ORIC Pharmaceuticals Reports Third Quarter 2021 Financial Results and Operational Update

On November 8, 2021 ORIC Pharmaceuticals, Inc. (Nasdaq: ORIC), a clinical stage oncology company focused on developing treatments that address mechanisms of therapeutic resistance, reported financial results and operational updates for the quarter ended September 30, 2021 (Press release, ORIC Pharmaceuticals, NOV 8, 2021, View Source [SID1234594732]).

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"We are proud of the ongoing steady advancement of our broad pipeline" said Jacob Chacko, M.D., president and chief executive officer. "In October, we announced initial trial data from our ORIC-101 combination with enzalutamide in prostate cancer, which demonstrated a safe and tolerable profile and encouraging early antitumor activity in a key patient population; in November, we submitted a CTA filing for ORIC-114, our brain penetrant EGFR/HER2 exon 20 inhibitor. In the fourth quarter, we also expect to initiate a Phase 1 trial with our CD73 inhibitor ORIC-533 as a single agent in multiple myeloma and to file an IND for ORIC-944, our allosteric PRC2 inhibitor."

Third Quarter 2021 and Other Recent Highlights

Data Presentations at AACR (Free AACR Whitepaper)-NCI-EORTC:

ORIC-101: The Phase 1b clinical trial of ORIC-101 in combination with enzalutamide is a single arm, multicenter, open-label study conducted in two parts, intended to establish the recommended Phase 2 dose (RP2D), safety, pharmacokinetics, pharmacodynamics, and preliminary antitumor activity of the combination when administered in patients with metastatic prostate cancer progressing on enzalutamide. Following the completion of the Part I dose escalation portion of the trial, the RP2D was determined to be 240 mg of ORIC-101 and 160 mg of enzalutamide once daily. In the Part II dose expansion portion of the trial, up to 48 patients with metastatic prostate cancer progressing on enzalutamide are expected to be enrolled and treated with the combination at the RP2D. Patients are enrolled independent of GR status, with retrospective analysis of AR variants and GR expression and other potentially predictive biomarkers. Enrollment continues in the Part II dose expansion cohorts at nine clinical sites across the United States.

As of the August 20, 2021, data cut-off date, the key findings of the initial data presented included:

Preliminary Safety Analyses:
25 patients were enrolled across Parts I/II of the study, which included 7 patients treated at non-RP2D doses and 18 patients treated at the RP2D.
RP2D was well tolerated; treatment-related adverse events were primarily Grade 1 or 2, with only four Grade 3 events, which all resolved with dose interruption.
Tolerability profile for the combination was generally consistent with that of single agent enzalutamide.

Preliminary PK and Biomarker Analyses:
Plasma concentrations exceeded the threshold for GR inhibition at all dose levels, with GR target gene suppression observed after one dose of ORIC-101 in peripheral blood mononuclear cells from 22 of 23 patients.
ORIC-101 exposure increased with dose.
No evidence observed of drug-drug interaction impacting enzalutamide levels.
Translational efforts identified a key patient population, in line with published literature, consisting of the ~60% of patients with tumors lacking biomarkers of AR resistance (e.g., ARv7 splice variant, AR L702H point mutation) and AR independence (e.g., lineage switching).

Preliminary Antitumor Activity:
Within the key patient population (n=8), 75% (6 of 8) of patients’ tumors expressed moderate to high GR and 25% (2 of 8) of patients’ tumors expressed low GR.
The two patients with low GR came off treatment at less than two months. In contrast, the six patients with moderate to high GR demonstrated prolonged time on treatment (with two patients on treatment for over seven months, and another four patients still ongoing at varying durations at the time of the data cut).

ORIC-114: A brain penetrant, orally bioavailable, irreversible inhibitor designed to selectively target EGFR and HER2 with high potency against exon 20 insertion mutations. Key findings of the preclinical presentation included:
ORIC-114 demonstrated greater cell potency on HER2-positive breast cancer cell lines relative to non-amplified cell lines and was more potent than lapatinib and tucatinib, two approved tyrosine kinase inhibitors for the treatment of HER2-positive breast cancer.
ORIC-114 demonstrated robust tumor regressions in a HER2-positive breast cancer in vivo model without significant body weight loss.
ORIC-114 demonstrated superior brain exposure compared to other EGFR exon 20 and HER2 targeted agents.
Corporate: In August 2021, the company appointed Steven L. Hoerter to its board of directors. Mr. Hoerter is currently CEO of Deciphera Pharmaceuticals and has more than twenty-five years of experience in sales, marketing, commercial and public company leadership roles.
In July 2021, ORIC raised gross proceeds of $50.0 million through the sale of approximately 2.6 million shares under its ATM offering, with participation based on unsolicited interest received from a healthcare specialist fund. The company sold the shares at a purchase price per share of $19.25, a premium to the market price at the time of the sale.

