Full Press Release Details
PDS Biotech Reports Third Quarter 2023 Financial Results and Provides Business Update
PRINCETON, N.J., Nov. 14, 2023 (GLOBE NEWSWIRE) -- PDS Biotechnology Corporation (Nasdaq: PDSB) ("PDS
Biotech" or the "Company"), a clinical-stage immunotherapy company developing a growing pipeline of targeted cancer immunotherapies and infectious disease vaccines based on the Company's proprietary T cell activating platforms, today announced its financial results for the quarter ended September 30, 2023. The Company will provide a business update on its conference call and webcast at 8:00 AM EST today.
"We are pleased with the outcome of the National Cancer Institute (NCI)-led Phase 2 triple combination trial of PDS0101,
PDS01ADC (formerly known as PDS0301) and an investigational immune checkpoint ihnibitor (ICI). The data show that 75% of immune checkpoint inhibitor (ICI)-na ve patients remain alive at three years, and the 12-month overall survival (OS) rate in
the ICI-resistant patients is 72%," said Frank Bedu-Addo, PhD, President and Chief Executive Officer of PDS Biotech. "Furthermore, the triple combination continues to be well tolerated, with only 4% of patients reported to have Grade 4
treatment-related adverse events."
He continued, "As the development of our IL12 fused antibody-drug conjugate or ADC, PDS01ADC, continues to progress, its potential to overcome key safety and efficacy
limitations associated with existing cytokine therapy is reinforced. Data presented at Cytokines 2023 marked the first-in-human clinical trial evaluating the combination of docetaxel chemotherapy and PDS01ADC to treat advanced metastatic castration
sensitive (mCSPC) and castration resistant prostate cancer (mCRPC). Decreases in prostate-specific antigen (PSA) levels were reported in all patients. In addition, with our lead candidate PDS0101, the interim Phase 2 VERSATILE-002 data presented
during our Key Opinion Leader (KOL) roundtable showed a 2-year overall survival rate of 74% in ICI-na ve human papillomavirus (HPV)16- recurrent/metastatic head and neck cancer patients. We are excited about the strides we are making across our
pipeline, fueled by our commitment to developing groundbreaking therapies that revolutionize cancer treatments."
Recent Business Highlights:
PDS0101 Lead Drug Candidate
PDS01ADC (formerly known as PDS0301): IL12 Fused Antibody Drug Conjugate
PDS0202 Universal Flu Candidate
Third Quarter 2023 Financial Results
Net loss for the three months ended September 30, 2023 was approximately $10.8 million, or $0.35 per basic share and diluted share, compared to a net loss of
approximately $7.4 million, or $0.26 per basic and diluted share, for the three months ended September 30, 2022. The higher net loss reported for the three months ended September 30, 2023 is primarily due to the increase in research and development
expenses and general and administrative expenses.
Research and development expenses increased to $6.4 million for the three months ended September 30, 2023 from $4.4 million for the three months ended September 30,
2022. The increase of $2.0 million is primarily attributable to an increase of $1.3 million in clinical trials, and $0.7 million in personnel costs, including $0.3 million in non-cash stock-based compensation.
General and administrative expenses increased to $4.1 million for the three months ended September 30, 2023 from $2.9 million for the three months ended September 30,
2022. The increase of $1.2 million is primarily attributable to an increase of $0.7 million in personnel costs, including $0.5 million in non-cash stock-based compensation, and $0.5 million in investor relations costs.
PDS Biotech's cash balance as of September 30, 2023 was approximately $54.3 million. PDS Biotech believes that, with initiating the VERSATILE-003 Phase 3 clinical trial
in the first quarter of 2024, its available cash resources will sustain operational and research and development endeavors into the third quarter of 2024. PDS Biotech expects to execute its current operational and research and development endeavors
by obtaining additional capital, principally through entering into collaborations, strategic alliances, or license agreements with third parties and/or additional public or private debt and/or equity financings. The Company has had and continues to
provide, what the Company believes to be favorable development milestones to the market and has upcoming development milestones.
