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REGENXBIO Reports Third Quarter 2019 Financial and Operating Results and Recent Operational Highlights

ROCKVILLE, Md., Nov. 5, 2019 /PRNewswire/ --

  • Initiation of RGX-314 Phase IIb trial for wet AMD and IND filing for Phase II trial in diabetic retinopathy now expected in Q1 2020 as a result of partial clinical hold following FDA notification related to certain commercial, third-party surgical devices; matter is not related to RGX-314 gene therapy candidate
  • Positive interim update from RGX-314 Phase I/IIa trial for wet AMD presented in October at AAO
  • Completed dosing of Cohort 2 in the RGX-501 Phase I/II trial for HoFH and Cohort 1 in the RGX-121 Phase I/II trial for MPS II; interim updates expected at year end
  • Revenue includes $9.2 million in royalties from the Q3 2019 sales of Novartis' Zolgensma®
  • $417 million in cash, cash equivalents and marketable securities as of September 30, 2019; expect to end 2019 with cash, cash equivalents and marketable securities of at least $365 million
  • Webcast and conference call scheduled for today at 4:30 p.m. ET

REGENXBIO Inc. (RGNX), a leading clinical-stage biotechnology company seeking to improve lives through the curative potential of gene therapy based on its proprietary NAV® Technology Platform, today announced financial results for the quarter ended September 30, 2019, and recent operational highlights.

"We continue to make significant advances in our pipeline and NAV Technology Platform, expanding the pipeline with programs to deliver therapeutic antibodies, beginning an exciting collaboration with Neurimmune, and initiating construction of a new manufacturing facility," said Kenneth T. Mills, President and Chief Executive Officer of REGENXBIO. "Our focus on patients drives us to build upon the clinical progress of gene therapy options for both large indications and rare diseases, and we are excited to lead the field in innovative approaches. We are also very encouraged by the early adoption of the first approved NAV Technology-based therapy, Novartis' Zolgensma®, for the treatment of SMA."

"We anticipate a short delay in the initiation of our Phase IIb trial for RGX-314 in wet AMD and our investigative new drug, or IND, application filing for diabetic retinopathy, following notification from the FDA regarding certain third-party commercially-available surgical devices that were used to deliver RGX-314 in our Phase I/IIa trial," added Mr. Mills. "The notification is not related to the RGX-314 gene therapy itself, and we have not received reports of any device-related concerns or complications in the subjects already dosed in the Phase I/IIa trial. Assessments and monitoring of all enrolled subjects in the trial continue to be performed as usual. We are working with the FDA to address this matter, and as a result, we now plan to initiate our Phase IIb trial for RGX-314 in wet AMD and file our IND for diabetic retinopathy in Q1 2020,"  

"We are encouraged by the data from the Phase I/IIa clinical trial of RGX-314 in patients with wet AMD," said Dr. Stephen Pakola, Senior Vice President and Chief Medical Officer of REGENXBIO. "These data demonstrate significant long-term reduction of anti-VEGF treatment burden while maintaining or improving vision and retinal thickness after a single administration of our gene therapy. We look forward to initiating our Phase IIb trial of RGX-314 in wet AMD, and preparing to file an IND to evaluate RGX-314 in diabetic retinopathy, while continuing our collaboration with Clearside to evaluate the in-office suprachoroidal administration of RGX-314. We have also achieved important clinical development milestones in our other gene therapy programs, including completing dosing of Cohort 2 in our RGX-501 trial for HoFH and Cohort 1 in our RGX-121 trial for MPS II. Our internal pipeline of novel gene therapies positions us to develop meaningful potential treatments for a broad spectrum of patients with significant unmet needs."

Product Candidate Updates

Gene Therapy using NAV Vectors for AAV-Mediated Antibody Delivery:

  • RGX-314 for the Treatment of Wet Age-related Macular Degeneration (wet AMD) and Diabetic Retinopathy (DR)
  • Hereditary Angioedema (HAE)
  • Neurodegenerative Diseases

Gene Therapy using NAV Vectors for Rare Genetic Diseases:

  • RGX-501 for the Treatment of Homozygous Familial Hypercholesterolemia (HoFH)
  • RGX-121 for the Treatment of Mucopolysaccharidosis Type II (MPS II)
  • RGX-111 for the Treatment of Mucopolysaccharidosis Type I (MPS I)
  • RGX-181 for the Treatment of Late-infantile Neuronal Ceroid Lipofuscinosis Type 2 (CLN2) "Batten" Disease

