EXHIBIT 99.1
Molecular Templates, Inc. Reports Second Quarter 2022 Financial Results
AUSTIN, Texas, Aug. 11, 2022 (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), to create novel therapies with potent and differentiated mechanisms of action for cancer and other serious diseases, today reported financial results and business updates for the second quarter of 2022.
“We are pleased with the progress we are making to advance our potent ETB pipeline of drug candidates which are highly differentiated from Antibody-Drug Conjugates (ADCs), each with a substantial and unique value proposition,” said Eric Poma, PhD., Chief Executive and Chief Scientific Officer of Molecular Templates. “We presented six posters on our programs at the 2022 American Association for Cancer Research (AACR) Annual Meeting, as well as two posters on MT-6402 (PD-L1 ETB with Antigen Seeding Technology) and MT-5111 at the 2022 American Society of Clinical Oncology (ASCO) Annual Meeting, and we look forward to reporting updates in the second half of the year as we plan to expand our Phase 1 study of MT-6402 in PD-L1+ patients and continue dose-finding in the MT-5111 and MT-0169 programs. We remain on track toward our anticipated IND submission for MT-8421 (CTLA-4 ETB with unique I/O approach) and are executing on additional novel ETB programs targeting TROP2, TIGIT, and BCMA. We also continue to move forward with our collaboration agreement with Bristol Myers Squibb.”
Company Highlights and Upcoming Milestones
Corporate
ETB Technology
ETBs represent a novel platform for therapeutic development with unique biology. In contrast to Antibody Drug Conjugates (ADCs), ETBs leverage differentiated biology and MoAs which include internalizing or non-internalizing targets, endosomal escape with self-routing to cytosol, enzymatic ribosome inactivation, and cytosolic/ER delivery. ETBs can also alter the immunophenotype of tumor cells through Antigen Seeding technology. MTEM is developing ETBs against validated targets where its differentiated biology may allow for efficacy in a relapsed/refractory setting.
Immuno-Oncology ETBs:
MT-6402 and MT-8421 represent MTEM’s unique approach to immuno-oncology based on dismantling the TME through direct cell-kill of immune cells rather than blocking of ligand-ligand interactions as seen with current antibody therapeutics.
MT-6402 (PD-L1 ETB with Antigen Seeding Technology)
MT-8421 (CTLA-4 ETB)
Research
Targeted Solid Tumor ETBs:
MT-5111 (HER2 ETB)
Research
Hematologic Malignancy Targeted ETBs:
MT-0169 (CD38 ETB)
Research
Financial Results
The net loss attributable to common shareholders for the second quarter of 2022 was $24.4 million, or $0.43 per basic and diluted share. This compares with a net loss attributable to common shareholders of $15.6 million, or $0.28 per basic and diluted share, for the same period in 2021.
Revenues for the second quarter of 2022 were $4.4 million, compared to $15.1 million for the same period in 2021. Revenues for the second quarter of 2022 were comprised of revenues from collaborative research and development agreements with Bristol Myers Squibb.
Total research and development expenses for the second quarter of 2022 were $21.4 million, compared with $21.1 million for the same period in 2021. Total general and administrative expenses for the second quarter of 2022 were $6.6 million, compared with $8.9 million for the same period in 2021.
As of June 30, 2022, MTEM’s cash and investments totaled $104.4 million. MTEM’s current cash and investments are expected to fund operations to the end of 2023.
For more details on MTEM’s financial results for the second quarter 2022, refer to Form 10Q filed with the SEC.
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 MT-6402, MT-5111, MT-0169, and MT-8421 and Molecular Templates’ next-generation ETBs; statements relating to the development of MT-6402, MT-5111, MT-0169, and MT-8421 and next-generation ETBs; the expected timing for submitting various IND applications and conducting studies, opening sites and generating data; the expected participation and presentation at upcoming conferences; the expected timing for providing updates on MT-6402, MT-5111, MT-0169, and MT-8421, including any pre-clinical data as well as Molecular Templates’ earlier stage pipeline of ETBs; statements relating to the progress of our collaboration agreement; Molecular Templates’ future cash needs and the length of time for which Molecular Templates’ cash resources are expected to be sufficient; 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 from ADCs that may address some of the limitations associated with currently available therapeutics for cancer and other serious diseases.
