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Alpine Immune Sciences Provides Corporate Update and Reports Second Quarter 2018 Financial Results

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Alpine Immune Sciences, Inc. (NASDAQ:ALPN), a company focused on
discovering and developing innovative, protein-based immunotherapies
targeting the immune synapse to treat cancer, autoimmune/inflammatory,
and other diseases, provided a corporate update and reported financial
results for the second quarter ended June 30, 2018.

"During the first six months of this year, we continued to execute with
important advancements that support taking our programs into clinical
trials," said Mitchell H. Gold, M.D., Executive Chairman and Chief
Executive Officer of Alpine. "Our lead program ALPN-101, a dual
ICOS/CD28 antagonist for the treatment of autoimmune/inflammatory
disease, is rapidly advancing toward our company's first human clinical
trials. Our lead oncology program, ALPN-202, is a novel molecule
designed to block the inhibitory immune checkpoints PD-L1 and CTLA-4,
and to provide PD-L1-dependent T cell activation via the CD28
costimulatory receptor. Together, we believe these two molecules place
Alpine on the cusp of the next generation of immunotherapy. I'm also
excited about the addition of Mark Litton as President and Chief
Operating Officer, which comes at an important time for Alpine. I am
confident we have the right people and strategy in place as we work to
deliver meaningful value to our investors over the long term."

Corporate Development Highlights

  • Appointed Mark Litton President and Chief Operating Officer: On
    August 6, 2018, Alpine announced the appointment of Mark Litton, Ph.D.
    as President and Chief Operating Officer. Dr. Litton, a veteran life
    sciences executive, was previously co-founder and Chief Business
    Officer at Alder Biopharmaceuticals, where he oversaw all business
    operations, including playing an integral role in Alder's initial
    public offering and subsequent financings, as well as high-profile
    collaborations and partnerships.
  • Completed sale of GSNOR Assets to Laurel Venture Capital: On
    July 20, 2018, Alpine announced the completion of the sale and
    transfer of global rights to the S-Nitrosoglutathione Reductase
    (GSNOR) assets to Laurel Venture Capital (Laurel). The assets include
    broad intellectual property around small molecule GSNOR inhibitors,
    including a product candidate for severe asthma and COPD demonstrating
    safety and efficacy in preclinical and clinical studies. As a result
    of the transaction, Alpine received an upfront payment and is eligible
    for potential milestones and royalty payments. Alpine acquired GSNOR
    assets as part of its merger with Nivalis Therapeutics, Inc. in 2017.
  • Advanced both lead programs towards the clinic: ALPN-101
    remains on track to advance to clinical trials and we anticipate
    completing in the fourth quarter of 2018 all tasks necessary to
    commence clinical trials. ALPN-202 pre-clinical development activities
    continue as planned with the goal of human clinical trials starting in
    2019.

Second Quarter 2018 Financial Results

  • Alpine ended the second quarter of 2018 with $69.9 million in cash,
    cash equivalents and short-term investments, compared to $81.2 million
    as of December 31, 2017. Net cash used in operations for the six
    months ended June 30, 2018 was $11.6 million, compared to $6.0 million
    for the six months ended June 30, 2017.
  • Revenue for the second quarter of 2018 was $0.4 million, compared to
    $0.7 million in the second quarter of 2017. The decrease was primarily
    attributable to the timing of revenue recognized under Alpine's
    collaboration agreement with Kite Pharma, a Gilead (NASDAQ:GILD)
    company.
  • Research and development expenses for the second quarter of 2018 were
    $5.7 million, compared to $2.3 million for the same period in 2017.
    The increase was primarily attributable to an increase in direct
    research, contract manufacturing and process development activities in
    addition to personnel-related expenses, overhead and facilities.
  • General and administrative expenses for the second quarter of 2018
    were $1.9 million, compared to $2.1 million for the same period of
    2017. The decrease was primarily attributable to a decrease in
    professional and legal service fees related to merger costs incurred
    during the 2017 period, partially offset by an increase in
    personnel-related expenses and costs incurred to support the growth
    and expansion of the business.
  • Loss on sale of intangible asset relates solely to the sale of the
    GSNOR assets to Laurel in June 2018.

Cash Guidance

The company expects to have sufficient cash to fund operations into
2020, including the clinical advancement of ALPN-101 for the treatment
of autoimmune/inflammatory diseases and ALPN-202 for the treatment of
cancer.

About Alpine Immune Sciences, Inc.

