Onconova Therapeutics Reports Third Quarter 2021 Financial Results and Provides Business Update

Rhea-AI Summary

Onconova Therapeutics (NASDAQ: ONTX) reported its third-quarter financial results for 2021, highlighting significant clinical advancements. The ongoing Phase 1 studies of narazaciclib showed no dose-limiting toxicities, while promising results emerged from the rigosertib combination trial in KRAS+ non-small cell lung cancer, with 29% objective response rate. The company secured $21 million from a public offering, improving financial stability. As of September 30, 2021, cash reserves were $59.4 million, sufficient to support operations for over two years. The net loss for the quarter narrowed to $3.5 million.

Positive

• Promising Phase 1 trials of narazaciclib ongoing, with no dose-limiting toxicities.
• Rigosertib trial yielded 29% objective response rate in KRAS+ NSCLC.
• Company secured $21 million from public offering, strengthening financial position.
• Cash reserves of $59.4 million sufficient for over two years of operations.
• Narrowed net loss of $3.5 million for Q3 2021, improved from $6.2 million in Q3 2020.

Negative

• None.

Conference call and live webcast at 4:30 p.m. ET today

NEWTOWN, Pa., Nov. 11, 2021 (GLOBE NEWSWIRE) -- Onconova Therapeutics, Inc. (NASDAQ: ONTX), (“Onconova”), a clinical-stage biopharmaceutical company focused on discovering and developing novel products for patients with cancer, today announced financial results for the three months ended September 30, 2021, and provided a business update.

Highlights for the third quarter of 2021 and subsequent weeks include:

• The Phase 1 solid tumor studies of narazaciclib (formerly ON 123300) in the United States and China are ongoing with no dose-limiting toxicities observed to-date. The trials are currently enrolling in their second and fourth dose cohorts, respectively.
• The investigator-initiated Phase 1/2a trial evaluating rigosertib in combination with the checkpoint inhibitor nivolumab in KRAS mutated (KRAS+) non-small cell lung cancer (NSCLC) continues to enroll patients in its dose-expansion cohort. Preliminary data showed that the doublet was well-tolerated and an encouraging signal of efficacy in an extensively pre-treated patient population with 2 partial responses out of 7 evaluable patients, with another patient showing stable disease, which gives objective response and disease control rates of 29% and 43%, respectively.
• The investigator-initiated Phase 2 trial evaluating rigosertib monotherapy in advanced squamous cell carcinoma associated with recessive dystrophic epidermolysis bullosa (RDEB-associated SCC) continues to progress. Promising evidence of rigosertib’s clinical activity targeting the complication of squamous cell carcinoma in this indication has been observed and the Company plans to provide additional data from the trial at an upcoming medical meeting.
• The Company strengthened its balance sheet with gross proceeds of $21 million through an underwritten public offering.

Management Commentary

“Our progress during the third quarter has us on track to achieve milestones across our pipeline,” said Steven M. Fruchtman, M.D., President and Chief Executive Officer of Onconova. “In our lead narazaciclib program, the advancement of our complementary Phase 1 studies has us on track to identify a recommended Phase 2 dose in the first half of 2022 and then initiate a Phase 2 safety and efficacy study in the second half. This Phase 2 study will focus on multiple oncology indications with high unmet need, including CDK 4/6 inhibitor refractory HR+ HER2- metastatic breast cancer. Preclinical studies have shown that narazaciclib may be able overcome resistance to approved CDK 4/6 inhibitors, and therefore may have an improved on-target toxicity profile. We believe this positions narazaciclib as a potentially important therapeutic in a multi-billion-dollar drug class. We look forward to evaluating this hypothesis through narazaciclib’s continued clinical development.”

Dr. Fruchtman continued, “Outside our narazaciclib program, we recently reported very encouraging data from the Phase 1/2a investigator-initiated study (IIS) of oral rigosertib plus the PD-1 checkpoint inhibitor nivolumab in advanced KRAS+ NSCLC. These data showed partial responses across multiple KRAS variants in patients who previously failed the standard of care including PD-1 checkpoint inhibitors. This suggests rigosertib may augment the efficacy of checkpoint inhibitors and could differentiate it from competing RAS pathway modulators that target a particular KRAS mutation. Looking ahead, we expect to provide an additional data update from this study in 2022 and begin an additional IIS evaluating rigosertib in combination with anti-PD-1 therapy in malignant melanoma in the first half of next year. Through the progression of these and our other IIS in RDEB-associated SCC, we aim to generate value and address the needs of patients through rigosertib’s development, while maintaining our primary focus on our lead narazaciclib program.”

Third Quarter Financial Results

Cash and cash equivalents as of September 30, 2021, were $59.4 million, compared with $19.0 million as of December 31, 2020. The Company believes that its cash and cash equivalents will be sufficient to fund ongoing clinical trials and business operations for more than two years.

Research and development expenses were $1.8 million for the third quarter of 2021, compared with $4.2 million for the third quarter of 2020. The decrease was primarily related to higher costs related to the INSPIRE study in the 2020 period.

General and administrative expenses were $2.3 million for the third quarter of 2021, compared with $2.1 million for the third quarter of 2020.

Net loss for the third quarter of 2021 was $3.5 million, or $0.22 per share on 16.0 million weighted average shares outstanding, compared with a net loss for the third quarter of 2020 of $6.2 million, or $0.52 per share on 12.1 million weighted average shares outstanding.

