On February 29, 2016 Puma Biotechnology, Inc. (NYSE: PBYI), a biopharmaceutical company, reported financial results for the fourth quarter and year ended December 31, 2015 (Filing, Q4/Annual, Puma Biotechnology, 2015, FEB 29, 2016, View Source [SID:1234509300]).

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Unless otherwise stated, all comparisons are for the fourth quarter and full year 2015 compared to the fourth quarter and full year 2014, respectively.

Based on accounting principles generally accepted in the United States (GAAP), Puma reported a net loss applicable to common stock of $61.7 million, or $1.90 per share, for the fourth quarter of 2015, compared to a net loss of $47.5 million, or $1.57 per share, for the fourth quarter of 2014. Net loss applicable to common stock for the full year 2015 was $239.3 million, or $7.45 per share, compared to $142.0 million, or $4.73 per share, for the full year 2014.

Non-GAAP adjusted net loss was $40.0 million, or $1.23 per share, for the fourth quarter of 2015, compared to non-GAAP adjusted net loss of $31.1 million, or $1.03 per share, for the fourth quarter of 2014. Non-GAAP adjusted net loss for the full year 2015 was $144.3 million, or $4.49 per share, compared to $102.8 million, or $3.43 per share, for the full year 2014. Non-GAAP adjusted net loss excludes stock-based compensation expense, which represents a significant portion of overall expense and has no impact on the Company’s cash position. For a reconciliation of GAAP net loss to non-GAAP adjusted net loss and GAAP net loss per share to non-GAAP adjusted net loss per share, please see the financial tables at the end of this news release.

Net cash used in operating activities for the fourth quarter of 2015 was $33.3 million. Net cash used in operating activities for the full year 2015 was $154.5 million. At December 31, 2015, Puma had cash and cash equivalents of $31.6 million and marketable securities of $184.3 million, compared to cash and cash equivalents of $38.5 million and marketable securities of $102.8 million at December 31, 2014. Puma’s current level of cash and cash equivalents and marketable securities includes net proceeds of approximately $205.1 million from a public offering of the Company’s common stock, which was completed in January 2015.

"During the fourth quarter of 2015, Puma accomplished several clinical and regulatory milestones that contributed significant value to the shareholders of the Company," said Alan H. Auerbach, Chairman, Chief Executive Officer and President of Puma. "From the clinical perspective, in December we reported additional data from our Phase III ExteNET trial at the San Antonio Breast Cancer Symposium (SABCS), which continued to demonstrate that after 3 years of follow up, treatment with neratinib resulted in a statistically significant benefit in disease-free survival in patients with early stage HER2 positive breast cancer who had completed one year of adjuvant trastuzumab therapy. In addition, at SABCS we presented interim data from the Phase II trial of neratinib in patients with HER2-negative breast cancer who have a HER2 mutation that showed compelling benefit with neratinib, both as a monotherapy and in combination with fulvestrant. We also announced the interim data from our Phase II trial of neratinib monotherapy in patients with early stage HER2- positive breast cancer who had completed treatment with adjuvant trastuzumab, which demonstrated that using the loperamide prophylaxis with neratinib monotherapy treatment resulted in a lower rate of overall diarrhea, specifically grade 3 diarrhea, and resulted in diarrhea that was short term in duration and self-limiting. From the regulatory perspective, in November we announced that based on our Marketing Authorization Application (MAA) pre-submission meeting with the European Medicines Agency (EMA), at which the EMA assessed that there were no critical concerns that would prevent us from submitting a complete MAA for European centralized review in support of neratinib for the extended adjuvant treatment of HER2-positive early stage breast cancer in patients who have previously been treated with a trastuzumab-containing regimen, that we anticipate submitting an MAA for neratinib in this indication in the first half of 2016.

"We look forward to continuing to contribute value to shareholders with neratinib during 2016. We anticipate (i) submitting a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) during the first quarter of 2016 and submitting the MAA to the EMA during the first half of 2016 for neratinib for the extended adjuvant treatment of HER2-positive early stage breast cancer based on the positive ExteNET Phase III trial; (ii) reporting additional data from the Phase II trial of neratinib as an extended adjuvant treatment in HER2-positive early stage breast cancer using loperamide prophylaxis during the first half of 2016; (iii) reporting additional Phase II data from the FB-7 neoadjuvant HER2-positive breast cancer trial in the subgroup of patients who are MammaPrint High, during the first half of 2016; (iv) reporting Phase II data from an investigator sponsored trial of neratinib in patients with HER2-negative breast cancer who have a HER2 mutation in mid-2016; (v) reporting data from the Phase III trial of neratinib in third-line HER2-positive metastatic breast cancer patients in either the fourth quarter of 2016 or the first quarter of 2017; (vi) reporting data from the Phase II trial of neratinib in metastatic breast cancer patients with brain metastases during the fourth quarter of 2016; and (vii) reporting data from the Phase II trial of neratinib plus fulvestrant in patients with HER2 non-amplified breast cancer that has a HER2 mutation during the fourth quarter of 2016."

