Ambrx Biopharma Inc. Reports Full Year 2021 Financial Results; Provides Corporate Update

Rhea-AI Summary

Ambrx Biopharma Inc. (NYSE: AMAM) reported a net loss of $68.1 million for the full year ended December 31, 2021, up from $16.5 million in 2020. Revenue decreased to $7.5 million, down from $13.7 million the previous year, primarily due to reduced R&D and licensing revenue. R&D expenses surged to $54.8 million due to increased clinical trial costs, while G&A expenses rose to $17.1 million owing to IPO preparations. Notable advancements include ARX788's participation in I-SPY 2.2 trials and the acceptance of IND for ARX305 by the FDA, with several clinical trials anticipated in 2022.

Positive

• ARX788 included in Quantum Leap’s I-SPY 2.2 Phase 2 Clinical Trial for HER2-positive breast cancer.
• FDA acceptance of IND for ARX305 for solid and hematological tumors.
• Positive data on ARX788 for HER2-positive metastatic breast cancer presented at SABCS.

Negative

• Net loss increased to $68.1 million in 2021 from $16.5 million in 2020.
• Revenue decreased to $7.5 million, down from $13.7 million in 2020.
• R&D expenses rose to $54.8 million, significantly impacting financials.

SAN DIEGO--(BUSINESS WIRE)-- Ambrx Biopharma Inc., or Ambrx, (NYSE: AMAM), a clinical stage biopharmaceutical company using an expanded genetic code technology platform to create Engineered Precision Biologics, today provided a corporate update and reported financial results for the full year ended December 31, 2021.

“We have made great progress in advancing our engineered precision biologics and clinical pipeline in recent months. We continue to transition preclinical candidates into the clinic and anticipate submitting another IND to the U.S. FDA in 2022. Ambrx has several potential key milestones coming up in the mid-year and into the second half of this year including initiating two clinical trials of ARX788 for Her2+ breast cancer in the neoadjuvant setting, a single agent and a combination trial with an anti-PD-1 agent, and a clinical trial of ARX305 in renal cell carcinoma (RCC) and other cancers,” commented Feng Tian, Ph.D., Chairman of the Board, President and CEO of Ambrx. “Ambrx has truly positioned itself as a leader in the antibody drug conjugate and precision biologics space, working together with our partners, demonstrating promising data from its ongoing trials. I look forward to furthering our clinical development throughout 2022, bringing value to stakeholders and patients alike.”

2H 2021 and Subsequent Clinical Highlights

• ARX788 Included in Quantum Leap’s I-SPY 2.2 Phase 2 Clinical Trial in Breast Cancer. In April 2022, Ambrx announced the inclusion of ARX788 in Quantum Leap Healthcare Collaborative’s I-SPY 2.2 Phase 2 clinical trials in patients with HER2-positive breast cancer. ARX788 will be evaluated as a monotherapy and in combination with cemiplimab, in HER2-positive early-stage breast cancer in the neoadjuvant setting.

• Acceptance of an Investigational New Drug Application (IND) for ARX305 to the U.S. Food and Drug Administration (FDA). In February 2022, Ambrx announced that the FDA had accepted the company’s IND for ARX305 for the treatment of solid and hematological tumors and provided a “Study May Proceed” letter. The acceptance allows Ambrx to prepare a first in human, Phase 1 clinical trial of ARX305.

• Positive Data on ARX788 for the Treatment of HER2+ Metastatic Breast Cancer Presented at SABCS. In December 2021, Ambrx presented positive data from the ACE-Breast-01 Phase 1 clinical trial of ARX788 for the treatment of HER+ positive metastatic breast cancer in patients whose disease is resistant/refractory to HER2 targeted agents including trastuzumab, ADCs, TKIs (tyrosine kinase inhibitors) and bispecific antibodies. At 1.5 mg/kg every three weeks, ARX788 demonstrated robust treatment effect with a disease control rate of 100% in 29 evaluable patients.

