Apellis Pharmaceuticals Reports Fourth Quarter and Full Year 2019 Financial Results
February 27, 2020
- Positive Top-line Results Announced from Head-to-Head Phase 3 PEGASUS Trial of Pegcetacoplan (APL-2) Compared to Eculizumab in Patients with Paroxysmal Nocturnal Hemoglobinuria (PNH)
- Completion of Enrollment in Phase 3
PRINCETrial in Treatment-Naïve PNH Patients Expected in First Half of 2020
- Full Enrollment of Two Phase 3 Trials in Geographic Atrophy Expected in First Half of 2020
- Cash Position of
$352.0 Millionas of December 31, 2019. Follow-on Offering in January Raised Additional Gross Proceeds of $404.2Million; $20.0 Million Milestone Paymentalso Received in January from SFJ Pharmaceuticals
“We are thrilled with the progress we made over the past year to advance our pipeline and validate our unique C3-targeted approach. In January, we announced top-line results from the Phase 3 PEGASUS trial, which met its primary endpoint and demonstrated that pegcetacoplan was superior to eculizumab with a statistically significant improvement in hemoglobin levels. We believe that pegcetacoplan has the potential to elevate the standard of care for people with PNH, and these results also strengthened our confidence in the platform potential of pegcetacoplan to treat a wide array of serious, complement-driven diseases,” said
“We plan to build on this momentum in 2020 by completing enrollment in three separate Phase 3 trials of pegcetacoplan including two in geographic atrophy, a leading cause of blindness that affects approximately five million people worldwide and has no approved treatments. We also plan to meet with regulators in the US and EU in the first half of this year to discuss next steps for regulatory submissions of pegcetacoplan in PNH,”
Business Highlights and Upcoming Milestones:
Subcutaneous Pegcetacoplan (APL-2)
January 2020, Apellis announced positive results from the Phase 3 head-to-head PEGASUS study evaluating pegcetacoplan compared to eculizumab in 80 adults with PNH. Top-line data showed that pegcetacoplan met the study’s primary efficacy endpoint, demonstrating superiority to eculizumab with a statistically significant improvement in adjusted means of 3.8 g/dL of hemoglobin at week 16 (p<0.0001). The safety profile of pegcetacoplan was comparable to eculizumab in the study. Apellis plans to present detailed 16-week results from the study at a future scientific meeting, and the company also expects to report 48-week top-line results from the trial in the second half of 2020.
- Apellis expects to complete enrollment in the Phase 3
PRINCEtrial evaluating pegcetacoplan in treatment-naïve PNH patients in the first half of 2020 and announce top-line data from the study in early 2021.
- Apellis plans to disclose plans and timing for further clinical development of pegcetacoplan for patients with cold agglutinin disease (CAD) in the first half of 2020. In
June 2019, positive interim data for pegcetacoplan in patients with CAD were presented from the Phase 2 PLAUDIT trial at the 24th Annual Congress of the European Hematology Association (EHA).
November 2019, Apellis announced positive preliminary results in the C3 glomerulopathy (C3G) cohort of the Phase 2 DISCOVERYstudy. The results, which showed a reduction in mean proteinuria of nearly 50% at study day 84, were presented at the American Society of Nephrology (ASN) Kidney Week2019 in Washington D.C.The company expects to disclose plans and timing for further clinical development of pegcetacoplan for patients with C3G in the first half of 2020.
- Apellis expects that its two Phase 3 trials for pegcetacoplan in patients with geographic atrophy (GA), DERBY and OAKS, will be fully enrolled in the first half of 2020 and that the company will announce top-line results from these trials in mid-2021.
Intravenous C3 Inhibition
- Apellis is developing compounds targeting C3 for intravenous administration. In particular, Apellis continues to develop APL-9 for the prevention of complement immune system activation coincident with adeno-associated virus vector administration for gene therapies.
Corporate & Other Highlights
January 2020, Apellis announced the closing of its public offering of 10,925,000 shares of common stock at the public offering price of $37.00per share, including 1,425,000 shares issued upon the exercise in full by the underwriters of their option to purchase additional shares. The gross proceeds from the offering, before deducting underwriting discounts, commissions, and expenses were approximately $404.2 million.
- In September 2019, Apellis announced the closing of its offering of 3.500% convertible senior notes due 2026. The notes are convertible into shares of Apellis common stock at an initial conversion rate of 25.3405 shares per
$1,000principal amount of notes. Upon conversion of the notes, Apellis may pay or deliver, as the case may be, cash, shares of common stock, or a combination of cash and shares of common stock, at Apellis’ election. The gross proceeds from this offering, before discounts, commissions, and expenses were approximately $220 million.
