Recently announced results of open label extension part of SHINE Phase IIb study confirm potential of IFX-1 in Hidradenitis Suppurativa and warrant evaluation of future development
Company announces updated strategy with focus on selected indications for its anti-C5a complement technology and on broadening the development pipeline
Cash and cash equivalents plus securities and other investments of EUR135.5 million (approx. US$151 million) as of September 30, 2019
Conference call to be held today at 8am EST / 2pm CET
JENA, GERMANY / ACCESSWIRE / November 7, 2019 / InflaRx (NASDAQ:IFRX), a clinical-stage biopharmaceutical company developing anti-inflammatory therapeutics by targeting the complement system, today reported financial results for the third quarter and first nine months of 2019 and provided a business update, outlining its corporate strategy and plans.
Prof. Niels C. Riedemann, CEO and Founder of InflaRx, commented: 'Based on our firm belief in the potential of our anti-C5a technology, we have conducted an in-depth assessment of all currently pursued development efforts and decided to put a focus on inflammatory rare diseases with high unmet medical need as well as on a defined oncology space. With this, we aim to deliver several clinical proof-of-concept milestones. Our strong cash position will additionally allow us to pursue a strategy to broaden and diversify our pipeline beyond C5a inhibition.'
IFX-1 in Hidradenitis Suppurativa: Although the main part of the SHINE Phase IIb trial did not achieve its primary endpoint of a dose dependent drug effect on the Hidradenitis Suppurativa Clinical Response Score (HiSCR) at week 16, in July, the Company reported additional results from an in-depth post-hoc data analysis of the main part of the SHINE trial. This post-hoc analysis suggested a robust anti-inflammatory activity in the high dose IFX-1 treatment group across numerous efficacy measures which were not reflected by the HiSCR. Additionally, the Company very recently reported positive results from a snapshot analysis of the open label extension (OLE) part of the SHINE study: 70.6% of the HiSCR Responder Group maintained their response during the OLE, and 41.8% of the HiSCR Non-responder Group became responders at week 40, which represented the end of the treatment period.
Strategic update: As a result of a comprehensive review of all currently running clinical programs with IFX-1 and based on newly available data, Management has decided to continue these programs while broadening its R&D pipeline as part of its diversification strategy. IFX-1 will be developed in current and new indications, such as a defined oncology indication in which a clinical proof-of-concept study is planned to start enrollment in 2020. With the positive long-term results announced recently in the OLE part of the SHINE Phase IIb study in HS, InflaRx plans to discuss with regulatory authorities the data from the trial and next steps regarding the future development of IFX-1 in this indication.
In parallel, InflaRx is pursuing a diversification strategy to broaden its pipeline beyond C5a inhibition. In order to implement this strategy, InflaRx has hired an experienced head of global business development and strategy in the US with a pharmaceutical background who is expected to join the team within the course of November 2019.
The Company has decided to focus its development efforts on rare and inflammatory diseases with high unmet medical need and on the oncology space.
IFX-1 in Pyoderma Gangraenosum (PG): The ongoing open label Phase IIa trial in Pyoderma Gangraenosum (PG), a debilitating, rare autoimmune disease marked by large, painful ulcers, is continuing enrollment. The Company has decided to expand enrollment from 12 to 18 patients.
Management update: The Company has unilaterally terminated the employment contract of the CMO of the Company, Othmar Zenker.
Q3 2019 financial highlights
Cash and cash equivalents plus securities and other investments totaled EUR135.5 million as of September 30, 2019, compared to EUR156.3 million as of December 31, 2018. Cash and cash equivalents amounted to EUR27.0 million as of September 30, 2019 (December 31, 2018: EUR55.4 million) and marketable securities EUR108.5 million (December 31, 2018: EUR100.9 million).
Net cash used in operating activities increased to EUR27.0 million in the first nine months of 2019, compared to EUR15.2 million in the first nine months of 2018, mainly due to higher cash expenses, such as third-party expenses for manufacturing and clinical trials for our lead program IFX-1 and personnel expenses at InflaRx.
Research and development expenses increased to EUR33.6 million for the first nine months of 2019 (2018: EUR16.0 million). The principal drivers of the increase were CRO expenses associated with preclinical studies and clinical trials conducted for IFX-1 as well as manufacturing costs.
General and administrative expenses amounted to EUR9.4 million in the first nine months of 2019, compared to EUR9.2 million in the first nine months of 2018.
Net financial result in the first nine months of 2019 of EUR3.3 million consisted of EUR2.3 million interest income and EUR1.0 million net exchange gain, compared to a net financial gain of EUR5.4 million in the first nine months of 2018, which mainly consisted of EUR4.1 million net foreign exchange gains and EUR1.5 million interest income.
Net loss for the first nine months of 2019 was EUR39.6 million or EUR (1.53) per common share (basic and diluted), compared to EUR19.5 million or EUR (0.79) per common share (basic and diluted) for the first nine months of 2018.
Net loss for the three months ended September 30, 2019 was EUR14.5 million or EUR (0.56) per common share (basic and diluted), compared to EUR6.8 million or EUR (0.26) per common share (basic and diluted) for the respective three months of 2018.
Additional information regarding these results is included in the notes to the consolidated financial statements as of and for the quarter ended September 30, 2019, which can be found on the InflaRx website in the Investors section.
Strategic update call
Today, the Company will host a conference call to provide details on the results of the OLE part of the SHINE study and a strategic update in conjunction with its quarterly results at 8am EST / 2pm CET.
From the US: +1 929 477 0402
From the UK: +44 (0) 330 336 9127
From Europe: +49 (0) 69 2222 25577
Conference Code: 3567762
Please dial in 10 minutes before the call to register. The webcast presentation for the conference call can be accessed here