REGENXBIO Reports First Quarter 2020 Financial Results and Operational Highlights
ROCKVILLE, Md., May 7, 2020 /PRNewswire/ -- REGENXBIO Inc. (Nasdaq: RGNX), a leading clinical-stage biotechnology company seeking to improve lives through the curative potential of gene therapy based on its proprietary NAV(®) Technology Platform, today announced financial results for the quarter ended March 31, 2020, and recent operational highlights.
"Our overall focus at REGENXBIO during the COVID-19 pandemic is on the health and safety of our people and our communities, as well as the important work that we need to continue in order to help patients," said Kenneth T. Mills, President and Chief Executive Officer of REGENXBIO. "We recently reported additional positive data from our RGX-314 Phase I/IIa wet AMD trial which demonstrated long-term, sustained clinical outcomes in patients after a one-time administration of RGX-314 gene therapy. We look forward to initiating a pivotal program for the subretinal delivery of RGX-314 for wet AMD as well as additional studies using the suprachoroidal delivery approach in both wet AMD and diabetic retinopathy in 2020. We also anticipate providing updates throughout 2020 from our other programs, including the Phase I/II trials of RGX-121 for the treatment of MPS II and RGX-501 for the treatment of HoFH."
Mr. Mills added: "We continue to track the positive progress of Novartis' Zolgensma which uses the NAV AAV9 vector for the treatment of pediatric patients with spinal muscular atrophy (SMA). We are encouraged by the recent regulatory updates from Japan and Europe, and we look forward to continued sales growth for Zolgensma. After more than a decade of steadfast effort and focus, we remain dedicated and committed to improving lives through the curative potential of gene therapy."
Recent Operational Highlights
Gene Therapy Using NAV Vectors for AAV-Mediated Antibody Delivery
-- RGX-314 for the Treatment of Wet AMD
-- In April 2020, REGENXBIO reported positive additional data from the
RGX-314 Phase I/IIa trial using subretinal delivery. As of April 6,
2020:
-- RGX-314 continued to be well-tolerated at all dose levels.
-- Long-term, durable treatment effect was demonstrated in Cohort
3:
-- Mean improvement in vision (+14 letters) and stable retinal
thickness (+2 µm) observed at two years.
-- 50% of patients (3/6) remained anti-VEGF injection-free over
two years.
-- 67% of patients (4/6) were anti-VEGF injection-free from
nine months to two years.
-- Stable intraocular RGX-314 protein expression observed over
two years.
-- 73% of patients (8/11) in Cohort 5 were anti-VEGF injection-free
over nine months.
-- Intraocular RGX-314 protein levels at six months demonstrated
dose-dependent expression across cohorts.
-- REGENXBIO expects to initiate a pivotal program for the subretinal
delivery of RGX-314 for the treatment of wet AMD in the second half
of 2020.
-- REGENXBIO plans to finalize the design of the trial based on the
one-year assessment of patients in Cohorts 4 and 5 in the Phase
I/IIa trial and expects to begin dosing patients in the trial in
the second half of 2020.
-- REGENXBIO plans to initiate the Phase II trial for the
suprachoroidal delivery of RGX-314 using the SCS Microinjector(TM)
for the treatment of wet AMD in the first half of 2020.
-- Interim data is expected from the first cohort by the end of
2020.
-- RGX-314 for the Treatment of Diabetic Retinopathy (DR)
-- REGENXBIO plans to evaluate RGX-314 using the SCS Microinjector for
the treatment of DR, and expects to submit an investigational new
drug (IND) application for a Phase II trial in mid-2020.
-- REGENXBIO plans to initiate the trial in the second half of 2020
and interim data is expected in 2021.
-- Research Program for the Treatment of Hereditary Angioedema (HAE)
-- Lead product candidate selection is expected in the first half of
2020 and REGENXBIO expects to provide a program update in the second
half of 2020.
-- Research Program for the Treatment of Neurodegenerative Diseases
-- REGENXBIO previously announced the expansion of the exclusive
collaboration with Neurimmune AG to design and develop vectorized
antibody therapies targeting both alpha synuclein and tau. REGENXBIO
expects to provide a program update in the second half of 2020.