Other Recent Operational Highlights

  • In October 2019, REGENXBIO exercised the full option with Clearside Biomedical, Inc. for exclusive worldwide rights to Clearside's proprietary, in-office SCS Microinjector™ for the delivery of AAV vectors to the suprachoroidal space to treat a number of indications. REGENXBIO continues to evaluate RGX-314 using Clearside's SCS Microinjector for in-office, non-surgical delivery into the suprachoroidal space to treat wet AMD, DR and other conditions for which anti-VEGF treatment is currently the standard of care, while continuing to advance its RGX-314 subretinal delivery program currently in development.
  • Construction of REGENXBIO's current good manufacturing practice (cGMP) production facility continues as planned. The new cGMP production facility is designed to allow for production of NAV Technology-based vectors at scales up to 2,000 liters using REGENXBIO's platform suspension cell culture process. The facility is expected to be operational in 2021.

NAV Technology Licensee Program Highlights

As of October 31, 2019, REGENXBIO's NAV Technology Platform was being applied in one marketed product, Novartis AG's Zolgensma, and more than 20 partnered product candidates in development by NAV Technology Licensees. Fifteen of these partnered product candidates are in active clinical development. REGENXBIO's NAV Technology Licensees are advancing product candidates in a broad range of therapeutic areas and disease indications. Recent updates from NAV Technology Licensees include:

Marketed Products

On October 22, 2019, Novartis AG reported Q3 2019 U.S. Zolgensma sales revenue of $160 million, and REGENXBIO recognized royalty revenue of $9.2 million in Q3 2019 as a result of these sales.

Partnered Product Candidates

  • In August 2019, Audentes Therapeutics, Inc. stated that enrollment in the pivotal expansion cohort data of ASPIRO, the clinical trial evaluating AT132 in subjects with X-Linked Myotubular Myopathy (XLMTM), is expected to be complete in the fall of 2019. The Biologics License Application (BLA) submission for AT132 is planned for mid-2020, and the Marketing Authorization Application (MAA) submission is planned for the second half of 2020. In October 2019, Audentes Therapeutics, Inc. announced new data from ASPIRO at the 24th International Annual Congress of the World Muscle Society. AT132 uses the NAV AAV8 vector.
  • In September 2019, Ultragenyx Pharmaceutical, Inc. presented positive data from the second dose cohort of the ongoing Phase 1/2 study of DTX401 for the treatment of glycogen storage disease type Ia (GSDIa) at the Society for the Study of Inborn Errors of Metabolism (SSIEM) 2019 Annual Symposium. DTX401 uses the NAV AAV8 vector.
  • In July 2019, REGENXBIO granted a non-exclusive worldwide license to the NAV AAV9 vector for the development and commercialization of gene therapies for the treatment of Friedreich's ataxia to Pfizer, Inc.

Financial Results

Cash, cash equivalents and marketable securities were $417.1 million as of September 30, 2019, compared to $470.6 million as of December 31, 2018. The decrease in cash, cash equivalents and marketable securities during the nine months ended September 30, 2019, was primarily attributable to $82.2 million of net cash used in operating activities during the period, partially offset by an unrealized gain of $29.4 million related to our marketable equity securities of Prevail Therapeutics Inc.

Revenues were $14.7 million for the three months ended September 30, 2019, compared to $5.3 million for the three months ended September 30, 2018. The increase was primarily attributable $9.2 million of royalty revenue recognized during the third quarter of 2019 related to net sales of Zolgensma. Commercial sales of Zolgensma commenced in the second quarter of 2019, and we are also eligible to receive a milestone payment of $80.0 million from AveXis, Inc. upon the achievement of $1 billion in cumulative net sales of Zolgensma.

Research and development expenses were $35.7 million for the three months ended September 30, 2019, compared to $18.5 million for the three months ended September 30, 2018. The increase was primarily attributable to personnel costs as a result of increased headcount, laboratory and facilities costs and external expenses associated with conducting clinical trials and manufacturing-related services.

General and administrative expenses were $12.4 million for the three months ended September 30, 2019, compared to $9.0 million for the three months ended September 30, 2018. The increase was primarily attributable to personnel costs as a result of increased headcount.

Net loss was $34.6 million, or $0.94 basic and diluted net loss per share, for the three months ended September 30, 2019, compared to net loss of $19.2 million, or $0.56 basic and diluted net loss per share, for the three months ended September 30, 2018.

