Neoleukin Therapeutics Announces Corporate Update and Third Quarter 2019 Financial Results
“The past quarter has been transformational for Neoleukin across many fronts. We’ve acquired the capital for further development of our de novo protein technology, expanded our talented team, and focused on advancing NL-201 for clinical evaluation,” said
Completion of Merger Transaction with
New Corporate Headquarters
Research Platform Advancement
Since completion of the merger, we have expanded the laboratory infrastructure and hired experienced scientists to build our computational, protein engineering, and immunology groups. We are dedicated to being leaders in the field of de novo protein design and development. We believe the Neoleukin technology platform has the potential to treat cancer and autoimmune diseases through the design of cytokine mimetics, conditionally active proteins, and inhibitors of inflammation.
Summary of Financial Results
Cash Position: Cash and cash equivalents totaled $66.3 million as of September 30, 2019, compared to $76.9 million as of December 31, 2018. The decrease was primarily the result of expenses related to the merger, the cost of expanding the Neoleukin team, and NL-201 IND-enabling activities. Neoleukin expects its cash and cash equivalents to be sufficient to support the development of internal programs. Based upon current internal infrastructure and pipeline initiatives, Neoleukin believes that its cash-on-hand will be sufficient to fund operations through 2021.
R&D Expenses: Research and development expenses for the third quarter of 2019 decreased to
G&A Expenses: General and administrative expenses for the third quarter of 2019 increased to
Net Loss: Net loss for the third quarter of 2019 was
Neoleukin is a biopharmaceutical company creating next generation immunotherapies using de novo protein design technology. Neoleukin uses sophisticated computational methods to design proteins that demonstrate specific pharmaceutical properties that provide potentially superior therapeutic benefit over native proteins. Neoleukin’s lead product candidate, NL-201, is a combined IL-2 and IL-15 agonist designed to eliminate alpha receptor binding. For more information, please visit the Neoleukin website: www.neoleukin.com.
Cautionary Note on Forward-Looking Statements
Certain of the statements made in this press release are forward looking, including those relating to evaluation of our pipeline and strategic options, potential timing of preclinical data, the sufficiency of our cash resources and other statements containing the words “anticipate,” “believe,” “expect,” “may,” “plan,” “project,” “potential,” “will,” “would,” “could,” “continue,” and similar expressions. These statements are subject to risks and uncertainties that could cause actual results and events to differ materially from those anticipated, including, but not limited to, risks and uncertainties related to: clinical drug development is a lengthy and expensive process with an uncertain outcome; our ability to identify or acquire additional clinical candidates, our ability to obtain and maintain regulatory approval for any future product candidates and the potential safety, efficacy or clinical utility of or any future product candidates. Actual results or developments may differ materially from those projected or implied in these forward-looking statements. More information about the risks and uncertainties faced by Neoleukin is contained in the company’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission. Neoleukin disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Condensed consolidated balance sheets
(In thousands of U.S. dollars)
|Cash and cash equivalents||$||66,306||$||76,928|
|Other current assets||1,276||237|
|Other long-term assets||2,209||453|
|Total liabilities and stockholders' equity||$||69,791||$||77,618|
Condensed consolidated statements of operations
(In thousands of U.S. dollars, except per share and share amounts)
|THREE MONTHS ENDED
|NINE MONTHS ENDED
|Research and development||1,420||10,713||(471||)||39,217|
|Acquired in-process research and development||47,716||-||47,716||-|
|General and administrative||10,380||4,484||15,358||13,107|
|Total operating expenses||59,516||15,197||62,603||52,324|
|Loss from operations||(59,516||)||(15,197||)||(62,603||)||(27,324||)|
|Other income, net||384||204||1,262||626|
|Net loss per common stock – basic and diluted||$||(2.26||)||$||(0.64||)||$||(2.51||)||$||(1.14||)|
|Basic and diluted weighted average number of common stock outstanding||26,185,839||23,537,368||24,429,893||23,513,489|
Source: Neoleukin Therapeutics, Inc.