EXHIBIT 99.1

Molecular Templates, Inc. Reports Third Quarter 2021 Financial Results

AUSTIN, Texas, Nov. 15, 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 third quarter of 2021.

“We are focused on execution across our growing portfolio of wholly owned next-generation ETBs,” said Eric Poma, Ph.D., Molecular Templates’ Chief Executive and Scientific Officer. “Third quarter highlights included the initiation of clinical development of MT-6402 (targeting PD-L1 via dual mechanisms), the initiation of the HER2-positive breast cancer expansion cohort for MT-5111 as well as continued enrollment of patients in our MT-0169 clinical program. These programs demonstrate the depth and versatility of our ETB platform and the potential to develop innovative treatments for a broad array of solid and hematological tumors with high unmet medical need."

Company Highlights and Upcoming Milestones

Corporate

MT-0169 (CD38 ETB)

MT-6402 (PD-L1 ETB with Antigen Seeding Technology)

MT-5111 (HER2 ETB)

Research

Upcoming Investor Events

Financial Results

The net loss attributable to common shareholders for the third quarter of 2021 was $30.4 million, or $0.54 per basic and diluted share. This compares with a net loss attributable to common shareholders of $23.2 million, or $0.47 per basic and diluted share, for the same period in 2020.

Revenues for the third quarter of 2021 were $2.4 million, compared to $4.3 million for the same period in 2020. Revenues for the third quarter of 2021 were comprised of revenues from collaborative research and development agreements with Vertex and Bristol Myers Squibb. Total research and development expenses for the third quarter of 2021 were $22.9 million, compared with $19.6 million for the same period in 2020. Total general and administrative expenses for the third quarter of 2021 were $9.0 million, compared with $7.5 million for the same period in 2020.

As of September 30, 2021, MTEM’s cash and investments totaled $175.4 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.

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 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; statements relating to the development of MT-5111, MT-0169, 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.

Contacts:
Sean McLennan
Interim Chief Financial Officer
sean.mclennan@mtem.com
512-334-6664

Joyce Allaire
LifeSci Advisors, LLC
jallaire@lifesciadvisors.com

Molecular Templates, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)

 Three Months Ended
September 30,
  Nine Months Ended
September 30,
 
 2021  2020  2021  2020 
Research and development revenue, related party$  $1,566  $13,136  $4,962 
Research and development revenue, other 2,379   2,732   7,597   7,176 
Grant revenue          3,210 
Total revenue 2,379   4,298   20,733   15,348 
Operating expenses:               
Research and development 22,881   19,622   65,328   70,667 
General and administrative 9,027   7,547   26,178   19,606 
Total operating expenses 31,908   27,169   91,506   90,273 
Loss from operations 29,529   22,871   70,773   74,925 
Interest and other income, net 175   167   308   925 
Interest and other expense, net (1,033)  (521)  (2,301)  (1,229)
Loss on extinguishment of debt          (1,237)
Loss before provision for income taxes 30,387   23,225   72,766   76,466 
Provision for income taxes          5 
Net loss 30,387   23,225   72,766   76,471 
Net loss attributable to common shareholders$30,387  $23,225  $72,766  $76,471 
Net loss per share attributable to common shareholders:               
Basic and diluted$0.54  $0.47  $1.32  $1.63 
Weighted average number of shares used in net loss per share
calculations:
               
Basic and diluted 56,174,644   49,026,499   54,958,365   46,808,437 

Molecular Templates, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)

  September 30,
2021(unaudited)
  December 31,
2020
 
ASSETS        
Current assets:        
Cash and cash equivalents $27,593  $25,218 
Marketable securities, current  141,783   68,667 
Prepaid expenses  7,623   6,080 
Accounts receivable, related party     234 
Other current assets  445   1,125 
Total current assets  177,444   101,324 
Marketable securities, non-current  6,013    
Operating lease right-of-use assets  9,002   11,104 
Property and equipment, net  20,451   22,254 
Other assets  5,019   5,195 
Total assets $217,929  $139,877 
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Current liabilities:        
Accounts payable $1,311  $2,350 
Accrued liabilities  11,305   12,575 
Deferred revenue, current  32,240   14,014 
Deferred revenue, current, related party     789 
Other current liabilities, related party     5,614 
Other current liabilities  2,541   2,211 
Total current liabilities  47,397   37,553 
Deferred revenue, long-term  51,302   4,538 
Deferred revenue, long-term, related party     3,106 
Long-term debt, net of current portion  35,251   14,926 
Operating lease liabilities  10,284   12,213 
Other liabilities, related party     6,711 
Other liabilities  1,590   1,490 
Total liabilities  145,824   80,537 
Commitments and contingencies (Note 10)        
Stockholders’ equity        
Preferred stock, $0.001 par value:        
Authorized: 2,000,000 shares at September 30, 2021 and
December 31, 2020; issued and outstanding: 250 shares at
September 30, 2021 and December 31, 2020
      
Common stock, $0.001 par value:        
Authorized: 150,000,000 shares at September 30, 2021 and
December 31, 2020; issued and outstanding: 56,297,967 shares at
September 30, 2021 and 49,984,333 shares at December 31, 2020
  56   50 
Additional paid-in capital  413,857   328,314 
Accumulated other comprehensive income, (loss)  (1)  17 
Accumulated deficit  (341,807)  (269,041)
Total stockholders’ equity  72,105   59,340 
Total liabilities and stockholders’ equity $217,929  $139,877