Assembly Biosciences Reports First Quarter 2021 Financial Results and Recent Updates

Rhea-AI Summary

Assembly Biosciences, Inc. (ASMB) reported financial results for Q1 2021, focusing on hepatitis B virus (HBV) therapies. The company initiated two Phase 2 triple combination studies with its lead core inhibitor candidate, vebicorvir (VBR). Financially, cash and equivalents stood at $214.9 million, sufficient to fund operations into 2023. However, revenues fell to $0 due to the wind-down of the microbiome program, while R&D expenses decreased to $18.6 million. The net loss for the quarter was $27.2 million, or $0.69 per share, marginally higher than the previous year.

Positive

• Initiated two Phase 2 triple combination studies for HBV treatments.
• Cash position of $214.9 million projected to fund operations into 2023.
• Decreased research and development expenses to $18.6 million.

Negative

• Revenues dropped to $0 due to the termination of the microbiome collaboration.
• Net loss increased to $27.2 million from $26.7 million year-over-year.

SOUTH SAN FRANCISCO, Calif., May 06, 2021 (GLOBE NEWSWIRE) -- Assembly Biosciences, Inc. (Nasdaq: ASMB), a clinical-stage biotechnology company developing innovative therapeutics targeting hepatitis B virus (HBV), today reported financial results and recent updates for the first quarter ended March 31, 2021.

“In the first quarter of 2021, we solidified all our efforts and focus on hepatitis B and the sole pursuit of finite and curative therapies to replace burdensome life-long treatment regimens for the more than 250 million people living with this disease,” said John McHutchison, AO, MD, Chief Executive Officer and President of Assembly Bio. “Our strategy is clear and we have made significant progress, continuing to advance all our clinical programs while expanding and accelerating our novel discovery efforts. We are particularly excited that our first Phase 2 proof-of-concept triple combination studies – key drivers of our clinical strategy – are now underway.”

Recent Updates

• Initiated two triple combination studies:
  • Phase 2 study evaluating Assembly Bio’s lead core inhibitor candidate, vebicorvir (VBR), with standard-of-care nucleos(t)ide reverse transcriptase inhibitor (Nrtl) therapy and Arbutus Biopharma’s RNAi therapeutic candidate, AB-729
  • Phase 2 study evaluating VBR with NrtI therapy and interferon (peg-IFNα)
    

Anticipated Milestones and Events

• Nominate a fourth core inhibitor candidate with a best-in-class profile in Q2 2021
• Interim data from Phase 2 study with ABI-H2158 in H2 2021

Upcoming Conferences

• Chief Scientific Officer, William Delaney, PhD, to present at the Chronic Hepatitis B Drug Development Virtual Summit, May 6, 2021, during a session on “Targeting HBV Core Protein to Improve Treatment for cHBV patients.”
• Jefferies Global Healthcare Conference: June 1-3, 2021
• The International Liver Congress™(ILC), the Annual Meeting of the European Association for the Study of the Liver (EASL) taking place virtually June 23-26, 2021 Assembly Bio has three abstracts accepted for presentation:
  • Enhanced potency and target coverage for both antiviral inhibition and cccDNA establishment of next generation core inhibitors ABI-H2158 and ABI-H3733
  • Viral response and safety following treatment discontinuation in Study 211, the open-label extension study of VBR in combination with NrtI therapy
  • No emergent core inhibitor resistance in patients with chronic HBV infection treated with VBR in combination with NrtI

First Quarter 2021 Financial Results

• Cash, cash equivalents and marketable securities were $214.9 million as of March 31, 2021, compared to $216.4 million as of December 31, 2020. This result includes $34.1 million of net proceeds from the issuance of common shares under Assembly Bio’s at-the-market (ATM) program. The company’s cash position is projected to fund operations into 2023.
• Revenues from collaborative research were $0 for the three months ended March 31, 2021, compared to $4.1 million for the same period in 2020. The decrease is due to the termination of the microbiome collaboration agreement with Allergan Pharmaceuticals following AbbVie Inc’s acquisition of Allergan. In Q1 2021 Assembly Bio completed the previously announced winddown of its microbiome program.
• Research and development expenses were $18.6 million for the three months ended March 31, 2021, compared to $23.0 million for the same period in 2020. The decrease is primarily due to a decrease of $8.2 million related to the wind-down of Assembly Bio’s microbiome program. This decrease was partially offset by an increase of $3.7 million in research and development expenses related to the company’s HBV program. Research and development expenses include non-cash stock-based compensation expenses of $(2.1) million for the three months ended March 31, 2021 and $1.9 million for the same period in 2020. The decrease is primarily due to the reversal of $2.4 million of previously recognized stock-based compensation expense related to forfeited awards of former microbiome program employees.
• General and administrative expenses were $8.7 million for both the three months ended March 31, 2021 and 2020. General and administrative expenses include non-cash stock-based compensation expenses of $1.8 million for the three months ended March 31, 2021 and $3.0 million for the same period in 2020.
• Net loss attributable to common stockholders was $27.2 million, or $0.69 per basic and diluted share, for the three months ended March 31, 2021, compared to $26.7 million, or $0.76 per basic and diluted share, for the same period in 2020.
  

About Assembly Biosciences
Assembly Bio is a clinical-stage biotechnology company committed to bringing finite and curative therapies to the 270 million people living with hepatitis B virus (HBV) worldwide. A pioneer in the development of a new class of potent, oral core inhibitor drug candidates, Assembly Bio’s approach aims to break the complex viral replication cycle of HBV to free patients from a lifetime of therapy. Assembly Bio’s strategy toward cure includes a leading portfolio of more potent, next-generation core inhibitors, proof-of-concept combination studies and a research program focused on the discovery of novel HBV targets. For more information, visit assemblybio.com.

