million
settlement charge related to contingent settlement payments to
BioMarin Pharmaceutical, Inc. (BioMarin) as a result of the
approval of AMONDYS 45. This was a result of a settlement and
license agreement with BioMarin in July 2017. There was no such
expense recognized during the same period of 2020.
Amortization of
in-licensed rightsFor each of the three months ended March 31, 2021
and 2020, the Company recorded amortization of in-licensed rights
of approximately $0.2 million. This is related to the amortization
of the in-licensed right assets recognized as a result of
agreements the Company entered into with BioMarin and UWA.
Other expense, netFor
the three months ended March 31, 2021 and 2020, other expense, net
was approximately $15.5 million and $7.4 million, respectively. The
increase primarily reflects an increase in interest expense
incurred on the Company’s term loan debt facilities due to an
increase in the outstanding balance partially offset by a reduction
of interest expense incurred on the Company’s convertible debt
related to the adoption of ASU 2020-06, as well as a decrease in
interest income and the amortization of investment discounts due to
changes in investment mix of the Company’s investment
portfolio.
Gain from sale of
Priority Review Voucher In February 2021, the Company entered into
an agreement to sell the rare pediatric disease Priority Review
Voucher (PRV) it received from the FDA in connection with the
approval of AMONDYS 45 for consideration of $102.0 million. The
closing of the transaction is subject to the expiration or
termination of the waiting period under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976 and other customary conditions.
The transaction closed on April 13, 2021 and the net proceeds will
be recorded as a gain from sale of the PRV as it does not have a
carrying value at the time of the sale during the quarter ended
June 30, 2021.
In February 2020, the
Company entered into an agreement to sell the PRV it received from
the FDA in connection with the approval of VYONDYS 53. In March
2020, the Company completed its sale of the PRV and received
proceeds of $108.1 million, net of commission, which was recorded
as a gain from sale of the PRV as it did not have a carrying value
at the time of the sale.
Cash, Cash
Equivalents, Investments and Restricted Cash and
Investments The Company had approximately $1.7 billion in
cash, cash equivalents and investments as of March 31, 2021,
compared to $1.9 billion as of December 31, 2020. The decrease is
primarily driven by cash used to fund the Company’s ongoing
operations during 2021.
Use of
Non-GAAP Measures In addition to the GAAP financial
measures set forth in this press release, the Company has included
certain non-GAAP measurements. The non-GAAP loss is defined by the
Company as GAAP net loss excluding interest expense, net, income
tax (benefit) expense, depreciation and amortization expense,
stock-based compensation expense and other items. Non-GAAP research
and development expenses are defined by the Company as GAAP
research and development expenses excluding depreciation and
amortization expense, stock-based compensation expense and other
items. Non-GAAP selling, general and administrative expenses are
defined by the Company as GAAP selling, general and administrative
expenses excluding depreciation and amortization expense,
stock-based compensation expense and other items.
1. Interest, tax,
depreciation and amortizationInterest expense, net amounts can vary
substantially from period to period due to changes in cash and debt
balances and interest rates driven by market conditions outside of
the Company’s operations. Tax amounts can vary substantially from
period to period due to tax adjustments that are not directly
related to underlying operating performance. Depreciation expense
can vary substantially from period to period as the purchases of
property and equipment may vary significantly from period to period
and without any direct correlation to the Company’s operating
performance. Amortization expense primarily associated with
in-licensed rights as well as patent costs are amortized over a
period of several years after acquisition or patent application or
renewal and generally cannot be changed or influenced by
management.
2. Stock-based
compensation expensesStock-based compensation expenses represent
non-cash charges related to equity awards granted by the Company.
Although these are recurring charges to operations, the Company
believes the measurement of these amounts can vary substantially
from period to period and depend significantly on factors that are
not a direct consequence of operating performance that is within
the Company’s control. Therefore, the Company believes that
excluding these charges facilitates comparisons of the Company’s
operational performance in different periods.
