“I am pleased to report that Surface has made substantial clinical progress to date in 2020; achieving important milestones with both of our highly differentiated lead programs, SRF617 and SRF388, while rapidly working through a safe transition to a largely virtual operation due to the current pandemic,” said
Recent Corporate Highlights:
- In March, initiated a Phase 1/1b clinical trial of SRF617, which targets CD39, an important component of the adenosine axis. This trial is designed to provide rapid evaluation of SRF617 via multiple arms, including as a monotherapy and in combination with both chemotherapy and other immuno-oncology agents
- In April, initiated a Phase 1 clinical trial of SRF388, which targets the immunosuppressive cytokine IL-27.
Surface Oncologyis the first company to advance an IL-27 targeted therapy into clinical development. The development of SRF388 is informed by a compelling translational hypothesis in which hepatocellular and renal cell carcinoma are prioritized, both of which are characterized by high levels of circulating EBI3, a subunit of IL-27
- Disclosed our development candidate SRF114, a monoclonal antibody targeting the chemokine receptor CCR8. SRF114 is a highly specific antibody that is designed to deplete immuno-suppressive cells present in the tumor microenvironment
- Entered into a clinical collaboration with
Arcus Biosciences(NYSE: RCUS) in January 2020, to evaluate SRF617 in combination with AB928 (a dual A2a/A2b adenosine receptor antagonist) in clinical trials
- Continued progression of the ongoing Phase 1/1b trial of NZV930 (targeting CD73) by Surface Oncology’s partner Novartis
Lisa McGrathto senior vice president, human resources
Selected Anticipated 2020 Corporate Milestones:
- Anticipated preclinical data presentations at multiple key medical and scientific conferences throughout 2020, including the
American Society of Clinical Oncology (ASCO) VirtualAnnual Meeting in May and the American Association for Cancer Research (AACR) VirtualAnnual Meeting II in June
- Anticipated initial clinical updates for both SRF617 and SRF388 by the end of 2020
As of March 31, 2020, cash, cash equivalents and marketable securities were $90.1 million, compared to $105.2 million on December 31, 2019.
Revenue recognized in the three months ended
Research and development (R&D) expenses were
General and administrative (G&A) expenses were $4.8 million for the three months ended March 31, 2020, compared to $5.1 million for the same period in 2019. This decrease was primarily due to decreased personnel costs and professional fees. G&A expenses included $1.2 million in stock-based compensation expense for the three months ended March 31, 2020.
For the three months ended March 31, 2020, net income was $22.6 million, or basic net income per share attributable to common stockholders of
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, the risks related to Surface Oncology’s dependence on third parties in connection with its manufacturing, clinical trials and preclinical studies, and the potential impact of COVID-19 on our clinical and preclinical development timelines and results of operations. 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 and our Quarterly Report on Form 10-Q for the quarter ending
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 March 31,|
|Statement of Operations Items||2020||2019|
|Collaboration revenue — related party||$||38,592||$||14,434|
|Research and development||11,288||14,309|
|General and administrative||4,787||5,093|
|Total operating expenses||16,075||19,402|
|Income (loss) from operations||22,517||(4,968||)|
|Interest and other income, net||53||769|
|Net income (loss)||22,570||(4,199||)|
|Net income (loss) per share attributable to common stockholders — basic||$||0.81||$||(0.15||)|
|Weighted average common shares outstanding — basic||27,977,145||27,825,698|
|Net income (loss) per share attributable to common stockholders — diluted||$||0.74||$||(0.15||)|
|Weighted average common shares outstanding — diluted||30,917,452||27,825,698|
|March 31,||December 31,|
|Selected Balance Sheet Items:||2020||2019|
|Cash, cash equivalents and marketable securities||$||90,084||$||105,161|
|Accounts payable and accrued expenses||8,278||11,396|
|Deferred revenue — related party||—||38,592|
|Total stockholders’ equity||81,566||56,666|
Source: Surface Oncology, Inc.