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 University describing Siglec-15 (S15) as a new target for immunotherapy in March. - Closed initial public offering (IPO) in May, raising
$86.3 million in gross proceeds. - Promoted
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 million in gross proceeds.
Upcoming Milestones
- 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, 2019 were$334.6 million , compared to$135.2 million as ofDecember 31, 2018 . This increase was primarily due to$238.4 million net 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 million and$6.3 million for the three months and the full year endedDecember 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 effectiveMarch 3, 2020 . - Research and development expenses were
$11.4 million and$34.2 million for the fourth quarter and full year endedDecember 31, 2019 , respectively, as compared to$6.3 million and$19.8 million for 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 endedDecember 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 million and$9.6 million for the fourth quarter and full year endedDecember 31, 2019 , respectively, as compared to$0.8 million and$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 endedDecember 31, 2019 , an unrestricted gift to an academic lab in the quarter endedJune 30, 2019 . - Net loss was
$10.9 million for the fourth quarter of 2019 and$33.7 million for the year endedDecember 31, 2019 , as compared to$6.9 million and$22.8 million , respectively, for the comparable periods in 2018.
About NC318
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.
About NC410
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.
About
Forward-Looking Statements
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
NEXTCURE, INC.
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited, in thousands, except share and per share amounts)
| Year Ended | ||||||||
| 2019 |
2018 |
|||||||
| Revenue: | ||||||||
| Revenue from research and development arrangement | $ | 6,347 | $ | — | ||||
| Operating expenses: | ||||||||
| 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 | (33,737 | ) | (22,799 | ) | ||||
| 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 | ||||||
| Comprehensive loss: | ||||||||
| Net loss | (33,737 | ) | (22,799 | ) | ||||
| Unrealized loss on marketable securities | (38 | ) | — | |||||
| Total comprehensive loss | $ | (33,775 | ) | $ | (22,799 | ) | ||
NEXTCURE, INC.
CONDENSED BALANCE SHEETS
(unaudited, in thousands, except share and per share amounts)
| 2019 | 2018 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 34,091 | $ | 135,173 | ||||
| Marketable securities | 300,514 | — | ||||||
| Restricted cash | 1,706 | 460 | ||||||
| Prepaid expenses and other current assets | 3,684 | 152 | ||||||
| Total current assets | 339,995 | 135,785 | ||||||
| Property and equipment, net | 12,090 | 11,407 | ||||||
| Other assets | 4,083 | 436 | ||||||
| Total assets | $ | 356,168 | $ | 147,628 | ||||
| Liabilities, Preferred Stock and Stockholders’ Equity (Deficit) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,861 | $ | 2,483 | ||||
| Accrued liabilities | 4,871 | 2,411 | ||||||
| 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 | ||||||
| Total liabilities | 34,684 | 32,349 | ||||||
| Redeemable preferred stock: | ||||||||
| Series A Preferred Stock, par value of |
— | 71,000 | ||||||
| Series B Preferred Stock, par value |
— | 91,223 | ||||||
| Total redeemable preferred stock | — | 162,223 | ||||||
| Stockholders’ equity (deficit): | ||||||||
| Preferred stock, par value of |
— | — | ||||||
| Common stock, par value of |
27 | 1 | ||||||
| Additional paid-in capital | 402,529 | 352 | ||||||
| Accumulated other comprehensive loss | (38 | ) | — | |||||
| Accumulated deficit | (81,034 | ) | (47,297 | ) | ||||
| Total stockholders’ equity (deficit) | 321,484 | (46,944 | ) | |||||
| Total liabilities, preferred stock and stockholders’ equity (deficit) | $ | 356,168 | $ | 147,628 | ||||
Investor InquiriesTimothy Mayer , Ph.D.NextCure, Inc. Chief Operating Officer (240) 762-6486 IR@nextcure.com Media InquiriesShai Biran , Ph.D. MacDougall (781) 235-3060 NextCure@macbiocom.com
Source: NextCure