EXHIBIT 99.1
Molecular Templates, Inc. Reports Third Quarter 2022 Financial Results
AUSTIN, Texas, Nov. 10, 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 third quarter of 2022.
“We are excited with the progress we continue to make across all our clinical and pre-clinical programs. We have now seen evidence of monotherapy clinical activity with MT-6402, MT-5111, and MT-0169 in heavily pretreated relapsed/refractory patients -- in both solid and hematological cancer settings -- demonstrating the broad potential utility of this novel scaffold,” said Eric Poma, PhD., Chief Executive and Chief Scientific Officer of Molecular Templates. “We look forward to providing further updates on our MT-6402, MT-5111, and MT-0169 programs throughout 2023 and look forward to our anticipated IND submission for MT-8421 all while we continue to advance our development of additional ETB candidates targeting TROP2, TIGIT, and BCMA.”
Company Highlights and Upcoming Milestones
Corporate
ETB Technology
ETBs represent a novel platform with unique biology for therapeutic development in oncology. ETBs have the target specificity of antibodies, can force their own internalization, even against non-internalizing receptors, and can induce tumor cell death through the novel mechanism of enzymatic and irreversible ribosomal destruction. Because of this unique biology, ETBs to targets like HER2 and CD38 have the potential to drive clinical benefit in patients that have progressed after all available therapeutics. ETBs also represent a unique approach to immuno-oncology. Unlike current approaches to PD-L1 that only block the steric interaction of PD-1 and PD-L1, MT-6402, MTEM’s ETB targeting PD-L1, is designed to directly kill PD-L1+ tumors cells, destroy immune cells that inhibit T-cell function and propagate tumor growth, and alter the immunophenotype of tumor cells.
MT-6402 (PD-L1 ETB with Antigen Seeding Technology)
MT-5111 (HER2 ETB)
MT-0169 (CD38 ETB)
Research and Development
Upcoming Conferences
Financial Results
The net loss attributable to common shareholders for the third quarter of 2022 was $24.6 million, or $0.44 per basic and diluted share. This compares with a net loss attributable to common shareholders of $30.4 million, or $0.54 per basic and diluted share, for the same period in 2021.
Revenues for the third quarter of 2022 were $4.2 million, compared to $2.4 million for the same period in 2021. Revenues for the third quarter of 2022 were comprised of revenues from collaborative research and development agreements with Bristol Myers Squibb.
Total research and development expenses for the third quarter of 2022 were $22.0 million, compared with $22.9 million for the same period in 2021. Total general and administrative expenses for the third quarter of 2022 were $5.9 million, compared with $9.0 million for the same period in 2021.
As of September 30, 2022, MTEM’s cash and investments totaled $79.4 million.
For more details on MTEM’s financial results for the third quarter 2022, refer to Form 10-Q 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 or clinical data as well as Molecular Templates’ 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 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 September 30, | Nine Months Ended September 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Research and development revenue, related party | $ | — | $ | — | $ | — | $ | 13,136 | |||||||
Research and development revenue, other | 4,240 | 2,379 | 17,143 | 7,597 | |||||||||||
Total revenue | 4,240 | 2,379 | 17,143 | 20,733 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 21,973 | 22,881 | 64,835 | 65,328 | |||||||||||
General and administrative | 5,934 | 9,027 | 20,120 | 26,178 | |||||||||||
Total operating expenses | 27,907 | 31,908 | 84,955 | 91,506 | |||||||||||
Loss from operations | 23,667 | 29,529 | 67,812 | 70,773 | |||||||||||
Interest and other income, net | 307 | 175 | 563 | 308 | |||||||||||
Interest and other expense, net | (1,252 | ) | (1,033 | ) | (3,394 | ) | (2,301 | ) | |||||||
Net loss | 24,612 | 30,387 | 70,643 | 72,766 | |||||||||||
Provision for income taxes | 26 | — | 26 | — | |||||||||||
Net loss attributable to common shareholders | $ | 24,638 | $ | 30,387 | $ | 70,669 | $ | 72,766 | |||||||
Net loss per share attributable to common shareholders: | |||||||||||||||
Basic and diluted | $ | 0.44 | $ | 0.54 | $ | 1.25 | $ | 1.32 | |||||||
Weighted average number of shares used in net loss per share calculations: | |||||||||||||||
Basic and diluted | 56,350,858 | 56,174,644 | 56,328,664 | 54,958,365 |
Molecular Templates, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) | ||||||||
September 30, 2022(unaudited) | December 31, 2021 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 22,277 | $ | 24,983 | ||||
Marketable securities, current | 57,168 | 118,061 | ||||||
Prepaid expenses | 3,729 | 3,917 | ||||||
Other current assets | 4,011 | 1,254 | ||||||
Total current assets | 87,185 | 148,215 | ||||||
Marketable securities, non-current | — | 8,986 | ||||||
Operating lease right-of-use assets | 11,120 | 8,608 | ||||||
Property and equipment, net | 16,347 | 19,309 | ||||||
Other assets | 3,994 | 7,244 | ||||||
Total assets | $ | 118,646 | $ | 192,362 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,085 | $ | 1,612 | ||||
Accrued liabilities | 8,890 | 9,515 | ||||||
Deferred revenue, current | 38,290 | 32,937 | ||||||
Other current liabilities | 1,957 | 2,606 | ||||||
Total current liabilities | 50,222 | 46,670 | ||||||
Deferred revenue, long-term | 14,641 | 33,350 | ||||||
Long-term debt, net of current portion | 35,940 | 35,491 | ||||||
Operating lease liabilities | 12,422 | 9,564 | ||||||
Other liabilities | 1,269 | 1,625 | ||||||
Total liabilities | 114,494 | 126,700 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity | ||||||||
Preferred stock, $0.001 par value: | ||||||||
Authorized: 2,000,000 shares at September 30, 2022 and December 31, 2021; issued and outstanding: 250 shares at September 30, 2022 and December 31, 2021 | — | — | ||||||
Common stock, $0.001 par value: | ||||||||
Authorized: 150,000,000 shares at September 30, 2022 and December 31, 2021; issued and outstanding: 56,351,647 shares at September 30, 2022 and 56,305,049 shares at December 31, 2021 | 56 | 56 | ||||||
Additional paid-in capital | 427,042 | 417,704 | ||||||
Accumulated other comprehensive loss | (227 | ) | (48 | ) | ||||
Accumulated deficit | (422,719 | ) | (352,050 | ) | ||||
Total stockholders’ equity | 4,152 | 65,662 | ||||||
Total liabilities and stockholders’ equity | $ | 118,646 | $ | 192,362 |