Ascendis Pharma A/S Reports Third Quarter 2020 Financial Results

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(Neutral)

Rhea-AI Sentiment

(Positive)

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earnings

Rhea-AI Summary

Ascendis Pharma announced the validation of its Marketing Authorisation Application (MAA) for TransCon hGH (lonapegsomatropin) in pediatric growth hormone deficiency by the European Medicines Agency (EMA). The company has also submitted regulatory filings for the phase 3 PaTHway Trial of TransCon PTH in Europe and Canada, and initiated a phase 2 trial for TransCon CNP in collaboration with VISEN Pharmaceuticals. Ascendis reported a net loss of €121.7 million for Q3 2020, with revenues increasing to €2.8 million. Cash reserves stand at €957.5 million as of September 30, 2020.

Positive

EMA validated the MAA for TransCon hGH, paving the way for potential market approval.
Cash reserves increased to €957.5 million, providing substantial financial stability.
Continued progress in clinical trials, including phase 3 for TransCon PTH and phase 2 for TransCon CNP.

Negative

Net loss widened to €121.7 million for Q3 2020, compared to €25.1 million in Q3 2019.
Significant increase in R&D costs to €64.1 million, potentially impacting future profitability.
Higher SG&A expenses at €17.5 million, indicating increased operational costs.

11/11/2020 - 04:01 PM

– European Medicines Agency (EMA) validated the Marketing Authorisation Application (MAA) for TransCon^TM hGH (lonapegsomatropin) in pediatric growth hormone deficiency (GHD) –

– Submitted regulatory filings to enable initiation of European and Canadian sites for phase 3 PaTHway Trial for TransCon PTH –

– In collaboration with VISEN Pharmaceuticals, filed an Investigational New Drug Application (IND) to initiate the phase 2 ACcomplisH China Trial of TransCon CNP –

– On track for remaining 2020 corporate milestone of filing an IND or similar for TransCon TLR7/8 Agonist by year-end –

– Conference call today at 4:30 p.m. Eastern Time –

COPENHAGEN, Denmark, Nov. 11, 2020 (GLOBE NEWSWIRE) -- Ascendis Pharma A/S (Nasdaq: ASND), a biopharmaceutical company that utilizes its innovative TransCon™ technologies to create product candidates that address unmet medical needs, today announced financial results for the quarter ended September 30, 2020.

“As Ascendis progresses toward closing out 2020, I am proud that we are on track or ahead of schedule for all 2020 corporate goals and to achieve Vision 3x3, moving us one step closer to becoming a fully integrated, global biopharmaceutical company,” said Jan Mikkelsen, President and CEO. “As a company, we are driven by our core values to achieve our long-term strategic Vision 3x3, using the power of the TransCon technology. We push ourselves to continually deliver not only in endocrinology but also in oncology and to bring these products to patients as efficiently and safely as possible.”

Corporate Highlights & Progress

TransCon hGH (lonapegsomatropin)
○ Submitted MAA to the EMA, which has now validated the application.
○ Filed a Clinical Trial Notification with the Pharmaceuticals and Medical Devices Agency in Japan to initiate the company’s phase 3 riGHt Trial of lonapegsomatropin for the treatment of pediatric GHD.
○ Announced the U.S. Food and Drug Administration (FDA) accepted the company’s Biologics License Application and set a PDUFA date for June 25, 2021.
TransCon PTH
○ Submitted regulatory filings to enable initiation of European and Canadian sites for phase 3 PaTHway Trial.
○ Received orphan designation by the European Commission (EC) for the treatment of hypoparathyroidism (HP).
○ Submitted an amendment to its IND with FDA for the PaTHway phase 3 clinical trial evaluating the safety, tolerability and efficacy of TransCon PTH in adults with HP.
○ Announced preliminary six-month results from the open-label extension portion of PaTH Forward, a global phase 2 trial evaluating the safety, tolerability and efficacy of TransCon PTH in adult subjects with HP. The preliminary results support potential use of TransCon PTH as a hormone replacement therapy for HP and demonstrated normalization of quality of life.
TransCon CNP
○ In collaboration with VISEN Pharmaceuticals, filed an IND application to initiate the phase 2 ACcomplisH China Trial.
○ Received orphan designation by the EC.
Oncology
○ On track for filing IND or similar for TransCon TLR7/8 Agonist by year-end. TransCon TLR7/8 Agonist is a long-acting prodrug of resiquimod. Administered as an intratumoral injection, TransCon TLR7/8 Agonist is designed to provide sustained release of unmodified resiquimod directly to the tumor.
Announced Mark A. Bach, M.D., Ph.D., as Senior Vice President of Clinical Development and Medical Affairs for Endocrinology Rare Diseases. Dr. Bach has 30 years of experience in clinical research and development.
Ended the third quarter 2020 with cash, cash equivalents and marketable securities totaling €957.5 million.

Third Quarter 2020 Financial Results

For the third quarter, Ascendis Pharma reported a net loss of €121.7 million, or €2.31 per share (basic and diluted) compared to a net loss of €25.1 million, or €0.53 per share (basic and diluted) for the same period in 2019.

Revenue for the third quarter was €2.8 million compared to €2.2 million in the same quarter of 2019. The increase was due to a higher sale of clinical supply and services to VISEN, partly offset by a lower amount of license revenue being recognized.

Research and development (R&D) costs for the third quarter were €64.1 million compared to €46.3 million during the same period in 2019. Higher R&D costs in 2020 reflect an increase in personnel-related costs, expansion of R&D facilities and the continued progress in development of the company’s product candidates.

Selling, general and administrative (SG&A) expenses for the third quarter were €17.5 million compared to €10.0 million during the same period in 2019. The increase is primarily due to additional personnel-related costs, higher IT and other infrastructure costs and continued build of the company’s commercial capabilities.

As of September 30, 2020, Ascendis Pharma had cash, cash equivalents and marketable securities totaling €957.5 million compared to €471.6 million as of June 30, 2020. As of September 30, 2020, Ascendis Pharma had 53,416,091 ordinary shares outstanding.

Conference Call and Webcast information

Ascendis Pharma will host a conference call and webcast today at 4:30 p.m. Eastern Time (ET) to discuss its third quarter 2020 financial results. Details include:

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