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Cogent Biosciences Reports Third Quarter 2020 Financial Results and Provides Corporate Updates

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Andrew Robbins appointed President, CEO and Director

Final results from PLX9486 + sunitinib Phase 1/2 study in GIST patients selected for oral presentation at Connective Tissue Oncology Society (CTOS) 2020 meeting

Ended quarter with $129.4 million in cash, including proceeds from $104.4M Series A preferred stock private placement

CAMBRIDGE, Mass., Nov. 9, 2020 /PRNewswire/ -- Cogent Biosciences, Inc. (Nasdaq: COGT), a biotechnology company focused on developing precision therapies for genetically defined diseases, today announced financial results for the third quarter ended September 30, 2020 and provided several corporate updates.

(PRNewsfoto/Cogent Biosciences, Inc.)
(PRNewsfoto/Cogent Biosciences, Inc.)

"Over the past quarter, Cogent Biosciences has made tremendous progress establishing a clear strategy and focus that positions us as an emerging leader in the field of precision medicines for patients with genetically driven diseases," said Andrew Robbins, President and CEO of Cogent Biosciences. "We are excited by the potential of our lead program, PLX9486, and look forward to presenting final clinical data from its Phase 1/2 study in GIST patients at CTOS 2020. We look forward to initiating new clinical trials of PLX9486 in patients with systemic mastocytosis and GIST in 2021, beginning in 1H 2021 with a trial of PLX9486 in advanced systemic mastocytosis (ASM) patients."

Recent Program and Corporate Highlights

  • Andrew Robbins appointed President, CEO and Director

  • PLX9486 + sunitinib GIST Phase 1/2 trial selected for CTOS 2020 oral presentation

  • Cogent Biosciences positioned as an emerging leader in the field of precision medicine for patients with genetically driven diseases

Reverse Stock Split Enabling Preferred Share Conversion

At a special shareholder meeting held on November 6, 2020, Cogent Biosciences' stockholders approved a reverse stock split. With this authority, Cogent Biosciences' board of directors approved the reverse stock split at a ratio of 1-for-4, effective November 6, 2020. This ensured that sufficient common shares were authorized and issuable to allow for full conversion of the Series A Preferred Stock. Cogent Biosciences' common stock will begin trading on a split-adjusted basis upon market open on November 9, 2020. Immediately following the Reverse Stock Split and assuming full conversion of the Series A preferred stock, Cogent Biosciences would have approximately 52.2 million shares of Common Stock outstanding.

The reverse stock split impacts all holders of Cogent Biosciences stock proportionally and will not impact any stockholder's percentage ownership of common stock.

Third Quarter 2020 Financial Results

  • Collaboration Revenue: Collaboration revenue recognized during the third quarter ended September 30, 2020 of $0.3 million compared to $1.0 million in the same period of 2019.

  • R&D Expenses: Research and development expenses of $5.0 million for the third quarter ended September 30, 2020 compared to $10.3 million for the same period of 2019. This decrease is primarily related to the reduction in clinical activity of legacy cell-therapy clinical trials.

  • G&A Expenses: General and administrative expenses for the third quarter ended September 30, 2020 were $5.6 million, compared to $2.7 million for the same period of 2019. The increase is primarily related to higher professional fees and stock compensation.

  • Acquired In-Process R&D Expense: Acquired in-process R&D expense of $46.9 million during the current quarter was a result of the accounting treatment related to the asset acquisition of Kiq LLC, including PLX9486, on July 6, 2020.

  • Other Income (expense): Other income (expense) for the third quarter ended September 30, 2020 was $7.2 million, compared to $0.1 million for the same period of 2019. The increase is primarily related to the gain on the sale of the BOXR platform to SOTIO.

  • Net Loss: Net loss attributable to common stockholders was $50.0 million, or $5.07 per share, for the third quarter ended September 30, 2020 compared with a net loss attributable to common stockholders of $11.9 million, or $1.56 per share, for the same period of 2019.

  • Cash and Cash Equivalents: As of September 30, 2020, Cogent Biosciences had cash and cash equivalents of $129.4 million.

About Cogent Biosciences, Inc.
Cogent Biosciences is a biotechnology company focused on developing precision therapies for genetically defined diseases. The most advanced clinical program, PLX9486, is a selective tyrosine kinase inhibitor that is designed to potently inhibit the KIT D816V mutation as well as other mutations in KIT exon 17. KIT D816V is responsible for driving systemic mastocytosis, a serious disease caused by unchecked proliferation of mast cells. Exon 17 mutations are also found in patients with advanced gastrointestinal stromal tumors (GIST), a type of cancer with strong dependence on oncogenic KIT signaling. Cogent Biosciences is headquartered in Cambridge, MA. Visit our website for more information at www.cogentbio.com. Follow Cogent Biosciences on social media: Twitter and LinkedIn.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding: projected cash runways; future product development plans; upcoming results from clinical trials including from its lead program, PLX9486; and any future payouts under the CVR. The use of words such as, but not limited to, "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "predict," "project," "should," "target," "will," or "would" and similar words expressions are intended to identify forward-looking statements. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, our clinical results and other future conditions. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. No representations or warranties (expressed or implied) are made about the accuracy of any such forward-looking statements. We may not actually achieve the forecasts disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Such forward-looking statements are subject to a number of material risks and uncertainties including but not limited to those set forth under the caption "Risk Factors" in Cogent's most recent Annual Report on Form 10-K filed with the SEC, as well as discussions of potential risks, uncertainties, and other important factors in our subsequent filings with the SEC. Any forward-looking statement speaks only as of the date on which it was made. Neither we, nor our affiliates, advisors or representatives, undertake any obligation to publicly update or revise any forward-looking statement, whether as result of new information, future events or otherwise, except as required by law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date hereof.

COGENT BIOSCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except share and per share amounts)
(unaudited)




Three Months Ended September 30,



Nine Months Ended September 30,




2020



2019



2020



2019


Collaboration revenue


$

312



$

1,020



$

7,871



$

7,211


Operating expenses:

















Research and development



5,003




10,335




19,630




33,355


General and administrative



5,598




2,721




12,074




8,274


Acquired in-process research and development



46,910







46,910





Total operating expenses



57,511




13,056




78,614




41,629


Loss from operations



(57,199)




(12,036)




(70,743)




(34,418)


Other income (expense):

















Interest income



23




31




73




206


Gain on disposal of long-lived assets



7,463




82




7,470




82


Other income



239







239





Change in fair value of CVR liability



(509)







(509)





Total other income (expense), net



7,216




113




7,273




288


Net loss


$

(49,983)



$

(11,923)



$

(63,470)



$

(34,130)


Net loss per common share, basic and diluted


$

(5.07)



$

(1.56)



$

(7.56)



$

(4.49)


Weighted average common shares outstanding, basic and diluted



9,850,530




7,665,281




8,392,741




7,604,688


Comprehensive loss:

















Net loss


$

(49,983)



$

(11,923)



$

(63,470)



$

(34,130)


COGENT BIOSCIENCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
(unaudited)





September 30, 2020



December 31, 2019


Cash, cash equivalents and marketable securities


$

129,420



$

37,424


Working capital


$

113,295



$

27,343


Total assets


$

139,870



$

49,423


Total liabilities


$

23,812



$

17,661


Total stockholders' equity (deficit)


$

(22,174)



$

31,762


Cision
Cision

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SOURCE Cogent Biosciences, Inc.