Barinthus Bio Reports Third Quarter 2024 Update on Corporate Developments and Financial Results

Rhea-AI Summary

Barinthus Bio (NASDAQ: BRNS) reported Q3 2024 financial results and corporate updates. The company completed enrollment in the HBV003 trial of VTP-300 for chronic hepatitis B with 121 participants, and initiated the Phase 1 AVALON trial of VTP-1000 for celiac disease. Financial highlights include $106.1M in cash as of September 30, 2024, $15M in revenue from Vaxzevria® royalties, and a net loss of $8.1M ($0.21 per share). R&D expenses were $11.1M, down from $11.7M in Q2. The company expects current resources to fund operations into Q2 2026.

Positive

• Received $15M in revenue from Vaxzevria® royalties
• Strong cash position of $106.1M as of September 30, 2024
• Reduced R&D expenses from $11.7M to $11.1M quarter-over-quarter
• 76% of assessed participants met criteria for NUC therapy discontinuation in HBV003 trial

Negative

• Net loss of $8.1M in Q3 2024
• Increased G&A expenses from $7.2M to $13.4M quarter-over-quarter
• Foreign exchange loss of $7.7M in Q3 2024
• No expectation of additional Vaxzevria® royalty payments

Insights

Financial Analyst

The Q3 update reveals mixed financial signals. The $15.0M unexpected revenue from AstraZeneca royalties provides a welcome boost, though it's noted as a one-time event. Cash position stands at $106.1M, down from $117.8M in Q2, with a burn rate of $18.2M. The extended runway into Q2 2026 offers stability for ongoing clinical trials.

R&D expenses decreased slightly to $11.1M from $11.7M, while G&A expenses jumped to $13.4M from $7.2M, largely due to forex losses. Net loss improved to $8.1M ($0.21/share) from $16.9M ($0.43/share), primarily due to the one-time revenue.

Medical Research Analyst

The clinical pipeline shows promising momentum across multiple programs. VTP-300 for hepatitis B demonstrates encouraging efficacy with 76% of participants meeting NUC discontinuation criteria and 67% achieving HBsAg <10 IU/mL. The completion of HBV003 trial enrollment with 121 participants marks significant progress. The initiation of VTP-1000's first-in-human trial for celiac disease and completion of VTP-850's prostate cancer trial enrollment indicate robust pipeline advancement. Multiple data readouts expected in Q4 2024 and H1 2025 could serve as important catalysts.

OXFORD, United Kingdom, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Barinthus Biotherapeutics plc (NASDAQ: BRNS), a clinical-stage biopharmaceutical company developing novel immunotherapeutic candidates that guide T cells to control disease, provided an overview of business updates and announced financial results for the third quarter of 2024.

“We continue our strong execution on our clinical trials, completing enrollment in the HBV003 trial of VTP-300 in chronic hepatitis B, and advancing VTP-1000 in celiac disease into the clinic with the first in human study of the novel SNAP-TI platform,” said Dr. Leon Hooftman, Chief Medical Officer of Barinthus Bio. “We expect a data rich fourth quarter from the VTP-300 chronic hepatitis B program, with updated interim readouts from both the HBV003 and IM-PROVE II trials accepted as late-breaking abstracts at the American Association for the Study of Liver Diseases (AASLD) – The Liver Meeting® 2024. These updates will provide more mature data than previously disclosed as participants progress and move towards a potential functional cure.”

Third Quarter 2024 and Recent Corporate Developments

VTP-300 (Chronic hepatitis B)

In September 2024, enrollment was completed in the HBV003 trial of VTP-300 in 121 adult participants with chronic hepatitis B. The Phase 2b trial is designed to obtain critical dosing information for a potential functional cure regimen for chronic hepatitis B, with participants receiving VTP-300 and low-dose (LD) nivolumab.

Earlier this year, interim data from the HBV003 trial was presented at the European Association for the Study of the Liver (EASL) Congress and demonstrated that treatment with VTP-300 and LD nivolumab was generally well-tolerated and led to a sustained decline in Hepatitis B surface antigen (HBsAg) levels. Seventy-six percent of participants (n=16/21) assessed for nucleos(t)ide analogue (NUC) therapy discontinuation met the criteria. Sixty-seven percent of participants (n=14/21) assessed for NUC discontinuation had HBsAg <10 IU/mL at Week 24 or later. Nineteen percent of the eligible participants (n=4/21) reached undetectable levels of HBsAg, with 2 of these patients maintaining undetectable levels for over 16 weeks.

VTP-1000 (Celiac Disease)

In September 2024, we initiated the first-in-human Phase 1 AVALON trial of VTP-1000 in adults with celiac disease. The randomized, placebo-controlled clinical trial, which includes a controlled gluten challenge, will evaluate the safety, tolerability, pharmacokinetics and pharmacodynamics of VTP-1000.

