Constellation Pharmaceuticals Announces Second-Quarter 2020 Financial Results, Provides Regulatory Update
- Constellation has aligned with the FDA on the design of MANIFEST-2, the pivotal Phase 3 clinical trial for CPI-0610 expected to begin in 2H20
- Constellation plans to explore additional indications for CPI-0610
The Company is preparing to initiate a global, randomized, double-blind, pivotal Phase 3 clinical trial for CPI-0610, to be called MANIFEST-2, in the second half of 2020. MANIFEST-2 is designed to enroll approximately 310 JAK-inhibitor-naïve patients with advanced primary myelofibrosis (MF), post-essential-thrombocythemia MF, or post-polycythemia-vera MF. Patients will be randomized 1:1 to CPI-0610 plus ruxolitinib or placebo plus ruxolitinib. The primary endpoint will be spleen volume reduction at 24 weeks, and the key secondary endpoint will be Total Symptom Score measured by Myelofibrosis Symptom Assessment Form version 4.0 at 24 weeks.
The Company plans to continue to explore other regulatory pathways for bringing CPI-0610 to MF patients.
“Having seen signals of clinical benefit for CPI-0610 in patients with MF as well as preliminary evidence of disease modification, we are pleased that we have aligned with the FDA on the design of the pivotal trial, MANIFEST-2,” said
June 12, 2020, Constellation presented an update of MANIFEST data as of an April 17, 2020, data cutoff in three posters at the European Hematology Associationmeeting, which are shown on Constellation’s website. Constellation plans to provide its next MANIFEST update, including both clinical and translational data, by the end of 2020.
- To expand the use of CPI-0610 into indications for other hematologic malignancies, the Company announced today that it intends to explore the potential for CPI-0610 in approximately 20 patients with high-risk essential thrombocythemia (ET) who are intolerant of, or refractory to, hydroxyurea by initiating a new arm of MANIFEST in the second half of 2020.
- We are currently conducting the Phase 1 dose escalation portion of a Phase 1/2 clinical trial of the EZH2 inhibitor CPI-0209 in solid tumors, which is proceeding as planned. After determining the recommended Phase 2 dose for the monotherapy, which we expect to accomplish in 2020, we intend to pursue monotherapy expansion arms in selected solid tumor indications with a biomarker enrichment strategy. We will also determine the recommended Phase 2 dose in combination therapy and then pursue expansion arms for this combination therapy.
During the second quarter, Constellation strengthened its board of directors and senior management with two appointments:
April 6, Dr. Richard Levywas appointed to the board of directors. Dr. Levyhas nearly 30 years of experience in the pharmaceutical and biotechnology sectors, where he held senior clinical development positions at Incyte, Celgene, DuPont Pharmaceuticals, and Sandoz / Novartis. He served as Executive Vice President and Chief Drug Development and Medical Officer at Incyte, where from 2003 to 2016 he was responsible for the expansion of the clinical development portfolio in oncology and inflammation.
June 22, Dr. Jeffrey Humphreywas appointed Chief Medical Officer. Dr. Humphreyis a medical oncologist with over 20 years of experience in drug development. Prior to joining Constellation, he was Chief Development Officer at Kyowa Kirin Co., where he oversaw development of the company’s global portfolio of experimental therapeutics for Western markets. Dr. Humphreybegan his work in industry clinical research at Bristol-Myers Squibb and subsequently served in management positions for early and late drug development and medical affairs at Pfizer, Bayer, and Bristol-Myers Squibb.
The Company anticipates achieving the following milestones during 2020:
CPI-0610 – Initiate Phase 3 clinical trial in the second half of 2020
CPI-0610 – Provide additional MANIFEST program update by end of year
CPI-0209 – Provide program update, including recommended Phase 2 dose, by end of year
Second Quarter 2020 Financial Results
- Cash, cash equivalents, and marketable securities as of June 30, 2020, were
$520.5 million, an increase of 35.6% compared to December 31, 2019, primarily due to gross proceeds of $192.5 millionfrom the public offering in June 2020, offset by operating expenses.
- Research and development (R&D) expenses increased 41.8% year over year to $22.6 million in the second quarter of 2020, mainly due to increased clinical trial expenses.
