On March 17, 2022 Black Diamond Therapeutics, Inc. (Nasdaq: BDTX), a precision oncology medicine company pioneering the discovery and development of MasterKey therapies, reported financial results for the fourth quarter and full year ended December 31, 2021 and provided a corporate update (Press release, Black Diamond Therapeutics, MAR 17, 2022, View Source [SID1234610304]).

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"At Black Diamond, we are on a mission to expand the reach of precision cancer medicines and are pleased with the work we have accomplished in 2021 as demonstrated by the breadth of our MasterKey inhibitor pipeline," said David Epstein, Ph.D., President and Chief Executive Officer of Black Diamond Therapeutics. "In the year ahead, our priorities are to execute on the Phase 1 trial of BDTX-1535 and continue to advance our pipeline using our proprietary MAP drug discovery engine as we focus on our early stage programs, including CNS-BRAF (BDTX-4933). We believe our differentiated MasterKey therapies and novel approach to targeting oncogenic mutations can bring meaningful clinical benefit to patients not adequately served by today’s approved therapies."

Recent Developments

BDTX-1535:

In March 2022, Black Diamond initiated the Phase 1 study of BDTX-1535 for the treatment of glioblastoma multiforme (GBM) and non-small cell lung cancer (NSCLC) including those with central nervous system (CNS) metastases, following the U.S. Food and Drug Administration (FDA)’s allowance of the investigational new drug (IND) application for the study in January 2022.
In October 2021, the Company presented preclinical data at the ANE AACR-NCI-EORTC (Free AACR-NCI-EORTC Whitepaper) International Conference on Molecular Targets and Cancer Therapeutics (EORTC-NCI-AACR) (Free ASGCT Whitepaper) (Free EORTC-NCI-AACR Whitepaper), showing that in cell-based assays, BDTX-1535 achieved potent and selective inhibition of a range of EGFR mutations expressed in NSCLC and demonstrated a favorable brain-penetrant pharmacokinetic (PK) profile in animal models. Additionally, BDTX-1535 showed dose-dependent tumor growth inhibition and complete regression in an allograft mouse model harboring EGFR C797S acquired resistance mutation.
The Company expects to provide a clinical update on the Phase 1 study of BDTX-1535 in the second half of 2023.
BDTX-189:

The Company is actively enrolling patients in the safety expansion cohort of the Phase 1 study of BDTX-189 in order to inform the future development of the program.
The Company expects to provide further guidance on the BDTX-189 program in 2022.
CNS-BRAF Program (BDTX-4933):

Black Diamond is developing a CNS-penetrant BRAF inhibitor against a family of Class I, II, III canonical and non-canonical mutations. The Company’s CNS-BRAF development candidate, BDTX-4933, is designed to be highly selective and potent, with the ability to avoid paradoxical activation.
In October 2021, the Company presented preclinical data at the ANE International Conference for a lead compound from the BRAF program, demonstrating potent inhibition of a family of Class II/III BRAF mutations shown in cell-based assays.
Black Diamond initiated IND-enabling studies for this program in the first quarter of 2022.
MAP Drug Discovery Engine:

Black Diamond is continuing to develop its Mutation-Allostery-Pharmacology (MAP) Drug Discovery Engine, predicting and validating novel oncogenic mutant families from population level tumor genomics, and exploring opportunities beyond oncology and small molecules to bring therapies to underserved patients.
In October 2021, Black Diamond shared multiple preclinical data presentations from its pipeline programs at the ANE International Conference including BDTX-1535, CNS-BRAF (BDTX-4933) and FGFR program compounds. The data showcased the potential breadth of coverage of oncogenic mutations across each program’s therapeutic area in animal models. Collectively, the presentations support the promise of the MAP Drug Discovery Engine’s algorithmic approach to targeting oncogenic mutations.
Corporate:

In February 2022, Black Diamond appointed Elizabeth Montgomery as its Chief People Officer, who joined the Company with nearly two decades of expertise and experience in developing strong corporate culture at a number of life sciences organizations.
Financial Highlights

Cash Position: Black Diamond ended 2021 with approximately $209.8 million in cash, cash equivalents, and investments compared to $315.1 million as of December 31, 2020. Net cash used in operations was $100.1 million for the year ended December 31, 2021 compared to $52.1 million for the year ended December 31, 2020.
Research and Development Expenses: Research and development (R&D) expenses were $19.7 million for the fourth quarter of 2021, compared to $17.8 million for the same period in 2020. Research and development expenses were $96.8 million for the year ended December 31, 2021, compared to $48.2 million for the year ended December 31, 2020. The increase in R&D expenses was primarily due to an increase in headcount and increased spend across preclinical and clinical development.
General and Administrative Expenses: General and administrative (G&A) expenses were $6.4 million for the fourth quarter of 2021, compared to $5.4 million for the same period in 2020, and $30.0 million for the year ended December 31, 2021, compared to $21.4 million for the year ended December 31, 2020. The increase in G&A expenses was primarily due to an increase in personnel and other corporate-related costs.
Net Loss: Net loss for the fourth quarter of 2021 was $25.9 million, as compared to $22.6 million for the same period in 2020. Net loss for the year ended December 31, 2021 was $125.6 million compared to $67.3 million for the year ended December 31, 2020.
Financial Guidance

Black Diamond ended 2021 with approximately $209.8 million in cash, cash equivalents and investments, which the Company believes is sufficient to fund its anticipated operating expenses and capital expenditure requirements into 2024.