VTP-850 (Prostate Cancer)

In October 2024, we announced that the PCA001 trial of VTP-850 in men with rising prostate-specific antigen (PSA) after definitive local therapy for prostate cancer (i.e., biochemical recurrence) had completed patient enrollment of 22 participants. The Phase 1 trial is designed to evaluate safety and efficacy, as measured by PSA and T cell response. We expect to have data from the Phase 1 trial in the first half of 2025.

Financial Update

In October 2024, we were informed that an additional $15.0 million of revenue was due to the Company from Oxford University Innovation (OUI) in relation to the Company's share of royalties received by OUI, as a result of prior commercial sales of Vaxzevria® by AstraZeneca. We expect that this additional cash, when received, will enable us to fund our research and development plans further into the second quarter of 2026.

Upcoming Milestones

VTP-300 (Chronic hepatitis B)

In the fourth quarter of 2024, we expect to announce updated data from the VTP-300 program in ongoing clinical trials in chronic hepatitis B at AASLD – The Liver Meeting® 2024 scheduled from November 15-19, 2024 in San Diego, CA:

• Updated interim data from HBV003, the Phase 2b trial evaluating additional dosing of VTP-300 and timing of PD-1 inhibition, accepted as a late-breaking oral presentation.
• Updated interim data from the Phase 2a IM-PROVE II clinical trial evaluating the combination of VTP-300 and Arbutus Biopharma’s imdusiran, accepted as a late-breaking poster.

VTP-1000 (Celiac Disease)

In the first half of 2025, we expect to announce data from the single ascending dose part of the Phase 1 AVALON trial of VTP-1000 in adults with celiac disease.

VTP-850 (Prostate Cancer)

In the first half of 2025, we expect to announce results of the Phase 1 PCA001 trial of VTP-850 in men with rising PSA after definitive local therapy for prostate cancer (i.e., biochemical recurrence).

Third Quarter 2024 Financial Highlights

• Cash position: As of September 30, 2024, cash, cash equivalents and restricted cash were $106.1 million, compared to $117.8 million as of June 30, 2024. The net cash used in operating activities was $18.2 million in the third quarter of 2024, primarily resulting from the development of our pipeline and ongoing clinical trials, offset by $6.2 million due to the effect of foreign exchange rates on cash balances. Based on our current operating plans, we expect our available resources to fund operating expenses and capital expenditure requirements into the second quarter of 2026.
• Revenue: Revenue consisted of $15.0 million in the third quarter of 2024 compared to nil in the second quarter of 2024. Revenue was comprised of the Company’s share of royalties received by OUI as a result of prior commercial sales of Vaxzevria® by AstraZeneca.There is no expectation of additional payments or that we will be notified of such payments in a timely manner.
• Research and development expenses: Research and development expenses were $11.1 million in the third quarter of 2024 compared to $11.7 million in the second quarter of 2024, with the decrease mainly attributable to a reduction in personnel-related costs as a result of the pipeline prioritization earlier in the year. The quarter-on-quarter R&D expense per program is outlined in the following table.
  
  

Period ended		Three months ended September 30, 2024			Three months ended June 30, 2024			Change
		$	000		$	000		$	000
Direct research and development expenses by program:
VTP-200 HPV		$	246		$	383		$	(137	)
VTP-300 HBV			2,748			3,034			(286	)
VTP-500 MERS1			40			304			(264	)
VTP-600 NSCLC/ESCC2			108			24			84
VTP-850 Prostate cancer			914			414			500
VTP-1000 Celiac			1,751			1,371			380
Other and earlier stage programs			707			908			(201	)
Total direct research and development expenses		$	6,514		$	6,438		$	76
Indirect research and development expenses:
Personnel-related (including share-based compensation)3			3,871			4,763			(892	)
Facility related			214			342			(128	)
Other indirect costs			540			119			421
Total indirect research and development expenses			4,625			5,224			(599	)
Total research and development expense		$	11,139		$	11,662		$	(523	)

¹ The development of VTP-500 is funded pursuant to an agreement with the Coalition for Epidemic Preparedness Innovations (CEPI).

² The VTP-600 NSCLC/Esophageal Squamous-Cell Carcinoma (ESCC) Phase 1/2a trial is sponsored by Cancer Research UK.

³ This includes $0.6 million of personnel-related indirect expenses relating to time spent progressing the VTP-500 MERS program funded by CEPI.

