Medicure Reports Financial Results for Quarter Ended September 30, 2020

On November 11, 2020 Medicure Inc. ("Medicure" or the "Company") (TSXV:MPH) (OTC:MCUJF), a cardiovascular pharmaceutical company, reported its results from operations for the quarter ended September 30, 2020 (Press release, Medicure, NOV 11, 2020, View Source [SID1234570615]).

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Quarter Ended September 30, 2020 Highlights:

Recorded total net revenue from the sale of products of $3.5 million during the quarter ended September 30, 2020 compared to $5.5 million for the quarter ended September 30, 2019 and $2.7 million for the quarter ended June 30, 2020 and;
Recorded total net revenue from the sale of AGGRASTAT of $3.4 million during the quarter ended September 30, 2020 compared to $5.3 million for the quarter ended September 30, 2019 and $2.6 million for the quarter ended June 30, 2020 and;
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA1) for the quarter ended September 30, 2020 was $4,000 compared to adjusted EBITDA of negative $319,000 for the quarter ended September 30, 2019 and $263,000 for the quarter ended June 30, 2020 and
Net loss for the quarter ended September 30, 2020 was $1.0 million compared to $599,000 for the quarter ended September 30, 2019 and net income of $19,000 for the quarter ending June 30, 2020;
Financial Results

The decrease in AGGRASTAT revenues when compared to the same periods in the previous year, as described above, is the result of decreases in the volume of the AGGRASTAT sold in 2020 when compared to 2019, due mainly to less procedures being performed, primarily as a result of the COVID-19 pandemic. In addition, the Company continues to experience pricing pressures from competitors which contributed to the decline in revenues from AGGRASTAT.

ZYPITAMAG contributed $105,000 of revenue for the three months ended September 30, 2020 compared to $78,000 for the three months ended September 30, 2019 and $371,000 for the nine months ended September 30, 2020 compared to $87,000 for the nine months ended September 30, 2019. With improved insurance coverage, the launch of a direct to patient online pharmacy program, including direct to patient marketing, the Company has seen some growth in interest in ZYPITAMAG during 2020. COVID-19 has provided some challenges with access to physicians, however the Company continues to pursue innovative marketing strategies to grow the usage of the product.

Additionally, sodium nitroprusside (SNP), which was first sold commercially during 2020, contributed $5,000 and $53,000, respectively, during the three and nine months ended September 30, 2020. The Company did not earn any revenues from ReDSTM during the three months ended September 30, 2020 compared to net revenue of $117,000 for the three months ended September 30, 2019. Revenues from ReDSTM for the nine months ended September 30, 2020 totaled $89,000 compared to net revenue of $272,000 for the nine months ended September 30, 2019.

Adjusted EBITDA for the three months ended September 30, 2020 was $4,000 compared to negative $319,000 for the three months ended September 30, 2019. The increase in adjusted EBITDA for the three months ended September 30, 2020 is the result of lower selling expenses, partially offset by lower revenues when compared to the same period in 2019.

Adjusted EBITDA for the nine months ended September 30, 2020 was negative $1.0 million compared to negative $1.9 million for the nine months ended September 30, 2019. The improvement in adjusted EBITDA for the nine months ended September 30, 2020 is the result of lower selling and research and development expenses, partially offset by lower revenues when compared to the same period in 2019.

During the three and nine months ended September 30, 2020, the Company recorded $404,000 and $729,000, respectively, in government assistance resulting from the Canada Emergency Wage Subsidy. The funding has been recorded as a reduction of the related salary expenditures with $311,000 and $559,000, respectively, recorded within selling expenses, $52,000 and $95,000, respectively, recorded within general and administrative expenses and $41,000 and $75,000, respectively, recorded within research and development expenses.

Net loss for the three months ended September 30, 2020 was $1.0 million or $0.10 per share compared to net loss of $599,000 or $0.04 per share for the three months ended September 30, 2019. The change in the net income for the three months ended September 30, 2020 is the result of lower revenues, partially offset by lower selling and research and development expenses and changes in foreign exchange gains and losses when compared to the three months ended September 30, 2019.

Net loss for the nine months ended September 30, 2020 was $2.5 million or $0.23 per share compared to $4.3 million or $0.28 per share for the nine months ended September 30, 2019. The change in the net loss for the nine months ended September 30, 2020 is the result of lower revenues and higher cost of goods sold primarily from increased amortization, partially offset by lower selling and research and development expenses and changes in foreign exchange gains and losses when compared to the nine months ended September 30, 2019.

At September 30, 2020, the Company had unrestricted cash totaling $11.9 million down from the $13.0 million of unrestricted cash held as of December 31, 2019. Cash flows used in operating activities for the nine months ended September 30, 2020 totaled $1.1 million compared to $10.9 million for the nine months ended September 30, 2019.

All amounts referenced herein are in Canadian dollars unless otherwise noted.

Notes

(1) The Company defines EBITDA as "earnings before interest, taxes, depreciation, amortization and other income or expense" and Adjusted EBITDA as "EBITDA adjusted for non–cash and non-recurring items". The terms "EBITDA" and "Adjusted EBITDA", as it relates to the three and nine months ended September 30, 2020 and 2019 results prepared using IFRS, do not have any standardized meaning according to IFRS. It is therefore unlikely to be comparable to similar measures presented by other companies.

