UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 12, 2019
Morphic Holding, Inc.
(Exact Name of Registrant as Specified in its Charter)
Delaware |
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001-38940 |
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47-3878772 |
(State or other jurisdiction of |
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(Commission |
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(I.R.S. Employer |
35 Gatehouse Drive, A2 |
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02451 |
(Address of principal executive offices) |
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(Zip Code) |
Registrants telephone number, including area code: (781) 996-0955
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
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Trading |
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Name of each exchange on which registered |
Common Stock, $0.0001 par value per share |
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MORF |
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Nasdaq Global Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company x
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
On August 12, 2019, Morphic Holding, Inc. issued a press release announcing its financial results for the quarter ended June 30, 2019. A copy of the press release is attached as Exhibit 99.1 to this report.
The information in this Item 2.02, including Exhibit 99.1 to this report, shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended (the Securities Act). The information contained in this Item 2.02 and in the accompanying Exhibit 99.1 shall not be incorporated by reference into any other filing under the Exchange Act or under the Securities Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit |
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Description |
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99.1 |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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MORPHIC HOLDING, INC. | |
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Date: August 12, 2019 |
By: |
/s/ Robert E. Farrell, Jr. |
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Robert E. Farrell, Jr. |
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Vice President of Finance and Operations and Treasurer |
Morphic Announces Corporate Highlights and Second Quarter 2019 Financial Results
-Successful IPO provides more than $100 million in gross proceeds to advance leading oral integrin
development pipeline and MInT discovery platform
- Company remains on track to file INDs for its two lead programs
WALTHAM, Mass., Aug. 12, 2019 (GLOBE NEWSWIRE) Morphic Therapeutic (NASDAQ: MORF), a biopharmaceutical company developing a new generation of oral integrin therapies for the treatment of serious chronic diseases, today reported corporate highlights and financial results for the second quarter of 2019.
Morphics 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 $100 million to an already strong balance sheet that we plan to use to accelerate the expansion of Morphics development pipeline and discovery activities. We believe we now have the financial and human resources to rapidly extend our leadership in integrin therapeutics, supported by our proprietary MInT technology platform and our unique expertise in integrin biology, said Praveen Tipirneni, M.D., president and chief executive officer of Morphic Therapeutic. The Morphic team looks forward to filing our first two Investigational New Drug (IND) applications for MORF-720 and the a4b7 program.
MORF-720 is Morphics most advanced candidate targeting the integrin avb6 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 AbbVie has an option to exclusively license the program.
The a4b7 program is Morphics wholly-owned program targeting the integrin a4b7 for the treatment of inflammatory bowel disease, a group of chronic autoimmune and inflammatory conditions of the gastrointestinal tract that include ulcerative colitis and Crohns 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.
· Appointed 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 June 30, 2019 was $9.4 million or $4.73 per share compared to a net loss of $6.2 million or $6.16 per unit for the same quarter last year.
· Revenue was $5.6 million for the quarter ended June 30, 2019 compared to $0 for the same quarter last year. The increase was due to collaboration agreements signed with AbbVie in October 2018 and Janssen in February 2019.
· Research and development expenses were $13.9 million for the quarter ended June 30, 2019, compared to $5.3 million in the same quarter last year. The $8.6 million increase 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 companys pipeline.
· General and administrative expenses were $2.0 million for the quarter ended June 30, 2019, compared to $1.0 million in the same quarter last year. The $1.0 million increase 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.
Morphics cash, cash equivalents, and marketable securities and shares outstanding as of June 30, 2019 do not include proceeds and shares issued in connection with Morphics IPO which closed on July 1, 2019. As of June 30, 2019, Morphic had cash, cash equivalents, and marketable securities of $170.4 million, compared to $185.9 million at the end of 2018. Morphic believes its cash, cash equivalents, and marketable securities balance as of June 30, 2019, and its net IPO proceeds of $96.3M after deducting underwriting discounts and commissions but before expenses, will be sufficient to fund operating expenses and capital expenditure requirements into at least the end of 2022.
Morphic Holding Inc.
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except unit, share, per unit and per share data)
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Three Months Ended |
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Six Months Ended |
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2019 |
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2018 |
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2019 |
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2018 |
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Collaboration Revenue |
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$ |
5,567 |
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$ |
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$ |
11,635 |
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$ |
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Operating expenses |
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Research and development |
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13,907 |
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$ |
5,293 |
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24,278 |
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9,577 |
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General and administrative |
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2,077 |
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972 |
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3,908 |
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1,906 |
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Total operating expenses |
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15,984 |
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6,265 |
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28,186 |
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11,483 |
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Loss from operations |
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(10,417 |
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(6,265 |
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(16,551 |
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(11,483 |
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Interest income, net |
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1,119 |
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34 |
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2,182 |
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73 |
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Total other income |
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1,119 |
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34 |
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2,182 |
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73 |
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Loss before provision for income taxes |
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(9,298 |
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(6,231 |
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(14,369 |
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(11,410 |
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Provision for income taxes |
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(135 |
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(264 |
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Net loss |
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$ |
(9,433 |
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$ |
(6,231 |
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$ |
(14,633 |
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$ |
(11,410 |
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Net loss per share, basic and diluted |
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$ |
(4.73 |
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$ |
(7.54 |
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Net loss per unit, basic and diluted |
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$ |
(6.16 |
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$ |
(11.28 |
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Weighted-average common shares outstanding - basic and diluted |
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1,992,410 |
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1,940,923 |
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Weighted-average common units outstanding - basic and diluted |
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1,011,227 |
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1,011,227 |
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Morphic Holding Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands)
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June 30, |
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December 31, |
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Assets |
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Cash, cash equivalents and marketable securities |
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$ |
170,405 |
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$ |
185,901 |
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Other current assets |
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2,381 |
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1,222 |
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Total current assets |
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172,786 |
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187,123 |
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Other assets |
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5,824 |
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2,182 |
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Total assets |
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$ |
178,610 |
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$ |
189,305 |
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Liabilities and Stockholders Equity |
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Current liabilities |
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$ |
43,530 |
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$ |
34,903 |
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Long-term liabilities |
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61,249 |
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67,145 |
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Total liabilities |
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104,779 |
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102,048 |
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Convertible preferred stock |
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139,809 |
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139,809 |
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Total stockholders deficit |
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(65,978 |
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(52,552 |
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Total liabilities, convertible preferred stock and stockholders equity |
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$ |
178,610 |
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$ |
189,305 |
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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 Companys 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: Morphics 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; Morphics ability to fund its operations; and Morphics 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 Morphics actual activities or results to differ significantly from those expressed in any forward-looking statement, including risks and uncertainties related to Morphics 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, Morphics 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.
Morphic Contact
Robert E. Farrell, Jr., VP Finance and Ops and Treasurer
bob.farrell@morphictx.com
781-996-0955
Media Contact
Tom Donovan, Ten Bridge Communications
tom@tenbridgecommunications.com
857-559-3397