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Purple Biotech Reports First Quarter 2024 Financial Results

REHOVOT, Israel, May 21, 2024 (GLOBE NEWSWIRE) — Purple Biotech Ltd. (“Purple Biotech” or “the Company”) (NASDAQ/TASE: PPBT), a clinical-stage company developing first-in-class therapies that harness the power of the tumor microenvironment to overcome tumor immune evasion and drug resistance, today announced financial results for the three months ended March 31, 2024.

“We look forward to presenting compelling interim Phase 2 CM24 data for the treatment of pancreatic cancer at ASCO 2024, where we were selected for a Late Breaking Abstract presentation. These data suggest an exciting medical direction, demonstrating potentially reduced risk of disease progression and death in a very difficult to treat indication. Following the announcement of interim results at ASCO on June 1, 2024, we expect to present topline data before the end of year; these clinical milestones will potentially mark significant catalysts for the value of our development pipeline,” stated Gil Efron, Chief Executive Officer of Purple Biotech. “We also continue to make solid progress on NT219, which is headed into a Phase 2 trial in head and neck cancer, as well as on our tri-specific antibody platform following a Pre-IND meeting with the FDA that provided a clear path forward for our development plan through Phase 1.”

Q1 2024 and Recent Clinical & Corporate Highlights:

The American Society of Clinical Oncology (ASCO) selected Purple Biotech’s poster titled “Interim results of the Randomized Phase 2 Cohort of Study FW-2020-01 Assessing the Efficacy, Safety and Pharmacodynamics of CM24 in combination with Nivolumab and Chemotherapy in Advanced/metastatic Pancreatic Cancer” for a Late Breaking presentation at ASCO’s 2024 Annual Meeting.

The Phase 2 study is evaluating CM24 in combination with Bristol Myers Squibb’s PD-1 inhibitor nivolumab plus standard of care (SoC) chemotherapy in second line pancreatic ductal adenocarcinoma (PDAC) patients compared to SoC chemotherapy alone. The experimental arms of the study dosed patients with CM24 plus nivolumab and one of two SoC chemotherapies, gemcitabine/nab-paclitaxel or Nal-IRI/5FU/LV, while the control arms dosed with either respective chemotherapy alone. Approximately 60 patients have been enrolled in the randomized study across 18 centers in the U.S., Spain and Israel. Data from the gemcitabine/nab-paclitaxel arm is not yet mature for analysis.

In a presentation at ESMO-TAT 2024, NT219 in combination with cetuximab demonstrated safety and early activity in patients with Recurrent/Metastatic Squamous Cell Carcinoma of the Head and Neck (R/M SCCHN) with dose-proportional PK values. Of the 7 evaluable R/M SCCHN patients treated at the maximum doses of 50 and 100mg/kg in which anti-tumor activity was observed, the tumor objective response rate (ORR) was 29% and the disease control rate (DCR) was 71%, both highly encouraging results. 100mg/kg was determined to be the recommended Phase 2 dose for NT219 in combination with cetuximab in the treatment of R/M SCCHN.

Key findings were shared in two poster presentations at the American Association for Cancer Research (AACR) 2024 annual meeting in San Diego, California. NT219 was found to significantly suppress cancer stem cells, suggesting a novel therapy and new mechanism to combat cancer recurrence and overcoming resistance to KRAS(G12C) and KRAS(G12D) inhibitors in NSCLC and PDAC cells, respectively. NT219 reverses acquired resistance to KRAS inhibitors by addressing both cellular escape pathways and cancer stem cell mechanisms. Potential biomarkers for NT219 therapy were presented in an additional poster at AACR 2024, and on-target effects of the therapy were demonstrated in patients’ tumors. Analysis of patients’ biopsies pre-treatment suggests activated IGF1R and STAT3 as potential biomarkers for this therapy.

In preparation for its upcoming Phase 2 trial of NT219, Purple Biotech convened a Scientific Advisory Board (SAB) specifically focused on the R/M SCCHN indication. The SAB is comprised of head and neck cancer key opinion leaders including oncologists, researchers, and investigators. The SAB has provided valuable guidance on clinical studies for NT219 in combination with cetuximab as a second/third line treatment and potentially in combination with a PD1 inhibitor as a first line treatment.