Operating Expenses
Operating expenses were $62.1 million for the fourth quarter of 2015, compared to $47.6 million for the fourth quarter of 2014. Operating expenses for the full year 2015 were $239.3 million compared to $142.3 million for the full year 2014.

General and Administrative Expenses:
General and administrative expenses were $9.6 million for the fourth quarter of 2015, compared to $8.1 million for the fourth quarter of 2014. General and administrative expenses for the full year 2015 were $31.8 million compared to $19.4 million for the full year 2014. Approximately $8.0 million of the year-over-year increase resulted from an increase in stock-based compensation expense, with the majority of the remaining increase made up of approximately $2.2 million in professional fees, $0.9 million in payroll and related expenses and $0.6 million in facility and equipment costs. These increases reflect our corporate growth.

Research and Development Expenses:
Research and development expenses were $52.5 million for the fourth quarter of 2015, compared to $39.5 million for the fourth quarter of 2014. Research and development expenses for the full year 2015 were $208.5 million, compared to $122.9 million for the full year 2014. Approximately $47.8 million of the year-over-year increase resulted from an increase in stock-based compensation expense, with the majority of the remaining increase made up of approximately $22.9 million in clinical trial expense, $9.0 million in internal costs such as payroll and related expenses, and $5.9 million in expenses related to consultants and contractors. These increases reflect our increased clinical trial activity.

On February 29, 2016 Kite Pharma, Inc. (Nasdaq:KITE), a clinical-stage biopharmaceutical company focused on developing engineered autologous cell therapy (eACT) products for the treatment of cancer, reported a corporate update and reported full-year and fourth quarter 2015 financial results for the period ended December 31, 2015 (Press release, Kite Pharma, FEB 29, 2016, View Source [SID:1234509308]).

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"2015 was a year of solid execution and transformation for Kite," noted Arie Belldegrun, M.D., FACS, Chairman, President, and Chief Executive Officer. "The development of KTE-C19, our breakthrough immunotherapy candidate for patients with refractory hematological malignancies who have limited or no treatment options, is currently advancing in four Kite-sponsored multi-center clinical studies. We expect interim pivotal data from ZUMA-1, our lead study of KTE-C19, in the second half of this year, positioning us to submit our registrational filing with the FDA by year end. Construction of our commercial manufacturing facility is complete, and commercial planning is currently progressing under the leadership of our Chief Commercial Officer, Shawn Tomasello, and her capable team."

Dr. Belldegrun continued, "We are advancing what we believe is the most robust clinical pipeline of chimeric antigen receptors and T cell receptors for both solid and hematological oncology. This effort is supported by our ongoing collaborations with distinguished academic and industry leaders in immuno-oncology. We expect that our pipeline progress in 2016 will include additional human proof of concept data supporting the potential of our TCRs for the treatment of solid tumors."

Full Year 2015 and Recent Highlights

KTE-C19 Program

Initiated Kite’s lead multi-center study (ZUMA-1) for KTE-C19 for the treatment of aggressive, refractory diffuse large B cell lymphoma (DLBCL), primary mediastinal B cell lymphoma (PMBCL), and transformed follicular lymphoma (TFL). DLBCL is the most common form of non-Hodgkin Lymphoma (NHL).

Announced positive data from the Phase 1 portion of ZUMA-1 and advanced the study to the pivotal phase. The overall safety, efficacy, and biomarker data were generally consistent with previously published data from the National Cancer Institute (NCI).

Initiated three additional pivotal multi-center studies of KTE-C19 for the treatment of relapsed/refractory mantle cell lymphoma (MCL), adult relapsed/refractory acute lymphoblastic leukemia (ALL), and pediatric relapsed/refractory ALL.

Received Breakthrough Therapy Designation for KTE-C19 for the treatment of patients with refractory DLBCL, PMBCL, and TFL.

Secured Orphan Drug Designations in the EU for KTE-C19 for all of Kite’s hematological indications.

Completed Kite’s clinical manufacturing facility that is manufacturing KTE-C19 and that will manufacture future product candidates.

Completed construction of Kite’s commercial manufacturing facility, which is on track for qualification and validation later this year.

Acquisition and Strategic Collaborations

Established European operations with the acquisition of T-Cell Factory, now known as Kite Pharma EU. Through this acquisition, Kite also gained the proprietary TCR-GENErator discovery platform developed by Ton Schumacher, Ph.D., Chief Scientific Officer of Kite Pharma EU.

Expanded clinical and research partnership with the NCI including:
An enhanced Cooperative Research and Development Agreement (CRADA) with the NCI’s Surgery Branch to advance multiple CAR and TCR programs led by Steven Rosenberg, M.D., Ph.D.
A separate CRADA with the NCI’s Experimental Transplantation and Immunology Branch to advance the development of a fully human anti-CD19 CAR product candidate. James Kochenderfer, M.D. is leading the Phase 1 study.

Expanded agreement with the Netherlands Cancer Institute for the exclusive option to license multiple TCR gene sequences for the development and commercialization of immunotherapy candidates targeting solid tumors.

