Angion Provides Corporate Update and Reports Second Quarter 2022 Financial Results

Rhea-AI Summary

Angion Biomedica Corp (NASDAQ:ANGN) reported its Q2 2022 financial results on August 15, 2022, highlighting significant company developments. Following a reassessment of the ANG-3070 trial, Angion discontinued the JUNIPER Phase 2 trial for kidney diseases, prioritizing patient safety. The company is exploring strategic options with the aid of Oppenheimer & Co. to enhance shareholder value, which may involve mergers, asset sales, or other transactions. Financially, Angion holds $63.4 million in cash and expects to fund operations for at least 12 months. Net loss decreased to $9.1 million from $17.1 million year-over-year.

Positive

• Cash and cash equivalents of $63.4 million sufficient to fund operations for at least 12 months.
• Net loss reduced to $9.1 million from $17.1 million in Q2 2021.

Negative

• Discontinuation of ANG-3070 development for all indications.
• Phase 2 JUNIPER trial was halted due to safety concerns.

UNIONDALE, N.Y. , Aug. 15, 2022 (GLOBE NEWSWIRE) -- Angion Biomedica Corp (NASDAQ:ANGN), a biopharmaceutical company that has focused on the discovery, development, and commercialization of novel small molecule therapeutics to address fibrotic diseases, today provided a corporate update and reported its financial results for the quarter ended June 30, 2022.

On June 29, 2022, Angion announced discontinuation of JUNIPER, its Phase 2 dose-finding trial of ANG-3070 in patients with primary proteinuric kidney diseases, specifically focal segmental glomerulosclerosis (FSGS) and immunoglobulin A nephropathy (IgAN). This trial, which began enrolling patients in December 2021, was discontinued in the interest of patient safety based upon a reassessment of the risk/benefit profile of ANG-3070 in patients with established serious kidney disease.

On July 25, 2022, Angion announced the commencement of a process to explore and evaluate strategic options to enhance and preserve shareholder value and the engagement of Oppenheimer & Co., Inc. as the company’s strategic advisor to assist in this process. Potential strategic options to be explored or evaluated as part of this process may include, but are not limited to, merger, reverse merger, other business combination, sale of assets, licensing, or other strategic transactions involving Angion. There can be no assurance the exploration of strategic alternatives will result in any agreements or transactions, or, if completed, any agreements or transactions will be successful or on attractive terms. Angion has discontinued development of ANG-3070 for all indications and discontinued most other development activities pending conclusion of this process.

“The strategic options process is under way and we are taking the steps we deem appropriate to preserve cash resources,” stated Dr. Jay Venkatesan, Angion’s President and Chief Executive Officer. “As we noted in our press release on July 25, we do not expect to disclose developments with respect to this process unless and until the process has been completed or a disclosure is otherwise deemed necessary or legally required.”

Second Quarter 2022 Financial Results

As of June 30, 2022, Angion had cash and cash equivalents totaling $63.4 million. Angion expects current cash resources to be sufficient to fund projected operating requirements for at least 12 months following the issuance date of its condensed consolidated financial statements.

Contract revenue for the quarter ended June 30, 2022 was $0.7 million compared with $0.5 million in the second quarter of 2021.

Research and development expenses for the quarter ended June 30, 2022 were $6.1 million compared with $14.4 million in the second quarter of 2021.

General and administrative expenses for the quarter ended June 30, 2022 were $3.6 million compared with $4.3 million in the second quarter of 2021.

Other income (expense) for the quarter ended June 30, 2022 was $(0.1) million compared with $1.2 million in the second quarter of 2021.

Net loss for the quarter ended June 30, 2022 was $9.1 million, or $0.30 per share, compared with $17.1 million, or $0.58 per share, in the second quarter of 2021.

About Angion
Angion has focused on the discovery, development, and commercialization of novel small molecule therapeutics to address fibrotic diseases. For more information, please visit angion.com.

