Full Press Release Details
Candel Therapeutics Reports Second Quarter 2021 Financial Results and Recent Corporate Highlights
NEEDHAM, Mass., Sept. 8, 2021 (GLOBE NEWSWIRE) Candel Therapeutics, Inc. ( the Company ) (Nasdaq: CADL), a late clinical stage
biopharmaceutical company developing novel oncolytic viral immunotherapies, today reported financial results for the quarter ended June 30, 2021 and provided a corporate update.
This has been a transformational year for Candel Therapeutics as we continue to execute on our corporate strategy by advancing the development of our
lead product candidate from our adenovirus platform, CAN-2409, and our lead product candidate from our HSV platform, CAN-3110, both in areas of significant unmet
need, said Paul Peter Tak, M.D., Ph.D., FMedSci, President and Chief Executive Officer of Candel Therapeutics. With the close of our IPO, and multiple data readouts across our broad pipeline over the next 12 months, we are in a
strong position to advance our strategy and well-capitalized to support achievement of important milestones toward bringing novel immunotherapies to patients with cancer.
Second Quarter 2021 & Recent Highlights
Financial Results for the Second Quarter
Cash Position: Cash and cash equivalents and marketable as of June 30, 2021 were $24.3 million, as compared
to $35.1 million as of December 31, 2020. Subsequent to June 30, 2021, we completed our initial public offering in which we issued 9,887,994 shares of common stock at a price of $8.00 per share, including the partial exercise of the
underwriters overallotment option, for net proceeds of $71.5 million after deducting underwriting discounts and commissions and offering expenses. Based on current plans and assumptions, the Company expects its existing cash and cash
equivalents, including the net proceeds of the IPO, will be sufficient to fund its operations into the second quarter of 2023.
Research & Development Expenses: Research and development expenses were $3.3 million and $6.0 million for the three
and six month periods ended June 30, 2021, respectively, as compared to $1.8 million and $3.4 million for the comparable periods of 2020. The increase was primarily due to increased personnel-related costs due to additional headcount
to support the ongoing clinical trials for Candel s product candidates as well as increased clinical development costs. Excluding stock-based compensation expense of $0.4 million for the three months ended June 30, 2021 and
$0.5 million for the six months ended June 30, 2021, research and development expenses for the three and six months ended June 30, 2021 were $2.9 million and $5.5 million, respectively.
General and Administrative Expenses: General and administrative expenses were $2.0 million and $4.0 million for the three and six months
ended June 30, 2021, respectively, as compared to $0.9 million and $1.6 million for the comparable periods of 2020. The increase was primarily due to an increase in personnel-related costs, including stock-based compensation, for
additional headcount required to support the growth of the Company increased clinical development costs. and an increase in professional fees associated with Candel s preparation for the IPO completed in July 2021. Excluding stock-based
compensation expense of $0.7 million for the three months ended June 30, 2021 and $ 1.0 million for the six months ended June 30, 2021, general and administrative expenses for the three and six months ended June 30, 2021
were $1.3 million and $3.0 million, respectively.
Total Operating Expenses: Total operating expenses were $5.3 million and
$10.0 million for the three and six months ended June 30, 2021, respectively, as compared to $2.7 million and $5.0 million for the comparable periods of 2020. The increase was primarily due to an increase in personnel-related
costs, including stock-based compensation, for additional headcount required to support the growth of the Company, an increase in professional fees associated with Candel s preparation for the IPO completed in July 2021 and increased clinical
development costs. Excluding stock-based compensation expense of $1.1 million for the three months ended June 30, 2021 and $1.5 million for the six months ended June 30, 2021, total operating expenses for the three and six months
ended June 30, 2021 were $4.2 million and $8.5 million, respectively.
Net Loss: Net loss was $17.1 million and $21.6 million for the three and six months ended
June 30, 2021, respectively, as compared to $2.9 million and $4.6 million for the comparable periods of 2020. The net loss for the three and six months ended June 30, 2021 includes a noncash charge of $12.4 million for the
change in the fair value of the Company s warrant liability and stock-based compensation of $1.1 million and $1.5 million, respectively. Excluding the noncash charges for the change in the warrant liability and stock-based
compensation, the net loss for the three and six months ended June 30, 2021 was $3.6 million and $7.7 million, respectively
Candel Therapeutics, Inc.
