“The second quarter of 2020 was one of great progress for Surface on several fronts. We advanced multiple programs in clinical development, entered into a clinical collaboration with
Recent Corporate Highlights:
- In April, initiated a Phase 1 clinical trial of its first-in-class antibody SRF388, which targets the immunosuppressive cytokine IL-27. The study design is based on a compelling translational hypothesis supported in part by a study presented at
American Association for Cancer Research(AACR) this year demonstrating that high levels of IL-27 correlate strongly with the risk of developing liver cancer. Presentation can be found here.
- In May, entered into a clinical trial collaboration with
Merck(NYSE: MRK) to evaluate the safety and efficacy of combining Surface’s SRF617, an investigational antibody therapy targeting CD39, with Merck’s KEYTRUDA® (pembrolizumab), the first anti-PD-1 therapy approved in the United States. This combination will be studied as a future component of the ongoing first-in-human Phase 1/1b study of SRF617 and will be evaluated in patients with solid tumors, with a focus on patients with gastric cancer and those who have developed resistance to checkpoint inhibition — both areas of high unmet need.
- In the second quarter, raised approximately
$39 millioncombined through its At-the-Market (ATM) facility and its venture debt facility. The ATM offering included participation based upon interest received from EcoR1 Capital LLC, Venrock Healthcare Capital Partners, BVF Partners L.P., and RS Investments, a Victory Capitalinvestment franchise.
- In June, presented updated preclinical data on SRF813 and lead candidates SRF617 and SRF388 at the 2020 AACR virtual annual meeting. Presentations can be found in the Posters & Publications section on this page.
- Advanced SRF813, a high affinity, fully human IgG1 antibody against CD112R (PVRIG) into IND-enabling studies. Preclinical studies support SRF813’s differentiated profile compared to the leading competitor and have indicated CD112R (PVRIG) inhibition activates both NK and T cells, resulting in robust anti-tumor activity and immunological memory.
- Continued progression of the ongoing Phase 1/1b trial of NZV930 (targeting CD73) by Surface Oncology’s partner Novartis.
Selected Anticipated 2020 Corporate Milestones:
- Preclinical data presentations anticipated at
Society for Immunotherapy of Cancer(SITC) in November 2020
- Initial clinical updates for both SRF617 and SRF388 anticipated by the end of 2020
- IND filing for SRF813 mid 2021
Research and development (R&D) expenses were
General and administrative (G&A) expenses were
For the second quarter ended
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
Additional information on potential risks will be made available in other filings that
Selected Financial Information:
(In thousands, except share and per share amounts)
|Three months ended
||Six months ended
|Statement of Operations Items||2020||2019||2020||2019|
|Collaboration revenue — related party||$||—||$||143||$||38,592||$||14,577|
|Research and development||9,548||13,236||20,836||27,545|
|General and administrative||4,995||5,417||9,782||10,510|
|Total operating expenses||14,543||18,653||30,618||38,055|
|Income (loss) from operations||(14,543||)||(18,510||)||7,974||(23,478||)|
|Interest and other income, net||(264||)||752||(211||)||1,521|
|Net income (loss)||(14,807||)||(17,758||)||7,763||(21,957||)|
|Net income (loss) per share attributable to common stockholders — basic||$||(0.44||)||$||(0.64||)||$||0.25||$||(0.79||)|
|Weighted average common shares outstanding— basic||33,418,412||27,845,136||30,697,779||27,835,471|
|Net income (loss) per share attributable to common stockholders — diluted||$||(0.44||)||$||(0.64||)||$||0.24||$||(0.79||)|
|Weighted average common shares outstanding— diluted||33,418,412||27,845,136||33,763,452||27,835,471|
|Selected Balance Sheet Items:||
|Cash, cash equivalents and marketable securities||$||112,539||$||105,161|
|Accounts payable and accrued expenses||5,780||11,396|
|Deferred revenue – related party||—||38,592|
|Total stockholders’ equity||97,671||56,666|
Source: Surface Oncology, Inc.