Entered into a research and license agreement with Leiden University Medical Center in the Netherlands to identify and develop TCR product candidates targeting solid tumors that are associated with the human papillomavirus (HPV) type 16 infection.

Partnered with Amgen to develop and commercialize the next generation of novel CAR T cell immunotherapies.

Entered into a collaboration with bluebird bio to advance second-generation TCR cell therapy products to treat HPV-associated cancers.

Secured an exclusive license to Alpine Immune Sciences’ transmembrane immunomodulatory protein (TIPTM) technology for eACT-based products.

Corporate Milestones

Strengthened the organization with the addition of more than 100 new hires across all functions.

Formed Kite’s integrated commercial leadership team, led by Shawn Tomasello, Kite’s Chief Commercial Officer.

Appointed Dr. Franz B. Humer, former Chairman and Chief Executive of Roche Holding Ltd., to Kite’s Board of Directors.

Strengthened Kite’s Scientific Advisory Board with the addition of James Allison, Ph.D. and Padmanee Sharma, M.D., Ph.D., recognized immunotherapy leaders from MD Anderson Cancer Center.

Raised $272.6 million in net proceeds from a public offering in December 2015.

2016 Goals

Announce interim Phase 2 pivotal data from the ZUMA-1 study for the first 50 patients with 90-day follow-up in the second half of 2016.

Submit the KTE-C19 registration filing to the U.S. Food and Drug Administration (FDA) based on interim data from ZUMA-1 study by the end of 2016.

Expand KTE-C19 clinical program to Europe in preparation for a European registration filing in 2017.

Complete the qualification and validation testing of the commercial manufacturing facility in anticipation of pre-approval inspection by the FDA.

Initiate a second series of KTE-C19 studies for additional indications and earlier lines of therapy in DLBCL patients.

Present longer term follow-up KTE-C19 data in patients with refractory aggressive DLBCL from the Phase 1 portion of ZUMA-1.

File investigational new drug (IND) application with the FDA for a TCR product candidate that targets a MAGE antigen expressed on solid tumors.

Advance the Kite-Amgen collaboration resulting in the filing of an IND application with the FDA for a next generation CAR T cell immunotherapy candidate, the first of multiple INDs expected to originate from the collaboration.

Fourth Quarter and Full Year 2015 Financial Results

Revenue was $4.9 million for the fourth quarter of 2015 compared to $0 for the fourth quarter of 2014, and $17.3 million for the full year of 2015, compared to $0 for the full year of 2014. The increase was primarily due to revenue recognized under the Kite-Amgen collaboration.

Research and development expenses were $28.8 million for the fourth quarter of 2015, compared to $7.9 million for the fourth quarter of 2014, and $76.4 million for the full year of 2015 compared to $23.1 million in 2014. The full-year increase of $53.3 million was primarily attributable to a $31.5 million increase in research and development and manufacturing expenses supporting the advancement of KTE-C19 and other programs, $11.8 million in expenses related to increased personnel and consulting costs, and $10.0 million of non-cash stock-based compensation expense.

General and administrative expenses were $14.1 million for the fourth quarter of 2015, compared to $5.4 million for the fourth quarter of 2014, and $44.2 million for the full year of 2015, compared to $13.6 million in 2014. The full-year increase of $30.6 million was primarily attributable to an $8.2 million increase in personnel related expenses, $7.8 million for public company expenses and license obligations, and $14.6 million of non-cash stock-based compensation.

Net loss attributable to common stockholders was $38.2 million, or $0.85 per share, for the fourth quarter of 2015, compared to $13.0 million, or $0.33 per share, for the fourth quarter of 2014. For the full year of 2015, the net loss was $101.7 million, or $2.33 per share, compared to $43.7 million, or $1.91 per share, in 2014.

Non-GAAP net loss attributable to common stockholders for the fourth quarter of 2015 was $24.5 million, or $0.54 per share, which excludes non-cash stock-based compensation expense of $13.8 million for the fourth quarter of 2015. Non-GAAP net loss attributable to common stockholders for the full year of 2015 was $61.0 million, or $1.40 per share, which excludes non-cash stock-based compensation expense of $40.7 million for the full year of 2015.

As of December 31, 2015, Kite had $614.7 million in cash, cash equivalents, and marketable securities, compared to $367.0 million as of December 31, 2014.

Kite expects the full year 2016 net cash burn to be $235 to $250 million dollars, which includes approximately $20 million in capital expenditures, but excludes any inflows or outflows from business development activities. The estimated full year 2016 net cash burn is primarily driven by an estimated net loss of $295 to $310 million, which includes an estimated $80 million of non-cash stock-based compensation expense.

On February 29, 2016 ArQule, Inc. (NASDAQ:ARQL) reported its financial results for the fourth quarter and full year of 2015 (Press release, ArQule, FEB 29, 2016, View Source [SID:1234509263]).

