On May 11, 2017 RXi Pharmaceuticals Corporation (NASDAQ: RXII), a clinical-stage RNAi company developing innovative therapeutics that address significant unmet medical needs, today reported its financial results for the first quarter ended March 31, 2017, and provided a business update (Press release, RXi Pharmaceuticals, MAY 11, 2017, View Source [SID1234519063]).

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"During the first quarter of 2017, RXi has been integrating MirImmune into its existing R&D operations. Through careful planning and execution of this integration, the Company has been able to maintain its cash use in line with that of last year," said Dr. Geert Cauwenbergh, President and CEO of RXi Pharmaceuticals. He also commented that, "RXi has added two new executives to its senior management team who will be instrumental in driving the development of novel therapeutics. Dr. Gerrit Dispersyn as Chief Development Officer and Dr. Alexey Eliseev as Chief Business Officer will provide significant leadership in the new and exciting space of immuno-oncology and cell therapy, while we continue to advance our dermatology and ophthalmology trials toward our planned readouts later this year." He further added that, "Recently, RXi also announced that Dr. Pamela Pavco will retire this month. During her tenure as Chief Development Officer, she has been an integral part of the development of RXi’s technology platform and clinical programs. We are grateful that she will remain involved with the Company as part of its Scientific Advisory Board where her expertise in the field of oligonucleotides will continue to support the advancement of our development pipeline."

The Company will host a conference call today at 4:30 p.m. EDT to discuss financial results and provide an update on the Company. The webcast link will be available under the "Investors – Event Calendar" section of the Company’s website, www.rxipharma.com. The event may also be accessed by dialing toll-free in the United States +1 844-376-4678. International participants may access the event by dialing: +1 209-905-5958. An archive of the webcast will be available on the Company’s website approximately two hours after the presentation.

Select First Quarter 2017 Financial Highlights
Cash Position
At March 31, 2017, the Company had cash of $10.2 million, compared with $12.9 million at December 31, 2016. The Company believes that its existing cash should be sufficient to fund operations for at least the next twelve months.
Research and Development Expenses
Research and development expenses for the quarter ended March 31, 2017 were $1.3 million, which included less than $0.1 million of non-cash stock-based compensation expense, as compared with $1.3 million for the quarter ended March 31, 2016, which included $0.1 million of non-cash stock-based compensation expense.

Research and development expenses were consistent quarter over quarter, but did see slight increases due to the commencement of the Company’s new immunotherapy program with the acquisition of MirImmune Inc.

("MirImmune"), a privately-held biotechnology company that was engaged in the development of cancer immunotherapies, in January 2017, which were offset by a decrease in stock-based compensation expense.

Acquired In-process Research and Development
The Company had acquired in-process research and development expense of $3.0 million for the quarter ended March 31, 2017. There was no such expense for the three months ended March 31, 2016. The expense related to the Company’s acquisition of MirImmune in January 2017. Per the terms of the acquisition, the Company acquired all of the issued and outstanding capital stock of MirImmune in exchange for shares of the Company’s common stock and Series C Convertible Preferred Stock, which were subject to a 3% holdback for any purchase price adjustments. The fair value of the consideration given during the quarter totaling $3.0 million was expensed as in-process research and development expense. The fair value of the securities subject to the 3% holdback, which were released and issued on April 12, 2017, will be recorded as in-process research and development expense during the second quarter of 2017.

