LONDON and NEW YORK, March 14, 2023 (GLOBE NEWSWIRE) -- MeiraGTx Holdings plc (Nasdaq: MGTX), a vertically integrated, clinical stage gene therapy company, today announced financial and operational results for the fourth quarter and full-year ended December 31, 2022, and provided a corporate update.
“As we begin 2023, we are increasingly confident in all three of our lead clinical programs, as well as our transformative riboswitch gene regulation technology,” said Alexandria Forbes, Ph.D., president and chief executive officer of MeiraGTx. “In the fourth quarter of last year, we announced positive clinical data from our Phase 1 trial of AAV-hAQP1 for the treatment of grade 2/3 radiation-induced xerostomia and presented positive data at AAO demonstrating positive safety and sustained vision improvement in patients with X-linked retinitis pigmentosa who were treated with botaretigene sparoparvovec in our Phase 1/2 trial. We also presented 15 abstracts at the European Society of Gene and Cell Therapy (ESGCT) Annual Congress highlighting just some of the data from our gene control platforms, including for the first time our riboswitch gene regulation applied to cell therapy. In addition, we began dosing patients with adeno-associated virus (AAV) encoding glutamic acid decarboxylase (AAV-GAD), an investigational gene therapy for Parkinson’s disease.”
Dr. Forbes continued, “This year, in XLRP, we intend to complete enrollment of the pivotal Lumeos Phase 3 study and are on track for a BLA filing in 2024. In xerostomia, we intend to begin a randomized, double-blind, placebo-controlled, Phase 2 study in the second quarter, and in AAV-GAD for Parkinson’s, we anticipate completing enrollment of our current study in the second half of 2023 as we move forward with discussions with global regulators regarding a path to BLA. This progress across multiple programs and platforms is enabled by our broad end-to-end capabilities in vectorology optimization and manufacturing. In addition, in 2023, we intend to share more about our plans to use our riboswitch technology to allow gene therapy to be applied to more prevalent diseases in a cost-effective way. This has been one of our primary goals since the inception of MeiraGTx, and we are very excited to be advancing towards potentially achieving this ambition.”
Recent Development Highlights and Anticipated 2023 Milestones
Botaretigene Sparoparvovec for the Treatment of XLRP:
AAV-hAQP1 for the Treatment of Grade 2/3 Radiation-Induced Xerostomia:
AAV-GAD for the Treatment of Parkinson’s Disease:
Riboswitch Gene Regulation Platform & Vector Engineering:
Gene Therapy Manufacturing:
For more information related to our clinical trials, please visit www.clinicaltrials.gov
As of December 31, 2022, MeiraGTx had cash and cash equivalents of approximately $115 million, as well as approximately $21 million in receivables due from Janssen from the fourth quarter of 2022. The Company believes that with such funds, as well as anticipated milestones from Janssen, it will have sufficient capital to fund operating expenses and capital expenditure requirements into the fourth quarter of 2024.
Financial Results
Cash and cash equivalents were $115.5 million as of December 31, 2022, compared to $137.7 million as of December 31, 2021.
License revenue was $15.9 million for the year ended December 31, 2022, compared to $37.7 million for the year ended December 31, 2021. This decrease is a result of MeiraGTx receiving a $30.0 million milestone payment in connection with the Janssen collaboration during the year ended December 31, 2021.
General and administrative expenses were $46.6 million for the year ended December 31, 2022, compared to $43.8 million for the year ended December 31, 2021. The increase of $2.8 million was primarily due to an increase in share-based compensation, legal and accounting fees, consulting fees and depreciation, which was partially offset by decreases in payroll and payroll-related costs, insurance, rent and facilities costs and other general and administrative expenses.
Research and development expenses for the years ended December 31, 2022, and 2021 were as follows (in millions):
| 2022 | 2021 | Change | ||||||||||||||||
| Gross research and development expenses | $ | 165.8 | $ | 141.1 | $ | 24.7 | ||||||||||||
| Janssen reimbursements | (73.3 | ) | (69.0 | ) | (4.3 | ) | ||||||||||||
| Tax incentive reimbursement | (6.8 | ) | (5.4 | ) | (1.4 | ) | ||||||||||||
| Research and development expenses | $ | 85.7 | $ | 66.7 | $ | 19.0 | ||||||||||||
Gross research and development expenses for the year ended December 31, 2022, increased $24.7 million as compared to the prior year primarily due to an increase in costs related to manufacturing of our clinical trial materials, payroll and payroll-related costs, costs related to our pre-clinical research and clinical trials, share-based compensation, rent and facility costs, depreciation and other research costs, which was partially offset by a decrease in license fees and acquired research and development costs.
