Latest News by Industry
– Two confirmed partial responses to SFR388 monotherapy treatment in squamous NSCLC; third patient with NSCLC experienced durable disease stabilization for over a year –
– Company focusing resources on advancement of SRF388 and SRF114, extending cash runway into Q2 2024 –
– Surface reports third quarter 2022 financial results –
– Management to host conference call to discuss SRF388 data and other corporate updates today at 8:30 a.m. ET –
CAMBRIDGE, Mass., Nov. 02, 2022 (GLOBE NEWSWIRE) -- Surface Oncology (Nasdaq: SURF), a clinical-stage immuno-oncology company developing next-generation immunotherapies that target the tumor microenvironment, today provided a corporate update and reported financial results for the third quarter of 2022.
“We are excited by the monotherapy activity seen with SRF388 in relapsed non-small cell lung cancer (NSCLC), an area of high unmet need globally,” said Rob Ross, M.D., chief executive officer. “Two patients with squamous NSCLC have had confirmed partial responses to monotherapy treatment. Both patients had progressed on multiple prior systemic treatments, including anti-PD-(L)1 antibodies and chemotherapy. In addition, a third patient with highly pretreated NSCLC experienced durable disease stabilization and has remained on study for over a year without progression. Based on these promising results in relapsed NSCLC, we have opened the second stage of our trial investigating SRF388 as a monotherapy, and we have treated our first patients in a new cohort to investigate SRF388 in combination with pembrolizumab in second to fourth line NSCLC. We look forward to sharing additional data from those trials in the first half of 2023.”
Dr. Ross added, “While we continue to believe SRF617 holds therapeutic potential in a variety of tumor types, we have made the strategic decision to pause internal development of that program and focus our efforts on SRF388 and SRF114. As a result, we are implementing a corresponding reduction in our workforce. The work done by our impressive team of scientists and clinicians was outstanding, but we believe it is in the best interest of patients and our shareholders to invest our resources where they can have the greatest potential impact in the near term. We are actively pursuing partnership opportunities to advance SRF617 outside of Surface.”
Clinical Program Updates
SRF388, first-in-class antibody targeting IL-27
SRF617, novel antibody targeting CD39
SRF114, potential best-in-class antibody targeting CCR8
Third Quarter and Subsequent Corporate Highlights
Corporate Update Conference Call and Webcast
Surface management will host a conference call and live webcast today, November 2, 2022, at 8:30 a.m. ET to discuss the SRF388 data and other corporate updates. Individuals interested in viewing the webcast may do so by registering via this webcast link or by visiting the Investor Relations section of the company's website at: www.surfaceoncology.com.
To access the conference call by phone, please use this registration link, and you will be provided with dial-in details. A webcast re-play will be available in the investor relations section on the company's website shortly following the completion of the call.
Financial Results
As of September 30, 2022, cash, cash equivalents and marketable securities were $146.4 million, compared to $154.1 million on December 31, 2021. General and administrative (G&A) expenses were $6.0 million for the third quarter ended September 30, 2022, compared to $5.8 million for the same period in 2021. The increase primarily relates to personnel related costs from increased headcount. G&A expenses included $1.1 million in stock-based compensation expense for the third quarter ended September 30, 2022.
Research and development (R&D) expenses were $16.9 million for the third quarter ended September 30, 2022, compared to $14.0 million for the same period in 2021. The increase was primarily driven by expenses incurred for the SRF388 and SRF617 Phase 1 and Phase 2 clinical trials as well as manufacturing expenses incurred for the SRF114 program. R&D expenses included $0.7 million in stock-based compensation expense for the third quarter ended September 30, 2022.
For the third quarter ended September 30, 2022, net loss was $23.2 million, or basic and diluted net loss per share of $0.39. Net loss was $19.9 million for the same period in 2021, or basic and diluted net loss per share of $0.44.