General and Administrative Expenses
General and administrative expenses for the quarter ended March 31, 2017 were $1.1 million, which included $0.1 million of non-cash stock-based compensation expense, as compared with $1.0 million for the quarter ended March 31, 2016, which included $0.2 million of non-cash stock-based compensation expense.
The increase in general and administrative expenses was due to an increase in employee headcount with the hire of the Company’s Chief Business Officer as part of the acquisition of MirImmune and an increase in legal fees, offset by a decrease in stock-based compensation expense.
Net Loss
Net loss for the three months ended March 31, 2017 was $5.5 million, compared with $2.2 million for the three months ended March 31, 2016. The increase in net loss was primarily driven by the one-time charge of $3.0 million of acquired in-process research and development expense related to the acquisition of MirImmune in January 2017.
Select First Quarter 2017 and Recent Corporate Highlights
Select Business and Corporate Highlights
Management Team: The Company announced that Dr. Pamela Pavco, RXi’s Chief Development Officer, will retire effective May 19, 2017. At that time, Dr. Pavco will join the Company’s Scientific Advisory Board where her expertise in the field of oligonucleotides and the development of RNAi therapeutics will continue to support RXi’s ongoing research and development initiatives.
On April 24, 2017, Dr. Gerrit Dispersyn was appointed as RXi’s new Chief Development Officer. Dr. Dispersyn brings a wealth of experience to RXi as an accomplished leader in clinical, product and business development.
Intellectual Property Estate: The Company has been diligent and proactive with its approach to broadly protect its valuable corporate assets by securing patent protection for its RNAi platform and Samcyprone, a small molecule that is a proprietary ointment formulation of diphenylcyclopropenone (DPCP).
Most recently, the Company was granted a patent by the Japan Patent Office (JPO) for the composition of matter of sd-rxRNAs targeting connective tissue growth factor (CTGF) for the treatment or prevention of fibrotic disorders, including but not limited to skin fibrosis and proliferative vitreoretinopathy. This patent includes the Company’s lead clinical candidate RXI-109, an sd-rxRNA therapeutic compound, which is currently being evaluated in Phase 2 clinical trials.
Our portfolio currently includes 79 issued patents and 60 pending applications. This includes coverage in the United States, Canada, Europe, Japan and other markets. In addition, Samcyprone has been granted orphan-drug designation for malignant melanoma stage IIb to IV. The Company’s intellectual property estate provides for numerous commercial, regional and strategic partnering opportunities.
Development Programs
Immuno-oncology: The Company’s ongoing program to develop cell-based immunotherapies to treat cancer is based on our proprietary self-delivering RNAi (sd-rxRNA) technology platform. RXi’s novel sd-rxRNA technology differs from natural and most synthetic RNA interference (RNAi) molecules in that they are chemically modified to allow for an easy internalization of the compounds by most types of cells and silencing of the targeted genes.
sd-rxRNA offers unprecedented flexibility in targeting immunosuppressive pathways with the potential to modulate multiple checkpoint genes in a single therapeutic treatment. The built-in delivery and therapeutic properties of sd-rxRNA lend themselves well for local therapeutic applications, such as ex vivo treatment of the immune cells. The ex vivo use of sd-rxRNA to pre-treat immune cells prior to infusion may prove advantageous as an immuno-therapeutic in that there is the potential to simultaneously reduce multiple checkpoints or targets, including both intracellular and extracellular targets, with little change to current protocols. As outlined at the beginning of the year in our 2017 Corporate Goals, we are actively working on multiple checkpoint-inhibiting sd-rxRNA compounds co-transfected in CAR T-cells in mouse models for solid tumors and conducting preclinical studies on the use of sd-rxRNA with tumor infiltrating lymphocytes (TILs) in melanoma. Data from this ongoing work is expected to be available in the second half of 2017.
RXI-109-1402 – Hypertrophic Scarring: The Company’s ongoing Phase 2 clinical trial, RXI-109-1402, is being conducted to evaluate its first clinical candidate RXI-109, an sd-rxRNA compound targeting connective tissue growth factor (CTGF) to reduce scar formation in the skin following scar revision surgery. The Company will provide a full read-out, for Cohorts 3 and 4, in the second half of 2017.
RXI-109-1501 – Retinal Scarring in Advanced Age-related Macular Degeneration (AMD): As in dermal scarring, CTGF is known to play a role in retinal scarring. Reduction of CTGF in the eye by RXI-109 treatment may reduce the formation of retinal fibrosis that often accompanies late stage AMD and contributes to permanent vision loss. Enrollment in the first two cohorts in the Company’s Phase 1/2 trial, RXI-109-1501, is complete. RXI-109 has been well-tolerated in the eye to date; enrollment into the third cohort at the next higher dose level is ongoing.
RXI-SCP-1502 – Treatment of Cutaneous Warts: Samcyprone, the Company’s second clinical candidate, is being evaluated in a Phase 2a clinical trial. RXI-SCP-1502 is a multi-center, multi-dose trial conducted in subjects with at least one cutaneous, plantar or periungual wart. The Company expects to share early read-outs in the second half of 2017.
Consumer/Functional Health Care: The Company presented an update on its consumer health program at the 76th annual meeting of the Society for Investigative Dermatology. RXI-231, an sd-rxRNA targeting tyrosinase, is in development as a cosmetic ingredient that may improve the appearance of uneven skin tone and pigmentation. RXi has developed a proprietary formulation that allows for the non-invasive penetration of sd-rxRNA compounds to the epidermal-dermal junction where the reduction of tyrosinase in the resident melanocytes would lead to a reduction of melanin. We are in the process of finalizing the first two protocols for testing in volunteers.
RXI-185, an sd-rxRNA targeting MMP1, is in development as a cosmetic ingredient that may improve the appearance of wrinkles, skin laxity or photo-aging. A study conducted in collaboration with DSM, showed that RXI-185 is capable of reducing MMP1 mRNA levels following topical administration in an ex vivo human skin model. A topical formulation of RXI-185 is currently in development to lessen the effects of photo-aging.

