Full Press Release Details
Monte Rosa Therapeutics Reports Second Quarter 2021 Financial Results and
Highlights Pipeline and Business Progress
Completed upsized $255.6 million IPO; cash runway extended into late 2024
Continued advancement of QuEENTM protein degradation platform and pipeline of
molecular glue degraders, including NEK7 program
BOSTON, August 12, 2021 Monte Rosa Therapeutics, Inc. (NASDAQ: GLUE), a biotechnology company developing novel molecular glue
precision medicines today reported business highlights and financial results for the second quarter, ended June 30, 2021.
successful initial public offering and with several pivotal additions to our leadership team, we are excited to have the resources in place to advance our pipeline of novel molecular glues towards and into the clinic and to continue the development
of our unique and proprtietary QuEEN platform. We are delighted by the continuing progress of our pipeline of molecular glue degraders, including the recent transition of our NEK7 program into
lead optimization, said Markus Warmuth, M.D., CEO of Monte Rosa. As we look ahead for the year, we remain on track to progress a development candidate for our lead program targeting GSPT1 into
IND-enabling studies. We also expect to advance at least one additional program into lead optimization this year. All of this will bring us closer to our goal of tackling the previously undruggable or
inadequately drugged target protein universe and fostering a new generation of precision medicine therapeutics.
SECOND QUARTER 2021 & RECENT
KEY UPCOMING MILESTONES + EVENTS
SECOND QUARTER 2021 FINANCIAL RESULTS
Development (R&D) Expenses: R&D expenses for the second quarter of 2021 were $14.6 million, compared to $4.9 million for the second quarter of 2020. The increase in R&D expense was primarily due to the
expansion of research and development activities in the United States and Switzerland including increased headcount and facilities, as well as corresponding increases in laboratory related expenses.
General and Administrative (G&A) Expenses: G&A expenses for the second quarter of 2021 were $3.5 million, compared to
$0.5 million for the second quarter of 2020. The increase in G&A expense was a result of increased headcount and expenses in support of the company s growth.
Net Loss: Net loss for the second quarter of 2021 was $18.4 million, compared to $5.4 million for the second quarter of 2020.
Cash Position and Financial Guidance: Cash and cash equivalents as of June 30,
2021, were $357.1 million, compared to $41.7 million as of December 31, 2020. The June 30th balance does not include the additional $31.0 million in net proceeds the company received as part of its initial public
offering from the full exercise of the underwriters option to purchase up to an additional 1,755,000 shares of common stock at the public offering price of $19.00 per share. The company expects its cash and cash equivalents , including the
aggregate net proceeds from the initial public offering, will be sufficient to fund our planned operations and capital expenditures into late 2024.
Monte Rosa Therapeutics is a
biotechnology company developing a portfolio of novel molecular glue degrader precision medicines. These medicinesare designed to employ the body s natural mechanisms to selectively eliminate therapeutically relevant proteins. The company has
developed a proprietary protein degradation platform, called QuEENTM (Quantitative and Engineered Elimination of Neosubstrates), that enables it to rapidly identify
protein targets and molecular glue degrader, or MGD, product candidates that are designed to eliminate therapeutically relevant proteins in a highly selective manner. The company s drug discovery platform combines diverse and proprietary
chemical libraries of small molecule protein degraders with in-house proteomics, structural biology, AI/machine learning-based target selection and computational chemistry capabilities to predict and obtain
protein degradation profiles. Monte Rosa was launched from founding investor Versant Ventures Ridgeline Discovery Engine and is headquartered in Boston, Mass., with research operations in both Boston and Basel, Switzerland.
Forward-Looking Statements Statements contained in this press release regarding matters that are not historical facts are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking
statements. Such statements include, but are not limited to, statements regarding the timing for the development candidate selection and initiation of IND-enabling studies for the company s GSPT1 program,
the development of the NEK7 and other programs, including timing for lead optimization and development candidate selection in each program, and the Company s expected cash runway. Any forward-looking statements in this statement are based on
management s current expectations 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.
Risks that contribute to the uncertain nature of the forward-looking statements include: the success, cost, and timing of the Company s program development activities and planned IND-enabling studies, the
Company s ability to execute on its strategy, regulatory developments in the United States, the Company s ability to fund operations, and the impact that the current COVID-19
pandemic will have on the Company s clinical trials and pre-clinical studies, supply chain, and operations, as well as those risks and uncertainties
set forth in its registration statement on form S-1 filed, the quarterly report on Form 10-Q to be filed for the quarter ended June 30, 2021, and its other filings
with the United States Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made. The Company undertakes no obligation to update such statements to reflect
events that occur or circumstances that exist after the date on which they were made.