Purple Biotech’s tri-specific platform is a T cell engager via the anti-CD3 arm, and an NK cell engager via the anti-NKG2A arm, which also functions as an important immune checkpoint inhibitor of both NK cells and specific subsets of T cells; this tri-specific approach unleashes both innate and adaptive immune systems against the tumor. Preclinical studies demonstrated an anti-tumor response and synergistic effects of the NK cell engager with the conditionally-activated T cell engager. The tri-body platform’s cleavable capping technology confines therapeutic activity to the local tumor micro environment, which increases the anticipated therapeutic window in patients.

Financial Results for the Quarter Ended March 31, 2024

Research and Development Expenses were $3.4 million for the three months ended March 31, 2024, a decrease of $0.1 million, or 2.8%, compared to $3.5 million in the same period of 2023.

Sales, General and Administrative Expenses were $1 million for the three months ended March 31, 2024, compared to $1.6 million in the same period of 2023, a decrease of $0.6 million.

Operating Loss was $4.5 million for the three months ended March 31, 2024, a decrease of $0.6 million, or 11.8%, compared to $5.1 million in the same period of 2023, mainly due to the decrease in the sales, general, and administrative expenses.

Adjusted Operating Loss (as reconciled below) was $4.2 million for the three months ended March 31, 2024, a decrease of $0.2 million, compared to $4.4 million in the same period of 2023.

Net Loss was $3.8 million, or $0.14 per basic and diluted ADS for the three months ended March 31, 2024, compared to a net loss of $4.9 million, or $0.25 per basic and diluted ADS, in the same period of 2023. The decrease in net loss was mainly due to a decrease of $0.6 million in operating expenses and an increase of $0.5 million in finance income, net.

Adjusted Net Loss (as reconciled below) for the three months ended March 31, 2024, was $4.1 million, a decrease from $4.2 million in the first three months ended March 31, 2023.

As of March 31, 2024, Purple Biotech had cash and cash equivalents and short-term deposits of $10.8 million. This cash position provides a cash runway into the first quarter of 2025.

During the three months ended March 31, 2024, the Company sold, under the Open Market Sale AgreementSM with Jefferies LLC, approximately 504,000 ADSs, at an average price of $0.742 per ADS. Net proceeds to the Company were approximately $358,000, net of issuance expenses.

Non-IFRS Financial Measures

This press release includes information about certain financial measures that are not prepared in accordance with International Financial Reporting Standards (“IFRS”), including adjusted operating loss and adjusted net loss. These non-IFRS measures are not based on any standardized methodology prescribed by IFRS and are not necessarily comparable to similar measures presented by other companies. Adjusted operating loss and adjusted net loss adjust for share-based compensation expenses. The Company’s management and board of directors utilize these non-IFRS financial measures to evaluate the Company’s erformance. The Company provides these non-IFRS measures of the Company’s performance to investors because its management believes that these non- IFRS financial measures, when viewed with the Company’s results under IFRS and the accompanying reconciliations, are useful in identifying underlying trends in ongoing operations. However, these non-IFRS measures are not measures of financial performance under IFRS and, accordingly, should not be considered as alternatives to IFRS measures as indicators of operating performance. Further, these non-IFRS measures should not be considered measures of the Company’s liquidity. A reconciliation of certain IFRS to non-IFRS financial measures has been provided in the tables included in this press release.

About Purple Biotech
Purple Biotech Ltd. (NASDAQ/TASE: PPBT) is a clinical-stage company developing first-in-class therapies that seek to overcome tumor immune evasion and drug resistance. The Company’s oncology pipeline includes NT219, CM24 and IM1240. NT219 is a dual inhibitor, novel small molecule that simultaneously targets IRS1/2 and STAT3. A Phase 1 dose escalation study is being concluded and a phase 2 study of NT219 at its recommended Phase 2 level in combination with cetuximab in patients with recurrent and/or metastatic SCCHN is planned. CM24 is a humanized monoclonal antibody that blocks CEACAM1, an immune checkpoint protein that supports tumor immune evasion and survival through multiple pathways. The Company is advancing CM24 as a combination therapy with anti-PD-1 checkpoint inhibitors in a Phase 2 study for the treatment of pancreatic ductal adenocarcinoma (PDAC). The Company has entered into a clinical collaboration agreement with Bristol Myers Squibb for the Phase 2 clinical trials to evaluate the combination of CM24 with the PD-1 inhibitor nivolumab in addition to chemotherapy. Additionally, the Company is advancing a preclinical platform of a conditionally-activated tri-specific antibody that engages both T cells and NK cells to induce a strong, localized immune response within the tumor microenvironment. The cleavable capping technology confines the compound’s therapeutic activity to the local tumor microenvironment, and thereby potentially increases the anticipated therapeutic window in patients. The third arm specifically targets the Tumor Associated Antigen (TAA). The technology presents a novel mechanism of action by unleashing both Innate and adaptive immune systems to mount an optimal anti-tumoral immune response. IM1240 is the first tri-specific antibody in development that targets 5T4, which is expressed in a variety of solid tumors and is correlated with advanced disease, increased invasiveness and poor clinical outcomes. The Company’s corporate headquarters are located in Rehovot, Israel. For more information, please visit https://purple-biotech.com/.

