TRACON Pharmaceuticals Reports Fourth Quarter and Year-End 2021 Financial Results and Provides Corporate Update
Announced FDA Approval of Amended ENVASARC Protocol, ENVASARC Interim Efficacy Data on Track for 2H22
Initiating combination trial of proprietary CTLA-4 with envafolimab in 2022
“The ENVASARC trial remains our top priority in 2022, to address the significant unmet medical need in refractory sarcoma for the approval of safe and effective treatments. In
Recent Corporate Highlights
- In
February 2022 , following review of the higher envafolimab dose level by the FDA, we began dosing ENVASARC patients at the higher dose of envafolimab of 600 mg subcutaneously every three weeks as a single agent or in combination with Yervoy. - In
February 2022 , we announced that theNational Cancer Institute initiated a randomized Phase 2 trial of TRC102 in advanced localized non-small cell lung cancer (NCT05198830: https://clinicaltrials.gov/ct2/show/NCT05198830?term=TRC102&draw=2&rank=3). - In
February 2022 , we attended the arbitration hearing held by a tribunal of theInternational Chamber of Commerce on our disputes withI-Mab related to the TJ4309 and bispecific antibody agreements. We expect the ruling on the arbitration later this year. - In
November 2021 , we announced that envafolimab was approved inChina by our partners 3D Medicines and Alphamab Oncology for patients with microsatellite instability-high (MSI-H) or deficient MisMatch Repair (dMMR) advanced solid tumors, which represented the first regulatory approval of a subcutaneously administered checkpoint inhibitor. - In
October 2021 , we announced a partnership with Eucure Biopharma for the development of YH001, a CTLA-4 antibody with enhanced effector functions that we plan to develop in combination with envafolimab in first-line sarcoma and in other tumor types as a single agent or with approved therapies.
Expected Key Upcoming Milestones
- Interim ENVASARC safety and efficacy data review by the Independent Data Monitoring Committee (IDMC) in the second half of 2022.
- Initiate dosing of a Phase 1/2 clinical trial of envafolimab with YH001 in the second half of 2022.
- Report the Arbitration Panel’s binding decisions with respect to the outcome of the legal disputes with
I-Mab . - Complete the TJ4309 trial this year permitting
I-Mab the opportunity to terminate the license for$9M .
Fourth Quarter 2021 Financial Results
- Cash, cash equivalents and short-term investments were
$24.1 million atDecember 31, 2021 , compared to$36.1 million atDecember 31, 2020 . - Research and development expenses for the fourth quarter of 2021 were
$3.1 million , compared to$2.2 million for the fourth quarter of 2020. The increase relates to enrollment in the pivotal ENVASARC trial. - General and administrative expenses for the fourth quarter of 2021 were
$4.6 million , compared to$2.0 million for the fourth quarter of 2020. The increase was primarily attributable to legal expenses incurred due to the ongoing arbitration withI-Mab related to the TJ4309 and bispecific antibody agreements. - Net loss for the fourth quarter of 2021 was
$7.7 million , compared to$4.3 million for the fourth quarter of 2020.
Conference Call Details
Domestic: | 855-779-9066 |
International: | 631-485-4859 |
Conference ID: | 4073534 |
A live webcast of the conference call will be available online from the Investor/Events and Presentations page of the Company’s website at www.traconpharma.com.
After the live webcast, a replay will remain available on TRACON’s website for 60 days.
About Envafolimab
Envafolimab (KN035), a single-domain antibody against PD-L1 invented by Alphamab Oncology, is the first subcutaneously injected PD-(L)1 inhibitor approved by the Chinese NMPA in
About ENVASARC (NCT04480502)
The ENVASARC pivotal trial is a multicenter, open label, randomized, non-comparative, parallel cohort study at approximately 25 top cancer centers in
About YH001
YH001 is an IgG1 antibody against CTLA-4 that has shown enhanced antibody dependent cellular cytotoxicity (ADCC) and complement dependent cytotoxicity (
About TRC102
TRC102 (methoxyamine) is a novel, small molecule inhibitor of the DNA base excision repair pathway, which is a pathway that causes resistance to alkylating and antimetabolite chemotherapeutics. TRC102 is currently being studied in multiple Phase 1 and Phase 2 clinical trials sponsored by the
About TJ004309
TJ004309 is a novel, humanized antibody against CD73, an ecto-enzyme expressed on stromal cells and tumors that converts extracellular adenosine monophosphate (AMP) to adenosine, which is highly immunosuppressive. TJ004309 is currently being studied in an ongoing Phase 1 trial to assess safety and preliminary efficacy as a single agent and when combined with the PD-L1 checkpoint inhibitor Tecentriq in patients with advanced solid tumors.
