Vaccitech Reports Second Quarter 2023 Financial Results and Recent Corporate Developments

OXFORD, United Kingdom, Aug. 10, 2023 (GLOBE NEWSWIRE) -- Vaccitech plc (NASDAQ: VACC), a clinical-stage biopharmaceutical company engaged in the discovery and development of novel T cell immunotherapeutics designed to harness the power of the immune system to treat chronic infectious diseases, cancer and autoimmunity, today announced its financial results for the second quarter of 2023 and provided an overview of the Company’s progress.

“In the second quarter of 2023, Vaccitech achieved important clinical milestones for two of our lead programs in HPV and HBV, which included the final analysis for the Phase 1b/2a trial of VTP-300 presented at EASL,” said Bill Enright, Vaccitech’s Chief Executive Officer. “Looking ahead, we remain steadfast in our focus on HBV and are eagerly anticipating interim data from our ongoing Phase 2 trials which we expect to announce by the end of the year. We have been able to extend our cash runway into the second quarter of 2025, demonstrating Vaccitech’s ethos of agility and efficiency across our broad portfolio of programs.”

Second Quarter 2023 and Recent Corporate Developments

Clinical developments

  • In April 2023, at the 35th Annual International Papillomavirus Conference, the Company presented topline data from the HPV001 (NCT04607850) Phase 1b/2 clinical trial evaluating VTP-200 in women infected with human papillomavirus (HPV). Data included results for 42 women at Day 35, 7 days after the last dose of VTP-200. VTP-200 was generally well-tolerated and was administered with no product-related grade 3 unsolicited adverse events and no product-related severe adverse events. While the placebo group showed no antigen-specific T cell responses as measured by IFNg ELISpot, 26 of 29 women receiving varying doses of VTP-200 showed a response. The final dataset, including data on clearance of infection and cervical lesions at 12 months post-treatment, is expected in the second quarter of 2024.
  • In June 2023, at the 2023 European Association for the Study of the Liver (EASL) International Liver Congress™, the Company presented final Phase 2 HBV002 (NCT04778904) data showing that VTP-300, both as monotherapy and in combination with a single low dose of nivolumab (anti-PD-1 agent) at the time of the second dose, induced meaningful, durable reductions of hepatitis B surface antigen (HBsAg) and that reductions were most prominent in patients with lower baseline HBsAg. VTP-300 led to a decline in HBsAg in the majority of people infected with genotypes B and C viruses. In addition, VTP-300-induced T cells showed cross-reactivity to the core antigen from genotypes A to E in ELISpot assays using peripheral blood mononuclear cells from VTP-300-treated healthy subjects and genotype-specific peptides A-E.
  • Also in June 2023, the Company announced dosing of the first patient in the PCA001 clinical trial evaluating its next generation product candidate, VTP-850, in prostate cancer (NCT05617040). PCA001 is a multi-center, Phase 1/2 trial designed to determine the recommended Phase 2 regimen and evaluate the safety, efficacy, as measured by prostate-specific antigen response (PSA), and T cell response of VTP-850 monotherapy in men with prostate cancer with rising PSA after definitive local therapy for their disease (i.e. biochemical recurrence).

Key operational updates

  • In June 2023, the Company completed relocation of its U.S. team to a new, state-of-the-art laboratory and office facility in Germantown, Maryland.
  • In July 2023, the Company announced the retirement of Dr. Margaret Marshall, Chief Medical Officer, effective immediately. In connection with her retirement, Dr. Marshall and the Company will enter into a consulting agreement.

Upcoming Milestones

  • In the second half of 2023, the Company expects to:
    • Announce interim efficacy data from HBV003 (NCT05343481), a Phase 2b clinical trial of VTP-300, that further evaluates its potential as a component of a functional cure for chronic Hepatitis B.
    • Announce interim efficacy data from the Phase 2a clinical trial (ACTRN12622000317796) collaboration with Arbutus of VTP-300 in combination with Arbutus’ siRNA therapeutic candidate, AB-729 for chronic hepatitis B.
    • Submit an Investigational New Drug (IND) application for VTP-1000, the Company’s lead SNAPvax technology candidate, for the treatment of celiac disease.

