Full Press Release Details
Cogent Biosciences Reports Third Quarter 2020
Financial Results and Provides Corporate Updates
Andrew Robbins appointed President, CEO and Director
Final results from PLX9486 + sunitinib Phase 1/2 study in GIST patients selected for oral presentation at Connective Tissue Oncology Society
Ended quarter with $129.4 million in cash, including proceeds from $104.4M Series A preferred stock
CAMBRIDGE, Mass., November 9, 2020 Cogent Biosciences, Inc. (Nasdaq: COGT), a biotechnology company focused on
developing precision therapies for genetically defined diseases, today announced financial results for the third quarter ended September 30, 2020 and provided several corporate updates.
Over the past quarter, Cogent Biosciences has made tremendous progress establishing a clear strategy and focus that positions us as an emerging leader
in the field of precision medicines for patients with genetically driven diseases, said Andrew Robbins, President and CEO of Cogent Biosciences. We are excited by the potential of our lead program, PLX9486, and look forward to presenting
final clinical data from its Phase 1/2 study in GIST patients at CTOS 2020. We look forward to initiating new clinical trials of PLX9486 in patients with systemic mastocytosis and GIST in 2021, beginning in 1H 2021 with a trial of PLX9486 in
advanced systemic mastocytosis (ASM) patients.
Recent Program and Corporate Highlights
Reverse Stock Split Enabling Preferred Share Conversion
At a special shareholder meeting held on November 6, 2020, Cogent Biosciences stockholders approved a reverse stock split. With this authority,
Cogent Biosciences board of directors approved the reverse stock split at a ratio of 1-for-4, effective November 6, 2020. This ensured that sufficient common
shares were authorized and issuable to allow for full conversion of the Series A Preferred Stock. Cogent Biosciences common stock will begin trading on a split- adjusted basis upon market open on November 9, 2020. Immediately following
the Reverse Stock Split and assuming full conversion of the Series A preferred stock, Cogent Biosciences would have approximately 52.2 million shares of Common Stock outstanding.
The reverse stock split impacts all holders of Cogent Biosciences stock proportionally and will not impact any stockholder s percentage ownership of
Third Quarter 2020 Financial Results
About Cogent Biosciences, Inc.
Cogent Biosciences is a biotechnology company focused on developing precision therapies for genetically defined diseases. The most advanced clinical program,
PLX9486, is a selective tyrosine kinase inhibitor that is designed to potently inhibit the KIT D816V mutation as well as other mutations in KIT exon 17. KIT D816V is responsible for driving systemic mastocytosis, a serious disease caused by
unchecked proliferation of mast cells. Exon 17 mutations are also found in patients with advanced gastrointestinal stromal tumors (GIST), a type of cancer with strong dependence on oncogenic KIT signaling. Cogent Biosciences is headquartered in
Cambridge, MA. Visit our website for more information at www.cogentbio.com. Follow Cogent Biosciences on social media: Twitter and LinkedIn.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995,
including, but not limited to, statements regarding: projected cash runways; future product development plans; upcoming results from clinical trials including from its lead program, PLX9486; and any future payouts under the CVR. The use of words
such as, but not limited to, anticipate, believe, continue, could, estimate, expect, intend, may, might, plan,
potential, predict, project, should, target, will, or would and similar words expressions are intended to identify forward-looking statements. Forward-looking
statements are neither historical facts nor assurances of future performance. Instead, they are based on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, our clinical results and
other future conditions. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. No representations or warranties (expressed or implied) are
made about the accuracy of any such forward-looking statements. We may not actually achieve the forecasts disclosed in our forward-looking statements, and you should not place undue reliance on
our forward-looking statements. Such forward-looking statements are subject to a number of material risks and uncertainties including but not limited to those set forth under the caption Risk Factors in Cogent s most recent Annual
Report on Form 10-K filed with the SEC, as well as discussions of potential risks, uncertainties, and other important factors in our subsequent filings with the SEC. Any forward-looking statement speaks only
as of the date on which it was made. Neither we, nor our affiliates, advisors or representatives, undertake any obligation to publicly update or revise any forward-looking statement, whether as result of new information, future events or otherwise,
except as required by law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date hereof.
COGENT BIOSCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except share and per share amounts)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Collaboration revenue | $ | 312 | $ | 1,020 | $ | 7,871 | $ | 7,211 | ||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 5,003 | 10,335 | 19,630 | 33,355 | ||||||||||||
| General and administrative | 5,598 | 2,721 | 12,074 | 8,274 | ||||||||||||
| Acquired in-process research and development | 46,910 | 46,910 | ||||||||||||||
| Total operating expenses | 57,511 | 13,056 | 78,614 | 41,629 | ||||||||||||
| Loss from operations | (57,199 | ) | (12,036 | ) | (70,743 | ) | (34,418 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 23 | 31 | 73 | 206 | ||||||||||||
| Gain on disposal of long-lived assets | 7,463 | 82 | 7,470 | 82 | ||||||||||||
| Other income | 239 | 239 | ||||||||||||||
| Change in fair value of CVR liability | (509 | ) | (509 | ) | ||||||||||||
| Total other income (expense), net | 7,216 | 113 | 7,273 | 288 | ||||||||||||
| Net loss | $ | (49,983 | ) | $ | (11,923 | ) | $ | (63,470 | ) | $ | (34,130 | ) | ||||
| Net loss per common share, basic and diluted | $ | (5.07 | ) | $ | (1.56 | ) | $ | (7.56 | ) | $ | (4.49 | ) | ||||
| Weighted average common shares outstanding, basic and diluted | 9,850,530 | 7,665,281 | 8,392,741 | 7,604,688 | ||||||||||||
| Comprehensive loss: | ||||||||||||||||
| Net loss | $ | (49,983 | ) | $ | (11,923 | ) | $ | (63,470 | ) | $ | (34,130 | ) |
COGENT BIOSCIENCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
| September 30, 2020 | December 31, 2019 | |||||||
| Cash, cash equivalents and marketable securities | $ | 129,420 | $ | 37,424 | ||||
| Working capital | $ | 113,295 | $ | 27,343 | ||||
| Total assets | $ | 139,870 | $ | 49,423 | ||||
| Total liabilities | $ | 23,812 | $ | 17,661 | ||||
| Total stockholders equity (deficit) | $ | (22,174 | ) | $ | 31,762 |