NextCure Reports First Quarter 2019 Financial Results
BELTSVILLE, Md., June 10, 2019 (GLOBE NEWSWIRE) -- NextCure, Inc. (Nasdaq: NXTC), a clinical-stage biopharmaceutical company committed to discovering and developing novel, first-in-class immunomedicines to treat cancer and other immune-related diseases, today reported first quarter 2019 financial results and provided a business update.
“Since NextCure’s founding three years ago, we have quickly and efficiently created a clinical-stage biopharmaceutical company and have been transforming innovative science into potential lifesaving immunomedicines,” said Michael Richman, president and chief executive officer. “In 2019 our team has achieved important clinical and operational progress. The Phase 1 portion of our Phase 1/2 clinical study for our lead product candidate – NC318 – remains on track for completion later this year and we continue to advance additional programs toward the clinic. The net proceeds from our recent IPO provides the funding for continued development of our novel immunomedicines.”
Recent Business Highlights
- 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 and remains on track for completion in the fourth quarter of 2019.
- Published a Nature Medicine paper with Yale University describing Siglec-15 (S15) as a new target for immunotherapy.
- Completed Initial Public Offering on May 9, 2019, which generated over $86.0 million in gross proceeds.
- Initiated research activities under our collaboration with Eli Lilly and Company.
Financial Results for Quarter Ended March 31, 2019
- Cash and cash equivalents as of March 31, 2019 were $125.5 million, compared to $135.2 million as of December 31, 2018. The net change was primarily due to funding operations, deferred financing costs, and the purchase of equipment.
- Revenue was $1.4 million in the first quarter of 2019, which was derived from the agreement with Eli Lilly and Company.
- Research and development expenses were $6.5 million in the first quarter of 2019, compared to $4.2 million in the first quarter of 2018. The increase was driven primarily by clinical expenses for NC318 along with our other research and development programs.
- General and administrative expenses were $1.7 million in the first quarter of 2019, compared to $0.8 million in the first quarter of 2018. The increase was driven primarily by professional services and personnel expenses.
- Net loss for the first quarter of 2019 was $6.2 million, or $4.46 per share, compared to $5.0 million, or $3.65 per share in the first quarter of 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. NextCure believes NC318 has the potential to treat multiple cancer types.
About NextCure, Inc.
NextCure is a clinical-stage biopharmaceutical company committed to discovering and developing novel, first-in-class immunomedicines to treat cancer and other immune-related diseases. Through our proprietary FIND-IO™ platform, we study various immune cells to discover and understand targets and structural components of immune cells and their functional impact in order to develop immunomedicines. Our initial focus is to bring hope and new treatments to patients who do not respond to current cancer therapies, patients whose cancer progresses despite treatment and patients with cancer types not adequately addressed by available therapies. www.nextcure.com
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 as of the date hereof. Forward-looking statements include statements regarding NextCure’s expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as “may,” “will,” “potential,” “expects,” “believes,” “intends,” “hope,” “towards,” “forward,” “later,” “on track” and similar expressions. Examples of forward-looking statements in this press release include, among others, statements about the sufficiency of NextCure’s cash and cash equivalents, the use of proceeds from NextCure’s recent initial public offering, the pace and expected timing of NextCure’s ongoing clinical study of NC318 and its other research and development programs, and NextCure’s plans, objectives and intentions with respect to the discovery and development of immunomedicines. Forward-looking statements involve substantial risks and uncertainties that could cause actual results to differ materially from those projected in any forward-looking statement. Such risks and uncertainties include, among others: NextCure’s limited operating history and no products approved for commercial sale; NextCure’s history of significant losses; NextCure’s need to obtain additional financing; risks related to clinical development, marketing approval and commercialization; and the unproven approach to the discovery and development of product candidates based on NextCure’s FIND-IO platform. More detailed information on these and additional factors that could affect NextCure’s actual results are described in NextCure’s filings with the Securities and Exchange Commission (the “SEC”), including NextCure’s Form 10-Q filed with the SEC on June 10, 2019. You should not place undue reliance on any forward-looking statements. Forward-looking statements speak only as of the date of this press release, and NextCure assumes no obligation to update any forward-looking statements, even if expectations change.