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Webcast: This conference call will be webcast live over the internet and can be accessed from the Medicure investor relations page at the following link: View Source

You may request international country-specific access information by e-mailing the Company in advance. Management will accept and answer questions related to the financial results and operations during the question-and-answer period at the end of the conference call. A recording of the call will be available following the event at the Company’s website.

GSK highlights progress from the BLENREP (belantamab mafodotin-blmf) development programme in multiple myeloma at ASH Annual Meeting

On November 11, 2020 GlaxoSmithKline (GSK) plc reported that it will present new data on its first-in-class anti-BCMA (B-cell maturation antigen) multiple myeloma therapy BLENREP (belantamab mafodotin-blmf) at the upcoming American Society of Hematology (ASH) (Free ASH Whitepaper) Annual Meeting and Exposition, to be hosted virtually from 5-8 December 2020 (Press release, GlaxoSmithKline, NOV 11, 2020, View Source [SID1234570609]). The 13 abstracts include data from GSK’s extensive DREAMM (DRiving Excellence in Approaches to Multiple Myeloma) clinical trial programme, which is evaluating belantamab mafodotin in different lines of therapy, and in combination with standard of care and novel therapies.

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Dr Axel Hoos, Senior Vice President and Head of Oncology R&D, GSK said: "BLENREP is a significant advance for patients with relapsed or refractory multiple myeloma who previously had limited treatment options available. We believe that via our ongoing research on belantamab mafodotin in combination with other agents, and in earlier lines of treatment, we have the potential to continue to address the unmet needs of multiple myeloma patients and redefine the way this cancer is treated."

Key studies being presented at ASH (Free ASH Whitepaper) will demonstrate the potential of belantamab mafodotin in combination with standard therapies in earlier lines of treatment and include:

The DREAMM-6 analysis (poster #1419) will report outcomes from the combination of belantamab mafodotin with bortezomib and dexamethasone in patients whose disease has become refractory or relapsed after one or more prior lines of treatment.
ALGONQUIN (oral presentation #725), a supported collaborative study being led by the Canadian Myeloma Research Group, is evaluating the combination of belantamab mafodotin with pomalidomide and dexamethasone in relapsed or refractory patients who were previously treated with two or more prior lines of treatment that must have included lenalidomide and a proteasome inhibitor.
BLENREP was approved earlier this year in the US and EU for the treatment of patients with relapsed/refractory multiple myeloma who have received at least four prior therapies including an anti-CD38 monoclonal antibody, a proteasome inhibitor, and an immunomodulatory agent.

Additional data, including new analyses from the pivotal DREAMM-2 study will further the understanding of the safety and tolerability of belantamab mafodotin, including the management of keratopathy/microcyst-like epithelial changes or MECs. The DREAMM-2 study served as the basis of the US and EU approvals. The list of GSK-sponsored presentations at the ASH (Free ASH Whitepaper) meeting include:

DREAMM Analyses

Abstract Name

Presenter

Presentation Details

DREAMM-2: Single-Agent Belantamab Mafodotin (Belamaf) in Patients With Relapsed/Refractory Multiple Myeloma (RRMM) – 1-Year Outcomes by Prior Therapies

S. Lonial

Poster #1417

Exposure–Response (E-R) for Ocular Safety Endpoints for Belantamab Mafodotin (Belamaf), a B-Cell Maturation Antigen (BCMA)-Targeting Agent, in Patients with Relapsed/Refractory Multiple Myeloma (RRMM) in the DREAMM-2 Study

G. Ferron-Brady

Poster #1420

DREAMM-2: Single-Agent Belantamab Mafodotin (Belamaf) Effects on Patient-Reported Outcome (PRO) Measures in Patients with Relapsed/Refractory Multiple Myeloma (RRMM)

R. Popat

Poster #2278

Infusion-Related Reactions (IRRs) in the DREAMM-2 Study of Single-Agent Belantamab Mafodotin (Belamaf) in Patients With Relapsed/Refractory Multiple Myeloma (RRMM)

A. Nooka

Poster #3221

Recovery of Ocular Events with Longer-term Follow-up in the DREAMM-2 Study of Single-Agent Belantamab Mafodotin (Belamaf) in Patients with Relapsed or Refractory Multiple Myeloma (RRMM)

S. Lonial

Poster #3224

Patient-Reported Experiences During and Following Treatment with Belantamab Mafodotin (Belamaf) for Relapsed/Refractory Multiple Myeloma (RRMM) in the DREAMM-2 Study

L. Eliason

Poster #3248

DREAMM-5 Platform Trial: Belantamab Mafodotin (Belamaf) in Combination With 4 Different Novel Agents in Patients With Relapsed/Refractory Multiple Myeloma (RRMM)

P. Richardson

Poster #2299

DREAMM-7: A Phase III Study of the Efficacy and Safety of Belantamab Mafodotin (Belamaf) with Bortezomib, and Dexamethasone (B-Vd) in Patients with Relapsed/Refractory Multiple Myeloma (RRMM)

R. Rifkin

Poster #3247

DREAMM-8: A Phase III Study of the Efficacy and Safety of Belantamab Mafodotin (Belamaf) with Pomalidomide and Dexamethasone (B-Pd) in Patients with Relapsed/Refractory Multiple Myeloma (RRMM)

S. Trudel

Poster #2302

Real-World Multiple Myeloma Data

Abstract Name

Presenter

Presentation Details

Population-level Projections for Multiple Myeloma Patients by Line of Therapy in the USA