Q2 2023 Financial Highlights

  • Cash position: As of June 30, 2023, the Company had cash and cash equivalents of $173.0 million, compared to $191.3 million as of March 31, 2023. The net cash used in operating activities was $17.0 million, primarily resulting from our net loss of $23.8 million adjusted by share based compensation of $2.0 million, depreciation and amortization of $1.3 million, and changes in our operating assets and liabilities. $3.0 million was used for investing activities, primarily from capital expenditures related to leasehold improvements on our new facility in Germantown, Maryland, consisting of laboratories and office space. $0.1 million was provided by financing activities being the proceeds received from the issuance of ordinary shares represented by American Depositary Shares through the Company’s “at-the-market” sales agreement, net of issuance costs. Based on current research and development plans, we expect our cash runway to fund our operating expenses and capital expenditure requirements into the second quarter of 2025.
  • Revenue: Revenue consisted of $0.3 million in the second quarter of 2023 compared to $0.5 million in the first quarter of 2023. Revenue was comprised of the Company’s share of royalties received by Oxford University Innovation (OUI) as a result of commercial sales of Vaxzevria® by AstraZeneca.
  • Research and development expenses: Research and development expenses were $13.5 million in the second quarter of 2023 compared to $9.8 million in the first quarter of 2023, showing increased spend due to phasing of clinical and pre-clinical trials. VTP-300 HBV research and development expenses increased as a result of the Phase 2 HBV002 final data and the two ongoing phase 2b clinical trials. The research and development expenses related to SNAPvax candidates, VTP-1000/VTP-1100 Celiac/ HPV Cancer, increased due to IND-enabling studies. The quarter-on-quarter R&D expense per program is outlined in the following table.
  Three months
ended June 30, 2023
  Three months ended March 30, 2023   Change
  $ 000     $ 000     $ 000  
Direct research and development expenses by program:          
VTP-200 HPV   1,837       1,338       499  
VTP-300 HBV   3,757       2,118       1,639  
VTP-600 NSCLC1   79       275       (196 )
VTP-850 Prostate cancer   242       215       27  
VTP-1000/VTP-1100 Celiac/HPV Cancer   3,018       1,572       1,446  
Other and earlier stage programs   701       280       421  
Total direct research and development expenses   9,634       5,798       3,836  
Internal research and development expenses:          
Personnel-related (including share-based compensation)   3,388       3,601       (213 )
Facility-related   202       371       (169 )
Other internal costs   319       44       275  
Total internal research and development expenses   3,909       4,016       (107 )
Total research and development expense   13,543       9,814       3,729  

1 The VTP-600 NSCLC Phase 1/2a trial is sponsored by Cancer Research UK.

  • General and administrative expenses: General and administrative expenses were $13.1 million in the second quarter of 2023, compared to $12.1 million in the first quarter of 2023. The increase was mainly attributable to the unrealized foreign exchange loss of $4.2 million in the second quarter of 2023, compared to $3.5 million in the first quarter of 2023.
  • Net loss: For the second quarter of 2023, the Company generated a net loss attributable to its shareholders of $23.8 million, or $0.62 per share on both basic and fully diluted bases, compared to a net loss attributable to shareholders of $18.2 million, or $0.48 per share on both basic and fully diluted bases in the first quarter of 2023.

