On November 12, 2021 Aptevo Therapeutics Inc. ("Aptevo" or the "Company") (NASDAQ:APVO), a clinical-stage biotechnology company focused on developing novel immuno-oncology therapeutics based on its proprietary ADAPTIR and ADAPTIR-FLEX platform technologies, reported its financial results and business highlights for the quarter ended September 30, 2021 (Press release, Aptevo Therapeutics, NOV 12, 2021, View Source [SID1234595456]).

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Business Highlights

Enrollment and dosing have commenced in Part 2 (Expansion Phase) of Company’s multicenter 5001 Phase 1B clinical trial to evaluate APVO436 in adult patients with acute myeloid leukemia (AML).
Reported 3 publications in two peer-reviewed journals ( Cancers[Basel]) and Frontiers in Aging) regarding the salient features of the data obtained during Part 1 (Dose escalation phase) of the 5001 APVO436 Phase 1B trial.
Participated in Euroleukemia2021 Meeting with an oral and a poster presentation.
Showcased the Company’s preclinical assets, APVO442 and APVO603, and their potential to improve efficacy in the treatment of solid tumors and participated in discussions about risk mitigation in cell engager candidates at the Virtual Cell Engager Summit.
Presented the unique aspects of the Company’s proprietary ADAPTIR AND ADAPTIR-FLEX platforms at the Cambridge Health Institute PEGS Virtual Conference.
platforms at the Cambridge Health Institute PEGS Virtual Conference.
"I am excited about our clinical progress in the third quarter, as we initiated enrollment and dosing in our APVO436 Phase 1b expansion trial. We look forward to receiving data from this trial in the first half of next year and will use the outcomes to inform our go-forward clinical strategy for this promising lead clinical candidate with the potential to impact existing standard of care for acute myeloid leukemia," said Marvin White, President and CEO of Aptevo. "During the quarter we were fortunate to present our clinical work in two peer-reviewed journals and to showcase our ADAPTIR and ADAPTIR-FLEX platforms at multiple industry conferences. We are well funded to continue our work for the next twelve months and look forward to reporting our progress."

Third Quarter 2021 Financial Results Summary

Cash Position : Aptevo had cash and cash equivalents as of September 30, 2021 totaling $53.4 million, including restricted cash of $1.3 million. The restricted cash is expected to be released over the next twelve months.

Royalty Revenue: Royalty revenue was $3.1 million for the three months ended September 30, 2021, related to the royalty from Pfizer on global net sales of RUXIENCE , a biosimilar to the drug RITUXAN , launched by Pfizer in early 2020. RUXIENCE is a trademark of Pfizer; RITUXAN is a trademark of Biogen. Due to our continuing involvement under the Definitive Agreement originally between Trubion and Wyeth, we continue to recognize royalty revenue on net sales of RUXIENCE and record the royalty payments to HCR as a reduction of the liability when paid. As such payments are made to HCR, the balance of the liability will be effectively repaid over the life of the Royalty Purchase Agreement.

Research and Development Expenses : Research and development expenses decreased to $4.4 million for the three months ended September 30, 2021 from $4.5 million for the three months ended September 30, 2020. Costs associated with APVO436 clinical trial increased as we continued to advance that trial and have now started dosing in our Phase 1b Expansion program. This increase was offset by lower spending on preclinical projects.

General and Administrative Expenses : For the three months ended September 30, 2021, general and administrative expenses increased to $3.5 million from $3.2 million for September 30, 2020, with higher costs related to responding to stockholder activism matters and higher employee costs.

Other Expense, Net: Other expense, net consists primarily of costs related to debt extinguishment, accrued exit fees on debt, non-cash interest on financing agreements, and interest on debt. Other expense, net was $2.3 million for the three months ended September 30, 2021 and $0.7 million for the three months ended September 30, 2020. The increase in other expense, net is primarily related to interest expense and accrued exit fees for the MidCap Credit Agreement, as well as non-cash interest expense for the HCR Purchase Agreement.

Discontinued Operations: Income from discontinued operations was approximately $0.1 million for the three months ended September 30, 2021 and September 30, 2020, related to collection of deferred payments from Medexus earned on second quarter 2021 and 2020 IXINITY sales.

Net Loss : Aptevo’s net loss for the three-month period ended September 30, 2021 was $7.0 million or $1.43 per share, as compared to a net loss of $6.8 million or $2.10 per share for the corresponding period in 2020.

