Conatus Pharmaceuticals Reports Third Quarter 2019 Financial Results

On November 5, 2019 Conatus Pharmaceuticals Inc. (Nasdaq:CNAT) reported financial results for the quarter and nine months ended September 30, 2019 (Press release, Conatus Pharmaceuticals, NOV 5, 2019, View Source [SID1234550316]).

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!

Recent Developments

In June 2019, Conatus announced that top-line results from its ENCORE-LF clinical trial of emricasan did not meet its primary endpoint, and, Conatus and its partner, Novartis, had no further development plans for emricasan. In September 2019, Conatus and Novartis mutually agreed to terminate the collaboration agreement between the parties for the global development and commercialization of emricasan.

As previously announced, Conatus has engaged Oppenheimer & Co., Inc., as its financial advisor to assist in the exploration and evaluation of strategic alternatives to enhance shareholder value. There can be no assurance of a successful outcome from these efforts, or of the form or timing of any such outcome.

In connection with the discontinuation of emricasan and Conatus’ efforts to explore and evaluate strategic alternatives, Conatus announced in June 2019 that it was implementing a restructuring plan in order to extend its resources, which included reducing staff and suspending development of its inflammasome disease candidate, CTS-2090, and in September 2019 it implemented another restructuring plan in order to extend its resources, which included further reducing staff.

Financial Results
The net loss for the third quarter of 2019 was $3.3 million compared with $4.6 million for the third quarter of 2018. The net loss for the first nine months of 2019 was $8.7 million compared with $14.1 million for the first nine months of 2018.

All revenues were related to the company’s collaboration with Novartis. Total revenues were $3.4 million for the third quarter of 2019 compared with $7.7 million for the third quarter of 2018. Total revenues were $21.2 million for the first nine months of 2019 compared with $26.2 million for the first nine months of 2018. The decreases in revenues for both periods were primarily due to lower emricasan-related research and development expenses resulting in corresponding lower revenues from Novartis.

Research and development expenses were $4.7 million for the third quarter of 2019 compared with $9.7 million for the third quarter of 2018. The decrease in research and development expenses was primarily due to lower spending related to emricasan-related activities. Research and development expenses were $22.7 million for the first nine months of 2019 compared with $32.5 million for the first nine months of 2018. These decreases were primarily due to lower emricasan-related research and development expenses.

General and administrative expenses were $2.0 million for the third quarter of 2019 compared with $2.7 million for the third quarter of 2018. General and administrative expenses were $7.7 million for the first nine months of 2019 compared with $8.0 million for the first nine months of 2018. These decreases were primarily due to lower personnel costs resulting from the restructuring plan announced in June 2019.

Cash, cash equivalents and marketable securities were $22.7 million at September 30, 2019, compared with $40.7 million at December 31, 2018. The company is projecting a year-end 2019 net balance of cash, cash equivalents and marketable securities of between $10 million and $15 million.

Lineage Cell Therapeutics to Report Third Quarter 2019 Financial Results and Provide Business Update on November 12, 2019

On November 5, 2019 Lineage Cell Therapeutics, Inc. (NYSE American and TASE: LCTX), a clinical-stage biotechnology company developing novel cell therapies for unmet medical needs, reported that it will report its third quarter 2019 financial and operating results on Tuesday, November 12, 2019, following the close of the U.S. financial markets (Press release, Lineage Cell Therapeutics, NOV 5, 2019, View Source [SID1234550332]). Lineage management will also host a conference call and webcast on Tuesday, November 12, 2019, at 4:30 p.m. Eastern Time/1:30 p.m. Pacific Time to discuss its third quarter 2019 financial results and to provide a business update.

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!

