Full Press Release Details
Morphic Announces Corporate Highlights and Financial Results for the Full Year 2020
Announced positive preliminary results from Phase 1 SAD clinical trial of MORF-057
AbbVie exercised license option to v 6 integrin inhibitor program for fibrotic diseases
Expanded research and development collaboration with Janssen through third integrin program
Conference call today at 8:00 a.m. ET
WALTHAM, Mass., March 1, 2021 - 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 2020.
2020 and Recent Corporate Highlights
"The past year challenged how we work and live but the Morphic team came together to drive tremendous advances in the creation of oral integrin therapies. Most notably in 2020, our lead oral candidate in IBD, MORF-
057, completed preclinical testing with strong proof-of-concept and entered the clinic. In an important milestone for Morphic, we have already delivered positive preliminary results from the MORF-057 Phase 1 trial. The data show a favorable tolerability profile as well as strong pharmacodynamic data that suggest 4 7 inhibition may be on par with the approved intravenous blockbuster, vedolizumab. Further, we expanded our strategic collaborations with AbbVie and Janssen to explore a broader scope of integrin drug targets and potentially boost our partnered pipeline," commented Praveen Tipirneni, M.D., president and chief executive officer of Morphic Therapeutic. "In the year ahead, with a strong financial base, we are able to focus on advancing the clinical development of MORF-057 and our promising preclinical programs targeting v 1 and v 8, as well as continuing to expand the MInT platform that generates this pipeline of novel integrin therapeutic candidates."
Financial Results for the Full Year 2020
As of December 31, 2020, Morphic had cash, cash equivalents and marketable securities of $228.3 million, compared to $237.0 million as of December 31, 2019. Morphic believes its cash, cash equivalents and marketable securities as of December 31, 2020, will be sufficient to fund operating expenses and capital expenditure requirements into 2023.
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 or our partners'
plans or ability to develop, obtain approval for any indication or disease and/or commercialize any oral small-molecule integrin therapeutics, including MORF-057, MORF-720, MORF-627, and any other candidates in development, the ability of MORF-057 to treat inflammatory bowel disease, the ability of MORF-720 and MORF-627 to treat idiopathic pulmonary fibrosis as well as other fibrotic diseases, the potential impact of the COVID-19 pandemic 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," "anticipate" 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-057, MORF-720, and other product candidates, the timing and results of preclinical studies and clinical trials, the potential impact of the COVID-19 pandemic, 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.
Webcast and Conference Call
Morphic will host a webcast and conference call at 8:00 AM ET today to discuss financial and operational results for fiscal year 2020 and the MORF-057 interim data from the SAD portion of ongoing MORF-057 Phase 1 clinical trial.
A live webcast of the call will be available on the Investors section of Morphic's website at www.morphictx.com. An archived replay will be available on the company's website following the conference call.
To participate in the live conference call, please use the following dial-in information:
US or Canada Toll-Free Dial-In Number: (844) 954-0202
International Dial-In Number: (661) 407-1533
Conference ID: 6992416
FINANCIAL TABLES TO FOLLOW
Morphic Holding Inc.
Condensed Consolidated Statements of Operations
(in thousands, except share and per share data)
| Year Ended December 31, | ||||||
| 2020 | 2019 | |||||
| Collaboration revenue | $ | 44,945 | $ | 16,977 | ||
| Operating expenses: | ||||||
| Research and development | 73,630 | 53,732 | ||||
| General and administrative | 18,495 | 10,233 | ||||
| Total operating expenses | 92,125 | 63,965 | ||||
| Loss from operations | (47,180) | (46,988) | ||||
| Other income: | ||||||
| Interest income, net | 1,630 | 4,666 | ||||
| Other expense, net | (19) | (94) | ||||
| Total other income, net | 1,611 | 4,572 | ||||
| Loss before provision for income taxes | (45,569) | (42,416) | ||||
| Benefit from (provision for) income taxes | 570 | (912) | ||||
| Net loss | $ | (44,999) | $ | (43,328) | ||
| Net loss per share, basic and diluted | (1.47) | (2.69) | ||||
| Weighted average common shares outstanding, basic and diluted | 30,594,897 | 16,101,928 |
Morphic Holding Inc.
Condensed Consolidated Balance Sheets
| December 31, 2020 | December 31, 2019 | |||||
| Assets | ||||||
| Cash, cash equivalents and marketable securities | $ | 228,264 | $ | 237,016 | ||
| Other current assets | 11,171 | 6,557 | ||||
| Total current assets | 239,435 | 243,573 | ||||
| Other assets | 2,947 | 3,862 | ||||
| Total assets | $ | 242,382 | $ | 247,435 | ||
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities | $ | 39,438 | $ | 35,350 | ||
| Long-term liabilities | 57,747 | 71,167 | ||||
| Total liabilities | 97,185 | 106,517 | ||||
| Total stockholders' equity | 145,197 | 140,918 | ||||
| Total liabilities and stockholders' equity | $ | 242,382 | $ | 247,435 |