G. Kanas

Poster #2300

About multiple myeloma
Multiple myeloma is the second most common blood cancer in the US and is generally considered treatable, but not curable.[1] In the US, more than 32,000 people are estimated to be diagnosed with multiple myeloma this year and nearly 13,000 people will die from the disease.[2] Research into new therapies is needed as multiple myeloma commonly becomes refractory to available treatments.[3]

About B-cell maturation antigen (BCMA)

The normal function of BCMA is to promote plasma cell survival by transduction of signals from two known ligands, BAFF (B-cell activating factor) and APRIL (a proliferation-inducing ligand). This pathway has been shown to be important for myeloma cell growth and survival. BCMA expression is limited to B cells at later stages of development. BCMA is expressed at varying levels in myeloma patients and BCMA membrane expression is universally detected in myeloma cell lines.[4]

About BLENREP

BLENREP is an antibody drug conjugate comprising a humanised anti-B cell maturation antigen (BCMA) monoclonal antibody conjugated to the cytotoxic agent auristatin F via non-cleavable linker. The drug linker technology is licensed from Seagen; monoclonal antibody is produced using POTELLIGENT Technology licensed from BioWa.

IMPORTANT US SAFETY INFORMATION FOR BLENREP

WARNING: OCULAR Toxicity

BLENREP caused changes in the corneal epithelium resulting in changes in vision, including severe vision loss and corneal ulcer, and symptoms such as blurred vision and dry eyes.

Conduct ophthalmic exams at baseline, prior to each dose, and promptly for worsening symptoms. Withhold BLENREP until improvement and resume, or permanently discontinue, based on severity.

Because of the risk of ocular toxicity, BLENREP is available only through a restricted program under a Risk Evaluation and Mitigation Strategy (REMS) called the BLENREP REMS.

WARNINGS AND PRECAUTIONS

Ocular Toxicity: Ocular adverse reactions occurred in 77% of the 218 patients in the pooled safety population. Ocular adverse reactions included keratopathy (76%), changes in visual acuity (55%), blurred vision (27%), and dry eye (19%). Among patients with keratopathy (n = 165), 49% had ocular symptoms, 65% had clinically relevant visual acuity changes (decline of 2 or more lines on Snellen Visual Acuity in any eye), and 34% had both ocular symptoms and visual acuity changes.

Keratopathy: Keratopathy was reported as Grade 1 in 7% of patients, Grade 2 in 22%, Grade 3 in 45%, and Grade 4 in 0.5% per the KVA scale. Cases of corneal ulcer (ulcerative and infective keratitis) have been reported. Most keratopathy events developed within the first 2 treatment cycles (cumulative incidence of 65% by Cycle 2). Of the patients with Grade 2 to 4 keratopathy (n = 149), 39% recovered to Grade 1 or lower after median follow-up of 6.2 months. Of the 61% who had ongoing keratopathy, 28% were still on treatment, 9% were in follow-up, and in 24% the follow-up ended due to death, study withdrawal, or lost to follow-up. For patients in whom events resolved, the median time to resolution was 2 months (range: 11 days to 8.3 months).

Visual Acuity Changes: A clinically significant decrease in visual acuity of worse than 20/40 in the better-seeing eye was observed in 19% of the 218 patients and of 20/200 or worse in the better-seeing eye in 1.4%. Of the patients with decreased visual acuity of worse than 20/40, 88% resolved and the median time to resolution was 22 days (range: 7 days to 4.2 months). Of the patients with decreased visual acuity of 20/200 or worse, all resolved and the median duration was 22 days (range: 15 to 22 days).

Monitoring and Patient Instruction: Conduct ophthalmic examinations (visual acuity and slit lamp) at baseline, prior to each dose, and promptly for worsening symptoms. Perform baseline examinations within 3 weeks prior to the first dose. Perform each follow-up examination at least 1 week after the previous dose and within 2 weeks prior to the next dose. Withhold BLENREP until improvement and resume at same or reduced dose, or consider permanently discontinuing based on severity. Advise patients to use preservative-free lubricant eye drops at least 4 times a day starting with the first infusion and continuing until end of treatment. Avoid use of contact lenses unless directed by an ophthalmologist. Changes in visual acuity may be associated with difficulty for driving and reading. Advise patients to use caution when driving or operating machinery. BLENREP is only available through a restricted program under a REMS.

BLENREP REMS: BLENREP is available only through a restricted program under a REMS called the BLENREP REMS because of the risks of ocular toxicity. Notable requirements of the BLENREP REMS include the following:

Prescribers must be certified with the program by enrolling and completing training in the BLENREP REMS.
Prescribers must counsel patients receiving BLENREP about the risk of ocular toxicity and the need for ophthalmic examinations prior to each dose.
Patients must be enrolled in the BLENREP REMS and comply with monitoring.
Healthcare facilities must be certified with the program and verify that patients are authorized to receive BLENREP.
Wholesalers and distributers must only distribute BLENREP to certified healthcare facilities.
Further information is available at www.BLENREPREMS.com and 1-855-209-9188.

Thrombocytopenia: Thrombocytopenia occurred in 69% of 218 patients in the pooled safety population, including Grade 2 in 13%, Grade 3 in 10%, and Grade 4 in 17%. The median time to onset of the first thrombocytopenic event was 26.5 days. Thrombocytopenia resulted in dose reduction, dose interruption, or discontinuation in 9%, 2.8%, and 0.5% of patients, respectively. Grade 3 to 4 bleeding events occurred in 6% of patients, including Grade 4 in 1 patient. Fatal adverse reactions included cerebral hemorrhage in 2 patients. Perform complete blood cell counts at baseline and during treatment as clinically indicated. Consider withholding and/or reducing the dose based on severity.