• First Patient Dosed in Phase 2 ACE-Breast-03 Clinical Trial of ARX788. In November 2021, the company announced that the first patient had been dosed in its global ACE-Breast-03 Phase 2 clinical trial of ARX788 in patients with HER2+ metastatic breast cancer. The Phase 2 trial will measure the objective response rate in patients whose HER2+ metastatic breast cancer is resistant or refractory to T-DM1, and/or T-DXd, and/or tucatinib-containing regiments.

• Positive Data on ARX788 for the Treatment of HER2+ Gastric Cancer Presented at CSCO. In October 2021, NovoCodex Pharmaceuticals Ltd., Ambrx’s partner in China, presented positive interim data from the ACE-Gastric-01 Phase 1 clinical trial of ARX788 for the treatment of HER2+ metastatic gastric / gastroesophageal junction (GEJ) cancer.

• First Patient Dosed in a Phase 1 Trial for ARX517. In August 2021, Ambrx announced that the first patient had been dosed in a Phase 1, multicenter, dose-escalation, and dose expansion trial to evaluate the safety, pharmacokinetics, and anti-tumor activity of ARX517, an ADC being developed to treat subjects with prostate specific membrane antigen (PSMA) expressing tumors.

2H 2021 and Subsequent Corporate Highlights

• Strengthened Board of Directors. In February 2022, Ambrx appointed Paul Maier to its Board of Directors and as Chair of the Audit Committee. Mr. Maier joins Ambrx’s Board with more than 25 years in senior operational, international and financial management experience in rapid growth biotechnology companies.

Anticipated Near-Term Milestones

• Topline Phase 3 data in ACE-Breast-02 by the end of 2022

• Additional Phase 1 data in ACE-Pan Tumor-01 in 2H 2022

• Interim Phase 1 safety data in ARX517 for PSMA in 2H 2022

• Initiate Phase 1 trial in ARX305 for RCC and other cancers in 2H 2022

• Submit IND to FDA for ARX102 in 2H 2022

Financial Highlights

• Cash and Cash Equivalents: Cash and cash equivalents were $170.1 million as of December 31, 2021, compared to $167.2 million for the first half ended June 30, 2021.

• Revenue: Revenue was $2.4 million and $7.5 million for the six months and full year ended December 31, 2021, respectively, as compared to $7.2 million and $13.7 million for the six months and full year ended December 31, 2020, respectively. The decrease was primarily driven by less revenue recognized in connection with our R&D and license agreements including a cumulative catch-up adjustment, partially offset by increased third party reimbursable charges.

• Research and development (R&D) expenses: R&D expenses were $32.7 million and $54.8 million for the six months and full year ended December 31, 2021, respectively, as compared to $10.5 million and $20.4 million for the six months and full year ended December 31, 2020, respectively. The increase year over year of $34.4 million was mainly due to increased costs related to clinical trial program spend primarily driven by our ARX788 clinical trials and related manufacturing and outside services costs as well as personnel related costs including stock-based compensation expense.

• General and administrative (G&A) expenses: G&A expenses were $8.7 million and $17.1 million for the six months and full year ended December 31, 2021, respectively, as compared to $3.8 million and $6.4 million for the six months and full year ended December 31, 2020, respectively. The increase year over year of $10.7 million was mainly attributable to professional services and fees in connection with preparing for Ambrx’s IPO and operating as a public company, expenses associated with the corporate structure reorganization, and personnel related costs including stock-based compensation expense.

• Other expenses: Other expense, net, for the six months and full year ended December 31, 2021 was zero and $3.9 million, respectively, as compared to $4.7 million for the six months and full year ended December 31, 2020.

• Net loss: Net loss for the six months and full year ended December 31, 2021 was $39.1 million and $68.1 million, respectively, as compared to $11.1 million and $16.5 million for the six months and full year ended December 31, 2020, respectively.

