Full Press Release Details
Morphic Announces Corporate Highlights and Financial Results for the Full Year 2019
WALTHAM, Mass. February 27, 2020 Morphic Therapeutic (NASDAQ: MORF), a biopharmaceutical company developing a new generation of oral integrin therapies for the treatment of serious chronic diseases, today reported corporate highlights and financial results for the full year 2019.
2019 and Recent Corporate Highlights:
Morphic Therapeutic made tremendous progress in our mission to develop oral integrin therapeutics during 2019 across both the developmental and financial aspects of our business. Notably, we completed a successful IPO in July 2019 that provided us with substantial resources to advance our proprietary pipeline of integrin-targeted candidates. Further, we struck an important partnership with Janssen that supports the exploration of a broader scope of integrin drug targets, commented Praveen Tipirneni, M.D., president and chief executive officer of Morphic Therapeutic. Moving forward, Morphic began 2020 with important milestones that signal the near-term initiation of clinical trials of our development pipeline. We recently presented preclinical data at ECCO 2020 supporting MORF-057's mechanism of action as being analogous to that of approved therapeutic vedolizumab, with a potentially superior target interaction profile and oral administration.
Financial Results for the Full Year 2019
As of December 31, 2019, Morphic had cash, cash equivalents and marketable securities of $237.0 million, compared to $185.9 million as of December 31, 2018. Morphic believes its cash, cash equivalents and marketable securities as of December 31, 2019, will be sufficient to fund operating expenses and capital expenditure requirements at least through 2022.
About Morphic Therapeutic
Morphic Therapeutic is a biopharmaceutical company developing a new generation of oral integrin therapies for the treatment of serious chronic diseases, including autoimmune, cardiovascular and metabolic diseases, fibrosis and cancer. In collaboration with AbbVie, Janssen, and Schr dinger, Morphic is advancing its pipeline and discovery activities using its proprietary MInT technology platform which leverages the Company's unique understanding of integrin structure and biology. For more information, visit www.morphictx.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to: Morphic's plan to develop and commercialize oral small-molecule integrin therapeutics and Morphic's expectations about timing and ability to obtain regulatory approvals for MORF-720, MORF-057, and other candidates in development and the sufficiency of our cash, cash equivalents and investments to fund our operations. Statements including words such as believe, plan, continue, expect, will be, develop, signal, potential, or ongoing and statements in the future tense are forward-looking statements. These forward-looking statements involve risks and uncertainties, as well as assumptions, which, if they do not fully materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements are subject to risks and uncertainties that may cause Morphic's actual activities or results to differ significantly from those expressed in any forward-looking statement, including risks and uncertainties related to Morphic's ability to develop, obtain regulatory approval for and commercialize MORF-720, MORF-057, and other product candidates, the timing and results of preclinical studies and clinical trials, Morphic's ability to protect intellectual property; and other risks set forth in our filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof and Morphic specifically disclaims any obligation to update these forward-looking statements or reasons why actual results might differ, whether as a result of new information, future events or otherwise, except as required by law.
- Financial Tables to Follow-
Morphic Holding Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
| Year Ended December 31, | ||||||
| 2019 | 2018 | |||||
| Collaboration revenue - AbbVie | $ | 10,797 | $ | 3,358 | ||
| Collaboration revenue - Janssen | 6,180 | |||||
| 16,977 | 3,358 | |||||
| Operating expenses: | ||||||
| Research and development | 53,732 | 22,631 | ||||
| General and administrative | 10,233 | 5,355 | ||||
| Total operating expenses | 63,965 | 27,986 | ||||
| Loss from operations | (46,988) | (24,628) | ||||
| Other income: | ||||||
| Interest income, net | 4,666 | 871 | ||||
| Other expense, net | (94) | (74) | ||||
| Total other income, net | 4,572 | 797 | ||||
| Loss before provision for income taxes | (42,416) | (23,831) | ||||
| Provision for income taxes | (912) | |||||
| Net loss | $ | (43,328) | $ | (23,831) | ||
| Net loss per share, basic and diluted | (2.69) | (22.28) | ||||
| Weighted average common shares outstanding, basic and diluted | 16,101,928 | 1,069,762 |
Morphic Holding Inc.
Condensed Consolidated Balance Sheets
| December 31, 2019 | December 31, 2018 | |||||
| Assets | ||||||
| Cash, cash equivalents and marketable securities | $ | 237,016 | $ | 185,901 | ||
| Other current assets | 6,557 | 1,222 | ||||
| Total current assets | 243,573 | 187,123 | ||||
| Other assets | 3,862 | 2,182 | ||||
| Total assets | $ | 247,435 | $ | 189,305 | ||
| Liabilities, Convertible Preferred Stock and Stockholders' Equity (Deficit) | ||||||
| Current liabilities | $ | 35,350 | $ | 34,903 | ||
| Long-term liabilities | 71,167 | 67,145 | ||||
| Total liabilities | 106,517 | 102,048 | ||||
| Convertible preferred stock | 139,809 | |||||
| Total stockholders' equity (deficit) | 140,918 | (52,552) | ||||
| Total liabilities, convertible preferred stock and stockholders' equity (deficit) | $ | 247,435 | $ | 189,305 |
Tom Donovan, Ten Bridge Communications