Atreca Reports Second Quarter 2023 Financial Results and Announces Corporate Restructuring
11 August 2023 - 6:05AM
Atreca, Inc. (Atreca) (NASDAQ: BCEL), a clinical-stage
biotechnology company focused on developing novel therapeutics
generated through a unique discovery platform based on
interrogation of the active human immune response, today announced
financial results for the second quarter ended June 30, 2023, and
announced a corporate reorganization to reduce expenses and extend
its cash runway. As part of the reorganization, Atreca will be
undertaking cost-saving measures, including suspending development
of ATRC-101 and reducing its workforce by approximately 40%. Going
forward operations will focus on advancing current preclinical
antibody-drug conjugate (ADC) candidates, including APN-497444,
while preserving core discovery capabilities.
“In order to extend our cash runway and focus on our preclinical
ADC development efforts, we are suspending development of
ATRC-101,” said John Orwin, Chief Executive Officer of Atreca. “We
are proud of our work in advancing ATRC-101 into the clinic and are
encouraged by the activity and safety profile that we observed,
validating the ability of our discovery platform to generate novel,
tumor-targeting product candidates. Nevertheless, given both
development requirements and financial considerations, we believe
that the best path forward for the asset is with a larger partner,
and as a result, we are suspending development and evaluating
potential out-licensing opportunities. Our preclinical ADC
pipeline, led by APN-497444, will continue to advance, and we are
working towards declaring a clinical candidate from this program in
the coming months.”
“We have also made the difficult decision to reduce our
headcount by approximately 40%,” continued Mr. Orwin. “Given the
talent and dedication of our workforce, this decision was not made
lightly. We believe, however, that it is a necessary step to ensure
we have the capital to execute on our mission to deliver novel
therapeutics to patients in need. I’d like to thank those impacted
for their important contributions to Atreca, including discovering
and advancing both ATRC-101 and APN-497444.”
Recent Developments and Highlights
- APN-497444 (‘444),
an Atreca-discovered antibody targeting a novel, tumor-specific
glycan, continues to advance. ‘444 displays uniform and
tumor-selective binding with high target prevalence in colorectal
cancer and exhibits compelling pre-clinical anti-tumor activity and
initial safety when weaponized as an ADC. Atreca expects to
nominate a clinical candidate from the program in 2023 and is
targeting an IND submission in late 2024/early 2025.
- The U.S. Food and
Drug Administration (FDA) has cleared an Investigational New Drug
(IND) application for MAM01/ATRC-501 submitted by the Gates Medical
Research Institute (Gates MRI). Gates MRI plans to initiate its
Phase 1 trial based in the US later this year, followed by a trial
in Sub-Saharan Africa. Atreca retains commercial rights in the
U.S., Europe and parts of Asia, and potential product development
opportunities in those regions include prophylaxis for those
traveling to malaria endemic regions.
Second Quarter 2023 Financial Results
- As of June 30,
2023, cash and cash equivalents and investments totaled $38.5
million.
- Research and
development expenses for the three months ended June 30, 2023, were
$12.9 million, including non-cash stock-based compensation expense
of $1.2 million.
- General and
administrative expenses for the three months ended June 30, 2023,
were $6.8 million, including non-cash stock-based compensation
expense of $1.7 million.
- Atreca reported a
net loss of $19.2 million, or basic and diluted net loss per share
attributable to common stockholders of $0.49, for the quarter ended
June 30, 2023.
About Atreca, Inc.Atreca is a biopharmaceutical
company developing novel antibody-based therapeutics generated by
its differentiated discovery platform, with a focus on
antibody-drug conjugates (ADCs). Atreca's platform allows access to
an unexplored landscape in oncology through the identification of
unique antibody-target pairs generated by the human immune system
during an active immune response against tumors. These antibodies
provide the basis for a pipeline of first-in-class oncology
programs led by APN-497444, an ADC targeting a novel tumor glycan,
in addition to MAM01/ATRC-501, a clinical candidate licensed to the
Bill & Melinda Gates Medical Research Institute for the
prevention of malaria. For more information on Atreca, please visit
www.atreca.com.
Forward-Looking Statements This release
contains statements regarding matters that are not historical facts
that are “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, but are not limited to,
statements regarding our strategy and future plans, including
statements regarding our corporate reorganization to reduce
expenses and extend our cash runway, including the suspension of
the development of ATRC-101 and a reduction in our workforce, the
effectiveness of our recently announced cost-saving measures, our
plans to focus on our preclinical ADC candidates, including
APN-497444, our evaluation of ATRC-101 out-licensing opportunities
and other strategic partner opportunities with ATRC-101, our plans
to nominate a clinical candidate from APN-497444 in 2023, our plans
to file an IND submission for APN-497444 in late 2024/early 2025,
plans of Gates MRI to initiate its Phase 1 trial for MAM01/ATRC-501
based in the U.S. and a subsequent trial in Sub-Saharan Africa and
the timing of such trials, product development opportunities for
MAM01/ATRC-501 in the U.S., Europe and parts of Asia relating to
the prevention of malaria, our preclinical and clinical plans and
the timing thereof, and our ability to preserve our core discovery
capabilities. Our actual results may differ materially from those
indicated in these forward-looking statements due to risks and
uncertainties related to the initiation, timing, progress and
results of our research and development programs, preclinical
studies, clinical trials, regulatory submissions, and other matters
that are described in our most recent Annual Report on Form 10-K
and Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission (SEC) and available on the SEC's website at
www.sec.gov, including the risk factors set forth therein.