• General and administrative expenses: General and administrative expenses were $13.4 million in the third quarter of 2024, compared to $7.2 million in the second quarter of 2024. The increase of $6.2 million relates primarily to a loss of $7.7 million on foreign exchange in the third quarter of 2024, compared to a loss of $0.1 million in the second quarter of 2024.
• Net loss: For the third quarter of 2024, we generated a net loss attributable to shareholders of $8.1 million, or $(0.21) per share on both basic and fully diluted bases, compared to a net loss attributable to shareholders of $16.9 million, or $(0.43) per share on both basic and fully diluted bases in the second quarter of 2024.

About Barinthus Bio

Barinthus Bio is a clinical-stage biopharmaceutical company developing novel immunotherapeutic candidates designed to guide the immune system to overcome chronic infectious diseases and autoimmunity. Helping people living with serious diseases and their families is the guiding principle at the heart of Barinthus Bio. With a focused pipeline built around our proprietary platform technologies, Barinthus Bio is advancing immunotherapeutic product candidates in infectious diseases and autoimmunity, including: VTP-300, that utilizing our ChAdOx/MVA platform designed as a potential component of a functional cure for chronic HBV infection and VTP-1000, utilizing our SNAP-Tolerance Immunotherapy (SNAP-TI) platform and is designed to treat people with celiac disease. Barinthus Bio is also conducting a Phase 1 clinical trial for VTP-850, a second-generation immunotherapeutic candidate designed to treat recurrent prostate cancer. Barinthus Bio’s differentiated technology platforms and therapeutic approach, coupled with deep scientific expertise and focus on clinical development, uniquely positions the company to navigate towards delivering treatments that improve the lives of people with chronic infectious diseases and autoimmunity. For more information, visit www.barinthusbio.com.

Barinthus Bio intends to use the Investors section of its website, its X (formerly known as Twitter) account at @Barinthusbio and its LinkedIn account at linkedin.com/company/barinthus-bio as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor Barinthus Bio’s website, its X account and its LinkedIn account in addition to following Barinthus Bio’s press releases, SEC filings, public conference calls, presentations, and webcasts.

Forward Looking Statements

This press release contains forward-looking statements regarding Barinthus Bio within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, which can generally be identified as such by use of the words “may,” “will,” “plan,” “forward,” “encouraging,” “believe,” “potential,” “expect,” and similar expressions, although not all forward-looking statements contain these identifying words. These forward-looking statements include, without limitation, express or implied statements regarding our future expectations, plans and prospects, including our product development activities and clinical trials, including timing for readouts of any preliminary, interim or final data for any of our programs, our anticipated regulatory filings and approvals, our cash runway, the potential benefits of our product candidates, and our ability to develop and advance our current and future product candidates and programs. Any forward-looking statements in this press release are based on our management’s current expectations and beliefs and are subject to numerous risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation, risks and uncertainties related to the success, cost and timing of our pipeline development activities and planned and ongoing clinical trials, including the risk that the timing for preliminary, interim or final data or initiation of our clinical trials may be delayed, the risk that interim or topline data may not reflect final data or results, our ability to execute on our strategy, regulatory developments, the risk that we may not achieve the anticipated benefits of our pipeline prioritization and corporate restructuring, our ability to fund our operations and access capital, our cash runway, including the risk that our estimate of our cash runway may be incorrect, global economic uncertainty, including disruptions in the banking industry, the conflicts in Ukraine, Israel and Gaza, and other risks identified in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2023, our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We caution you not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. We expressly disclaim any obligation to publicly update or revise any such statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.

BARINTHUS BIOTHERAPEUTICS PLC CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT NUMBER OF SHARES AND PER SHARE AMOUNTS) (UNAUDITED)
	September 30, 2024				December 31, 2023
ASSETS
Cash, cash equivalents and restricted cash	$	106,102			$	142,090
Contract asset - related parties		14,969				—
Research and development incentives receivable		5,403				4,908
Prepaid expenses and other current assets		8,180				9,907
Total current assets		134,654				156,905
Goodwill		12,209				12,209
Property and equipment, net		10,719				11,821
Intangible assets, net		22,737				25,108
Right of use assets, net		7,444				7,581
Other assets		926				882
Total assets	$	188,689			$	214,506
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		3,076				1,601
Accrued expenses and other current liabilities		7,966				9,212
Deferred income		2,044				—
Operating lease liability - current		1,986				1,785
Total current liabilities		15,072				12,598
Non-current liabilities:
Operating lease liability - non-current		10,683				11,191
Contingent consideration		1,610				1,823
Other non-current liabilities		1,406				1,325
Deferred tax liability, net		457				574
Total liabilities	$	29,228			$	27,511
Commitments and contingencies (Note 15)
Stockholders’ equity:
Ordinary shares, £0.000025 nominal value; 39,542,518 shares authorized, issued and outstanding (December 31, 2023: authorized, issued and outstanding: 38,643,540)		1				1
Deferred A shares, £1 nominal value; 63,443 shares authorized, issued and outstanding (December 31, 2023: authorized, issued and outstanding: 63,443)		86				86
Additional paid-in capital		391,882				386,602
Accumulated deficit		(217,124	)			(176,590	)
Accumulated other comprehensive loss – foreign currency translation adjustments		(15,551	)			(23,315	)
Total stockholders’ equity attributable to Barinthus Biotherapeutics plc shareholders		159,294				186,784
Noncontrolling interest		167				211
Total stockholders’ equity	$	159,461			$	186,995
Total liabilities and stockholders’ equity	$	188,689			$	214,506