On May 11, 2017 Cellectar Biosciences, Inc. (Nasdaq: CLRB), (the "company"), an oncology-focused, clinical stage biotechnology company, reported financial results for first quarter of 2017 (Filing, Q1, Cellectar Biosciences, 2017, MAY 11, 2017, View Source [SID1234519059]). Management will host a teleconference and live webcast to review these results, including a review of corporate performance, at 4:30 PM ET today.

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Summary of Q1 and Q2 2017 Accomplishments to Date:

· Positive safety, tolerability and activity data through Cohort 3 of Phase 1 study of CLR 131 in multiple myeloma

· Initiation of fourth cohort of Phase 1 study of CLR 131 in multiple myeloma

· Initiation of NCI-supported Phase 2 clinical trial of CLR 131 in multiple myeloma and other hematologic malignancies

· Consolidation of intellectual property portfolio for CLR 131 in multiple myeloma following license agreement with Wisconsin Alumni Research Foundation

· Publication in Nature Reviews Clinical Oncology and presentation at Academic Surgical Congress, both regarding PDC platform

· Additional intellectual property protection for CLR 131 in solid tumors in the US

· Grant of US patent for CLR 124 in PET imaging

· Additional US method of use patents for CLR 1501, CLR 1502 and an additional CLR 1401-boron-dipyrromethene analog for the detection of multiple cancer types

· Japanese composition of matter patent for CLR 1501 and CLR 1502

· Additional Japanese method of use patents granted for CLR 131 and CLR 125 in cancer stem cells

· Appointment of John Friend as chief medical officer

· Appointment of Doug Swirsky and Fred Driscoll to the Cellectar Board of Directors




"We continue to advance the clinical development of our lead product candidate, CLR 131, now in a fourth cohort of a Phase 1 trial for multiple myeloma, and an NCI-supported Phase 2 study in hematological malignancies. We have also successfully worked to enhance our intellectual property portfolio to protect the value in our pipeline," said Jim Caruso, president and CEO of Cellectar Biosciences. "The additions to our management team and board underscore our commitment to progressing Cellectar strategically as we continue our clinical and preclinical development programs."

Summary of Q1 2017 Financial Results:

Research and development expenses were $1.9 million, an increase of $0.8 million from the same period the prior year, largely a result of the increase in activities surrounding the initiation of the company’s Phase 2 clinical trial of CLR 131 in hematologic malignancies in addition to the ongoing Phase 1 trial in relapse/refractory multiple myeloma. General and administrative expenses totaled $1.0 million, consistent with Q1 2016.

The operating loss was $2.8 million, compared to $2.0 million in 2016. Net loss for the first quarter of 2017 was $2.9 million, or $0.24 per share, compared to net income of $0.8 million, or $0.96 per share, for the first quarter of 2016.

As of March 31, 2017, Cellectar reported $11.2 million in cash and cash equivalents on hand, compared to $11.4 million in cash and cash equivalents as of December 31, 2016.

Finally, the company received approximately $3 million from warrants exercised during the quarter, which extends Cellectar’s available cash and cash equivalents to fund planned operations into the second quarter of 2018. This is an improvement from the previous guidance of funding into the first quarter 2018. Additional capital will be required for operations beyond the second quarter of 2018.

