“We have made tremendous progress readying our lead programs, SRF617 and SRF388, for clinical trials. With opened INDs for both of these highly differentiated investigational immunotherapies, we are looking forward to initiating a new phase in our mission to deliver breakthrough treatments to help those affected by cancer,” said
Recent Corporate Highlights:
- Entered into a clinical collaboration with
Arcus Biosciences(NYSE: RCUS) in January 2020, to evaluate SRF617 (targeting CD39) in combination with AB928 (a dual A2a/A2b adenosine receptor antagonist) in clinical trials
- FDA clearance of the Investigational New Drug applications (INDs) for both SRF617 and SRF388 (targeting IL-27) in
- Continued progression of the ongoing phase 1/1b trial of NZV930 (targeting CD73) by Surface Oncology’s partner Novartis
- Promotion of
Liisa Nogeloto chief legal officer and Alison O’Neill to senior vice president, clinical development
Selected 2019 Corporate Highlights:
- Filed INDs for both SRF617 and SRF388
- Strengthened its team and Board of Directors with key additions, including the board appointment of
Ramy Ibrahim, M.D., the chief medical officer of the Parker Institute for Cancer Immunotherapy
- Announced a development candidate, SRF813 (CD112R), targeting the activation of natural killer and T cells
- Published a peer-reviewed manuscript in the scientific journal ImmunoHorizons1 describing the biological activity of IL-27, an immunosuppressive cytokine and the target of SRF388
- Gave multiple preclinical data presentations related to Surface Oncology’s pipeline programs at key scientific conferences, including the
Society for the Immunotherapyof Cancer’s (SITC) 34th Annual Meeting and the Brisbane Immunotherapy 2019 Conference
- Secured a debt financing facility for up to
$25 millionfrom K2 HealthVentures
- Held Surface Oncology’s inaugural Investor and Analyst Day
Selected Anticipated 2020 Corporate Milestones:
- Initiation of phase 1 trial for SRF617 in the first half of 2020
- Initiation of phase 1 trial for SRF388 in the first half of 2020
- Multiple preclinical data presentations anticipated at key medical and scientific conferences throughout 2020, including at the
American Association for Cancer Research(AACR) annual meeting in April
- Initial clinical updates for both SRF617 and SRF388 anticipated by the end of 2020
As of December 31, 2019, cash, cash equivalents and marketable securities were $105.2 million, compared to $158.8 million on December 31, 2018.
Research and development (R&D) expenses were
General and administrative (G&A) expenses were $5.1 million for the fourth quarter ended December 31, 2019, compared to $4.8 million for the same period in 2018. G&A expenses were $20.6 million for the full year 2019, compared to $16.1 million for the same period in 2018. The increase in G&A expenses for both the fourth quarter of 2019 and the full year 2019 was primarily due to increased personnel costs and professional fees. G&A expenses included $3.6 million in stock-based compensation expense for the full year 2019.
For the fourth quarter ended December 31, 2019, net loss was $16.0 million, or basic and diluted net loss per share attributable to common stockholders of $0.57. Net loss was $4.7 million for the same period in 2018, or basic and diluted net loss per share attributable to common stockholders of $0.17. For the full year ended December 31, 2019, net loss was $54.8 million, or basic and diluted net loss per share attributable to common stockholders of $1.97. Net loss was $6.6 million for the same period in 2018, or basic and diluted net loss per share attributable to common stockholders of $0.33.
Following the strategic restructuring implemented in January, Surface Oncology’s current cash and cash equivalents are projected to fund the Company into 2022. Anticipated milestones under the NZV930 collaboration with Novartis and additional capital potentially available under the K2 HealthVentures debt financing, in aggregate, would extend Surface Oncology’s cash runway into the second half of 2022.
1 DeLong, et al. ImmunoHorizons 3(1), pages 13–25 (2019)
About Surface Oncology:
Cautionary Note Regarding Forward-Looking Statements:
Certain statements set forth in this press release constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements can be identified by terms such as “believes,” “expects,” “plans,” “potential,” “would”, or similar expressions, and the negative of those terms. These forward-looking statements are based on Surface Oncology’s management’s current beliefs and assumptions about future events and on information currently available to management.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Surface Oncology’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, risks and uncertainties related to Surface Oncology’s ability to successfully develop SRF388, SRF617, SRF813 and its other product candidates through current and future milestones or regulatory filings on the anticipated timeline, if at all, the therapeutic potential of Surface Oncology’s product candidates, the risk that results from preclinical studies or early clinical trials may not be representative of larger clinical trials, the risk that Surface Oncology’s product candidates, including SRF388, SRF617 and SRF813, will not be successfully developed or commercialized, and the risks related to Surface Oncology’s dependence on third parties in connection with its manufacturing, clinical trials and preclinical studies. Additional risks and uncertainties that could affect Surface Oncology’s future results are included in the section titled “Risk Factors” in our Annual Report on Form 10-K for the year ending December 31, 2019, which is available on the Security and Exchange Commission’s website at www.sec.gov and Surface Oncology’s website at www.surfaceoncology.com.
Additional information on potential risks will be made available in other filings that Surface Oncology makes from time to time with the Securities and Exchange Commission. In addition, any forward-looking statements contained in this press release are based on assumptions that Surface Oncology believes to be reasonable as of this date. Except as required by law, Surface Oncology assumes no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.
Selected Financial Information:
(In thousands, except share and per share amounts)
|Three months ended December 31,||Twelve months ended December 31,|
|Statement of Operations Items||2019||2018||2019||2018|
|Collaboration revenue – related party||$||439||$||9,764||$||15,360||$||59,417|
|Research and development||11,657||10,520||52,118||52,492|
|General and administrative||5,114||4,825||20,608||16,076|
|Total operating expenses||16,771||15,345||72,726||68,568|
|Loss from operations||(16,332||)||(5,581||)||(57,366||)||(9,151||)|
|Total other income, net||378||846||2,577||2,554|
|Weighted average common shares outstanding—basic and diluted||27,885,539||27,683,808||27,854,912||19,990,773|
|Net loss per share attributable to common stockholders—basic and diluted||$||(0.57||)||$||(0.17||)||$||(1.97||)||$||(0.33||)|
|December 31,||December 31,|
|Selected Balance Sheet Items:||2019||2018|
|Cash, cash equivalents and marketable securities||$||105,161||$||158,835|
|Accounts payable and accrued expenses||11,396||12,215|
|Deferred revenue – related party||38,592||53,952|
|Total stockholders’ equity||56,666||102,862|
Source: Surface Oncology, Inc.