AUSTIN, Texas, March 18, 2021 (GLOBE NEWSWIRE) — Molecular Templates, Inc. (Nasdaq: MTEM, “Molecular Templates,” or “MTEM”), a clinical-stage biopharmaceutical company focused on the discovery and development of proprietary targeted biologic therapeutics, engineered toxin bodies (ETBs), today reported financial results for the fourth quarter of 2020.
“In 2020 and early 2021, we made important progress by advancing our pipeline programs, establishing a new collaboration with a premier oncology partner, and strengthening our balance sheet with a successful equity financing,” said Eric Poma, Ph.D., Molecular Templates’ Chief Executive and Scientific Officer. “We now have four clinical stage programs: MT-5111 targeting HER2, TAK-169 targeting CD38 in co-development with Takeda, MT-6402 with antigen seeding targeting PD-L1, and MT-3724, for which we are working to resolve the FDA partial clinical hold. We expect to generate clinical data from multiple programs and advance our earlier stage programs in 2021, including filing an IND for an ETB targeting CTLA-4, preclinical data presentations on ETBs against new targets, and continued progress in our collaborations with Bristol Myers Squibb, Vertex, and Takeda.”
Company Highlights and Upcoming Milestones
Corporate
MT-5111 (HER2 ETB)
TAK-169 (CD38 ETB)
MT-6402 (PD-L1 ETB with antigen seeding)
MT-3724 (CD20 ETB)
Research
Financial Results
The net loss attributable to common shareholders for the fourth quarter of 2020 was $28.4 million, or $0.57 per basic and diluted share. This compares with a net loss attributable to common shareholders of $15.9 million, or $0.41 per basic and diluted share, for the same period in 2019.
Revenues for the fourth quarter of 2020 were $3.5 million, compared to $6.2 million for the same period in 2019. Revenues for the fourth quarter of 2020 were comprised of revenues from collaborative research and development agreements with Takeda and Vertex. Total research and development expenses for the fourth quarter of 2020 were $22.3 million, compared with $16.6 million for the same period in 2019. Total general and administrative expenses for the fourth quarter of 2020 were $7.1 million, compared with $6.0 million for the same period in 2019.
As of December 31, 2020, MTEM’s cash and investments totaled $93.9 million. With the addition of the $70 million upfront payment from Bristol Myers Squibb received in 1Q21 and the proceeds of the public equity offering completed in February 2021, MTEM’s current cash and investments are expected to fund operations into the second half of 2023.
About Molecular Templates
Molecular Templates is a clinical-stage company focused on the discovery and development of targeted biologic therapeutics. Our proprietary drug platform technology, known as engineered toxin bodies, or ETBs, leverages the resident biology of a genetically engineered form of Shiga-like Toxin A subunit to create novel therapies with potent and differentiated mechanisms of action for cancer and other serious diseases.
Forward-Looking Statements
This press release contains forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 (the “Act”). Molecular Templates disclaims any intent or obligation to update these forward-looking statements, and claims the protection of the Act’s Safe Harbor for forward-looking statements. All statements, other than statements of historical facts, included in this press release regarding strategy, future operations, future financial position, future revenue, projected expenses, prospects, plans and objectives of management are forward-looking statements. In addition, when or if used in this press release, the words “may,” “could,” “should,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “predict” and similar expressions and their variants, as they relate to Molecular Templates may identify forward-looking statements. Examples of such statements include, but are not limited to, statements relating to the potential lifting of the partial clinical hold on Molecular Templates’ MT-3724 clinical trials; our investigation into MT-3724 product attributes and potential plans for our MT-3724 studies; statements regarding the safety or potential efficacy of Molecular Templates’ drug or biologic candidates; statements relating to the development of MT-3724, MT-5111, TAK-169, and MT-6402; the expected timing of submitting various IND applications and conducting studies and generating data; the expected participation and presentation at upcoming conferences; the anticipated effects of the COVID-19 pandemic on Molecular Templates’ ongoing clinical studies, manufacturing and preclinical development; and Molecular Templates’ belief that its proprietary biologic drug platform technology, or ETBs, provides for a differentiated mechanism of action that may address some of the limitations associated with currently available cancer therapeutics.
Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual events or results may differ materially from those discussed in the forward-looking statements as a result of various factors including, but not limited to, Molecular Templates’ ability to satisfactorily respond to requests from the FDA for further information and data regarding MT-3724 on the timeline expected or at all; successfully resolve the partial clinical hold with regard to MT-3724; the uncertainties inherent in the preclinical and clinical development process; whether Molecular Templates’ cash resources will be sufficient to fund its continuing operations for the periods and/or trials anticipated; the ability of Molecular Templates’ to protect its intellectual property rights; risks from global pandemics including COVID-19; and legislative, regulatory, political and economic developments, as well as those risks identified under the heading “Risk Factors” in Molecular Templates’ filings with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof, and Molecular Templates specifically disclaims any obligation to update any forward-looking statement, whether because of new information, future events or otherwise.
