On November 12, 2020 Onconova Therapeutics, Inc. (NASDAQ: ONTX), a biopharmaceutical company focused on discovering and developing novel products to treat cancer, reported financial results for the quarter ended September 30, 2020 and provided a business update (Press release, Onconova, NOV 12, 2020, View Source [SID1234570798]).
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Management commentary
"During the third quarter, our product pipeline advanced while we pursued various licensing opportunities. We are particularly pleased that ON 123300, our proprietary, differentiated, first-in-class multi-kinase inhibitor, entered the clinic with HanX Biopharmaceuticals, our partner in China," said Steven M. Fruchtman, M.D., President and Chief Executive Officer of Onconova. "The HanX Phase 1 dose-escalation study has enrolled three patients to date, and is expected to continue to enroll patients with advanced relapsed/refractory cancer at two sites until the recommended Phase 2 dose is identified.
"In parallel, we are preparing to file an Investigational New Drug application (IND) with the U.S. Food and Drug Administration by the end of this year, with patient enrollment expected to begin in the first quarter of 2021. We expect that our Phase 1 dose-escalation and dose-expansion study in the U.S. will differ from the HanX study in dose regimens and treatment cycles, and believe that data from these two studies will generate important information to inform anticipated later-stage studies. Our plan is to enroll patients with a variety of advanced solid tumors including an initial focus on HR+ HER2- postmenopausal metastatic breast cancer patients with resistance to approved second-generation CDK 4/6 inhibitors, as well as patients diagnosed with advanced non-Hodgkin’s lymphoma based on efficacy data from our preclinical models. We believe that, with its novel mechanism of action targeting both CDK4/6 and ARK5, ON 123300 presents an innovative approach for potentially treating HR+ HER2- metastatic breast cancer that is or has become resistant to the commercial CDK4/6 inhibitors, and potentially other cancers including mantle cell lymphoma, multiple myeloma, advanced colorectal cancer, advanced hepatocellular carcinoma, and inoperable glioblastoma."
"Important investigator-initiated studies are also underway or planned with oral rigosertib," added Richard Woodman, M.D, Chief Medical Officer. "We are currently supporting a Phase 1 dose-escalation study at a leading medical center in New York City exploring the use of rigosertib in combination with the PD-1 inhibitor nivolumabin progressive K-RAS mutated non-small cell lung cancer (NSCLC). That study has enrolled five patients to date, and is designed to identify the recommended Phase 2 dose of the combination for future studies. Results are expected in 2021. In addition, an investigator-initiated phase 1b/2 study with rigosertib monotherapy in advanced squamous cell carcinoma associated with recessive dystrophic epidermolysis bullosa has opened, with first-patient-in expected 2021. Additional investigator-initiated preclinical studies with rigosertib are under consideration."
"Our focus is on advancing our pipeline, and while we believe ON 123300 and oral rigosertib have excellent prospects, we are also engaged in licensing discussions, both for geographic rights to certain of our assets, and evaluating the potential to in-license additional compounds to expand our product portfolio," Dr. Fruchtman concluded.
Third quarter financial results
Cash and cash equivalents as of September 30, 2020 were $24.2 million, compared with $22.7 million as of December 31, 2019. The Company expects that its cash and cash equivalents will be sufficient to fund ongoing clinical trials and business operations into the first quarter of 2022. During the third quarter of 2020, the Company received $2.7 million from the exercise of warrants.
Research and development expenses were $4.2 million for the third quarter of 2020, compared with $3.5 million for the third quarter of 2019. The increase was primarily related to higher consulting fees and manufacturing costs related to clinical supply for ON 123300, partially offset by lower expenses for the oral rigosertib combination program and the Phase 3 INSPIRE study.
General and administrative expenses were $2.1 million for the third quarter of 2020, compared with $1.6 million for the third quarter of 2019. The increase was due to higher pre-commercialization, insurance, and corporate legal and stockholder meeting expenses.
Net loss for the third quarter of 2020 was $6.2 million, compared with $4.6 million for the comparable prior-year quarter.
Conference call and webcast
Onconova will host an investment community conference call today beginning at 4:30 p.m. Eastern time, during which management will discuss financial results for the 2020 third quarter, provide a business update and answer questions. Interested parties can participate by dialing (855) 428-5741 (domestic callers) or (210) 229-8823 (international callers) and using conference ID 8687160.
A live webcast of the conference call will be available in the Investors & Media section of the Company’s website at www.onconova.com. A replay of the webcast will be available on the Onconova website for 90 days following the call.