Anticipated Milestones

ORIC anticipates the following milestones in the fourth quarter of 2021:
ORIC-533:
Present update on oral CD73 inhibitor program at the ASH (Free ASH Whitepaper) Annual Meeting
Initiate single agent Phase 1 trial in patients with multiple myeloma
ORIC-944: File IND
Third Quarter 2021 Financial Results

Cash, Cash Equivalents and Investments: As of September 30, 2021, cash, cash equivalents, and investments totaled $296.5 million, which the company expects will fund its current operating plan into 2024.

R&D Expenses: Research and development expenses were $12.9 million for the three months ended September 30, 2021, compared to $8.8 million for the three months ended September 30, 2020, an increase of $4.1 million. For the nine months ended September 30, 2021, R&D expenses were $40.1 million compared to $23.8 million for the same period of 2020, an increase of $16.3 million. The increases for the 2021 periods were primarily driven by an increase in external expenses related to the advancement of ORIC-101 and other product candidates of $2.8 million and $12.8 million for the three and nine months ended September 30, 2021, respectively, as well as higher personnel costs, including additional non-cash stock-based compensation of $0.7 million and $2.2 million for the three and nine months ended September 30, 2021, as compared to the same periods in 2020, respectively.
G&A Expenses: General and administrative expenses were $5.6 million for the three months ended September 30, 2021, compared to $3.8 million for the three months ended September 30, 2020, an increase of $1.8 million. For the nine months ended September 30, 2021, G&A expenses were $16.0 million compared to $9.1 million for the same period of 2020, an increase of $6.8 million. The increases were primarily due to higher personnel costs, including additional non-cash stock-based compensation of $1.1 million and $3.6 million for the three months and nine months ended September 30, 2021, as compared to the same periods in 2020, respectively, as well as higher professional services and related costs to operate as a public company.

Affimed and NKGen Biotech Announce Initiation of Patient Recruitment in a First-in-human Phase 1/2a Trial of Innate Cell Engager AFM24 in Combination with Autologous NK Cell Product SNK01

On November 8, 2021 Affimed N.V. (Nasdaq: AFMD) and NKGen Biotech, both clinical stage biotech companies focused on harnessing the power of the body’s innate immune system, reported the initiation of patient recruitment in the open-label, multi-center phase 1/2a study (NCT05099549) evaluating the safety, tolerability, and anti-tumor activity of the innate cell engager (ICE) AFM24 (Affimed’s tetravalent, bispecific epidermal growth factor receptor (EGFR)- and CD16A-binding ICE) in combination with SNK01 (ex vivo expanded and activated autologous NK cell therapy from NKGen Biotech) (Press release, NKMax America, NOV 8, 2021, View Source [SID1234594731]).

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The objective of the phase 1 dose escalation is to evaluate safety and tolerability data for escalating AFM24 doses in combination with a fixed dose of SNK01 and to determine the maximum tolerated and recommended phase 2 dose for the expansion phase. Phase 2a will investigate additional tolerability, safety and anti-tumor activity. The trial will include patients with non-small cell lung cancer (NSCLC, EGFR-wildtype), squamous cell carcinoma of the head and neck (SCCHN), as well as patients with microsatellite instability (MSI) low/DNA mismatch repair proficient colorectal cancer (CRC) regardless of KRAS mutational status.

"Existing therapeutics that target EGFR rely on inhibiting EGFR signaling, an approach that has been hampered by intrinsic and acquired resistance mechanisms," said Dr. Anthony El-Khoueiry, Phase I Program Director at the USC Norris Comprehensive Cancer Center, part of Keck Medicine of USC. El-Khoueiry is also associate professor of clinical medicine, Keck School of Medicine of USC and principal investigator for the study. "The combination of AFM24 with SNK01 represents a novel approach to leverage EGFR expression in multiple solid tumor types and optimally engage the innate immune system; this may be especially beneficial for patients with an impaired immune system or low NK cell numbers."

