NextCure Reports Fourth Quarter and Full Year 2019 Financial Results
“2019 was a momentous year for
2019 Business Highlights
- Published a Nature Medicine paper with
Yale Universitydescribing Siglec-15 (S15) as a new target for immunotherapy in March.
- Closed initial public offering (IPO) in May, raising
$86.3 millionin gross proceeds.
Timothy Mayer, Ph.D., to Chief Operating Officer in October.
- Initiated the phase 2 portion of the ongoing NC318 phase 1/2 monotherapy clinical trial in October.
- Presented positive clinical data from the phase 1 portion of the NC318 phase 1/2 monotherapy clinical trial at the 34th Annual Meeting of SITC in November.
- Closed follow-on offering in November, raising
$172.2 millionin gross proceeds.
- Initiate enrollment in the phase 1 portion of our phase 1/2 clinical trial for our second product candidate, NC410, in the second quarter of 2020.
- Initiate an NC318 combination clinical trial in NSCLC with standard-of-care chemotherapies in mid-2020.
- Report initial data from the NC318 phase 2 monotherapy clinical trial by the end of 2020.
Financial Results for Fourth Quarter and Full Year Ended
- Cash, cash equivalents, and marketable securities, excluding restricted cash, as of
December 31, 2019were $334.6 million, compared to $135.2 millionas of December 31, 2018. This increase was primarily due to $238.4 millionnet proceeds from public offerings partially offset by cash used to fund operations of $35.6 million.
- Revenue from research and development arrangement was
$2.0 millionand $6.3 millionfor the three months and the full year ended December 31, 2019, respectively. We had no revenue in 2018. All revenue was generated from our agreement with Eli Lilly (Lilly), which was terminated by Lilly effective March 3, 2020.
- Research and development expenses were
$11.4 millionand $34.2 millionfor the fourth quarter and full year ended December 31, 2019, respectively, as compared to $6.3 millionand $19.8 millionfor the comparable periods in 2018, respectively. The increases primarily reflect a growth in headcount, NC318 clinical research costs, lab supplies and services for NC318 and our other early stage programs and discovery activities, as well as, in the case of the increase for the full year ended December 31, 2019, a one-time license payment in connection with our IPO in the quarter ended June 30, 2019.
- General and administrative expenses were
$2.6 millionand $9.6 millionfor the fourth quarter and full year ended December 31, 2019, respectively, as compared to $0.8 millionand $3.4 million, respectively, for the comparable periods in 2018. The increases were primarily related to increases in professional fees and insurance costs in connection with becoming a publicly traded company, as well as growth in headcount and, in the case of the increase for the full year ended December 31, 2019, an unrestricted gift to an academic lab in the quarter ended June 30, 2019.
- Net loss was
$10.9 millionfor the fourth quarter of 2019 and $33.7 millionfor the year ended December 31, 2019, as compared to $6.9 millionand $22.8 million, respectively, for the comparable periods in 2018.
NC318 is a first-in-class immunomedicine against S15, a novel immunomodulatory target found on highly immunosuppressive cells called M2 macrophages in the tumor microenvironment and on certain tumor types including lung, ovarian and head and neck cancers. In preclinical research, it was observed that S15 promoted the survival and differentiation of suppressive myeloid cells and negatively regulated T cell function, allowing cancer to avoid immune destruction. In preclinical studies, NC318 blocked the negative effects of S15.
NC410 is a novel immunomedicine that was developed to block LAIR-1-mediated immune suppression by mimicking the natural decoy effects of LAIR-2. LAIR-1 is a co-inhibitory receptor expressed on T cells and dendritic cells. LAIR-2 is a naturally occurring soluble decoy protein for LAIR-1. In preclinical research, it was observed that LAIR-1 inhibited T cell function and dendritic cell activity allowing tumor cells to grow. In preclinical studies, NC410 blocked the negative effects of LAIR-1 to promote T cell function and dendritic cell activity.
This press release contains forward-looking statements, including statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, forecasts, assumptions and other information available to
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited, in thousands, except share and per share amounts)
|Revenue from research and development arrangement||$||6,347||$||—|
|Research and development||34,216||19,787|
|General and administrative||9,613||3,409|
|Total operating expenses||43,829||23,196|
|Loss from operations||(37,482||)||(23,196||)|
|Other income, net||3,745||397|
|Net loss per common share — basic and diluted||$||(2.15||)||$||(16.64||)|
|Weighted average number of common shares — basic and diluted||15,695,461||1,369,846|
|Unrealized loss on marketable securities||(38||)||—|
|Total comprehensive loss||$||(33,775||)||$||(22,799||)|
CONDENSED BALANCE SHEETS
(unaudited, in thousands, except share and per share amounts)
|Cash and cash equivalents||$||34,091||$||135,173|
|Prepaid expenses and other current assets||3,684||152|
|Total current assets||339,995||135,785|
|Property and equipment, net||12,090||11,407|
|Liabilities, Preferred Stock and Stockholders’ Equity (Deficit)|
|Deferred rent, current portion||215||28|
|Term loan, current portion||1,667||387|
|Deferred revenue, current portion||6,428||4,989|
|Total current liabilities||15,042||10,298|
|Deferred rent, net of current portion||359||242|
|Term loan, net of current portion||3,333||73|
|Deferred revenue, net of current portion||15,950||21,736|
|Redeemable preferred stock:|
|Series A Preferred Stock, par value of
|Series B Preferred Stock, par value
|Total redeemable preferred stock||—||162,223|
|Stockholders’ equity (deficit):|
|Preferred stock, par value of
|Common stock, par value of
|Additional paid-in capital||402,529||352|
|Accumulated other comprehensive loss||(38||)||—|
|Total stockholders’ equity (deficit)||321,484||(46,944||)|
|Total liabilities, preferred stock and stockholders’ equity (deficit)||$||356,168||$||147,628|
Timothy Mayer, Ph.D. NextCure, Inc.Chief Operating Officer (240) 762-6486 IR@nextcure.com Media Inquiries Shai Biran, Ph.D. MacDougall (781) 235-3060 NextCure@macbiocom.com