Transgene posts second quarter €15.3M net loss

Transgene has posted net loss amounted to €15.3 million for the first half of 2019 compared to €14.9 million for the same period in 2018, while its  cash, cash equivalents and other financial assets amounted to €12.8 million versus €16.9 million as of December 31, 2018.

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STRASBOURG, France–(BUSINESS WIRE)–#Transgene—Conference call scheduled today at 6:30 p.m. CET (in English)

Transgene (Euronext Paris: TNG), a biotech company that designs and develops virus-based immunotherapeutics against cancer, announces its financial results for the six-month period ended June 30, 2019, and provides an update on its portfolio.

Philippe Archinard, Chairman and Chief Executive Officer of Transgene, commented:

“Transgene has made significant progress with its new technology platforms, its clinical pipeline, and in strengthening its financial position in 2019. Our collaboration with AstraZeneca provides strong validation of the potential of the multi-armed OVs that we are developing thanks to our innovative Invir.IO platform. I am also pleased that we have gained regulatory clearance to begin the clinical development of our lead myvac™ individualized immunotherapy TG4050 in both the US and Europe before the end of 2019.

Following the negative interim analysis of the PHOCUS trial of Pexa-Vec, we have decided to focus our oncolytic development efforts in indications other than hepatocellular carcinoma. We are looking forward to announcing important clinical data for our candidates TG4001, TG4010 and TG6002 before year end and initiating soon new trials with TG4050 and oncolytic products.

With financial visibility until 2022, Transgene is well placed to leverage these clinical data and move its novel OV and immunotherapy technology platforms into the clinic.” Operating revenues amounted to €4.9 million for the first six months of 2019 compared to €3.6 million for the same period in 2018.

• Revenues from collaboration and licensing agreements amounted to €1.5 million for the first six months of 2019 versus €0.6 million in the same period in 2018. Under the collaboration agreement with AstraZeneca on Invir.IO® program, Transgene received, in May 2019, a €8.9 million payment. This initial payment is recognized in income against the progress of the associated activities until 2020. As of June 30, 2019, the income recognized was €0.7 million.

• The research tax credit amounted to €3.1 million for the first half of 2019, compared to €2.8 million for the first half of 2018.

Research and Development (R&D) expenses amounted to €14.7 million in the first half of 2019 compared to €13.8 million for the same period in 2018. External expenses for clinical projects increased to €4.7 million from €3.8 million in the first half of 2018, as we continued to progress the clinical development of our products.

General and administrative expenses amounted to €3.6 million for the first half of 2019 compared to €3.0 million for the same period in 2018.

Net loss amounted to €15.3 million for the first half of 2019 compared to €14.9 million for the same period in 2018.

As of June 30, 2019, the Company’s cash, cash equivalents and other financial assets amounted to €12.8 million versus €16.9 million as of December 31, 2018. In addition, Transgene received the net proceed of the rights issue (€47.1 million) on July 4, 2019, which significantly strengthened the Company’s cash position.

Transgene’s cash burn amounted to €4.1 million in the first half of 2019, compared with €8.3 million for the same period in 2018.

Transgene confirms its net cash burn target of approximately €20 million for 2019.

“Our financials for the first half of 2019 are in line with our expectations as we continue to progress our clinical and preclinical assets. The success of our rights issue in June and July 2019 has extended our financial visibility until 2022,” commented Jean-Philippe Del, Chief Financial Officer of Transgene.