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For the quarter ended December 31, 2015, the Company reported a net loss of $2,852,000 or $0.05 per share, compared with net loss of $3,512,000 or $0.06 per share, for the quarter ended December 31, 2014. The Company reported a net loss of $13,774,000 or $0.22 per share, for the year ended December 31, 2015, compared with a net loss of $23,391,000 or $0.37 per share, for the year ended December 31, 2014.

At December 31, 2015, the Company had a total of approximately $38,772,000 in cash and marketable securities.

Key Highlights

Tivantinib pivotal phase 3 trial, METIV-HCC, completed enrollment and preliminary biomarker data analysis reported at ASCO (Free ASCO Whitepaper) GI: The biomarker-driven phase 3 trial for tivantinib, METIV-HCC, in second line hepatocellular carcinoma (HCC) completed patient enrollment of over 300 patients. The planned interim assessment is expected to occur by early in the second quarter of 2016. Additionally, preliminary biomarker data from the METIV-HCC trial presented at the Gastrointestinal Symposium Conference (ASCO GI) confirmed Phase 2 data demonstrating that MET status, as determined by immunohistochemistry, was more frequently high after first-line therapy.

ARQ 087 trial continues to enroll: Enrollment in the phase 2 portion of the company’s trial with its FGFR inhibitor, ARQ 087, in intrahepatic cholangiocarcinoma (iCCA) continues to enroll patients at centers in Italy and the U.S. where they are screening patients for FGFR2 fusions. As this is an open label study the company remains encouraged by the ongoing clinical benefit observed in recently enrolled patients.

ARQ 092 Phase 1 trial for Proteus syndrome completed enrollment of the first cohort: Our collaborator, the National Institutes of Health (NIH), has completed enrollment of the first cohort of the Phase 1 trial with ARQ 092 in Proteus syndrome. To date, the drug has been well tolerated. As a next step, the NIH expects to begin enrolling the second cohort including patients 12 years and older.

ARQ 092 Phase 1b trial in oncology has five partial responses (PRs), four of which are now confirmed to have AKT1/PI3K mutations: A phase 1b trial of ARQ 092 as a single agent completed enrollment in the lymphoma and endometrial cohorts. The final cohort in patients with cancers harboring the AKT1 or P13K mutations is still enrolling. We continue to monitor duration of response and safety and will provide an update on the study later in the year.

ARQ 751, next generation AKT inhibitor, received investigational new drug approval from the Food and Drug Administration (FDA): ARQ 751 expands the company’s AKT portfolio. ARQ 751 has demonstrated signal abrogation and efficacy in pre-clinical in vitro and in vivo models harboring AKT1 and PI3K mutations. A phase 1 trial in oncology is expected to begin during the first half of 2016 targeting AKT1 and PI3K mutations.

Company announced it has entered into definitive agreements with institutional and accredited investors to raise $15.3 million through a registered direct offering of common stock: Net proceeds from the offering will be used to advance ArQule’s proprietary pipeline and for general business purposes, including working capital. The proceeds are expected to fund company operations into 2018.

2016 Goals

ARQ 092 – AKT Inhibitor

Analyze phase 1 data in Proteus syndrome and make decisions on next steps
Analyze phase 1b data in oncology and make decisions on next steps
Explore opportunities in other rare over-growth diseases

ARQ 087 – FGFR Inhibitor

Complete phase 2 portion of trial in iCCA and make decisions on next steps
Complete phase 1b portion of trial in oncology and make decisions on next steps

ARQ 751 – next-generation AKT inhibitor

Initiate phase 1 trial in oncology in patients with AKT1 and PI3K mutations

Tivantinib

Complete METIV-HCC planned interim analysis by early Q2’16 and make decisions on next steps

"We are extremely pleased with the progress we made in 2015," said Paolo Pucci, Chief Executive Officer of ArQule. "From reducing our cash utilization, to progressing two proprietary compounds in three indications in the clinic, and ultimately completing enrollment of the METIV-HCC trial, it has been a productive year at ArQule. Our accomplishments in 2015 are moving us closer to being able to provide therapeutic options to patients with unmet needs through the use of precision medicine."

"2015 was a successful year for us in pipeline development," said Dr. Brian Schwartz, M.D., Head of Research and Development and Chief Medical Officer at ArQule. "We initiated two new trials within our proprietary pipeline, presented data at six scientific meetings and had two manuscripts published on ARQ 092 in peer reviewed medical journals. We are also beginning to see the value of our precision medicine approach through the clinical results we have accumulated in the ARQ 092 oncology trial and the ARQ 087 iCCA trial."

"2016 will be a year of clinical data at ArQule," said Mr. Pucci. "With the METIV-HCC interim assessment and final results on the horizon, we will have our first potential opportunity to move towards commercialization. Results from our earlier stage clinical trials, including ARQ 092 in oncology and Proteus syndrome, and ARQ 087 in iCCA, could provide us with our first opportunity to bring proprietary assets into the final stages of clinical development. We look forward to providing updates on our pipeline as the year progresses."

