MORF-057 phase 1 safety, receptor occupancy, PK and mechanistic measures exceeded objectives; phase 2 program in ulcerative colitis expected to begin 1Q22
Announced appointment of Nisha Nanda, Ph.D., to Morphic Board of Directors
WALTHAM, Mass., Nov. 04, 2021 (GLOBE NEWSWIRE) -- Morphic Therapeutic (Nasdaq: MORF), a biotechnology company developing a new generation of oral integrin therapies for the treatment of serious chronic diseases, today reported corporate highlights and financial results for the third quarter of 2021.
Recent Highlights and Outlook
“MORF-057’s performance in phase 1 studies exceeded our internal modelling across all key criteria and we are now finalizing preparations for the initiation of the MORF-057 phase 2 program in patients with moderate-to-severe ulcerative colitis,” said Praveen Tipirneni, M.D., President and Chief Executive Officer of Morphic Therapeutic. “Developing MORF-057 with our MInT platform has generated an array of learnings that feed into our earlier proprietary pipeline, driving advances in Morphic’s programs in immuno-oncology and other indications. In particular, we are looking forward to the presentation of new preclinical data from our αvβ8 program demonstrating the strong anti-tumor activity of a Morphic αvβ8 small molecule inhibitor dosed in combination with a checkpoint inhibitor and radioimmunotherapy in a tumor that is unresponsive to respective monotherapies or conventional radioimmunotherapy.”
Financial Results for the Third Quarter 2021
As of September 30, 2021, Morphic had cash, cash equivalents and marketable securities of $427.6 million, compared to $228.3 million as of December 31, 2020. Morphic believes its cash, cash equivalents and marketable securities as of September 30, 2021, will be sufficient to fund operating expenses and capital expenditure requirements until the end of 2024.
About Morphic Therapeutic
Morphic Therapeutic is a biopharmaceutical company developing a new generation of oral integrin therapies for the treatment of serious chronic diseases, including autoimmune, cardiovascular, and metabolic diseases, fibrosis and cancer. In collaboration with AbbVie, Janssen, and Schrödinger, Morphic is advancing its pipeline and discovery activities using its proprietary MInT technology platform which leverages the Company’s unique understanding of integrin structure and biology. For more information, visit www.morphictx.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking” statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to: the MInT Platform’s ability to discover drug candidates, Morphic’s plans to develop and commercialize oral small-molecule integrin therapeutics, the initiation, execution and completion of the future MORF-057 phase 2 clinical trial, any expectations about safety, efficacy, timing and ability to commence or complete clinical studies and/or trials and to obtain regulatory approvals for MORF-057 and other candidates in development, the timing of further data presentation and the ability of MORF-057 to treat inflammatory bowel disease, including ulcerative colitis, or related indications. Statements including words such as “believe,” “plan,” “continue,” “expect,” “will be,” “develop,” “signal,” “potential,” “anticipate” or “ongoing” and statements in the future tense are forward-looking statements. These forward-looking statements involve risks and uncertainties, as well as assumptions, which, if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements are subject to risks and uncertainties that may cause Morphic’s actual activities or results to differ significantly from those expressed in any forward-looking statement, including risks and uncertainties in this press release and other risks set forth in our filings with the Securities and Exchange Commission, including Morphic’s or a partner’s ability to complete a current or future clinical trial of any of our current or future product candidates, develop or obtain regulatory approval for or commercialize any product candidate, Morphic’s ability to protect intellectual property, the potential impact of the COVID-19 pandemic, and the sufficiency of our cash, cash equivalents and investments to fund our operations. These forward-looking statements speak only as of the date hereof and Morphic specifically disclaims any obligation to update these forward-looking statements or reasons why actual results might differ, whether as a result of new information, future events or otherwise, except as required by law.
Morphic Holding Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands)
September 30, 2021 | December 31, 2020 | ||||
Assets | |||||
Cash, cash equivalents and marketable securities | $ | 427,576 | $ | 228,264 | |
Other current assets | 7,828 | 11,171 | |||
Total current assets | 435,404 | 239,435 | |||
Other assets | 3,159 | 2,947 | |||
Total assets | $ | 438,563 | $ | 242,382 | |
Liabilities and Stockholders' Equity | |||||
Current liabilities | $ | 41,764 | $ | 39,438 | |
Long-term liabilities | 46,634 | 57,747 | |||
Total liabilities | 88,398 | 97,185 | |||
Total stockholders' equity | 350,165 | 145,197 | |||
Total liabilities and stockholders' equity | $ | 438,563 | $ | 242,382 | |
Morphic Holding 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, | |||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||
| | | | | |||||||||||
Collaboration revenue | $ | 3,124 | $ | 25,757 | $ | 10,238 | $ | 39,044 | |||||||
Operating expenses: | |||||||||||||||
Research and development | 20,966 | 15,998 | 64,131 | 54,877 | |||||||||||
General and administrative | 7,276 | 4,751 | 20,367 | 13,368 | |||||||||||
Total operating expenses | 28,242 | 20,749 | 84,498 | 68,245 | |||||||||||
(Loss) Income from operations | (25,118 | ) | 5,008 | (74,260 | ) | (29,201 | ) | ||||||||
Other income: | |||||||||||||||
Interest income, net | 77 | 237 | 140 | 1,536 | |||||||||||
Other expense | — | (6 | ) | (20 | ) | (12 | ) | ||||||||
Total other income, net | 77 | 231 | 120 | 1,524 | |||||||||||
(Loss) Income before benefit from income taxes | (25,041 | ) | 5,239 | (74,140 | ) | (27,677 | ) | ||||||||
Benefit from income taxes | — | 115 | — | 427 | |||||||||||
Net (loss) income | $ | (25,041 | ) | $ | 5,354 | $ | (74,140 | ) | $ | (27,250 | ) | ||||
Net (loss) income per share, basic | $ | (0.69 | ) | $ | 0.18 | $ | (2.09 | ) | $ | (0.90 | ) | ||||
Net (loss) income per share, diluted | $ | (0.69 | ) | $ | 0.17 | $ | (2.09 | ) | $ | (0.90 | ) | ||||
| |||||||||||||||
Weighted average common shares outstanding, basic | 36,547,222 | 30,533,847 | 35,392,153 | 30,368,437 | |||||||||||
Weighted average common shares outstanding, diluted | 36,547,222 | 32,366,141 | 35,392,153 | 30,368,437 |
Contacts
Morphic Therapeutic
Chris Erdman
[email protected]
617.686.1718
Media Contact
Tom Donovan, Ten Bridge Communications
[email protected]
857.559.3397
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