Morphic Announces Corporate Highlights and Financial Results for the Full Year 2019
2019 and Recent Corporate Highlights
- Completed a successful Initial Public Offering with gross proceeds of
- Announced a partnership with Janssen for the discovery of novel oral integrin inhibitors
- Presented preclinical data supporting MORF-057 as an oral inhibitor candidate targeting α4β7; IND expected in mid-2020
- Advanced development of MORF-720 in IPF with AbbVie, IND anticipated by year-end 2020
- Year-end cash, cash equivalents and marketable securities of
$237.0 millionexpected to fund operating expenses and capital expenditures requirements at least through 2022
“Morphic Therapeutic made tremendous progress in our mission to develop oral integrin therapeutics during 2019 across both the developmental and financial aspects of our business. Notably, we completed a successful IPO in
Financial Results for the Full Year 2019
- Net loss for the year ended
December 31, 2019, was $43.3 millionor $2.69per share compared to a net loss of $23.8 millionor $22.28per share for the year ended December 31, 2018.
- Revenue was
$17.0 millionfor the year ended December 31, 2019, compared to $3.4 millionfor the year ended December 31, 2018. The increase was due to collaboration agreements signed with AbbVie in October 2018and Janssen in February 2019.
- Research and development expenses were
$53.7 millionfor the year ended December 31, 2019, as compared to $22.6 millionfor the year ended December 31, 2018. The increase was primarily attributable to higher development and manufacturing costs associated with our lead product candidates, MORF-057 and MORF-720, as well as increased personnel-related costs to support continued progress with the company’s pipeline.
- General and administrative expenses were
$10.2 millionfor the year ended December 31, 2019, compared to $5.4 millionfor the year ended December 31, 2018. The increase year-over-year was primarily attributable to increased headcount and higher professional and consulting fees associated with ongoing business activities and Morphic’s costs to operate as a public company.
About Morphic Therapeutic
Morphic Therapeutic is a biopharmaceutical company developing a new generation of oral integrin therapies for the treatment of serious chronic diseases, including autoimmune, cardiovascular and metabolic diseases, fibrosis and cancer. In collaboration with AbbVie, Janssen, and Schrödinger, Morphic is advancing its pipeline and discovery activities using its proprietary MInT technology platform which leverages the Company’s unique understanding of integrin structure and biology. For more information, visit www.morphictx.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking” statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to: Morphic’s plan to develop and commercialize oral small-molecule integrin therapeutics and Morphic’s expectations about timing and ability to obtain regulatory approvals for MORF-720, MORF-057, and other candidates in development and the sufficiency of our cash, cash equivalents and investments to fund our operations. Statements including words such as “believe,” “plan,” “continue,” “expect,” “will be,” “develop,” “signal,” “potential,” or “ongoing” and statements in the future tense are forward-looking statements. These forward-looking statements involve risks and uncertainties, as well as assumptions, which, if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements are subject to risks and uncertainties that may cause Morphic’s actual activities or results to differ significantly from those expressed in any forward-looking statement, including risks and uncertainties related to Morphic’s ability to develop, obtain regulatory approval for and commercialize MORF-720, MORF-057, and other product candidates, the timing and results of preclinical studies and clinical trials, Morphic’s ability to protect intellectual property; and other risks set forth in our filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof and Morphic specifically disclaims any obligation to update these forward-looking statements or reasons why actual results might differ, whether as a result of new information, future events or otherwise, except as required by law.
|Condensed Consolidated Statements of Operations|
|(in thousands, except share and per share data)|
|Collaboration revenue - AbbVie||$||10,797||$||3,358|
|Collaboration revenue - Janssen||6,180||—|
|Research and development||53,732||22,631|
|General and administrative||10,233||5,355|
|Total operating expenses||63,965||27,986|
|Loss from operations||(46,988||)||(24,628||)|
|Interest income, net||4,666||871|
|Other expense, net||(94||)||(74||)|
|Total other income, net||4,572||797|
|Loss before provision for income taxes||(42,416||)||(23,831||)|
|Provision for income taxes||(912||)||—|
|Net loss per share, basic and diluted||(2.69||)||(22.28||)|
|Weighted average common shares outstanding, basic and diluted||16,101,928||1,069,762|
|Condensed Consolidated Balance Sheets|
|Cash, cash equivalents and marketable securities||$||237,016||$||185,901|
|Other current assets||6,557||1,222|
|Total current assets||243,573||187,123|
|Liabilities, Convertible Preferred Stock and Stockholders' Equity (Deficit)|
|Convertible preferred stock||—||139,809|
|Total stockholders' equity (deficit)||140,918||(52,552||)|
|Total liabilities, convertible preferred stock and stockholders' equity (deficit)||$||247,435||$||189,305|