About Vaccitech
Vaccitech is a clinical-stage biopharmaceutical company engaged in the discovery and development of novel T cell immunotherapeutics designed to harness the power of the immune system to treat chronic infectious diseases, cancer and autoimmunity. The Company stands apart through a proprietary, multi-platform approach that has shown the ability to induce higher magnitudes of T cells compared with other technologies. Vaccitech is uniquely positioned to address the needs of large, underserved patient populations through a diverse clinical-stage pipeline of investigational therapies targeting life-threatening diseases that pose significant public health risk and have limited treatment options. The Company’s lead product candidates include VTP-300, an immunotherapy candidate designed as a component of a potential functional cure for chronic hepatitis B viral (HBV) infection; VTP-200, a non-invasive, early-stage investigational treatment for persistent, high-risk human papillomavirus (HPV); VTP-850, a novel T cell investigational therapy for prostate cancer; and VTP-1000, a preclinical T cell therapeutic candidate designed to restore immune tolerance in celiac disease. Vaccitech has proven drug development and scientific expertise in the field of immunization, co-inventing a COVID-19 vaccine with the University of Oxford, which is now approved and exclusively licensed worldwide to AstraZeneca. For more information, visit www.vaccitech.co.uk.

Forward looking statement
This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, which can generally be identified as such by use of the words “would,” “aim,” “forward,” “expect,” “plan,” “intend,” “believe,” “potential,” “continue,” and similar expressions, although not all forward-looking statements contain these identifying words. These forward looking statements include express or implied statements regarding the Company’s future expectations, plans and prospects, and include, without limitation, statements regarding the timing and advancement of the Company’s programs, including the clinical trials of VTP-200, VTP-300, and VTP-850, statements regarding the timing for the potential IND application for VTP-1000, statements regarding the presentation of interim data, including with respect to VTP-300, and statements regarding the Company’s capital, including its cash runway. Any forward-looking statements in this press release are based on management’s current expectations and beliefs and are subject to numerous risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation, risks and uncertainties related to: the success, cost and timing of the Company’s product development activities and planned and ongoing clinical trials, the Company’s ability to execute on its strategy, regulatory developments, approval of the Company’s product candidates, the Company’s ability to fund its operations, global economic uncertainty, including disruptions in the banking industry, and the impact that the COVID-19 pandemic may have on the Company’s clinical trials, preclinical studies and access to capital and other risks identified in the Company’s filings with the Securities and Exchange Commission (the SEC), including its Annual Report on Form 10-K for the year ended December 31, 2022, its Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company cautions you not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. The Company expressly disclaims any obligation to publicly update or revise any such statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.

VACCITECH PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT NUMBER OF SHARES AND PER SHARE AMOUNTS)
(UNAUDITED)
 
    June 30,   December 31,
    2023       2022  
ASSETS          
Current assets:          
Cash and cash equivalents $ 173,030   $ 194,385  
Accounts receivable         323  
Accounts receivable - related parties   349       5,524  
Research and development incentives receivable   3,137       4,541  
Prepaid expenses and other current assets   8,261       8,268  
Total current assets   184,777       213,041  
Goodwill   12,209       12,209  
Property and equipment, net   13,741       7,957  
Intangible assets, net   26,688       28,269  
Right of use assets, net   7,707       7,753  
Other assets   1,006       976  
Total assets $ 246,128     $ 270,205  
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
           
Current liabilities:          
Accounts payable $ 2,429   $ 3,748  
Accrued expenses and other current liabilities   8,547       8,061  
Operating lease liability - current   1,135       433  
Total current liabilities   12,111       12,242  
Non-Current liabilities:          
Operating lease liability   11,044       8,340  
Contingent consideration   2,117       1,711  
Deferred tax liability, net   2,094       3,746  
Other non-current liabilities   1,300       965  
Total liabilities $ 28,666     $ 27,004  
Commitments and contingencies (Note 14)          
Shareholders’ equity:          
Ordinary shares, £0.000025 nominal value; 38,524,059 shares authorized, issued and outstanding (December 31, 2022: authorized, issued and outstanding: 37,683,531)   1       1  
Deferred A shares, £1 nominal value; 63,443 shares authorized, issued and outstanding (December 31, 2022: authorized, issued and outstanding: 63,443)   86       86  
Deferred B shares, £0.01 nominal value; nil shares authorized, issued and outstanding (December 31, 2022:authorized, issued and outstanding: 570,987)         8  
Deferred C shares, £0.000007 nominal value, nil shares authorized, issued and outstanding          
(December 31, 2022: authorized, issued and outstanding: 27,828,231)         0  
Additional paid-in capital   385,636       379,504  
Accumulated deficit   (145,225 )     (103,243 )
Accumulated other comprehensive loss – foreign currency translation adjustments   (23,289 )     (33,460 )
Total shareholders’ equity attributable to Vaccitech plc shareholders’   217,209       242,896  
Noncontrolling interest   253       305  
Total shareholders’ equity $ 217,462     $ 243,201  
Total liabilities and shareholders’ equity $ 246,128     $ 270,205  
           