Interested parties may access the conference call by dialing (866) 888-8633 from the U.S. and Canada and (636) 812-6629 from elsewhere outside the U.S. and Canada and should request the "Lineage Cell Therapeutics Call". A live webcast of the conference call will be available online in the Investors section of Lineage’s website. A replay of the webcast will be available on Lineage’s website for 30 days and a telephone replay will be available through November 19, 2019, by dialing (855) 859-2056 from the U.S. and Canada and (404) 537-3406 from elsewhere outside the U.S. and Canada and entering conference ID number 1473397.

Vericel Reports Record Third Quarter Revenues, Net Income and Operating Cash Flow

On November 5, 2019 Vericel Corporation (NASDAQ:VCEL), a leader in advanced therapies for the sports medicine and severe burn care markets, reported financial results for the third quarter ended September 30, 2019, and recent business highlights (Press release, Vericel, NOV 5, 2019, View Source [SID1234550348]).

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!

Third Quarter 2019 Financial Highlights

Total net product revenues increased 36% to $30.5 million compared to $22.5 million in the third quarter of 2018, marking the tenth consecutive quarter with record revenues for the reported quarter;

MACI net revenue of $20.6 million and Epicel net product revenue of $9.9 million, the highest quarterly Epicel revenue in history;

Gross margin of 69% compared to gross margin of 64% in the third quarter of 2018;

Net income of $3.5 million, or $0.07 per share, compared to a net loss of $1.1 million, or $0.02 per share, in the third quarter of 2018;

Non-GAAP adjusted EBITDA of $6.8 million compared to $0.9 million in the third quarter of 2018;

Operating cash flow of $7.9 million;

As of September 30, 2019, the company had $74.7 million in cash and short-term investments compared to $82.9 million as of December 31, 2018; and

Full year 2019 revenue guidance for MACI and Epicel raised to $116 to $118 million compared to previous full year revenue guidance of $112 to $116 million.

Recent Business Highlights

During and since the third quarter of 2019, the company:

Announced plans to expand the MACI sales force from 49 to 76 sales representatives and from six to nine sales regions by the second quarter of 2020;

Completed an initial expansion of the burn care sales team from six to nine sales representatives and burn clinical specialists; and

Announced initiation of the NexoBrid Expanded Access Treatment Protocol (NEXT) to treat patients with deep partial- and full-thickness burns in the United

States during the preparation and review of the NexoBrid Biologics License Application.

"We are very pleased with the growth of our business and expect to maintain strong double-digit revenue growth for the foreseeable future as we continue to make targeted investments in our sports medicine and burn care commercial franchises," said Nick Colangelo, president and CEO of Vericel. "Given the consistent improvement in our gross profit and operating margin, we believe that we are also well-positioned to generate strong profit and cash flow growth in the years ahead."

Third Quarter 2019 Results
Total net product revenues for the quarter ended September 30, 2019 increased 36% to $30.5 million compared to $22.5 million in the third quarter of 2018. Total net product revenues for the quarter included $20.6 million of MACI (autologous cultured chondrocytes on porcine collagen membrane) net revenue and $9.9 million of Epicel (cultured epidermal autografts) net revenue, compared to $16.4 million of MACI net revenue and $6.0 million of Epicel net revenue, respectively, in the third quarter of 2018.

Gross profit for the quarter ended September 30, 2019 was $21.2 million, or 69% of net revenues, compared to $14.3 million, or 64% of net revenues, for the third quarter of 2018.

Total operating expenses for the quarter ended September 30, 2019 were $18.1 million, compared to $15.7 million for the same period in 2018. The increase in operating expenses was primarily due to a $1.1 million increase in stock-based compensation expenses, a $0.8 million increase in marketing expenses and a $0.7 million increase in MACI sales force expenses driven by the sales force expansion in the second quarter of 2019.

Vericel’s net income for the quarter ended September 30, 2019 was $3.5 million, or $0.07 per share, compared to a net loss of $1.1 million, or $0.02 per share, for the third quarter of 2018.
Non-GAAP adjusted EBITDA was $6.8 million for the quarter ended September 30, 2019 compared to $0.9 million in the third quarter of 2018. A table reconciling non-GAAP measures is included in this press release for reference.