- In March 2019, Apellis announced the closing of its public offering of 6,900,000 shares of common stock, at a public offering price of
$17.00per share, including 900,000 shares issued upon the exercise in full by the underwriters of their option to purchase additional shares. The gross proceeds from the offering, before deducting underwriting discounts and commissions and expenses payable by Apellis, were approximately $117.3 million.
February 2019, Apellis announced a collaboration with SFJ Pharmaceuticals® to support the development of pegcetacoplan in hematologic indications. Under the agreement, Apellis has received $140.0 millionin upfront and near-term milestone payments, including the last $20.0 millionin January 2020.
Fourth Quarter and Full Year 2019 Financial Results:
Apellis reported a net loss of
Research and development expenses were
General and administrative expenses were
About Pegcetacoplan (APL-2)
Pegcetacoplan is an investigational, targeted C3 inhibitor designed to regulate excessive complement activation, which can lead to the onset and progression of many serious diseases. Pegcetacoplan is a synthetic cyclic peptide conjugated to a polyethylene glycol polymer that binds specifically to C3 and C3b. Apellis is evaluating pegcetacoplan in several clinical studies including paroxysmal nocturnal hemoglobinuria (PNH), geographic atrophy (GA), and C3 glomerulopathy (C3G). Pegcetacoplan was granted Fast Track designation by the
APL-9 is an investigational, targeted C3 inhibitor that leverages the same mechanism of action as Apellis’ lead compound, pegcetacoplan, but has a lower molecular weight and shorter half-life. APL-9 is designed to be intravenously administered for acute use whereas pegcetacoplan is designed for chronic subcutaneous or intravitreal administration.
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the implications of preliminary clinical data. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: whether the company’s clinical trials will be fully enrolled and completed when anticipated; whether preliminary or interim results from a clinical trial will be predictive of the final results of the trial; whether results obtained in preclinical studies and clinical trials will be indicative of results that will be generated in future clinical trials; whether pegcetacoplan will successfully advance through the clinical trial process on a timely basis, or at all; whether the results of the company’s clinical trials will warrant regulatory submissions and whether pegcetacoplan will receive approval from the FDA or equivalent foreign regulatory agencies for GA, PNH, CAD, C3G or any other indication when expected or at all; whether, if Apellis’ products receive approval, they will be successfully distributed and marketed; and other factors discussed in the “Risk Factors” section of Apellis’ Annual Report on Form 10-K filed with the
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|Cash and cash equivalents||$||176,267,666||$||351,985,085|
|Other current assets||1,837,704||1,307,591|
|Total current assets||202,439,221||373,094,684|
|Property and equipment, net||977,918||1,654,999|
|Liabilities and Stockholders' Equity|
|Current portion of long-term-debt||1,666,667||-|
|Current portion of operating lease liabilities||2,609,341|
|Total current liabilities||17,024,607||65,752,819|
|Convertible Senior Notes||—||142,566,851|
|Development derivative liability||—||134,839,000|
|Term loan facility||18,722,321||-|
|Operating lease liabilities||—||11,856,634|
zero shares issued and outstanding at
and outstanding at
|Additional Paid-in capital||437,855,681||615,849,518|
|Accumulated other comprehensive loss||(122,807||)||(153,775||)|
|Total stockholders' equity||160,972,655||34,229,676|
|Total liabilities and stockholders' equity||$||203,533,559||$||389,244,980|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS|
|Three Months Ended
||Year Ended Deccember 31,|
|Research and development||$||30,805,611||$||78,471,427||$||105,285,576||$||220,968,770|
|General and administrative||6,390,981||27,468,856||22,639,184||67,046,483|
|Loss on extinguishment of debt||—||—||—||(1,501,215||)|
|Loss from remeasurement of development derivative liability||—||(4,736,000||)||—||(14,839,000||)|
|Other income (expense), net||488,127||(89,373||)||(25,249||)||(175,314||)|
|Other comprehensive gain (loss):|
|Foreign currency gain (loss)||(462,748||)||51,474||(122,807||)||(30,968||)|
|Total other comprehensive gain (loss)||(462,748||)||51,474||(122,807||)||(30,968||)|
|Comprehensive loss, net of tax||$||(36,922,223||)||$||(113,165,949||)||$||(127,625,001||)||$||(304,737,581||)|
|Net loss per common share, basic and diluted||$||(0.65||)||$||(1.77||)||$||(2.34||)||$||(4.90||)|
|Weighted-average number of common shares used in net
loss per common share, basic and diluted
Source: Apellis Pharmaceuticals, Inc.