Vir Biotechnology Provides Corporate Update and Reports Third Quarter 2019 Financial Results
“Vir Biotechnology was founded to leverage advances in immunology, creating new ways of combatting serious infectious diseases on a global scale,” said
- In October, Vir raised
$142.9 millionin gross proceeds from an initial public offering.
- VIR-2218, a hepatitis B virus (HBV)-targeting small interfering ribonucleic acid (siRNA) being developed for the functional cure of HBV, has completed Phase 1/2 dosing of all patient cohorts receiving 50 – 200 mg. Data continue to be consistent with those previously shown and the company continues to anticipate additional data for this trial to be available in the first half of 2020.
- VIR-2482, a monoclonal antibody being developed as universal prophylaxis for influenza A, is in an ongoing Phase 1/2 clinical trial. Based on a positive review by the trial’s safety review committee of the available safety data for the 300 mg and 1200 mg cohorts, dosing in the 1800 mg cohort was initiated. The company continues to anticipate data from the first flu season of the Phase 1/2 clinical trial to be available in the second half of 2020 and from the second flu season of this trial to be available in the first half of 2021.
- VIR-1111, a human immunodeficiency virus (HIV) T cell vaccine based on human cytomegalovirus (HCMV), and VIR-3434, an HBV-neutralizing monoclonal antibody, both continue to be on track for investigational new drug (IND) and clinical trial application (CTA) submissions respectively in the first half of 2020.
Saira Ramasastryjoined the Vir Board of Directors in September. Ms. Ramasastry is a recognized expert on life science alliances and deals and brings more than 20 years of transaction and advisory experience to her role on the Board of Directors. Steven Ricejoined the Vir senior leadership team in September as Chief Human Resources Officer. Over the course of the past 30 years, Mr. Rice has held several HR leadership positions at leading technology and healthcare organizations, most recently as the Chief Human Resources Officer at the Bill and Melinda Gates Foundation.
Third Quarter 2019 Financial Results
- Revenues: Total revenues for the quarter ended
September 30, 2019were $1.4 million, compared to $2.9 millionfor same period in 2018. This decrease was primarily due to a decline in grant revenue.
- Research and Development Expenses: Research and development expenses were
$39.9 millionfor the quarter ended September 30, 2019, which includes $0.9 millionof non-cash stock-based compensation expense, compared to $29.8 millionfor the same period in 2018, which includes $0.3 millionof non-cash stock-based compensation expense. This increase was primarily due to an increase in personnel and ongoing clinical expenses and licenses and collaboration expenses.
- General and Administrative Expenses: General and administrative expenses were
$9.2 millionfor the quarter ended September 30, 2019, which includes $1.3 millionof non-cash stock-based compensation expense, compared to $7.4 millionfor the same period in 2018, which includes $1.2 millionof non-cash stock-based compensation expense. The increase was primarily due to an increase in personnel-related expenses related to additional headcount, as well as an increase in professional fees.
- Net Loss: Net loss for the quarter ended
September 30, 2019was $48.3 million, or $4.60per share, compared to a net loss of $33.5 million, or $4.16per share, for the same period in 2018.
- Cash and Cash Equivalents: As of
September 30, 2019, Vir had approximately $320.2 millionin cash, cash equivalents and short-term investments.
VIR-2218 is a subcutaneously administered HBV-targeting siRNA that has the potential to stimulate an effective immune response and have direct antiviral activity against HBV. Currently in a Phase 1/2 clinical trial, VIR-2218 is the first siRNA in the clinic to include Enhanced Stabilization Chemistry Plus (ESC+) technology to enhance stability and minimize off-target activity, which potentially can result in an increased therapeutic index. Initial data suggest that VIR-2218 is generally well-tolerated in healthy volunteers given as a single dose up to 900 mg and in patients with chronic HBV given as two doses of 20 mg, 50 mg, 100 mg or 200 mg each dose. Initial data also demonstrate substantial reductions in HBsAg in patients at doses ranging from 20 mg to 200 mg. VIR-2218 is the first asset in the company’s collaboration with
VIR-2482 is an intramuscularly administered influenza A-neutralizing monoclonal antibody currently in a Phase 1/2 clinical trial. In vitro, VIR-2482 has been shown to cover all major strains of influenza A that have arisen since the 1918 Spanish flu pandemic. VIR-2482 is designed as a universal prophylaxis for influenza A. It has the potential to overcome the limitations of current flu vaccines and lead to meaningfully higher levels of protection due to its broad strain coverage and because it does not rely on an individual to create their own protective antibody response. VIR-2482 has been half-life engineered so that a single dose has the potential to last the entire flu season, which is typically five to six months long. Vir anticipates clinical data from the first flu season of the Phase 1/2 clinical trial to be available in the second half of 2020 and from the second flu season of this trial to be available in the first half of 2021.