3. Other itemsThe
Company evaluates other items of expense and income on an
individual basis. It takes into consideration quantitative and
qualitative characteristics of each item, including (a) nature, (b)
whether the items relate to the Company’s ongoing business
operations, and (c) whether the Company expects the items to
continue on a regular basis. These other items include
collaboration revenue and transaction cost related to the Roche
transaction, up-front and milestone payments, acquired in-process
research and development expense, gain from sale of PRV and loss on
contingent consideration.
The Company excludes
collaboration revenue and transaction cost associated with the
Roche transaction from its non-GAAP results. While collaboration
revenue is recurring, as the Company’s ordinary activities do not
include contracting with third parties to provide them with
research and development services, collaboration revenue is treated
as a non-GAAP adjustment item. Additionally, the transaction fee
related to the Roche transaction is non-recurring and is excluded
from its non-GAAP results. However, the Company does not exclude
reimbursement of costs by Roche from its non-GAAP results.
The Company excludes
up-front and milestone payments associated with its license and
collaboration agreements from its non-GAAP results and research and
development expenses because the Company does not consider them to
be normal operating expenses due to their nature, variability of
amounts, and lack of predictability as to occurrence and/or timing.
Up-front payments are made at the commencement of a collaborative
relationship or a license agreement anticipated to continue for a
multi-year period and provide the Company with intellectual
property rights, option rights and other rights with respect to
particular programs. Milestone payments are made when certain
development, regulatory and sales milestone events are achieved.
The variability of amounts and lack of predictability of
collaboration- and license-related up-front and milestone payment
makes the identification of trends in the Company’s ongoing
research and development activities more difficult.
The sale of the PRV
obtained as a result of the FDA approval of VYONDYS 53 in December
2019 is a non-recurring event and excluded from the Company’s
non-GAAP results.
The Company excludes
from its non-GAAP results loss on contingent consideration related
to the Company’s acquisition of Myonexus in 2019 as it is a
non-cash item and is not considered to be normal operating expenses
due to its variability of amounts and lack of predictability as to
occurrence and/or timing.
The Company uses these
non-GAAP measures as key performance measures for the purpose of
evaluating operational performance and cash requirements
internally. The Company also believes these non-GAAP measures
increase comparability of period-to-period results and are useful
to investors as they provide a similar basis for evaluating the
Company’s performance as is applied by management. These non-GAAP
measures are not intended to be considered in isolation or to
replace the presentation of the Company’s financial results in
accordance with GAAP. Use of the terms non-GAAP research and
development expenses, non-GAAP selling, general and administrative
expenses, non-GAAP other income and loss adjustments, non-GAAP
income tax (benefit) expense, non-GAAP net loss, and non-GAAP basic
and diluted net loss per share may differ from similar measures
reported by other companies, which may limit comparability, and are
not based on any comprehensive set of accounting rules or
principles. All relevant non-GAAP measures are reconciled from
their respective GAAP measures in the attached table
"Reconciliation of GAAP Financial Measures to Non-GAAP Financial
Measures.”
About EXONDYS
51EXONDYS 51 uses Sarepta’s proprietary phosphorodiamidate
morpholino oligomer (PMO) chemistry and exon-skipping technology to
bind to exon 51 of dystrophin pre-mRNA, resulting in “skipping” of
this exon during mRNA processing in patients with genetic mutations
that are amenable to exon 51 skipping. Exon skipping is intended to
allow for production of an internally truncated dystrophin
protein.
EXONDYS 51 is
indicated for the treatment of Duchenne muscular dystrophy in
patients who have a confirmed mutation of the DMD gene that is
amenable to exon 51 skipping.
This indication is
approved under accelerated approval based on an increase in
dystrophin production in skeletal muscle observed in some patients
treated with EXONDYS 51. Continued approval may be contingent upon
verification of a clinical benefit in confirmatory trials.