Conference Call and Webcast
The conference call is scheduled to begin at 8:00 AM EST today, November 14, 2023. Participants should dial 877-407-3088 (United States) or 201-389-0927
(International) and reference conference ID 13741454. To access the webcast, please use the following link. The event will be archived in the investor relations section of PDS Biotech's
website for six months.
1 Baumi J, et al. J Clin Oncol 2017:1542-49 and Morris VK, et al. Lancet Oncol 2017;18:446-53.
2Ferris R.L., Nivolumab for Recurrent Squamous-Cell Carcinoma of the Head and Neck; N Engl J Med 2016; 375:1856-1867; Burtness B et al., Pembrolizumab alone
or with chemotherapy versus cetuximab with chemotherapy for recurrent or metastatic squamous cell carcinoma of the head and neck (KEYNOTE- 048): a randomized, open-label phase 3 study; Lancet 2019; 394(10212):1915-1928. *No control or comparative
studies have been conducted between immune checkpoint inhibitors and PDS0101.
3 Strauss J et al. Journal for ImmunoTherapyof Cancer 2020;8:e001395
About PDB Biotechnology
PDS Biotech is a clinical-stage immunotherapy company developing a growing pipeline of targeted cancer and infectious disease immunotherapies based on our proprietary
Versamune , Versamune plus PDS01ADC, and Infectimune T cell-activating platforms. We believe our targeted immunotherapies have the potential to overcome the limitations of current immunotherapy approaches through
the activation of the right type, quantity and potency of T cells. To date, our lead Versamune clinical candidate, PDS0101, has demonstrated the ability to reduce and shrink tumors and stabilize disease in combination with approved and
investigational therapeutics in patients with a broad range of HPV16-associated cancers in multiple Phase 2 clinical trials and plan to advance into a Phase 3 clinical trial in combination with KEYTRUDA for the treatment of
recurrent/metastatic HPV16-positive head and neck cancer in the first quarter 2024. Our Infectimune based vaccines have also demonstrated the potential to induce not only robust and durable neutralizing antibody responses, but also
PDS0101, PDS Biotech's lead candidate, is a novel investigational human papillomavirus (HPV)-targeted immunotherapy that stimulates a potent targeted T cell attack
against HPV-positive cancers. PDS0101 is given by subcutaneous injection alone or in combination with other immunotherapies and cancer treatments. In a Phase 1 study of PDS0101 in monotherapy, the treatment demonstrated the ability to generate
multifunctional HPV16-targeted CD8 and CD4 T cells with minimal toxicity. Interim data suggests PDS0101 generates clinically active immune responses, and the combination of PDS0101 with other treatments can demonstrate significant disease control
by reducing or shrinking tumors, delaying disease progression and/or prolonging survival. The combination of PDS0101 with other treatments does not appear to compound the toxicity of other agents.
PDS01ADC, formerly PDS0301, is a novel investigational tumor-targeting antibody drug conjugate of Interleukin 12 (IL-12) that enhances the proliferation, potency and
longevity of T cells and natural killer cells in the tumor microenvironment. PDS01ADC is given by subcutaneous injection and is designed to improve the safety profile of IL-12
and to enhance the anti-tumor response.
