INmune Bio, Inc. Announces First Quarter 2021 Results and Provides Business Update
INmune Bio reported its Q1 2021 financial results and provided key business updates. The company is progressing in its Phase I trial of XPro1595 for Alzheimer's disease, showing promising interim results that support a Phase II trial later this year. Additionally, they began screening for a Phase I trial of INKmune for high-risk myelodysplastic syndrome. Financially, INmune raised approximately $29 million through an ATM agreement, but recorded a net loss of $4.6 million for the quarter. The company has $45.3 million in cash with no debt.
- Promising interim data for XPro1595 in Alzheimer's disease, leading to a Phase II trial.
- Raised approximately $29 million from the sale of common shares.
- Net loss attributable to common stockholders was approximately $4.6 million, up from $2.1 million in Q1 2020.
- Research and development expenses increased to approximately $2.5 million from $0.8 million year-over-year.
Company to host conference call today, May 5, at 4:30pm ET
LA JOLLA, Calif., May 05, 2021 (GLOBE NEWSWIRE) -- INmune Bio, Inc. (NASDAQ: INMB) (the “Company”), a clinical-stage immunology company focused on developing treatments that harness the patient’s innate immune system to fight disease, today reported its financial results for the first quarter ended March 31, 2021 and provided a business update.
“We continued to treat patients in the Phase I XPro1595 Alzheimer's disease trial and expand the extensive biomarker data,” stated RJ Tesi, M.D., chief executive officer of INmune Bio. “The interim data that we reported in January confirms that XPro1595 decreases neuroinflammation in patients with Alzheimer’s disease and supports transitioning to a blinded randomized placebo-controlled Phase II trial later this year. We regard these results as extremely promising and look forward to further confirmation of XPro1595’s potential benefit to these patients in a rigorously designed Phase 2 study. We will report the additional biomarker data later this Summer.”
“We have started screening patients in the Phase I INKmune NK cell priming platform trial in patients with high-risk myelodysplastic syndrome (MDS). MDS is a serious hematopoietic stem cell disorder in which patients have functionally defective NK cells, and approximately one-third of cases progress to AML. We created a short 5-minute video that we believe does a wonderful job explaining why NK cells fail to clear cancer and how the cellular and molecular interactions by INKmune activate NK cells to kill resistant tumors. The video can be found by clicking here.”
“Finally, in our Phase 2 trial of Quellor in hospitalized COVID-19 patients with pulmonary complications, we continue to enroll patients. We expect to receive a ‘go/no-go’ decision by the independent Data Safety Monitoring Board following the analysis of the first 100 patients. We believe Quellor will neutralize soluble TNF, the ‘master cytokine’ of the cytokine storm to decrease progressive respiratory symptoms in these hospitalized patients.”
“In summary, notwithstanding the ongoing pandemic that continues to disrupt drug development timelines around the world, we believe that we are well positioned to make meaningful advancements across all of our key programs this year,” Dr. Tesi concluded.
Q1 2021 and Recent Corporate Highlights
DN-TNF Platform Highlights:
- Announced interim Phase 1b data demonstrating that XPro1595 decreased neuroinflammation measured by CSF cytokines correlated with decreases in white matter free water, a validated non-invasive biomarker of neuroinflammation. The data showed the benefits of decreased neuroinflammation with decreased neurodegeneration and improved synaptic function as measured by CSF proteomics and remodeling and repair in the brain due to improvements in white and gray matter quality as measured by MRI.
- Data strongly support initiation of a blinded, randomized, placebo-controlled Phase 2 study in 2021 to explore the clinical impact of long-term control of neuroinflammation with XPro1595 in patients with Alzheimer’s disease.
- Presented detailed biomarker data during a Key Opinion Leader webinar on January 21, 2021, a replay of which can be accessed here.
- Continued to advance its Phase 2 trial of Quellor in hospitalized COVID-19 patients suffering from pulmonary complications toward a “go/no-go” decision by the DSMB around mid-year.
Financial Highlights:
- During the first quarter, the Company raised approximately
$29 million from the sale of its common shares through a pre-existing open sale market agreement (At-the-Market, or ATM).
Upcoming Milestones:
- Report on the first 100 patients enrolled in the company’s Quellor trial in COVID-19 which will provide proof-of-concept and inform a “go/no go” decision by the Data Safety Monitoring Board (DSMB).