The clinical study is supported by preclinical data generated through the collaboration of Affimed and NKGen Biotech, including data that were recently presented at the AACR (Free AACR Whitepaper)-NCI-EORTC conference on Molecular Targets and Cancer Therapeutics. In the preclinical studies, AFM24 demonstrated robust binding to SNK01 cells and enhancement of the cytotoxic activity of SNK01 cells towards EGFR-positive A-431 cells, compared to untargeted SNK01 cells. In addition, markers for NK cell degranulation and intracellular IFNγ were increased in the combined therapy, indicating increased anti-tumor activity.

The AACR (Free AACR Whitepaper)-NCI-EORTC conference presentation may be found at: View Source and View Source

About AFM24

AFM24 is a tetravalent, bispecific innate cell engager (ICE) that activates the innate immune system by binding to CD16A on innate immune cells and EGFR, a protein widely expressed on solid tumors, to kill cancer cells. Generated by Affimed’s fit-for-purpose ROCK platform, AFM24 represents a distinctive mechanism of action that uses EGFR as a docking site to engage innate immune cells for tumor cell killing through antibody-dependent cellular cytotoxicity and antibody-dependent cellular phagocytosis.

In addition to the AFM24-103 study presented here, Affimed is evaluating AFM24 as a monotherapy (AFM24-101) for patients with advanced EGFR-expressing solid malignancies whose disease has progressed after treatment with previous anticancer therapies. The first-in-human phase 1/2a open-label, non-randomized, multi-center, multiple ascending dose escalation and expansion study and can be found at www.clinicaltrials.gov using the identifier NCT04259450.

About SNK01

SNK01 is a cell-based, patient-specific, ex vivo expanded and activated autologous NK cell therapy agent, manufactured from the patient’s leukapheresis or whole blood. NK cells are a subset of cytotoxic lymphocytes with the ability to directly attack virally infected cells or cancer cells and carry out immunoregulatory functions by the secretion of cytokines and chemokines.

SITC 2021, NI-2601 & NI-2901 bispecific antibody programs

On November 8, 2021 Light Chain Bioscience reported to have Xavier Chauchet attend in-person the Society for Immunotherapy of Cancer (SITC) (Free SITC Whitepaper) Annual Meeting on November 10-14, 2021 in Washington DC (Press release, Light Chain Bioscience, NOV 8, 2021, View Source [SID1234594730]).

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Xavier will present our innovative and differentiating CD47xPD-L1 bispecific antibodies for a simultaneous blockade of PD-1/PD-L1 and CD47/SIRPa immune checkpoint axes, NI-2601 and NI-2901. The programs are currently in late discovery phase and clinical lead candidates have been identified.

The poster entitled "CD47xPD-L1 bispecific antibodies for cancer therapy" (#265) will be exposed and presented on Nov. 12 between 9:55-10:10 a.m., 12:40-14:10 p.m., 4:35-4:50 p.m. and 7:00-8:30 p.m. and available on the SITC (Free SITC Whitepaper) virtual meeting ePoster platform from 7 a.m. on Friday, Nov.12.

Christopher Flores, PhD appointed as President and Chief Research and Development Officer of Doloromics, Inc.

On November 8, 2021 Doloromics has reported the appointment of Dr. Chris Flores as their new President and Chief Research and Development Officer (Press release, Lifescience Newswire, NOV 8, 2021, View Source [SID1234594729]). In this role, Dr. Flores will be responsible for leading the Doloromics portfolio of drug discovery and development programs, two of which are scheduled to launch in early 2022, while building relationships with strategic partners and collaborators in support of these efforts.

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"After an extensive and diverse experience in the Pharmaceutical and Consumer sectors of Johnson & Johnson, I’m both thrilled and privileged to commit the full measure of my expertise and passion in executing the core mission of Doloromics, to eradicate pain in patients who remain tragically underserved by current standards of care." — Chris Flores, PhD.

Dr. Flores will complement the Doloromics leadership team after a successful, 19-year career at Johnson & Johnson, where he held several executive positions, including Vice President of Neuroscience, La Jolla R&D Site Head, Pain Franchise Strategy Leader, Head of Pain Discovery and Global External Innovation Head of Discovery Sciences within Janssen Research & Development as well as Head of Emerging Science and Innovation Strategy for J&J Consumer Companies.

