AVEO Oncology Reports Second Quarter 2015 Financial Results
Company to Host Midyear Update Conference Call Today,
“The second quarter was productive on multiple fronts for
Announces Exclusive Licensing Agreement with
Pharmstandardfor Tivozanib in Russia, Ukraineand CIS. In August, AVEOannounced that it has entered into an exclusive license agreement with a subsidiary of Pharmstandard Groupfor the development, manufacturing and commercialization of tivozanib in the territories of Russia, Ukraineand the Commonwealth of Independent States, for all indications excluding non-oncology ocular conditions. Under the terms of the agreement, Pharmstandardis obligated to pay AVEOan upfront payment of $1.5 million. AVEOis also eligible to receive up to $7.5 millionin connection with the first marketing authorization of tivozanib in Russia, $3.0 millionfor each additional approved indication thereafter and a high single-digit royalty on net sales in the above mentioned territories. Pharmstandardwill be responsible for all activities and costs associated with the further development, regulatory filings, health services and commercialization of tivozanib in the specified territories. A percentage of all upfront, milestone and royalty payments received by AVEOare due to Kyowa Hakko Kirinas a sublicensing fee.
Presented Additional Biomarker Analyses from BATON-CRC Tivozanib
Study—At the ESMO 17th
World Congress on Gastrointestinal Cancerin July, AVEOpresented additional biomarker analyses from the BATON-CRC tivozanib study, the Company’s Phase 2 clinical trial of modified FOLFOX6 combined with tivozanib or bevacizumab in metastatic colorectal cancer (CRC). The data were presented in a poster discussion titled “Neuropilin 1 (NRP1) may be Prognostic and Identify a Subgroup of Patients with Metastatic Colorectal Cancer (mCRC) who Benefit from Tivozanib + mFOLFOX6 compared to Bevacizumab + mFOLFOX6.”
Received European Regulatory Guidance Regarding Potential Marketing
Authorization Application for Tivozanib in RCC—In June,
AVEOannounced that, following pre-submission advisory meetings to discuss the potential submission of a Marketing Authorization Application (MAA) for tivozanib as a treatment for Renal Cell Carcinoma (RCC) in Europe, it had received written guidance from the Rapporteur and co-Rapporteur appointed by the Committee for Medicinal Products for Human Usefor the filing of such an application. The application would be based on the Company’s existing dataset, which includes results from the Phase 3 TIVO-1 study of tivozanib in the first-line treatment of RCC in which tivozanib demonstrated a significant improvement over sorafenib in the study’s primary endpoint of progression free survival. The Company is evaluating partnership opportunities to take tivozanib forward in Europeas it continues to prepare for an MAA filing.
Presented Final Results of Extension Study 902 of Tivozanib in RCC—At
American Society of Clinical Oncology( ASCO) Annual Meeting in June, AVEOpresented final results from its TIVO-1 extension study, known as Study 902, in which patients with advanced RCC received tivozanib as second-line treatment subsequent to disease progression on sorafenib in the Company’s Phase 3 TIVO-1 first-line RCC study. The results were presented in a poster presentation titled “Tivozanib vs sorafenib targeted therapy for advanced renal cell carcinoma: Final results of a phase III trial (901) and efficacy results of a 2nd line tivozanib extension study (902).”
Received FDA Regulatory Guidance Regarding Proposed Phase 3 RCC
AVEOannounced it had received a written response from the FDAstating that a Phase 3 study outlined by the Company, in patients with RCC who have failed at least two prior regimens, including VEGF therapy, “may support AVEO’s proposed indication for tivozanib in the 3rd line setting.” In response to whether the study, together with the TIVO-1 study, would be sufficient to also support licensure of tivozanib as a treatment for advanced [first line] RCC, the FDAindicated: “whether the results from this [third line] study can support AVEO’s proposal for tivozanib in the first line setting is a review issue.” The Company continues to evaluate all options, including partnerships, for the clinical and regulatory advancement for tivozanib in RCC.
Received FDA Feedback for Tivozanib in CRC—In June,
AVEOannounced that it had received feedback from the U.S. Food and Drug Administration( FDA) regarding a potential pivotal study for tivozanib in the treatment of NRP-1 low (below the median, representing 50% of the population) CRC. This feedback is consistent with the Company’s current clinical strategy and discussions with cancer research cooperative groups. As such, AVEOplans to identify a commercially viable assay which will enable a prospectively defined, randomized Phase 2 study.
Relocated Corporate Headquarters—In May,
AVEOannounced the relocation of its corporate headquarters to One Broadwayin Cambridge, Massachusetts. Consistent with the Company’s goal of streamlining operations to align with its strategic needs going forward, the new facility consists of approximately 5,000 square feet of office space under flexible lease terms, with no laboratory or vivarium space.
Presented AV-380 Preclinical Data in Cancer Associated Cachexia – At
the 2015 Annual Meeting of the
American Association of Cancer Research inApril, AVEOpresented results from a preclinical study of AV-380, the Company’s potent, humanized inhibitory antibody targeting growth differentiation factor 15 (GDF15), in a cachectic human tumor xenograft model with significantly increased plasma GDF15 levels. The data were presented in a poster titled “Effective treatment of cancer associated cachexia by AV-380, a GDF15 inhibitory antibody”.
