On March 15, 2023 Kronos Bio, Inc. (Nasdaq: KRON), a company dedicated to transforming the lives of those affected by cancer, reported recent business progress and fourth-quarter and full-year 2022 financial results (Press release, Kronos Bio, MAR 15, 2023, View Source [SID1234628812]).
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"We have had an exciting start to 2023, with both the announcement of our discovery collaboration with Genentech and the dosing of our first patient in the expansion cohort of our Phase 1/2 study of KB-0742," said Norbert Bischofberger, Ph.D., president and chief executive officer of Kronos Bio. "We look forward to building upon this strong momentum and sharing additional data from each of our clinical programs later this year and over the course of 2024. KB-0742 has the potential to help patients with a broad variety of solid tumors, and we anticipate reporting initial efficacy data from that program in the second half of this year. For lanraplenib, our Phase 1b/2 study in combination with gilteritinib seeks to address a significant unmet need in relapsed/refractory FLT3-mutated AML, and we anticipate providing initial data and a recommended Phase 2 dose later this year or early next year. We continue to focus on strong clinical execution as we work to bring innovative therapies to patients with cancer."
Fourth Quarter and Recent Company Updates
▪KB-0742
•In December 2022, Kronos Bio announced that it had selected the recommended phase 2 dose in its ongoing Phase 1/2 study of KB-0742 in solid tumors, after reaching the target engagement goal with an acceptable safety profile. The analysis further showed that KB-0742 continues to demonstrate a differentiated pharmacokinetic (PK) profile, with oral bioavailability, long half-life, and dose-proportional exposure across all four dose levels, and low to moderate variability between patients. The dose escalation portion of the study is continuing with the goal of identifying the maximum tolerated dose.
•The expansion portion of the trial is ongoing and includes Cohort A, for patients with MYC-amplified tumors, such as triple negative breast cancer, non-small cell lung cancer and ovarian cancer; and Cohort B, for patients with transcriptionally addicted cancers, including chordomas, sarcomas and small cell lung cancer. Both cohorts are enrolling, and in early 2023, the company dosed the first patient.
•Additional results from the dose escalation portion of the Phase 1/2 study and initial efficacy data from expansion portion are expected to be presented at a medical conference in the second half of 2023.
▪Lanraplenib
•In December 2022, the company presented preclinical data that demonstrated anti-leukemic activity of lanraplenib in combination with multiple targeted agents in patient-derived cell isolates and cell lines at the 64th American Society of Hematology (ASH) (Free ASH Whitepaper) Annual Meeting & Exposition. These data further support the biological rationale for SYK inhibition as a treatment for AML.
•Kronos Bio anticipates sharing initial data from the Phase 1b/2 study of lanraplenib in combination with gilteritinib in patients with relapsed/refractory FLT3-mutated acute myeloid leukemia (AML), along with a recommended Phase 2 dose (RP2D), in the fourth quarter of 2023 or first quarter of 2024.
▪Discovery Collaboration with Genentech
•In January 2023, Kronos Bio announced that it had entered into a discovery collaboration in the field of oncology with Genentech, a member of the Roche Group, focused on discovering and developing small-molecule drugs that modulate transcription factor targets selected by Genentech. Kronos Bio will lead discovery and research activities to a defined preclinical point when Genentech will have the exclusive right to pursue further preclinical and clinical development and commercialization.
▪Under the terms of the agreement, Kronos Bio received an upfront payment of $20 million and is eligible for additional payments, which could total up to $554 million, based on reaching certain milestones, including discovery, preclinical, clinical and commercial milestones, as well as tiered royalties on any potential products that are commercialized as a result of the collaboration.
Fourth-Quarter and Full-Year 2022 Financial Highlights
▪Cash, Cash Equivalents and Investments: With its ongoing and currently planned clinical programs and $247.9 million in cash, cash equivalents and investments as of December 31, 2022, the company anticipates sufficient resources to fund its planned operations into the second half of 2025. In January 2023, the Company entered into a Collaboration and License Agreement with Genentech, Inc., to initially collaborate on two discovery research programs in oncology. Pursuant to the Agreement, the Company received an upfront payment of $20.0 million from Genentech.
▪R&D Expenses: Research and development expenses were $23.2 million for the fourth quarter of 2022, which includes non-cash stock-based compensation expense of $3.6 million. For the full year of 2022, research and development expenses were $93.7 million, which includes non-cash stock-based compensation expense of $15.0 million.
▪G&A Expenses: General and administrative expenses were $10.5 million for the fourth quarter of 2022, which includes non-cash stock-based compensation expense of $4.1 million. For the full year of 2022, general and administrative expenses were $43.4 million, which includes non-cash stock-based compensation expense of $16.2 million.
▪Net Loss: Net loss for the fourth quarter of 2022 was $31.8 million, or $0.56 per share, including non-cash stock-based compensation of $7.7 million. Net loss for the full-year 2022 was $133.2 million, or $2.37 per share, including non-cash stock-based compensation expense of $31.1 million.