- Initiate XPro1595 Phase 2 program for treatment resistant depression, funded in part by a
$2.9 million NIH grant in the second half of 2021. - Initiate XPro1595 Phase 2 program for Alzheimer's disease in patients with neuro-inflammation in the second half of 2021.
- Initiation of INKmune high-risk MDS trial.
- The company plans additional clinical trials after the COVID-19 pandemic has been controlled. The exact timing of these trials cannot be predicted at this time. These trials include:
- INKmune Phase 1 program for ovarian cancer.
- LIVNate Phase 2 program for NASH.
- INB03 Phase 2 program for MUC4 expressing cancer.
Financial Results for the First Quarter Ended March 31, 2021:
Net loss attributable to common stockholders for the quarter ended March 31, 2021 was approximately
Research and development expense totaled approximately
General and administrative expense was approximately
As of March 31, 2021, the Company had cash and cash equivalents of approximately
As of May 5, 2021, the Company had approximately 14.9 million common shares outstanding.
Earnings Call Information
To participate in this event, dial approximately 5 to 10 minutes before the beginning of the call.
Date: Wednesday, May 5, 2021
Time: 4:30 PM Eastern Time
Participant Dial-in: 877-407-0784
Participant Dial-in (international): 201-689-8560
A transcript will follow approximately 24 hours from the scheduled call. A replay will also be available through May 12, 2021 by dialing 1-844-512-2921 or 1-412-317-6671 (international) and entering PIN no. 13718747.
About XPro1595
XPro1595 is a next-generation inhibitor of tumor necrosis factor (TNF) that is currently in clinical trial and acts differently than currently existing TNF inhibitors in that it neutralizes soluble TNF (sTNF), without affecting trans-membrane TNF (tmTNF) or TNF receptors. XPro1595 could have substantial beneficial effects in patients with neurologic disease by decreasing neuroinflammation. For more information about the importance of targeting neuroinflammation in the brain to improve cognitive function and restore neuronal communication visit this section of the INmune Bio’s website.
About INmune Bio, Inc.
INmune Bio, Inc. is a publicly traded (NASDAQ: INMB), clinical-stage biotechnology company focused on developing treatments that target the innate immune system to fight disease. INmune Bio has two product platforms that are both in clinical trials. The DN-TNF product platform utilizes dominant-negative technology to selectively neutralize soluble TNF, a key driver of innate immune dysfunction and mechanistic target of many diseases. DN-TNF is in clinical trial to determine if it can treat for COVID-19 complications (Quellor™), cancer (INB03™), Alzheimer’s and treatment resistant depression (XPro595), and NASH (LIVNate™). The Natural Killer Cell Priming Platform includes INKmune™ aimed at priming the patient’s NK cells to eliminate minimal residual disease in patients with cancer. INmune Bio’s product platforms utilize a precision medicine approach for the treatment of a wide variety of hematologic malignancies, solid tumors and chronic inflammation. To learn more, please visit www.inmunebio.com.
Forward Looking Statements
Clinical trials are in early stages and there is no assurance that any specific outcome will be achieved. Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations but are subject to a number of risks and uncertainties. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties. INB03™, XPro1595, LIVNate, Quellor™ and INKmune are still in clinical trials or preparing to start clinical trials and have not been approved and there cannot be any assurance that they will be approved or that any specific results will be achieved. Our two platforms are beginning clinical trials and there cannot be any assurance of the success of these trials. The factors that could cause actual future results to differ materially from current expectations include, but are not limited to, risks and uncertainties relating to the Company’s ability to produce more drug for clinical trials; the availability of substantial additional funding for the Company to continue its operations and to conduct research and development, clinical studies and future product commercialization; and, the Company’s business, research, product development, regulatory approval, marketing and distribution plans and strategies. These and other factors are identified and described in more detail in the Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K, the Company’s Quarterly Reports on Form 10-Q and the Company’s Current Reports on Form 8-K. The Company assumes no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release.