Reimbursements under the Janssen collaboration agreement for the year ended December 31, 2022, increased $4.3 million as compared to the prior year primarily due to an increase in activity in the programs licensed under the Janssen collaboration agreement.
Tax incentive reimbursement for the year ended December 31, 2022, increased $1.4 million as compared to the prior year primarily due to the increase in allowable research and development costs.
Foreign currency loss was $9.5 million for the year ended December 31, 2022, compared to a loss of $6.3 million for the year ended December 31, 2021. The increase in the loss of $3.2 million was primarily due to an unrealized loss on the valuation of the Company’s intercompany payables and receivables due to the strengthening of the U.S. dollar against the pound sterling and euro during the year ended December 31, 2022.
Interest income was $0.8 million for the year ended December 31, 2022, compared to $0.2 million for the year ended December 31, 2021. The increase was due to a higher interest rate during 2022.
Interest expense was $4.9 million for the year ended December 31, 2022, compared to $0.3 million for the year ended December 31, 2021. The increase was primarily due to the interest on the Company’s outstanding debt.
Net loss attributable to ordinary shareholders for the year ended December 31, 2022, was $129.6 million, or $2.87 basic and diluted net loss per ordinary share, compared to a net loss attributable to ordinary shareholders of $79.6 million, or $1.80 basic and diluted net loss per ordinary share for the year ended December 31, 2021.
About MeiraGTx
MeiraGTx (Nasdaq: MGTX) is a vertically integrated, clinical-stage gene therapy company with six programs in clinical development and a broad pipeline of preclinical and research programs. MeiraGTx has core capabilities in viral vector design and optimization and gene therapy manufacturing, and a transformative gene regulation platform technology that allows precise, dose responsive control of gene expression by oral small molecules with dynamic range that can exceed 5000-fold. Led by an experienced management team, MeiraGTx has taken a portfolio approach by licensing, acquiring and developing technologies that give depth across both product candidates and indications. MeiraGTx’s initial focus is on three distinct areas of unmet medical need: ocular diseases, including both inherited retinal diseases as well as large degenerative ocular diseases, neurodegenerative diseases and severe forms of xerostomia. Though initially focusing on the eye, central nervous system and salivary gland, MeiraGTx plans to expand its focus to develop additional gene therapy treatments for patients suffering from a range of serious diseases.
For more information, please visit www.meiragtx.com
Forward Looking Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our product candidate development and anticipated milestones regarding our pre-clinical and clinical data, reporting of such data and the timing of results of data and regulatory matters, including in light of the COVID-19 pandemic, as well as statements that include the words “expect,” “will,” “intend,” “plan,” “believe,” “project,” “forecast,” “estimate,” “may,” “could,” “should,” “would,” “continue,” “anticipate” and similar statements of a future or forward-looking nature. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, our incurrence of significant losses; any inability to achieve or maintain profitability, raise additional capital, repay our debt obligations, identify additional and develop existing product candidates, successfully execute strategic priorities, bring product candidates to market, expansion of our manufacturing facilities and processes, successfully enroll patients in and complete clinical trials, accurately predict growth assumptions, recognize benefits of any orphan drug designations, retain key personnel or attract qualified employees, or incur expected levels of operating expenses; the impact of the COVID-19 pandemic on the status, enrollment, timing and results of our clinical trials and on our business, results of operations and financial condition; failure of early data to predict eventual outcomes; failure to obtain FDA or other regulatory approval for product candidates within expected time frames or at all; the novel nature and impact of negative public opinion of gene therapy; failure to comply with ongoing regulatory obligations; contamination or shortage of raw materials or other manufacturing issues; changes in healthcare laws; risks associated with our international operations; significant competition in the pharmaceutical and biotechnology industries; dependence on third parties; risks related to intellectual property; changes in tax policy or treatment; our ability to utilize our loss and tax credit carryforwards; litigation risks; and the other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022, as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, unless required by law, we disclaim any obligation to do so, even if subsequent events cause our views to change. Thus, one should not assume that our silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.
1 Michaelides, M et al. Ph1/2 AAV5-RPGR (Botaretigene Sparoparvovec) Gene Therapy Trial in RPGR-associated X-linked Retinitis Pigmentosa (XLRP). Abstract #30071754. Presented at the 2022 American Academy of Ophthalmology Annual Meeting.
