Trillium Therapeutics Reports First Quarter 2020 Financial and Operating Results
May 15 2020 - 5:00PM
Trillium Therapeutics Inc. (“Trillium” or the “Company”)
(NASDAQ/TSX: TRIL), a clinical stage immuno-oncology
company developing innovative therapies for the treatment of
cancer, today reported financial and operating results for the
three months ended March 31, 2020.
“We had another strong quarter and are off to a
great start in 2020,” said Jan Skvarka, Trillium’s President and
Chief Executive Officer. “We reported encouraging data for our
novel CD47 checkpoint inhibitors TTI-621 and TTI-622, raised $117
million in funding from leading healthcare investors, and made
substantial progress by advancing our ongoing TTI-621 and TTI-622
dose escalation studies. At the same time, the first quarter
presented its own unique challenges as we navigated the COVID-19
pandemic. In spite of these challenges, we continue to execute on
our key strategic objectives, and all employees remain healthy and
safe. We continue to benefit from the restructuring of the
Company’s footprint and resetting of our strategy in 2019.”
First Quarter 2020 Business
Highlights:
COVID-19 Pandemic and Business Continuity
- In March, Trillium instituted a no-travel and work-from-home
policy for all employees, with certain exceptions for lab personnel
who analyze perishable patient samples from ongoing clinical
studies.
- Clinical development studies are ongoing and all active
patients are continuing on treatment. Enrollment remains open,
although the pace of enrollment is expected to be slower for an
uncertain period due to COVID-19 related restrictions and patient
risks.
- Trillium has sufficient drug supply inventory to complete its
ongoing dose escalation studies. The Company has not experienced
any disruptions in its drug supply chain to date, but is monitoring
closely.
Clinical Development
- On January 7, Trillium provided a data update on the ongoing
dose escalation studies. The data confirmed TTI-621’s unique
monotherapy activity, as well as TTI-622’s strong safety
profile.
- Dose escalation for TTI-621 is ongoing and the study is
currently enrolling patients in the 1.4 mg/kg cohort. This dosing
level represents seven times the dose level (0.2 mg/kg) at which
initial signal of single agent activity was observed.
- The TTI-622 dose escalation study is currently dosing at 8.0
mg/kg. An update of this study will be presented by Dr. Krish Patel
of Swedish Cancer Institute on behalf of the study investigators at
the “Developmental Therapeutics-Immunotherapy” session of the
ASCO20 Virtual Scientific Program being held on May 29-31.
Fundraising and Cash Available
- On January 28, Trillium closed a public offering for gross
proceeds of $117 million.
- As of March 31, 2020, the Company had $135 million in cash,
cash equivalents and marketable securities, which provides a cash
runway into 2022.
First Quarter 2020 Financial
Results:As of March 31, 2020, Trillium had cash and cash
equivalents and marketable securities, and working capital of
$135.1 million and $115.2 million, respectively, compared to $22.7
million and $9.8 million, respectively at December 31, 2019. The
increase in cash and cash equivalents and marketable securities,
and the increase in working capital were due mainly to proceeds
from the underwritten public offering completed in January 2020 and
exercise of warrants.
Net loss for the three months ended March 31,
2020 of $70.1 million was higher than the loss of $8.0 million for
the three months ended March 31, 2019, due mainly to revaluation
losses recorded on the warrant liability and deferred share unit
(“DSU”) liability of $55.2 million and $9.3 million respectively,
as a result of a higher common share price at March 31, 2020 than
at December 31, 2019. In the prior year period, recoveries of
$0.5 million and $0.4 million were recorded relating to the fair
valuation of the warrant liability and DSU liability, respectively.
The revaluation losses in the current period were partially offset
by lower clinical trial, manufacturing, intangible assets
amortization, share-based compensation, and salary expenses, as
well as a lower net foreign currency loss.
Trillium’s outstanding warrants are a non-cash
liability, and revaluation losses on the Company’s warrant
liability balance are of a non-cash nature. The current DSU plan
allows for only cash-settlement of DSUs that are redeemed by
directors when their service ends with the Company. To conserve the
use of cash for operations, the board of directors has approved the
2020 Omnibus Incentive Plan that provides for equity settlement of
DSUs and all directors have agreed to have their existing DSUs
administered under the terms of the new plan. Accordingly, all
outstanding DSUs issued for director compensation will become
equity-settled and classified as equity instead of as a liability,
subject to shareholder approval of the 2020 Omnibus Incentive Plan
at the Annual General and Special Meeting to be held on June 30,
2020.
Selected Consolidated Financial
Information:
Consolidated statements of loss and
comprehensive loss |
Amounts in thousands of US dollars except per share amounts |
Three months
ended March 31, 2020 |
Three months
ended March 31, 2019 |
Research and development expenses |
$4,369 |
$7,588 |
General and administrative expenses |
|
10,796 |
|
631 |
Net finance costs
(income) |
|
54,881 |
|
(192) |
Income tax expense |
|
23 |
|
2 |
Net loss and comprehensive
loss for the period |
|
70,069 |
|
8,029 |
Basic and diluted loss per
common share |
|
1.07 |
|
0.46 |
Consolidated statements of financial
position |
Amounts in thousands of US dollars |
As at March
31, 2020 |
As at December
31, 2019 |
Cash and marketable securities |
$135,057 |
$22,666 |
Total assets |
|
139,904 |
|
25,407 |
Total equity (deficiency) |
|
84,117 |
|
(168) |
About Trillium Therapeutics
Trillium is an immuno-oncology company
developing innovative therapies for the treatment of cancer. The
company’s two clinical programs, TTI-621 and TTI-622, target
CD47, a “do not eat” signal that cancer cells frequently use to
evade the immune system.
For more information visit:
www.trilliumtherapeutics.com
Caution Regarding Forward-Looking
Information
This press release contains forward-looking
statements within the meaning of applicable United States
securities laws and forward-looking information within the meaning
of Canadian securities laws (collectively, "forward-looking
statements"). Forward-looking statements in this press release
include statements about, without limitation, our expectations for
the conversion of cash-settled DSUs to equity-settled DSUs, the
timing of our expected information updates and our statements with
respect to continuity plans and preparedness measures we have
implemented in response to COVID-19 and its expected impact on our
business, operations, cash balance and cash runway and clinical
results. With respect to the forward-looking statements contained
in this press release, Trillium has made numerous assumptions
regarding, among other things: the effectiveness and timeliness of
preclinical and clinical trials; and the completeness, accuracy and
usefulness of the data. While Trillium considers these assumptions
to be reasonable, these assumptions are inherently subject to
significant scientific, business, economic, competitive, market and
social uncertainties and contingencies. Additionally, there are
known and unknown risk factors that could cause Trillium's actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements contained in this press
release. A discussion of risks and uncertainties facing Trillium
appears in Trillium's Annual Information Form for the year ended
December 31, 2019 filed with Canadian securities authorities and on
Form 40-F with the U.S. Securities Exchange Commission, each as
updated by Trillium's continuous disclosure filings, which are
available at www.sedar.com and at www.sec.gov. All
forward-looking statements herein are qualified in their entirety
by this cautionary statement, and Trillium disclaims any obligation
to revise or update any such forward-looking statements or to
publicly announce the result of any revisions to any of the
forward-looking statements contained herein to reflect future
results, events or developments, except as required by law.
Investor Relations:James
ParsonsChief Financial OfficerTrillium Therapeutics Inc.
416-595-0627 x232james@trilliumtherapeutics.com
www.trilliumtherapeutics.com
Media Relations:Mike Beyer Sam
Brown Inc. 312-961-2502mikebeyer@sambrown.com
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