Eterna Therapeutics Reports Financial Results for Fourth Quarter and Full Year 2022 and Recent Business Highlights
21 March 2023 - 7:10AM
Eterna Therapeutics Inc. (Nasdaq: ERNA) (“Eterna” or the
“Company”), a life science company committed to realizing the
potential of mRNA cell engineering to provide patients with
transformational new medicines, today announced financial results
for the quarter and year ended December 31, 2022 and provided a
business update.
“2022 was a transformational year for Eterna, and we believe
that we made significant progress executing on our core strategy of
unlocking the potential of mRNA cell engineering through strategic
collaboration,” said Matt Angel, Ph.D., Chief Executive Officer of
Eterna. “We remained focused on expanding our capabilities to
support the development of next-generation mRNA-based therapeutic
products, and deploying our extensive portfolio of in-licensed mRNA
cell engineering patents through strategic partnerships. We believe
that our accomplishments have positioned us to drive value for
shareholders, partners, and patients, and for continued growth
across our business.”
Significant milestones in 2022 and year-to-date 2023
include:
- In February
2023, Eterna entered into an income generating, exclusive cell line
customization and license agreement with Lineage Cell Therapeutics,
Inc. (“Lineage”) under which Eterna has agreed to develop novel
gene-edited pluripotent stem cell (iPSC) lines, which Lineage may
evaluate for development into cell transplant therapies for the
treatment of certain central nervous system (CNS) disorders and
other neurology indications. Eterna is the exclusive licensee of
the key intellectual property underlying this partnership. This is
Eterna’s first income generating agreement, leveraging its
extensive patent portfolio in-licensed from its partner, Factor
Bioscience Limited (“Factor”).
- In January
2023, Eterna appointed Matt Angel, Ph.D. as CEO and President of
Eterna. Dr. Angel had previously served as Interim CEO and
President of Eterna since May 2022, and he has continued to serve
on the Company's Board of Directors.
- In November
2022, Eterna entered into an amended license agreement with Factor
under which Eterna obtained expanded rights to sublicense Factor’s
entire portfolio of more than 100 patents related to mRNA-based
cell engineering technologies to third parties.
- In October
2022, Eterna entered into a sublease agreement with Bristol Myers
Squibb (“BMS”) for the entire top floor (approximately 45,000
square feet) of 250 Water Street, a new approximately 450,000
square feet building located at the new Cambridge Crossing
development in the heart of the greater Boston biotech community.
BMS has agreed to provide $8.6 million for Eterna to build out the
space into a state-of-the-art lab and office.
- In October
2022, the Company completed its name change from Brooklyn
ImmunoTherapeutics, Inc. to Eterna Therapeutics Inc. to reflect the
Company’s focus on deploying its extensively patented in-licensed
mRNA cell engineering technologies.
- In September
2022, Eterna entered into a Master Services Agreement (“MSA”) and
first work order under the MSA with Factor, giving Eterna access to
Factor’s research laboratory facilities, scientific equipment,
training in mRNA, iPSC and gene-editing technology, protocols
related to the development of mRNA cell engineering products, and
in vitro transcription templates, mRNA constructs, and iPS
cells.
- In August
2022, Eterna entered into a sponsored research agreement with
Michael Andreeff, M.D., Ph.D., Professor of Leukemia at The
University of Texas MD Anderson Cancer Center. Under the agreement,
Dr. Andreeff will evaluate the capacity of Eterna’s gene-edited
iPSC-derived therapeutic candidates to stimulate enhanced immune
responses, including their effects on various aspects of T-cell
mediated immunity, and to promote multilineage differentiation and
hematopoietic regeneration in vivo.
- In March and
December 2022, Eterna announced the completion of two private
placements yielding combined gross proceeds of approximately $20
million.
Fourth Quarter and Full Year 2022 Financial
Results
Research and development expenses were $2.0 million for the
fourth quarter of 2022, which included $0.2 million of non-cash
stock-based compensation expense. For the full year of 2022,
research and development expenses were $10.4 million, which
included $1.2 million of non-cash stock-based compensation expense.
General and administrative expenses were $2.8 million for the
fourth quarter of 2022, which included $0.2 million of non-cash
stock-based compensation expense. For the full year of 2022,
general and administrative expenses were $16.8 million, which
included $1.7 million of non-cash stock-based compensation expense.
The impairment of in-process research and development was
approximately $6.0 million for the full year of 2022 and related to
the Company’s decision to not further develop the IRX-2 product
candidate associated with its legacy immunotherapy business. There
was no such charge in the fourth quarter of 2022. The change in the
fair value of warrant liabilities was a credit of $0.3 million for
the fourth quarter of 2022 and a credit of $10.8 million for the
full year of 2022.
Net loss for the fourth quarter of 2022 was $4.5 million, or
$1.24 per share. For the full year of 2022, net loss was $24.6
million, or $8.06 per share. As of December 31, 2022, Eterna had
cash of approximately $15.5 million, of which approximately $4.1
million was restricted cash, collateralizing a letter of credit
with respect to our BMS sublease.
Earlier today, Eterna filed its Annual Report on Form 10-K for
the year ended December 31, 2022 with the Securities and Exchange
Commission.
About Eterna Therapeutics Inc.Eterna
Therapeutics is a life science company committed to realizing the
potential of mRNA cell engineering to provide patients with
transformational new medicines. Eterna has in-licensed a portfolio
of over 100 patents covering key mRNA cell engineering
technologies, including technologies for mRNA cell reprogramming,
mRNA gene editing, the NoveSlice™ and UltraSlice™ gene-editing
proteins, and the ToRNAdo™ mRNA delivery system from Factor
Bioscience. NoveSlice™, UltraSlice™, and ToRNAdo™ are trademarks of
Factor Bioscience. For more information, please
visit www.eternatx.com.