EXONDYS 51 has met the
full statutory standards for safety and effectiveness and as such
is not considered investigational or experimental.
Important
Safety Information About EXONDYS 51 Hypersensitivity
reactions, including rash and urticaria, pyrexia, flushing, cough,
dyspnea, bronchospasm, and hypotension, have occurred in patients
who were treated with EXONDYS 51. If a hypersensitivity reaction
occurs, institute appropriate medical treatment and consider
slowing the infusion or interrupting the EXONDYS 51 therapy.
Adverse reactions in
DMD patients (N=8) treated with EXONDYS 51 30 mg or 50 mg/kg/week
by intravenous (IV) infusion with an incidence of at least 25% more
than placebo (N=4) (Study 1, 24 weeks) were (EXONDYS 51, placebo):
balance disorder (38%, 0%), vomiting (38%, 0%) and contact
dermatitis (25%, 0%). The most common adverse reactions were
balance disorder and vomiting. Because of the small numbers of
patients, these represent crude frequencies that may not reflect
the frequencies observed in practice. The 50 mg/kg once weekly
dosing regimen of EXONDYS 51 is not recommended.
In the 88 patients who
received ≥30 mg/kg/week of EXONDYS 51 for up to 208 weeks in
clinical studies, the following events were reported in ≥10% of
patients and occurred more frequently than on the same dose in
Study 1: vomiting, contusion, excoriation, arthralgia, rash,
catheter site pain, and upper respiratory tract infection.
For further
information, please see the full Prescribing Information.
About VYONDYS
53 VYONDYS 53 uses Sarepta’s proprietary
phosphorodiamidate morpholino oligomer (PMO) chemistry and
exon-skipping technology to bind to exon 53 of dystrophin pre-mRNA,
resulting in exclusion, or “skipping,” of this exon during mRNA
processing in patients with genetic mutations that are amenable to
exon 53 skipping. Exon skipping is intended to allow for production
of an internally truncated dystrophin protein.
VYONDYS 53 is
indicated for the treatment of Duchenne muscular dystrophy in
patients who have a confirmed mutation of the DMD gene that is
amenable to exon 53 skipping.
This indication is
approved under accelerated approval based on an increase in
dystrophin production in skeletal muscle observed in patients
treated with VYONDYS 53. Continued approval may be contingent upon
verification of a clinical benefit in confirmatory trials.
VYONDYS 53 has met the
full statutory standards for safety and effectiveness and as such
is not considered investigational or experimental.
Important
Safety Information for VYONDYS 53Hypersensitivity
reactions, including rash, pyrexia, pruritus, urticaria,
dermatitis, and skin exfoliation have occurred in VYONDYS
53-treated patients, some requiring treatment. If a
hypersensitivity reaction occurs, institute appropriate medical
treatment and consider slowing the infusion or interrupting the
VYONDYS 53 therapy.
Kidney toxicity was
observed in animals who received golodirsen. Although kidney
toxicity was not observed in the clinical studies with VYONDYS 53,
the clinical experience with VYONDYS 53 is limited, and kidney
toxicity, including potentially fatal glomerulonephritis, has been
observed after administration of some antisense oligonucleotides.
Kidney function should be monitored in patients taking VYONDYS 53.
Because of the effect of reduced skeletal muscle mass on creatinine
measurements, creatinine may not be a reliable measure of kidney
function in DMD patients. Serum cystatin C, urine dipstick, and
urine protein-to-creatinine ratio should be measured before
starting VYONDYS 53. Consider also measuring glomerular filtration
rate using an exogenous filtration marker before starting VYONDYS
53. During treatment, monitor urine dipstick every month, and serum
cystatin C and urine protein-to-creatinine ratio every three
months. Only urine expected to be free of excreted VYONDYS 53
should be used for monitoring of urine protein. Urine obtained on
the day of VYONDYS 53 infusion prior to the infusion, or urine
obtained at least 48 hours after the most recent infusion, may be
used. Alternatively, use a laboratory test that does not use the
reagent pyrogallol red, as this reagent has the potential to cross
react with any VYONDYS 53 that is excreted in the urine and thus
lead to a false positive result for urine protein.
