Morphic Announces Corporate Highlights and Second Quarter 2019 Financial Results
- Successful IPO provides more than
- Company remains on track to file INDs for its two lead programs
“Morphic’s goal is to unlock the broad medical potential of integrin biology with the first orally administered, small-molecule integrin therapeutics. Our recent initial public offering added nearly
MORF-720 is Morphic’s most advanced candidate targeting the integrin αvβ6 to treat fibrosis through local inhibition of TGF-b, a key pro-fibrotic cytokine. Fibrosis is a common and progressive feature of most chronic diseases involving tissue injury and can lead to the failure of multiple organs, such as the lungs, liver, skin, and kidney. MORF-720 is being developed for the life-threatening lung disease idiopathic pulmonary fibrosis, and
The α4β7 program is Morphic’s wholly-owned program targeting the integrin α4β7 for the treatment of inflammatory bowel disease, a group of chronic autoimmune and inflammatory conditions of the gastrointestinal tract that include ulcerative colitis and Crohn's disease, among others.
Recent Corporate Highlights
- Completed a successful initial public offering (IPO) of common stock on The
Nasdaq Global Market, including full exercise of the underwriters’ option to purchase additional shares of common stock, generating gross proceeds of approximately $103.5 million, before deducting underwriting discounts and commissions and other estimated offering expenses.
Norbert Bischofberger, Ph.D., to the Morphic Board of Directors. Dr. Bischofberger is the former chief scientific officer and executive vice president of research and development for Gilead Sciences. During a career of nearly 30 years with Gilead, he oversaw the development of more than 25 medicines that transformed the treatment of serious pathogens or diseases including HIV, HCV and lymphoma.
Financial Results for Second Quarter 2019:
Net loss for the quarter ended
- Revenue was
$5.6 millionfor the quarter ended June 30, 2019compared to $0 for the same quarter last year. The increase was due to collaboration agreements signed with AbbViein October 2018and Janssen in February 2019.
- Research and development expenses were
$13.9 millionfor the quarter ended June 30, 2019, compared to $5.3 millionin the same quarter last year. The $8.6 millionincrease year-over-year reflects development and manufacturing costs associated with lead product candidate, MORF-720; research costs associated with preclinical studies; as well as increased personnel-related costs to support continued progress with the company’s pipeline.
- General and administrative expenses were
$2.0 millionfor the quarter ended June 30, 2019, compared to $1.0 millionin the same quarter last year. The $1.0 millionincrease year-over-year was primarily attributable to increased headcount and higher professional and consulting fees associated with ongoing business activities and preparing to operate as a public company.
Morphic’s cash, cash equivalents, and marketable securities and shares outstanding as of
|Morphic Holding Inc.|
|Condensed Consolidated Statements of Operations|
|(in thousands, except unit, share, per unit and per share data)|
|Three Months Ended
|Six Months Ended
|Research and development||13,907||$||5,293||24,278||9,577|
|General and administrative||2,077||972||3,908||1,906|
|Total operating expenses||15,984||6,265||28,186||11,483|
|Loss from operations||(10,417||)||(6,265||)||(16,551||)||(11,483||)|
|Interest income, net||1,119||34||2,182||73|
|Total other income||1,119||34||2,182||73|
|Loss before provision for income taxes||(9,298||)||(6,231||)||(14,369||)||(11,410||)|
|Provision for income taxes||(135||)||—||(264||)||—|
|Net loss per share, basic and diluted||$||(4.73||)||$||(7.54||)|
|Net loss per unit, basic and diluted||$||(6.16||)||$||(11.28||)|
|Weighted-average common shares outstanding - basic and diluted||1,992,410||1,940,923|
|Weighted-average common units outstanding - basic and diluted||1,011,227||1,011,227|
|Morphic Holding Inc.|
|Condensed Consolidated Balance Sheets|
|Cash, cash equivalents and marketable securities||$||170,405||$||185,901|
|Other current assets||2,381||1,222|
|Total current assets||172,786||187,123|
|Liabilities and Stockholders' Equity|
|Convertible preferred stock||139,809||139,809|
|Total stockholders' deficit||(65,978||)||(52,552||)|
|Total liabilities, convertible preferred stock and stockholders' equity||$||178,610||$||189,305|
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
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; the ability of α4β7-specific integrin inhibitors to treat inflammatory bowel disease and MORF-720 to treat idiopathic pulmonary fibrosis; Morphic’s ability to fund its operations; and Morphic’s expectations about timing and ability to obtain regulatory approvals for MORF-720 and α4β7-specific integrin inhibitors. Statements including words such as “looks forward to,” “believe,” “plan,” “continue,” “expect,” 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 and α4β7-specific integrin inhibitors 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.