Liability Related to Sale of Future Royalties: We treat the Royalty Purchase Agreement with HCR as a debt financing, amortized under the effective interest rate method over the estimated life of the related expected royalty stream. The liabilities related to sale of future royalties and the debt amortization are based on our current estimates of future royalties expected to be paid over the life of the arrangement. We will periodically assess the expected royalty payments using projections from external sources. To the extent our estimates of future royalty payments are greater or less than previous estimates or the estimated timing of such payments is materially different than previous estimates, we will adjust the effective interest rate and recognize related non-cash interest expense on a prospective basis. We are not obligated to repay the proceeds received under the Royalty Purchase Agreement with HCR.

On November 12, 2021 Mustang Bio, Inc. ("Mustang") (NASDAQ: MBIO), a clinical-stage biopharmaceutical company focused on translating today’s medical breakthroughs in cell and gene therapies into potential cures for hematologic cancers, solid tumors and rare genetic diseases, reported financial results and recent corporate highlights for the third quarter ended September 30, 2021 (Press release, Mustang Bio, NOV 12, 2021, View Source [SID1234595454]).

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Manuel Litchman, M.D., President and Chief Executive Officer of Mustang, said, "Mustang continued to advance the development of our CAR T therapies across multiple cancers, as well as our lentiviral gene therapies, in the third quarter of 2021. In the MB-106 abstract posted earlier this month on the American Society of Hematology (ASH) (Free ASH Whitepaper) ("ASH2021") Annual Meeting website, data from 16 patients further indicate that MB-106 CD20-targeted autologous CAR T cell therapy has a favorable safety profile as outpatient therapy, with compelling clinical activity, ongoing durable complete responses and a high rate of CAR T persistence. The overall response rate ("ORR") was 94% (15/16) with a complete response ("CR") rate of 62% (10/16). In patients with follicular lymphoma ("FL") (n=12), ORR was 92% (11/12) and CR rate was 75% (9/12). We look forward to disclosing additional interim MB-106 clinical data at ASH (Free ASH Whitepaper)2021 and to enrolling the first patient in the clinical trial under Mustang’s investigational new drug trial to further advance MB-106 for patients with relapsed or refractory B-cell non-Hodgkin lymphomas ("NHL") or chronic lymphocytic leukemia ("CLL")."

"Earlier this month, we also announced that Mustang received a National Cancer Institute ("NCI") two-year grant to support our ongoing research and development of MB-106. We anticipate providing additional updates on our CAR T and gene therapy clinical programs in the coming months," Dr. Litchman concluded.

Recent Corporate Highlights:

In August 2021, Mustang announced that the European Medicines Agency ("EMA") granted PRIME designation to MB-107, its lentiviral gene therapy for the treatment of X-linked Severe Combined Immunodeficiency ("XSCID") in newly diagnosed infants.
Also in August 2021, Mustang announced an exclusive license agreement with Mayo Clinic for a novel technology that may be able to transform the administration of CAR T therapies and has the potential to be used as an off-the-shelf therapy.
In October 2021, Christine Brown, Ph.D., Deputy Director, T Cell Therapeutics Research Laboratory and The Heritage Provider Network Professor in Immunotherapy at City of Hope, presented updated Phase 1 clinical data regarding MB-101 (IL13Rα2‐targeted CAR T cells) for the treatment of glioblastoma at two scientific conferences, the First Annual Conference on CNS Clinical Trials, co-sponsored by the Society for Neuro-Oncology and American Society of Clinical Oncology (ASCO) (Free ASCO Whitepaper), and the American Association for Cancer Research (AACR) (Free AACR Whitepaper) Virtual Special Conference: Brain Cancer.
In November 2021, Mustang announced that the company was awarded a grant of approximately $2 million from NCI of the National Institutes of Health. This two-year award will partially fund the Mustang-sponsored multicenter trial to assess the safety, tolerability and efficacy of MB-106, a CD20-targeted, autologous CAR T cell therapy for patients with NHL or CLL.
Also in November 2021, Mustang announced MB-106 data were selected for presentation at ASH (Free ASH Whitepaper)2021 scheduled to take place in December of this year. Dr. Mazyar Shadman of Fred Hutchinson Cancer Research Center will present updated interim data from the ongoing Phase 1/2 clinical trial for NHL and CLL. A copy of the abstract can be viewed online through the ASH (Free ASH Whitepaper)2021 website here. Mustang will host a key opinion leader webinar on December 16, 2021, featuring a presentation from Dr. Shadman, who will discuss interim results from the ongoing Phase 1/2 clinical trial investigating the safety and efficacy of MB-106 for NHL and CLL.
Earlier this week, Mustang announced the execution of an exclusive license agreement with Leiden University Medical Centre for worldwide rights to a first-in-class ex vivo lentiviral gene therapy for the treatment of RAG1 severe combined immunodeficiency ("RAG1-SCID"). The therapy, which includes low-dose conditioning prior to reinfusion of the patients’ own gene-modified blood stem cells, is currently being evaluated in a Phase 1/2 multicenter clinical trial in Europe. The ongoing clinical trial recently enrolled its first patient.
Financial Results:

