TCR2 Therapeutics Inc. (Nasdaq: TCRR), a clinical-stage cell
therapy company with a pipeline of novel T cell therapies for
patients suffering from cancer, today announced financial results
for the second quarter ended June 30, 2021 and provided a corporate
update.
“As we enter the second half of the year, we are
approaching the conclusion of the Phase 1 portion of our gavo-cel
clinical trial and selection of an RP2D. We look forward to
presenting safety, efficacy and translational data from at least 17
patients, up to dose level 5, in an oral presentation at the
European Society of Medical Oncology Congress on September 17,”
said Garry Menzel, Ph.D., President and Chief Executive Officer of
TCR2 Therapeutics. “We believe that gavo-cel has the potential
to significantly improve the standard of care for patients with
treatment refractory mesothelin-expressing solid tumors. We are
focused on identifying the RP2D before the end of 2021 to advance
this program into Phase 2 where we can more definitively evaluate
efficacy, including retreatment with gavo-cel and combinations with
checkpoint inhibitors. We also remain committed to advancing our
broad emerging pipeline, including new enhancements, allogeneic
TRuC-T cells and new targets and look forward to showcasing these
programs at our upcoming virtual R&D Day.”
Recent Developments
Gavo-cel:
- TCR2 announced today the Company
plans to present new clinical data from the dose escalation portion
of the Phase 1/2 clinical trial of gavo-cel in patients with
treatment refractory mesothelin-expressing solid tumors as part of
an oral presentation on September 17 at 14:20 CEST (8:20am EST) at
the European Society for Medical Oncology (ESMO) Congress 2021
being held in-person from September 16-21, 2021. The presentation
will include long-term follow-up from initial and new patients from
the Phase 1 dose escalation, with data from additional
non-mesothelioma patients, and will focus on safety, efficacy and
translational data at dose levels 3 (1x108 cells/m2 with
lymphodepletion), 4 (5x108 cells/m2 without lymphodepletion) and 5
(5x108 cells/m2 with lymphodepletion).
Corporate:
- TCR2 announced today that it will
host a virtual R&D Day on Wednesday, October 20, 2021 to
showcase the broad emerging pipeline focusing on its enhancements,
allogeneic strategies and new targets.
- TCR2 announced the appointment of
Peter Olagunju as its first Chief Technical Officer where he will
oversee process development, manufacturing, quality control and
technical operations for the Company’s TRuC-T cell programs and
emerging pipeline. Previously, Mr. Olagunju was Senior Vice
President of Technical Operations at FerGene, Inc. Before that, Mr.
Olagunju was Vice President of Global Patient Operations at
bluebird bio, Inc., where he held several roles of increasing
responsibility and was the program lead and functional head of
manufacturing supporting the European approval for ZYNTEGLO®, a
transformational gene therapy for Transfusion dependent
Thalassemia.
Anticipated Milestones
- TCR2 to highlight interim progress
from the Phase 1 portion of the gavo-cel Phase 1/2 clinical trial
for patients with mesothelin-expressing solid tumors in an abstract
at the 2021 World Conference on Lung Cancer.
- TCR2 to highlight additional
safety, efficacy and translational data from all patients receiving
therapy up to dose level 5 (second and third gavo-cel doses) in the
Phase 1 portion of the gavo-cel Phase 1/2 clinical trial focused on
mesothelin-expressing solid tumors in an oral presentation at the
ESMO Congress 2021.
- TCR2 to present an interim update
from the Phase 1 portion of the TC-110 Phase 1/2 clinical trial for
patients with CD19+ non-Hodgkin lymphoma or adult acute
lymphoblastic leukemia in the second half of 2021.
- TCR2 plans to file an IND for
TC-510, the first enhanced TRuC-T cell (targeting mesothelin with a
PD-1:CD28 switch), in the second half of 2021.
- TCR2 plans to select a development
candidate for its allogeneic program in the second half of
2021.
- TCR2 to present preclinical data on
its IL-15 enhancements program in the fourth quarter of 2021.
- TCR2 to host virtual R&D Day
focused on the broad emerging pipeline on October 20, 2021.
- TCR2 anticipates production of
clinical trial material from ElevateBio LLC and its manufacturing
facility in Stevenage, UK, both in anticipation of demand from the
Phase 2 expansion trial of gavo-cel, in 2022.
