Sesen Bio Reports Third Quarter 2018 Financial Results and Planned VISTA Trial Readouts

Sesen Bio, Inc. (Nasdaq: SESN), a late-stage clinical company developing targeted fusion protein therapeutics for the treatment of people with cancer, today reported operating results for the third quarter ended September 30, 2018 and recent highlights from its development program for Vicinium for patients with high-grade non-muscle invasive bladder cancer (NMIBC).

2018 has been a year of focused execution for Sesen Bio, led by the advancement of the Phase 3 program for Vicinium for patients with NMIBC, said Dr. Thomas Cannell, president and chief executive officer of Sesen Bio. NMIBC is a devastating disease and there remains just one recommendation for patients who do not respond or become refractory to todays standard-of-care treatment: complete bladder removal. Our goal is to help save this essential organ and provide a meaningful treatment option for patients with BCG-unresponsive NMIBC. Our Phase 3 registration clinical trial is well-designed and preliminary data reported earlier this year suggest that Vicinium is active and has a favorable safety profile, consistent with our Phase 2 experience. We look forward to assessing six-month data from the trial next month and twelve-month data in mid-2019. If the VISTA Trial is successful, we believe Viciniumcould change the treatment outlook for patients with NMIBC, bringing us closer to achieving our mission of saving and renewing the lives of patients with cancer.

Recent Highlights

  • In September 2018, at the Global Congress on Bladder Cancer 2018, Sesen Bio presented a biomarker update from its Phase 3 VISTA Trial data showing that all screened patient samples expressed EpCAM, the molecular target of Vicinium.
  • In October 2018, the company entered into an agreement with FUJIFILM Diosynth Biotechnologies U.S.A., Inc. to provide supply services in support of the manufacturing of Vicinium for the treatment of high-grade NMIBC. The Agreement facilitates a transfer of manufacturing technology from Sesen Bio to Fujifilm.

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  • Sesen Bio anticipates reporting six-month data from the ongoing Phase 3 VISTA Trial in December 2018. A conference call will be held to review the data, with details to follow.

Third Quarter 2018 Financial Results

  • Cash Position: Cash and cash equivalents were $57.9 million as of September 30, 2018, compared to $11.3 million as of September 30, 2017.
  • Revenue: There was no revenue for the three-month periods ended September 30, 2018 and 2017, respectively, as no revenue triggering milestones were achieved during either period under the companys license agreement with F. Hoffmann-La Roche Ltd and Hoffmann-La Roche Inc. (Roche).
  • R&D Expenses: Research and development expenses were $3.4 million for the three months ended September 30, 2018, compared to $3.6 million for the same period in 2017. The decrease was due primarily to a reduction in Vicinium-related development expenses.
  • G&A Expenses: General and administrative expenses were $3.8 million for the three months ended September 30, 2018, compared to $1.6 million for the same period in 2017. The increase was due primarily to an increase in professional fees as well as higher personnel-related expenses.
  • Net Loss: Net loss was $14.0 million, or $0.18 per share, for the three months ended September 30, 2018, compared to net loss of $9.1 million, or $0.37 per share, for the same period in 2017. The increase was due primarily to the change in the fair value of contingent consideration and increased general and administrative expenses.
  • Financial Guidance: Based on current operating plans, Sesen Bio believes it will have capital sufficient to fund its current operating plans into 2020.

About Sesen Bio Sesen Bio, Inc. is a late-stage clinical company advancing targeted fusion protein therapeutics for the treatment of people with cancer. The companys lead program, Vicinium, also known as VB4-845, is currently in a Phase 3 registration trial, the VISTA Trial, for the treatment of high-grade non-muscle invasive bladder cancer. Twelve-month data from the trial are anticipated in mid-2019. Vicinium incorporates a tumor-targeting antibody fragment and a protein cytotoxic payload into a single protein molecule designed to selectively and effectively kill cancer cells, while minimizing toxicity to non-cancerous bladder cells. For more information, please visit the companys website at www.sesenbio.com.

Cautionary Note on Forward-Looking Statements Any statements in this press release about future expectations, plans and prospects for the Company, the Companys strategy, future operations, and other statements containing the words anticipate, believe, estimate, expect, intend, may, plan, predict, project, target, potential, will, would, could, should, continue, and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties inherent in the initiation and conduct of clinical trials, the possibility that the three-month or six-month data of the Phase 3 VISTA Trial are not indicative of final clinical results and final clinical trial results may not be positive with regard to the safety or efficacy of Vicinium, our ability to successfully develop our product candidates and complete our planned clinical programs, our ability to obtain marketing approvals for our product candidates, expectations regarding our ongoing clinical trials, availability and timing of data from clinical trials, whether interim results from a clinical trial will be predictive of the final results of the trial or results of early clinical studies will be indicative of the results of future studies, the adequacy of any clinical models, expectations regarding regulatory approvals, expectations regarding the adequacy of our existing capital resources to fund our operations into 2020 and other factors discussed in the Risk Factors section of the Companys Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent the Companys views as of the date hereof. The Company anticipates that subsequent events and developments will cause the Companys views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Companys views as of any date subsequent to the date hereof.

 

SESEN BIO, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands)

           
September 30, December 31,
2018 2017
 
Assets
Current assets:
Cash and cash equivalents $ 57,856 $ 14,680
Prepaid expenses and other current assets   1,529     301  

Total current assets

59,385 14,981

Property and equipment, net

365 522
Restricted cash 20 10
Intangible assets 46,400 46,400
Goodwill 13,064 13,064
Other assets   61     120  
Total assets $ 119,295   $ 75,097  
 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable $ 1,391 $ 907
Accrued expenses   5,170     3,813  

Total current liabilities

6,561 4,720
Other liabilities 311 215
Deferred tax liability 12,528 12,528
Contingent consideration 49,500 39,600
 
Stockholders’ equity:
Common stock 77 35
Additional paid-in capital 229,585 170,330
Accumulated deficit   (179,267 )   (152,331 )
Total stockholders’ equity   50,395     18,034  
Total liabilities and stockholders’ equity $ 119,295   $ 75,097  
 
 

SESEN BIO, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) (in thousands, except per share data)

                 
Three Months Ended September 30, Nine Months Ended September 30,

2018

2017

2018

2017

 
Total revenue $ $ $ $ 425
Operating expenses:
Research and development 3,372 3,619 9,406 9,402
General and administrative 3,825 1,631 8,128 6,085
Loss from change in fair value of contingent consideration   7,200     3,900     9,900     7,600  

Total operating expenses

 

  14,397     9,150     27,434     23,087  
Loss from operations (14,397 ) (9,150 ) (27,434 ) (22,662 )
Other income, net   382     45     498     180  
Net loss and comprehensive loss $ (14,015 ) $ (9,105 ) $ (26,936 ) $ (22,482 )
Net loss per share basic and diluted $ (0.18 ) $ (0.37 ) $ (0.48 ) $ (0.91 )

Weighted-average number of common shares used in net loss per share basic and diluted

  77,030     24,691     56,526     24,663  

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