| NEXTCURE, INC. | ||||||||
| CONDENSED STATEMENTS OF OPERATIONS | ||||||||
| (in thousands, except share and per share amounts) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
|
2019 |
2018 |
|||||||
| (Unaudited) | ||||||||
| Revenue: | ||||||||
| Revenue from related party | $ | 1,357 | $ | — | ||||
| Operating expenses: | ||||||||
| Research and development | 6,513 | 4,210 | ||||||
| General and administrative | 1,659 | 799 | ||||||
| Total operating expenses | 8,172 | 5,009 | ||||||
| Loss from operations | (6,815 | ) | (5,009 | ) | ||||
| Other income, net | 660 | 13 | ||||||
| Net loss | (6,155 | ) | (4,996 | ) | ||||
| Net loss per share attributable to common stockholders—basic and diluted | $ | (4.46 | ) | $ | (3.65 | ) | ||
| Weighted average common shares outstanding—basic and diluted | 1,379,444 | 1,369,212 | ||||||
| NEXTCURE, INC. | ||||||||
| CONDENSED BALANCE SHEETS | ||||||||
| (in thousands, except share and per share amounts) | ||||||||
| March 31, | December 31, | |||||||
|
2019 |
2018 |
|||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 125,549 | $ | 135,173 | ||||
| Restricted cash | 5,039 | 460 | ||||||
| Prepaid expenses and other current assets | 1,049 | 152 | ||||||
| Total current assets | 131,637 | 135,785 | ||||||
| Property and equipment, net | 11,779 | 11,407 | ||||||
| Other assets | 2,010 | 436 | ||||||
| Total assets | $ | 145,426 | $ | 147,628 | ||||
| Liabilities, Preferred Stock and Stockholders’ Deficit | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,938 | $ | 2,483 | ||||
| Accrued liabilities | 1,846 | 2,411 | ||||||
| Deferred rent, current portion | 3 | 28 | ||||||
| Term loan, current portion | 278 | 387 | ||||||
| Deferred revenue from related party, current portion | 5,240 | 4,989 | ||||||
| Total current liabilities | 10,305 | 10,298 | ||||||
| Deferred rent, net of current portion | 260 | 242 | ||||||
| Term loan, net of current portion | 4,722 | 73 | ||||||
| Deferred revenue from related party, net of current portion | 20,628 | 21,736 | ||||||
| Total liabilities | 35,915 | 32,349 | ||||||
| Commitments and contingencies | ||||||||
| Preferred stock: | ||||||||
| Series A Preferred Stock, par value of $0.001 per share; 68,181,819 shares authorized at March 31, 2019 and December 31, 2018, 68,181,819 shares issued and outstanding at March 31, 2019 and December 31, 2018 |
71,000 | 71,000 | ||||||
| Series B Preferred Stock, par value $0.001 per share; 56,828,852 shares authorized at March 31, 2019 and December 31, 2018, 56,828,851 shares issued and outstanding at March 31, 2019 and December 31, 2018 |
91,223 | 91,223 | ||||||
| Total Preferred Stock | 162,223 | 162,223 | ||||||
| Stockholders’ deficit: | ||||||||
| Common stock, par value of $0.001 per share; 158,745,671 shares authorized at March 31, 2019 and December 31, 2018, 1,379,509 and 1,374,812 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively |
11 | 11 | ||||||
| Additional paid-in capital | 729 | 342 | ||||||
| Accumulated deficit | (53,452 | ) | (47,297 | ) | ||||
| Total stockholders’ deficit | (52,712 | ) | (46,944 | ) | ||||
| Total liabilities, preferred stock and stockholders’ deficit | $ | 145,426 | $ | 147,628 | ||||
Investor Inquiries 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
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