Full Press Release Details
REGENXBIO Reports First Quarter 2022 Financial Results and Recent Operational Highlights
ROCKVILLE, Md., May 4, 2022 (PRNewswire) -- REGENXBIO Inc. (Nasdaq: RGNX) today announced financial results for the first quarter ended March 31, 2022, and recent operational highlights.
"We are encouraged by our progress this year as we work to advance the development of our leading AAV Therapeutics pipeline," said Kenneth T. Mills, President and Chief Executive Officer of REGENXBIO. "As we continue to enroll patients in two pivotal trials, RGX-314 continues to be on track for a 2024 BLA submission. We are collaborating with AbbVie on our subretinal and suprachoroidal trials for the treatment of wet AMD and diabetic retinopathy, as we aim to make a significant impact for the millions of patients suffering from vision loss associated with these retinal diseases."
Mr. Mills continued: "We remain deeply committed to developing programs for rare diseases. Though we made the difficult decision to delay dosing patients in our RGX-202 trial, we continue to prepare for trial initiation. Plans for the expanded enrollment in our MPS II and MPS I clinical trials continue, and we look forward to sharing further updates on these trials in the second half of the year. Additionally, our state-of-the-art, in-house cGMP manufacturing facility is operational, and will be instrumental in advancing our programs. We look forward to leveraging our strong cash position to achieve our recently announced 5x'25' goal of progressing five AAV Therapeutics from our internal pipeline and licensed programs into pivotal-stage or commercial products by 2025."
Program Highlights and Milestones
RGX-314: RGX-314 is an investigational one-time AAV Therapeutic being developed in collaboration with AbbVie for the treatment of wet age-related macular degeneration (wet AMD), diabetic retinopathy (DR) and other additional chronic retinal conditions. RGX-314 uses the NAV AAV8 vector to deliver a gene encoding a therapeutic antibody fragment to inhibit vascular endothelial growth factor (VEGF).
RGX-202: RGX-202 is an investigational one-time AAV Therapeutic for the treatment of Duchenne Muscular Dystrophy (Duchenne), using the NAV AAV8 vector to deliver a transgene for a novel microdystrophin that includes the functional elements of the C-Terminal (CT) domain as well as a muscle specific promoter to support a targeted therapy for improved resistance to muscle damage associated with Duchenne.
RGX-121: RGX-121 is an investigational one-time AAV Therapeutic for the treatment of Mucopolysaccharidosis Type II (MPS II), also known as Hunter Syndrome, using the NAV AAV9 vector to deliver the gene that encodes the iduronate-2-sulfatase (I2S) enzyme.
RGX-111: RGX-111 is an investigational one-time AAV Therapeutic for the treatment of severe Mucopolysaccharidosis Type I (MPS I), using the NAV AAV9 vector to deliver the -l-iduronidase (IDUA) gene.
NAV Technology Licensee Program Highlights
As of March 31, 2022, REGENXBIO's NAV Technology Platform was being applied in one marketed product and multiple clinical stage partnered programs, with the potential to impact a broad range of therapeutic areas and disease indications.
Cash Position: Cash, cash equivalents and marketable securities were $764.8 million as of March 31, 2022, compared to $849.3 million as of December 31, 2021. The decrease was primarily attributable cash
used to fund operating activities and capital expenditures and temporary unrealized losses on marketable debt securities during the quarter ended March 31, 2022.
Revenues: Revenues were $22.2 million for the three months ended March 31, 2022, compared to $18.9 million for the three months ended March 31, 2021. The increase was primarily attributable to Zolgensma royalty revenues, which increased by $3.3 million, from $18.3 million for the first quarter of 2021 to $21.5 million for the first quarter of 2022. As reported by Novartis, sales of Zolgensma for the first quarter of 2022 increased by 14% as compared to the first quarter of 2021, driven by geographic expansion of product access.
Research and Development Expenses: Research and development expenses were $55.6 million for the three months ended March 31, 2022, compared to $39.7 million for the three months ended March 31, 2021. The increase was primarily attributable to personnel costs as a result of increased headcount, and costs associated with clinical trials and manufacturing-related activities for our lead product candidates.
