On August 11, 2020 Surface Oncology (Nasdaq: SURF), a clinical-stage immuno-oncology company developing next-generation immunotherapies that target the tumor microenvironment, reported financial results and corporate highlights for the second quarter 2020, as well as anticipated corporate milestones for the remainder of the year (Press release, Surface Oncology, AUG 11, 2020, View Source [SID1234563390]).
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"The second quarter of 2020 was one of great progress for Surface on several fronts. We advanced multiple programs in clinical development, entered into a clinical collaboration with Merck and secured additional financial resources via top-tier investors," said Jeff Goater, chief executive officer. "Our team has done an amazing job adapting to challenges from the global COVID-19 pandemic. To date, our clinical and preclinical timelines have not been impacted by the pandemic and we continue to monitor the situation. I could not be more proud of what we have accomplished, nor more excited about what is to come for Surface in the second half of 2020."
Recent Corporate Highlights:
In April, initiated a Phase 1 clinical trial of its first-in-class antibody SRF388, which targets the immunosuppressive cytokine IL-27. The study design is based on a compelling translational hypothesis supported in part by a study presented at American Association for Cancer Research (AACR) (Free AACR Whitepaper) this year demonstrating that high levels of IL-27 correlate strongly with the risk of developing liver cancer. Presentation can be found here.
In May, entered into a clinical trial collaboration with Merck (NYSE: MRK) to evaluate the safety and efficacy of combining Surface’s SRF617, an investigational antibody therapy targeting CD39, with Merck’s KEYTRUDA (pembrolizumab), the first anti-PD-1 therapy approved in the United States. This combination will be studied as a future component of the ongoing first-in-human Phase 1/1b study of SRF617 and will be evaluated in patients with solid tumors, with a focus on patients with gastric cancer and those who have developed resistance to checkpoint inhibition — both areas of high unmet need.
In the second quarter, raised approximately $39 million combined through its At-the-Market (ATM) facility and its venture debt facility. The ATM offering included participation based upon interest received from EcoR1 Capital LLC, Venrock Healthcare Capital Partners, BVF Partners L.P., and RS Investments, a Victory Capital investment franchise.
In June, presented updated preclinical data on SRF813 and lead candidates SRF617 and SRF388 at the 2020 AACR (Free AACR Whitepaper) virtual annual meeting. Presentations can be found in the Posters & Publications section on this page.
Advanced SRF813, a high affinity, fully human IgG1 antibody against CD112R (PVRIG) into IND-enabling studies. Preclinical studies support SRF813’s differentiated profile compared to the leading competitor and have indicated CD112R (PVRIG) inhibition activates both NK and T cells, resulting in robust anti-tumor activity and immunological memory.
Continued progression of the ongoing Phase 1/1b trial of NZV930 (targeting CD73) by Surface Oncology’s partner Novartis.
Selected Anticipated 2020 Corporate Milestones:
Preclinical data presentations anticipated at Society for Immunotherapy of Cancer (SITC) (Free SITC Whitepaper) in November 2020
Initial clinical updates for both SRF617 and SRF388 anticipated by the end of 2020
IND filing for SRF813 mid 2021
Financial Results:
As of June 30, 2020, cash, cash equivalents and marketable securities were $112.5 million, compared to $105.2 million on December 31, 2019.
Research and development (R&D) expenses were $9.5 million for the second quarter ended June 30, 2020, compared to $13.2 million for the same period in 2019. This decrease was primarily driven by a reduction in expenses associated with contract manufacturing and other IND-enabling activities, as a result of the SRF617 and SRF388 IND filings in 2019, offset by an increase in spend on the SRF617 and SRF388 Phase 1 clinical trials, which began in 2020. R&D expenses included $0.7 million in stock-based compensation expense for the second quarter ended June 30, 2020.
General and administrative (G&A) expenses were $5.0 million for the second quarter ended June 30, 2020, compared to $5.4 million for the same period in 2019. This decrease was primarily due to decreased personnel costs and professional fees as a result of the strategic restructuring announced in January 2020. G&A expenses included $1.3 million in stock-based compensation expense for the second quarter ended June 30, 2020.
For the second quarter ended June 30, 2020, net loss was $14.8 million, or basic and diluted net loss per share attributable to common stockholders of $0.44. Net loss was $17.8 million for the same period in 2019, or basic and diluted net loss per share attributable to common stockholders of $0.64.
Financial Outlook:
Surface Oncology continues to project that current cash and cash equivalents are sufficient to fund the Company into 2022.