Financial Highlights
- Cash Position:
TCR2 ended the second quarter of 2021 with $317.3 million in cash,
cash equivalents, and investments compared to $228.0 million as of
December 31, 2020. Net cash used in operations was $15.0 million
for the second quarter of 2021 compared to $16.0 million for the
second quarter of 2020. TCR2 projects net cash use of $100-110
million for 2021, which includes tenant improvements to the
Rockville facility. We expect cash on hand to support operations
through 2023.
- R&D Expenses:
Research and development expenses were $18.6 million for the second
quarter of 2021 compared to $12.9 million for the second quarter of
2020. The increase in R&D expenses was primarily due to an
increase in headcount, additional lab facilities, and manufacturing
facilities.
- G&A Expenses:
General and administrative expenses were $5.7 million for the
second quarter of 2021 compared to $3.8 million for the second
quarter of 2020. The increase in general and administrative
expenses was primarily due to an increase in personnel costs and
external professional fees.
- Net Loss: Net loss
was $24.3 million for the second quarter of 2021 compared to $16.2
million for the second quarter of 2020.
Adoption of New Lease
Standard
During the second quarter of 2021, TCR2 adopted
the new lease standard ASC 842 effective January 1, 2021. The lease
standard requires companies to record right-of-use assets and lease
liabilities for all leases. With the adoption of the new lease
standard, the Company removed its facility in Rockville, MD as an
asset under a built-to-suit lease in the amount of $41 million and
removed the associated liabilities of $37 million. As of June 30,
2021, the Company’s right-of-use assets under operating leases,
including the Rockville facility, were $30.6 million and operating
lease liabilities were $27.6 million.
Upcoming Events
TCR2 Therapeutics management is scheduled to
participate at the following upcoming conferences.
- 2021 Wedbush PacGrow Healthcare
Conference: Robert Hofmeister, Ph.D., Chief Scientific Officer of
TCR2 Therapeutics, will participate in a panel using a virtual
platform on Tuesday, August 10, 2021 at 9:45am ET
About TCR2
Therapeutics
TCR2 Therapeutics Inc. is a
clinical-stage cell therapy company developing a pipeline of novel
T cell therapies for patients suffering from
cancer. TCR2’s proprietary T cell receptor (TCR) Fusion
Construct T cells (TRuC®-T cells) specifically recognize and
kill cancer cells by harnessing signaling from the entire TCR,
independent of human leukocyte antigens (HLA). In preclinical
studies, TRuC-T cells have demonstrated superior anti-tumor
activity compared to chimeric antigen receptor T cells (CAR-T
cells), while secreting lower levels of cytokine release. The
Company’s lead TRuC-T cell product candidate targeting solid
tumors, gavo-cel, is currently being studied in a Phase 1/2
clinical trial to treat patients with mesothelin-positive non-small
cell lung cancer (NSCLC), ovarian cancer, malignant
pleural/peritoneal mesothelioma, and cholangiocarcinoma. The
Company’s lead TRuC-T cell product candidate targeting
hematological malignancies, TC-110, is currently being studied in a
Phase 1/2 clinical trial to treat patients with CD19-positive adult
acute lymphoblastic leukemia (aALL) and with aggressive or indolent
non-Hodgkin lymphoma (NHL). For more information about TCR2, please
visit www.tcr2.com.
Forward-looking Statements
This press release contains forward-looking
statements and information within the meaning of the Private
Securities Litigation Reform Act of 1995 and other federal
securities laws. The use of words such as "may," "will," "could",
"should," "expects," "intends," "plans," "anticipates," "believes,"
"estimates," "predicts," "projects," "seeks," "endeavor,"
"potential," "continue" or the negative of such words or other
similar expressions can be used to identify forward-looking
statements. These forward-looking statements include, but are not
limited to, express or implied statements regarding the therapeutic
potential of gavo-cel, timing of updates for the gavo-cel and
TC-110 clinical trials, expectations with respect to timing of our
IND submission for TC-510, expectations regarding preclinical data
for our emerging pipeline and enhancements, timing for the
certification of operation of our manufacturing facilities in
Stevenage, UK and Rockville, MD, increased manufacturing capacity
and technical capabilities, including through our manufacturing
partnership with ElevateBio, LLC, increased clinical trial demand,
future IND filings and clinical development plans, the development
of the Company’s TRuC-T cells, their potential characteristics,
applications and clinical utility, and the potential therapeutic
applications of the Company’s TRuC-T cell platform.