Conference Call and Webcast

Onconova will host an investment community conference call today beginning at 4:30 p.m. Eastern Time, during which management will discuss financial results for the third quarter of 2021, provide a business update, and answer questions. Interested parties can participate by dialing (855) 428-5741 (domestic callers) or (210) 229-8823 (international callers) and using conference ID 5367655.

A live webcast of the conference call will be available in the Investors & Media section of the Company's website at www.onconova.com. A replay of the webcast will be available on the Onconova website for 90 days following the call.

About Onconova Therapeutics, Inc.
Onconova Therapeutics is a clinical-stage biopharmaceutical company focused on discovering and developing novel products for patients with cancer. The Company has proprietary targeted anti-cancer agents designed to disrupt specific cellular pathways that are important for cancer cell proliferation.

Onconova’s novel, proprietary multi-kinase inhibitor narazaciclib (formerly ON 123300) is being evaluated in two separate and complementary Phase 1 dose-escalation and expansion studies. These trials are currently underway in the United States and China.

Onconova’s product candidate rigosertib is being studied in an investigator-initiated study program, including in a dose-escalation and expansion Phase 1/2a investigator-initiated study with oral rigosertib in combination with nivolumab for patients with KRAS+ non-small cell lung cancer.

For more information, please visit www.onconova.com.

Forward-Looking Statements
Some of the statements in this release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, and involve risks and uncertainties. These statements relate to Onconova’s expectations regarding the timing of Onconova’s and investigator-initiated clinical development and data presentation plans, and the mechanisms and indications for Onconova’s product candidates. Onconova has attempted to identify forward-looking statements by terminology including "believes," "estimates," "anticipates," "expects," "plans," "intends," "may," "could," "might," "will," "should," “preliminary,” “encouraging,” "approximately" or other words that convey uncertainty of future events or outcomes. Although Onconova believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors, including the success and timing of Onconova's clinical trials, investigator-initiated trials and regulatory agency and institutional review board approvals of protocols, Onconova’s collaborations, market conditions and those discussed under the heading "Risk Factors" in Onconova's most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. Any forward-looking statements contained in this release speak only as of its date. Onconova undertakes no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events.

Company Contact:
Avi Oler
Onconova Therapeutics, Inc.
267-759-3680
ir@onconova.us
https://www.onconova.com/contact/

Investor Contact:
Bruce Mackle
LifeSci Advisors, LLC
646-889-1200
bmackle@lifesciadvisors.com

ONCONOVA THERAPEUTICS, INC.
Condensed Consolidated Balance Sheets
(in thousands)

	September 30				December 31,
		2021				2020
Assets	(unaudited)
Current assets:
Cash and cash equivalents	$	59,378			$	19,025
Receivables		29				37
Prepaid expenses and other current assets		529				722
Total current assets		59,936				19,784
Property and equipment, net		42				52
Other non-current assets		12				150
Total assets	$	59,990			$	19,986
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	4,050			$	4,833
Accrued expenses and other current liabilities		2,749				4,962
Deferred revenue		226				226
Total current liabilities		7,025				10,021
Warrant liability		-				321
Deferred revenue, non-current		3,299				3,469
Total liabilities		10,324				13,811
Stockholders' equity:
Preferred stock		-				-
Common stock		209				124
Additional paid in capital		490,418				434,593
Accumulated other comprehensive (loss) income		(6	)			14
Accumulated deficit		(440,955	)			(428,556	)
Total stockholders' equity		49,666				6,175
Total liabilities and stockholders' equity	$	59,990			$	19,986

ONCONOVA THERAPEUTICS, INC.
Condensed Consolidated Statements of Operations (unaudited)
(in thousands, except share and per share amounts)

	Three Months Ended September 30,								Nine months months ended September 30,
		2021				2020				2021				2020
Revenue	$	57			$	66			$	170			$	174
Operating expenses:
General and administrative		2,284				2,147				7,351				6,548
Research and development		1,763				4,193				5,552				12,364
Total operating expenses		4,047				6,340				12,903				18,912
Loss from operations		(3,990	)			(6,274	)			(12,733	)			(18,738	)
Change in fair value of warrant liability		530				56				321				(63	)
Other income (loss,) net		7				(23	)			13				73
Net loss		(3,453	)			(6,241	)			(12,399	)			(18,728	)
Net loss per share of common stock, basic and diluted	$	(0.22	)		$	(0.52	)		$	(0.80	)		$	(1.65	)
Basic and diluted weighted average shares outstanding		15,979,180				12,058,508				15,463,720				11,353,169

FAQ

What were Onconova Therapeutics' earnings results for Q3 2021?

Onconova reported a net loss of $3.5 million for Q3 2021, which is an improvement compared to a net loss of $6.2 million in Q3 2020.

What significant advancements did Onconova announce in their pipeline?

Onconova highlighted ongoing Phase 1 trials of narazaciclib with no dose-limiting toxicities and promising results from the rigosertib trial in KRAS+ non-small cell lung cancer.

How much cash does Onconova have as of September 30, 2021?

Onconova reported cash and cash equivalents of $59.4 million as of September 30, 2021, enough to fund business operations for over two years.

What is the future outlook for narazaciclib?

Onconova plans to initiate a Phase 2 safety and efficacy study for narazaciclib in the second half of 2022.

What notable financial activity occurred for Onconova in Q3 2021?

Onconova raised $21 million in gross proceeds through an underwritten public offering during Q3 2021.