If a persistent
increase in serum cystatin C or proteinuria is detected, refer to a
pediatric nephrologist for further evaluation.
Adverse reactions
observed in at least 20% of treated patients and greater than
placebo were (VYONDYS 53, placebo): headache (41%, 10%), pyrexia
(41%, 14%), fall (29%, 19%), abdominal pain (27%, 10%),
nasopharyngitis (27%, 14%), cough (27%, 19%), vomiting (27%, 19%),
and nausea (20%, 10%).
Other adverse
reactions that occurred at a frequency greater than 5% of VYONDYS
53-treated patients and at a greater frequency than placebo were:
administration site pain, back pain, pain, diarrhea, dizziness,
ligament sprain, contusion, influenza, oropharyngeal pain,
rhinitis, skin abrasion, ear infection, seasonal allergy,
tachycardia, catheter site related reaction, constipation, and
fracture.
For further
information, please see the full Prescribing Information.
About AMONDYS
45AMONDYS 45 (casimersen) is an antisense oligonucleotide
indicated for the treatment of Duchenne muscular dystrophy in
patients who have a confirmed mutation of the DMD gene that is
amenable to exon 45 skipping. AMONDYS 45 uses Sarepta’s proprietary
phosphorodiamidate morpholino oligomer (PMO) chemistry and
exon-skipping technology to bind to exon 45 of dystrophin pre-mRNA,
resulting in exclusion, or “skipping,” of this exon during mRNA
processing in patients with genetic mutations that are amenable to
exon 45 skipping. Exon skipping is intended to allow for production
of an internally truncated dystrophin protein.
AMONDYS 45 is approved
under accelerated review based on an increase in dystrophin
production in skeletal muscle of patients amenable to exon 45
skipping. Continued approval may be contingent upon verification of
a clinical benefit in confirmatory trials.
AMONDYS 45 has met the
full statutory standards for safety and effectiveness and as such
is not considered investigational or experimental.
Important
Safety Information for AMONDYS 45Kidney toxicity was
observed in animals who received casimersen. Although kidney
toxicity was not observed in the clinical studies with AMONDYS 45,
kidney toxicity, including potentially fatal glomerulonephritis,
has been observed after administration of some antisense
oligonucleotides. Kidney function should be monitored in patients
taking AMONDYS 45. Because of the effect of reduced skeletal muscle
mass on creatinine measurements, creatinine may not be a reliable
measure of kidney function in DMD patients. Serum cystatin C, urine
dipstick, and urine protein-to-creatinine ratio should be measured
before starting AMONDYS 45. Consider also measuring glomerular
filtration rate using an exogenous filtration marker before
starting AMONDYS 45. During treatment, monitor urine dipstick every
month, and serum cystatin C and urine protein-to-creatinine ratio
(UPCR) every three months. Only urine expected to be free of
excreted AMONDYS 45 should be used for monitoring of urine protein.
Urine obtained on the day of AMONDYS 45 infusion prior to the
infusion, or urine obtained at least 48 hours after the most recent
infusion, may be used. Alternatively, use a laboratory test that
does not use the reagent pyrogallol red, as this reagent has the
potential to cross react with any AMONDYS 45 that is excreted in
the urine and thus lead to a false positive result for urine
protein.
If a persistent
increase in serum cystatin C or proteinuria is detected, refer to a
pediatric nephrologist for further evaluation.
Adverse reactions
observed in at least 20% of patients treated with AMONDYS 45 and at
least 5% more frequently than in the placebo group were (AMONDYS
45, placebo): upper respiratory tract infections (65%, 55%), cough
(33%, 26%), pyrexia (33%, 23%), headache (32%, 19%), arthralgia
(21%, 10%), and oropharyngeal pain (21%, 7%).