VIR-1111 is a subcutaneously administered HIV T cell vaccine based on human cytomegalovirus (HCMV) that has been designed to elicit T cells that recognize HIV epitopes that are different from those recognized by prior HIV vaccines and to stimulate a different and specific type of T cell immune response to HIV, known as an HLA-E restricted immune response. VIR-1111 is designed to establish proof of concept in a Phase I clinical trial to determine whether the unique immune response observed in preclinical studies can be replicated in humans. Vir plans to file an IND for VIR-1111 in the first half of 2020.
VIR-3434 is a subcutaneously administered HBV-neutralizing monoclonal antibody designed to block entry of all 10 genotypes of HBV into hepatocytes and also to reduce the level of virions and subviral particles in the blood. VIR-3434 has been engineered to have an extended half-life as well as to potentially function as a T cell vaccine against HBV in infected patients. Vir plans to submit a CTA for VIR-3434 in the first half of 2020 and anticipates clinical data from a Phase 1 clinical trial to be available in the first half of 2021.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “expect,” “plan,” “anticipate,” “estimate,” “intend” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. These forward-looking statements are based on Vir’s expectations and assumptions as of the date of this press release. Each of these forward-looking statements involves risks and uncertainties. Actual results may differ materially from these forward-looking statements. Forward-looking statements contained in this press release include statements regarding the timing of program updates and data disclosures for Vir’s clinical trials and the anticipated timing of IND and CTA submissions for its product candidates, among others. Many factors may cause differences between current expectations and actual results including unexpected safety or efficacy data observed during preclinical or clinical studies, clinical site activation rates or clinical trial enrollment rates that are lower than expected, changes in expected or existing competition, and unexpected litigation or other disputes. Other factors that may cause actual results to differ from those expressed or implied in the forward-looking statements in this press release are discussed in Vir’s filings with the
|Vir Biotechnology, Inc.|
|Condensed Consolidated Statements of Operations|
|(unaudited; in thousands, except share and per share data)|
|Three Months Ended September 30,||Nine Months Ended September 30,|
|Research and development||39,863||29,837||95,541||78,256|
|General and administrative||9,220||7,394||25,790||21,182|
|Total operating expenses||49,083||37,231||121,331||99,438|
|Loss from operations||(47,680||)||(34,346||)||(114,220||)||(91,896||)|
|Other income (expense):|
|Other income (expense), net||(2,659||)||178||(3,251||)||(14||)|
|Total other income (expense), net||(647||)||890||3,313||1,905|
|Loss before benefit from (provision for) income taxes||(48,327||)||(33,456||)||(110,907||)||(89,991||)|
|Benefit from (provision for) income taxes||13||—||(5||)||500|
|Net loss per share, basic and diluted||$||(4.60||)||$||(4.16||)||$||(11.53||)||$||(12.20||)|
|Weighted-average shares outstanding, basic and diluted||10,500,848||8,043,283||9,615,379||7,333,986|
|Vir Biotechnology, Inc.|
|Condensed Consolidated Balance Sheets|
|(unaudited; in thousands, except share and per share data)|
|September 30, 2019||December 31, 2018|
|Cash and cash equivalents||$||93,698||$||47,598|
|Restricted cash and cash equivalents, current||8,822||10,761|
|Prepaid expenses and other current assets||8,688||8,579|
|Total current assets||337,720||117,783|
|Intangible assets, net||35,999||36,917|
|Property and equipment, net||15,448||12,290|
|Restricted cash and cash equivalents, noncurrent||2,850||1,003|
|LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT|
|Deferred revenue, current portion||8,822||8,761|
|Advanced proceeds from preferred stock financing||—||10,140|
|Contingent consideration, current portion||6,726||—|
|Total current liabilities||44,316||39,908|
|Deferred revenue, noncurrent||8,408||6,561|
|Convertible preferred stock warrant liability||4,425||1,024|
|Contingent consideration, noncurrent||3,343||9,250|
|Deferred tax liability||3,305||3,305|
|Other long-term liabilities||3,030||1,588|
|Convertible preferred stock, $0.0001 par value; 421,450,000 shares authorized; 88,112,733 and 69,910,520 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively; aggregate liquidation preference of $675,567 and $333,058 as of September 30, 2019 and December 31, 2018, respectively||636,612||309,137|
|Common stock, $0.0001 par value; 558,350,000 shares authorized as of September 30, 2019 and December 31, 2018; 11,728,232 and 8,858,799 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively||1||1|
|Additional paid-in capital||23,869||14,672|
|Accumulated other comprehensive income (loss)||81||(14||)|
|TOTAL STOCKHOLDERS’ DEFICIT||(280,797||)||(179,177||)|
|TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT||$||422,642||$||191,596|
Source: Vir Biotechnology, Inc.