INmune Bio Contact:
David Moss, CFO (858) 964-3720
DMoss@INmuneBio.com
Investor Contact:
Chuck Padala
LifeSci Advisors
(646) 627-8390
chuck@lifesciadvisors.com
The following table summarizes our results of operations for the periods indicated:
INMUNE BIO, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)
| March 31, 2021 | December 31, 2020 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 45,340 | $ | 21,967 | ||||
| Research and development tax credit receivable | 2,190 | 1,686 | ||||||
| Other tax receivable | 154 | 113 | ||||||
| Prepaid expenses | 1,514 | 220 | ||||||
| Prepaid expenses – related party | 15 | - | ||||||
| TOTAL CURRENT ASSETS | 49,213 | 23,986 | ||||||
| Operating lease – right of use asset – related party | 147 | 156 | ||||||
| Acquired in-process research and development intangible assets | 16,514 | 16,514 | ||||||
| TOTAL ASSETS | $ | 65,874 | $ | 40,656 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable and accrued liabilities | $ | 1,572 | $ | 1,518 | ||||
| Accounts payable and accrued liabilities – related parties | 10 | 34 | ||||||
| Deferred liabilities | 591 | 190 | ||||||
| Operating lease, current liability – related party | 23 | 34 | ||||||
| TOTAL CURRENT LIABILITIES | 2,196 | 1,776 | ||||||
| Long-term operating lease liability – related party | 116 | 126 | ||||||
| TOTAL LIABILITIES | 2,312 | 1,902 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Preferred stock, | - | - | ||||||
| Common stock, | 15 | 13 | ||||||
| Additional paid-in capital | 101,466 | 72,105 | ||||||
| Accumulated other comprehensive income | 12 | 11 | ||||||
| Accumulated deficit | (37,931 | ) | (33,375 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY | 63,562 | 38,754 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 65,874 | $ | 40,656 | ||||
INMUNE BIO, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per share amounts)
(Unaudited)
| Three months ended March 31, | ||||||||
| 2021 | 2020 | |||||||
| REVENUE | $ | 4 | $ | - | ||||
| OPERATING EXPENSES | ||||||||
| General and administrative | 2,061 | 1,299 | ||||||
| Research and development | 2,491 | 793 | ||||||
| Total operating expenses | 4,552 | 2,092 | ||||||
| LOSS FROM OPERATIONS | (4,548 | ) | (2,092 | ) | ||||
| OTHER (EXPENSE) INCOME | ||||||||
| Other (expense) income | (8 | ) | 22 | |||||
| Total other (expense) income | (8 | ) | 22 | |||||
| NET LOSS | $ | (4,556 | ) | $ | (2,070 | ) | ||
| Net loss per common share – basic and diluted | $ | (0.32 | ) | $ | (0.19 | ) | ||
| Weighted average number of common shares outstanding – basic and diluted | 14,322,659 | 10,747,300 | ||||||
| COMPREHENSIVE LOSS | ||||||||
| Net loss | $ | (4,556 | ) | $ | (2,070 | ) | ||
| Other comprehensive income (loss) – foreign currency translation | 1 | (21 | ) | |||||
| Total comprehensive loss | $ | (4,555 | ) | $ | (2,091 | ) | ||
INMUNE BIO, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| For the Three Months Ended March 31, | ||||||||
| 2021 | 2020 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (4,556 | ) | $ | (2,070 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Stock-based compensation | 899 | 682 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Research and development tax credit receivable | (504 | ) | (145 | ) | ||||
| Other tax receivable | (41 | ) | 6 | |||||
| Prepaid expenses | (1,294 | ) | (170 | ) | ||||
| Prepaid expenses – related party | (15 | ) | 26 | |||||
| Accounts payable and accrued liabilities | 54 | 294 | ||||||
| Accounts payable and accrued liabilities – related parties | (24 | ) | 29 | |||||
| Deferred liabilities | 401 | 300 | ||||||
| Operating lease liability – related party | (12 | ) | 13 | |||||
| Net cash used in operating activities | (5,092 | ) | (1,035 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Net proceeds from sale of common stock | 28,446 | 1,003 | ||||||
| Net proceeds from the exercise of warrants | 18 | - | ||||||
| Purchase of common stock | - | (1,012 | ) | |||||
| Net cash provided by (used in) financing activities | 28,464 | (9 | ) | |||||
| Impact on cash from foreign currency translation | 1 | (21 | ) | |||||
| NET INCREASE (DECREASE) IN CASH | 23,373 | (1,065 | ) | |||||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 21,967 | 6,996 | ||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 45,340 | $ | 5,931 | ||||
FAQ
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