Codiak BioSciences Reports Second Quarter 2022 Financial Results and Operational Progress

  • Reported platform-validating initial data from Phase 1 studies of exoSTING™ and exoIL-12™; plans to initiate Phase 2 studies for both programs in 1H 2023
  • Initiated patient dosing in Phase 1 clinical trial of exoASO™-STAT6 in patients with advanced hepatocellular carcinoma, liver metastases from primary gastric cancer and colorectal cancer
  • Partnered with CEPI to advance pan Betacoronavirus candidate
  • Presented positive preclinical data on the Company’s engEx-AAV™ discovery program

CAMBRIDGE, Mass., Aug. 04, 2022 (GLOBE NEWSWIRE) -- Codiak BioSciences, Inc. (NASDAQ: CDAK), a clinical-stage biopharmaceutical company pioneering the development of exosome-based therapeutics as a new class of medicines, today reported second quarter 2022 financial results and recent operational progress.

“During the second quarter we made strong progress supporting our approach and making advancements across our pipeline. We reported Phase 1 data sets from both our exoSTING™ and exoIL-12™ programs, further validating our engEx® platform, and demonstrating we were able to deliver repeat doses of exoSTING™ and exoIL-12™ to the tumor with a high level of specificity. Importantly, we did so with no observed systemic exposure or associated toxicity, and an enhanced therapeutic index – while demonstrating tumor shrinkage in both injected and uninjected lesions,” said Douglas E. Williams, Ph.D., President and CEO of Codiak. “We also initiated a Phase 1 study of exoASO™-STAT6, our third program to enter the clinic, in patients with certain liver, gastric and colorectal cancers. These updates, in combination with preclinical data showing the promise of our engEx-AAV™ program and a partnership with CEPI to advance our pan Betacoronavirus program, show that Codiak is broadly advancing its portfolio programs in 2022, momentum we aim to carry through this year and into 2023.”

Second Quarter 2022 and Recent Highlights

  • Announced platform-validating data from Phase 1 trials of exoSTING™ and exoIL-12™; both candidates demonstrated potential for best-in-class profile; Codiak has identified a recommended Phase 2 dose for each program and intends to finalize study plans with the FDA during the second half of this year to prepare for initiation of Phase 2 trials for both candidates early next year.
    • In a Phase 1 trial, exoIL-12™ demonstrated a differentiating safety and tolerability profile, with no detectable systemic exposure of IL-12 and no treatment-related adverse events, which has not previously been reported by others with recombinant IL-12. The two patients with cutaneous T cell lymphoma (CTCL) who have been treated each received multiple (>20) injections of exoIL-12 and experienced tumor regressions in both injected and non-injected lesions, including a partial response in one patient.
    • In the Phase 1/2 clinical trial evaluating exoSTING™ as a single agent in patients with late-stage refractory solid tumors, data across all five dose cohorts showed repeat doses of exoSTING™ were well-tolerated, demonstrated tumor retention with no systemic exposure of the STING agonist, and in a subset of patients, tumor shrinkage was observed in injected and uninjected lesions.
  • Initiated patient dosing in the Phase 1 clinical trial of exoASO™-STAT6 in patients with advanced hepatocellular carcinoma, liver metastases from primary gastric cancer and colorectal cancer; exoASO™-STAT6 is Codiak’s third clinical program and the first to evaluate a systemically administered exosome-based drug candidate.
  • Partnered with CEPI to continue the advancement of vaccine candidates from the Company’s pan Betacoronavirus program; as part of the partnership, CEPI will provide seed funding of up to $2.5 million, which Codiak anticipates will fund the completion of preclinical development and identification of a clinical candidate.
  • Presented preclinical data on the Company’s engEx-AAV™ discovery program, a novel strategy that aims to leverage exosomes to improve adeno-associated virus (AAV) vector gene therapy, at the 25th Annual Meeting of the American Society of Gene and Cell Therapy (ASGCT); data demonstrated that exosome engineering generates significant increases in AAV yield compared to unmodified exosomes, while retaining the functionality to transduce cells with AAV and resist neutralizing antibodies that impair gene therapy efficacy.

Anticipated Milestones and Events

  • Initiate Phase 2 study of exoIL-12™ in an expanded group of tumor types in 1H 2023; continue to monitor patients enrolled in Phase 1 study.
  • Initiate Phase 2 study of exoSTING™ in bladder cancer in 1H 2023; continue to monitor patients enrolled in ongoing Phase 1/2 study, reporting additional data at an upcoming scientific conference.
  • Continue enrollment for ongoing Phase 1 trial for exoASO™-STAT6, with initial data expected in 1H 2023.
  • Advance exoVACC™ pan Betacoronavirus program toward identification of a clinical candidate through new partnership with CEPI.

Second Quarter 2022 Financial Results
Total revenues for the quarter ended June 30, 2022, were $13.1 million, compared to $0.9 million for the same period in 2021. These results reflect deferred revenue recognized under the Company’s collaboration with Jazz Pharmaceuticals.

Net loss for the quarter ended June 30, 2022, was $6.8 million, compared to a net loss of $21.8 million for the same period in 2021. The decrease in net loss for the quarter was driven primarily by an increase in revenues in connection with the Company’s agreement with Jazz Pharmaceuticals.

