NextCure Reports Second Quarter 2019 Financial Results
“NextCure has made important progress this year toward realizing our long-term vision of developing novel immunomedicines for patients who do not respond to standard treatments or existing immunotherapies,” said
- Continued enrolling a Phase 1/2 clinical trial to evaluate NC318 as a monotherapy in patients with advanced or metastatic solid tumors. The Phase 1 portion of the trial is designed to assess the safety and tolerability of NC318.
- Closed our initial public offering (IPO) on
May 9, 2019, raising $86.3 millionin gross proceeds.
- Continued research activities under our collaboration agreement with
Eli Lilly and Company(“Lilly”).
- Remain on track to submit an investigational new drug application to the
U.S. Food and Drug Administrationfor our second product candidate, NC410 in the first quarter of 2020. NC410 is a novel immunomedicine designed to block immune suppression mediated by an immune modulator called Leukocyte‑Associated Immunoglobulin‑like Receptor 1, or LAIR‑1.
Financial Results for Quarter Ended
- Cash and cash equivalents as of
June 30, 2019were $192.7 million, compared to $135.2 millionas of December 31, 2018. The increase in cash reflects net proceeds from our IPO of $77.0, partially offset by cash used to fund operations of $18.5 million.
- Revenue was
$1.4 millionand $2.8 millionfor the three and six months ended June 30, 2019, respectively. We had no revenue in the calendar year 2018. Revenue to date has been generated from the Lilly agreement.
- Research and development expenses were
$7.6 millionand $14.2 millionfor the three and six months ended June 30, 2019, respectively, as compared to $ 4.4 millionand $8.6 millionfor the three and six months ended June 30, 2018, respectively. The increase was primarily related to an increase in headcount, NC318 clinical research costs, lab supplies and services for NC318, our other early stage programs and discovery activities, and a one-time license payment in connection with our IPO.
- General and administrative expenses were
$2.7 millionand $4.4 millionfor the three and six months ended June 30, 2019, respectively, as compared to $0.9 millionand $1.7 millionfor the three and six months ended June 30, 2018, respectively. The increase was primarily related to increases in professional fees and insurance costs in connection with becoming a publicly traded company, as well as increases in personnel-related costs and an unrestricted gift to an academic lab.
- Net loss was
$8.2 millionand $14.4 millionfor the three and six months ended June 30, 2019, respectively, as compared to $5.2 millionand $10.2 millionfor the three and six months ended June 30, 2018, respectively.
NC318 is a first-in-class immunomedicine against S15, a novel immunomodulatory target found on highly immunosuppressive cells called M2 macrophages in the tumor microenvironment and on certain tumor types including lung, ovarian and head and neck cancers. In preclinical research, it was observed that S15 promoted the survival and differentiation of suppressive myeloid cells and negatively regulated T cell function, allowing cancer to avoid immune destruction. In preclinical studies, NC318 blocked the negative effects of S15.
NC410 is a first-in-class immunomedicine designed to block immune suppression mediated by LAIR-1, an immunomodulatory receptor expressed on T cells and dendritic cells, a type of antigen presenting cell. In preclinical research, it was observed that LAIR-1 inhibited T cell function and dendritic cell activity allowing tumor cells to grow. In preclinical studies, NC410 blocked the negative effects of LAIR-1 and promoted T cell function and dendritic cell activity.
This press release contains forward-looking statements, including statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, forecasts, assumptions and other information available to
|CONDENSED STATEMENTS OF OPERATIONS|
|(in thousands, except share and per share amounts)|
|Three Months Ended||Six Months Ended|
|June 30,||June 30,|
|Revenue from research and development arrangement||$||1,402||$||—||$||2,759||$||—|
|Research and development||7,643||4,434||14,156||8,644|
|General and administrative||2,714||866||4,373||1,665|
|Total operating expenses||10,357||5,300||18,529||10,309|
|Loss from operations||(8,955||)||(5,300||)||(15,770||)||(10,309||)|
|Other income, net||734||69||1,394||82|
|Net loss per share attributable to common stockholders—basic and diluted||$||(0.61||)||$||(3.82||)||$||(1.92||)||$||(7.47||)|
|Weighted average common shares outstanding—basic and diluted||13,498,393||1,369,212||7,472,298||1,369,212|
|CONDENSED BALANCE SHEETS|
|(in thousands, except share and per share amounts)|
|June 30,||December 31,|
|Cash and cash equivalents||$||192,689||$||135,173|
|Prepaid expenses and other current assets||2,959||152|
|Total current assets||196,521||135,785|
|Property and equipment, net||12,329||11,407|
|Liabilities, Preferred Stock and Stockholders’ Equity (Deficit)|
|Deferred rent, current portion||6||28|
|Term loan, current portion||833||387|
|Deferred revenue, current portion||6,524||4,989|
|Total current liabilities||11,524||10,298|
|Deferred rent, net of current portion||322||242|
|Term loan, net of current portion||4,167||73|
|Deferred revenue, net of current portion||18,442||21,736|
|Commitments and contingencies (Note 6)|
|Redeemable preferred stock:|
|Series A Preferred Stock, par value of $0.001 per share; 0 and 68,181,819 shares authorized, issued and outstanding at June 30, 2019 and December 31, 2018, respectively||—||71,000|
|Series B Preferred Stock, par value $0.001 per share; 0 and 56,828,852 shares authorized at June 30, 2019 and December 31, 2018, respectively, 0 and 56,828,851 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively||—||91,223|
|Total redeemable preferred stock||—||162,223|
|Stockholders’ equity (deficit):|
|Preferred stock, par value of $0.001 per share; 10,000,000 and 0 shares authorized at June 30, 2019 and December 31, 2018. No shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively||—||—|
|Common stock, par value of $0.001 per share; 100,000,000 and 158,745,671 shares authorized at June 30, 2019 and December 31, 2018, respectively, 22,714,765, and 1,374,812 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively||23||11|
|Additional paid-in capital||240,245||342|
|Total stockholders’ equity (deficit)||178,595||(46,944||)|
|Total liabilities, preferred stock and stockholders’ equity (deficit)||$||213,050||$||147,628|
Timothy Mayer, Ph.D. NextCure, Inc.SVP, Corporate Development (240) 762-6486 IR@nextcure.com Media Inquiries Shai Biran, Ph.D. MacDougall (781) 235-3060 NextCure@macbiocom.com