General and Administrative Expenses: General and administrative expenses were $22.3 million for the three months ended March 31, 2022, compared to $17.8 million for the three months ended March 31, 2021. The increase was primarily attributable to personnel costs as a result of increased headcount and professional fees for advisory and other services.
Net Loss: Net loss was $76.7 million, or $1.79 basic and diluted net loss per share, for the three months ended March 31, 2022, compared to a net loss of $50.1 million, or $1.20 basic and diluted net loss per share, for the three months ended March 31, 2021. Net loss for the first quarter of 2022 includes a non-recurring charge of $9.2 million recorded as cost of revenues related to the amendment of our license agreement with The Trustees of the University of Pennsylvania.
Based on its current operating plan, REGENXBIO expects its balance in cash, cash equivalents and marketable securities of $764.8 million as of March 31, 2022 to fund its operations into 2025.
In connection with this announcement, REGENXBIO will host a conference call and webcast today at 4:30 p.m. ET. To access the live call by phone, dial (855) 422-8964 (domestic) or (210) 229-8819 (international) and enter the passcode 5581898. To access a live or recorded webcast of the call, please visit the "Investors" section of the REGENXBIO website at www.regenxbio.com. The recorded webcast will be available for approximately 30 days following the call.
About REGENXBIO Inc.
REGENXBIO is a leading clinical-stage biotechnology company seeking to improve lives through the curative potential of gene therapy. REGENXBIO's NAV Technology Platform, a proprietary adeno-associated virus (AAV) gene delivery platform, consists of exclusive rights to more than 100 novel AAV vectors, including AAV7, AAV8, AAV9 and AAVrh10. REGENXBIO and its third-party NAV Technology Platform Licensees are applying the NAV Technology Platform in the development of a broad pipeline of candidates, including late-stage and commercial programs, in multiple therapeutic areas. REGENXBIO is committed to a "5x'25" strategy to progress five AAV Therapeutics from our internal pipeline and licensed programs into pivotal-stage trials or commercial products by 2025.
Forward-Looking Statements
This press release includes "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements express a belief, expectation or intention and are generally accompanied by words that convey projected future events or outcomes such as "believe," "may," "will," "estimate,"
"continue," "anticipate," "assume," "design," "intend," "expect," "could," "plan," "potential," "predict," "seek," "should," "would" or by variations of such words or by similar expressions. The forward-looking statements include statements relating to, among other things, REGENXBIO's future operations and clinical trials. REGENXBIO has based these forward-looking statements on its current expectations and assumptions and analyses made by REGENXBIO in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors REGENXBIO believes are appropriate under the circumstances. However, whether actual results and developments will conform with REGENXBIO's expectations and predictions is subject to a number of risks and uncertainties, including the timing of enrollment, commencement and completion and the success of clinical trials conducted by REGENXBIO, its licensees and its partners, the timing of commencement and completion and the success of preclinical studies conducted by REGENXBIO and its development partners, the timely development and launch of new products, the ability to obtain and maintain regulatory approval of product candidates, the ability to obtain and maintain intellectual property protection for product candidates and technology, trends and challenges in the business and markets in which REGENXBIO operates, the size and growth of potential markets for product candidates and the ability to serve those markets, the rate and degree of acceptance of product candidates, the impact of the COVID-19 pandemic or similar public health crises on REGENXBIO's business, and other factors, many of which are beyond the control of REGENXBIO. Refer to the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of REGENXBIO's Annual Report on Form 10-K for the year ended December 