Infusion-Related Reactions: Infusion-related reactions occurred in 18% of 218 patients in the pooled safety population, including Grade 3 in 1.8%. Monitor patients for infusion-related reactions. For Grade 2 or 3 reactions, interrupt the infusion and provide supportive treatment. Once symptoms resolve, resume at a lower infusion rate. Administer premedication for all subsequent infusions. Discontinue BLENREP for life-threatening infusion-related reactions and provide appropriate emergency care.

Embryo-Fetal Toxicity: Based on its mechanism of action, BLENREP can cause fetal harm when administered to a pregnant woman because it contains a genotoxic compound (the microtubule inhibitor, monomethyl auristatin F [MMAF]) and it targets actively dividing cells. Advise pregnant women of the potential risk to a fetus. Advise females of reproductive potential to use effective contraception during treatment with BLENREP and for 4 months after the last dose. Advise males with female partners of reproductive potential to use effective contraception during treatment with BLENREP and for 6 months after the last dose.

ADVERSE REACTIONS

The pooled safety population described in Warnings and Precautions reflects exposure to BLENREP at a dosage of 2.5 mg/kg or 3.4 mg/kg (1.4 times the recommended dose) administered intravenously once every 3 weeks in 218 patients in DREAMM-2. Of these patients, 194 received a liquid formulation (not the approved dosage form) rather than the lyophilized powder. Among the 218 patients, 24% were exposed for 6 months or longer.

The safety of BLENREP as a single agent was evaluated in DREAMM-2. Patients received BLENREP at the recommended dosage of 2.5 mg/kg administered intravenously once every 3 weeks (n = 95). Among these patients, 22% were exposed for 6 months or longer.

Serious adverse reactions occurred in 40% of patients who received BLENREP. Serious adverse reactions in >3% of patients included pneumonia (7%), pyrexia (6%), renal impairment (4.2%), sepsis (4.2%), hypercalcemia (4.2%), and infusion-related reactions (3.2%). Fatal adverse reactions occurred in 3.2% of patients, including sepsis (1%), cardiac arrest (1%), and lung infection (1%).

Permanent discontinuation due to an adverse reaction occurred in 8% of patients who received BLENREP; keratopathy (2.1%) was the most frequent adverse reaction resulting in permanent discontinuation.

Dosage interruptions due to an adverse reaction occurred in 54% of patients who received BLENREP. Adverse reactions which required a dosage interruption in >3% of patients included keratopathy (47%), blurred vision (5%), dry eye (3.2%), and pneumonia (3.2%).

Dose reductions due to an adverse reaction occurred in 29% of patients. Adverse reactions which required a dose reduction in >3% of patients included keratopathy (23%) and thrombocytopenia (5%).

The most common adverse reactions (≥20%) were keratopathy (71%), decreased visual acuity (53%), nausea (24%), blurred vision (22%), pyrexia (22%), infusion-related reactions (21%), and fatigue (20%). The most common Grade 3 or 4 (≥5%) laboratory abnormalities were lymphocytes decreased (22%), platelets decreased (21%), hemoglobin decreased (18%), neutrophils decreased (9%), creatinine increased (5%), and gamma-glutamyl transferase increased (5%).

USE IN SPECIFIC POPULATIONS

Lactation: There is no data on the presence of belantamab mafodotin-blmf in human milk or the effects on the breastfed child or milk production. Because of the potential for serious adverse reactions in the breastfed child, advise women not to breastfeed during treatment with BLENREP and for 3 months after the last dose.

Females and Males of Reproductive Potential: BLENREP can cause fetal harm when administered to pregnant women. There are no available data on the use of BLENREP in pregnant women to evaluate for drug-associated risk. No animal reproduction studies were conducted with BLENREP.

Pregnancy Testing: Pregnancy testing is recommended for females of reproductive potential prior to initiating BLENREP.

Infertility: Based on findings in animal studies, BLENREP may impair fertility in females and males. The effects were not reversible in male rats but were reversible in female rats.

Geriatric Use: Of the 218 patients who received BLENREP in DREAMM-2, 43% were aged 65 to less than 75 years and 17% were aged 75 years and older. Keratopathy occurred in 80% of patients aged less than 65 years and 73% of patients aged 65 years and older. Among the patients who received BLENREP at the 2.5-mg/kg dose in DREAMM-2 (n = 95), keratopathy occurred in 67% of patients aged less than 65 years and 73% of patients aged 65 years and older.

Renal Impairment: No dose adjustment is recommended for patients with mild or moderate renal impairment (estimated glomerular filtration rate [eGFR] 30 to 89 mL/min/1.73m2 as estimated by the Modification of Diet in Renal Disease [MDRD] equation). The recommended dosage has not been established in patients with severe renal impairment (eGFR 15 to 29 mL/min/1.73 m2) or end-stage renal disease (ESRD) with eGFR <15 mL/min/1.73 m2 not on dialysis or requiring dialysis.

Hepatic Impairment: No dose adjustment is recommended for patients with mild hepatic impairment (total bilirubin ≤upper limit of normal [ULN] and aspartate aminotransferase (AST) >ULN or total bilirubin 1 to ≤1.5 × ULN and any AST). The recommended dosage of BLENREP has not been established in patients with moderate or severe hepatic impairment (total bilirubin >1.5 × ULN and any AST).

