Kinnate Biopharma Inc. Reports Third Quarter 2023 Financial Results and Recent Corporate Updates
09 November 2023 - 10:05PM
Kinnate Biopharma Inc. (Nasdaq: KNTE) (“Kinnate” or the “Company”),
a clinical-stage precision oncology company, today announced
financial results for the third quarter of 2023 and recent
corporate updates.
Nima Farzan, chief executive officer of Kinnate Biopharma Inc.,
stated, “Following the announcement of the Company’s strategic
reprioritization, we are focused on advancing our pan-RAF inhibitor
exarafenib in combination with binimetinib and our c-MET inhibitor
KIN-8741, and are focusing our discovery efforts around our CDK4
selective inhibitor program. We remain committed to pursuing
therapies that can improve outcomes and make a positive impact on
patients’ lives while also maximizing value for our
shareholders.”
Previously Announced Strategic Reprioritization and
Pipeline Updates
- Kinnate previously announced a strategic reprioritization and
workforce restructuring based on a strategic review of its business
(View Release).
- As a result of the reprioritization, the Company is
prioritizing the exarafenib combination, KIN-8741 and discovery
efforts around its CDK4 selective program.
- Dose exploration for the combination of exarafenib, the
Company’s investigational pan-RAF inhibitor, and binimetinib is
currently underway in the KN-8701 clinical trial, with a primary
focus on NRAS mutant melanoma. In the fourth quarter of 2023, the
Company intends to select two doses for further development.
- Kinnate expects to file an Investigational New Drug (“IND”)
application for KIN-8741, the Company’s investigational c-MET
inhibitor, with the U.S. Food and Drug Administration in the fourth
quarter of 2023.
- Kinnate is evaluating lead potentially brain-penetrant,
selective CDK4 inhibitors for potential selection as a drug
candidate and expects to nominate a drug candidate in the fourth
quarter of 2023.
- Additionally, as part of the reprioritization plan, Kinnate
previously announced it will not initiate a clinical trial for
KIN-7136, the Company’s investigational MEK inhibitor, and will
explore strategic alternatives for exarafenib monotherapy and
KIN-3248, an investigational FGFR inhibitor.
- Kinnate implemented a workforce restructuring to align with its
refined focus, reducing the Company’s workforce by approximately
70%. The Company is also taking related measures to reduce
operating expenses.
Financial Results
- As of September 30, 2023, total cash, cash equivalents and
investments were $180.3 million, which is expected to fund current
operations into at least the second quarter of 2026.
- Third quarter research and development expenses for 2023 were
$24.5 million, compared to $23.5 million for the same period in
2022.
- Third quarter general and administrative expenses for 2023 were
$6.6 million, compared to $7.8 million for the same period in
2022.
- Third quarter operating expenses for 2023 included $2.0 million
of restructuring costs.
- Third quarter net loss for 2023 was $30.7 million, compared to
$30.7 million for the same period in 2022.
About Kinnate Biopharma Inc.
Kinnate Biopharma Inc. is a clinical-stage precision oncology
company founded with a mission to inspire hope in those battling
cancer by expanding on the promise of targeted therapies. The
Company concentrates its efforts on addressing known oncogenic
drivers for which there are currently no approved targeted
therapies and to overcome the limitations associated with existing
cancer therapies, such as non-responsiveness or the development of
acquired and intrinsic resistance.
The Company’s lead product candidates are investigational
pan-RAF inhibitor, exarafenib, which targets cancers with BRAF and
NRAS-driven alterations, and investigational FGFR inhibitor,
KIN-3248, which is designed for cancers with FGFR2 and FGFR3
alterations. The Company also has early-stage programs, including a
c-MET inhibitor that targets resistant variants and a brain
penetrant CDK4 selective program. The Kinnate Discovery Engine
drives the Company’s pipeline of small molecule candidates,
prioritizing high selectivity, optimized pharmaceutical properties,
broad genetic alteration coverage, overcoming resistance, and brain
penetration. The Company is driven by the urgency and knowledge
that patients are waiting for new, effective cancer medicines. For
more information, visit Kinnate.com and follow the company on
LinkedIn to learn about its most recent initiatives.