As of September 30, 2019, the company had $74.7 million in cash and short-term investments compared to $82.9 million as of December 31, 2018.

Full Year 2019 Financial Guidance
The company now expects total MACI and Epicel net product revenues for the full year 2019 to be in the range of $116 to $118 million, compared to the previous full year revenue guidance of $112 to $116 million.

Conference Call Information
Today’s conference call will be available live at 8:30am Eastern Standard Time and can be accessed through the Investor Relations section of the Vericel website at http://

investors.vcel.com/events-presentations. A slide presentation with highlights from today’s conference call will be available on the webcast and in the Investor Relations section of the Vericel website. Please access the site at least 15 minutes prior to the scheduled start time in order to download the required audio software if necessary. To participate in the live call by telephone, please call (877) 312-5881 and reference Vericel Corporation’s second-quarter 2019 investor conference call. If calling from outside the U.S., please use the international phone number (253) 237-1173.

If you are unable to participate in the live call, the webcast will be available at View Source until November 5, 2020. A replay of the call will also be available until 11:00am (EDT) on November 10, 2019 by calling (855) 859-2056, or from outside the U.S. at (404) 537-3406. The conference ID is 1685887.

Senti Biosciences Announces Upcoming Presentation of SENTI-101 Preclinical Efficacy Data at SITC 2019

On November 5, 2019 Senti Biosciences, the gene circuit company focused on outsmarting complex diseases with intelligent medicines, reported that Senti scientists will present data at the 34th Annual Meeting of the Society for Immunotherapy of Cancer (SITC) (Free SITC Whitepaper), being held November 6-10, 2019, in National Harbor, Maryland (Press release, Senti Biosciences, NOV 5, 2019, View Source [SID1234550364]).

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!

Senti’s gene circuit platform enables the programming of any cell and gene therapy modality, including immune cells, stem cells, and viral vectors. The poster presentation highlights preclinical data from one of Senti’s programs, SENTI-101, an allogeneic cell therapy designed to treat patients with ovarian cancer and other solid tumors.

"This SITC (Free SITC Whitepaper) poster presentation is an important milestone for Senti Biosciences because it reveals an exciting translational application of our gene circuit platform, which has the potential to broadly transform cell and gene therapies," said Dr. Timothy Lu, CEO of Senti Biosciences.

The SENTI-101 program uses tumor-homing allogeneic cells as a drug delivery vehicle to achieve localized, combinatorial expression of two cytokines. This pair of cytokines activates a multifactorial immune response against solid tumors, and turns immunologically cold tumors hot. SENTI-101 was developed through Senti’s systematic design-build-test-learn process, wherein more than 250 different gene circuits including individual, two-wise and three-wise combinations of immune effectors were tested for their ability to treat cold tumors and trigger a robust tumor immunity cycle. This approach of programming artificial pharmacology into allogeneic cells enables delivery of high concentrations of multi-factorial immunotherapies locally in the tumor microenvironment, which Senti believes will be critical to transforming therapy for solid tumors.

"There’s a huge unmet need when it comes to developing treatments for patients whose tumors do not respond to checkpoint inhibitors, and we are excited about the potential for SENTI-101 to help these patients," said Gary Lee, Ph.D., Chief Scientific Officer at Senti Biosciences.

SENTI-101 is a novel product candidate comprising allogeneic mesenchymal stromal cells (MSCs) genetically modified to express a combination of immunomodulatory cytokines — Interleukin 12 (IL-12) and Interleukin 21 (IL-21). Together, IL-12 and IL-21 enable highly effective and complementary stimulation of anti-tumor immunity.