INDICATION

BLENREP is indicated for the treatment of adults with relapsed or refractory multiple myeloma who have received at least 4 prior therapies, including an anti-CD38 monoclonal antibody, a proteasome inhibitor, and an immunomodulatory agent.

This indication is approved under accelerated approval based on response rate. Continued approval for this indication may be contingent upon verification and description of clinical benefit in a confirmatory trial(s).

The full Prescribing Information, including BOXED WARNING and Medication Guide, is available here.

GSK in Oncology

GSK is focused on maximising patient survival through transformational medicines. GSK’s pipeline is focused on immuno-oncology, cell therapy, cancer epigenetics and synthetic lethality. Our goal is to achieve a sustainable flow of new treatments based on a diversified portfolio of investigational medicines utilising modalities such as small molecules, antibodies, antibody-drug conjugates and cell therapy, either alone or in combination.

Five Prime Presents First Preclinical Data on Anti-CCR8 Antibody FPA157

On November 11, 2020 Five Prime Therapeutics, Inc. (NASDAQ: FPRX) reported the first preclinical data from its anti-CCR8 FPA157 program at The Society for Immunotherapy of Cancer (SITC) (Free SITC Whitepaper) 35th Anniversary Annual Meeting & Pre-Conference Programs (SITC 2020) (Press release, Five Prime Therapeutics, NOV 11, 2020, View Source [SID1234570607]).

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The poster, "Development of FPA157, an anti-CCR8 depleting antibody engineered to preferentially eliminate tumor-infiltrating T regulatory cells," was presented in a late-breaker live Q&A session and is available here.

Key highlights from the poster included:

CCR8 expression is highly restricted to T regulatory (Treg) cells within the tumor
Preclinical efficacy studies demonstrate that anti-CCR8 antibody treatment depletes CCR8+ Tregs in the tumor microenvironment while sparing peripheral Treg subsets
Anti-CCR8 treatment elicits the development of robust anti-tumor memory responses
FPA157 leads to potent natural killer (NK) cell-dependent killing of CCR8+ target cells
"Preclinical data for FPA157 suggest that selective depletion of regulatory T cells within the tumor— without affecting peripheral Tregs—is a promising and exciting therapeutic pathway to pursue," said Andrew Rankin, PhD, Vice President of Research. "This is the first time we are publicly sharing information about the CCR8 inhibitor antibody in the Five Prime immuno-oncology pipeline and to do so at SITC (Free SITC Whitepaper) is very rewarding. We are eager to further investigate the potential of FPA157 in the clinic."

There will be two live Q&A sessions with poster author Edwina Naik, PhD, Associate Director, Immuno-Oncology Research. The first is today, November 11, 2020 from 5:15-5:45pm EST and the second is on November 13, 2020 from 4:40-5:10pm EST.

About FPA157

FPA157 is a monoclonal antibody targeting CCR8 that is designed to enhance antibody-dependent cell-mediated cytotoxicity (ADCC) and deplete the T regulatory cell (Treg) population in the tumor microenvironment. Tregs inhibit anti-tumoral immune responses and act through multiple suppressive mechanisms.1,2 FPA157 is part of the Five Prime immuno-oncology antibody pipeline and is undergoing IND-enabling studies.

Ascendis Pharma A/S to Host Virtual Oncology R&D Day on Friday, November 20

On November 11, 2020 Ascendis Pharma A/S (Nasdaq: ASND), a biopharmaceutical company that utilizes its innovative TransCon technologies to create product candidates that address unmet medical needs, reported that the company will host a virtual Oncology R&D Day on Friday, November 20, 2020 (Press release, Ascendis Pharma, NOV 11, 2020, View Source [SID1234570606]).

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Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

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The event will provide an overview on the company’s strategy to apply the TransCon technology platform, which has been clinically validated in endocrinology rare disease, to our second therapeutic area of oncology to create product opportunities that have the potential to represent a paradigm shift in treating patients with cancer.

The event will include updates on Ascendis’ two leading oncology programs: TransCon TLR7/8 Agonist and TransCon IL-2 β/γ, for long-lasting activation of Toll-like receptor (TLR)7/8 or interleukin-2 ( IL-2) receptor β/γ, respectively.

Oncology R&D Day Conference Call and Webcast information

Ascendis Pharma will host a conference call and webcast on Friday, November 20, 2020 at 12:00 p.m. Eastern Time (ET) to provide an overview and update the company’s oncology product pipeline. Details include:

A live webcast of the conference call will be available on the Investors and News section of the Ascendis Pharma website at www.ascendispharma.com. A webcast replay will also be available on this website shortly after conclusion of the event for 30 days.

MorphoSys Reports Nine Months and Third Quarter 2020 Results

On November 11, 2020 MorphoSys AG (FSE: MOR; Prime Standard Segment; MDAX & TecDAX; NASDAQ: MOR) reported that results for the first nine months and third quarter of 2020 (Press release, MorphoSys, NOV 11, 2020, View Source [SID1234570604]).

