Agenus Provides R&D Update & Second Quarter Financial Report

Rhea-AI Summary

Agenus Inc. (NASDAQ: AGEN) released its second quarter 2020 financial results, reporting a net loss of $48 million ($0.28 per share) compared to a loss of $52 million ($0.38 per share) in the same period last year. The company ended Q2 with a cash balance of $79 million, up from $62 million at the end of 2019. Agenus announced advancements in its clinical pipeline, including the initiation of the balstilimab BLA filing and promising results from its combo trials. For the first half of 2020, total revenue reached $42 million, down from $96 million in 2019.

Positive

• Balstilimab BLA filing to commence in Q3 2020.
• Successful combination trials, including AGEN1181 achieving complete responses.
• Partnership with Betta Pharmaceuticals includes $15M upfront, $20M equity investment, and $100M in milestones.

Negative

• Net loss increased to $48 million compared to $52 million YoY.
• Significant revenue decline from $96 million in H1 2019 to $42 million in H1 2020.

LEXINGTON, Mass., Aug. 6, 2020 /PRNewswire/ -- Agenus Inc. (NASDAQ: AGEN), an immuno-oncology company with an extensive pipeline of checkpoint antibodies, cell therapy, adjuvants, and vaccines designed to activate immune response to cancers and infections, today provided an R&D and business update and reported financial results for the second quarter of 2020.

• Balstilimab BLA filing to be initiated in current quarter
• Balstilimab granted FTD and eligible for priority review
• Combo trial with zali completes accrual & required follow-up; BLA planning underway
• Zalifrelimab actives responses in PD-1 refractory tumors (1CR, 3PRs)
• Ph2 expansion trial in angiosarcoma underway; additional cancers to follow
• AGEN1181 combo w bali achieves CR with both primary and metastatic tumors confirmed by PET scan
• Updated Ph1 achieves a total of 2 CRs & clinical benefit (CR/PR/SD) in ~65% patients
• Expansion cohorts in NSCLC, MSS tumors, melanoma, and RCC launched
• AGEN2373 achieves durable SD in ovarian, lung, sarcoma
• No liver toxicity observed
• AGEN2373 advancing to combo with balstilimab
• Production of QS-21 from a renewable source achieved and equivalence to QS-21 Saponin demonstrated
• High-yield process development underway
• Bioequivalence to first-generation demonstrated
• Enhanced antibody responses achieved in SARS-CoV-2 models
• Completed partnership with Betta Pharmaceuticals; $15M upfront, $20M equity investment, $100M in milestones & royalties
• Rights to balstilimab and zalifrelimab for Greater China
• Clinical development in major cancers being planned

First Quarter Financial Results
We ended the second quarter of 2020 with a cash balance of $79 million as compared to $62 million at December 31, 2019. Subsequent to the quarter end we received $35 million related to our Betta partnership.  With this and other anticipated cash inflows, based on our current plans and projections our cash position will be sufficient to support our operations into the third quarter of 2021.

For the second quarter ended June 30, 2020, our cash used in operations was $37 million and we reported a net loss of $48 million or $0.28 per share.  This compares to cash used in operations for the same period in 2019 of $36 million and a net loss of $52 million or $0.38 per share. 

Our cash used in operations for the six months ended June 30, 2020 was $72 million with a net loss of $94 million or $0.59 per share compared to cash provided by operations of $41 million and a net loss for the same period in 2019 of $34 million or $0.24 per share.

For the six-month period ended June 30, 2020, we recognized revenue of $42 million which includes revenue related to the upfront license fee from our transaction with Betta in addition to non-cash royalties earned.  For the same period in 2019 we recorded revenue of $96 million which includes revenue related to the upfront license fee from our transaction with Gilead in addition to non-cash royalties earned.

Select Financial Information
(in thousands, except per share data)
(unaudited)
					June 30, 2020		December 31, 2019
Cash and cash equivalents					$       79,171		$               61,808
					Three months ended June 30,				Six months ended June 30,
					2020		2019		2020		2019
Revenues, research and development					$       18,068		$                 4,399		$  19,996		$  75,271
Revenues, non-cash royalty					7,846		9,263		21,002		17,869
Revenues, other					1,031		2,053		1,075		2,468
Total Revenue					26,945		15,715		42,073		95,608
Research and development expenses					38,550		45,243		74,913		85,374
General and administrative expenses					14,195		11,405		24,809		22,211
Cost of service revenue					634		-		634		-
Other expense (income)					623		540		1,865		(115)
Non-cash interest expense					14,347		10,181		28,191		19,609
Loss on modification of debt					-		-		2,720		-
Non-cash contingent consideration fair value adjustment					6,840		213		2,456		2,961
Net loss					$      (48,244)		$              (51,867)		$ (93,515)		$ (34,432)
Net loss per share attributable to Agenus Inc. common stockholders					$         (0.28)		$                  (0.38)		$    (0.59)		$    (0.24)
Cash (used in) provided by operations					$      (37,375)		$              (35,704)		$ (71,880)		$  40,883

Call Access

To access the live call, dial 1-844-492-3727 (U.S.) or 1-412-317-5118 (International) and ask to be joined into the Agenus call. The call will also be webcast and will be accessible from the Company's website at http://investor.agenusbio.com/presentation-webcasts or via https://www.webcaster4.com/Webcast/Page/1556/35715. A replay will be available approximately two hours after the call and will remain available until November 7, 2020.

About Agenus
Agenus is a clinical-stage immuno-oncology company focused on the discovery and development of therapies that engage the body's immune system to fight cancer. The Company's vision is to expand the patient populations benefiting from cancer immunotherapy by pursuing combination approaches that leverage a broad repertoire of antibody therapeutics, adoptive cell therapies (through its AgenTus Therapeutics subsidiary), and proprietary cancer vaccine platforms. The Company is equipped with a suite of antibody discovery platforms and a state-of-the-art GMP manufacturing facility with the capacity to support clinical programs. Agenus is headquartered in Lexington, MA. For more information, please visit www.agenusbio.com and our Twitter handle @agenus_bio. Information that may be important to investors will be routinely posted on our website and twitter.

Forward-Looking Statements
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the federal securities laws, including statements regarding clinical development and regulatory plans and timelines and anticipated corporate milestones. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, among others, the factors described under the Risk Factors section of our most recent Quarterly Report on Form 10-Q or Annual Report on Form 10-K filed with the Securities and Exchange Commission. Agenus cautions investors not to place considerable reliance on the forward-looking statements contained in this release. These statements speak only as of the date of this press release, and Agenus undertakes no obligation to update or revise the statements, other than to the extent required by law. All forward-looking statements are expressly qualified in their entirety by this cautionary statement.

Investor Contact:

Jennifer S. Buell, PhD
781-674-4420
Jennifer.Buell@agenusbio.com  

 

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SOURCE Agenus Inc.

FAQ

What were the financial results of Agenus for Q2 2020?

Agenus reported a net loss of $48 million for Q2 2020, with total revenues of $26.9 million.

What is the current cash position of Agenus?

Agenus ended Q2 2020 with a cash balance of $79 million.

What key developments were announced by Agenus for its clinical pipeline?

Agenus announced the initiation of the balstilimab BLA filing and successful results in combination therapies.

What revenue did Agenus generate in the first half of 2020?

Agenus generated total revenue of $42 million in the first half of 2020.