Upon administration in preclinical models, SENTI-101:

Innately homes to peritoneal tumors (>10-fold higher vs. normal tissues, p≤0.0001)
Secretes IL-12 and IL-21 in a localized and sustained fashion within tumors of the peritoneal space (~100-fold greater in peritoneal space vs. serum [p≤0.002])
Induces a robust and durable anti-tumor immune response, resulting in more than 200-fold (p≤0.0001) and 10-fold (p≤0.0001) reduction in tumor burden in CT26-fLUC and B16-F10-fLUC models, respectively
Prolongs tumor-free survival compared to controls and checkpoint inhibitor therapy in syngeneic tumor models, including the checkpoint refractory B16-F10 model, and notably, mice treated with the SENTI-101 combination outperformed those treated with MSCs expressing each individual cytokine
Additionally, surviving mice rejected a second round of newly implanted tumor cells, thereby demonstrating anti-tumor immune memory
Mechanistically involves multiple important immune cell subtypes, including CD4 and CD8 T cells, antigen-presenting cells (APCs), B cells and NK cells
The SITC (Free SITC Whitepaper) abstract can be accessed here: http://bit.ly/2Wt2wli

Recent Corporate Update

In addition to its gene circuits and translational biology capabilities, Senti has established in-house process development, regulatory, and clinical expertise to pursue IND-enabling studies, GMP manufacturing, and clinical protocol development for its pipeline. Additional gene circuit cell therapy programs for solid tumors and difficult-to-treat liquid tumors are also underway, with plans to advance candidates for clinical development in the next year.

Senti’s corporate strategy is focused on internal product development, as well as establishing collaborations with other companies. The gene circuit platform can be paired with a variety of complementary technologies to create next-generation cell and gene therapies with improved performance. For example, Senti’s engineered promoters and logic gates enable cell and gene therapies with programmable specificity and high activity in defined cell states or cell types. In addition, Senti’s Pro-Dial platform allows for cell and gene therapies to be titrated up or down in a rheostat fashion with FDA-approved small molecule drugs. These technologies have the potential to make cell and gene therapies controllable, targeted and dynamic, thus increasing the therapeutic window and addressing indications not accessible by current therapies.

Regeneron Provides Updates on Phase 3 Libtayo® (cemiplimab) Development Program in Advanced Non-small Cell Lung Cancer

On November 5, 2019 Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) reported an update on the ongoing Phase 3 development program evaluating Libtayo (cemiplimab), a PD-1 inhibitor, as monotherapy and combination therapy in first-line patients with advanced non-small cell lung cancer (NSCLC) (Press release, Regeneron, NOV 5, 2019, View Source [SID1234550380]). Regeneron is currently recruiting patients in two Phase 3 trials in first-line NSCLC.

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 first trial, an open-label randomized trial that compares Libtayo monotherapy to standard-of-care platinum-based chemotherapy in patients with high PD-L1 expression (tumor proportion score [TPS] >50%):

The trial has enrolled 90% of the 700 planned patients and is expected to be fully enrolled by year’s end.
The independent data monitoring committee recently conducted an interim analysis for overall survival (OS) based on approximately 34% of anticipated events and recommended the trial should continue as planned. The next event-driven interim analysis for OS is anticipated in 2020.
In the first 361 randomized patients (minimum 6 months of follow-up), the confirmed objective response rate (ORR), as determined by investigators, is currently 42% for Libtayo patients and 22% for patients treated with chemotherapy.
The second trial, which consists of two parts, evaluates Libtayo in combination with platinum-based chemotherapy:

Part 1 is fully enrolled (n=323), and evaluates patients with PD-L1 expression of <50% in three treatment groups: chemotherapy, chemotherapy with Libtayo, and chemotherapy in combination with Libtayo and ipilimumab.
Part 2, a randomized, double-blind, placebo-controlled Phase 3 trial (n=450), has enrolled approximately 20% of patients, and is expected to complete enrollment in the second half of 2020. The trial evaluates patients with all PD-L1 expression levels in two treatment groups: chemotherapy alone or chemotherapy in combination with Libtayo.
Libtayo is being jointly developed by Regeneron and Sanofi under a global collaboration agreement. Libtayo is a PD-1 inhibitor that was invented by Regeneron using the company’s proprietary VelocImmune technology, which uses a genetically-humanized mouse to produce optimized fully-human antibodies.