The expressed or implied forward-looking
statements included in this press release are only predictions and
are subject to a number of risks, uncertainties and assumptions,
including, without limitation: uncertainties inherent in clinical
studies and in the availability and timing of data from ongoing
clinical studies; whether interim results from a clinical trial
will be predictive of the final results of the trial; whether
results from preclinical studies or earlier clinical studies will
be predictive of the results of future trials; the expected timing
of submissions for regulatory approval or review by governmental
authorities, including review under accelerated approval processes;
orphan drug designation eligibility; regulatory approvals to
conduct trials or to market products; TCR2’s ability to maintain
sufficient manufacturing capabilities to support its research,
development and commercialization efforts, including TCR2’s ability
to secure additional manufacturing facilities; whether TCR2's cash
resources will be sufficient to fund TCR2's foreseeable and
unforeseeable operating expenses and capital expenditure
requirements, the impact of the COVID-19 pandemic on TCR2’s ongoing
operations; and other risks set forth under the caption "Risk
Factors" in TCR2’s most recent Annual Report on Form 10-K, most
recent Quarterly Report on Form 10-Q and its other filings with
the Securities and Exchange Commission. In light of these
risks, uncertainties and assumptions, the forward-looking events
and circumstances discussed in this press release may not occur and
actual results could differ materially and adversely from those
anticipated or implied in the forward-looking statements. You
should not rely upon forward-looking statements as predictions of
future events. Although TCR2 believes that the expectations
reflected in the forward-looking statements are reasonable, it
cannot guarantee that the future results, levels of activity,
performance or events and circumstances reflected in the
forward-looking statements will be achieved or occur.
Moreover, except as required by law, neither
TCR2 nor any other person assumes responsibility for the
accuracy and completeness of the forward-looking statements
included in this press release. Any forward-looking statement
included in this press release speaks only as of the date on which
it was made. We undertake no obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise, except as required by
law.
Investor and Media Contact:
Carl Mauch Director, Investor Relations and Corporate
Communications (617) 949-5667 carl.mauch@tcr2.com
TCR2
THERAPEUTICS INC. UNAUDITED CONSOLIDATED
BALANCE SHEETS (amounts in thousands, except share
data)
|
June 30, 2021 |
|
|
December 31, 2020 |
|
Assets |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
248,793 |
|
|
$ |
94,155 |
|
Investments |
|
68,553 |
|
|
|
133,831 |
|
Prepaid expenses and other current assets |
|
7,882 |
|
|
|
7,552 |
|
Total current assets |
|
325,228 |
|
|
|
235,538 |
|
|
|
|
|
|
|
Property and equipment, net |
|
10,722 |
|
|
|
10,013 |
|
Right-of-use assets, operating leases |
|
30,559 |
|
|
|
- |
|
Restricted cash |
|
1,141 |
|
|
|
583 |
|
Other assets, non-current |
|
490 |
|
|
|
61 |
|
Total assets |
$ |
368,140 |
|
|
$ |
246,195 |
|
|
|
|
|
|
|
Liabilities and stockholders’ equity |
|
|
|
|
|
Accounts payable |
$ |
4,819 |
|
|
$ |
2,448 |
|
Accrued expenses and other current liabilities |
|
6,533 |
|
|
|
6,392 |
|
Operating lease liabilities |
|
3,594 |
|
|
|
- |
|
Total current liabilities |
|
14,946 |
|
|
|
8,840 |
|
|
|
|
|
|
|
Operating lease liabilities, non-current |
|
24,046 |
|
|
|
- |
|
Other liabilities |
|
257 |
|
|
|
807 |
|
Total liabilities |
|
39,249 |
|
|
|
9,647 |
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
Common stock, $0.0001 par value; 150,000,000 shares authorized;
38,181,331 and 33,516,795 shares issued and outstanding as of June
30, 2021 and December 31, 2020, respectively. |
|
4 |
|
|
|
3 |
|
Additional paid-in capital |