Investors are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
release, and we undertake no obligation to update any
forward-looking statement in this press release, except as required
by law.
|
Atreca,
Inc. |
Balance Sheets |
(in thousands,
except share and per share data) |
|
|
|
|
|
June
30, |
|
December
31, |
|
|
2023 |
|
|
|
2022 |
|
|
(unaudited) |
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Assets |
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
27,686 |
|
|
$ |
30,819 |
|
Investments |
|
10,849 |
|
|
|
39,676 |
|
Prepaid
expenses and other current assets |
|
3,425 |
|
|
|
7,531 |
|
Total current assets |
|
41,960 |
|
|
|
78,026 |
|
Property and
equipment, net |
|
35,485 |
|
|
|
37,972 |
|
Operating
lease right-of-use assets |
|
35,165 |
|
|
|
36,056 |
|
Deposits and
other |
|
2,459 |
|
|
|
2,976 |
|
Total assets |
$ |
115,069 |
|
|
$ |
155,030 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities |
|
|
|
|
|
|
|
Accounts
payable |
$ |
1,142 |
|
|
$ |
1,741 |
|
Accrued
expenses |
|
5,974 |
|
|
|
9,681 |
|
Operating
lease liabilities, current portion |
|
3,770 |
|
|
|
3,544 |
|
Other
current liabilities |
|
1,121 |
|
|
|
1,327 |
|
Total current liabilities |
|
12,007 |
|
|
|
16,293 |
|
Operating
lease liabilities, net of current portion |
|
58,388 |
|
|
|
60,331 |
|
Total liabilities |
|
70,395 |
|
|
|
76,624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
Class A
common stock |
|
3 |
|
|
|
3 |
|
Class B
common stock |
|
1 |
|
|
|
1 |
|
Additional
paid-in capital |
|
541,788 |
|
|
|
535,592 |
|
Accumulated
other comprehensive income (loss) |
|
2 |
|
|
|
(266 |
) |
Accumulated
deficit |
|
(497,120 |
) |
|
|
(456,924 |
) |
Total stockholders’ equity |
|
44,674 |
|
|
|
78,406 |
|
Total liabilities and stockholders’ equity |
$ |
115,069 |
|
|
$ |
155,030 |
|
|
|
|
|
Atreca,
Inc. |
Statements
of Operations |
(in thousands,
except share and per share data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six month
Months Ended |
|
June 30, |
|
June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
Research and development |
$ |
12,915 |
|
|
$ |
19,953 |
|
|
$ |
26,367 |
|
|
$ |
37,017 |
|
General and administrative |
|
6,835 |
|
|
|
8,077 |
|
|
|
14,914 |
|
|
|
16,683 |
|
Total expenses |
|
19,750 |
|
|
|
28,030 |
|
|
|
41,281 |
|
|
|
53,700 |
|
Interest and other income (expense) |
|
|
|
|
|
|
|
Other income |
|
71 |
|
|
|
- |
|
|
|
163 |
|
|
|
750 |
|
Interest income |
|
493 |
|
|
|
153 |
|
|
|
922 |
|
|
|
197 |
|
Loss before Income tax expense |
|
(19,186 |
) |
|
|
(27,877 |
) |
|
|
(40,196 |
) |
|
|
(52,753 |
) |
Income tax expense |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net loss |
$ |
(19,186 |
) |
|
$ |
(27,877 |
) |
|
$ |
(40,196 |
) |
|
$ |
(52,753 |
) |
Net loss per share, basic and diluted |
$ |
(0.49 |
) |
|
$ |
(0.72 |
) |
|
$ |
(1.03 |
) |
|
$ |
(1.38 |
) |
|
|
|
|
|
|
|
|
Weighted-average shares used in computing net loss
per share, basic and diluted |
|
39,156,584 |
|
|
|
38,591,436 |
|
|
|
39,124,553 |
|
|
|
38,288,831 |
|
|
|
|
|
|
|
|
|
Contacts
Atreca, Inc.Herb CrossChief Financial Officerinfo@atreca.com
Investors:Alex Gray, 650-779-9251agray@atreca.com
Media:Julia Fuller, 858-692-2001julia@fordhutmanmedia.com
Source: Atreca, Inc.
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