Alpine Immune Sciences, Inc. is focused on developing novel
protein-based immunotherapies using its proprietary Variant Ig Domain
(vIgD) technology. Our scientific platform is designed to interact with
multiple targets, including many present in the immune synapse. Alpine's
vIgDs are developed using a process known as directed evolution, which
produces proteins capable of either enhancing or diminishing an immune
response and thereby may potentially apply therapeutically to cancer,
autoimmune and inflammatory diseases. Alpine has also developed
Transmembrane Immunomodulatory Protein (TIP) technology, based on the
vIgD technology, to potentially enhance engineered cellular therapies.
For more information, visit www.alpineimmunesciences.com.

Forward-Looking Statements

This release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, Section 21E of the
Securities Exchange Act of 1934 and the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are not based on
historical fact and include statements regarding our platform
technology, potential therapies, potential milestone and royalty
payments, future development plans, clinical and regulatory objectives
and the timing thereof, expectations regarding the sufficiency of cash
to fund operations into 2020, expectations regarding the plans of our
collaborator or future collaborators, expectations regarding the
potential efficacy and commercial potential of our and our
collaborator's or future collaborators' product candidates, the results
of our research and development efforts and our ability to enhance our
product candidate pipeline.
Forward-looking statements generally
include statements that are predictive in nature and depend upon or
refer to future events or conditions, and include words such as "may,"
"will," "should," "would," "expect," "plan," "believe,"
"intend,"
"pursue," and other similar expressions among others. Statements that
are not historical facts are forward-looking statements. Forward-looking
statements are based on current beliefs and assumptions involving risks,
uncertainties, and other factors that may cause actual results, events,
or developments to be materially different from those expressed or
implied by such forward-looking statements. These risks and
uncertainties, many of which are beyond our control, include, but are
not limited to: our discovery-stage and pre-clinical programs may not
advance into the clinic or result in approved products on a timely or
cost-effective basis or at all; we may not achieve additional milestone
payments pursuant to our collaborations; the impact of competition;
adverse conditions in the general domestic and global economic markets;
as well as the other risks identified in our filings with the Securities
and Exchange Commission. Except as required by applicable law, we
undertake no obligation to revise or update any forward-looking
statement, or to make any other forward-looking statements, whether as a
result of new information, future events or otherwise, and readers are
cautioned not to place undue reliance on such forward-looking statements.

"Transmembrane Immunomodulatory Protein," "TIP," "Variant Ig Domain,"
"vIgD," and the Alpine logo are registered trademarks or trademarks of
Alpine Immune Sciences, Inc. in various jurisdictions. All other
trademarks belong to their respective owners.

   
Alpine Immune Sciences, Inc.
Selected Condensed Consolidated Balance Sheet Data
(In thousands)
June 30, 2018 December 31, 2017
(unaudited)
Cash and cash equivalents $ 3,569 $ 8,000
Short-term investments 66,376 73,240
Total current assets 71,795 82,548
Total assets 73,124 85,222
Total current liabilities 3,426 1,895
Total stockholders' equity 66,547 78,917
Total liabilities, convertible preferred stock, and stockholders'
equity
73,124 85,222
 
       
Condensed Consolidated Statement of Operations and

Comprehensive Income (Loss) Data

(In thousands, except share and per share amounts)

Three Months Ended June 30, Six Months Ended June 30,
2018 2017 2018 2017
(unaudited)
Collaboration revenue $ 390 $ 738 $ 705 $ 1,475
Operating expenses:
Research and development 5,718 2,308 9,510 4,166
General and administrative 1,883 2,067 3,991 2,940
Loss on sale of intangible asset 1,203     1,203    
Total operating expenses 8,804   4,375   14,704   7,106  
Loss from operations (8,414 ) (3,637 ) (13,999 ) (5,631 )
Other income (expense):
Interest expense (83 ) (1 ) (161 ) (1 )
Interest and other income 337   40   642   45  
Loss before taxes (8,160 ) (3,598 ) (13,518 ) (5,587 )
Income tax benefit 253     305    
Basic and diluted net loss attributable to common stockholders $ (7,907 ) $ (3,598 ) $ (13,213 ) $ (5,587 )
Comprehensive loss:
Unrealized loss on investments 50     4    
Comprehensive loss $ (7,857 ) $ (3,598 ) $ (13,209 ) $ (5,587 )
Weighted-average shares used to compute basic and diluted net loss
per share attributable to common stockholders
13,848,974   666,154   13,846,865   641,138  
Basic and diluted net loss per share attributable to common
stockholders
$ (0.57 ) $ (5.40 ) $ (0.95 ) $ (8.71 )
 

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