Surface Oncology Reports Financial Results and Corporate Highlights for First Quarter 2018
Initiated a Phase 1 trial of SRF231, a fully human antibody targeting CD47
Completed upsized initial public offering and concurrent private placement raising a total of
“2018 has already been an enormously productive year for Surface with the advancement of our lead program, SRF231, into clinical development and the completion of our IPO,” said
- SRF231, a fully human monoclonal antibody targeting CD47: In
February 2018, Surface initiated a Phase I trial of SRF231. The multi-center, open-label Phase I trial will evaluate the safety and tolerability of SRF231 in multiple ascending doses with the goal of establishing a recommended dose for further study. Following the dose escalation phase, the Company intends to evaluate the safety and efficacy of SRF231 in a targeted set of solid and hematologic malignancies. Initial clinical results from this trial are expected in the first half of 2019. Surface holds worldwide rights to SRF231.
- SRF373, a fully human monoclonal antibody targeting CD73: An IND for SRF373 was sponsored and filed by Surface’s collaborator,
Novartis, in February 2018. A Phase 1 trial is anticipated to begin later this year. SRF373 has been licensed on a worldwide basis by Novartis.
- SRF617, a fully human monoclonal antibody targeting CD39: Surface recently identified a development candidate and has initiated IND-enabling studies for SRF617. Surface holds worldwide rights to SRF617.
- SRF388, a fully human monoclonal antibody targeting IL-27: Surface recently identified a development candidate and has initiated IND-enabling studies for SRF388.
Novartishas the right to purchase an option to SRF388.
- Completed upsized initial public offering (IPO): In
April 2018, Surface completed its IPO of 7,200,000 shares of common stock at a public offering price of $15.00per share and a concurrent private placement of 766,666 shares of common stock to Novartisat the public offering price. Total gross proceeds to Surface were $119.5 million, or $108.7 millionafter underwriting discounts and offering expenses.
$45.0 millionmilestone payment from Novartis: In February 2018, Surface received an additional milestone payment of $45.0 millionfrom Novartisrelated to SRF373.
- Expanded board of directors with the appointment of three industry and scientific leaders:
Elliott Sigal, M.D., Ph.D., former Chief Scientific Officer and President of R&D for Bristol-Myers Squibb; Geoff McDonough, M.D., Chief Executive Officer of Generation Bio; and Laurie Stelzer, Chief Financial Officer of Halozyme Therapeutics.
- Expanded management team: In
April 2018, Bob Steiningerjoined Surface as Senior Vice President, CMC. He brings over three decades of biologics manufacturing experience. Previously, he was Director, Manufacturing Operations at Voyager Therapeutics, SVP of Manufacturing and Process Developmentat Acceleron Pharmaand held multiple manufacturing roles of increasing responsibility at Millennium Pharmaceuticals(now Takeda) and Genetics Institute(now Pfizer).
Research and development (R&D) expenses were
General and administrative (G&A) expense were
For the first 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 our 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 our 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: our limited operating history and historical losses, our liquidity to fund the development of SRF231 and our other product candidates through current and future milestones, our ability to raise additional funding to complete the development and any commercialization of our product candidates, our dependence on the success of our lead product candidates, SRF231 and SRF373, results from preclinical studies or early clinical trials may not be representative of larger clinical trials, results from the clinical trials and preclinical studies of third parties working in immuno-oncology and our dependence on third parties in connection with our manufacturing, clinical trials and pre-clinical studies. Additional risks and uncertainties that could affect our future results are included in the section titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Prospectus dated
|Selected Financial Information
(amounts in thousands)
|Three Months Ended
|Statement of Operations Items||2018||2017|
|Collaboration revenue – related party||$||45,495||$||1,672|
|Research and development||11,090||8,680|
|General and administrative||3,362||1,546|
|Total operating expenses||14,452||10,226|
|Operating income (loss)||31,043||(8,554||)|
|Total other income||169||142|
|Provision for income taxes||-||(214||)|
|Net income (loss)||$||31,212||$||(8,626||)|
|March 31,||December 31,|
|Selected Balance Sheet Items:||2018||2017|
|Cash, cash equivalents and marketable securities||$||93,822||$||63,309|
|Accounts payable and accrued expenses||11,564||13,058|
|Deferred revenue – related party||67,874||82,105|
|Total stockholders’ deficit||(20,979||)||(67,314||)|
Source: Surface Oncology, Inc.