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Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

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Financial Results for the First Nine Months of 2020

Group revenue in the first nine months of 2020 totaled € 291.7 million (9M 2019: € 60.7 million)
Monjuvi(R) (tafasitamab-cxix) delivered Q3 sales of US$ 5.0 million (€ 4.4 million) since launch in mid-August 2020
Royalties were € 30.3 million (9M 2019: € 23.0 million)
EBIT amounted to € 101.8 million (9M 2019: € -56.3 million)
Liquidity equaled € 987.2 million on September 30, 2020 (December 31, 2019: € 357.4 million); pro-forma liquidity end of September, including the convertible bond issuance in October: approx. € 1.3 billion
Financial guidance for 2020 increased: Group revenues in the range of € 317 to € 327 million (previously: € 280 to € 290 million) and an EBIT in the range of € 10 to € 20 million (previously: € -15 to € +5 million). R&D expenses are expected to remain unchanged in the range of € 130 to € 140 million

Corporate and Program Updates for the Third Quarter

Monjuvi(R) (tafasitamab-cxix)

U.S. FDA approved Monjuvi(R) (tafasitamab-cxix) in the U.S. in combination with lenalidomide for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL) not otherwise specified, including DLBCL arising from low grade lymphoma, and who are not eligible for autologous stem cell transplant on July 31, 2020
First patient dosed on August 13 with Monjuvi(R) (tafasitamab-cxix)
Monjuvi(R) (tafasitamab-cxix) included in the latest National Comprehensive Cancer Network(R) Clinical Practice Guidelines (NCCN Guidelines(R)) in Oncology for B-cell lymphomas on August 18
Effective coverage of key accounts as well as leading share of voice achieved

Felzartamab (MOR202)

M-PLACE study in membranous nephropathy ongoing; the safety run-in is about to be completed and the full enrollment phase will open
MOR210/TJ210

U.S. FDA cleared the Investigational New Drug application (IND) for MorphoSys’ investigational human anti-C5aR1 antibody MOR210/TJ210 for the treatment of patients suffering from relapsed or refractory advanced solid tumors in September 2020. The phase 1 clinical trial is expected to begin in Q4 2020
Tremfya(R) (guselkumab)

U.S. FDA approval of Tremfya(R) (guselkumab) as a treatment for adult patients with active psoriatic arthritis in July 2020
Corporate Developments

Jens Holstein, Chief Financial Officer (CFO), had decided to step down as CFO and member of the company’s Management Board. A search is ongoing to identify the future Chief Financial Officer
Significant Events After the End of the Third Quarter

On October 13, 2020, MorphoSys placed successfully unsubordinated, unsecured convertible bonds due 2025 in an aggregate principal amount of € 325 million. The bonds will be convertible into new and/or existing no-par value ordinary bearer shares of MorphoSys
On November 11, 2020, MorphoSys and Cherry Biolabs, a spin-off from the University Hospital Würzburg, announced that they entered into a licensing agreement granting MorphoSys the rights to apply Cherry Biolabs’ innovative, multispecific Hemibody technology to six exclusive targets. This Hemibody technology, in combination with MorphoSys’ antibody know-how and technologies, offers the potential to generate novel T-cell engaging medicines with higher precision and better safety profiles for the treatment of cancer patients. Financial details were not disclosed
On November 11, 2020, MorphoSys announced a clinical collaboration with Xencor and Incyte to develop tafasitamab in combination with plamotamab, Xencor’s clinical stage CD20xCD3 targeting bispecific antibody. This collaboration will investigate the combination of tafasitamab with plamotamab in r/r DLBCL, first-line DLBCL and r/r FL. Xencor will sponsor the study with MorphoSys and Incyte providing access to tafasitamab
In November 2020, a further antibody from the long-term collaboration between MorphoSys and Novartis entered clinical development. This triggered a milestone payment to MorphoSys
"Throughout the quarter, we made great progress in all dimensions of our business – from commercial to advancing our late stage clinical portfolio to accelerating our research. Despite COVID-19 challenges, our Monjuvi launch is fully on track and continues to build strong momentum in the U.S., confirming the value Monjuvi brings to patients", said Jean-Paul Kress, M.D., Chief Executive Officer of MorphoSys. "We are building on the strength of our R&D portfolio with two very significant new partnerships, including advancing our vision of tafasitamab as the backbone for other therapeutic combinations with our Xencor CD20xCD3 bispecifics collaboration."

"We continuously invest in the success of our launch and the promise of our proprietary compounds aiming to help patients with a high unmet medical need as well as to generate sustainable value and return for our shareholders" commented Jens Holstein, Chief Financial Officer of MorphoSys. "With a pro-forma liquidity of approx. € 1.3 billion by end of September taking into account the convertible bond issuance in October, we are well suited to grow the company in the years ahead to the benefit of our stakeholders."

Financial Review for the Third Quarter of 2020 (IFRS)

Group revenues for the third quarter of 2020 increased to € 22.0 million (Q3 2019: € 12.5 million). This increase resulted primarily from the first-time recognition of Monjuvi(R) (tafasitamab-cxix) product sales and from service fees for the assignment of personnel to R&D collaborations. Group revenues include revenues of US$ 5.0 million (€ 4.4 million) from the first-time recognition of Monjuvi(R) (tafasitamab-cxix) product sales. Royalties amounted to € 10.2 million (Q3 2019: € 9.3 million).

In the Proprietary Development segment, MorphoSys researches and develops its own drug candidates for cancer and inflammation. In Q3 2020, this segment recorded revenues of € 10.5 million (Q3 2019: € 1.4 million). The rise is primarily due to the Monjuvi(R) (tafasitamab-cxix) product sales and the service fees for the assignment of personnel to R&D collaborations as explained above.