Revenues and Expenses

Revenues for the quarter ended December 31, 2015, were $2,797,000, compared with revenues of $3,015,000 for the quarter ended December 31, 2014. Revenues for the year ended December 31, 2015 were $11,239,000 compared with revenues of $11,254,000 for the year ended December 31, 2014. Research and development revenue in 2015 and 2014 includes revenue from the Daiichi Sankyo tivantinib development agreement and the Kyowa Hakko Kirin exclusive license agreement.

Research and development expenses in the fourth quarter of 2015 were $3,641,000, compared with $4,290,000 for the fourth quarter 2014. Fiscal 2015 research and development expenses were $15,561,000, compared with $22,271,000 for fiscal 2014.

The $0.6 million decrease in research and development expense in the fourth quarter of 2015 was primarily due to lower labor related costs of $0.2 million from reduced headcount and facility costs of $0.4 million. The $6.7 million decrease in research and development expense in fiscal 2015 was primarily due to lower labor related costs of $2.4 million from reduced headcount, outsourced clinical and product development costs of $1.7 million, facility costs of $1.9 million and lab expenses of?$0.7 million.

General and administrative expenses in the fourth quarter of 2015 were $2,028,000, compared with $2,836,000 for the fourth quarter of 2014. General and administrative expenses for fiscal 2015 were $9,830,000, compared to $12,154,000 for fiscal 2014.

General and administrative expense in the fourth quarter of 2015 decreased primarily due to lower facility costs of $0.8 million. General and administrative expense in 2015 decreased $2.3 million primarily due to lower labor related costs from reduced headcount of $0.7 million and facility costs of $1.5 million.

2016 Financial Guidance

For 2016, ArQule expects net use of cash to range between $23 and $25 million. Revenues are expected to range between $4 and $5 million. Net loss is expected to range between $24 and $27 million, and net loss per share to range between $(0.38) and $(0.43) for the year. ArQule expects to end 2016 with between $29 and $31 million in cash and marketable securities, inclusive of the $15.2 million of funds expected to be received upon the closing of the recent stock offering.

On February 29, 2016 Curis, Inc. (NASDAQ:CRIS), a biotechnology company focused on the development and commercialization of innovative drug candidates for the treatment of human cancers, reported its financial results for the fourth quarter and year ended December 31, 2015 (Press release, Curis, FEB 29, 2016, View Source [SID:1234509266]).

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"2015 has been a year of significant milestones for Curis," said Ali Fattaey, Ph.D., Curis’ President and CEO. "During the fourth quarter, we presented data from the Phase 1 trial of CUDC-907 at the American Society of Hematology (ASH) (Free ASH Whitepaper)’s annual meeting, including notable results from heavily pre-treated patients with DLBCL who experienced complete or partial responses, particularly in those with alterations of the MYC oncogene in their cancers. Based on these promising early results, in January we initiated a Phase 2 study to evaluate the efficacy of CUDC-907 in patients with relapsed/refractory DLBCL that harbor MYC alterations. There is a high unmet need for effective therapies for these patients due to their poor prognosis and a lack of optimal therapeutic options."

Dr. Fattaey continued, "We are making considerable progress with our pipeline and are on-track to file an IND application and initiate a Phase 1 clinical trial in cancer patients for CA-170, our first oral immuno-oncology drug candidate within the first half of 2016. We also expect to file an IND application for CA-4948, our IRAK4 inhibitor drug candidate, during the second half of 2016."

Full Year and Fourth Quarter 2015 Financial Results

For the year ended December 31, 2015, Curis reported a net loss of $59.0 million, or ($0.48) per basic and fully diluted share, as compared to a net loss of $18.7 million or ($0.22) per basic and fully diluted share in 2014. The 2015 net loss includes a one-time charge for in-process research and development expense of $24.3 million associated with the issuance of 17,120,131 shares of Curis common stock to Aurigene as partial consideration for the rights granted under the terms of the parties’ January 2015 collaboration agreement. For the fourth quarter of 2015, Curis reported a net loss of $13.5 million, or ($0.10) per basic and fully diluted share, as compared to a net loss of $5.7 million or ($0.07) per basic and fully diluted share for the same period in 2014.

Revenues for the year ended December 31, 2015 were $7.9 million as compared to $9.8 million for the same period in 2014. Substantially all of the Company’s revenues in 2015 and 2014 were recorded under Curis’ collaboration with Genentech. The decrease in revenues for the year ended December 31, 2015 was primarily due to a decrease in license fee revenues associated with a $3 million milestone payment earned during the year ending 2014. This decrease was partially offset by an increase in royalty revenues, which were $8.0 million and $6.8 million for the years ending 2015 and 2014, respectively.

Revenues for the fourth quarters of 2015 and 2014 were $2.1 million and $2.0 million, respectively, and were comprised almost entirely of Erivedge royalty revenues.

Operating expenses were $64.4 million for the year ended December 31, 2015, as compared to $25.7 million for the same period in 2014. Operating expenses for the fourth quarter of 2015 were $15.3 million, as compared to $6.8 million for the same period in 2014.

