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Completed enrollment of EMERALD-1 phase 2a trial of MORF-057 in patients with ulcerative colitis ahead of schedule
EMERALD-2 phase 2b global randomized study of MORF-057 to begin fourth quarter
WALTHAM, Mass., Nov. 02, 2022 (GLOBE NEWSWIRE) -- 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 third quarter of 2022.
Third Quarter 2022 and Recent Corporate Highlights
“Excellent efforts by the Morphic Team have led to major advances in the MORF-057 phase 2 program, with the EMERALD-1 phase 2a study completing enrollment ahead of schedule and the EMERALD-2 phase 2b study now poised to commence,” commented Praveen Tipirneni, MD, Chief Executive Officer of Morphic Therapeutic. “We are excited for clinical progress during the remainder of 2022 and especially looking forward to 2023.”
Financial Results for the Third Quarter 2022
As of September 30, 2022, Morphic had cash, cash equivalents and marketable securities of $371.8 million, compared to $397.6 million as of June 30, 2022. Morphic believes its cash, cash equivalents and marketable securities as of September 30, 2022, will be sufficient to fund operating expenses and capital expenditure requirements into the second half of 2025.
About Morphic Therapeutic
Morphic Therapeutic is a biopharmaceutical company developing a portfolio of oral integrin therapies for the treatment of serious chronic diseases, including autoimmune, cardiovascular, and metabolic diseases, fibrosis, and cancer. Morphic is also advancing its pipeline and discovery activities in collaborations with Janssen and Schrödinger 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 Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to: the MInT Platform’s ability to discover drug candidates, Morphic’s plans to develop and commercialize oral small-molecule integrin therapeutics and any proposed timing thereof, the initiation, execution and completion of MORF-057 phase 2 clinical trials, any expectations about safety, efficacy, timing and ability to commence or complete clinical studies and/or trials and to obtain regulatory approvals for MORF-057 and other candidates in development, the timing of further data presentation and the ability of MORF-057 to treat inflammatory bowel disease, including ulcerative colitis, or related indications. 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 in this press release and other risks set forth in our filings with the Securities and Exchange Commission, including Morphic’s or a partner’s ability to complete a current or future clinical trial of any of our current or future product candidates, develop or obtain regulatory approval for or commercialize any product candidate, Morphic’s ability to protect intellectual property, the potential impact of the COVID-19 pandemic, and the sufficiency of our cash, cash equivalents and investments to fund our operations. 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
(unaudited)
(in thousands, except share and per share data)
| | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
| | 2022 | 2021 | 2022 | 2021 | |||||||||||
| Collaboration revenue | $ | 2,055 | $ | 3,124 | $ | 64,673 | $ | 10,238 | |||||||
| Operating expenses: | |||||||||||||||
| Research and development | 25,245 | 20,966 | 77,360 | 64,131 | |||||||||||
| General and administrative | 8,303 | 7,276 | 24,128 | 20,367 | |||||||||||
| Total operating expenses | 33,548 | 28,242 | 101,488 | 84,498 | |||||||||||
| Loss from operations | (31,493 | ) | (25,118 | ) | (36,815 | ) | (74,260 | ) | |||||||
| Other income: | |||||||||||||||
| Interest income, net | 1,657 | 77 | 2,326 | 140 | |||||||||||
| Other expense, net | (156 | ) | — | (144 | ) | (20 | ) | ||||||||
| Total other income, net | 1,501 | 77 | 2,182 | 120 | |||||||||||
| Loss before provision for income taxes | (29,992 | ) | (25,041 | ) | (34,633 | ) | (74,140 | ) | |||||||
| Provision for income taxes | (29 | ) | — | (31 | ) | — | |||||||||
| Net loss | $ | (30,021 | ) | $ | (25,041 | ) | $ | (34,664 | ) | $ | (74,140 | ) | |||
| Net loss per share, basic and diluted | $ | (0.78 | ) | $ | (0.69 | ) | $ | (0.91 | ) | $ | (2.09 | ) | |||
| Weighted average common shares outstanding, basic, and diluted | 38,490,910 | 36,547,222 | 37,961,262 | 35,392,153 | |||||||||||
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands)
| September 30, 2022 | December 31, 2021 | ||||||
| Assets | |||||||
| Cash, cash equivalents and marketable securities | $ | 371,760 | $ | 408,135 | |||
| Other current assets | 10,650 | 10,199 | |||||
| Total current assets | 382,410 | 418,334 | |||||
| Other assets | 6,771 | 7,956 | |||||
| Total assets | $ | 389,181 | $ | 426,290 | |||
| Liabilities and Stockholders' Equity | |||||||
| Current liabilities | $ | 18,586 | $ | 38,264 | |||
| Long-term liabilities | 5,534 | 51,327 | |||||
| Total liabilities | 24,120 | 89,591 | |||||
| Total stockholders' equity | 365,061 | 336,699 | |||||
| Total liabilities and stockholders' equity | $ | 389,181 | $ | 426,290 | |||
Contact
Chris Erdman
617.686.1718
chris.erdman@morphictx.com