In the Partnered Discovery segment, MorphoSys applies its proprietary technology to discover new drug candidates for pharmaceutical companies and thus participates in its partners’ development advancements through R&D funding, licensing fees, success-based milestone payments and royalties. Revenues in the Partnered Discovery segment slightly increased to € 11.5 million in Q3 2020 from € 11.0 million in Q3 2019.

Total operating expenses increased to € 84.0 million from € 40.3 million in the same time period last year, due to the expenditure in relation to the Monjuvi(R) (tafasitamab-cxix) U.S. commercialization as well as the further expansion of MorphoSys US Inc. Cost of sales amounted to € 3.7 million versus € 1.0 million in the same quarter of 2019, while R&D expenses rose to € 34.2 million as compared to € 25.9 million in Q3 2019. Selling expenses in Q3 2020 increased to € 32.9 million (Q3 2019: € 4.4 million) and general and administrative expenses to € 13.3 million (Q3 2019: € 9.0 million). The increase of the two latter was primarily driven by higher personnel expenses and expenses for external services in association with the Monjuvi(R) (tafasitamab-cxix) launch. Selling expenses also comprised expenses for services rendered by Incyte in connection with the joint U.S. activities.

Earnings before interest and taxes (EBIT) for the Group amounted to € -61.7 million in Q3 2020 versus € -27.0 million in Q3 of the previous year. The Proprietary Development segment reported an EBIT of € -61.7 million (Q3 2019: € -30.4 million), while the Partnered Discovery segment delivered an EBIT of € 9.3 million (Q3 2019: € 8.8 million). The consolidated net loss was € -65.3 million (Q3 2019: € -24.2 million). Basic earnings per share were € -2.00 compared to € -0.76 in Q3 2019.

On September 30, 2020, the Group’s liquidity position amounted to € 987.2 million. This liquidity position is reported on the balance sheet under the items "cash and cash equivalents", "financial assets at fair value through profit or loss", and current and non-current "other financial assets at amortized cost". The cash inflow from the convertible offering in October is therefore not included in this amount.

The number of shares issued totaled 32,890,046 at the end of Q3 2020 (year-end 2019: 31,957,958).

Results for the First 9 Months 2020 (IFRS)

During the first 9 months of 2020, Group revenues increased to € 291.7 million from € 60.7 million in the same time period last year. This rise resulted primarily from the collaboration and license agreement with Incyte. Research and development expenses amounted to € 86.6 million versus € 75.3 million in the same time period last year. EBIT rose to € 101.8 million, compared to € -56.3 million for 9M 2019.

Financial Guidance and Operational Outlook for 2020

For the financial year 2020, MorphoSys increased its financial guidance. Management now expects Group revenues in the range of € 317 to € 327 million (previously: € 280 to € 290 million) and an EBIT in the range of € 10 to € 20 million (previously: € -15 to € +5 million). R&D expenses are expected to remain unchanged in the range of € 130 to € 140 million. This updated guidance reflects higher revenues from partnerships and collaborations and Tremfya(R) royalties are expected to be at the upper end of guidance. In addition, it now also includes revenues from product sales of Monjuvi(R) following its approval and subsequent launch in the U.S. This updated guidance is based on constant currency exchange rates and does not include any effects from potential in-licensing or co-development deals for new development candidates. The operational and financial guidance might potentially be impacted by the ongoing global COVID-19 crisis on MorphoSys’ business operations including but not limited to the Company’s supply chain, clinical trial conduct, as well as timelines for regulatory and commercial execution. While MorphoSys is maintaining its previously communicated guidance on its clinical trials, these could potentially be affected in terms of patient enrollment and data collection timelines, among other factors.

Ongoing Trials and Other Highlights

Monjuvi(R) (tafasitamab-cxix)

Launch of Monjuvi(R) (tafasitamab-cxix) using a combination of virtual engagement tools to address customer needs and to grow connectivity with customers, following Monjuvi(R) (tafasitamab-cxix)’s FDA approval on July 31, 2020
Monjuvi(R) (tafasitamab-cxix) was shipped to specialty distributors, the first customer order served in the first week post approval, and the first patient was dosed in the second week post approval

Tafasitamab

Expansion of tafasitamab’s clinical development beyond DLBCL under the collaboration and licensing agreement with Incyte
All activities on track to start frontMIND study (pivotal phase 3 study in first-line DLBCL) in 2021; enrollment completed for phase 1b firstMIND study
Pivotal phase 3 study in patients with relapsed or refractory follicular lymphoma (r/r FL) will start in 2021
Continue pivotal phase 3 trial evaluating tafasitamab plus bendamustine in r/r DLBCL in comparison to rituximab and bendamustine (B-MIND trial)
Continue phase 2 COSMOS trial of tafasitamab with idelalisib and venetoclax in CLL/SLL
Felzartamab (MOR202)

I-Mab: Continue pivotal development program with felzartamab in multiple myeloma in the Chinese region
MorphoSys: Continue clinical development of felzartamab in membranous nephropathy
Otilimab (MOR103/GSK3196165)

GSK to continue clinical phase 3 development program with otilimab in rheumatoid arthritis
GSK also started a clinical trial (OSCAR) to evaluate the efficacy and safety of otilimab in patients with severe pulmonary COVID-19-associated disease. According to information on www.clinicaltrials.gov, up to 800 patients are expected to be enrolled in the OSCAR study and data are expected in the first half of 2021
Tremfya(R) (guselkumab)

