New Collaboration with Merck Will Evaluate SRF388, Targeting IL-27, in Combination with KEYTRUDA® (pembrolizumab) in Patients with Solid Tumors
“The fourth quarter of 2020 was transformational for Surface. During this quarter, we provided encouraging clinical data from our lead candidates and validated our preclinical discovery capabilities with a second major outlicense agreement that provided the company with substantial financial flexibility for several years,” said
Recent Corporate Highlights:
March 9, 2021, Surface announced a clinical trial collaboration with Merck to evaluate the safety and efficacy of combining Surface’s SRF388, an investigational antibody therapy targeting IL-27, with Merck’s KEYTRUDA® (pembrolizumab), the first anti-PD-1 therapy approved in the United States. This combination will be studied as a component of the first-in-human Phase 1 study of SRF388 and will be evaluated in patients with solid tumors, with a focus on patients with liver cancer and kidney cancer.
- In December, Surface announced an agreement for GlaxoSmithKline (GSK) to exclusively license worldwide development and commercial rights to Surface Oncology’s preclinical program SRF813, a fully human IgG1 antibody targeting PVRIG (also known as CD112R), an inhibitory protein expressed on natural killer cells (NK cells) and T cells. Under the terms of the agreement, GSK made an
$85 millionupfront payment in December 2020. In addition, Surface Oncology may receive up to an additional $730 millionin future milestone payments, as well as be eligible to receive tiered royalties on global net sales.
- In November, Surface announced that both of its lead clinical programs, SRF617 (targeting CD39) and SRF388 (targeting IL-27), have achieved predefined criteria for advancement into combination and expansion stages of the ongoing Phase 1 trials. These criteria include acceptable safety profiles at biologically relevant doses, as well as demonstration of target engagement and meaningful pharmacodynamic activity in the ongoing Phase 1 trials.
April 1, 2021, Rob Ross, M.D., who has served as chief medical officer at Surface Oncologysince 2016, will become the company’s president and chief executive officer and will also be appointed to the board of directors. Rob will succeed current CEO Jeff Goater, who will assume the role of chairman of the Surface Oncology board of directors.
Selected Anticipated Near-term Corporate Milestones:
- Preclinical data presentations for SRF617 and SRF388 at the
American Association for Cancer Research (AACR) VirtualAnnual Meeting in April.
- Targeting the
American Society of Clinical Oncology (ASCO) VirtualAnnual Meeting in June for detailed clinical data presentations for SRF617 and SRF388.
- Investigational new drug (IND) filing for SRF813 anticipated in 2021.
Revenue recognized in the fourth quarter ended
Research and development (R&D) expenses were
General and administrative (G&A) expenses were
For the fourth quarter ended
Based upon our current operating plan, Surface continues to project cash runway sufficient through 2023.
Surface Oncology is an immuno-oncology company developing next-generation antibody therapies focused on the tumor microenvironment. Its pipeline includes two wholly-owned clinical-stage programs targeting CD39 (SRF617) and IL-27 (SRF388), as well as a preclinical program focused on depleting regulatory T cells via targeting CCR8 (SRF114). In addition, Surface has two partnerships with major pharmaceutical companies: a collaboration with Novartis targeting CD73 (NZV930; Phase 1) and a collaboration with GlaxoSmithKline targeting PVRIG (SRF813; preclinical). Surface’s novel cancer immunotherapies are designed to achieve a clinically meaningful and sustained anti-tumor response and may be used alone or in combination with other therapies. For more information, please visit www.surfaceoncology.com.
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 and SRF617 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 and SRF617, 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
||Twelve months ended
|Statement of Operations Items||2020||2019||2020||2019|
|Collaboration revenue - related party||$||—||$||439||$||38,592||$||15,360|
|Research and development||10,728||11,657||41,018||52,118|
|General and administrative||8,872||5,114||23,558||20,608|
|Total operating expenses||19,600||16,771||64,576||72,726|
|Income (loss) from operations||67,970||(16,332||)||61,586||(57,366||)|
|Interest and other income (expense), net||(622||)||378||(2,249||)||2,577|
|Net income (loss)||$||67,348||$||(15,954||)||$||59,337||$||(54,789||)|
|Net income (loss) per share attributable to common stockholders—basic||$||1.66||$||(0.57||)||$||1.67||$||(1.97||)|
|Weighted average common shares outstanding—basic||40,674,996||27,885,539||35,545,121||27,854,912|
|Net income (loss) per share attributable to common stockholders—diluted||$||1.56||$||(0.57||)||$||1.57||$||(1.97||)|
|Weighted average common shares outstanding—diluted||43,271,667||27,885,539||38,141,793||27,854,912|
|Selected Balance Sheet Items:||
|Cash, cash equivalents and marketable securities||$||175,141||$||105,161|
|Accounts payable and accrued expenses||12,122||11,396|
|Deferred revenue – related party||—||38,592|
|Total stockholders’ equity||155,747||56,666|
Source: Surface Oncology, Inc.