Forward Looking Statements
This communication contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended,
and Section 27A of the United States Securities Act of 1933, as amended) concerning PDS Biotechnology Corporation (the "Company") and other matters. These statements may discuss goals, intentions and expectations as to future plans, trends, events,
results of operations or financial condition, or otherwise, based on current beliefs of the Company's management, as well as assumptions made by, and information currently available to, management. Forward-looking statements generally include
statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as "may," "will," "should," "would," "expect," "anticipate," "plan," "likely," "believe," "estimate," "project," "intend,"
"forecast," "guidance", "outlook" and other similar expressions among others. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual
results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: the Company's ability to protect its intellectual property rights; the Company's anticipated
capital requirements, including the Company's anticipated cash runway and the Company's current expectations regarding its plans for future equity financings; the Company's dependence on additional financing to fund its operations and complete the
development and commercialization of its product candidates, and the risks that raising such additional capital may restrict the Company's operations or require the Company to relinquish rights to the Company's technologies or product candidates;
the Company's limited operating history in the Company's current line of business, which makes it difficult to evaluate the Company's prospects, the Company's business plan or the likelihood of the Company's successful implementation of such
business plan; the timing for the Company or its partners to initiate the planned clinical trials for PDS0101, PDS0203 and other Versamune and Infectimune based product candidates; the future success of such trials; the
successful implementation of the Company's research and development programs and collaborations, including any collaboration studies concerning PDS0101, PDS0203 and other Versamune and Infectimune based product candidates
and the Company's interpretation of the results and findings of such programs and collaborations and whether such results are sufficient to support the future success of the Company's product candidates; the success, timing and cost of the
Company's ongoing clinical trials and anticipated clinical trials for the Company's current product candidates, including statements regarding the timing of initiation, pace of enrollment and completion of the trials (including the Company's
ability to fully fund its disclosed clinical trials, which assumes no material changes to the Company's currently projected expenses), futility analyses, presentations at conferences and data reported in an abstract, and receipt of interim or
preliminary results (including, without limitation, any preclinical results or data), which are not necessarily indicative of the final results of the Company's ongoing clinical trials; the Company's ability to continue as a going concern; any
Company statements about its understanding of product candidates mechanisms of action and interpretation of preclinical and early clinical results from its clinical development programs and any collaboration studies; and other factors, including
legislative, regulatory, political and economic developments not within the Company's control. The foregoing review of important factors that could cause actual events to differ from expectations should not be construed as exhaustive and should be
read in conjunction with statements that are included herein and elsewhere, including the other risks, uncertainties, and other factors described under "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of
Operations" and elsewhere in the documents we file with the U.S. Securities and Exchange Commission. The forward-looking statements are made only as of the date of this press release and, except as required by applicable law, the Company undertakes
no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.
Versamune and Infectimune are registered trademarks of PDS Biotechnology Corporation. KEYTRUDA is a registered trademark of Merck
Sharp and Dohme LLC, a subsidiary of Merck & Co., Inc., Rahway, N.J., USA.
Phone: +1 (404) 736-3838
Email: pdsb@cg.capital
Phone: +1 (917) 797-7904
Email: gcestari@6degreespr.com
PDS BIOTECHNOLOGY CORPORATION AND SUBSIDIARY
Condensed Consolidated Balance Sheets
| September 30, 2023 | December 31, 2022 | |||||||
| ASSETS | (unaudited) | |||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 54,251,387 | $ | 73,820,160 | ||||