Forward Looking Statements
This press release contains forward-looking statements that
involve substantial risks and uncertainties. These forward-looking
statements include, without limitation, the future plans for
clinical development of exarafenib as a monotherapy; the timing and
number of doses for further development for the exarafenib plus
binimetinib combination; the timing for filing an IND for KIN-8741;
the timing and plans for nominating a drug candidate for the
Company’s CDK4 program; the future plans to not initiate a clinical
trial for KIN-7136 and to explore strategic alternatives for
exarafenib monotherapy and KIN-3248; and statements by our Chief
Executive Officer. Words such as “believes,” “anticipates,”
“plans,” “expects,” “will,” “potential” and similar expressions are
also intended to identify forward-looking statements. We have based
these forward-looking statements largely on our current
expectations and projections about future events and trends. Such
expectations and projections may never materialize or may prove to
be incorrect. These forward-looking statements are subject to a
number of risks, uncertainties, assumptions and other factors,
including, among other things: implementation of our strategic plan
may be unsuccessful, cause disruptions or create unintended
consequences; operating as a clinical-stage biopharmaceutical
company with a limited operating history; the timing, progress and
results of ongoing and planned preclinical studies and clinical
trials for our current product candidates; that continued dose
escalation in our clinical trials could increase the risk of the
occurrence of adverse events; the potential for future clinical
trial results to differ from initial results or from our
preclinical studies; our ability to timely enroll a sufficient
number of patients in our clinical trials; our ability to raise
additional capital to finance our operations; our ability to
discover, advance through the preclinical and clinical development
of, obtain regulatory approval for and commercialize our product
candidates; the novel approach we are taking to discover and
develop drugs; our ability to timely file and obtain approval of
IND applications for our planned clinical trials; competition in
our industry; regulatory and legal developments in the United
States and other countries; our ability to attract, hire and retain
highly skilled executive officers and employees; our ability to
protect our intellectual property; reliance on third parties to
conduct our ongoing and planned preclinical studies and clinical
trials, and to manufacture our product candidates; general economic
and market conditions; and other risks. These and other risks,
uncertainties, assumptions and other factors are further described
under the heading “Risk Factors” in our Quarterly Report on Form
10-Q for the quarter ended September 30, 2023 that we are
concurrently filing with the Securities and Exchange Commission
(SEC), as well as in our subsequent filings we make with the SEC.
New risk factors emerge from time to time and it is not possible
for our management to predict all risk factors, nor can we assess
the impact of all factors on our business or the extent to which
any factor, or combination of factors, may cause actual results to
differ materially from those contained in, or implied by, any
forward-looking statements. Investors should not rely upon
forward-looking statements as predictions of future events.
Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance or achievements.
Our forward-looking statements speak only as of the date of this
release, and except as required by law, we undertake no obligation
to update publicly any forward-looking statements for any reason in
the future.
Company Contact:Investors@kinnate.com
Kinnate
Biopharma Inc. |
Condensed