1indicates amount less than thousand

VACCITECH PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(IN THOUSANDS, EXCEPT NUMBER OF SHARES AND PER SHARE AMOUNTS)
(UNAUDITED)
                         
    Three months ended     Six months ended
    June 30, 2023   June 30, 2022   June 30, 2023   June 30, 2022
License revenue (1)   $ 334     $ 17,063     $ 802     $ 32,072  
Research grants and contracts                       9  
Total revenue     334       17,063       802       32,081  
Operating expenses                        
Research and development     13,543       9,720       23,357       20,421  
General and administrative     13,128       (5,892 )     25,266       (2,156 )
Total operating expenses     26,671       3,828       48,623       18,265  
(Loss)/income from operations     (26,337 )     13,235       (47,821 )     13,816  
Other income (expense):                        
Interest income     522       669       2,110       752  
Interest expense     (14 )     (7 )     (14 )     (8 )
Research and development incentives     559       826       1,716       1,874  
Other income     310       51       310       51  
Total other (expense) income     1,377       1,539       4,122       2,669  
(Loss)/profit before income tax     (24,960 )     14,774       (43,699 )     16,485  
Tax benefit     1,136       915       1,652       1,778  
Net (loss)/income     (23,824 )     15,689       (42,047 )     18,263  
Net loss attributable to noncontrolling interest     22       4       65       26  
Net (loss)/income attributable to Vaccitech plc shareholders     (23,802 )     15,693       (41,982 )     18,289  
                         
Weighted-average ordinary shares outstanding, basic     38,407,672       37,202,600       38,211,625       37,196,843  
Weighted-average ordinary shares outstanding, diluted     38,407,672       38,174,426       38,211,625       38,260,579  
Net (loss)/income per share attributable to ordinary shareholders, basic   $ (0.62 )   $ 0.42     $ (1.10 )   $ 0.49  
Net (loss)/income per share attributable to ordinary shareholders, diluted   $ (0.62 )   $ 0.41     $ (1.10 )   $ 0.48  
                         
Net (loss)/income   $ (23,824 )   $ 15,689     $ (42,047 )   $ 18,263  
Other comprehensive gain/(loss) – foreign currency translation adjustments     5,604       (16,807 )     10,184       (22,790 )
Comprehensive loss     (18,220 )     (1,118 )     (31,863 )     (4,527 )
Comprehensive loss attributable to noncontrolling interest     15       34       52       71  
Comprehensive loss attributable to Vaccitech plc shareholders   $ (18,205 )   $ (1,084 )   $ (31,811 )   $ (4,456 )

(1)Includes license revenue from related parties for the three and six month periods ended June 30, 2023 of $0.3 million and $0.8 million, respectively and for the three and six month periods ended June 30, 2022 of $17.1 million and $32.1 million, respectively.

IR contacts:  
Christopher M. Calabrese
Managing Director
LifeSci Advisors
+1 917-680-5608
ccalabrese@lifesciadvisors.com
Kevin Gardner
Managing Director
LifeSci Advisors
+1 617-283-2856
kgardner@lifesciadvisors.com
Media contact:
Audra Friis
Sam Brown, Inc.
+1 917-519-9577
audrafriis@sambrown.com
 
Company contact:
Jonothan Blackbourn
IR & PR Manager
Vaccitech
IR@vaccitech.co.uk
 


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