Abeona Therapeutics® Reports Third Quarter 2024 Financial Results and Recent Corporate Updates

Rhea-AI Summary

Abeona Therapeutics reported Q3 2024 financial results and corporate updates. The FDA accepted their BLA resubmission for pz-cel in recessive dystrophic epidermolysis bullosa, setting a PDUFA date of April 29, 2025. The company's cash position was $110.0 million as of September 30, 2024. Q3 net loss was $30.3 million, with R&D expenses of $8.9 million and G&A expenses of $6.4 million. CMS granted a product-specific procedure code for pz-cel and assigned it to Pre-MDC MS-DRG 018. The company secured new patents for pz-cel treatment and expanded its Cleveland facility for manufacturing capacity.

Positive

• FDA acceptance of BLA resubmission for pz-cel with PDUFA date set
• Strong cash position of $110.0 million sufficient to fund operations into 2026
• CMS granted favorable Medicare reimbursement classification
• New patent protection for pz-cel extending to 2037
• Manufacturing capacity expansion through new facility lease

Negative

• Net loss increased to $30.3 million in Q3 2024 from $11.8 million in Q3 2023
• R&D expenses increased to $8.9 million from $7.1 million year-over-year
• G&A expenses rose to $6.4 million from $4.2 million year-over-year

Insights

Financial Analyst

The Q3 2024 financial results show mixed signals. While the $110.0 million cash position provides runway into 2026, the increased net loss of $30.3 million (vs $11.8 million in Q3 2023) raises concerns. Operating expenses grew significantly with R&D at $8.9 million and G&A at $6.4 million, reflecting commercial preparation costs.

The FDA's acceptance of the pz-cel BLA resubmission with an April 2025 PDUFA date is crucial. The favorable CMS decisions, including the Pre-MDC MS-DRG 018 assignment and ICD-10-PCS code, suggest strong reimbursement potential. New patent protection until 2037 strengthens the commercial outlook.

Medical Research Analyst

The pz-cel BLA resubmission for RDEB addresses only Chemistry Manufacturing and Controls (CMC) requirements, with no new clinical data needed - a significant positive indicator for potential approval. The expansion of manufacturing facilities in Cleveland demonstrates commitment to commercial readiness.

The strategic focus on high-volume treatment centers and payer engagement suggests a well-planned commercialization strategy. The non-exclusive agreement with Beacon Therapeutics for AAV204 capsid evaluation and Ultragenyx's progress with UX111 for Sanfilippo syndrome indicate pipeline diversification beyond pz-cel.

FDA accepts BLA resubmission of pz-cel in recessive dystrophic epidermolysis bullosa and sets PDUFA target action date of April 29, 2025

Company makes significant progress toward potential commercialization of pz-cel in 2025; Builds momentum with payor discussions and target treatment centers

CLEVELAND, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Abeona Therapeutics Inc. (Nasdaq: ABEO) today reported financial results for the third quarter ended September 30, 2024, and recent corporate updates.

“With the acceptance of our Biologics License Application (BLA) resubmission for pz-cel, we are ramping up our commercial readiness efforts, especially with respect to onboarding potential pz-cel treatment sites and continuing discussions with payors,” said Vish Seshadri, Chief Executive Officer of Abeona.

Third Quarter and Recent Progress

Pz-cel for RDEB

• Abeona completed a Type A meeting in August 2024 where it aligned with the FDA on the content for the resubmission of the Company’s BLA for pz-cel, its investigational first-in-class, autologous cell-based gene therapy currently in development for RDEB, including additional information to satisfy all Chemistry Manufacturing and Controls (CMC) requirements noted in the Complete Response Letter (CRL) issued in April 2024. The CRL required that certain CMC issues be addressed in the BLA resubmission, and did not identify any deficiencies related to the clinical efficacy or clinical safety data in the BLA. The FDA did not request any new clinical trials or clinical data to support the approval of pz-cel.
• Also in August 2024, the Centers for Medicare and Medicaid Services (CMS) granted a product-specific procedure code ICD-10-PCS (International Classification of Diseases, 10th Revision, Procedure Coding System) for pz-cel. Also, as part of the Inpatient Prospective Payment System (IPPS) Final Rule for fiscal year 2025, CMS assigned Medicare reimbursement of pz-cel to Pre-Major Diagnostic Category, Medicare Severity Diagnosis Related Group 018 (Pre-MDC MS-DRG 018), which is among the highest available inpatient hospital reimbursement levels for cell and gene therapies. The favorable Medicare decisions support efficient hospital billing, reimbursement and patient access.
• In October 2024, Abeona resubmitted its BLA for pz-cel to the FDA, seeking approval of pz-cel as a potential new treatment for patients with RDEB.
• Also in October 2024, Abeona entered into a lease agreement for additional facility space in Cleveland, Ohio to enable manufacturing capacity expansion beyond the current planned manufacturing footprint.
• Also in October 2024, the United States Patent and Trademark Office issued a new patent (U.S. Patent No. 12,110,504) (“the ’504 Patent”) and allowed the claims of a second patent (based on U.S. Patent Application No. 16/066,253) that is expected to issue in the coming weeks. Both patents are entitled “Gene Therapy for Recessive Dystrophic Epidermolysis Bullosa Using Genetically Corrected Autologous Keratinocytes,” and include claims that cover the use of pz-cel for the treatment of RDEB. The ’504 Patent has an expiration date of January 3, 2037, subject to any applicable patent term extension.
• In November 2024, the FDA accepted for review the resubmission of Abeona’s pz-cel BLA and set a PDUFA target action date of April 29, 2025.
• In preparation for potential commercialization, Abeona continues to make progress on several key initiatives, including onboarding high-volume epidermolysis bullosa treatment centers in the U.S. for pz-cel treatment, engaging payers to ensure patient access, and educating key stakeholders.
• In preparation for potential pz-cel launch, Abeona has hired and trained personnel to support commercialization, manufacturing, supply chain and quality.