Research and development expenses were $12.8 million for the quarter ended June 30, 2022, compared to $15.4 million for the same period in 2021. The decrease in research and development expenses was driven primarily by decreases in lab expenses and personnel-related costs in connection with the Company’s agreement with Lonza.

General and administrative expenses were $7.4 million for the quarter ended June 30, 2022, compared to $6.9 million for the same period in 2021. The increase was due primarily to professional services driven by legal fees for intellectual property rights.

As of June 30, 2022, Codiak had cash, cash equivalents, and marketable securities of approximately $41.8 million.

About Codiak BioSciences
Codiak is a clinical-stage biopharmaceutical company pioneering the development of exosome-based therapeutics, a new class of medicines with the potential to transform the treatment of a wide spectrum of diseases with high unmet medical need. By leveraging the biology of exosomes as natural intercellular transfer mechanisms, Codiak has developed its proprietary engEx Platform to expand upon the innate properties of exosomes to design, engineer and manufacture novel exosome therapeutic candidates. Codiak has utilized its engEx Platform to generate a deep pipeline of engineered exosomes aimed at treating a broad range of disease areas, spanning oncology, infectious disease and rare disease.

Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, among other things, statements concerning the development and therapeutic potential of exoSTING™ and exoIL-12™, including timing of initiation of clinical trials, the release of data from clinical trials and the results of those trials, statements concerning the clinical development of exoASO™-STAT6, and statements regarding the capabilities and potential of Codiak’s engEx Platform and engineered exosomes generally. Any forward-looking statements in this press release are based on management’s current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. In particular, the statements regarding the initiation and timing of clinical trials are dependent upon availability of sufficient cash resources, as to which the Company can make no assurance. For a discussion of these risks and uncertainties, and other important factors, any of which could cause our actual results to differ from those contained in the forward-looking statements, see the section entitled “Risk Factors” in Codiak’s Annual Report on Form 10-K for the year ended December 31, 2021, and in subsequent filings with the Securities and Exchange Commission (SEC), as well as discussions of potential risks, uncertainties and other important factors in Codiak’s subsequent filings with the SEC. All information in this press release is current as of the date of this report, and Codiak undertakes no duty to update this information unless required by law.

- financial tables follow -

(In thousands, except share and per share data)

    JUNE 30,
    DECEMBER 31,
Current assets:                
Cash and cash equivalents   $ 41,785     $ 76,938  
Prepaid manufacturing expenses     9,063       7,315  
Prepaid expenses and other current assets     5,161       5,918  
Total current assets     56,009       90,171  
Property and equipment, net     21,557       23,479  
Restricted cash     4,170       4,170  
Operating right-of-use assets     21,304       21,957  
Prepaid manufacturing expenses, net of current portion     29,670       31,893  
Total assets   $ 132,710     $ 171,670  
Liabilities and Stockholders’ Equity                
Current liabilities:                
Accounts payable   $ 1,131     $ 1,838  
Accrued expenses     7,699       9,703  
Deferred revenue     292       12,963  
Operating lease liabilities     2,891       2,661  
Total current liabilities     12,013       27,165  
Long-term liabilities:                
Deferred revenue, net of current portion     17,341       30,686  
Note payable, net of discount     25,596       25,430  
Operating lease liabilities, net of current portion     33,362       34,884  
Other long-term liabilities     -     -  
Total liabilities     88,312       118,165  
Commitments and contingencies                
Stockholders’ equity:                
Common stock, $0.0001 par value; 150,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 22,545,531 and 22,383,830 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively     2       2  
Additional paid-in capital     384,446       378,750  
Accumulated deficit     (340,050 )     (325,247 )
Total stockholders’ equity     44,398       53,505  
Total liabilities and stockholders’ equity   $ 132,710     $ 171,670  

(In thousands, except share and per share data)

JUNE 30,
JUNE 30,
    2022     2021     2022     2021  
Collaboration revenue   $ 13,145     $ 890     $ 25,849     $ 14,081  
Total revenue     13,145       890       25,849       14,081  
Operating expenses:                        
Research and development     12,798       15,419       27,045       31,969  
General and administrative     7,364       6,937       14,071       13,525  
Total operating expenses     20,162       22,356       41,116       45,494  
Loss from operations     (7,017 )     (21,466 )     (15,267 )     (31,413 )
Other income (expense):                        
Interest expense     (649 )     (704 )     (1,250 )     (1,401 )
Interest income     34       9       38       14  
Other income     848       352       1,667       683  
Realized gain     9       -       9       -  
Total other income (expense), net     242       (343 )     464       (704 )
Net loss   $ (6,775 )   $ (21,809 )   $ (14,803 )   $ (32,117 )
Net loss per share attributable to common stockholders, basic and diluted   $ (0.30 )   $ (0.99 )   $ (0.66 )   $ (1.51 )
Weighted average common shares outstanding, basic and diluted     22,493,879       22,117,593       22,444,799       21,230,424  

Investor Contact:
Christopher Taylor
VP, Investor Relations and Corporate Communications
T: 617-949-4220

Media Contact:
Cory Tromblee
Scient PR

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