On May 11, 2017 VBL Therapeutics (Nasdaq:VBLT) reported new preclinical data indicating that treatment with ofranergene obadenovec (VB-111) augments the anti-tumor activity of a PD-L1 blocker in lung cancer and melanoma models (Press release, VBL Therapeutics, MAY 11, 2017, View Source [SID1234519057]). The data will be presented tomorrow, May 12, in a poster session at the 20th Annual Meeting of the American Society of Gene & Cell Therapy (ASGCT) (Free ASGCT Whitepaper), taking place in Washington, DC.


Immunotherapy with checkpoint inhibitors demonstrates remarkable efficacy in several cancers; yet, only a low percentage of patients seem to benefit from this class of treatment when given as a monotherapy. Several studies have shown that response rates are increased when checkpoint blockade is combined with other anti-cancer treatments. VB-111 is a biologic agent that is being currently studied in a Phase 3 clinical trial for recurrent glioblastoma (rGBM). VB-111 specifically targets angiogenic endothelial cells and promotes antitumor immune response. In the study to be presented at ASGCT (Free ASGCT Whitepaper), VB-111 was evaluated in combination with an anti-PD-L1 checkpoint inhibitor in lung and melanoma cancer models, indications for which PD-1 blockers are already marketed.

VBL’s data show that treatment with either VB-111 or anti-PD-L1 reduced tumor burden in mice induced with Lewis lung carcinoma (LLC), by 42% and 51% versus saline control, respectively; however, the combination of both agents resulted in an amplified effect (67% reduction versus control; p≤0.001), and similar results were seen in a melanoma model. In addition, treatment with VB-111 and anti-PD-L1 enhanced infiltration of CD8+ cells to lung tumors. A copy of the poster will be available on VBL’s website, beginning May 12.

"An important observation from our pre-clinical data in the LLC model was that the combination of VB-111 at a dose of 109 viral particles (VPs)/mouse, which is equivalent to the human therapeutic dose, with a PD-L1 blocker, yielded a tumor burden reduction similar to treatment with 1011 VPs/mouse, a 100-fold higher dose," said Eyal Breitbart, Ph.D., Vice President of Research and Operations at VBL. "Therefore, a combination with a checkpoint inhibitor may achieve much better anti-tumor activity than VB-111 alone," added Dr. Breitbart.

VB-111 is currently studied in the pivotal Phase 3 GLOBE trial in rGBM, comparing VB-111 in combination with Avastin (bevacizumab) to Avastin alone, which is being conducted in the US, Canada and Israel. Enrollment in the study, 256 patients in total, was completed earlier this year, five months ahead of schedule. The study is proceeding under a Special Protocol Assessment (SPA) granted by the FDA, with full endorsement by the Canadian Brain Tumor Consortium (CBTC). The Company expects to report interim data from the GLOBE trial in Q3-2017, with top-line results from the full dataset expected to be available in early 2018.

VBL plans to launch a Phase 3 study for VB-111 in combination with chemotherapy for platinum-resistant ovarian cancer in the second half of 2017. Launch of an exploratory clinical study on VB-111 in combination with a checkpoint inhibitor in lung cancer is also expected by year-end 2017.

About Ofranergene Obadenovec (VB-111)
Ofranergene obadenovec is a unique biologic agent that uses a dual mechanism to target solid tumors. Based on a non-integrating, non-replicating, Adeno 5 vector, ofranergene obadenovec utilizes VBL’s proprietary Vascular Targeting System (VTS) to target the tumor vasculature for cancer therapy. Unlike anti-VEGF or TKIs, ofranergene obadenovec does not aim to block a specific pro-angiogenic pathway; instead, it uses an angiogenesis-specific sensor (VBL’s PPE-1-3x proprietary promoter) to specifically induce cell death in angiogenic endothelial cells in the tumor milieu. This mechanism retains activity regardless of baseline tumor mutations or the identity of the pro-angiogenic factors secreted by the tumor and shows activity even after failure of prior treatment with other anti-angiogenics. Moreover, ofranergene obadenovec induces specific anti-tumor immune response, which is accompanied by recruitment of CD8 T-cells and apoptosis of tumor cells.