Other adverse
reactions that occurred in at least 10% of patients treated with
AMONDYS 45 and at least 5% more frequently in the placebo group,
were: ear pain, nausea, ear infection, post-traumatic pain, and
dizziness and light-headedness.
For further
information, please see the full Prescribing Information.
About Sarepta
TherapeuticsSarepta is on an urgent mission: engineer
precision genetic medicine for rare diseases that devastate lives
and cut futures short. We hold leadership positions in Duchenne
muscular dystrophy (DMD) and limb-girdle muscular dystrophies
(LGMDs), and we currently have more than 40 programs in various
stages of development. Our vast pipeline is driven by our
multi-platform Precision Genetic Medicine Engine in gene therapy,
RNA and gene editing. For more information, please
visit www.sarepta.com or follow us on Twitter, LinkedIn,
Instagram and Facebook.
Forward-Looking Statements In order to provide
Sarepta’s investors with an understanding of its current results
and future prospects, this press release contains statements that
are forward-looking. Any statements contained in this press release
that are not statements of historical fact may be deemed to be
forward-looking statements. Words such as “believes,”
“anticipates,” “plans,” “expects,” “will,” “may,” “intends,”
“prepares,” “looks,” “potential,” “possible” and similar
expressions are intended to identify forward-looking statements.
These forward-looking statements include statements relating to our
future operations, financial performance and projections, business
plans, market opportunities, priorities and research and
development programs and expected plans and milestones, including
reporting data in Q2 2021 from SRP-9001 Study 103, the plan that
Part B of MOMENTUM will be a pivotal trial supporting an
accelerated approval in the U.S., and reporting the full results of
our MOMENTUM study at a future medical meeting.
These forward-looking
statements involve risks and uncertainties, many of which are
beyond Sarepta’s control. Actual results could materially differ
from those stated or implied by these forward-looking statements as
a result of such risks and uncertainties. Known risk factors
include the following: we may not be able to comply with all FDA
post-approval commitments and requirements with respect to our
products in a timely manner or at all; success in preclinical and
clinical trials, especially if based on a small patient sample,
does not ensure that later clinical trials will be successful, and
the results of future research may not be consistent with past
positive results or may fail to meet regulatory approval
requirements for the safety and efficacy of product candidates; if
the actual number of patients suffering from the diseases we aim to
treat is smaller than estimated, our revenue and ability to achieve
profitability may be adversely affected; we may not be able to
execute on our business plans, including meeting our expected or
planned regulatory milestones and timelines, research and clinical
development plans, and bringing our product candidates to market,
for various reasons, some of which may be outside of our control,
including possible limitations of company financial and other
resources, manufacturing limitations that may not be anticipated or
resolved for in a timely manner, the COVID-19 pandemic and
regulatory, court or agency decisions, such as decisions by the
United States Patent and Trademark Office with respect to patents
that cover our product candidates; and those risks identified under
the heading “Risk Factors” in our most recent Annual Report on Form
10-K for the year ended December 31, 2020 and most recent Quarterly
Report on Form 10-Q filed with the Securities and Exchange
Commission (SEC) as well as other SEC filings made by the Company
which you are encouraged to review.
Internet
Posting of InformationWe routinely post information that
may be important to investors in the 'For Investors' section of our
website at www.sarepta.com. We encourage investors and
potential investors to consult our website regularly for important
information about us.