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:
Dr. Grace Kim
Head of Investor Relations
grace.kim@mtem.com
Molecular Templates, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Research and development revenue, related party | $ | — | $ | 12,899 | $ | — | $ | 13,136 | |||||||
Research and development revenue, other | 4,417 | 2,235 | 12,903 | 5,218 | |||||||||||
Total revenue | 4,417 | 15,134 | 12,903 | 18,354 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 21,690 | 21,127 | 43,187 | 42,447 | |||||||||||
General and administrative | 6,566 | 8,922 | 14,186 | 17,151 | |||||||||||
Total operating expenses | 28,256 | 30,049 | 57,373 | 59,598 | |||||||||||
Loss from operations | 23,839 | 14,915 | 44,470 | 41,244 | |||||||||||
Interest and other income, net | 186 | 81 | 256 | 133 | |||||||||||
Interest and other expense, net | (1,092 | ) | (767 | ) | (2,142 | ) | (1,268 | ) | |||||||
Net loss | 24,745 | 15,601 | 46,356 | 42,379 | |||||||||||
Net loss attributable to common shareholders | $ | 24,745 | $ | 15,601 | $ | 46,356 | $ | 42,379 | |||||||
Net loss per share attributable to common shareholders: | |||||||||||||||
Basic and diluted | $ | 0.44 | $ | 0.28 | $ | 0.82 | $ | 0.78 | |||||||
Weighted average number of shares used in net loss per share calculations: | |||||||||||||||
Basic and diluted | 56,329,585 | 56,096,238 | 56,317,194 | 54,340,173 |
Molecular Templates, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
June 30, 2022(unaudited) | December 31, 2021 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 26,936 | $ | 24,983 | ||||
Marketable securities, current | 77,489 | 118,061 | ||||||
Prepaid expenses | 2,395 | 3,917 | ||||||
Other current assets | 4,271 | 1,254 | ||||||
Total current assets | 111,091 | 148,215 | ||||||
Marketable securities, non-current | — | 8,986 | ||||||
Operating lease right-of-use assets | 7,794 | 8,608 | ||||||
Property and equipment, net | 17,913 | 19,309 | ||||||
Other assets | 4,006 | 7,244 | ||||||
Total assets | $ | 140,804 | $ | 192,362 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,641 | $ | 1,612 | ||||
Accrued liabilities | 9,529 | 9,515 | ||||||
Deferred revenue, current | 32,984 | 32,937 | ||||||
Other current liabilities | 2,459 | 2,606 | ||||||
Total current liabilities | 46,613 | 46,670 | ||||||
Deferred revenue, long-term | 22,662 | 33,350 | ||||||
Long-term debt, net of current portion | 35,675 | 35,491 | ||||||
Operating lease liabilities | 8,444 | 9,564 | ||||||
Other liabilities | 1,698 | 1,625 | ||||||
Total liabilities | 115,092 | 126,700 | ||||||
Commitments and contingencies (Note 10) | ||||||||
Stockholders’ equity | ||||||||
Preferred stock, $0.001 par value: | ||||||||
Authorized: 2,000,000 shares at June 30, 2022 and December 31, 2021; issued and outstanding: 250 shares at June 30, 2022 and December 31, 2021 | — | — | ||||||
Common stock, $0.001 par value: | ||||||||
Authorized: 150,000,000 shares at June 30, 2022 and December 31, 2021; issued and outstanding: 56,339,558 shares at June 30, 2022 and 56,305,049 shares at December 31, 2021 | 56 | 56 | ||||||
Additional paid-in capital | 424,392 | 417,704 | ||||||
Accumulated other comprehensive loss | (330 | ) | (48 | ) | ||||
Accumulated deficit | (398,406 | ) | (352,050 | ) | ||||
Total stockholders’ equity | 25,712 | 65,662 | ||||||
Total liabilities and stockholders’ equity | $ | 140,804 | $ | 192,362 |