Forward-Looking StatementsThis press release
contains 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, which are intended
to be covered by the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are any statements that are not statements of historical
fact and may be identified by terminology such as “believe,”
“could,” “estimate,” “anticipate,” “expect,” “plan,” “possible,”
“potential,” “project,” “will” or other similar words and the
negatives of such words. Forward-looking statements are based on
current beliefs and assumptions that are subject to risks and
uncertainties and are not guarantees of future performance. Actual
results could differ materially from those stated or implied in any
forward-looking statement as a result of various factors,
including, but not limited to, uncertainties related to: (i) the
evolution of Eterna’s business model into a platform company
focused on mRNA, iPS cell and gene editing technologies; (ii)
Eterna’s ability to successfully, cost-effectively and efficiently
develop its technology and products; (iii) Eterna’s ability to
successfully commence clinical trials of any products on a timely
basis or at all; (iv) Eterna’s ability to successfully fund and
manage the growth of its development activities; and (v) Eterna ’s
ability to obtain regulatory approvals of its products for
commercialization. You should not rely upon forward-looking
statements as predictions of future events. The forward-looking
statements made in this communication speak only as of the date on
which they were made, and Eterna does not undertake any obligation
to update the forward-looking statements contained herein to
reflect events that occur or circumstances that exist after the
date hereof, except as required by applicable law. Factors that may
cause Eterna’s actual results to differ from those expressed or
implied in forward-looking statements contained in this press
release are more fully disclosed in Eterna’s periodic public
filings with the U.S. Securities and Exchange Commission,
particularly under the heading “Risk Factors” in Eterna’s Annual
Report on Form 10-K for the year ended December 31, 2022, as well
as under similar headings in Eterna’s subsequently filed Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K.
Investor Relations
Contact:investors@eternatx.com
Media Contact:EternaPR@westwicke.com
Selected Financial Data
(in thousands, except per share data)
STATEMENTS OF
OPERATIONS |
|
|
|
|
|
|
|
|
|
Three months ended December 31, |
|
Year ended December 31, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
(unaudited) |
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Research and development |
$ |
1,962 |
|
|
$ |
4,249 |
|
|
$ |
10,392 |
|
|
$ |
12,705 |
|
Impairment
of in-process research and development |
|
- |
|
|
|
- |
|
|
|
5,990 |
|
|
|
- |
|
In-process
research and development |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
80,538 |
|
General and
administrative |
|
2,775 |
|
|
|
4,273 |
|
|
|
16,835 |
|
|
|
14,724 |
|
Transaction
costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5,765 |
|
Total operating expenses |
|
4,737 |
|
|
|
8,522 |
|
|
|
33,217 |
|
|
|
113,732 |
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
(4,737 |
) |
|
|
(8,522 |
) |
|
|
(33,217 |
) |
|
|
(113,732 |
) |
|
|
|
|
|
|
|
|
Other income
(expenses): |
|
|
|
|
|
|
|
Loss on sale
of NTN assets |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(9,648 |
) |
Change in
fair value of warrant liabilities |
|
302 |
|
|
|
- |
|
|
|
10,795 |
|
|
|
- |
|
Loss on
non-controlling investment |
|
(9 |
) |
|
|
- |
|
|
|
(941 |
) |
|
|
- |
|
Other
(expense) income, net |
|
(5 |
) |
|
|
634 |
|
|
|
(1,171 |
) |
|
|
899 |
|
Total other income (expenses), net |
|
288 |
|
|
|
634 |
|
|
|
8,683 |
|
|
|
(8,749 |
) |
|
|
|
|
|
|
|
|
Loss before
income taxes |
|
(4,449 |
) |
|
|
(7,888 |
) |
|
|
(24,534 |
) |
|
|
(122,481 |
) |
Provision
for income taxes |
|
(40 |
) |
|
|
(64 |
) |
|
|
(45 |
) |
|
|
(64 |
) |
|
|
|
|
|
|
|
|
Net
loss |
|
(4,489 |
) |
|
|
(7,952 |
) |
|
|
(24,579 |
) |
|
|
(122,545 |
) |
|
|
|
|
|
|
|
|
Series A
preferred stock dividend |
|
(8 |
) |
|
|
(8 |
) |
|
|
(16 |
) |
|
|
(16 |
) |
|
|
|
|
|
|
|
|
Net loss
attributable to common stockholders |
$ |
(4,497 |
) |
|
$ |
(7,960 |
) |
|
$ |
(24,595 |
) |
|
$ |
(122,561 |
) |
|
|
|
|
|
|
|
|
Net loss per
common share - basic and diluted |
$ |
(1.24 |
) |
|
$ |
(3.06 |
) |
|
$ |
(8.06 |
) |
|
$ |
(56.61 |
) |
|
|
|
|
|
|
|
|
Weighted
average shares outstanding - basic and diluted |
|
3,631 |
|
|
|
2,602 |
|
|
|
3,051 |
|
|
|
2,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED
BALANCE SHEET
DATA |
|
|
|
|
|
|
|
|
|
As of December 31, 2022 |
|
As of December 31, 2021 |
|
|
|
|
Cash |
$ |
11,446 |
|
|
$ |
16,985 |
|
|
|
|
|
Restricted
cash |
|
4,095 |
|
|
|
- |
|
|
|
|
|
Total
assets |
|
22,279 |
|
|
|
31,525 |
|
|
|
|
|
Total
liabilities |
|
10,172 |
|
|
|
6,022 |
|
|
|
|
|
Total
stockholders' equity |
|
12,107 |
|
|
|
25,503 |
|
|
|
|
|
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