Sarepta Therapeutics, Inc.Condensed Consolidated
Statements of Operations(unaudited, in thousands, except per share
amounts)
|
|
For the Three Months EndedMarch
31, |
|
|
|
2021 |
|
|
2020 |
|
Revenues: |
|
|
|
|
|
|
|
|
Products, net |
|
$ |
124,926 |
|
|
$ |
100,448 |
|
Collaboration |
|
|
22,005 |
|
|
|
13,226 |
|
Total revenues |
|
|
146,931 |
|
|
|
113,674 |
|
Cost and expenses: |
|
|
|
|
|
|
|
|
Cost of sales (excluding amortization of in-licensed rights) |
|
|
22,346 |
|
|
|
12,622 |
|
Research and development |
|
|
195,149 |
|
|
|
136,144 |
|
Selling, general and administrative |
|
|
71,131 |
|
|
|
82,768 |
|
Settlement and license charges |
|
|
10,000 |
|
|
|
— |
|
Amortization of in-licensed rights |
|
|
170 |
|
|
|
166 |
|
Total cost and expenses |
|
|
298,796 |
|
|
|
231,700 |
|
Operating loss |
|
|
(151,865 |
) |
|
|
(118,026 |
) |
Other (loss) income: |
|
|
|
|
|
|
|
|
Other expense, net |
|
|
(15,528 |
) |
|
|
(7,420 |
) |
Gain from sale of Priority Review Voucher |
|
|
— |
|
|
|
108,069 |
|
Total other (loss) income |
|
|
(15,528 |
) |
|
|
100,649 |
|
|
|
|
|
|
|
|
|
|
Loss before income tax
(benefit) expense |
|
|
(167,393 |
) |
|
|
(17,377 |
) |
Income tax (benefit) expense |
|
|
(143 |
) |
|
|
115 |
|
Net loss |
|
$ |
(167,250 |
) |
|
$ |
(17,492 |
) |
|
|
|
|
|
|
|
|
|
Net loss per share - basic and
diluted |
|
$ |
(2.10 |
) |
|
$ |
(0.23 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number of
shares of common stock used in computing basic and diluted net loss
per share |
|
|
79,454 |
|
|
|
76,432 |
|
Sarepta Therapeutics, Inc. |
|
Reconciliation of GAAP Financial Measures to Non-GAAP Financial
Measures |
|
(unaudited, in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months EndedMarch
31, |
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
GAAP net loss |
|
$ |
(167,250 |
) |
|
$ |
(17,492 |
) |
Interest expense, net |
|
|
15,456 |
|
|
|
8,512 |
|
Income tax (benefit) expense |
|
|
(143 |
) |
|
|
115 |
|
Gain from sale of Priority Review Voucher |
|
|
— |
|
|
|
(108,069 |
) |
Collaboration revenue |
|
|
(22,005 |
) |
|
|
(13,226 |
) |
Depreciation and amortization expense |
|
|
8,930 |
|
|
|
6,529 |
|
Stock-based compensation expense |
|
|
28,508 |
|
|
|
24,024 |
|
Roche transaction costs |
|
|
— |
|
|
|
11,292 |
|
Up-front, milestone, and other expenses |
|
|
4,000 |
|
|
|
8,533 |
|
Settlement and license charges |
|
|
10,000 |
|
|
|
— |
|
Non-GAAP net loss |
|
$ |
(122,504 |
) |
|
$ |
(79,782 |
) |
|
|
|
|
|
|
|
|
|
Non-GAAP net loss per
share: |
|
|
|
|
|
|
|
|
Basic and diluted |
|
$ |
(1.54 |
) |
|
$ |
(1.04 |
) |
|
|
|
|
|
|
|
|
|
Weighted average number of
shares of common stock used in computing basic and diluted net loss
per share |
|
|
79,454 |
|
|
|
76,432 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months EndedMarch
31, |
|
|
|
|
2021 |
|
|
|
2020 |
|
GAAP research and development
expenses |
|
$ |
195,149 |
|
|
$ |
136,144 |
|
Up-front, milestone, and other expenses |
|
|
(4,000 |
) |
|
|
(8,533 |
) |
Stock-based compensation expense |
|
|
(11,126 |
) |
|
|
