On May 4, 2017 NewLink Genetics Corporation (NASDAQ:NLNK), reported consolidated financial results for the first quarter 2017, as well as progress in its clinical development programs (Press release, NewLink Genetics, MAY 4, 2017, View Source [SID1234518856]).
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Recent Highlights:
Presented promising interim Phase 2 data of the IDO pathway inhibitor, indoximod, in combination with KEYTRUDA (pembrolizumab) for patients with advanced melanoma at the American Association of Cancer Research (AACR) (Free AACR Whitepaper) plenary session on April 4, 2017
Presented a poster on NLG802, "A novel prodrug of indoximod with enhanced pharmacokinetic properties," at AACR (Free AACR Whitepaper) on April 4, 2017
Abstract accepted for presentation at the 2017 Annual Meeting of the American Society of Clinical Oncology (ASCO) (Free ASCO Whitepaper) for a randomized double-blind, placebo-controlled Phase 2 study of indoximod in combination with the vaccine, PROVENGE (sipuleucel-T), for patients with metastatic castration resistant prostate cancer
Abstract accepted for presentation at the 2017 ASCO (Free ASCO Whitepaper) Annual Meeting submitted by our partner on a Phase 1b dose-escalation study of navoximod (GDC-0919) in combination with TECENTRIQ (atezolizumab) in multiple solid tumors
"We believe that the emerging clinical data from NewLink Genetics and other companies are validating the fundamental hypothesis that the IDO pathway is central to immuno-suppression in cancer," said Charles J. Link, Jr. MD, Chairman, Chief Executive Officer and Chief Scientific Officer. "We have two distinct IDO pathway inhibitors advancing in the clinic, indoximod – which is wholly-owned by NewLink Genetics – and navoximod (GDC-0919), which is partnered to Genentech/Roche. In addition, we have a next-generation compound, a novel prodrug of indoximod, NLG802, which we expect to enter the clinic by the end of Q3 this year."
Guidance for remainder of 2017:
Metastatic castration resistant prostate cancer: Randomized, placebo-controlled Phase 2 clinical trial data to be presented at ASCO (Free ASCO Whitepaper) on Monday, June 5, 2017
Metastatic pancreatic cancer: Indoximod in combination with gemcitabine + ABRAXANE (nab-paclitaxel) Phase 2 trial to be presented at an upcoming medical meeting in the second half of 2017
Acute Myeloid Leukemia (AML): Interim data from a Phase 1b dose-escalation study of indoximod in combination with standard of care chemotherapy for patients with newly diagnosed AML to be presented second half of 2017
The Company announced that it intends to initiate a pivotal trial of indoximod plus anti-PD-1 inhibitors for patients with advanced melanoma by the end of 2017. The trial is expected to use an adaptive design that incorporates a brief dose confirmation stage followed by a definitive randomized stage.
"The clinical data for indoximod in advanced melanoma establishes the basis for this pivotal trial," said Nicholas N. Vahanian, MD, President and Chief Medical Officer.
Financial Results:
Cash Position: NewLink Genetics ended the first quarter with cash and cash equivalents totaling $118.2 million compared to $131.5 million for the year ending December 31, 2016.
We expect to end 2017 with approximately $75 million in cash and equivalents, which excludes any cash that may be received from financings or milestones.
R&D Expenses: Research and development expenses were $15.7 million in the first quarter of 2017 compared to $21.9 million in the first quarter of 2016. The decrease was due primarily to a $4.6 million decline in clinical trial and manufacturing-related spend, a decrease in personnel-related spend of $1.4 million, and a decrease in licensing and consulting fees of $1.0 million, offset by an increase in stock compensation expense of $822,000.
G&A Expenses: General and administrative expenses in the first quarter of 2017 were $8.2 million compared to $9.2 million in the first quarter of 2016. The decrease was due to a decline of $700,000 in consulting and legal fees, a decrease of $700,000 in personnel-related spend, offset by an increase in stock compensation expense of $437,000.
Net Loss: NewLink Genetics reported a net loss of $20.9 million or loss of $0.72 per diluted share for the first quarter of 2017 compared to a net loss of $23.7 million or loss of $0.82 per diluted share for the first quarter of 2016.
NewLink Genetics ended Q1 2017 with 29,219,661 shares outstanding.