BARINTHUS BIOTHERAPEUTICS PLC CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (IN THOUSANDS, EXCEPT NUMBER OF SHARES AND PER SHARE AMOUNTS) (UNAUDITED)
	Three months ended								Nine months ended
	September 30, 2024				September 30, 2023				September 30, 2024				September 30, 2023
License revenue 1	$	14,969			$	—			$	14,969			$	802
Total revenue		14,969				—				14,969				802
Operating expenses
Research and development		11,139				15,144				33,926				38,501
General and administrative		13,420				961				26,615				26,227
Total operating expenses		24,559				16,105				60,541				64,728
Other operating income		210				—				992				—
Loss from operations		(9,380	)			(16,105	)			(44,580	)			(63,926	)
Other income/(expense):
Interest income		631				196				2,041				2,306
Interest expense		(17	)			(7	)			(41	)			(21	)
Research and development incentives		608				1,205				1,895				2,921
Other income/(expense)		26				(2	)			46				308
Total other income, net		1,248				1,392				3,941				5,514
Loss before income tax		(8,132	)			(14,713	)			(40,639	)			(58,412	)
Tax benefit		3				603				47				2,255
Net loss		(8,129	)			(14,110	)			(40,592	)			(56,157	)
Net loss attributable to noncontrolling interest		15				38				58				103
Net loss attributable to Barinthus Biotherapeutics plc shareholders		(8,114	)			(14,072	)			(40,534	)			(56,054	)
Weighted-average ordinary shares outstanding, basic		39,419,447				38,533,833				39,079,259				38,320,208
Weighted-average ordinary shares outstanding, diluted		39,419,447				38,533,833				39,079,259				38,320,208
Net loss per share attributable to ordinary shareholders, basic	$	(0.21	)		$	(0.37	)		$	(1.04	)		$	(1.46	)
Net loss per share attributable to ordinary shareholders, diluted	$	(0.21	)		$	(0.37	)		$	(1.04	)		$	(1.46	)
Net loss	$	(8,129	)		$	(14,110	)		$	(40,592	)		$	(56,157	)
Other comprehensive gain/(loss) – foreign currency translation adjustments		9,191				(7,820	)			7,778				2,364
Comprehensive income/(loss)		1,062				(21,930	)			(32,814	)			(53,793	)
Comprehensive loss attributable to noncontrolling interest		5				48				44				100
Comprehensive income/(loss) attributable to Barinthus Biotherapeutics plc shareholders	$	1,067			$	(21,882	)		$	(32,770	)		$	(53,693	)

¹ Includes license revenue from related parties for the three and nine months ended September 30, 2024 of $15.0 million (three and nine months ended September 30, 2023: nil and $0.8 million, respectively).

IR contacts:
Christopher M. Calabrese 
Managing Director 
LifeSci Advisors
+1 917-680-5608
ccalabrese@lifesciadvisors.com

Kevin Gardner
Managing Director
LifeSci Advisors
+1 617-283-2856
kgardner@lifesciadvisors.com

Media contact:
Audra Friis
Sam Brown, Inc.
+1 917-519-9577
audrafriis@sambrown.com

Company contact:
Jonothan Blackbourn
IR & PR Manager
Barinthus Bio
ir@barinthusbio.com

FAQ

What was Barinthus Bio's (BRNS) revenue in Q3 2024?

Barinthus Bio reported revenue of $15.0 million in Q3 2024, consisting of royalties from prior commercial sales of Vaxzevria® by AstraZeneca.

What was Barinthus Bio's (BRNS) cash position as of September 30, 2024?

Barinthus Bio had $106.1 million in cash, cash equivalents and restricted cash as of September 30, 2024.

What was Barinthus Bio's (BRNS) net loss per share in Q3 2024?

Barinthus Bio reported a net loss of $0.21 per share in Q3 2024.

How long will Barinthus Bio's (BRNS) current cash resources last?

Based on current operating plans, Barinthus Bio expects its available resources to fund operations into the second quarter of 2026.