Costs of royalty revenues. Cost of royalty revenues, which are comprised of amounts due to third-party university patent licensors in connection with Genentech/Roche’s Erivedge net sales, were $406,000 for the year ended December 31, 2015, as compared to $340,000 for 2014. Cost of royalty revenues were $103,000 and $93,000 for the fourth quarters of 2015 and 2014, respectively.

In-process research and development expenses. The Company recorded a one-time charge for in-process research and development expense of $24.3 million during the year ended December 31, 2015 associated with the issuance of common stock to Aurigene.

Research and development expenses. Research and development expenses were $26.7 million for the year ended December 31, 2015 as compared to $13.7 million for 2014. The increase was primarily due to increases in spending on the Company’s CUDC-907 clinical development program, and preclinical programs under its collaboration with Aurigene. These increases were partially offset by decreases in spending on the Company’s other programs, including CUDC-427.

Research and development expenses were $12.0 million for the fourth quarter of 2015, as compared to $3.5 million for the same period in 2014. The Company incurred $6 million in milestone payments under the Aurigene collaboration during the fourth quarter of 2015.

General and administrative expenses. General and administrative expenses were $12.9 million for the year ended December 31, 2015 as compared to $11.7 million in 2014, and $3.2 million for each of the fourth quarters of 2015 and 2014. The increase in annual expense was primarily due to increased spending on legal costs, consulting and professional services and stock-based compensation.

Other expense was $2.5 million for the year ended 2015 and $2.9 million for the year ended 2014, and is primarily comprised of interest expense associated with the loan made by BioPharma-II to Curis Royalty, a wholly-owned subsidiary of Curis. Other expense was $215,000 for the fourth quarter of 2015, as compared to $878,000 for the fourth quarter of 2014. Interest expense was $788,000 and $914,000 for the fourth quarters of 2015 and 2014, respectively.

As of December 31, 2015, Curis’ cash, cash equivalents, marketable securities and investments totaled $82.2 million and there were approximately 129.0 million shares of common stock outstanding.

Financial Guidance

Curis expects to end 2016 with cash, cash equivalents and investments of $27 to 34 million, excluding any potential future payments from existing or new collaborators.

Curis expects that 2016 research and development expenses will be $40 to $45 million and that general and administrative expenses will be $12 to $14 million. These expense expectations include approximately $1 million and $2.5 million of estimated 2016 stock-based compensation expense in research and development and general and administrative expense, respectively, based on stock awards that are currently outstanding.

Recent Operational Highlights

CUDC-907 (oral, dual inhibitor of HDAC and PI3K enzymes):

In December 2015, Curis presented data from the Phase 1 trial of CUDC-907 at the American Society of Hematology (ASH) (Free ASH Whitepaper)’s Annual Meeting in Orlando, FL. The data demonstrated that monotherapy treatment with CUDC-907 resulted in complete (n=3) and partial responses (n=5) in heavily pretreated patients with relapsed/ refractory diffuse large B cell lymphoma (DLBCL), including those with cancers harboring alterations of the MYC oncogene, a poor performing sub-group of lymphomas for which there are no approved targeted therapies.

In January 2016, Curis initiated a Phase 2 study to evaluate the efficacy and safety of CUDC-907 with and without rituximab in patients with relapsed/ refractory MYC-altered DLBCL.

Aurigene Collaboration (Immuno-Oncology):

In October 2015, Curis exercised its option to exclusively license a first-in-class oral, small molecule antagonist of immune checkpoint proteins and designated it CA-170. The molecule targets PD-L1 and VISTA, two negative regulators of immune activation. The toxicology studies required to support the investigational new drug (IND) application for CA-170 have been completed and Curis expects to file the IND application and initiate its Phase 1 clinical development in the first half of 2016.

In November 2015, Curis’ collaborator Aurigene presented preclinical data from the CA-170 program at the 2015 AACR (Free AACR Whitepaper)-NCI-EORTC Molecular Targets and Cancer Therapeutics Conference in Boston, MA. The presentation included data from in vitro functional studies as well as studies with isolated human T cells that demonstrated that short exposures to CA-170 are adequate to rescue and sustain activation of T cells functions in culture. In addition, daily oral administration of CA-170 resulted in anti-tumor activity in multiple syngeneic tumor models including melanoma and colon cancer, whereas no activity was observed in immune-deficient SCID-Beige mice, suggesting that the anti-cancer effects of CA-170 were mediated via activation of immune responses to these cancers.

In October 2015, Curis also selected a third program for potential further development under the collaboration, which is the second preclinical program within the immuno-oncology field and which is focused on orally available small molecules targeting PD-L1 and TIM-3 immune checkpoints. TIM-3 is an independent inhibitory checkpoint that is co-expressed with PD-1 on highly exhausted cytotoxic T cells in tumor tissues and is also expressed on certain regulatory T cells. The Company has not yet exercised its option to license this program.
Aurigene Collaboration (IRAK4 Inhibitor):

In October 2015, Curis exercised its option to exclusively license a program of orally available small molecule inhibitors of IRAK4 kinase, a serine/threonine kinase involved in innate immune responses as well as in certain hematologic cancers. The Company has since designated the development candidate as CA-4948 and expects to file an IND application for this molecule during 2016.

