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Abeona Therapeutics Reports Third Quarter 2022 Financial Results

Abeona Therapeutics Inc.
Abeona Therapeutics Inc.

Following positive topline data from Phase 3 VIITAL™ study of EB-101 with both co-primary endpoints met, Abeona plans to submit BLA to U.S. FDA in 2Q 2023

Company well-funded with expected cash runway into 3Q 2024

NEW YORK and CLEVELAND, Nov. 14, 2022 (GLOBE NEWSWIRE) -- Abeona Therapeutics Inc. (Nasdaq: ABEO) today announced financial results for the third quarter of 2022.

“The positive topline data from the Phase 3 VIITAL study provides strong support for EB-101’s potential and validation of the Abeona team’s extensive efforts,” said Vish Seshadri, Chief Executive Officer of Abeona. “This is an exciting time for Abeona as we are sharply focused on submitting a Biologics License Application for EB-101 to the U.S. FDA. With the additional capital raised after quarter-end, we are now well-funded into the third quarter of 2024, beyond the anticipated timing for potential BLA approval.”

Third Quarter and Recent Operating Highlights

EB-101 for the treatment of recessive dystrophic epidermolysis bullosa (RDEB)

  • On November 3, 2022, Abeona announced positive topline data from the pivotal Phase 3 VIITAL study of investigational EB-101 in RDEB. The VIITAL study met its two co-primary efficacy endpoints demonstrating statistically significant, clinically meaningful improvements in wound healing and pain reduction in large chronic RDEB wounds. The Company intends to present more detailed results from this study at future medical meetings and in a peer-reviewed journal.

  • Based on the positive VIITAL topline results, the Company plans to submit a Biologics License Application (BLA) for EB-101 to the U.S. Food and Drug Administration (FDA) in the second quarter of 2023. If the BLA is approved, Abeona may be eligible for a Priority Review Voucher (PRV), which can be used to receive expedited review by the FDA of a subsequent marketing application for a different product or sold to another company.

  • Long-term follow up data up to eight years and quality of life data from a completed Phase 1/2a study of EB-101 in RDEB were published in Orphanet Journal of Rare Diseases. The data showed that large chronic RDEB wounds treated with EB-101 had sustained wound healing with mean 5.9 years of follow-up, and long-term symptomatic relief, including reduction in pain and itch.

Preclinical programs

  • Abeona’s preclinical programs are investigating the use of novel adeno-associated virus (AAV) capsids in AAV-based therapies for five undisclosed ophthalmic conditions. The Company has generated appropriate mouse models, produced research grade vectors, and started dosing mice in proof-of-concept studies to support possible pre-Investigational New Drug Application (IND) meetings with the FDA in early 2023.

Corporate highlights

  • On November 3, 2022, the Company announced a private placement financing with gross proceeds of $35.0 million. The private placement included participation from new and existing institutional investors.

Third Quarter Financial Results

Cash, cash equivalents, restricted cash and short-term investments totaled $23.5 million as of September 30, 2022. Net cash used in operating activities was $6.8 million for the third quarter of 2022, compared to $9.0 million in the second quarter of 2022. Abeona estimates that its current cash and cash equivalents, restricted cash and short-term investments plus the net proceeds from the private placement financing on November 3, 2022 are sufficient resources to fund operations into the third quarter of 2024.

Research and development (R&D) expenses for the three months ended September 30, 2022 were $5.5 million, compared to $9.1 million for the same period of 2021. General and administrative (G&A) expenses were $3.9 million for the three months ended September 30, 2022, compared to $5.8 million for the same period of 2021.

Net loss attributable to common shareholders for the third quarter of 2022 was $9.5 million, or $1.48 loss per common share as compared to $7.0 million, or $1.80 loss per common share, in the third quarter of 2021.

About Abeona Therapeutics
Abeona Therapeutics Inc. is a clinical-stage biopharmaceutical company developing cell and gene therapies for serious diseases. Abeona’s lead clinical program is EB-101, its investigational autologous, engineered cell therapy currently in development for recessive dystrophic epidermolysis bullosa. The Company’s development portfolio also features AAV-based gene therapies for ophthalmic diseases with high unmet medical need. Abeona’s novel, next-generation AAV capsids are being evaluated to improve tropism profiles for a variety of devastating diseases. Abeona’s fully integrated cell and gene therapy cGMP manufacturing facility produced EB-101 for the pivotal Phase 3 VIITAL™ study and is capable of clinical and potential commercial production of AAV-based gene therapies. For more information, visit www.abeonatherapeutics.com.

Forward-Looking Statements
This press release contains certain statements that are forward-looking 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, and that involve risks and uncertainties. We have attempted to identify forward-looking statements by such terminology as “may,” “will,” “believe,” “anticipate,” “expect,” “plans,” “intend,” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances), which constitute and are intended to identify forward-looking statements. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, numerous risks and uncertainties, including but not limited to, the timing and outcome of our Biologics License Application submission to the FDA for EB-101; our ability to fund operations with current cash and cash equivalents, restricted cash and short-term investments plus the net proceeds from our November 2022 private placement; continued interest in our rare disease portfolio; our ability to enroll patients in clinical trials; the outcome of any future meetings with the FDA or other regulatory agencies; the ability to achieve or obtain necessary regulatory approvals; the impact of changes in the financial markets and global economic conditions; risks associated with data analysis and reporting; and other risks disclosed in the Company’s most recent Annual Report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to revise the forward-looking statements or to update them to reflect events or circumstances occurring after the date of this press release, whether as a result of new information, future developments or otherwise, except as required by the federal securities laws.



