TG Therapeutics Provides Business Update and Reports Third Quarter 2020 Financial Results
Nov 09, 2020
Recent Developments and Highlights
- ASH 2020 Presentations:
• Four abstracts have been accepted for presentation at the upcoming 62nd American Society of Hematology (ASH) annual meeting, to be held virtually December 5 – 8, 2020, including:
• Results from the UNITY-NHL Phase 2 marginal zone lymphoma (MZL) and follicular lymphoma (FL) umbralisib monotherapy cohorts
• Results from the UNITY-CLL Phase 3 trial evaluating the combination of umbralisib and ublituximab (U2) in patients with treatment naïve and relapsed/refractory chronic lymphocytic leukemia (CLL)
• Two triple therapy presentations, one evaluating the combination of U2 plus venetoclax in CLL, and a another evaluating the combination of U2 plus TG-1701, our BTK inhibitor, in patients with B-cell malignancies
• Abstracts were made available last week and a call was held with leading investigators from our trials to review the data included in these abstracts. A replay from this call is available on our corporate website at https://ir.tgtherapeutics.com/events.
- UNITY-NHL: Umbralisib Monotherapy Marginal Zone Lymphoma & Follicular Lymphoma Cohorts
July 2020, we announced the publication of preclinical data describing the unique immunomodulatory effects of umbralisib in Blood Advances, a Journal of the American Society of Hematology.
August 2020, the U.S Food and Drug Administration(FDA) accepted the Company’s New Drug Application (NDA) for umbralisib as a treatment for patients with previously treated MZL and FL. The NDA was based primarily on data from the umbralisib monotherapy MZL and FL cohorts of the UNITY-NHL Phase 2b trial. The MZL indication, under Breakthrough Therapy Designation (BTD), has been accepted for Priority Review and has a Prescription Drug User Fee Act (PDUFA) goal date of February 15, 2021. The FL indication has been accepted for standard review with a PDUFA goal date of June 15, 2021.
- UNITY-CLL: Ublituximab and Umbralisib (U2) in Chronic Lymphocytic Leukemia
• In October, the FDA granted Fast Track Designation to the combination of ublituximab and umbralisib (U2) for the treatment of adult patients with CLL, which could potentially expedite the development and regulatory review of U2. The application for Fast Track was based on data from the UNITY-CLL Phase 3 Study.
Key Objectives for Remainder of 2020 and Early 2021
- Report topline results from the Phase 3 ULTIMATE I & II trials in Multiple Sclerosis
- Present full data from the UNITY-CLL Phase 3 trial and from the FL and MZL single agent umbralisib cohorts of the UNITY-NHL trial at ASH 2020 as well as data from our triple therapy combinations of U2 plus venetoclax and U2 plus 1701, our BTK inhibitor
- Target an NDA/Biologics Licensing Application (BLA) submission of U2 for the treatment of patients with CLL (including both previously untreated and relapsed/refractory patients)
- Complete enrollment in ULTRA-V Phase 2b trial
- Continue to advance our early pipeline candidates including our anti-PD-L1 monoclonal antibody, cosibelimab (TG-1501), our covalently-bound Bruton’s Tyrosine Kinase (BTK) inhibitor, TG-1701, and our anti-CD47/CD19 bispecific antibody, TG-1801
Financial Results for the Three and Nine Months Ended
- R&D Expenses: Other research and development (R&D) expense (not including non-cash compensation) was
$45.8 millionand $114.8 millionfor the three and nine months ended September 30, 2020, respectively, compared to $56.5 millionand $118.8 millionfor the three and nine months ended September 30, 2019, respectively. The decrease in R&D is primarily attributable to a decrease in manufacturing costs for ublituximab and umbralisib, offset by an increase in milestone payments made during the three and nine months ended September 30, 2020. We expect our R&D expenses to decrease during the remainder of 2020 as costs associated with our main pivotal clinical trials continue to decline, partially offset by expenses associated with the expected NDA/BLA filing for U2 in CLL.