(9,249 |
) |
Depreciation and amortization expense |
|
|
(6,538 |
) |
|
|
(4,177 |
) |
Non-GAAP research and
development expenses |
|
$ |
173,485 |
|
|
$ |
114,185 |
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months EndedMarch
31, |
|
|
|
|
2021 |
|
|
|
2020 |
|
GAAP selling, general and
administrative expenses |
|
$ |
71,131 |
|
|
$ |
82,768 |
|
Stock-based compensation expense |
|
|
(17,382 |
) |
|
|
(14,775 |
) |
Depreciation and amortization expense |
|
|
(2,222 |
) |
|
|
(2,186 |
) |
Roche transaction costs |
|
|
— |
|
|
|
(11,292 |
) |
Non-GAAP selling, general and
administrative expenses |
|
$ |
51,527 |
|
|
$ |
54,515 |
|
Sarepta Therapeutics, Inc.Condensed Consolidated
Balance Sheets(unaudited, in thousands, except share and per share
data)
|
|
As ofMarch 31, 2021 |
|
|
As ofDecember 31, 2020 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,481,836 |
|
|
$ |
1,502,648 |
|
Short-term investments |
|
|
255,997 |
|
|
|
435,923 |
|
Accounts receivable |
|
|
118,203 |
|
|
|
101,340 |
|
Inventory |
|
|
240,333 |
|
|
|
231,961 |
|
Other current assets |
|
|
174,981 |
|
|
|
213,324 |
|
Total current assets |
|
|
2,271,350 |
|
|
|
2,485,196 |
|
Property and equipment,
net |
|
|
203,107 |
|
|
|
190,430 |
|
Intangible assets, net |
|
|
14,124 |
|
|
|
13,628 |
|
Right of use assets |
|
|
65,068 |
|
|
|
91,761 |
|
Other non-current assets |
|
|
211,584 |
|
|
|
203,703 |
|
Total assets |
|
$ |
2,765,233 |
|
|
$ |
2,984,718 |
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
76,651 |
|
|
$ |
111,090 |
|
Accrued expenses |
|
|
180,636 |
|
|
|
193,553 |
|
Deferred revenue, current portion |
|
|
89,244 |
|
|
|
89,244 |
|
Other current liabilities |
|
|
18,205 |
|
|
|
22,139 |
|
Total current liabilities |
|
|
364,736 |
|
|
|
416,026 |
|
Long-term debt |
|
|
1,091,110 |
|
|
|
992,493 |
|
Lease liabilities, net of
current portion |
|
|
60,675 |
|
|
|
80,367 |
|
Deferred revenue, net of
current portion |
|
|
641,483 |
|
|
|
663,488 |
|
Contingent consideration |
|
|
50,800 |
|
|
|
50,800 |
|
Other non-current
liabilities |
|
|
20,984 |
|
|
|
19,785 |
|
Total liabilities |
|
|
2,229,788 |
|
|
|
2,222,959 |
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock, $0.0001 par
value, 3,333,333 shares authorized;
none issued and
outstanding |
|
|
— |
|
|
|
— |
|
Common stock, $0.0001 par
value, 198,000,000 shares authorized; 79,748,109 and 79,374,247
issued and outstanding at March 31,
2021, and December 31, 2020,
respectively |
|
|
8 |
|
|
|
8 |
|
Additional paid-in
capital |
|
|
3,490,658 |
|
|
|
3,609,877 |
|
Accumulated other
comprehensive (loss) income, net of tax |
|
|
(3 |
) |
|
|
3 |
|
Accumulated deficit |
|
|
(2,955,218 |
) |
|
|
(2,848,129 |
) |
Total stockholders’ equity |
|
|
535,445 |
|
|
|
761,759 |
|
Total liabilities and stockholders’ equity |
|
$ |
2,765,233 |
|
|
$ |
2,984,718 |
|
Source: Sarepta Therapeutics, Inc.
Investor Contact: Ian Estepan,
617-274-4052iestepan@sarepta.com
Media Contact: Tracy Sorrentino,
617-301-8566tsorrentino@sarepta.com
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