Contacts
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MEIRAGTX HOLDINGS PLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except share and per share amounts)
| For the Years Ended December 31, | ||||||||
| 2022 | 2021 | |||||||
| License revenue - related party | $ | 15,920 | $ | 37,701 | ||||
| Operating expenses: | ||||||||
| General and administrative | 46,550 | 43,765 | ||||||
| Research and development | 85,725 | 66,694 | ||||||
| Total operating expenses | 132,275 | 110,459 | ||||||
| Loss from operations | (116,355 | ) | (72,758 | ) | ||||
| Other non-operating income (expense): | ||||||||
| Foreign currency loss | (9,452 | ) | (6,293 | ) | ||||
| Interest income | 777 | 212 | ||||||
| Interest expense | (4,946 | ) | (288 | ) | ||||
| Fair value adjustments | 361 | (434 | ) | |||||
| Net loss | (129,615 | ) | (79,561 | ) | ||||
| Other comprehensive income: | ||||||||
| Foreign currency translation gain | 8,718 | 2,226 | ||||||
| Comprehensive loss | $ | (120,897 | ) | $ | (77,335 | ) | ||
| Net loss | $ | (129,615 | ) | $ | (79,561 | ) | ||
| Basic and diluted net loss per ordinary share | $ | (2.87 | ) | $ | (1.80 | ) | ||
| Weighted-average number of ordinary shares outstanding | 45,177,857 | 44,139,655 | ||||||
MEIRAGTX HOLDINGS PLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
| December 31, | December 31, | |||||||
| 2022 | 2021 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 115,516 | $ | 137,703 | ||||
| Accounts receivable - related party | 21,334 | 22,384 | ||||||
| Prepaid expenses | 8,133 | 8,102 | ||||||
| Tax incentive receivable | 7,689 | 12,634 | ||||||
| Other current assets | 1,667 | 2,420 | ||||||
| Total Current Assets | 154,339 | 183,243 | ||||||
| Property, plant and equipment, net | 109,266 | 75,860 | ||||||
| Intangible assets, net | 1,335 | 1,791 | ||||||
| In-process research and development | 742 | 783 | ||||||
| Other assets | 1,402 | 1,404 | ||||||
| Equity method and other investments | 6,326 | 6,656 | ||||||
| Right-of-use assets - operating leases, net | 20,109 | 22,782 | ||||||
| Right-of-use assets - finance leases, net | 24,718 | 27,645 | ||||||
| TOTAL ASSETS | $ | 318,237 | $ | 320,164 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 16,616 | $ | 15,348 | ||||
| Accrued expenses | 39,818 | 27,586 | ||||||
| Lease obligations, current | 3,884 | 3,374 | ||||||
| Deferred revenue - related party, current | 15,123 | 21,820 | ||||||
| Other current liabilities | 6,631 | — | ||||||
| Total Current Liabilities | 82,072 | 68,128 | ||||||
| Deferred revenue - related party | 27,436 | 43,046 | ||||||
| Lease obligations | 17,331 | 20,359 | ||||||
| Asset retirement obligations | 2,179 | 2,081 | ||||||
| Deferred income tax liability | 186 | 196 | ||||||
| Note payable, net | 71,033 | — | ||||||
| Other long-term liabilities | 262 | 953 | ||||||
| TOTAL LIABILITIES | 200,499 | 134,763 | ||||||
| COMMITMENTS AND CONTINGENCIES (Note 15) | ||||||||
| SHAREHOLDERS' EQUITY: | ||||||||
| Ordinary Shares, $0.00003881 par value, 1,288,327,750 authorized, 48,477,209 and 44,548,925 shares issued and outstanding at December 31, 2022 and 2021, respectively | 2 | 2 | ||||||
| Capital in excess of par value | 581,893 | 528,659 | ||||||
| Accumulated other comprehensive income (loss) | 6,047 | (2,671 | ) | |||||
| Accumulated deficit | (470,204 | ) | (340,589 | ) | ||||
| Total Shareholders' Equity | 117,738 | 185,401 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 318,237 | $ | 320,164 | ||||
| Last Trade: | US$6.15 |
| Daily Change: | 0.31 5.31 |
| Daily Volume: | 929,148 |
| Market Cap: | US$480.620M |
December 09, 2024 November 13, 2024 October 22, 2024 October 15, 2024 October 09, 2024 | |
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