- G&A Expenses: Other general and administrative (G&A) expense (not including non-cash compensation) was
$11.6 millionand $25.4 millionfor the three and nine months ended September 30 2020, respectively, as compared to $2.3 millionand $6.6 millionfor the three and nine months ended September 30, 2019, respectively. The increase in other G&A expenses is primarily due to increased personnel and other general and administrative costs, associated with preparations for a potential commercial launch. We expect G&A expenses to increase modestly during the remainder of 2020 in preparation for potential launch.
- Net Loss: Net loss was
$87.2 millionand $191.2 millionfor the three and nine months ended September 30, 2020, respectively, compared to a net loss of $61.9 millionand $133.3 millionfor the three and nine months ended September 30, 2019, respectively. The net loss for the nine months ended September 30, 2020included approximately $15 millionof one-time milestone expenses related to our license agreements. Excluding non-cash compensation, the net loss for the three and nine months ended September 30, 2020was approximately $58.8 millionand $144.4 million, respectively, compared to a net loss of $59.9 millionand $127.6 millionfor the three and nine months ended September 30, 2019, respectively.
- Cash Position and Financial Guidance: Cash and cash equivalents were
$254.2 millionas of September 30, 2020. Pro forma cash, cash equivalents and investment securities as of September 30, 2020are approximately $328 million, after giving effect to $74.0 millionof net proceeds from the utilization of the Company's ATM sales facility during the fourth quarter of 2020. The Company believes its cash and cash equivalents on hand as of September 30, 2020, along with the additional capital raised in the fourth quarter of 2020, will be sufficient to fund the Company's planned operations well into 2022.
TG Therapeutics is a biopharmaceutical company focused on the acquisition, development and commercialization of novel treatments for B-cell malignancies and autoimmune diseases. Currently, the company is in late stage clinical development with two investigational compounds, ublituximab and umbralisib, the combination of which is referred to as “U2”, targeting hematological malignancies and autoimmune diseases. Ublituximab (TG-1101) is a glycoengineered monoclonal antibody that targets a specific and unique epitope on the CD20 antigen found on mature B-lymphocytes. Umbralisib (TGR-1202) is an oral, once-daily dual inhibitor of PI3K-delta and CK1-epsilon. Umbralisib is currently under review by the U.S. Food and Drug Administration (FDA) for accelerated approval as a treatment for patients with previously treated marginal zone lymphoma (MZL) who have received at least one prior anti-CD20 based regimen or follicular lymphoma (FL) who have received at least two prior systemic therapies. The Company also has a fully enrolled Phase 3 clinical trial evaluating U2 in patients with treatment naïve and relapsed/refractory chronic lymphocytic leukemia (CLL), and two fully enrolled identical Phase 3 trials evaluating ublituximab monotherapy in patients with relapsing forms of multiple sclerosis (RMS). Additionally, the Company has recently brought into Phase 1 clinical development its anti-PD-L1 monoclonal antibody, cosibelimab (TG-1501), its covalently-bound Bruton’s Tyrosine Kinase (BTK) inhibitor, TG-1701, as well as its anti-CD47/CD19 bispecific antibody, TG-1801. TG Therapeutics is headquartered in New York City.
This press release includes forward-looking statements that involve a number of risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. In addition to the risk factors identified from time to time in our reports filed with the
|Senior Vice President,|
Selected Condensed Consolidated Financial Data
Statements of Operations Information (in thousands, except share and per share amounts; unaudited):
|Three months ended
||Nine months ended
|Costs and expenses:|
|Research and development:|
|Noncash stock expense associated with in-licensing agreements||--||--||--||100|
|Other research and development||45,846||56,503||114,785||118,814|
|Total research and development||50,464||57,985||122,935||123,237|
|General and administrative:|
|Other general and administrative||11,584||2,321||25,373||6,580|
|Total general and administrative||35,296||2,914||63,991||7,971|
|Total costs and expenses||85,760||60,899||186,926||131,208|
|Other expense (income):|
|Total other expense (income), net||1,441||1,069||4,351||2,205|
|Basic and diluted net loss per common share|
|Weighted average shares used in computing basic and diluted net loss per common share||119,176,336||89,667,979||112,380,784||85,911,878|
Condensed Balance Sheet Information (in thousands):
|Cash, cash equivalents and investment securities|
|*||Condensed from audited financial statements|
Source: TG Therapeutics, Inc.