As of September 30, 2021, Mustang’s cash and cash equivalents and restricted cash totaled $121.9 million, compared to $130.9 million at June 30, 2021, and $98.8 million as of December 31, 2020, a decrease of $9.0 million for the quarter and an increase of $23.1 million year-to-date.
Research and development expenses including license acquisitions were $14.7 million for the third quarter of 2021, compared to $8.3 million for the third quarter of 2020. Non-cash, stock-based expenses included in research and development were $0.7 million for the third quarter of 2021, compared to $0.3 million for the third quarter of 2020.
General and administrative expenses were $2.4 million for the third quarter of 2021, compared to $2.2 million for the third quarter of 2020. Non-cash, stock-based expenses included in general and administrative expenses were $0.3 million for the third quarter of 2021, compared to $0.8 million for the third quarter of 2020.
Net loss attributable to common stockholders was $17.0 million, or $0.19 per share, for the third quarter of 2021, compared to a net loss attributable to common stockholders of $13.0 million, or $0.23 per share, for the third quarter of 2020.

On November 12, 2021 Actinium Pharmaceuticals, Inc. (NYSE AMERICAN: ATNM) ("Actinium" or the "Company"), a leader in the development of targeted radiotherapies for patients with unmet needs, reported that data highlighting Actimab-A in combination with a CD47 blocking antibody immunotherapy are being presented at the 36th Annual Meeting of the Society for Immunotherapy for Cancer (SITC 2021) November 12th – 14th (Press release, Actinium Pharmaceuticals, NOV 12, 2021, View Source [SID1234595453]). The poster presentation highlights that in multiple AML cell lines, Actimab-A induced an increase in cell surface calreticulin as much as 3-times higher than control. When combined with a CD47 blocking antibody, enhanced pro-phagocytic immune response was seen in vitro across 3 AML cell lines. In vivo studies in disseminated AML tumor models showed a significant increase in survival with the Actimab-A plus CD47 immunotherapy combination compared to single agent therapy.

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Actimab-A is an antibody radiation conjugate (ARC) comprised of a CD33 targeting antibody armed with the alpha-emitting radioisotope Actinium-225, which has shown single agent anti-leukemic activity in a Phase 2 trial as well as synergy in combination with chemotherapy and targeted agents in Phase 1 trials. It has been shown that upregulation of CD47, which acts as a "don’t eat me" signal, is one mechanism in which AML cells can evade targeting and destruction by an innate immune response. The data presented at SITC (Free SITC Whitepaper) shows for the first time the potential to upregulate calreticulin, a pro-phagocytic "eat me" signal, with a CD33 ARC armed with the Actinium-225 radioisotope payload resulting in a potential synergistic effect with CD47 immunotherapy.

Dr. Avinash Desai, Actinium’s Chief Medical Officer, said, "As CD47 emerged as a highly attractive novel immunotherapy target, we rapidly identified the potential to combine Actimab-A with a CD47 blocking antibody. Based on the data to date with CD47 in patients with AML and MDS, we believe the potential exists to improve patient outcomes by combining with Actimab-A. Actimab-A is a highly differentiated agent for the treatment of AML as it uses radiation as the cytotoxic payload. AML, and many other blood cancers, are highly sensitive to radiation but cannot be properly targeted with standard external radiation sources due to their diffuse nature. With the increasing recognition of radiation’s potential to activate immune responses, we believe we are best poised to lead the field with our ARCs that can deliver and target the radiation with cellular precision and minimize systemic exposure and toxicities. By targeting CD33, we are targeting a validated marker that is expressed in a majority of AML patients with a radioisotope payload that is agnostic to cytogenetic or molecular markers. With initial mechanistic synergy demonstrated with CD47 immunotherapy, we look forward to exploring collaborations to advance this novel and differentiated combination from preclinical studies into patients in the clinic to further bolster Actimab-A’s potential as a backbone therapy for the treatment of AML."

SITC Poster Details

Poster Title: Anti-CD33 actinium-225 targeted radioimmunotherapy enhances the biologic activity of anti-CD47 antibody immunotherapy in preclinical models of acute myeloid leukemia

Poster Number: 590

Location: Poster Hall, Walter E. Washington Convention Center in Washington, D.C.

