Full Press Release Details
C4 Therapeutics Reports Business Highlights and Third Quarter
2020 Financial Results
Strengthened leadership team with appointments of Andrew Hirsch as Chief Executive Officer, William
McKee as Chief Financial Officer and Jolie M. Siegel as Chief Legal Officer
Completed upsized IPO in October 2020, raising $209.8 million in gross proceeds; cash runway
extended into the second half of 2023
Investigational New Drug (IND) submission for lead candidate, CFT7455, for hematologic
malignancies anticipated by YE 2020; Phase 1/2 study expected to initiate in 1H 2021
WATERTOWN, Mass., Nov. 12, 2020 (GLOBE NEWSWIRE) C4 Therapeutics, Inc. (C4T) (Nasdaq: CCCC), a biopharmaceutical company pioneering a new class of
small-molecule drugs that selectively destroys disease-causing proteins through degradation, today reported financial results for the third quarter ended September 30, 2020, highlighted recent progress and provided a business update.
C4T s recent IPO was a tremendous milestone for our team and an important accomplishment as the company advances our programs to the clinic. With a
strong balance sheet and expanded senior team, we are well-positioned to execute against our pipeline and continue investing in our differentiated TORPEDOTM discovery platform, said Andrew
Hirsch, chief executive officer at C4 Therapeutics. Looking ahead, we expect to have four clinical-stage programs by the end of 2022, including our lead candidate, CFT7455, for hematological malignancies, which is on track for an IND
submission by the end of this year. We believe targeted protein degraders represent a novel class of medicines with distinctive benefits over traditional inhibitor drugs and look forward to exploring their potential in patients.
THIRD QUARTER 2020 AND RECENT HIGHLIGHTS
KEY UPCOMING MILESTONES
UPCOMING INVESTOR EVENTS
THIRD QUARTER 2020 FINANCIAL RESULTS
Revenues: Total revenues for the third quarter of 2020 were $8.4 million, compared to $5.4 million for the third quarter of 2019.
Total revenues reflect revenues recognized under our collaboration agreements with Roche, Biogen and Calico and increased by $3 million compared to the same period of 2019 primarily due to increased reimbursements from Biogen reflecting
increase activities on collaboration projects and related activities.
Research and Development (R&D) Expenses: R&D expenses for the third
quarter of 2020 were $23.9 million, compared to $12.9 million for the third quarter of 2019. The increase in R&D expense was primarily attributable to increased third-party chemistry and biology costs, higher preclinical costs related
to our lead programs and increased workforce expenses to support our growing clinical development activities.
General and Administrative (G&A)
Expenses: G&A expenses for the third quarter of 2020 were $2.9 million, compared to $2.4 million for the third quarter of 2019. The increase in G&A expense was primarily attributable to higher legal and professional costs
supporting the company s growth.
Net Loss: Net loss for the third quarter of 2020 was $21.8 million, compared to $10.1 million for
the third quarter of 2019.
Cash Position and Financial Guidance: Cash, cash equivalents and short-term investments as of September 30, 2020,
were $199.4 million, compared to $90.5 million as of December 31, 2019. The September 30th balance does not include $191.1 million in net proceeds from our initial public offering, which was completed on October 6, 2020. We
expect our cash, cash equivalents and short-term investments, including the net proceeds from our initial public offering and payments to be received under our existing collaboration agreements, will be sufficient to fund planned operating expenses
and capital expenditures into the second half of 2023.
About C4 Therapeutics
C4 Therapeutics (C4T) is a biopharmaceutical company focused on harnessing the body s natural regulation of protein levels to develop novel therapeutic
candidates to target and destroy disease-causing proteins for the treatment of cancer, neurodegenerative conditions and other diseases. This targeted protein degradation approach offers advantages over traditional therapies, including the potential
to treat a wider range of diseases, reduce drug resistance, achieve higher potency, and decrease side effects through greater selectivity. To learn more about C4 Therapeutics, visit www.C4Therapeutics.com.
Forward-Looking Statements
This press release contains
forward-looking statements of C4 Therapeutics, Inc. within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, but may not be limited to, express or implied statements
regarding our ability to develop potential therapies for patients; the design and potential efficacy of our therapeutic approaches; the predictive capability of our TORPEDO platform in the
development of novel, selective, orally bioavailable degraders; the potential timing and advancement of our preclinical studies and clinical trials; our ability and the potential to successfully manufacture and supply our product candidates for
clinical trials; our ability to replicate results achieved in our preclinical studies or clinical trials in any future studies or trials; our current resources and cash runway; and regulatory developments in the United States and foreign countries.
Any forward-looking statements in this press release are based on management s current expectations and beliefs of future events, and are subject to a number of risks and uncertainties that could cause actual results to differ materially and
adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: uncertainties related to the initiation, timing and conduct of studies and other development requirements
for our product candidates; the risk that any one or more of our product candidates will not be successfully developed and commercialized; and the risk that the results of preclinical studies and clinical trials will be predictive of future results
in connection with future studies or trials. For a discussion of these and other risks and uncertainties, and other important factors, any of which could cause C4T s actual results to differ from those contained in the forward-looking
statements, see the section entitled Risk Factors in C4 Therapeutics registration statement on Form S-1, as filed with the Securities and Exchange Commission. All information in this press release
is as of the date of the release, and C4T undertakes no duty to update this information unless required by law.
Consolidated Balance Sheet Data
| SEPTEMBER 30, | DECEMBER 31, | |||||||
| 2020 | 2019 | |||||||
| Cash, cash equivalents and short-term investments | $ | 199,413 | $ | 90,549 | ||||
| Accounts receivable | 4,141 | 4,623 | ||||||
| Total Assets | 229,127 | 118,260 | ||||||
| Deferred revenue | 84,997 | 93,423 | ||||||
| Debt | 9,877 | |||||||
| Stockholders Deficit | (155,924 | ) | (111,963 | ) |
Consolidated Statement of Operations Data
(in thousands, except share and per share data)
| THREE MONTHS ENDED SEPTEMBER 30, | NINE MONTHS ENDED SEPTEMBER 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Revenue from collaboration agreements | $ | 8,447 | $ | 5,364 | $ | 24,933 | $ | 13,172 | ||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 23,935 | 12,948 | 58,007 | 32,042 | ||||||||||||
| General and adminstrative | 2,861 | 2,417 | 8,472 | 6,083 | ||||||||||||
| Total operating expenses | 26,796 | 15,365 | 66,479 | 38,125 | ||||||||||||
| Loss from operations | (18,349 | ) | (10,001 | ) | (41,546 | ) | (24,953 | ) | ||||||||
| Net loss | (21,835 | ) | (10,094 | ) | (44,540 | ) | (24,076 | ) | ||||||||
| Accrual of preferred stock dividends | (5,212 | ) | (2,201 | ) | (10,363 | ) | (6,531 | ) | ||||||||
| Net loss attributable to common stockholders | (27,047 | ) | (12,295 | ) | (54,903 | ) | (30,607 | ) | ||||||||
| Net loss per share - basic and diluted | $ | (17.55 | ) | $ | (8.93 | ) | $ | (36.76 | ) | $ | (22.59 | ) | ||||
| Weighted-average number of shares used in computing net loss per share - basic and diluted | 1,540,902 | 1,376,365 | 1,493,521 | 1,354,734 |
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