31, 2021, and comparable "risk factors" sections of REGENXBIO's Quarterly Reports on Form 10-Q and other filings, which have been filed with the U.S. Securities and Exchange Commission (SEC) and are available on the SEC's website at www.sec.gov. All of the forward-looking statements made in this press release are expressly qualified by the cautionary statements contained or referred to herein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on REGENXBIO or its businesses or operations. Such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Readers are cautioned not to rely too heavily on the forward-looking statements contained in this press release. These forward-looking statements speak only as of the date of this press release. Except as required by law, REGENXBIO does not undertake any obligation, and specifically declines any obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CONSOLIDATED BALANCE SHEETS
| March 31, 2022 | December 31, 2021 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 191,873 | $ | 345,209 | ||||
| Marketable securities | 202,261 | 112,230 | ||||||
| Accounts receivable, net | 27,022 | 32,439 | ||||||
| Prepaid expenses | 18,542 | 18,752 | ||||||
| Other current assets | 7,179 | 10,196 | ||||||
| Total current assets | 446,877 | 518,826 | ||||||
| Marketable securities | 370,659 | 391,907 | ||||||
| Accounts receivable, net | 2,084 | 2,262 | ||||||
| Property and equipment, net | 135,264 | 131,547 | ||||||
| Operating lease right-of-use assets | 59,925 | 60,904 | ||||||
| Restricted cash | 2,030 | 2,030 | ||||||
| Other assets | 8,529 | 6,428 | ||||||
| Total assets | $ | 1,025,368 | $ | 1,113,904 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 24,708 | $ | 11,387 | ||||
| Accrued expenses and other current liabilities | 48,423 | 76,111 | ||||||
| Deferred revenue | 3,333 | 3,333 | ||||||
| Operating lease liabilities | 2,121 | 1,752 | ||||||
| Liability related to sale of future royalties | 41,352 | 37,889 | ||||||
| Total current liabilities | 119,937 | 130,472 | ||||||
| Operating lease liabilities | 85,568 | 84,929 | ||||||
| Liability related to sale of future royalties | 122,514 | 133,460 | ||||||
| Other liabilities | 7,680 | 745 | ||||||
| Total liabilities | 335,699 | 349,606 | ||||||
| Stockholders' equity | ||||||||
| Preferred stock; no shares issued and outstanding at March 31, 2022 and December 31, 2021 | - | - | ||||||
| Common stock; 42,982 and 42,831 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 4 | 4 | ||||||
| Additional paid-in capital | 939,570 | 928,095 | ||||||
| Accumulated other comprehensive loss | (11,950 | ) | (2,569 | ) | ||||
| Accumulated deficit | (237,955 | ) | (161,232 | ) | ||||
| Total stockholders' equity | 689,669 | 764,298 | ||||||
| Total liabilities and stockholders' equity | $ | 1,025,368 | $ | 1,113,904 |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except per share data)
| Three Months Ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| Revenues | ||||||||
| License and royalty revenue | $ | 22,218 | $ | 18,884 | ||||
| Total revenues | 22,218 | 18,884 | ||||||
| Operating Expenses | ||||||||
| Cost of revenues | 15,717 | 4,851 | ||||||
| Research and development | 55,627 | 39,722 | ||||||
| General and administrative | 22,318 | 17,838 | ||||||
| Credit losses and other | 83 | 515 | ||||||
| Total operating expenses | 93,745 | 62,926 | ||||||
| Loss from operations | (71,527 | ) | (44,042 | ) | ||||
| Other Income (Expense) | ||||||||
| Interest income from licensing | 94 | 29 | ||||||
| Investment income | 799 | 580 | ||||||
| Interest expense | (6,130 | ) | (6,702 | ) | ||||
| Total other income (expense) | (5,237 | ) | (6,093 | ) | ||||
| Loss before income taxes | (76,764 | ) | (50,135 | ) | ||||
| Income Tax Benefit (Expense) | 41 | (4 | ) | |||||
| Net loss | $ | (76,723 | ) | $ | (50,139 | ) | ||
| Other Comprehensive Loss | ||||||||
| Unrealized loss on available-for-sale securities, net | (9,381 | ) | (1,008 | ) | ||||
| Total other comprehensive loss | (9,381 | ) | (1,008 | ) | ||||
| Comprehensive loss | $ | (86,104 | ) | $ | (51,147 | ) | ||
| Net loss per share, basic and diluted | $ | (1.79 | ) | $ | (1.20 | ) | ||
| Weighted-average common shares outstanding, basic and diluted | 42,944 | 41,819 |
Corporate Communications
Chris Brinzey, ICR Westwicke