Adicet Reports Second Quarter 2021 Financial Results and Provides Business Updates
- On track to report top-line interim data from ADI-001 Phase 1 study in Non-Hodgkin's Lymphoma (NHL) by the end of 2021
“Adicet continues to build momentum over the second quarter, following the initiation of our Phase 1 trial of our lead asset ADI-001 in non-Hodgkin’s lymphoma and the completion of a successful capital raise earlier this year. We believe we are in a strong position to execute on key upcoming milestones, including the first interim data readout for ADI-001, the first IND-cleared allogeneic CAR gamma-delta T cell therapy to reach human trials, which remains on track for later this year,” said
- Formation of
Scientific Advisory Board. In July, Adicet announced the formation of a SABcomprised of renowned scientific leaders in the fields of T cell biology, immunology and oncology. The SABwill support the advancement of the Company’s pipeline of “off-the-shelf” gamma delta T cell product candidates.
- Addition to
Russell2000® Index. In June, Adicet was added to the Russell2000® Index as part of the 2021 Russell indexes annual reconstitution. Russellindexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. Approximately $10.6 trillionin assets are benchmarked against Russell’s US indexes. Russellindexes are part of FTSE Russell, a leading global index provider.
Financial Results for Second Quarter 2021:
- Research and Development (R&D) Expenses: R&D expenses were
$10.6 millionfor the three months ended June 30, 2021, compared to $8.7 millionduring the same period in 2020. The $1.9 millionincrease is primarily driven by an increase of $1.5 millionof payroll and personnel expenses due to increases in headcount of employees involved in research and development activities, an increase of $0.4 millionincurred for contract research organizations and consultant costs due to ramping up of clinical development activities related to our first product candidate, ADI-001 and an increase of $1.2 millionin facility and other expenses. These increases were offset by decreases in contract manufacturing organization costs of $1.3 millionrelated to ramping up of manufacturing activities in early 2020. Payroll and personnel expenses for the three months ended June 30, 2021includes $0.8 millionof non-cash stock-based compensation expense compared to $0.1 millionduring the same period in 2020.
- General and Administrative (G&A) Expenses: G&A expenses were
$5.0 millionfor the three months ended June 30, 2021, compared to $7.4 millionduring the same period in 2020. The $2.4 milliondecrease is primarily driven by a decrease in professional fees of $4.4 millionrelated to legal and audit fees incurred due to our reverse merger in 2020. These decreases were offset by increases in payroll and personnel expenses of $0.6 million, and an increase of $1.4 millionin facility and other expenses, primarily due to $0.8 millionof rent expense related to a lease for office and laboratory space in Redwood City, California. The Company expects to complete occupancy of this facility in the second quarter of 2022. Payroll and personnel expenses for the three months ended June 30, 2021includes $1.8 millionof non-cash stock-based compensation expense compared to $0.3 millionduring the same period in 2020.
- Net Loss: Net loss attributable to common shareholders for the three months ended
June 30, 2021was $10.9 million, or a net loss of $0.34per basic and diluted share, including non-cash stock-based compensation expense of $2.7 million, as compared to a net loss of $8.5 millionduring the same period in 2020, or a net loss of $3.88per basic and diluted share, including non-cash stock-based compensation expense of $0.4 million.
- Cash Position: Cash and cash equivalents and marketable debt securities were
$208.7 millionas of June 30, 2021, compared to $94.6 millionas of December 31, 2020. The Company expects that current cash, cash equivalents and marketable securities as of June 30, 2021will be sufficient to fund its operating expenses through the beginning of the second half of 2023.
This press release contains "forward-looking statements" of Adicet within the meaning of the Private Securities Litigation Reform Act of 1995 relating to business and operations of Adicet including, but not limited to, express or implied statements regarding preclinical and clinical development of Adicet’s product candidates, including any reporting of results related thereto, future plans or expectations for ADI-001 and ADI-002 and potential therapeutic effects of ADI-001 and ADI-002, the timing and outcome of discussions with FDA and other regulatory agencies, expectations regarding the design, implementation, timing, and success of its current and future clinical studies of ADI-001, and ADI-002 including whether they are pivotal or would support registration, expectations regarding its other CAR T cell therapy development activities, Adicet’s growth as a company and the anticipated contribution of the members of scientific advisory board to its operations and progress, the anticipated benefits of inclusion in the
Investor and Media Contacts
Stern Investor Relations, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except share and per share amounts)
|Three Months Ended
||Six Months Ended
|Research and development||10,616||8,676||22,359||15,709|
|General and administrative||5,024||7,419||10,654||9,943|
|Total operating expenses||15,640||16,095||33,013||25,652|
|Loss from operations||(10,827||)||(8,630||)||(32,181||)||(16,187||)|
|Other income (expense), net||(62||)||(20||)||(66||)||50|
|Loss before income tax expense (benefit)||(10,931||)||(8,455||)||(32,298||)||(15,620||)|
|Income tax expense (benefit)||(77||)||—||(125||)||(2,679||)|
|Net loss per share attributable to common stockholders, basic and diluted||$||(0.34||)||$||(3.88||)||$||(1.11||)||$||(5.96||)|
|Weighted-average common shares used in computing net loss per share attributable to common stockholders, basic and diluted||31,824,405||2,177,157||28,977,993||2,170,298|
Balance Sheet Data
Cash, cash equivalents and marketable debt securities
|Contract liabilities—related party||13,147||13,980|
|Total stockholders' equity||228,341||109,827|
Source: Adicet Bio