Molecular Templates, Inc. Reports Second Quarter 2021 Financial Results
AUSTIN, Texas, Aug. 12, 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 second quarter of 2021.
“We continue to make progress on advancing our wholly owned pipeline of next-generation ETBs and our existing partnerships. We reached an important milestone recently with initiation of clinical development of MT-6402 (targeting PD-L1 via dual mechanisms) which is the first of our third generation ETBs to enter the clinic,” said Eric Poma, Ph.D., Molecular Templates’ Chief Executive and Scientific Officer. “With regard to TAK-169, we are now looking forward to continuing clinical development, having assumed full rights to this asset from Takeda. We expect the second half of 2021 to be busy, with clinical data anticipated on MT-5111, TAK-169, and MT-6402 as well as further progress on our earlier stage programs.”
Company Highlights and Upcoming Milestones
MT-5111 (HER2 ETB)
TAK-169 (CD38 ETB)
MT-6402 (PD-L1 ETB with antigen seeding)
The net loss attributable to common shareholders for the second quarter of 2021 was $15.6 million, or $0.28 per basic and diluted share. This compares with a net loss attributable to common shareholders of $31.2 million, or $0.68 per basic and diluted share, for the same period in 2020.
Revenues for the second quarter of 2021 were $15.1 million, compared to $6.9 million for the same period in 2020. Revenues for the second quarter of 2021 were comprised of revenues from collaborative research and development agreements with Takeda, Vertex and Bristol Myers Squibb. Total research and development expenses for the second quarter of 2021 were $21.1 million, compared with $30.4 million for the same period in 2020. Total general and administrative expenses for the second quarter of 2021 were $8.9 million, compared with $6.4 million for the same period in 2020.
As of June 30, 2021, MTEM’s cash and investments totaled $200.7 million. 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 biopharmaceutical 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.
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 regarding the safety or potential efficacy of Molecular Templates’ drug or biologic candidates, including the anticipated benefits of Molecular Templates’ next-generation ETBs compared to its first-generation ETBs, such as MT-3724; statements relating to the development of MT-5111, TAK-169, and MT-6402; the expected timing of submitting various IND applications and conducting studies and generating data; Molecular Templates’ receipt of future development, regulatory and sales milestones and royalty payments; 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, 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; Molecular Templates’ ability to timely enroll patients in its clinical trials; 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. There can be no assurance that any of Molecular Templates’ drug or biologic candidates will be successfully developed, manufactured or commercialized, that final results of clinical trials will be supportive of regulatory approvals required to market products, or that any of the forward-looking information provided herein will be proven accurate. 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.
Interim Chief Financial Officer
LifeSci Advisors, LLC
Molecular Templates, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
|Three Months Ended|
|Six Months Ended|
|Research and development revenue, related party||$||12,899||$||3,063||$||13,136||$||3,396|
|Research and development revenue, other||2,235||2,977||5,218||4,444|
|Research and development||21,127||30,414||42,447||51,045|
|General and administrative||8,922||6,412||17,151||12,059|
|Total operating expenses||30,049||36,826||59,598||63,104|
|Loss from operations||14,915||29,917||41,244||52,054|
|Interest and other income, net||81||286||133||758|
|Interest and other expense, net||(767||)||(360||)||(1,268||)||(708||)|
|Loss on extinguishment of debt||—||(1,237||)||—||(1,237||)|
|Loss before provision for income taxes||15,601||31,228||42,379||53,241|
|Provision for income taxes||—||—||—||5|
|Net loss attributable to common shareholders||$||15,601||$||31,228||$||42,379||$||53,246|
|Net loss per share attributable to common shareholders:|
|Basic and diluted||$||0.28||$||0.68||$||0.78||$||1.17|
|Weighted average number of shares used in net loss per share calculations:|
|Basic and diluted||56,096,238||45,725,481||54,340,173||45,687,278|
Molecular Templates, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
|Cash and cash equivalents||$||43,090||$||25,218|
|Marketable securities, current||154,512||68,667|
|Accounts receivable, related party||—||234|
|Other current assets||465||1,125|
|Total current assets||205,279||101,324|
|Marketable securities, non-current||3,072||—|
|Operating lease right-of-use assets||10,138||11,104|
|Property and equipment, net||21,206||22,254|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Deferred revenue, current||30,791||14,014|
|Deferred revenue, current, related party||—||789|
|Other current liabilities, related party||472||5,614|
|Other current liabilities||2,464||2,211|
|Total current liabilities||44,708||37,553|
|Deferred revenue, long-term||52,544||4,538|
|Deferred revenue, long-term, related party||2,586||3,106|
|Long-term debt, net of current portion||35,018||14,926|
|Operating lease liabilities||10,947||12,213|
|Other liabilities, related party||—||6,711|
|Commitments and contingencies (Note 10)|
|Preferred stock, $0.001 par value:|
|Authorized: 2,000,000 shares at June 30, 2021 and December 31, 2020; issued and outstanding: 250 shares at June 30, 2021 and December 31, 2020||—||—|
|Common stock, $0.001 par value:|
|Authorized: 150,000,000 shares at June 30, 2021 and December 31, 2020; issued and outstanding: 56,138,404 shares at June 30, 2021 and 49,984,333 shares at December 31, 2020||56||50|
|Additional paid-in capital||408,758||328,314|
|Accumulated other comprehensive income||8||17|
|Total stockholders’ equity||97,402||59,340|
|Total liabilities and stockholders’ equity||$||244,761||$||139,877|