UNITED STATES
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FORM
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CURRENT REPORT
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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On August 6, 2020, Molecular Templates, Inc. (the "Company") announced its financial results for the second quarter of 2020 ended June 30, 2020. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information contained in this Item 2.02 and in the press release furnished as Exhibit 99.1 to this Current Report on Form 8-K shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. The information contained in this Item 2.02 and in the press release furnished as Exhibit 99.1 to this current report on Form 8-K shall not be incorporated by reference into any filing with the U.S. Securities and Exchange Commission made by the Company whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Exhibit 99.1 | Press Release dated August 6, 2020 | |
Exhibit 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Molecular Templates, Inc. | ||
Date: August 6, 2020 | By: | /s/ Eric E. Poma, Ph.D. |
Eric E. Poma, Ph.D. | ||
Chief Executive Officer | ||
EXHIBIT 99.1
Molecular Templates, Inc. Reports Second Quarter 2020 Financial Results
AUSTIN, Texas, Aug. 06, 2020 (GLOBE NEWSWIRE) -- Molecular Templates, Inc. (Nasdaq: MTEM, “Molecular Templates,” “MTEM” or “the Company”), a clinical-stage biopharmaceutical company focused on the discovery and development of proprietary targeted biologic therapeutics, engineered toxin bodies (ETBs), today reported financial results for the second quarter of 2020.
“Since our last quarterly update, we presented preclinical data at AACR on four preclinical ETB programs, provided an update on the ongoing Phase I study for MT-5111, and strengthened our balance sheet through a new debt facility and our ATM,” said Eric Poma, Ph.D., Molecular Templates’ Chief Executive and Chief Scientific Officer. “In the second half of 2020, we expect to report interim clinical data from our three MT-3724 Phase 2 studies and additional data from the MT-5111 Phase 1 study, and also file the IND for MT-6402, our PD-L1-targeted ETB with antigen seeding.”
Company Highlights, Pipeline Status, and Upcoming Milestones
Corporate
MT-3724 (CD20 ETB)
TAK-169 (CD38 ETB)
MT-5111 (HER2 ETB)
Research
COVID-19 Impact
Financial Results
The net loss attributable to common shareholders for the second quarter of 2020 was $31.2 million, or $0.68 per basic and diluted share. This compares with a net loss attributable to common shareholders of $9.2 million, or $0.25 per basic and diluted share, for the same period in 2019.
Revenues for the second quarter of 2020 were $6.9 million, compared to $5.4 million for the same period in 2019. Revenues for the second quarter of 2020 were comprised of revenues from collaborative research and development agreements with Takeda and Vertex, as well as grant revenue from CPRIT. Total research and development expenses for the second quarter of 2020 were $30.4 million, compared with $10.2 million for the same period in 2019. Total general and administrative expenses for the second quarter of 2020 were $6.4 million, compared with $4.6 million for the same period in 2019.
As of June 30, 2020, MTEM’s cash and investments totaled $91.0 million. With the addition of $50 million in gross proceeds raised through MTEM’s ATM facility after the end of the quarter, MTEM expects to be able to fund operations into 2H22.
About Molecular Templates
Molecular Templates is a clinical-stage company focused on the discovery and development of targeted biologic therapeutics. Our proprietary drug platform technology, known as engineered toxin bodies, or ETBs, leverages the resident biology of a genetically engineered form of Shiga-like Toxin A subunit to create novel therapies with potent and differentiated mechanisms of action for cancer and other serious diseases.
Forward-Looking Statements
This press release contains forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 (the “Act”). Molecular Templates disclaims any intent or obligation to update these forward-looking statements, and claims the protection of the Act’s Safe Harbor for forward-looking statements. All statements, other than statements of historical facts, included in this press release regarding strategy, future operations, future financial position, future revenue, projected expenses, prospects, plans and objectives of management are forward-looking statements. In addition, when or if used in this press release, the words “may,” “could,” “should,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “predict” and similar expressions and their variants, as they relate to Molecular Templates may identify forward-looking statements. Examples of such statements include, but are not limited to, statements relating to the development of the MT-3724, MT-5111, TAK-169, and MT-6402; the expected timing of submitting various IND applications and conducting studies; the expected participation and presentation at upcoming medical conferences; the anticipated effects of the COVID-19 pandemic on the Company’s ongoing clinical studies, manufacturing and preclinical development; and the Company’s belief that its proprietary biologic drug platform technology, or ETBs, provides for a differentiated mechanism of action that may address some of the limitations associated with currently available cancer therapeutics.
Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual events or results may differ materially from those discussed in the forward-looking statements as a result of various factors including, but not limited to, the uncertainties inherent in the preclinical and clinical development process; whether the Company’s cash resources will be sufficient to fund its continuing operations for the periods and/or trials anticipated; the ability of the Company to protect its intellectual property rights; risks from global pandemics including COVID-19; and legislative, regulatory, political and economic developments, as well as those risks identified under the heading “Risk Factors” in the Company’s filings with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof, and the Company specifically disclaims any obligation to update any forward-looking statement, whether because of new information, future events or otherwise.