Consolidated Balance Sheets |
(Unaudited) |
(in
thousands, except share and par value amounts) |
|
|
|
|
|
|
|
|
|
|
September 30, 2023 |
December 31, 2022 |
Assets |
|
|
|
|
Current
assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
51,662 |
|
|
$ |
29,261 |
|
Cash at consolidated joint venture |
|
|
- |
|
|
|
25,725 |
|
Short-term investments |
|
|
115,914 |
|
|
|
172,214 |
|
Prepaid expenses and other current assets |
|
|
2,725 |
|
|
|
3,637 |
|
Total current assets |
|
|
170,301 |
|
|
|
230,837 |
|
Property and
equipment, net |
|
|
2,470 |
|
|
|
3,071 |
|
Right-of-use
lease assets |
|
|
2,660 |
|
|
|
3,377 |
|
Long-term
investments |
|
|
12,762 |
|
|
|
39,139 |
|
Restricted
cash |
|
|
371 |
|
|
|
371 |
|
Other
non-current assets |
|
|
2,145 |
|
|
|
2,031 |
|
Total assets |
|
$ |
190,709 |
|
|
$ |
278,826 |
|
|
|
|
|
|
Liabilities, Redeemable Convertible Noncontrolling
Interests and Stockholders' Equity |
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
|
$ |
2,929 |
|
|
$ |
2,970 |
|
Accrued expenses |
|
|
11,976 |
|
|
|
13,206 |
|
Current portion of operating lease liabilities |
|
|
869 |
|
|
|
991 |
|
Total current liabilities |
|
|
15,774 |
|
|
|
17,167 |
|
Operating
lease liabilities, long-term |
|
|
2,515 |
|
|
|
3,191 |
|
Total liabilities |
|
|
18,289 |
|
|
|
20,358 |
|
Redeemable
convertible noncontrolling interests |
|
|
- |
|
|
|
35,000 |
|
Stockholders’ equity: |
|
|
|
|
Preferred stock, $0.0001 par value; 200,000,000 shares authorized
at |
|
|
|
|
September 30, 2023 and December 31, 2022; 0 shares outstanding
at |
|
|
|
|
September 30, 2023 and December 31, 2022 |
|
|
- |
|
|
|
- |
|
Common stock, $0.0001 par value; 1,000,000,000 shares authorized
at |
|
|
|
|
September 30, 2023 and December 31, 2022; 47,112,698 and 44,342,292
shares |
|
|
|
|
issued and outstanding at September 30, 2023 and December 31, 2022
, respectively |
|
|
5 |
|
|
|
4 |
|
Additional paid-in capital |
|
|
527,516 |
|
|
|
484,237 |
|
Accumulated other comprehensive loss |
|
|
(147 |
) |
|
|
(1,410 |
) |
Accumulated deficit |
|
|
(354,954 |
) |
|
|
(259,363 |
) |
Total stockholders’ equity |
|
|
172,420 |
|
|
|
223,468 |
|
Total
liabilities, redeemable convertible noncontrolling interests and
stockholders' equity |
|
$ |
190,709 |
|
|
$ |
278,826 |
|
|
|
|
|
|
Kinnate
Biopharma Inc. |
Condensed
Consolidated Statements of Operations and Comprehensive
Loss |
(Unaudited) |
(in
thousands, except share and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Research and development |
|
|
$ |
24,511 |
|
|
$ |
23,548 |
|
|
$ |
77,397 |
|
|
$ |
62,962 |
|
General and administrative |
|
|
|
6,605 |
|
|
|
7,824 |
|
|
|
22,507 |
|
|
|
22,875 |
|
Restructuring costs |
|
|
|
1,973 |
|
|
|
- |
|
|
|
1,973 |
|
|
|
- |
|
Total operating expenses |
|
|
|
33,089 |
|
|
|
31,372 |
|
|
|
101,877 |
|
|
|
85,837 |
|
Loss from
operations |
|
|
|
(33,089 |
) |
|
|
(31,372 |
) |
|
|
(101,877 |
) |
|
|
(85,837 |
) |
Other
income, net |
|
|
|
2,356 |
|
|
|
635 |
|
|
|
6,286 |
|
|
|
1,129 |
|
Net
loss |
|
|
$ |
(30,733 |
) |
|
$ |
(30,737 |
) |
|
$ |
(95,591 |
) |
|
$ |
(84,708 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding, basic and diluted |
|
|
|
47,094,882 |
|
|
|
44,151,034 |
|
|
|
46,392,980 |
|
|
|
44,013,097 |
|
Net loss per
share, basic and diluted |
|
|
$ |
(0.65 |
) |
|
$ |
(0.70 |
) |
|
$ |
(2.06 |
) |
|
$ |
(1.92 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss: |
|
|
|
|
|
|
|
|
|
Net
loss |
|
|
$ |
(30,733 |
) |
|
$ |
(30,737 |
) |
|
$ |
(95,591 |
) |
|
$ |
(84,708 |
) |
Other
comprehensive loss: |
|
|
|
|
|
|
|
|
|
Unrealized gain (loss) on investments |
|
|
|
195 |
|
|
|
178 |
|
|
|
1,263 |
|
|
|
(2,035 |
) |
Total
comprehensive loss |
|
|
$ |
(30,538 |
) |
|
$ |
(30,559 |
) |
|
$ |
(94,328 |
) |
|
$ |
(86,743 |
) |
|
|
|
|
|
|
|
|
|
|
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