Pipeline and partnered programs

• In July 2024, Abeona announced a non-exclusive agreement with Beacon Therapeutics, under which Beacon Therapeutics will evaluate Abeona’s patented AAV204 capsid for its potential use in AAV gene therapies for select ophthalmology indications.
• In October 2024, Ultragenyx participated in a successful pre-BLA meeting with the FDA during which Ultragenyx aligned on the details of its BLA for partnered program UX111 AAV gene therapy for Sanfilippo syndrome type A (MPS IIIA) that is expected to be filed around the end of 2024.

Third Quarter Financial Results and Cash Runway Guidance

Cash, cash equivalents, short-term investments and restricted cash totaled $110.0 million as of September 30, 2024. As of June 30, 2024, cash, cash equivalents, short-term investments and restricted cash totaled $123.0 million.

Abeona estimates that its current cash and cash equivalents, short-term investments and restricted cash, as well as its credit facility, are sufficient resources to fund operations into 2026, before accounting for any potential revenue from commercial sales of pz-cel, if approved, or proceeds from the sale of a Priority Review Voucher (PRV), if awarded by the FDA.

Research and development expenses for the three months ended September 30, 2024 were $8.9 million, compared to $7.1 million for the same period of 2023. General and administrative expenses were $6.4 million for the three months ended September 30, 2024, compared to $4.2 million for the same period of 2023. The increase in general and administrative expenses is primarily due to commercial and launch preparation costs. Net loss for the third quarter of 2024 was $30.3 million, including a $15.2 million loss resulting from the quarterly remeasurement of the fair value of warrant and derivative liabilities. In the third quarter of 2023, net loss was $11.8 million, including a $1.1 million loss resulting from the quarterly remeasurement of the fair value of warrant liabilities.

Conference Call Details

The Company will host a conference call and webcast on Thursday, November 14, 2024, at 8:30 a.m. ET, to discuss the quarter results. To access the call, dial 877-545-0320 (U.S. toll-free) or 973-528-0002 (international) and Entry Code: 500590 five minutes prior to the start of the call. A live, listen-only webcast and archived replay of the call can be accessed on the Investors & Media section of Abeona’s website at https://investors.abeonatherapeutics.com/events. The archived webcast replay will be available for 30 days following the call.

About Abeona Therapeutics
Abeona Therapeutics Inc. is a clinical-stage biopharmaceutical company developing cell and gene therapies for serious diseases. Prademagene zamikeracel (pz-cel) is Abeona’s investigational autologous, COL7A1 gene-corrected epidermal sheets currently in development for recessive dystrophic epidermolysis bullosa. The Company’s fully integrated cell and gene therapy cGMP manufacturing facility served as the manufacturing site for pz-cel used in its Phase 3 VIITAL™ trial, and is capable of supporting commercial production of pz-cel upon FDA approval. The Company’s development portfolio also features AAV-based gene therapies for ophthalmic diseases with high unmet medical need. Abeona’s novel, next-generation AAV capsids are being evaluated to improve tropism profiles for a variety of devastating diseases. For more information, visit www.abeonatherapeutics.com.

