On May 11, 2023 Kineta, Inc. (Nasdaq: KA), a clinical-stage biotechnology company focused on the development of novel immunotherapies in oncology that address cancer immune resistance, reported financial results for the first quarter of 2023 and provided a corporate update (Press release, Kineta, MAY 11, 2023, View Source;utm_medium=rss&utm_campaign=kineta-reports-first-quarter-2023-financial-results-and-provides-corporate-update [SID1234631517]).
Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:
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
Schedule Your 30 min Free Demo!
"The year began with an exciting start as we opened our first-in-human clinical trial of KVA12123 and dosed our first patient in the Phase 1/2 study in advanced solid tumors. Our team is laser focused on working with clinical partners to enroll patients in this study and report initial clinical data by the end of the year," said Shawn Iadonato, Ph.D., Chief Executive Officer of Kineta. "Additionally, in April 2023, we strengthened our balance sheet with a $6 million financing to provide the company with runway through early 2025."
RECENT CORPORATE HIGHLIGHTS
Dosed first patient in Phase 1/2 clinical study evaluating KVA12123 alone and in combination with pembrolizumab in patients with advanced solid tumors
Closed $6 million registered direct offering priced at-the-market under Nasdaq rules
Presented VISTA biomarker data and KVA12123 Phase 1/2 clinical trial update at the AACR (Free AACR Whitepaper) Annual Meeting 2023
Expanded the company’s Scientific Advisory Board (SAB) with the addition of two internationally-renowned clinical immuno-oncology experts:
Myriam Chalabi, M.D.: Medical oncologist and researcher at the Netherlands Cancer Institute
Evan Y. Yu, M.D.: Section Head for Cancer Medicine, Clinical Research Division at the Fred Hutchinson Cancer Center and Medical Director for Clinical Research at the Fred Hutchinson Cancer Consortium
Hosted Key Opinion Leader Event on KVA12123: VISTA as an Immuno-oncology target with Dr. Michael A. Curran, Ph.D. (MD Anderson Cancer Center Department of Immunology) and Dr. Patricia LoRusso, D.O. (Yale School of Medicine Cancer Center)
ANTICIPATED FUTURE MILESTONES
Dose first patient in the combination arm (Part B) of the ongoing KVA12123 Phase 1/2 clinical study
Report initial clinical data of KVA12123 by end of 2023
FIRST QUARTER 2023 FINANCIAL HIGHLIGHTS
Cash position: As of March 31, 2023, cash was $9.2 million, compared to $13.1 million as of December 31, 2022. The decrease was primarily due to cash used for clinical trial development of KVA12123 as well as general corporate purposes, partially offset by $0.8 million net proceeds received from the sale of 126,503 shares of our common stock in connection with an at-the-market equity offering program. We believe our cash position as of March 31, 2023, together with the $5.5 million net proceeds received in April 2023 plus the committed proceeds of $22.5 million pursuant to the second closing of the private placement expected in July 2023, will be sufficient to fund operating expenses and capital expenditure requirements into early 2025.
Research and development (R&D) expense: R&D expenses were $2.8 million for the three months ended March 31, 2023 compared to $4.0 million for the three months ended March 31, 2022. The decrease in R&D expenses was primarily due to lower activities for KVA12123 as we began securing clinical trial sites and enrolling patients in advance of enrolling the first patient, which occurred in April 2023. We expect our R&D expenses to increase over time this year as we enroll and dose additional patients.
General and administrative expense: General and administrative expenses were $3.9 million for the three months ended March 31, 2023 compared to $1.6 million for the three months ended March 31, 2022. The increase was primarily due to higher personnel-related costs from non-cash stock-based compensation with performance conditions contingent upon the closing of the reverse merger and increased public company expenses such as professional services fees and insurance.
Net loss: The Company reported a net loss of $6.5 million, or $0.77 per basic and diluted share, compared to a net loss of $5.0 million, or $1.07 per basic and diluted share, for the prior year.