Forward-Looking Statements and Safe Harbor Statement 
Certain statements in this press release that are forward-looking and not statements of historical fact are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements that are not statements of historical fact, and may be identified by words such as “believe”, “expect”, “intend”, “plan”, “may”, “should”, “could”, “might”, “seek”, “target”, “will”, “project”, “forecast”, “continue” or “anticipate” or their negatives or variations of these words or other comparable words or by the fact that these statements do not relate strictly to historical matters. You should not place undue reliance on these forward-looking statements, which are not guarantees of future performance. Forward-looking statements reflect our current views, expectations, beliefs or intentions with respect to future events, and are subject to a number of assumptions, involve known and unknown risks, many of which are beyond our control, as well as uncertainties and other factors that may cause our actual results, performance or achievements to be significantly different from any future results, performance or achievements expressed or implied by the forward-looking statements. Important factors that could cause or contribute to such differences include, among others, risks relating to: the plans, strategies and objectives of management for future operations; product development for NT219, CM24 and IM1240; the process by which such early stage therapeutic candidates could potentially lead to an approved drug product is long and subject to highly significant risks, particularly with respect to a joint development collaboration; the fact that drug development and commercialization involves a lengthy and expensive process with uncertain outcomes; our ability to successfully develop and commercialize our pharmaceutical products; the expense, length, progress and results of any clinical trials; the impact of any changes in regulation and legislation that could affect the pharmaceutical industry; the difficulty in receiving the regulatory approvals necessary in order to commercialize our products; the difficulty of predicting actions of the U.S. Food and Drug Administration or any other applicable regulator of pharmaceutical products; the regulatory environment and changes in the health policies and regimes in the countries in which we operate; the uncertainty surrounding the actual market reception to our pharmaceutical products once cleared for marketing in a particular market; the introduction of competing products; patents obtained by competitors; dependence on the effectiveness of our patents and other protections for innovative products; our ability to obtain, maintain and defend issued patents; the commencement of any patent interference or infringement action against our patents, and our ability to prevail, obtain a favorable decision or recover damages in any such action; and the exposure to litigation, including patent litigation, and/or regulatory actions, and other factors that are discussed in our Annual Report on Form 20-F for the year ended December 31, 2023 and in our other filings with the U.S. Securities and Exchange Commission (“SEC”), including our cautionary discussion of risks and uncertainties under “Risk Factors” in our Registration Statements and Annual Reports. These are factors that we believe could cause our actual results to differ materially from expected results. Other factors besides those we have listed could also adversely affect us. Any forward-looking statement in this press release speaks only as of the date which it is made. We disclaim any intention or obligation to publicly update or revise any forward-looking statement or other information contained herein, whether as a result of new information, future events or otherwise, except as required by applicable law. You are advised, however, to consult any additional disclosures we make in our reports to the SEC, which are available on the SEC’s website, https://www.sec.gov.

CONTACTS:

Company Contact:
Lior Fhima
Chief Financial Officer
IR@purple-biotech.com

Purple Biotech Ltd.