ABEONA THERAPEUTICS INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
(In thousands, except share and per share amounts)

 

 

For the three months ended September 30,

 

For the nine months ended September 30,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

License and other revenues

 

$

-

 

 

$

-

 

 

$

1,346

 

 

$

-

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

Royalties

 

 

-

 

 

 

-

 

 

 

350

 

 

 

-

 

Research and development

 

 

5,490

 

 

 

9,056

 

 

 

22,693

 

 

 

25,923

 

General and administrative

 

 

3,890

 

 

 

5,816

 

 

 

11,574

 

 

 

17,261

 

Impairment of licensed technology

 

 

-

 

 

 

-

 

 

 

1,355

 

 

 

-

 

Impairment of right-of-use lease asset

 

 

-

 

 

 

-

 

 

 

1,561

 

 

 

-

 

Impairment of construction-in-progress

 

 

-

 

 

 

-

 

 

 

1,792

 

 

 

-

 

Total expenses

 

 

9,380

 

 

 

14,872

 

 

 

39,325

 

 

 

43,184

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(9,380

)

 

 

(14,872

)

 

 

(37,979

)

 

 

(43,184

)

 

 

 

 

 

 

 

 

 

Gain on settlement with licensor

 

 

-

 

 

 

6,743

 

 

 

-

 

 

 

6,743

 

PPP loan payable forgiveness income

 

 

-

 

 

 

1,758

 

 

 

-

 

 

 

1,758

 

Interest income

 

 

72

 

 

 

7

 

 

 

103

 

 

 

35

 

Interest expense

 

 

(157

)

 

 

(683

)

 

 

(558

)

 

 

(3,603

)

Other income (expense)

 

 

(19

)

 

 

3

 

 

 

(136

)

 

 

(2

)

Net loss

 

$

(9,484

)

 

$

(7,044

)

 

$

(38,570

)

 

$

(38,253

)

 

 

 

 

 

 

 

 

 

Deemed dividends related to Series A and Series B

 

 

 

 

 

 

 

 

Convertible Redeemable Preferred Stock

 

 

-

 

 

 

-

 

 

 

(3,782

)

 

 

-

 

Net loss attributable to Common Shareholders

 

$

(9,484

)

 

$

(7,044

)

 

$

(42,352

)

 

$

(38,253

)

 

 

 

 

 

 

 

 

 

Basic and diluted loss per common share

 

$

(1.48

)

 

$

(1.80

)

 

$

(7.05

)

 

$

(9.93

)

 

 

 

 

 

 

 

 

 

Weighted average number of common

 

 

 

 

 

 

 

 

shares outstanding – basic and diluted

 

 

6,421,245

 

 

 

3,924,024

 

 

 

6,009,902

 

 

 

3,853,318

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

Change in unrealized gains (losses) related to available-for-sale debt securities

 

 

(4

)

 

 

1

 

 

 

(11

)

 

 

10

 

Foreign currency translation adjustments

 

 

(6

)

 

 

(9

)

 

 

(6

)

 

 

(9

)

Comprehensive loss

 

$

(9,494

)

 

$

(7,052

)

 

$

(42,369

)

 

$

(38,252

)


ABEONA THERAPEUTICS INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts)

ASSETS

September 30,
2022

 

December 31,
2021

 

(Unaudited)

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

5,733

 

 

$

32,938

 

Short-term investments

 

12,434

 

 

 

12,086

 

Restricted cash

 

5,338

 

 

 

5,891

 

Accounts receivable

 

-

 

 

 

3,000

 

Other receivables

 

1,047

 

 

 

-

 

Prepaid expenses and other current assets

 

945

 

 

 

2,377

 

Total current assets

 

25,497

 

 

 

56,292

 

 

 

 

 

Property and equipment, net

 

6,606

 

 

 

12,339

 

Right-of-use lease assets

 

6,638

 

 

 

9,403

 

Licensed technology, net

 

-

 

 

 

1,384

 

Other assets

 

20

 

 

 

168

 

Total assets

$

38,761

 

 

$

79,586

 

       

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

1,748

 

 

$

4,325

 

Accrued expenses

 

4,121

 

 

 

5,585

 

Current portion of lease liability

 

1,810

 

 

 

1,818

 

Current portion of payable to licensor

 

4,921

 

 

 

4,599

 

Deferred revenue

 

-

 

 

 

296

 

Total current liabilities

 

12,600

 

 

 

16,623

 

 

 

 

 

Payable to licensor

 

4,064

 

 

 

3,828

 

Other long-term liabilities

 

200

 

 

 

200

 

Long-term lease liabilities

 

6,484

 

 

 

7,560

 

Total liabilities

 

23,348

 

 

 

28,211

 

Commitments and contingencies

 

 

 

Stockholders' equity:

 

 

 

Preferred stock - $0.01 par value; authorized 2,000,000 shares;

 

 

 

No shares issued and outstanding as of September 30, 2022 and

 

 

 

December 31, 2021, respectively

 

-

 

 

 

-

 

Common stock - $0.01 par value; authorized 200,000,000 shares;

 

 

 

7,671,351 and 5,888,217 shares issued and outstanding as of

 

 

 

September 30, 2022 and December 31, 2021, respectively*

 

77

 

 

 

1,472

 

Additional paid-in capital

 

709,590

 

 

 

705,570

 

Accumulated deficit

 

(694,210

)

 

 

(655,640

)

Accumulated other comprehensive loss

 

(44

)

 

 

(27

)

Total stockholders' equity

 

15,413

 

 

 

51,375

 

Total liabilities and stockholders' equity

$

38,761

 

 

$

79,586

 

* As of November 7, 2022, Abeona had 17,175,799 shares of common stock outstanding.


CONTACT: Investor and Media Contact: Greg Gin VP, Investor Relations and Corporate Communications Abeona Therapeutics ir@abeonatherapeutics.com