Forward-Looking Statements
The information in this press release contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to materially differ. These risks and uncertainties include:  Assembly Bio’s ability to initiate and complete clinical studies involving its therapeutic product candidates, including studies contemplated by Assembly Bio’s clinical collaboration agreements, in the currently anticipated timeframes; safety and efficacy data from clinical studies may not warrant further development of Assembly Bio’s product candidates; clinical and nonclinical data presented at conferences may not differentiate Assembly Bio’s product candidates from other companies’ candidates; continued development and commercialization of Assembly Bio’s product candidates, if successful, in the China territory will be dependent on, and subject to, Assembly Bio’s collaboration agreement governing its activity in the China territory; Assembly Bio’s ability to maintain financial resources necessary to continue its clinical studies and fund business operations; any impact that the COVID-19 pandemic may have on Assembly Bio’s business and operations, including initiation and continuation of its clinical studies or timing of discussions with regulatory authorities; and other risks identified from time to time in Assembly Bio’s reports filed with the U.S. Securities and Exchange Commission (the SEC). You are urged to consider statements that include the words may, will, would, could, should, might, believes, hopes, estimates, projects, potential, expects, plans, anticipates, intends, continues, forecast, designed, goal or the negative of those words or other comparable words to be uncertain and forward-looking. Assembly Bio intends such forward-looking statements to be covered by the safe harbor provisions contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. More information about Assembly Bio’s risks and uncertainties are more fully detailed under the heading “Risk Factors” in Assembly Bio’s filings with the SEC, including its most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Except as required by law, Assembly Bio assumes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Contacts

Investor and Corporate:
Lauren Glaser
Senior Vice President, Investor Relations and Corporate Affairs
(415) 521-3828
lglaser@assemblybio.com

Media:
Sam Brown Inc.
Audra Friis
(917) 519-9577
ASMBMedia@sambrown.com

	ASSEMBLY BIOSCIENCES, INC.
	CONDENSED CONSOLIDATED BALANCE SHEETS
	(In thousands except for share amounts and par value)
			March 31,				December 31,
				2021				2020
			(Unaudited)
	ASSETS
	Current assets
	Cash and cash equivalents		$	78,253			$	59,444
	Marketable securities			136,631				156,969
	Accounts receivable from collaborations			203				1,230
	Prepaid expenses and other current assets			6,547				6,850
	Total current assets			221,634				224,493
	Property and equipment, net			1,493				1,600
	Operating lease right-of-use (ROU) assets			8,104				9,131
	Other assets			6,034				6,392
	Indefinite-lived intangible asset			29,000				29,000
	Goodwill			12,638				12,638
	Total assets		$	278,903			$	283,254
	LIABILITIES AND STOCKHOLDERS' EQUITY
	Current liabilities
	Accounts payable		$	3,562			$	4,598
	Accrued clinical expenses			4,342				4,444
	Other accrued expenses			3,659				11,987
	Operating lease liabilities - short-term			2,934				3,404
	Total current liabilities			14,497				24,433
	Deferred tax liabilities			2,531				2,531
	Deferred revenue			8,987				8,987
	Operating lease liabilities - long-term			5,644				6,725
	Total liabilities			31,659				42,676
	Commitments and contingencies
	Stockholders' equity
	Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued or outstanding			—				—
	Common stock, $0.001 par value; 100,000,000 shares authorized as of March 31, 2021 and December 31, 2020; 40,104,684 and 34,026,680 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively			40				34
	Additional paid-in capital			776,248				742,387
	Accumulated other comprehensive loss			(271	)			(270	)
	Accumulated deficit			(528,773	)			(501,573	)
	Total stockholders' equity			247,244				240,578
	Total liabilities and stockholders' equity		$	278,903			$	283,254

	ASSEMBLY BIOSCIENCES, INC.
	CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
	(In thousands except for share and per share amounts)
	(Unaudited)
			Three Months Ended March 31,
				2021				2020
	Collaboration revenue		$	—			$	4,081
	Operating expenses:
	Research and development			18,554				23,046
	General and administrative			8,704				8,729
	Total operating expenses			27,258				31,775
	Loss from operations			(27,258	)			(27,694	)
	Other income:
	Interest and other income, net			58				1,039
	Total other income			58				1,039
	Net loss		$	(27,200	)		$	(26,655	)
	Other comprehensive (loss) income
	Unrealized (loss) gain on marketable securities			(1	)			115
	Comprehensive loss		$	(27,201	)		$	(26,540	)
	Net loss per share, basic and diluted		$	(0.69	)		$	(0.76	)
	Weighted average common shares outstanding, basic and diluted			39,679,734				35,079,756

FAQ

What were Assembly Biosciences' revenues in Q1 2021?

Assembly Biosciences reported revenues of $0 for Q1 2021, a decline from $4.1 million in the same period in 2020.

What was the net loss for Assembly Biosciences in the first quarter of 2021?

The net loss attributable to common stockholders was $27.2 million, or $0.69 per share, for Q1 2021.

How many Phase 2 studies did Assembly Biosciences initiate?

Assembly Biosciences initiated two Phase 2 triple combination studies during Q1 2021.

What is the projected cash runway for Assembly Biosciences?

Assembly Biosciences has a cash position of $214.9 million, projected to fund operations into 2023.

How did research and development expenses change in Q1 2021?

Research and development expenses decreased to $18.6 million in Q1 2021, down from $23.0 million in Q1 2020.