In November 2015, Curis’ collaborator Aurigene presented preclinical data from the IRAK4 program at the 2015 AACR (Free AACR Whitepaper)-NCI-EORTC Molecular Targets and Cancer Therapeutics Conference in Boston, MA. This presentation included data from chemically distinct series of small molecule compounds with potent IRAK4 inhibitory activity in biochemical assays as well as in in vivo preclinical models, including MYD88 mutant DLBCL xenograft tumor models as well as a model of inflammatory disease.

Erivedge:

During the fourth quarter of 2015, Roche initiated a clinical study to evaluate the efficacy and safety of Erivedge in combination with ruxolitinib for the treatment of patients with intermediate- or high-risk myelofibrosis.

In January 2016, Roche initiated a study of Erivedge in combination with pirfenidone in patients with idiopathic pulmonary fibrosis (IPF). The study is designed as a single arm, multicenter Phase 1b study to evaluate the safety and tolerability of Erivedge in combination with pirfenidone in participants with IPF currently being treated with pirfenidone.
Upcoming Activities

Curis expects that it will make presentations at the following investor and scientific conferences through April 2016:

Cowen and Company 36th Annual Health Care Conference on March 7-9 in Boston, MA

ROTH Capital Growth Conference on March 13-16 in Los Angeles, CA

Jefferies 2016 Immuno-Oncology Summit on April 7-8 in Boston, MA

American Association for Cancer Research (AACR) (Free AACR Whitepaper) Annual Meeting on April 16-20 in New Orleans, LA

On February 29, 2016 MacroGenics, Inc. (NASDAQ:MGNX), a clinical-stage biopharmaceutical company focused on discovering and developing innovative monoclonal antibody-based therapeutics for the treatment of cancer, as well as autoimmune disorders and infectious diseases, reported a corporate progress update and reported financial results for the year ended December 31, 2015 (Press release, MacroGenics, FEB 29, 2016, View Source [SID:1234509310]).

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"I am thrilled with MacroGenics’ progress towards advancing breakthrough biologics and life-changing medicines, and particularly our industry leadership in creating bi-specific molecules," said Scott Koenig, M.D., Ph.D., President and CEO of MacroGenics. "There are now six Dual-Affinity Re-Targeting, or DART, molecules based on our proprietary platform, in or entering clinical development — four led by MacroGenics and two led by our collaborators, Janssen Biotech and Pfizer. In addition, we are actively enrolling patients with metastatic breast cancer in SOPHIA, our Phase 3 study of our Fc-optimized HER2 antibody, margetuximab. During 2015, in addition to updating our Phase 1 margetuximab data at the ASCO (Free ASCO Whitepaper) annual meeting, we also reported encouraging initial results from an ongoing Phase 1 study of enoblituzumab, our Fc-optimized B7-H3 antibody, at the SITC (Free SITC Whitepaper) annual meeting. Finally, given the strength of our cash and investments balance, we continue to be well positioned to advance our proprietary pipeline of immunotherapeutic product candidates."

"For 2016, we have already initiated a Phase 1b/2 study combining margetuximab and pembrolizumab in advanced HER2-positive gastric cancer," added Dr. Koenig. "Later this year, we plan to share additional enoblituzumab clinical data and provide clinical updates on multiple DART molecules being evaluated in Phase 1 studies. We also expect to submit an Investigational New Drug (IND) application for MGA012. Over the next few years, we intend to continue to advance at least one additional IND per year."

Pipeline Update

Margetuximab is an Fc-optimized monoclonal antibody that targets the human epidermal growth factor receptor 2, or HER2. Recent highlights include:

Phase 1b/2 Gastric Cancer Study: MacroGenics recently dosed the first patient in a Phase 1b/2 clinical trial of margetuximab in combination with pembrolizumab, an anti-PD-1 therapy, in patients with advanced HER2-positive gastric cancer. Treatment options for these patients are limited and our proposed combination regimen would avoid chemotherapy while exploiting the expected enhanced immune-mediated killing properties of both margetuximab and pembrolizumab. We recently elected to expand the scope of this trial to include centers in both Asia and the United States. This study is being conducted in collaboration with Merck.
SOPHIA Study: The Company’s Phase 3 pivotal study in patients with HER2-positive metastatic breast cancer is ongoing, as the Company continues to initiate sites and enroll patients. This study is evaluating the efficacy of margetuximab plus chemotherapy compared to trastuzumab plus chemotherapy in approximately 530 patients following progression after at least two lines of previous therapy. The Company is targeting completion of this study in 2018.