About Surface Oncology
Surface Oncology is an immuno-oncology company developing next-generation antibody therapies focused on the tumor microenvironment. Its pipeline includes two wholly-owned programs; SRF388, a Phase 2 program which targets IL-27, and SRF114 which selectively depletes regulatory T cells in the tumor microenvironment via targeting CCR8. In addition, Surface has two partnerships with major pharmaceutical companies: a collaboration with Novartis targeting CD73 (NZV930; Phase 1) and a collaboration with GlaxoSmithKline targeting PVRIG (GSK4381562, formerly SRF813; Phase 1). Surface’s novel, investigational cancer immunotherapies are designed to achieve a clinically meaningful and sustained anti-tumor response and may be used alone or in combination with other therapies. For more information, please visit www.surfaceoncology.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements set forth in this press release constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements can be identified by terms such as “believes,” “expects,” “plans,” “potential,” “will,” “would” or similar expressions, and the negative of those terms. These forward-looking statements are based on Surface Oncology’s management’s current beliefs and assumptions about future events and on information currently available to management.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Surface Oncology’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, risks and uncertainties related to Surface Oncology’s ability to successfully develop SRF388, SRF114 and its other product candidates through current and future milestones or regulatory filings on the anticipated timeline, if at all; the therapeutic potential of Surface Oncology’s product candidates; the risk that results from preclinical studies or early clinical trials may not be representative of results from later or larger clinical trials; the risk that results from preliminary, interim or top-line data may not be representative of future or final data from the same studies; the risk that Surface Oncology’s product candidates, including SRF388 and SRF114, will not be successfully developed or commercialized; the risks related to Surface Oncology’s dependence on third-parties in connection with its manufacturing, clinical trials and preclinical studies; the risk that Surface Oncology may not successfully find a third-party partner or collaborator for SRF617; changes in our operating plan and funding requirements; and the potential impact of COVID-19 on Surface Oncology’s clinical and preclinical development timelines and results of operations. Additional risks and uncertainties that could affect Surface Oncology’s future results are included in the section titled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021, available on the Securities and Exchange Commission’s website at www.sec.gov and Surface Oncology’s website at www.surfaceoncology.com. Additional information on potential risks will be made available in other filings that Surface Oncology makes from time to time with the Securities and Exchange Commission. In addition, any forward-looking statements contained in this press release are based on assumptions that Surface Oncology believes to be reasonable as of this date. Except as required by law, Surface Oncology assumes no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.
Contact
Scott Young
(617) 865-3250
syoung@surfaceoncology.com
Selected Financial Information
(In thousands, except share and per share amounts)
(Unaudited)
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
| Statement of Operations Items | 2022 | 2021 | 2022 | 2021 | |||||||||||
| License-related revenue | $ | — | $ | 392 | $ | 30,000 | $ | 2,532 | |||||||
| Operating expenses: | |||||||||||||||
| Research and development | 16,894 | 14,037 | 51,715 | 37,250 | |||||||||||
| General and administrative | 6,004 | 5,847 | 18,970 | 17,923 | |||||||||||
| Total operating expenses | 22,898 | 19,884 | 70,685 | 55,173 | |||||||||||
| Loss from operations | (22,898 | ) | (19,492 | ) | (40,685 | ) | (52,641 | ) | |||||||
| Interest and other income (expense), net | (342 | ) | (401 | ) | (1,569 | ) | (1,794 | ) | |||||||
| Net loss | (23,240 | ) | (19,893 | ) | (42,254 | ) | (54,435 | ) | |||||||
| Net loss per share — basic and diluted | $ | (0.39 | ) | $ | (0.44 | ) | $ | (0.78 | ) | $ | (1.25 | ) | |||
| Weighted average common shares outstanding — basic and diluted | 59,054,486 | 45,236,775 | 54,143,394 | 43,510,078 | |||||||||||
| Selected Balance Sheet Items: | September 30, 2022 | December 31, 2021 | |||||
| Cash, cash equivalents and marketable securities | $ | 146,350 | $ | 154,149 | |||
| Total assets | 181,621 | 190,847 | |||||
| Accounts payable and accrued expenses | 12,235 | 14,639 | |||||
| Total stockholders’ equity | 112,819 | 118,900 | |||||