Forward Looking Statements
Statements contained in this press release regarding matters that may occur in the future are “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to statements in this press release regarding Angion’s plans to explore and evaluate strategic options to enhance and preserve shareholder value and take other actions to immediately reduce cash burn and Angion’s expectation to have cash sufficient to fund its planned operations for the 12 months following the issuance date of our condensed consolidated financial statements. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied by such forward-looking statements. In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: Angion’s ability to execute its planned exploration and evaluation of strategic alternatives; and unexpected demands on Angion’s cash resources. For a fuller description of risks and uncertainties that could cause actual results to differ from those expressed in forward-looking statements, see Angion’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission on March 30, 2022, and Angion’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, to be filed with the Securities and Exchange Commission on August 15, 2022, especially, in each case, under the caption “Risk Factors,” as well as other documents that may be filed by Angion from time to time with the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Angion undertakes no obligation to update any forward-looking statement in this press release, except as required by law.

ANGION BIOMEDICA CORP.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share amounts)
(unaudited)

	Three Months Ended June 30,								Six Months Ended June 30,
		2022				2021				2022				2021
Revenue:
Contract revenue	$	653			$	540			$	2,301			$	911
Total revenue		653				540				2,301				911
Operating expenses:
Research and development		6,073				14,444				17,740				28,742
General and administrative		3,615				4,340				8,081				10,352
Total operating expenses		9,688				18,784				25,821				39,094
Loss from operations		(9,035	)			(18,244	)			(23,520	)			(38,183	)
Other income (expense), net		(104	)			1,172				141				(15,576	)
Net loss		(9,139	)			(17,072	)			(23,379	)			(53,759	)
Net loss per common share, basic and diluted	$	(0.30	)		$	(0.58	)		$	(0.78	)		$	(2.02	)
Weighted average common shares outstanding, basic and diluted		29,973,886				29,670,329				29,966,609				26,574,290

ANGION BIOMEDICA CORP.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)

	June 30, 2022				December 31, 2021
Assets
Current assets
Cash and cash equivalents	$	63,372			$	88,756
Grants receivable		—				806
Prepaid expenses and other current assets		2,513				1,685
Total current assets		65,885				91,247
Property and equipment, net		388				451
Operating lease right-of-use assets		3,589				3,986
Investments in related parties		865				723
Other assets		86				106
Total assets	$	70,813			$	96,513
Liabilities and stockholders’ equity
Current liabilities
Accounts payable	$	2,656			$	4,710
Accrued expenses		4,086				3,219
Operating lease liabilities, current		943				894
Financing obligation, current		62				58
Deferred revenue, current		—				2,301
Warrant liability		33				114
Total current liabilities		7,780				11,296
Operating lease liabilities, noncurrent		2,990				3,475
Financing obligation, noncurrent		202				235
Other liabilities, noncurrent		81				—
Total liabilities		11,053				15,006
Commitments and contingencies
Stockholders' equity
Common stock		301				300
Additional paid-in capital		297,875				296,445
Accumulated other comprehensive loss		98				(103	)
Accumulated deficit		(238,514	)			(215,135	)
Total stockholders' equity		59,760				81,507
Total liabilities and stockholders' equity	$	70,813			$	96,513

FAQ

What were Angion Biomedica's financial results for Q2 2022?

For Q2 2022, Angion reported a net loss of $9.1 million, or $0.30 per share, compared to $17.1 million, or $0.58 per share, in Q2 2021.

Why did Angion Biomedica discontinue the JUNIPER trial?

The JUNIPER trial was discontinued due to safety concerns after a reassessment of the risks associated with ANG-3070 in patients with serious kidney diseases.

What strategic options is Angion exploring?

Angion is exploring various strategic options, including mergers, reverse mergers, asset sales, and licensing to enhance shareholder value.

What is the current cash position of Angion Biomedica?

As of June 30, 2022, Angion had $63.4 million in cash and cash equivalents, enough to fund operations for at least 12 months.