B7-H3 Franchise. MacroGenics is developing a portfolio of therapeutics that target B7-H3, a member of the B7 family of molecules involved in immune regulation. The Company is advancing multiple programs that target B7-H3 through complementary mechanisms of action and take advantage of this antigen’s broad expression across multiple solid tumor types. Recent highlights of ongoing clinical programs include:

Enoblituzumab (MGA271): Data from the ongoing monotherapy study of enoblituzumab, an Fc-optimized monoclonal antibody that targets B7-H3, was presented in a late-breaking abstract session at the 2015 Society for Immunotherapy of Cancer (SITC) (Free SITC Whitepaper) Annual Meeting in November. Enoblituzumab has been generally well tolerated in patients and has shown encouraging initial single-agent, anti-tumor activity in heavily pre-treated patients, including those with prostate and bladder cancer as well as melanoma. In addition, evidence of T-cell immunomodulatory function has been observed in patients treated with enoblituzumab. The Company has expanded its development program to include two combination studies with either ipilimumab or pembrolizumab.
MGD009: This DART molecule targeting B7-H3 and CD3 is being evaluated in a Phase 1 study across multiple solid tumor types.

DART Product Candidates. There are currently six DART molecules in or entering Phase 1 clinical development, including MGD006 (CD123 x CD3, also known as S80880), MGD007 (gpA33 x CD3), MGD011 (CD19 x CD3, also known as JNJ-64052781), MGD010 (CD32B x CD79B), MGD009 (B7-H3 x CD3) and PF-06671008 (P-cadherin x CD3). The Company expects to submit IND applications for two additional DART molecules in 2017. These two product candidates are:

MGD013: MacroGenics is developing an Fc-bearing DART molecule, MGD013, to simultaneously block two immune checkpoint molecules, PD-1 and LAG-3. The Company has presented promising pre-clinical data demonstrating the activity of a DART molecule with these specificities and expects that this bi-specific combination may be useful for treatment of a wide range of solid tumors and hematological malignancies.
MGD014: In 2015, MacroGenics presented pre-clinical data on MGD014, a DART molecule that is being developed to eliminate latent HIV infection. MGD014 is being developed under a contract awarded to MacroGenics by the National Institute of Allergy and Infectious Diseases for up to $24.5 million. This is the first infectious disease DART program planned for clinical testing.

Beyond MGD013 and MGD014, MacroGenics is generating and evaluating multiple other candidates that target a range of immune regulatory and other molecules using both its DART and Trident platforms, the latter for generating tri-specific molecules.

Corporate Update

Commercial Preparation: Tom Farrell recently joined MacroGenics as Vice President, Market Development and Strategy and will lead the Company’s effort in preparing for commercialization of its lead product candidates. Tom was most recently at Genentech, a Member of the Roche Group, where he was Global Pricing & Market Access Head (Oncology/Hemophilia), and responsible for leading the development and implementation of global pricing and payer strategies for all oncology (including Perjeta and Kadcyla) and hemophilia molecules from early- through late-stage development.
Pfizer’s DART Molecule Advances: MacroGenics’ collaboration partner, Pfizer, recently advanced PF-06671008, a DART molecule that targets P-cadherin and CD3, by submitting an IND application that has been cleared by the FDA. Increased levels of the protein P-cadherin have been reported in various tumors, including breast, gastric, endometrial, colorectal and pancreatic cancers, and is correlated with poor survival of patients.

2015 Financial Results and Financial Guidance

Cash Position: Cash, cash equivalents and investments as of December 31, 2015 were $339.0 million, compared to $157.6 million as of December 31, 2014. In the first quarter of 2015, MacroGenics closed a global collaboration and license agreement for MGD011 with Janssen Biotech, Inc. and received a $50 million upfront license fee. Johnson & Johnson Innovation – JJDC, Inc. also purchased $75 million of newly issued shares of MacroGenics common stock. In July 2015, MacroGenics completed an equity offering that raised net proceeds of $141 million.

Revenue: Total revenues, consisting primarily of revenue from collaborative agreements, were $100.9 million for the year ended December 31, 2015, compared to $47.8 million for the year ended December 31, 2014. Revenue from collaborative agreements includes the recognition of deferred revenue from payments received in previous periods as well as payments received during the year.

R&D Expenses: Research and development expenses were $98.3 million for the year ended December 31, 2015, compared to $70.2 million for the year ended December 31, 2014. This increase was due primarily to the initiation of SOPHIA, a margetuximab Phase 3 study, and a Phase 1b/2 study of margetuximab in combination with pembrolizumab, increased activity in our pre-clinical immune checkpoint programs, including MGD013, and the initiation of a Phase 1a study of MGD010.

G&A Expenses: General and administrative expenses were $22.8 million for the year ended December 31, 2015, compared to $15.9 million for the year ended December 31, 2014. This increase was primarily due to higher labor-related costs, including stock-based compensation expense and information technology-related expenses.

Net Loss: Net loss was $20.1 million for the year ended December 31, 2015, compared to a net loss of $38.3 million for the year ended December 31, 2014.

Shares Outstanding: Shares outstanding as of December 31, 2015 were 34,345,754.

Financial Guidance: MacroGenics expects that its current cash, cash equivalents and investments, combined with anticipated funding under its strategic collaborations, should fund the Company’s operations into 2018.