About Ambrx Biopharma Inc. (Ambrx)

Ambrx is a clinical stage biopharmaceutical company using an expanded genetic code technology platform to discover and develop Engineered Precision Biologics. These include next generation antibody drug conjugates (ADCs), bispecifics, targeted immuno-oncology therapies, novel cytokines to modulate the immune system, and long-acting therapeutic peptides for metabolic and cardiovascular disease. Ambrx is advancing a robust portfolio of clinical and preclinical programs designed to optimize efficacy, safety and ease of use, in multiple therapeutic areas, including its lead product candidate ARX788. In addition, Ambrx has clinical collaborations with multiple partners, for drug candidates generated using Ambrx technology. For more information, please visit www.ambrx.com.

Forward-Looking Statements

This press release includes certain “forward-looking statements” intended to qualify for the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements may be identified by the words “anticipate,” believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “may,” “will,” “could,” “should,” “seek,” “potential” and similar expressions, and include, without limitation, express or implied statements regarding Ambrx’s beliefs and expectations regarding the advancement and potential benefits of its product candidates, clinical development and strategic plans, and the timing of program updates and milestones related to its product candidates. Forward-looking statements are based on Ambrx’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Factors that could cause actual results to differ include, but are not limited to, those risks and uncertainties associated with: the continuing impact of the COVID-19 pandemic and other public health-related risks and events on Ambrx’s business, operations, strategy, goals and anticipated milestones; Ambrx’s ability to execute on its strategy including with respect to the timing of its R&D efforts, initiation of clinical trials and other anticipated milestones; risks associated with development of novel therapeutics, including potential delays in clinical trials and regulatory submissions and the fact that future clinical trial results may not be consistent with preliminary results or results from prior preclinical studies or clinical trials; Ambrx’s ability to fund operations as anticipated; and the additional risks and uncertainties set forth more fully under the caption “Risk Factors” in Ambrx’s Annual Report on Form 20-F filed with the United States Securities and Exchange Commission (SEC) on April 26, 2022, and elsewhere in Ambrx’s filings and reports with the SEC. Forward-looking statements contained in this press release are made as of this date, and Ambrx undertakes no duty to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law.

AMBRX BIOPHARMA INC
Consolidated Statements of Operations and Comprehensive Loss
(In thousands, except share and per share data)
	For the Year Ended December 31,
	2021				2020				2019
Revenues	$	7,455			$	13,671			$	10,311
Operating expenses:
Research and development		54,808				20,433				26,383
General and administrative		17,071				6,353				6,400
Total operating expenses		71,879				26,786				32,783
Loss from operations		(64,424	)			(13,115	)			(22,472	)
Other (expense) income, net:
Interest income		-				27				195
Other income (expense), net		40				(4,750	)			(38	)
Change in fair value of redeemable noncontrolling interests		(3,903	)			—				—
Total other (expense) income, net		(3,863	)			(4,723	)			157
Loss before (provision for) benefit from income taxes		(68,287	)			(17,838	)			(22,315	)
(Provision for) benefit from income taxes		(1	)			(1	)			2
Net loss		(68,288	)			(17,839	)			(22,313	)
Less: net loss attributable to the redeemable noncontrolling interests		209				1,296				2,251
Net loss attributable to Ambrx Biopharma Inc. shareholders	$	(68,079	)		$	(16,543	)		$	(20,062	)
Net loss per share attributable to Ambrx Biopharma Inc. ordinary shareholders - basic
and diluted	$	(0.48	)		$	(0.14	)		$	(0.15	)
Weighted-average ordinary shares used to compute net loss per share attributable to
ordinary shareholders basic and diluted		143,175,224				115,677,467				136,103,550
Other comprehensive loss, net of tax:
Net loss	$	(68,288	)		$	(17,839	)		$	(22,313	)
Foreign currency translation adjustment		(18	)			177				(41	)
Comprehensive loss		(68,306	)			(17,662	)			(22,354	)
Less: comprehensive loss attributable to the redeemable noncontrolling interests		208				1,276				2,257
Comprehensive loss attributable to Ambrx Biopharma Inc.	$	(68,098	)		$	(16,386	)		$	(20,097	)