Janssen Research & Development, LLC. (Janssen) is currently conducting a series of clinical studies with Tremfya(R) (guselkumab) in various indications. Recent reported milestones include:
On July 14, 2020, Janssen announced the U.S. FDA approval of Tremfya(R) (guselkumab) as a treatment for adult patients with active psoriatic arthritis
On October 12, 2020, Janssen presented interim data from the GALAXI 1 study at the United European Gastroenterology Week virtual congress which showed Tremfya(R) (guselkumab) results at week 12 in adult patients with moderately to severely active Crohn’s disease (CD). Tremfya(R) induced significant improvements compared to placebo across key clinical and endoscopic outcome measures, with a safety profile consistent with approved indications
On October 16, 2020, Janssen announced a positive opinion from the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) recommending the expanded use of Tremfya(R) (guselkumab) for the treatment of adult patients with active psoriatic arthritis (PsA) in the European Union

Novartis

In September 2020, Novartis started a clinical phase 2 study for NOV-14 (CSJ117) in patients with severe uncontrolled asthma and for NOV-8 (CMK389) in patients with chronic pulmonary sarcoidosis according to information on www.clinicaltrials.gov
Other partnered programs

Publication of clinical data and achievement of regulatory milestones from other partnered programs may occur during 2020. Whether, when and to what extent news will be published following the primary completion of trials in the Partnered Discovery segment is at the full discretion of MorphoSys’ partners
MorphoSys will continue to support its proprietary development activities by evaluating potential in-licensing, co-development, acquisition opportunities or the potential initiation of new proprietary development programs with the goal of maintaining and expanding the Company’s position in its current therapeutic and technological fields of activities.

MorphoSys continues its expansion of strategic presence of MorphoSys US Inc.

Update on the Impact of the Global COVID-19 Pandemic

MorphoSys recognizes the impact of the global COVID-19 pandemic on healthcare systems and society worldwide, as well as the resulting potential impact on preclinical and clinical programs, especially clinical trials. In addition to the steps already communicated to mitigate the impact of the pandemic on MorphoSys’ employees, patients and the wider community, further measures may need to be implemented in the future. MorphoSys will take a variety of factors into consideration, such as a potential adaptation of clinical trials due to restrictions on visits to healthcare facilities, increased demands on healthcare services and changes in the availability of study personnel. MorphoSys continuously monitors the situation and takes appropriate decisions on a case-by-case basis to ensure the safety of patients, study personnel and other stakeholders, as well as to safeguard data integrity
The MorphoSys and Incyte sales and medical teams use a combination of virtual forms of communication and in-person interactions for the commercialization of Monjuvi(R) (tafasitamab-cxix) and are able to adapt to challenges related to the COVID-19 pandemic in the United States
Patient enrollment in all ongoing tafasitamab studies is continuing as planned. Patients with DLBCL suffer from a life-threatening disease that requires treatment and usually does not allow a delay in therapy. However, a potential delay in recruitment cannot be ruled out due to the factors mentioned above
Patient enrollment for the M-PLACE study with felzartamab (MOR202) continued as planned
* Percentage point

** Tremfya(R) (guselkumab) and Monjuvi(R) (tafasitamab-cxix) are still considered as clinical programs due to ongoing studies in various indications and/or treatment lines

*** Including otilimab (MOR103/GSK3196165), which is fully out-licensed to GSK

MorphoSys will hold its conference call and webcast tomorrow, November 12, 2020, to present the 9-month financial results 2020 and the further outlook for 2020.

Dial-in number for the analyst conference call (in English) at 2:00pm CET; 1:00pm GMT; 8:00am EST:

About Monjuvi(R) (tafasitamab-cxix)
Monjuvi is a humanized Fc-modified cytolytic CD19 targeting monoclonal antibody. In 2010, MorphoSys licensed exclusive worldwide rights to develop and commercialize tafasitamab from Xencor, Inc. Tafasitamab incorporates an XmAb(R) engineered Fc domain, which mediates B-cell lysis through apoptosis and immune effector mechanism including antibody-dependent cell-mediated cytotoxicity (ADCC) and antibody-dependent cellular phagocytosis (ADCP).

Monjuvi is approved by the U.S. Food and Drug Administration in combination with lenalidomide for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL) not otherwise specified, including DLBCL arising from low grade lymphoma, and who are not eligible for autologous stem cell transplant (ASCT).

In January 2020, MorphoSys and Incyte entered into a collaboration and licensing agreement to further develop and commercialize Monjuvi globally. Monjuvi will be co-commercialized by Incyte and MorphoSys in the United States. Incyte has exclusive commercialization rights outside the United States.

A marketing authorization application (MAA) seeking the approval of tafasitamab in combination with lenalidomide in the EU has been validated by the European Medicines Agency (EMA) and is currently under review for the treatment of adult patients with relapsed or refractory DLBCL, including DLBCL arising from low grade lymphoma, who are not candidates for ASCT.

Tafasitamab-cxix is being clinically investigated as a therapeutic option in B-cell malignancies in a number of ongoing combination trials.

Monjuvi(R) is a registered trademark of MorphoSys AG.
XmAb(R) is a registered trademark of Xencor, Inc.
NCCN(R) and National Comprehensive Cancer Network(R) are registered trademarks of National Comprehensive Cancer Network, Inc.