About TRACON
TRACON develops targeted therapies for cancer utilizing a capital efficient, CRO independent, product development platform. The Company’s clinical-stage pipeline includes: Envafolimab, a PD-L1 single-domain antibody given by rapid subcutaneous injection that is being studied in the pivotal ENVASARC trial for sarcoma; YH001, a potential best-in-class CTLA-4 antibody in Phase 1 development; TRC102, a Phase 2 small molecule drug candidate for the treatment of lung cancer; and TJ004309, a CD73 antibody in Phase 1 development for the treatment of advanced solid tumors. TRACON is actively seeking additional corporate partnerships whereby it leads
Forward-Looking Statements
Statements made in this press release regarding matters that are not historical facts are “forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward‐looking statements. Such statements include, but are not limited to, statements regarding TRACON's and its collaboration partners’ plans to further develop product candidates; expectations regarding the timing and scope of clinical trials and availability of clinical data; expected development, regulatory and commercial milestones and timing thereof; potential utility of product candidates; and TRACON’s business development strategy and goals to enter into additional collaborations. Risks that could cause actual results to differ from those expressed in these forward‐looking statements include: risks associated with clinical development and regulatory approval of novel pharmaceutical product candidates; whether TRACON or others will be able to complete or initiate clinical trials on TRACON’s expected timelines, if at all, including due to risks associated with the COVID-19 pandemic; the fact that future preclinical studies and clinical trials may not be successful or otherwise consistent with results from prior studies; the fact that TRACON has limited control over whether or when third party collaborators complete on-going trials or initiate additional trials of TRACON’s product candidates; the fact that TRACON’s collaboration agreements are subject to early termination; whether TRACON will be able to enter into additional collaboration agreements on favorable terms or at all; potential changes in regulatory requirements in
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
Three Months Ended |
Year Ended |
|||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||
License revenue | $ | — | $ | — | $ | 346 | $ | — | ||||
Operating expenses: | ||||||||||||
Research and development | 3,064 | 2,197 | 11,146 | 8,198 | ||||||||
General and administrative | 4,599 | 1,980 | 17,547 | 8,025 | ||||||||
Total operating expenses | 7,663 | 4,177 | 28,693 | 16,223 | ||||||||
Loss from operations | (7,663 | ) | (4,177 | ) | (28,347 | ) | (16,223 | ) | ||||
Total other expense | (49 | ) | (134 | ) | (320 | ) | (552 | ) | ||||
Net loss | $ | (7,712 | ) | $ | (4,311 | ) | $ | (28,667 | ) | $ | (16,775 | ) |
Net loss per share, basic and diluted |
$ | (0.40 | ) | $ | (0.31 | ) | $ | (1.66 | ) | $ | (1.87 | ) |
Weighted-average shares outstanding, basic and diluted | 19,442,526 | 13,800,711 | 17,252,637 | 8,984,148 | ||||||||
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
2021 | 2020 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 24,072 | $ | 32,131 | |||
Short-term investments | — | 3,999 | |||||
Prepaid and other assets | 864 | 784 | |||||
Total current assets | 24,936 | 36,914 | |||||
Property and equipment, net | 50 | 16 | |||||
Other assets | 1,571 | 508 | |||||
Total assets | $ | 26,557 | $ | 37,438 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 10,753 | $ | 6,235 | |||
Accrued compensation and related expenses | 1,532 | 1,590 | |||||
Long-term debt, current portion | 1,391 | 2,718 | |||||
Total current liabilities | 13,676 | 10,543 | |||||
Other long-term liabilities | 1,167 | 432 | |||||
Long-term debt, less current portion | — | 1,391 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Common stock | 19 | 15 | |||||
Additional paid-in capital | 219,471 | 204,166 | |||||
Accumulated deficit | (207,776 | ) | (179,109 | ) | |||
Total stockholders’ equity | 11,714 | 25,072 | |||||
Total liabilities and stockholders’ equity | $ | 26,557 | $ | 37,438 |
Company Contact: | Investor Contact: |
Chief Business Officer | |
(858) 251-3492 | (212) 915-2578 |
mwiggins@traconpharma.com | britchie@lifesciadvisors.com |
Source: TRACON Pharmaceuticals, Inc.