Financial Guidance

Based on its current operating plan, REGENXBIO now expects its balance in cash, cash equivalents and marketable securities to be at least $365 million as of December 31, 2019.

Conference Call

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 1159968. 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 in multiple therapeutic areas.

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," "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, research and development activities, preclinical studies, clinical trials, costs and cash flow. 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, 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, 2018, 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. 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.

REGENXBIO INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands, except per share data)




September 30, 2019



December 31, 2018


Assets









Current assets









Cash and cash equivalents


$

79,594



$

75,561


Marketable securities



252,125




244,200


Accounts receivable



19,175




8,587


Prepaid expenses



6,920




5,734


Other current assets



2,414




3,831


Total current assets



360,228




337,913


Marketable securities



85,408




150,819


Accounts receivable



24,345




23,012


Property and equipment, net



28,287




28,702


Operating lease right-of-use assets



5,905





Restricted cash



1,053




1,053


Other assets



4,011




2,315


Total assets


$

509,237



$

543,814


Liabilities and Stockholders' Equity









Current liabilities









Accounts payable


$

9,608



$

4,412


Accrued expenses and other current liabilities



19,231




17,164


Deferred revenue






600


Operating lease liabilities



2,506





Total current liabilities



31,345




22,176


Deferred revenue



3,333




3,333


Operating lease liabilities



4,320





Deferred rent






1,098


Financing lease obligations






5,854


Other liabilities



1,844




2,505


Total liabilities



40,842




34,966


Stockholders' equity









Preferred stock; $0.0001 par value; 10,000 shares 
    authorized, and no shares issued and outstanding at 
    September 30, 2019 and December 31, 2018







Common stock; $0.0001 par value; 100,000 shares 
    authorized at September 30, 2019 and 
    December 31, 2018; 36,840 and 36,120 shares 
    issued and outstanding at September 30, 2019 
    and December 31, 2018, respectively



4




4


Additional paid-in capital



619,386




592,580


Accumulated other comprehensive income (loss)



363




(720)


Accumulated deficit



(151,358)




(83,016)


Total stockholders' equity



468,395




508,848


Total liabilities and stockholders' equity


$

509,237



$

543,814


 

 

REGENXBIO INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(unaudited)
(in thousands, except per share data)




Three Months Ended
September 30,



Nine Months Ended
September 30,




2019



2018



2019



2018


Revenues

















License and royalty revenue


$

14,700



$

5,306



$

23,465



$

177,728


Total revenues



14,700




5,306




23,465




177,728


Operating Expenses

















Cost of revenues



2,494




517




4,450




6,797


Research and development



35,692




18,508




90,378




59,544


General and administrative



12,402




9,008




37,365




25,706


Other operating expenses (income)



8




(2)




(54)




31


Total operating expenses



50,596




28,031




132,139




92,078


Income (loss) from operations



(35,896)




(22,725)




(108,674)




85,650


Other Income

















Interest income from licensing



716




109




2,091




8,362


Investment income



431




2,122




37,950




4,177


Total other income



1,147




2,231




40,041




12,539


Income (loss) before income taxes



(34,749)




(20,494)




(68,633)




98,189


Income Tax Benefit (Expense)



165




1,292




364




(2,558)


Net income (loss)


$

(34,584)



$

(19,202)



$

(68,269)



$

95,631


Other Comprehensive Income (Loss)

















Unrealized gain (loss) on available-for-sale 
    securities, net of reclassifications and
     
income tax expense



(108)




(103)




1,043




(159)


Total other comprehensive income (loss)



(108)




(103)




1,043




(159)


Comprehensive income (loss)


$

(34,692)



$

(19,305)



$

(67,226)



$

95,472


Net income (loss) per share:

















Basic


$

(0.94)



$

(0.56)



$

(1.86)



$

2.94


Diluted


$

(0.94)



$

(0.56)



$

(1.86)



$

2.67


Weighted-average common shares outstanding:

















Basic



36,813




33,988




36,618




32,576


Diluted



36,813




33,988




36,618




35,875


 

Zolgensma® is a registered trademark of AveXis. All other trademarks referenced herein are registered trademarks of REGENXBIO.

 

Contacts:

Tricia Truehart
Investor Relations and Corporate Communications
347-926-7709
ttruehart@regenxbio.com

Investors:
Heather Savelle, 212-600-1902
heather@argotpartners.com

Media:
David Rosen, 212-600-1902
david.rosen@argotpartners.com

(PRNewsfoto/REGENXBIO Inc.)
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