Gene Therapy Using NAV Vectors for Rare Genetic Diseases
-- RGX-121 for the Treatment of Mucopolysaccharidosis Type II (MPS II)
-- Initial data from Cohort 1 of the Phase I/II trial were presented at
the WORLDSymposium conference in February 2020 and REGENXBIO expects
to provide additional data from this cohort in mid-2020.
-- REGENXBIO expects to complete enrollment of patients in Cohort 2 in
the first half of 2020, with interim data anticipated in the second
half of 2020.
-- RGX-111 for the Treatment of Mucopolysaccharidosis Type I (MPS I)
-- Recruitment, screening and additional site activations are ongoing
in the Phase I/II trial.
-- REGENXBIO expects to provide a program update in the second half of
2020.
-- RGX-181 for the Treatment of Late-infantile Neuronal Ceroid
Lipofuscinosis Type 2 (CLN2) Disease
-- REGENXBIO is conducting ongoing preclinical development of RGX-181,
including assessment of unmet clinical needs such as neurologic and
ophthalmologic manifestations of the disease. REGENXBIO expects to
provide a program update in mid-2020 and submit an IND for a
first-in-human trial in the second half of 2020.
-- RGX-501 for the Treatment of Homozygous Familial Hypercholesterolemia
(HoFH)
-- As previously announced, REGENXBIO completed dosing of an expanded
Cohort 2 in the Phase I/II trial and plans to assess low-density
lipoprotein (LDL-C) levels after all patients have completed steroid
prophylaxis treatment. REGENXBIO expects to provide a program update
in the first half of 2020.
-- Research Program for the Treatment of Neuromuscular Disorders
-- REGENXBIO expects to announce plans for clinical development of a
potential treatment for a neuromuscular disorder using NAV AAV8 in
the second half of 2020.
Operational Updates
-- Current Good Manufacturing Practice (cGMP) Manufacturing Facility
-- Construction of a new corporate, research and manufacturing
headquarters in Rockville, Maryland continues, with plans to begin
utilizing the new headquarters in late 2020.
-- The new cGMP production facility is expected to allow for production
of NAV vectors at scales up to 2,000 liters using REGENXBIO's
platform suspension cell culture process, which will complement
REGENXBIO's current external manufacturing network and capabilities.
The cGMP facility is expected to be operational starting in 2021.
NAV Technology Licensee Program Highlights
As of March 31, 2020, REGENXBIO's NAV Technology Platform was being applied in one marketed product, and the clinical development of 15 partnered product candidates, with over 20 partnered programs in total. REGENXBIO's NAV Technology Licensees are advancing product candidates in a broad range of therapeutic areas and disease indications. Recent updates from NAV Technology Licensees include:
-- On March 31, 2020, REGENXBIO and Ultragenyx Pharmaceutical Inc.
announced a new exclusive, worldwide license agreement to REGENXBIO's
NAV AAV8 and AAV9 vectors for the treatment of a rare metabolic
disorder, extending the companies' existing gene therapy partnership. In
return for these rights, REGENXBIO received an upfront payment of $7
million, and will receive ongoing fees, milestone payments, and
royalties on net sales of products incorporating the licensed
intellectual property.
Marketed NAV Technology Product Highlights
-- On April 28, 2020, Novartis AG reported first quarter 2020 Zolgensma(®)
sales revenue of $170 million, and REGENXBIO recognized royalty revenue
of $10.0 million in the first quarter of 2020 as a result of these
sales. Since launch in May 2019, Zolgensma has recorded total net sales
of over $530 million.
-- On March 27, 2020, Novartis announced that the Committee for Medicinal
Products for Human Use (CHMP) of the European Medicines Agency (EMA)
adopted a positive opinion recommending conditional marketing
authorization of Zolgensma.
-- On March 19, 2020, Novartis announced that Zolgensma received approval
from the Japanese Ministry of Health, Labour and Welfare (MHLW) for the
treatment of patients under the age of two with spinal muscular atrophy
(SMA), including patients who are pre-symptomatic at diagnosis.