Forward-Looking Statements
This press release contains certain statements that are forward-looking 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, and that involve risks and uncertainties. We have attempted to identify forward-looking statements by such terminology as “may,” “will,” “believe,” “anticipate,” “expect,” “intend,” “potential,” and similar words and expressions (as well as other words or expressions referencing future events, conditions or circumstances), which constitute and are intended to identify forward-looking statements. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, numerous risks and uncertainties, including but not limited to, the timing and outcome of the FDA’s review of our BLA resubmission for pz-cel; the FDA’s grant of a Priority Review Voucher upon pz-cel approval; continued interest in our rare disease portfolio; our ability to enroll patients in clinical trials; the outcome of future meetings with the FDA or other regulatory agencies, including those relating to preclinical programs; the ability to achieve or obtain necessary regulatory approvals; the impact of any changes in the financial markets and global economic conditions; risks associated with data analysis and reporting; and other risks disclosed in the Company’s most recent Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to revise the forward-looking statements or to update them to reflect events or circumstances occurring after the date of this press release, whether as a result of new information, future developments or otherwise, except as required by the federal securities laws.

ABEONA THERAPEUTICS INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations and Comprehensive Loss
($ in thousands, except share and per share amounts)
(Unaudited)

		For the three months ended September 30,								For the nine months ended September 30,
			2024				2023				2024				2023
Revenues:
License and other revenues		$	—			$	—			$	—			$	3,500
Expenses:
Royalties			—				30				—				1,605
Research and development			8,941				7,148				25,366				23,712
General and administrative			6,404				4,156				22,173				13,174
Gain on operating lease right-of-use assets			—				—				—				(1,065	)
Total expenses			15,345				11,334				47,539				37,426
Loss from operations			(15,345	)			(11,334	)			(47,539	)			(33,926	)
Interest income			1,189				593				3,223				1,374
Interest expense			(1,102	)			(105	)			(3,126	)			(309	)
Change in fair value of warrant and derivative liabilities			(15,156	)			(1,101	)			(7,530	)			(7,465	)
Other income			145				111				531				2,729
Net Loss		$	(30,269	)		$	(11,836	)		$	(54,441	)		$	(37,597	)
Basic and diluted loss per common share		$	(0.63	)		$	(0.48	)		$	(1.41	)		$	(1.89	)
Weighted average number of common shares outstanding - basic and diluted			48,081,758				24,797,564				38,504,273				19,942,613
Other comprehensive income (loss):
Change in unrealized gains (losses) related to available-for-sale debt securities			50				(33	)			(18	)			1
Foreign currency translation adjustments			—				29				—				29
Comprehensive loss		$	(30,219	)		$	(11,840	)		$	(54,459	)		$	(37,567	)

ABEONA THERAPEUTICS INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
($ in thousands, except share and per share amounts)
(Unaudited)

	September 30, 2024				December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	15,726			$	14,473
Short-term investments		93,975				37,753
Restricted cash		338				338
Other receivables		1,613				2,444
Prepaid expenses and other current assets		1,005				729
Total current assets		112,657				55,737
Property and equipment, net		4,058				3,533
Operating lease right-of-use assets		3,789				4,455
Other assets		88				277
Total assets	$	120,592			$	64,002
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	2,789			$	1,858
Accrued expenses		5,210				5,985
Current portion of long-term debt		4,444				—
Current portion of operating lease liability		1,057				998
Current portion payable to licensor		4,921				4,580
Other current liabilities		1				1
Total current liabilities		18,422				13,422
Long-term operating lease liabilities		3,402				4,402
Long-term debt		14,206				—
Warrant liabilities		38,789				31,352
Total liabilities		74,819				49,176
Commitments and contingencies
Stockholders' equity:
Preferred stock - $0.01 par value; authorized 2,000,000 shares; No shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively		—				—
Common stock - $0.01 par value; authorized 200,000,000 shares; 43,404,706 and 26,523,878 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively		434				265
Additional paid-in capital		849,388				764,151
Accumulated deficit		(803,965	)			(749,524	)
Accumulated other comprehensive loss		(84	)			(66	)
Total stockholders' equity		45,773				14,826
Total liabilities and stockholders' equity	$	120,592			$	64,002

FAQ

What is the PDUFA date for Abeona's pz-cel BLA?

The FDA set a PDUFA target action date of April 29, 2025, for Abeona's (ABEO) pz-cel BLA.

How much cash does Abeona (ABEO) have as of Q3 2024?

Abeona reported $110.0 million in cash, cash equivalents, short-term investments and restricted cash as of September 30, 2024.

What was Abeona's (ABEO) net loss in Q3 2024?

Abeona reported a net loss of $30.3 million for the third quarter of 2024.

When will Abeona's (ABEO) current cash runway last until?

Abeona estimates its current cash resources are sufficient to fund operations into 2026, before accounting for potential pz-cel revenue or PRV sale proceeds.