Contact:
Adam Cutler
Chief Financial Officer
adam.cutler@mtem.com
862-204-4006
Molecular Templates, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Research and development revenue – from related party | $ | 1,605 | $ | 4,688 | $ | 6,567 | $ | 19,499 | |||||||
Research and development revenue – other | 1,892 | — | 9,068 | — | |||||||||||
Grant revenue | — | 1,509 | 3,210 | 2,771 | |||||||||||
Total revenue | 3,497 | 6,197 | 18,845 | 22,270 | |||||||||||
Operating expenses: | — | ||||||||||||||
Research and development | 22,298 | 16,573 | 92,965 | 50,519 | |||||||||||
General and administrative | 7,116 | 6,028 | 26,722 | 20,077 | |||||||||||
Loss on impairment of in-process research and development | — | — | — | 22,123 | |||||||||||
Total operating expenses | 29,414 | 22,601 | 119,687 | 92,719 | |||||||||||
Loss from operations | 25,917 | 16,404 | 100,842 | 70,449 | |||||||||||
Interest and other income, net | 103 | 873 | 1,028 | 2,323 | |||||||||||
Interest and other expense, net | (476 | ) | (351 | ) | (1,705 | ) | (1,298 | ) | |||||||
Loss on Extinguishment of Debt | — | — | (1,237 | ) | — | ||||||||||
Loss on disposal of assets | (2,155 | ) | — | (2,155 | ) | — | |||||||||
Change in fair value of warrant liabilities | — | — | — | 3 | |||||||||||
Loss before provision (benefit) for income taxes | 28,445 | 15,882 | 104,911 | 69,421 | |||||||||||
Provision for income taxes | — | — | 5 | — | |||||||||||
Net loss attributable to common shareholders | 28,445 | 15,882 | 104,916 | 69,421 | |||||||||||
Net loss per share attributable to common shareholders: | |||||||||||||||
Basic and diluted | $ | 0.57 | $ | 0.41 | $ | 2.20 | $ | 1.86 | |||||||
Weighted average number of shares used in net loss per share calculations: | |||||||||||||||
Basic and diluted | 49,970,514 | 40,552,083 | 47,603,261 | 37,770,378 |
Molecular Templates, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
December 31, 2020 |
December 31, 2019 |
|||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 25,218 | $ | 85,451 | ||||
Marketable securities, current | 68,667 | 39,633 | ||||||
Prepaid expenses | 6,080 | 2,318 | ||||||
Grants revenue receivable | — | 7,100 | ||||||
Accounts receivable, related party | 234 | 408 | ||||||
In-process research and development – held for sale | — | 4,500 | ||||||
Other current assets | 1,125 | 489 | ||||||
Total current assets | 101,324 | 139,899 | ||||||
Marketable securities, non-current | — | 1,510 | ||||||
Operating lease right-of-use assets | 11,104 | 9,959 | ||||||
Property and equipment, net | 22,254 | 18,158 | ||||||
Other assets | 5,195 | 4,676 | ||||||
Total assets | $ | 139,877 | $ | 174,202 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,350 | $ | 1,465 | ||||
Accrued liabilities | 12,575 | 14,544 | ||||||
Deferred revenue, current | 14,014 | 8,511 | ||||||
Deferred revenue, current, related party | 789 | 8,780 | ||||||
Other current liabilities, related party | 5,614 | — | ||||||
Other current liabilities | 2,211 | 2,501 | ||||||
Total current liabilities | 37,553 | 35,801 | ||||||
Deferred revenue, long-term | 4,538 | 18,944 | ||||||
Deferred revenue, long-term, related party | 3,106 | 441 | ||||||
Long-term debt, net | 14,926 | 2,940 | ||||||
Operating lease liabilities | 12,213 | 11,682 | ||||||
Other liabilities, related party | 6,711 | — | ||||||
Other liabilities | 1,490 | 1,366 | ||||||
Total liabilities | 80,537 | 71,174 | ||||||
Commitments and contingencies (Note 10) | ||||||||
Stockholders’ equity | ||||||||
Preferred stock, $0.001 par value: | ||||||||
Authorized: 2,000,000 shares at December 31, 2020 and | ||||||||
December 31, 2019; issued and outstanding: 250 shares at December 31, 2020 and December 31, 2019 |
— | — | ||||||
Common stock, $0.001 par value: | ||||||||
Authorized: 150,000,000 shares at December 31, 2020 and | ||||||||
December 31, 2019; issued and outstanding: 49,984,333 shares at December 31, 2020 and 45,589,157 shares at December 31, 2019 |
50 | 46 | ||||||
Additional paid-in capital | 328,314 | 267,089 | ||||||
Accumulated other comprehensive income | 17 | 18 | ||||||
Accumulated deficit | (269,041 | ) | (164,125 | ) | ||||
Total stockholders’ equity | 59,340 | 103,028 | ||||||
Total liabilities and stockholders’ equity | $ | 139,877 | $ | 174,202 |
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