Consolidated Unaudited Statements of Financial Position as of:

    March 31
    December 31
 
    2024
    2023
 
      USD thousands       USD thousands  
Assets                
Cash and cash equivalents     9,985       14,489  
Short term deposits     848       850  
Other investments     21       73  
Other current assets     548       376  
                 
Total current assets     11,402       15,788  
                 
Non-current assets                
Right to use assets     278       316  
Fixed assets, net     139       154  
Intangible assets     28,044       28,044  
                 
Total non – current assets     28,461       28,514  
                 
Total assets     39,863       44,302  
                 
Liabilities                
Lease liability – short term     186       188  
Accounts payable     3,477       3,532  
Other payables     2,801       3,463  
Warrants     2,046       2,518  
                 
Total current liabilities     8,510       9,701  
                 
Non-current liabilities                
                 
Lease liability     121       163  
Post-employment benefit liabilities     141       141  
                 
Total non–current liabilities     262       304  
                 
Equity                
Share capital, no par value            
Share premium     133,696       133,184  
Receipts on account of warrants     28,467       28,467  
Capital reserve for share-based payments     10,166       10,088  
Capital reserve from transactions with related parties     761       761  
Capital reserve from hedging     4       19  
Capital reserve from transactions with non-controlling interest     (859 )     (859 )
Accumulated loss     (141,215 )     (137,453 )
                 
Equity attributable to owners of the Company     31,020       34,207  
Non-controlling interests     71       90  
Total equity     31,091       34,297  
                 
Total liabilities and equity     39,863       44,302  
   

Purple Biotech Ltd.

Consolidated Unaudited Statement of Operations for the three months ended

    March 31
    March 31
 
    2024
    2023
 
      USD thousands       USD thousands  
                 
Research and development expenses     3,423       3,498  
Sales, general and administrative expenses     1,043       1,624  
                 
Operating loss     4,466       5,122  
                 
                 
Finance expenses     17       59  
Finance income     (702 )     (278 )
                 
Finance income, net     (685 )     (219 )
                 
Loss for the period     3,781       4,903  
                 
Other Comprehensive Loss:                
Items that will be transferred to profit or loss:                
Loss from cash flow hedges     15       1  
                 
Total comprehensive loss for the period     3,796       4,904  
                 
Loss attributable to:                
Owners of the Company     3,762       4,878  
Non-controlling interests     19       25  
      3,781       4,903  
                 
Total comprehensive loss attributable to                
Owners of the Company     3,777       4,879  
Non-controlling interests     19       25  
      3,796       4,904  
                 
Loss per share data                
                 
Basic and diluted loss per ADS – USD     0.14       0.25  
                 
Number of ADSs used in calculating basic and diluted loss per ADS     27,113,434       19,838,608  
                 
                 

Reconciliation of Adjusted Operating Loss for the three months ended

    March 31      March 31   
    2024      2023   
      USD thousands       USD thousands  
Operating loss for the period     4,466       5,122  
Less ESOP expenses     (266 )     (752 )
                 
      4,200       4,370  
 


Reconciliation of Adjusted Net Loss for the three months ended

    March 31
    March 31
 
    2024
    2023
 
      USD thousands       USD thousands  
Net loss for the period     3,781       4,903  
Less ESOP expenses     (266 )     (752 )
Less finance income from financial instruments     607        
                 
      4,122       4,151  
   

 
Consolidated Unaudited Statements of Cash Flow

    For the three months ended
      March 31,
 
      2024       2023  
    USD thousands   USD thousands
         
Cash flows from operating activities:                
Loss for the period     (3,781 )     (4,903 )
                 
Adjustments:                
Depreciation     48       46  
Finance income, net     (685 )     (219 )
Share-based payments     266       752  
                 
      (4,152 )     (4,324 )
                 
Changes in assets and liabilities:                
Changes in other investments and other current assets     (213 )     (329 )
Changes in accounts payable     (46 )     250  
Changes in other payables     (671 )     (1,500 )
Changes in post-employment benefit liabilities           (161 )
                 
      (930 )     (1,740 )
                 
Net cash used in operating activities     (5,082 )     (6,064 )
                 
Cash flows from investing activities:                
Acquisition of subsidiary, net of cash acquired           (3,549 )
Proceed from other investments     187        
Decrease in short term deposits           15,803  
Interest received     125       352  
Acquisition of fixed assets           (3 )
                 
Net cash provided by investing activities     312       12,603  
                 
Cash flows from financing activities:                
Proceeds from issuance of ADSs     374       395  
ADS issuance expenses paid     (50 )     (75 )
Repayment of lease liability     (45 )     (42 )
Interest paid     (11 )     (14 )
                 
Net cash provided by financing activities     268       264  
Net increase in cash and cash equivalents     (4,502 )     6,803  
Cash and cash equivalents at the beginning of the period     14,489       15,030  
Effect of translation adjustments on cash and equivalents     (2 )     50  
                 
Cash and cash equivalents at end of the period     9,985       21,883  

 


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