On August 11, 2020 Unum Therapeutics Inc. (Nasdaq: UMRX), a biopharmaceutical company focused on developing novel, best-in-class precision kinase inhibitors for a range of patients living with cancer and other unmet medical needs, reported financial results for the second quarter ended June 30, 2020 and provided corporate updates (Press release, Unum Therapeutics, AUG 11, 2020, View Source [SID1234563456]).
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"With the recent acquisition of Kiq, Unum’s focus on PLX9486 creates an exciting opportunity as we advance development of novel precision kinase inhibitors to treat patients with cancer and a range of other diseases with limited safe and effective treatment options," said Chuck Wilson, Ph.D., President and CEO of Unum. "PLX9486 is a highly potent and selective KIT D816V inhibitor that has demonstrated promising clinical data, and we believe has significant potential to transform the management of serious diseases in many individuals. With PLX9486 as a cornerstone, we believe our team at Unum is poised to build a pipeline of best-in-class, precision kinase inhibitors."
Recent Program and Corporate Highlights
Announced completed acquisition of Kiq LLC: In July 2020, Unum announced the completed acquisition of Kiq LLC, a privately held biotechnology company focused on the discovery and development of precision kinase inhibitors. The acquisition was further financed by a private placement resulting in gross proceeds to Unum of approximately $104.4 million before deducting placement agent and other offering expenses. The private placement was led by Fairmount Funds Management LLC, with participation from Venrock Healthcare Capital Partners, BVF Partners L.P., Atlas Venture, Acorn Bioventures, Perceptive Advisor’s LLC, RTW Investments, OrbiMed, Samsara BioCapital, Logos Capital, Ally Bridge Group and Commodore Capital, as well as additional undisclosed institutional investors. Unum believes the acquisition of Kiq represents a high potential value creation opportunity for shareholders and creates a promising path forward. The Company continues to pursue strategic opportunities for its cell-based therapy programs. Unum has retained key employees across the newly integrated company and continues to attract talent to advance its precision kinase inhibitor programs.
Advancing clinical development of PLX9486: Unum is advancing clinical studies of PLX9486 in multiple indications, including Gastrointestinal Stromal Tumors (‘GIST’) and systemic mastocytosis. Published clinical data demonstrate the critical role of KIT kinase activity as a driver in both GIST and systemic mastocytosis. PLX9486 is a highly potent and selective KIT D816V inhibitor that not only addresses primary activating mutations, but also resistance and activation loop mutations.
Unum plans to initiate clinical development of PLX9486 as a monotherapy for patients with Advanced Systemic Mastocytosis (ASM) and Indolent Systemic Mastocytosis (ISM) with the goal of demonstrating a best-in-class clinical profile. Patients living with systemic mastocytosis experience a range of symptoms, including reduced life span and chronic conditions, and there are limited treatment options available. Unum expects to initiate clinical testing in ASM patients in the first half of 2021, followed by trials in ISM patients in the second half of 2021.
In addition, PLX9486 has demonstrated promising clinical activity in a Phase 1/2 trial in patients with GIST demonstrating 11 months median progression free survival in 18 GIST patients treated in a second line or later setting. Safety data from both single agent and combination trials in more than 50 patients supports further clinical development. PLX9486 is currently in Phase 2 clinical development in GIST, and Unum plans to advance the compound into additional clinical trials in the second half of 2021. Unum plans to present further details from PLX9486 studies at an upcoming medical meeting.
Second Quarter 2020 Financial Results
Collaboration Revenue: Collaboration revenue recognized during the second quarter ended June 30, 2020 of $0.5 million compared to $3.1 million in the same period of 2019. This decrease is due to the termination of a collaboration agreement in January 2020.
R&D Expenses: Research and development expenses of $5.1 million for the second quarter ended June 30, 2020 compared to $10.6 million for the same period of 2019. This decrease is primarily related to the reduction in clinical activity of Unum’s legacy clinical trials.
G&A Expenses: General and administrative expenses for the second quarter ended June 30, 2020 were $2.8 million, compared to $3.1 million for the same period of 2019. The decrease is primarily related to lower professional and consultant fees.
Net Loss: Net loss attributable to common stockholders was $7.4 million, or $0.24 per share, for the second quarter ended June 30, 2020 compared with a net loss attributable to common stockholders of $10.5 million, or $0.34 per share, for the same period of 2019.
Cash and Cash Equivalents: As of June 30, 2020, Unum had cash and cash equivalents of $21.3 million. Unum believes that its current cash and cash equivalents, including the $104.4 million received on July 9, 2020 from the Series A Preferred Stock private placement, will enable Unum to fund its operating expenses and capital expenditure requirements beyond 2022.