AMBRX BIOPHARMA INC.
Consolidated Balance Sheets
(In thousands, except share and per share data)
	December 31,				December 31,
	2021				2020
Assets
Current assets:
Cash and cash equivalents	$	170,064			$	90,462
Restricted cash		842				816
Accounts receivable, net		1,239				428
Prepaid expenses and other current assets		4,661				1,371
Total current assets		176,806				93,077
Property and equipment, net		2,984				850
Right-of-use assets, net		12,737				2,641
Intangible assets, net		35,962				36,829
Other long-term assets		530				624
Total assets	$	229,019			$	134,021
Liabilities, Redeemable Noncontrolling Interests, Convertible Preferred
Shares and Shareholders' Equity (Deficit)
Current liabilities:
Accounts payable	$	5,272			$	2,820
Accrued liabilities		14,125				2,375
Operating lease liabilities, current portion		915				1,595
Deferred revenue, current portion		4,267				6,470
Total current liabilities		24,579				13,260
Operating lease liabilities, net of current portion		12,212				1,598
Accrued liabilities, net of current portion		—				138
Deferred tax liabilities		880				880
Deferred revenue, net of current portion		1,381				3,261
Total liabilities		39,052				19,137
Redeemable noncontrolling interests		—				1,287
Convertible preferred shares, $0.0001 par value; no share authorized at December 31, 2021;
217,575,009 shares authorized at December 31, 2020
Series A convertible preferred shares, no shares designated at December 31, 2021; 160,000,000
shares designated at December 31, 2020; no shares and 135,936,550 shares outstanding at
December 31, 2021 and December 31, 2020, respectively. $0 and $176,396 liquidation preference
at December 31, 2021 and December 31, 2020, respectively		—				157,689
Series B convertible preferred shares, no shares designated at December 31, 2021; 57,575,009
shares designated at December 31, 2020; no shares and 57,575,008 shares outstanding at
December 31, 2021 and December 31, 2020, respectively. $0 and $100,000 liquidation preference
at December 31, 2021 and December 31, 2020, respectively		—				95,342
Shareholders' Equity (Deficit):
Ordinary Shares, par value $0.0001 500,000,000 and 282,424,991 shares authorized at December 31,
2021 and December 31, 2020, respectively; 270,120,548 and 170,000 shares issued and outstanding
at December 31, 2021 and December 31, 2020, respectively		27				—
Additional paid-in capital		404,362				6,805
Accumulated other comprehensive loss		(790	)			(686	)
Accumulated deficit		(213,632	)			(145,553	)
Total shareholders' equity (deficit)		189,967				(139,434	)
Total liabilities, redeemable noncontrolling interests, convertible preferred
shares and shareholders' equity (deficit)	$	229,019			$	134,021

 

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INVESTORS

Laurence Watts

Managing Director

Gilmartin Group, LLC.

619-916-7620

ir@ambrx.com

MEDIA

media@ambrx.com

Source: Ambrx, Inc.

FAQ

What were Ambrx's financial results for 2021?

Ambrx reported a net loss of $68.1 million and revenue of $7.5 million for the year ended December 31, 2021.

What clinical trials is Ambrx planning for 2022?

Ambrx plans to initiate clinical trials for ARX788 and ARX305 in 2022, alongside submitting another IND to the FDA.

How did Ambrx's R&D expenses change in 2021?

R&D expenses increased to $54.8 million in 2021, primarily due to costs associated with clinical trials.

What key milestones has Ambrx achieved recently?

Ambrx's ARX788 was included in an important clinical trial and received FDA IND acceptance for ARX305.