Financial Results
Cash Position: Cash, cash equivalents and marketable securities were $356.6 million as of March 31, 2020, compared to $400.0 million as of December 31, 2019. The decrease was primarily attributable to net cash used in operating activities of $35.6 million and cash used to purchase property and equipment of $4.6 million.
Revenues: Revenues were $17.6 million for the three months ended March 31, 2020, compared to $0.9 million for the three months ended March 31, 2019. The increase was primarily attributable to $10.0 million of royalty revenue recognized on net sales of Zolgensma in the first quarter of 2020, as well as $7.2 million of license revenue recognized from a new license granted to Ultragenyx Pharmaceutical Inc. during the period. Commercial sales of Zolgensma commenced in the second quarter of 2019, and REGENXBIO is eligible to receive a milestone payment of $80.0 million from AveXis, Inc. upon the achievement of $1.0 billion in cumulative net sales of Zolgensma.
Research and Development Expenses: Research and development expenses were $37.0 million for the three months ended March 31, 2020, compared to $25.2 million for the three months ended March 31, 2019. The increase was primarily attributable to personnel-related costs as a result of increased headcount, laboratory and facilities costs, expenses associated with conducting clinical trials for our lead product candidates and externally sourced services for preclinical, regulatory and manufacturing-related activities.
General and Administrative Expenses: General and administrative expenses were $14.8 million for the three months ended March 31, 2020, compared to $11.6 million for the three months ended March 31, 2019. The increase was primarily attributable to personnel-related costs as a result of increased headcount and professional fees for advisory and other services.
Net Loss: Net loss was $40.0 million, or $1.08 basic and diluted net loss per share, for the three months March 31, 2020, compared to net loss of $32.2 million, or $0.89 basic and diluted net loss per share, for the three months ended March 31, 2019.
Financial Guidance
Based on its current operating plan, REGENXBIO expects its balance in cash, cash equivalents and marketable securities of $356.6 million to fund the completion of its internal manufacturing capabilities and clinical advancement of its product candidates into 2022.
Conference Call
In connection with this announcement, REGENXBIO will host a conference call and webcast today at 4:30 p.m. ET. To access the live call by phone, dial (855) 422-8964 (domestic) or (210) 229-8819 (international) and enter the passcode 3893881. To access a live or recorded webcast of the call and accompanying slides, please visit the "Investors" section of the REGENXBIO website at www.regenxbio.com. The recorded webcast will be available for approximately 30 days following the call.
About REGENXBIO Inc.
REGENXBIO is a leading clinical-stage biotechnology company seeking to improve lives through the curative potential of gene therapy. REGENXBIO's NAV Technology Platform, a proprietary adeno-associated virus (AAV) gene delivery platform, consists of exclusive rights to more than 100 novel AAV vectors, including AAV7, AAV8, AAV9 and AAVrh10. REGENXBIO and its third-party NAV Technology Platform Licensees are applying the NAV Technology Platform in the development of a broad pipeline of candidates in multiple therapeutic areas.
Forward-Looking Statements
This press release includes "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements express a belief, expectation or intention and are generally accompanied by words that convey projected future events or outcomes such as "believe," "may," "will," "estimate," "continue," "anticipate," "design," "intend," "expect," "could," "plan," "potential," "predict," "seek," "should," "would" or by variations of such words or by similar expressions. The forward-looking statements include statements relating to, among other things, REGENXBIO's future operations, clinical trials, costs and cash flow. REGENXBIO has based these forward-looking statements on its current expectations and assumptions and analyses made by REGENXBIO in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors REGENXBIO believes are appropriate under the circumstances. However, whether actual results and developments will conform with REGENXBIO's expectations and predictions is subject to a number of risks and uncertainties, including the timing of enrollment, commencement and completion and the success of clinical trials conducted by REGENXBIO, its licensees and its partners, the timing of commencement and completion and the success of preclinical studies conducted by REGENXBIO and its development partners, the timely development and launch of new products, the ability to obtain and maintain regulatory approval of product candidates, the ability to obtain and maintain intellectual property protection for product candidates and technology, trends and challenges in the business and markets in which REGENXBIO operates, the size and growth of potential markets for product candidates and the ability to serve those markets, the rate and degree of acceptance of product candidates, the impact of the COVID-19 pandemic or similar public health crises on REGENXBIO's business, and other factors, many of which are beyond the control of REGENXBIO. Refer to the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of REGENXBIO's Annual Report on Form 10-K for the year ended December 31, 2019, and comparable "risk factors" sections of REGENXBIO's Quarterly Reports on Form 10-Q and other filings, which have been filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC's website at www.sec.gov. All of the forward-looking statements made in this press release are expressly qualified by the cautionary statements contained or referred to herein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on REGENXBIO or its businesses or operations. Such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Readers are cautioned not to rely too heavily on the forward-looking statements contained in this press release. These forward-looking statements speak only as of the date of this press release. REGENXBIO does not undertake any obligation, and specifically declines any obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SCS Microinjector(TM) is a trademark of Clearside Biomedical, Inc. Zolgensma(®) is a registered trademark of AveXis. All other trademarks referenced herein are registered trademarks of REGENXBIO.