- General and administrative (G&A) expenses grew 42.4% year over year to
$7.0million in the second quarter of 2020, primarily due to building out the organization of the company.
- The net loss attributed to common shareholders increased 43.3% year over year to $29.8 million for the second quarter of 2020, mainly due to increased R&D and G&A expenses. The net loss per share attributable to common shareholders decreased 12.5% to
$0.70per share due to an increase in shares outstanding as a result of the private placement in October 2019and the public offerings in December 2019and June 2020, offset in part by the increased net loss.
First Half 2020 Financial Results
- Research and development (R&D) expenses increased 35.0% year over year to $42.7 million in the first half of 2020, mainly due to increased clinical trial expenses.
- General and administrative (G&A) expenses grew 38.1% year over year to
$12.9million in the first half of 2020, primarily due to building out the organization of the company.
- The net loss attributed to common shareholders increased 37.3% year over year to $55.2 million for the first half of 2020, mainly due to increased R&D and G&A expenses. The net loss per share attributable to common shareholders decreased 16.0% to
$1.31per share due to an increase in shares outstanding as a result of the private placement in October 2019and the public offerings in December 2019and June 2020, offset in part by the increased net loss.
Constellation expects that its current cash, cash equivalents, and marketable securities will fund operations into mid-2023.
Results of Operations (unaudited)
|Six months ended
||Three months ended
|($ in thousands, except share and per-share amounts)||2020||2019||2020||2019|
|Research and development||$||42,702||$||31,632||$||22,627||$||15,955|
|General and administrative||12,868||9,315||6,960||4,886|
|Total operating expenses||55,570||40,947||29,587||20,841|
|Loss from operations||(55,570||)||(40,947||)||(29,587||)||(20,841||)|
|Other income (expense):|
|Gain on disposal of equipment||29||—||29||—|
|Total other income (expense), net||412||754||(142||)||74|
|Loss before income taxes||(55,158||)||(40,193||)||(29,729||)||(20,767||)|
|Income tax expense||39||—||24||—|
|Net loss per share attributable to common stockholders, basic and diluted||$||(1.31||)||$||(1.56||)||$||(0.70||)||$||(0.80||)|
|Weighted average number of common shares used in net loss per share attributable to common stockholders, basic and diluted||42,177,523||25,807,132||42,589,415||25,809,556|
|Other comprehensive gain:|
|Unrealized gain on marketable securities||261||11||345||2|
|Total other comprehensive gain||$||261||$||11||$||345||$||2|
Consolidated Balance Sheets (unaudited)
|($ in thousands)||2020||2019|
|Cash and cash equivalents||$||179,112||$||334,332|
|Total current assets||523,099||386,989|
|Long-term debt, net of current portion and discount||27,569||29,642|
|Total stockholders’ equity||471,981||337,584|
Constellation will host a conference call at
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties, including statements regarding the Company’s clinical development and regulatory plans, timelines, and prospects, the timing of availability of clinical trial data and the Company’s ability to fund its operations thru mi-2023. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any forward-looking statements 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. These risks and uncertainties include, but are not limited to, risks associated with the Company’s ability to: obtain and maintain necessary approvals from the FDA and other regulatory authorities; continue to advance its product candidates in clinical trials; whether preliminary or interim data from a clinical trial will be predictive of the final results of the trial; replicate in later clinical trials positive results found in preclinical studies and early-stage clinical trials of CPI-0610 and CPI-0209; advance the development of its product candidates under the timelines it anticipates, or at all, in current and future clinical trials; obtain, maintain, or protect intellectual property rights related to its product candidates; manage expenses; raise the substantial additional capital needed to achieve its business objectives; the COVID-19 pandemic and general economic and market conditions. CPI-0610, CPI-1205 and CPI-0209 are investigational therapies and have not been approved by the FDA (or any other regulatory authority). For a discussion of other risks and uncertainties, any of which could cause the Company’s actual results to differ from those contained in the forward-looking statements, see the “Risk Factors” section, as well as discussions of potential risks, uncertainties, and other important factors, in the Company’s most recent filings with the
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Senior Director, Investor Relations
Source: Constellation Pharmaceuticals