Second Quarter 2015 Financial Highlights
AVEOended Q2 2015 with $26.8 millionin cash and cash equivalents.
Total collaboration revenue was approximately
$0.1 millioncompared with $1.8 millionfor Q2 2014. The decrease was primarily due to an additional $1.8 millionin revenue recognized in connection with our agreement with Astellas, which concluded in August 2014.
Research and development (R&D) expense was
$1.8 millioncompared with $9.3 millionfor Q2 2014. The decrease in R&D expense was primarily due to a reduction in personnel-related expenses following our January 2015strategic restructuring, the reduction of our leased facilities, as well as a decrease in external clinical trial and consulting costs associated with the decreased tivozanib clinical development activity and AV-380 preclinical development activity.
General and administrative (G&A) expense was
$2.9 millioncompared with $4.8 millionfor Q2 2014. The decrease in G&A expense was primarily due to a reduction in external legal costs associated with various ongoing legal matters and a decrease in employee compensation, facilities and IT costs following our January 2015restructuring and the reduction of our leased facilities.
Restructuring and lease exit expense was
$25,000compared with $5.2 millionfor Q2 2014. The expense incurred during Q2 2015 related to accretion expense associated with the lease termination liability for the 650 E. Kendall Streetfacility, whereas the expense incurred during Q2 2014 related to the portion of the 650 E. Kendall Streetfacility that we ceased using during that quarter.
Net loss for Q2 2015 was
$5.5 million, or a loss of $0.10per basic and diluted net loss per share compared with net loss of $18.0 millionor a loss of $0.35per basic and diluted net loss per share for Q2 2014.
We believe that our cash resources will allow us to fund our current operations at least through the third quarter of 2016. This estimate does not include our payment of potential licensing milestones or the costs of conducting any contemplated clinical trials and assumes no milestone payments from our partners, additional funding from new partnership agreements, equity financings, debt financings or accelerated repayment thereof or further sales under our ATM. The timing and nature of activities contemplated for 2015 and 2016 will be conducted subject to the availability of sufficient financial resources.
Today’s Conference Call Information
AVEO Oncology (
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements of AVEO within the meaning of The Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this press release are forward-looking statements. The words “anticipate,” “expect,” “intend,” “may,” “plan,” “could,” “should,” “seek,” or the negative of these terms or other similar expressions, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward looking statements include among others statements about AVEO's clinical development plans for tivozanib in CRC, its plans to evaluate partnership opportunities, and its evaluation of the development of tivozanib in RCC. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that AVEO makes due to a number of important factors, including risks relating to: AVEO’s ability to maintain its partnership agreements, AVEO’s ability, and the ability of any licensees, to demonstrate to applicable regulatory agencies the safety, efficacy and clinically meaningful benefit of its product candidates; AVEO’s ability to successfully implement its strategic plans; AVEO’s ability to successfully enroll and complete clinical trials of its product candidates; AVEO’s ability to achieve and maintain compliance with all regulatory requirements applicable to its product candidates; AVEO’s ability to obtain and maintain adequate protection for intellectual property rights relating to its product candidates and technologies; developments and expenses related to AVEO’s ongoing shareholder litigation and SEC inquiry; AVEO’s ability to raise the substantial additional funds required to achieve its goals; unplanned capital requirements; adverse general economic and industry conditions; competitive factors; and those risks discussed in the section titled “Risk Factors” in AVEO’s most recent Annual Report on Form 10-K, its quarterly reports on Form 10-Q and its other filings with the SEC. The forward-looking statements in this press release represent AVEO’s views as of the date of this press release. AVEO anticipates that subsequent events and developments may cause its views to change. While AVEO may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. You should, therefore, not rely on these forward-looking statements as representing AVEO’s views as of any date other than the date of this press release.
AVEO Pharmaceuticals, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
|For the Three Months||For the Six Months|
|Ended June 30,||Ended June 30,|
|Research and development||1,841||9,300||4,536||21,067|
|General and administrative||2,889||4,846||6,144||10,400|
|Restructuring and lease exit||25||5,165||4,358||9,025|
|Loss from operations||(4,621||)||(17,465||)||(14,770||)||(23,357||)|
|Other income and expense:|
|Other (expense) income, net||(209||)||(2||)||(223||)||5|
|Other expense, net||(835||)||(494||)||(1,560||)||(1,052||)|
Net loss per share - basic and
Weighted average number of
|AVEO Pharmaceuticals, Inc.|
|Consolidated Balance Sheet Data|
|June 30,||December 31,|
|Cash, cash equivalents and marketable securities||$||26,766||$||52,306|
|Prepaid expenses and other current assets||4,290||4,481|
|Property and equipment, net||131||11,295|
|Liabilities and stockholders’ equity|
|Accounts payable and accrued expenses||$||6,118||$||17,527|
|Total loans payable||15,301||20,652|
|Total deferred rent||-||10,569|
|Total liabilities and stockholders’ equity||$||33,695||$||70,662|
Source: AVEO Oncology
Company, Media and Investors:
David Pitts, 212-600-1902