Ofranergene obadenovec completed a Phase 2 study in rGBM, which showed a statistically significant improvement in overall survival in patients treated with ofranergene obadenovec through progression, compared to either patients treated with ofranergene obadenovec followed by bevacizumab alone, or to historical bevacizumab data. In a Phase 2 trial for recurrent platinum-resistant ovarian cancer, ofranergene obadenovec demonstrated a statistically significant increase in overall survival and 60% durable response rate (as measured by reduction in CA-125), approximately twice the historical response with bevacizumab plus chemotherapy in ovarian cancer. In a Phase 2 study in recurrent, iodine-resistant differentiated thyroid cancer, ofranergene obadenovec met the primary endpoint demonstrating disease stabilization with a positive safety profile, along with a dose-response and evidence of an overall survival benefit. Ofranergene obadenovec has received Fast Track Designation for recurrent glioblastoma in the U.S. and orphan drug status for glioblastoma in both the U.S. and EU.

On May 11, 2017 TRACON Pharmaceuticals (NASDAQ:TCON), a clinical stage biopharmaceutical company focused on the development and commercialization of novel targeted therapeutics for cancer, wet age-related macular degeneration (AMD) and fibrotic diseases, reported that preclinical data indicating the potential clinical utility of targeting endoglin in acute myeloid leukemia (AML) and B-cell acute lymphoblastic leukemia (B-cell ALL), was published in the May 4, 2017 issue of Blood (Volume 129, Number 19, pages 2526-2536), a weekly medical journal of the American Society of Hematology (ASH) (Free ASH Whitepaper) (Press release, Tracon Pharmaceuticals, MAY 11, 2017, View Source [SID1234519056]).

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Dr. Rita Perlingeiro, Professor of Medicine, and colleagues of the University of Minnesota, along with collaborators at the Federal University of Bahia (Salvador, Brazil) and the Laboratory for the Diagnosis of Onco-Hematological Disorders (Curitiba, Brazil), identified endoglin expression on the majority of blasts from patients with AML and B-cell ALL. These endoglin expressing blasts were shown to have superior leukemogenic activity. Furthermore, the researchers demonstrated that TRACON’s endoglin antibody, TRC105, prevented the engraftment of primary AML blasts, and inhibited leukemic progression following disease establishment in mice. In both AML and B-cell ALL, TRC105 synergized with reduced intensity myeloablation to inhibit leukemogenesis in the mouse model.

"We have been studying the function of endoglin in hematopoiesis for more than a decade, and the consistent expression of this receptor in the majority of acute leukemias was intriguing. Our hypothesis that endoglin expression was linked to leukemia-forming activity was proven to be true, and it was even more rewarding to witness the robust anti-leukemogenic effect of blocking endoglin signalling with TRC105, even when leukemia had already been established in the mouse," said Dr. Perlingeiro. "We are thrilled with the potential of our basic research to contribute to the development of a new line of therapy for patients with AML and B-cell ALL."

"We are pleased to see that this promising research, conducted by Dr. Perlingeiro and her collaborators, has been published in Blood," said Charles Theuer, M.D., Ph.D., President and CEO of TRACON. "AML and B-cell ALL represent hematologic malignancies with high unmet need and, as this data indicate, the potential utility of directly targeting endoglin may represent an additional development opportunity for TRC105."

About Carotuximab (TRC105)

TRC105 is a novel, clinical stage antibody to endoglin, a protein overexpressed on proliferating endothelial cells that is essential for angiogenesis, the process of new blood vessel formation. TRC105 is currently being studied in one Phase 3 and multiple Phase 2 clinical trials sponsored by TRACON or the National Cancer Institute for the treatment of solid tumors in combination with VEGF inhibitors. TRC105 has received orphan designation for the treatment of soft tissue sarcoma in both the U.S. and EU. The ophthalmic formulation of TRC105, DE-122, is currently in a Phase 1/2 trial for patients with wet AMD. TRC205, a second generation antibody to endoglin, is undergoing preclinical testing in models of fibrosis. For more information about the clinical trials, please visit TRACON’s website at www.traconpharma.com/clinical_trials.php.