Invitae Reports $114.4 Million in Revenue Driven by 296,000 in Billable Volume in Third Quarter of 2021

On November 8, 2021 Invitae (NYSE: NVTA), a leading medical genetics company, reported financial and operating results for the third quarter ended September 30, 2021 (Press release, Invitae, NOV 8, 2021, View Source [SID1234594728]).

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Invitae’s (NVTA) mission is to bring comprehensive genetic information into mainstream medical practice to improve the quality of healthcare for billions of people. www.invitae.com (PRNewsFoto/Invitae Corporation)

"Year-over-year growth continued at a fast pace in the third quarter as volumes remained strong across the platform," said Sean George, Ph.D., co-founder and CEO of Invitae. "In particular, progress in the oncology group is reflected in current volumes and preparations for high-value, high-margin product introductions over the coming year, supported by multiple ongoing studies. We saw continued progress in our data and platform services, underscored by the integration of Medneon and the Ciitizen technology platform that bolster our ability to collect, house and deliver benefits from patient data collected on their behalf. We look forward to continued robust volume growth in the coming periods as we introduce new testing capabilities and increase access to our lifelong testing and data platform."

Third Quarter 2021 Financial Results

Generated revenue of $114.4 million in the quarter, a more than 66% increase compared to $68.7 million in the same period in 2020.
Reported billable volume of 296,000 in the quarter, approximately 89% increase compared to 157,000 in the same period in 2020.
Reported average cost per billable unit of $296 in the quarter compared to $297 average cost per billable unit in the same period in 2020. Non-GAAP average cost per unit was $249 in the quarter.
Achieved gross profit for the third quarter of 2021 of $26.7 million, compared to $22.1 million in the same period in 2020. Non-GAAP gross profit was $40.7 million in the third quarter.
Total operating expense, which excludes cost of revenue, for the third quarter of 2021 was $220.0 million compared to $102.9 million in the same period in 2020. Non-GAAP operating expenses for the quarter was $201.8 million.

Net loss for the third quarter of 2021 was $198.2 million, or a $0.91 net loss per share, compared to a net loss of $102.9 million, or a $0.78 net loss per share, in the third quarter of 2020. Non-GAAP net loss for the quarter was $175.9 million, or a $0.81 non-GAAP net loss per share.

At September 30, 2021, cash, cash equivalents, restricted cash and marketable securities totaled $1.25 billion as compared with $1.54 billion as of June 30, 2021. Net increase in cash, cash equivalents and restricted cash for the quarter was $186.1 million. Cash burn was $286.0 million for the quarter. Cash burn for the quarter would have been $148.1 million excluding the cash paid for acquisitions, primarily related to the cash paid to acquire Medneon and Ciitizen.

Corporate and Scientific Highlights

Acquired patient-centric consumer health tech company Ciitizen to enhance Invitae’s platform by providing patients an easy-to-use, centralized hub for their genomic and clinical information, which together comprise a powerful dataset with the potential to drive research and improve healthcare decision-making.
Announced new data from the TRACERx lung cancer research collaboration. The data further validate the value of liquid biopsy as a less invasive and more comprehensive approach to guiding personalized cancer treatment. The data underscore previous findings from the TRACERx cohort that monitoring for cancer circulating tumor DNA (ctDNA) based minimal residual disease (MRD) detected relapse of non-small cell lung cancer (NSCLC) up to three years earlier than standard of care imaging surveillance in some instances.
Presented research demonstrating that genetic findings informed clinical management changes that led to improved seizure control and outcomes in the majority of epilepsy patients with actionable findings. The findings were presented in September at the National Society of Genetic Counselors 40th Annual Conference.
Outlook and Guidance
The company has adjusted its 2021 annual revenue guidance to $450 million – $475 million, or year-over-year revenue growth of between 60% and 70%. The change in revenue outlook was primarily due to greater than expected seasonal impact in Q3.

Webcast and Conference Call Details
Management will host a conference call and webcast today at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time to discuss financial results and recent developments. To access the conference call, please register at the link below:

View Source

Upon registering, each participant will be provided with call details and a conference ID.

The live webcast of the call and slide deck may be accessed here or by visiting the investors section of the company’s website at ir.invitae.com. A replay of the webcast and conference call will be available shortly after the conclusion of the call and will be archived on the company’s website.