Contact:
Adam Cutler
Chief Financial Officer
adam.cutler@mtem.com
862-204-4006
Molecular Templates, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||
Research and development revenue, related party | $ | 3,063 | $ | 5,211 | $ | 3,396 | $ | 11,624 | ||||||
Research and development revenue, other | 2,977 | — | 4,444 | — | ||||||||||
Grant revenue | 869 | 236 | 3,210 | 831 | ||||||||||
Total revenue | 6,909 | 5,447 | 11,050 | 12,455 | ||||||||||
Operating expenses: | ||||||||||||||
Research and development | 30,414 | 10,243 | 51,045 | 18,697 | ||||||||||
General and administrative | 6,412 | 4,605 | 12,059 | 9,540 | ||||||||||
Total operating expenses | 36,826 | 14,848 | 63,104 | 28,237 | ||||||||||
Loss from operations | 29,917 | 9,401 | 52,054 | 15,782 | ||||||||||
Interest and other income, net | 286 | 543 | 758 | 1,053 | ||||||||||
Interest and other expense, net | (360 | ) | (301 | ) | (708 | ) | (594 | ) | ||||||
Loss on extinguishment of debt | (1,237 | ) | — | (1,237 | ) | — | ||||||||
Change in fair value of warrant liabilities | — | 6 | — | 2 | ||||||||||
Loss before provision for income taxes | 31,228 | 9,153 | 53,241 | 15,321 | ||||||||||
Provision for income taxes | — | — | 5 | — | ||||||||||
Net loss | 31,228 | 9,153 | 53,246 | 15,321 | ||||||||||
Net loss attributable to common shareholders | $ | 31,228 | $ | 9,153 | $ | 53,246 | $ | 15,321 | ||||||
Net loss per share attributable to common shareholders: | ||||||||||||||
Basic and diluted | $ | 0.68 | $ | 0.25 | $ | 1.17 | $ | 0.42 | ||||||
Weighted average number of shares used in net loss per share calculations: | 45,725,481 | 36,819,846 | 45,687,278 | 36,779,638 | ||||||||||
Basic and diluted |
Molecular Templates, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
June 30, 2020 (unaudited) | December 31, 2019 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 27,645 | $ | 85,451 | |||
Marketable securities, current | 63,361 | 39,633 | |||||
Prepaid expenses | 3,347 | 2,318 | |||||
Grants revenue receivable | 5,900 | 7,100 | |||||
Accounts receivable, related party | 3,167 | 408 | |||||
In-process research and development - held for sale | 4,500 | 4,500 | |||||
Other current assets | 160 | 489 | |||||
Total current assets | 108,080 | 139,899 | |||||
Marketable securities, non-current | — | 1,510 | |||||
Operating lease right-of-use assets, non-current | 9,266 | 9,959 | |||||
Property and equipment, net | 20,224 | 18,158 | |||||
Other assets | 4,840 | 4,676 | |||||
Total assets | $ | 142,410 | $ | 174,202 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,660 | $ | 1,465 | |||
Accrued liabilities | 14,129 | 14,544 | |||||
Deferred revenue, current | 13,284 | 8,511 | |||||
Deferred revenue, current, related party | 5,218 | 8,780 | |||||
Other current liabilities, related party | 5,325 | — | |||||
Other current liabilities | 1,785 | 2,501 | |||||
Total current liabilities | 41,401 | 35,801 | |||||
Deferred revenue, long-term | 9,728 | 18,944 | |||||
Deferred revenue, long-term, related party | 1,849 | 441 | |||||
Long-term debt, net | 14,721 | 2,940 | |||||
Operating lease liabilities, non-current | 10,771 | 11,682 | |||||
Other liabilities, related party | 6,654 | — | |||||
Other liabilities | 1,427 | 1,366 | |||||
Total liabilities | 86,551 | 71,174 | |||||
Commitments and contingencies (Note 10) | |||||||
Stockholders’ equity | |||||||
Preferred stock, $0.001 par value: | |||||||
Authorized: 2,000,000 shares at June 30, 2020 and December 31, 2019; issued and outstanding: 250 shares at June 30, 2020 and December 31, 2019 | — | — | |||||
Common stock, $0.001 par value: | |||||||
Authorized: 150,000,000 shares; issued and outstanding: 45,778,876 shares at June 30, 2020 and 45,589,157 shares at December 31, 2019 | 46 | 46 | |||||
Additional paid-in capital | 273,012 | 267,089 | |||||
Accumulated other comprehensive income | 172 | 18 | |||||
Accumulated deficit | (217,371 | ) | (164,125 | ) | |||
Total stockholders’ equity | 55,859 | 103,028 | |||||
Total liabilities and stockholders’ equity | $ | 142,410 | $ | 174,202 |
Cover |
Aug. 06, 2020 |
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Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Aug. 06, 2020 |
Entity File Number | 001-32979 |
Entity Registrant Name | Molecular Templates, Inc. |
Entity Central Index Key | 0001183765 |
Entity Tax Identification Number | 94-3409596 |
Entity Incorporation, State or Country Code | DE |
Entity Address, Address Line One | 9301 Amberglen Blvd, Suite 100 |
Entity Address, City or Town | Austin |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 78729 |
City Area Code | 512 |
Local Phone Number | 869-1555 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, $0.001 Par Value Per Share |
Trading Symbol | MTEM |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
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