About the Phase 3 Libtayo NSCLC Trials
The primary endpoints of the randomized, open-label Phase 3 monotherapy trial are OS and progression-free survival (PFS). Patients receive either Libtayo 350 mg every 3 weeks or investigator’s choice of a standard-of-care platinum-based doublet chemotherapy regimen (with or without maintenance therapy). Patients in the trial have stage IIIB, IIIC or stage IV squamous or non-squamous NSCLC, are not candidates for definitive chemotherapy and radiation, have not received prior systemic treatment for their advanced disease, and have high PD-L1 expression (TPS ³50%). As part of a separate internal research effort assessing the effect of baseline patient variables, an unintended aggregation of open-label ORR data by treatment group occurred for the first 361 enrolled patients. In NSCLC, regulatory authorities do not consider ORR a validated surrogate endpoint.

In the Phase 3 combination trial, the Part 1 primary endpoint is ORR and the Part 2 primary endpoints are OS and PFS. Patients in the Libtayo treatment groups receive 350 mg every 3 weeks. Trial patients have either stage IIIB or IIIC squamous or non-squamous NSCLC and are not candidates for treatment with definitive concurrent chemoradiation, or have stage IV disease and have not received prior systemic treatment for recurrent or metastatic NSCLC.

About Libtayo
Libtayo is a fully-human monoclonal antibody targeting the immune checkpoint receptor PD-1 (programmed cell death protein-1). It is approved in the U.S., European Union, Canada and Brazil for adult patients with metastatic cutaneous squamous cell carcinoma (CSCC) or locally advanced CSCC who are not candidates for curative surgery or curative radiation. In the U.S., the generic name for Libtayo is cemiplimab-rwlc, with rwlc as the suffix designated in accordance with Nonproprietary Naming of Biological Products Guidance for Industry issued by the U.S. Food and Drug Administration.

In addition to NSCLC, Libtayo is also being investigated in potential registrational trials in basal cell carcinoma and cervical cancer, along with additional trials in squamous cell carcinoma of the head and neck, melanoma, colorectal cancer, prostate cancer, multiple myeloma, Hodgkin lymphoma and non-Hodgkin lymphoma. These trials are designed to investigate Libtayo as monotherapy; in combination with conventional treatments like chemotherapy; or in combination with other investigational agents, including vaccines, oncolytic viruses and bispecific antibodies, among others. These potential uses are investigational, and their safety and efficacy have not been evaluated by any regulatory authority.

IMPORTANT SAFETY INFORMATION AND INDICATION FOR U.S. PATIENTS

What is the most important information I should know about Libtayo?
Libtayo is a medicine that may treat a type of skin cancer by working with your immune system. Libtayo can cause your immune system to attack normal organs and tissues in any area of your body and can affect the way they work. These problems can sometimes become severe or life-threatening and can lead to death. These problems may happen anytime during treatment or even after your treatment has ended.

Call or see your healthcare provider right away if you develop any symptoms of the following problems or these symptoms get worse:

Lung problems (pneumonitis). Signs and symptoms of pneumonitis may include new or worsening cough, shortness of breath, and chest pain.
Intestinal problems (colitis) that can lead to tears or holes in your intestine. Signs and symptoms of colitis may include diarrhea (loose stools) or more frequent bowel movements than usual; stools that are black, tarry, sticky or that have blood or mucus; and severe stomach-area (abdomen) pain or tenderness.
Liver problems (hepatitis). Signs and symptoms of hepatitis may include yellowing of your skin or the whites of your eyes, severe nausea or vomiting, pain on the right side of your stomach area (abdomen), drowsiness, dark urine (tea colored), bleeding or bruising more easily than normal, and feeling less hungry than usual.
Hormone gland problems (especially the adrenal glands, pituitary, thyroid and pancreas). Signs and symptoms that your hormone glands are not working properly may include headaches that will not go away or unusual headaches, rapid heartbeat, increased sweating, extreme tiredness, weight gain or weight loss, dizziness or fainting, feeling more hungry or thirsty than usual, hair loss, feeling cold, constipation, deeper voice, very low blood pressure, urinating more often than usual, nausea or vomiting, stomach-area (abdomen) pain, and changes in mood or behavior, such as decreased sex drive, irritability, or forgetfulness.
Kidney problems, including nephritis and kidney failure. Signs of these problems may include decrease in your amount of urine, blood in your urine, swelling in your ankles, and loss of appetite.
Skin problems. Signs of these problems may include rash, itching, skin blistering, and painful sores or ulcers in the mouth, nose, throat, or genital area.
Problems in other organs. Signs of these problems may include headache, tiredness or weakness, sleepiness, changes in heartbeat (such as beating fast, seeming to skip a beat, or a pounding sensation), confusion, fever, muscle weakness, balance problems, nausea, vomiting, stiff neck, memory problems, seizures (encephalitis), swollen lymph nodes, rash or tender lumps on skin, cough, shortness of breath, vision changes, or eye pain (sarcoidosis), seeing or hearing things that are not there (hallucinations), severe muscle weakness, low red blood cells (anemia), bruises on the skin or bleeding, and changes in eyesight.
Rejection of a transplanted organ. Your doctor should tell you what signs and symptoms you should report and monitor you, depending on the type of organ transplant that you have had.
Infusion (IV) reactions that can sometimes be severe and life-threatening. Signs of these problems may include chills or shaking, itching or rash, flushing, shortness of breath or wheezing, dizziness, fever, feeling of passing out, back or neck pain, and facial swelling.
Getting medical treatment right away may help keep these problems from becoming more serious.

Your healthcare provider will check you for these problems during your treatment with Libtayo. Your healthcare provider may treat you with corticosteroid or hormone replacement medicines. Your healthcare provider may delay or completely stop treatment if you have severe side effects.

Before you receive Libtayo, tell your healthcare provider about all your medical conditions, including if you:

have immune system problems such as Crohn’s disease, ulcerative colitis, or lupus;
have had an organ transplant;
have lung or breathing problems;
have liver or kidney problems;
have diabetes;
are pregnant or plan to become pregnant; Libtayo can harm your unborn baby.
Females who are able to become pregnant:
Your healthcare provider will give you a pregnancy test before you start treatment.
You should use an effective method of birth control during your treatment and for at least 4 months after your last dose of Libtayo. Talk with your healthcare provider about birth control methods that you can use during this time.
Tell your healthcare provider right away if you become pregnant or think you may be pregnant during treatment with Libtayo.
are breastfeeding or plan to breastfeed. It is not known if Libtayo passes into your breast milk. Do not breastfeed during treatment and for at least 4 months after the last dose of Libtayo.
Tell your healthcare provider about all the medicines you take, including prescription and over-the-counter medicines, vitamins, and herbal supplements.

The most common side effects of Libtayo include tiredness, rash, and diarrhea. These are not all the possible side effects of Libtayo. Call your doctor for medical advice about side effects. You may report side effects to FDA at 1-800-FDA-1088. You may also report side effects to Regeneron Pharmaceuticals and Sanofi at 1-877-542-8296.

Please see accompanying full Prescribing Information, including Medication Guide.

What is Libtayo?

Libtayo is a prescription medicine used to treat people with a type of skin cancer called cutaneous squamous cell carcinoma (CSCC) that has spread or cannot be cured by surgery or radiation.

It is not known if Libtayo is safe and effective in children.