|
624,445 |
|
|
|
486,197 |
|
Accumulated other comprehensive income |
|
(19 |
) |
|
|
63 |
|
Accumulated deficit |
|
(295,539 |
) |
|
|
(249,715 |
) |
Total stockholders’ equity |
|
328,891 |
|
|
|
236,548 |
|
Total liabilities and stockholders’ equity |
$ |
368,140 |
|
|
$ |
246,195 |
|
|
|
|
|
|
|
|
|
TCR2
THERAPEUTICS INC. UNAUDITED CONSOLIDATED
STATEMENTS OF OPERATIONS (amounts in thousands, except
share and per share data)
|
|
Three Months Ended
June 30, |
|
|
Six Months Ended
June 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
$ |
18,627 |
|
|
$ |
12,907 |
|
|
$ |
34,551 |
|
|
$ |
24,862 |
|
General and administrative |
|
|
5,666 |
|
|
|
3,809 |
|
|
|
11,334 |
|
|
|
8,080 |
|
Total operating expenses |
|
|
24,293 |
|
|
|
16,716 |
|
|
|
45,885 |
|
|
|
32,942 |
|
Loss from operations |
|
|
(24,293 |
) |
|
|
(16,716 |
) |
|
|
(45,885 |
) |
|
|
(32,942 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net |
|
|
32 |
|
|
|
499 |
|
|
|
148 |
|
|
|
1,246 |
|
Loss before income tax expense |
|
|
(24,261 |
) |
|
|
(16,217 |
) |
|
|
(45,737 |
) |
|
|
(31,696 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
51 |
|
|
|
28 |
|
|
|
87 |
|
|
|
55 |
|
Net loss |
|
$ |
(24,312 |
) |
|
$ |
(16,245 |
) |
|
$ |
(45,824 |
) |
|
$ |
(31,751 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share information |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share of common stock, basic and diluted |
|
$ |
(0.64 |
) |
|
$ |
(0.67 |
) |
|
$ |
(1.22 |
) |
|
$ |
(1.32 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding, basic and diluted |
|
|
38,176,025 |
|
|
|
24,075,984 |
|
|
|
37,622,390 |
|
|
|
24,043,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TCR2
THERAPEUTICS INC. UNAUDITED CONSOLIDATED
STATEMENTS OF CASH FLOWS (amounts in thousands)
|
Six Months Ended June 30, |
|
|
2021 |
|
|
2020 |
|
Operating activities |
|
|
|
|
|
Net loss |
$ |
(45,824 |
) |
|
$ |
(31,751 |
) |
Adjustments to reconcile net loss to cash used in operating
activities: |
|
|
|
|
|
Depreciation and amortization |
|
1,203 |
|
|
|
673 |
|
Stock-based compensation expense |
|
6,339 |
|
|
|
4,119 |
|
Accretion on investments |
|
417 |
|
|
|
(392 |
) |
Deferred tax liabilities |
|
63 |
|
|
|
- |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
Prepaid expenses and other current assets |
|
(490 |
) |
|
|
(3,512 |
) |
Operating leases, net |
|
(3,415 |
) |
|
|
- |
|
Accounts payable |
|
2,587 |
|
|
|
29 |
|
Accrued expenses and other liabilities |
|
178 |
|
|
|
(1,587 |
) |
Cash used in operating activities |
|
(38,942 |
) |
|
|
(32,421 |
) |
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
Purchases of equipment |
|
(2,184 |
) |
|
|
(1,229 |
) |
Software development costs |
|
(128 |
) |
|
|
- |
|
Purchases of investments |
|
(40,732 |
) |
|
|
(63,005 |
) |
Proceeds from sale or maturity of investments |
|
105,518 |
|
|
|
80,975 |
|
Cash provided by investing activities |
|
62,474 |
|
|
|
16,741 |
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
Proceeds from public offering of common stock, net of issuance
costs |
|
131,330 |
|
|
|
- |
|
Proceeds from the exercise of stock options |
|
580 |
|
|
|
310 |
|
Payment of deferred offering costs |
|
(246 |
) |
|
|
(231 |
) |
Cash provided by financing activities |
|
131,664 |
|
|
|
79 |
|
|
|
|
|
|
|
Net change in cash, cash equivalents, and restricted
cash |
|
155,196 |
|
|
|
(15,601 |
) |
Cash, cash equivalents, and restricted cash at beginning of
year |
|
94,738 |
|
|
|
65,713 |
|
Cash, cash equivalents, and restricted cash at end of
period |
$ |
249,934 |
|
|
$ |
50,112 |
|
|
|
|
|
|
|
Supplemental disclosure of noncash activities |
|
|
|
|
|
Property and equipment additions in accounts payable |
$ |
395 |
|
|
$ |
745 |
|
Right-of-use assets obtained in exchange for operating lease
liabilities |
|
21,241 |
|
|
|
- |
|
Operating cash flows used in operating leases |
|
6,379 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
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