Consolidated Balance Sheets
(in thousands, except share and per share amounts)
| (in thousands, except share and per share amounts) | June 30, | December 31, | ||||||
| (unaudited) | 2021 | 2020 | ||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 357,060 | $ | 41,699 | ||||
| Prepaid expenses and other current assets | 1,229 | 1,892 | ||||||
| Total current assets | 358,289 | 43,591 | ||||||
| Property and equipment, net | 8,923 | 4,623 | ||||||
| Restricted cash | 1,729 | 1,164 | ||||||
| Total assets | $ | 368,941 | $ | 49,378 | ||||
| Liabilities, convertible preferred stock and stockholders deficit | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 7,463 | $ | 7,066 | ||||
| Accrued expenses and other current liabilities | 3,328 | 2,529 | ||||||
| Preferred stock tranche obligations | 19,680 | |||||||
| Total current liabilities | 10,791 | 29,275 | ||||||
| Defined benefit plan liability | 1,472 | 1,067 | ||||||
| Total liabilities | 12,263 | 30,342 | ||||||
| Commitments and contingencies | ||||||||
| Convertible preferred stock, $0.0001 par value; 10,000,000 shares authorized, an no shares issued and outstanding as of June 30, 2021; and 77,631,514 shares authorized and 53,631,514 shares issued and outstanding as of December 31, 2020 | 67,764 | |||||||
| Stockholders equity (deficit) | ||||||||
| Common stock, $0.0001 par value; 500,000,000 shares authorized, 45,025,857 shares issued and 44,603,724 shares outstanding as of June 30, 2021; and 97,500,000 shares authorized, 2,180,803 shares issued and 1,685,534 shares outstanding as of December 31, 2020 | 4 | 1 | ||||||
| Additional paid-in capital | 436,847 | 404 | ||||||
| Accumulated other comprehensive loss | (1,415 | ) | (1,056 | ) | ||||
| Accumulated deficit | (78,758 | ) | (48,077 | ) | ||||
| Total stockholders equity (deficit) | 356,678 | (48,728 | ) | |||||
| Total liabilities, convertible preferred stock and stockholders equity (deficit) | $ | 368,941 | $ | 49,378 |
Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except share and per share amounts)
| (in thousands, except share and per share amounts) | Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| (unaudited) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | $ | 14,637 | $ | 4,855 | $ | 23,910 | $ | 8,670 | ||||||||
| General and administrative | 3,486 | 541 | 5,717 | 1,019 | ||||||||||||
| Total operating expenses | 18,123 | 5,396 | 29,627 | 9,689 | ||||||||||||
| Loss from operations | (18,123 | ) | (5,396 | ) | (29,627 | ) | (9,689 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest income, net | 14 | 1 | 20 | (2 | ) | |||||||||||
| Foreign currency exchange gain (loss), net | (296 | ) | 31 | (114 | ) | 25 | ||||||||||
| Changes in fair value of preferred stock tranche obligations, net | (960 | ) | ||||||||||||||
| Total other (expense) income | (282 | ) | 32 | (1,054 | ) | 23 | ||||||||||
| Net loss | $ | (18,405 | ) | $ | (5,364 | ) | $ | (30,681 | ) | $ | (9,666 | ) | ||||
| Provision for pension benefit obligation | (495 | ) | (359 | ) | ||||||||||||
| Comprehensive loss | $ | (18,900 | ) | $ | (5,364 | ) | $ | (31,040 | ) | $ | (9,666 | ) | ||||
| Reconciliation of net loss to net loss attributable to common stockholders | ||||||||||||||||
| Net loss | $ | (18,405 | ) | $ | (5,364 | ) | $ | (30,681 | ) | $ | (9,666 | ) | ||||
| Net loss per share attributable to common stockholders basic and diluted | $ | (3.63 | ) | $ | (3.64 | ) | $ | (9.03 | ) | $ | (6.69 | ) | ||||
| Weighted-average number of shares outstanding used in computing net loss per common share basic and diluted | 5,070,554 | 1,475,409 | 3,399,174 | 1,445,820 |
Michael Morabito, Solebury Trout