Dates and Times: 11/12/2021 – 11/14/2021, 7:00 am – 5:00 pm

The poster will be accessible on Actinium’s website on the Presentations & Webinars page: View Source

On November 12, 2021 aTyr Pharma, Inc. (Nasdaq: LIFE), a biotherapeutics company engaged in the discovery and development of innovative medicines based on novel biological pathways, reported that Sanjay S. Shukla, M.D., M.S., President and Chief Executive Officer, will present at two upcoming virtual investor conferences in November (Press release, aTyr Pharma, NOV 12, 2021, View Source [SID1234595452]).

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Details of the events are as follows:

Conference: Stifel 2021 Virtual Healthcare Conference
Date: Wednesday, November 17, 2021
Time: Live Corporate Presentation at 4:40pm EST / 1:40pm PST

Conference: Piper Sandler 33rd Annual Virtual Healthcare Conference
Date: Monday, November 22, 2021
Time: Pre-recorded Fireside Chat available on demand starting at 10:00am EST / 7:00am PST

In addition to the presentations, company management will be available to participate in virtual one-on-one meetings with investors who are registered attendees of the conferences. Following the events, a replay of each presentation will be available on the Investor’s section of the company’s website at www.atyrpharma.com.

On November 12, 2021 Xenetic Biosciences, Inc. (NASDAQ:XBIO) ("Xenetic" or the "Company"), a biopharmaceutical company focused on advancing XCART, a personalized CAR T platform technology engineered to target patient- and tumor-specific neoantigens, reported its financial results for the third quarter of 2021 and provided a corporate update (Press release, Xenetic Biosciences, NOV 12, 2021, View Source [SID1234595451]).

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"Our team continues to advance the XCART program and validate key workflow and manufacturing components which move us closer to conducting IND-enabling studies. Building on the proven success of CAR T therapy, we believe that Xenetic’s approach is innovative and is well-positioned to have a meaningful impact by addressing the significant unmet needs in certain hematological malignancies. As we continue to advance this important program and witness the potential of the XCART platform, our confidence holds strong in its ability to target cancers with a patient- and tumor-specific approach," commented Jeffrey Eisenberg, Chief Executive Officer of Xenetic.

XCART Platform Technology Overview: Significantly differentiated, proprietary approach to personalized CAR T lymphoma therapy targeting tumor-specific neoantigens that target independently of CD19 or other surface antigens that are common to both normal and malignant B-cells. Lead program for Non-Hodgkin lymphoma, an area of significant unmet need, with the potential to address an initial global market opportunity of over $7 billion annually.1

Program Highlights:

Advancing preclinical efforts through ongoing research and development collaborations including with Scripps Research and other institutions covering design and implementation of the pre-clinical development program, as well as activities supporting process development for clinical manufacturing.
The exploratory biopsy study in Eastern Europe achieved its initial objective of supporting further XCART platform development, including that of downstream XCART processes, and has provided materials and methods needed to proceed with IND-enabling studies.
Bolstered intellectual property portfolio with issuance of a U.S. patent covering the co-administration of XCART-derived CAR T cells, together with a personalized vaccine designed to enhance the effectiveness of the CAR T therapy.
PolyXen Platform Technology: Patent-protected platform technology designed for protein or peptide therapeutics, enabling next-generation biological drugs by prolonging a drug’s circulating half-life and potentially improving other pharmacological properties.

Program Highlights:

Royalty payments of approximately $0.3 million were received in the quarter ended September 30, 2021, from the Company’s sublicense with Takeda. Takeda’s sublicensee has now launched the relevant product in multiple global markets.
Company’s partner, Pharmsynthez, has filed a registration dossier in Russia to obtain approval of Epolong, a polysialylated form of human erythropoietin as a treatment for anemia in patients with chronic kidney disease.
Summary of Financial Results for Third Quarter 2021
Net loss for the quarter ended September 30, 2021, was approximately $1.4 million. Research and development expenses for the three months ended September 30, 2021, increased by approximately $0.2 million, or 36.1%, to $0.8 million from $0.6 million in the comparable quarter in 2020. The increase was due to the Company’s increased spending on the XCART platform technology. General and administrative expenses for the three months ended September 30, 2021, was $0.9 million, increasing $0.1 million, or 17.5%, compared to the same period in the prior year. The increase was primarily due to increases in employee related, legal and consulting costs during the three months ended September 30, 2021, compared to the same period in 2020. In July 2021, the Company completed a $12.5 million private placement of common stock and warrants to purchase common stock resulting in approximately $11.5 million of net proceeds to the Company. At September 30, 2021, the Company reported working capital was approximately $19.5 million. The Company ended the quarter with approximately $19.7 million of cash.