REGENXBIO INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands, except per share data)
March 31, 2020 December 31, 2019
Assets
Current assets
Cash and cash equivalents $
69,411 $
69,514
Marketable securities 209,846 226,696
Accounts receivable 44,522 38,148
Prepaid expenses 7,422 6,475
Other current assets 7,032 4,199
Total current assets 338,233 345,032
Marketable securities 77,361 103,785
Accounts receivable 4,373 4,155
Property and equipment, net 30,414 28,973
Operating lease right-of-use assets 9,375 10,078
Restricted cash 1,330 1,330
Other assets 2,850 4,555
Total assets $
463,936 $
497,908
Liabilities and Stockholders
'
Equity
Current liabilities
Accounts payable $
9,008 $
6,409
Accrued expenses and other current liabilities 20,327 24,846
Operating lease liabilities 2,454 2,421
Total current liabilities 31,789 33,676
Deferred revenue 3,333 3,333
Operating lease liabilities 7,990 8,874
Other liabilities 672 1,828
Total liabilities 43,784 47,711
Stockholders' equity
Preferred stock; $0.0001 par value; 10,000 shares
authorized, and no shares issued and outstanding
at March 31, 2020 and December 31, 2019
Common stock; $0.0001 par value; 100,000 shares 4 4
authorized at March 31, 2020 and December 31, 2019;
37,190 and 36,992 shares issued and outstanding
at March 31, 2020 and December 31, 2019, respectively
Additional paid-in capital 638,588 627,810
Accumulated other comprehensive income (loss) (580) 205
Accumulated deficit (217,860) (177,822)
Total stockholders' equity 420,152 450,197
Total liabilities and stockholders' equity $
463,936 $
497,908
REGENXBIO INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited)
(in thousands, except per share data)
Three Months Ended March 31,
2020 2019
Revenues
License and royalty revenue $
17,644 $
884
Total revenues 17,644 884
Operating Expenses
Cost of revenues 3,409 29
Research and development 37,035 25,203
General and administrative 14,833 11,558
Other operating expenses 67
Total operating expenses 55,344 36,790
Loss from operations (37,700) (35,906)
Other Income (Loss)
Interest income from licensing 848 613
Investment income (loss) (3,186) 2,995
Total other income (loss) (2,338) 3,608
Loss before income taxes (40,038) (32,298)
Income Tax Benefit 70
Net loss $
(40,038) $
(32,228)
Other Comprehensive Income (Loss)
Unrealized gain (loss) on available-for-sale
securities, net (785) 621
Total other comprehensive income (loss) (785) 621
Comprehensive loss $
(40,823) $
(31,607)
Basic and diluted net loss per share $
(1.08) $
(0.89)
Weighted-average basic and diluted common
shares outstanding 37,104 36,366
Contacts:
Tricia Truehart
Investor Relations and Corporate Communications
347-926-7709
ttruehart@regenxbio.com
Investors:
Heather Savelle, 212-600-1902
heather@argotpartners.com
Media:
David Rosen, 212-600-1902
david.rosen@argotpartners.com
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SOURCE REGENXBIO Inc.