Consolidated Statements of Operations
(in thousands, except share and per share amounts)
| THREE MONTHS ENDED JUNE 30, | SIX MONTHS ENDED JUNE 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Research and development service revenue, related party | $ | 31 | $ | 31 | $ | 63 | $ | 63 | ||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 3,292 | 1,795 | 6,048 | 3,417 | ||||||||||||
| General and administrative | 2,040 | 855 | 3,972 | 1,583 | ||||||||||||
| Total operating expenses | 5,332 | 2,650 | 10,020 | 5,000 | ||||||||||||
| Loss from operations | (5,301 | ) | (2,619 | ) | (9,957 | ) | (4,937 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Grant income | 605 | 156 | 796 | 319 | ||||||||||||
| Interest, dividend and investment income (expense), net | (15 | ) | 94 | (28 | ) | 22 | ||||||||||
| Change in fair value of warrant liability | (12,369 | ) | (507 | ) | (12,369 | ) | (52 | ) | ||||||||
| Total other income (expense), net | (11,779 | ) | (257 | ) | (11,601 | ) | 289 | |||||||||
| Net loss | $ | (17,080 | ) | $ | (2,876 | ) | $ | (21,558 | ) | $ | (4,648 | ) | ||||
| Other comprehensive gain: | ||||||||||||||||
| Unrealized gain on available-for-sale securities | 307 | 73 | ||||||||||||||
| Comprehensive loss | $ | (17,080 | ) | $ | (2,569 | ) | $ | (21,558 | ) | $ | (4,575 | ) | ||||
| Net loss per share attributable to common stockholders, basic and diluted | $ | (1.46 | ) | $ | (0.25 | ) | $ | (1.85 | ) | $ | (0.40 | ) | ||||
| Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 11,720,530 | 11,614,754 | 11,684,374 | 11,614,551 |
Candel Therapeutics, Inc.
Consolidated Balance Sheet Data
| JUNE 30, 2021 | DECEMBER 31, 2020 | |||||||
| Cash, cash equivalents and marketable securities | $ | 24,316 | $ | 35,053 | ||||
| Working capital | 19,932 | 30,433 | ||||||
| Total assets | 30,744 | 38,282 | ||||||
| Warrant liability | 19,200 | 6,831 | ||||||
| Total other liabilities | 5,659 | 5,953 | ||||||
| Accumulated deficit | $ | (65,729 | ) | $ | (44,171 | ) | ||
| Total stockholder deficit | (43,175 | ) | (23,562 | ) |
About Candel Therapeutics
Candel is a late clinical stage biopharmaceutical company focused on helping patients fight cancer with oncolytic viral immunotherapies. Candel s
engineered viruses are designed to induce immunogenic cell death through direct viral-mediated cytotoxicity in cancer cells, thus releasing tumor neo-antigens and creating a
pro-inflammatory microenvironment at the site of injection. Candel has established two oncolytic viral immunotherapy platforms based on novel, genetically modified adenovirus and herpes simplex virus (HSV)
constructs, respectively. CAN-2409 is the lead product candidate from the adenovirus platform and CAN-3110 is
the lead product candidate from the HSV platform. New discovery programs are based on the HSV platform.
For more information about Candel,
visit www.candeltx.com.
Forward-Looking Statements
This press release includes certain disclosures that contain forward-looking statements, within the meaning of the Private Securities Litigation
Reform Act of 1995, as amended, including, without limitation, express or implied statements regarding the timing and advancement of development programs, include key data readout milestones; expectations regarding the therapeutic benefit of its
programs; and expectations regarding cash runway and expenditures. The words may, will, could, would, should, expect, plan, anticipate,
intend, believe, estimate, predict, project, potential, continue, target and similar expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain these identifying words. Any forward-looking statements in this press release are based on management s current expectations and beliefs and are subject to a number of risks, uncertainties and
important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation, those risks and uncertainties related to
the timing and advancement of development programs; expectations regarding the therapeutic benefit of the Company s programs; the Company s ability to efficiently discover and develop product candidates; the Company s ability to
obtain and maintain regulatory approval of product candidates; the Company s ability to maintain its intellectual property; the implementation of the Company s business model, and strategic plans for the Company s business and product
candidates, and other risks identified in the Company s SEC filings, including the Company s Registration Statement on Form S-1, the Company s Quarterly Report on Form 10-Q to be filed on or about the date of this press release, and
subsequent filings with the SEC. The Company cautions you not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. The Company disclaims any obligation to publicly update or revise any such
statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking
statements. Any forward-looking statements contained in this press release represent the Company s views only as of the date hereof and should not be relied upon as representing its views as of any subsequent date.
Heidi Chokeir, Ph.D.
Canale Communications
Chief Business Officer