| Prepaid expenses and other assets | 2,587,025 | 2,660,230 | ||||||
| Total current assets | 56,838,412 | 76,480,390 | ||||||
| Property and equipment, net | 138,866 | - | ||||||
| Financing lease right-of-use assets | 210,543 | 374,888 | ||||||
| Operating lease right-of-use asset | - | 152,645 | ||||||
| Total assets | $ | 57,187,821 | $ | 77,007,923 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 5,366,564 | $ | 1,219,287 | ||||
| Accrued expenses | 3,732,727 | 8,313,708 | ||||||
| Financing lease obligation-short term | 54,537 | 56,612 | ||||||
| Operating lease obligation-short term | - | 231,429 | ||||||
| Total current liabilities | 9,153,828 | 9,821,036 | ||||||
| Noncurrent liabilities: | ||||||||
| Note payable, net of debt discount | 23,412,764 | 23,020,844 | ||||||
| Financing lease obligation-long term | 137,401 | 164,013 | ||||||
| Total liabilities: | $ | 32,703,993 | $ | 33,005,893 | ||||
| STOCKHOLDERS' EQUITY | ||||||||
| Common stock, $0.00033 par value, 75,000,000 shares authorized at September 30, 2023 and December 31, 2022, 31,007,763 shares and 30,170,317 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively | 10,233 | 9,956 | ||||||
| Additional paid-in capital | 158,075,994 | 145,550,491 | ||||||
| Accumulated deficit | (133,602,399 | ) | (101,558,417 | ) | ||||
| Total stockholders' equity | 24,483,828 | 44,002,030 | ||||||
| Total liabilities and stockholders' equity | $ | 57,187,821 | $ | 77,007,923 |
PDS BIOTECHNOLOGY CORPORATION AND SUBSIDIARY
Condensed Consolidated Statements of Operations and Comprehensive Loss
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development expenses | $ | 6,448,528 | $ | 4,352,987 | $ | 20,297,066 | $ | 13,275,947 | ||||||||
| General and administrative expenses | 4,071,158 | 2,926,209 | 12,341,207 | 9,575,122 | ||||||||||||
| Total operating expenses | 10,519,686 | 7,279,196 | 32,638,273 | 22,851,069 | ||||||||||||
| Loss from operations | (10,519,686 | ) | (7,279,196 | ) | (32,638,273 | ) | (22,851,069 | ) | ||||||||
| Interest income (expenses), net | ||||||||||||||||
| Interest income | 739,404 | 252,073 | 2,219,399 | 332,318 | ||||||||||||
| Interest expense | (1,068,887 | ) | (397,327 | ) | (3,031,129 | ) | (397,326 | ) | ||||||||
| Interest income (expenses), net | (329,483 | ) | (145,254 | ) | (811,730 | ) | (65,008 | ) | ||||||||
| Loss before income taxes | (10,849,169 | ) | (7,424,450 | ) | (33,450,003 | ) | (22,916,077 | ) | ||||||||
| Benefit for income taxes | - | - | 1,406,021 | 1,198,905 | ||||||||||||
| Net loss and comprehensive loss | (10,849,169 | ) | (7,424,450 | ) | (32,043,982 | ) | (21,717,172 | ) | ||||||||
| Per share information: | ||||||||||||||||
| Net loss per share, basic and diluted | $ | (0.35 | ) | $ | (0.26 | ) | $ | (1.04 | ) | $ | (0.76 | ) | ||||
| Weighted average common shares outstanding, basic, and diluted | 30,910,520 | 28,458,688 | 30,715,458 | 28,452,997 |
PDS BIOTECHNOLOGY CORPORATION AND SUBSIDIARY
Condensed Consolidated Statements of Cash Flows
| Nine Months Ended September 30, | ||||||||
| 2023 | 2022 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (32,043,982 | ) | $ | (21,717,172 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Stock-based compensation expense | 6,259,464 | 3,821,923 | ||||||
| Issuance of shares in consulting agreement | 610,000 | - | ||||||
| Amortization of debt discount | 391,920 | 72,722 | ||||||
| Depreciation expense | 12,624 | 86 | ||||||
| Operating lease expense | 160,685 | 180,772 | ||||||
| Finance lease depreciation expense | 30,297 | 37,417 | ||||||
| Changes in assets and liabilities: | ||||||||
| Prepaid expenses and other assets | 73,205 | (1,171,337 | ) | |||||
| Finance lease right-of-use asset | - | (306,487 | ) | |||||
| Accounts payable | 4,147,277 | 727,987 | ||||||
| Accrued expenses | (4,580,981 | ) | 240,799 | |||||
| Finance lease liabilities | - | 138,402 | ||||||
| Operating lease liabilities | (239,469 | ) | (205,885 | ) | ||||
| Net cash used in operating activities | (25,178,960 | ) | (18,180,773 | ) | ||||
| Cash Flows from financing activities: | ||||||||
| Proceeds from issuance of note payable | - | 25,000,000 | ||||||
| Payment for debt issuance costs | - | (449,329 | ) | |||||
| Proceeds from exercise of stock options | 8,849 | 29,917 | ||||||
| Payments of finance lease obligations | (46,129 | ) | - | |||||
| Proceeds from issuance of common stock, net of issuance costs | 5,647,467 | - | ||||||
| Net cash provided by financing activities | 5,610,187 | 24,580,588 | ||||||
| Net increase in cash and cash equivalents | (19,568,773 | ) | 6,399,815 | |||||
| Cash and cash equivalents at beginning of period | 73,820,160 | 65,242,622 | ||||||
| Cash and cash equivalents at the end of period | $ | 54,251,387 | $ | 71,642,437 |