Magenta Therapeutics Reports Recent Operational Progress and Third Quarter 2018 Financial Results

From Startup Magenta Therapeutics

Link to Full Article: https://investor.magentatx.com/news-releases/news-release-details/magenta-therapeutics-reports-recent-operational-progress-and-0

–Nine clinical and preclinical abstracts accepted for
presentation at American Society of Hematology (ASH) annual meeting –
– Continued to strengthen robust intellectual property position –
– Ended quarter with $159.7M in cash and cash equivalents –
CAMBRIDGE, Mass.–(BUSINESS WIRE)–Nov. 8, 2018–
Magenta
Therapeutics (NASDAQ: MGTA), a clinical-stage biotechnology company
developing novel medicines to bring the curative power of bone marrow
transplant to more patients, today reported financial results and
business highlights for the third quarter ended September 30, 2018.

“Over the third quarter of 2018, Magenta has continued its progress
across the portfolio and remains well funded and on track for our 2020
vision of three programs moving forward in the clinic in multiple
indications,” said Jason Gardner, D.Phil., chief executive officer and
president, Magenta Therapeutics. “We look forward to sharing important
data updates on our stem cell expansion, mobilization and targeted
conditioning programs at ASH this year as we work to build a fully
integrated company with the singular goal of allowing more patients to
receive curative cell therapies.”

Recent Business Highlights:
Nine Clinical and Preclinical Abstracts Accepted for Presentation at
the ASH Annual Meeting: Magenta announced on November 1st,
2018 that nine abstracts from the Company and its collaborators were
accepted for presentation at the ASH annual meeting in December 2018.
The abstracts cover the breadth of Magenta’s integrated portfolio of
programs and include preliminary clinical data from the Company’s Phase
2 study of cell therapy MGTA-456 in patients with inherited metabolic
disorders.

Continued to Strengthen Robust Intellectual Property Position: Magenta’s
first U.S. patent, directed to dosage regimens of mobilization therapy
MGTA-145 and plerixafor, was issued in August 2018. The Company’s second
U.S. patent was issued for the C200 conditioning program in October
2018, with claims directed to methods of treatment using an
anti-CD117-amatoxin antibody-drug conjugate (ADC). For the C100 targeted
patient preparation program, an Australian patent application was
allowed with claims directed to methods of treatment using an
anti-CD45-amatoxin ADC.

Financial Results:
Cash Position: Cash and cash equivalents as of September 30,
2018, were $159.7 million compared to $51.4 million on December 31,
2017. The increase is primarily driven by net proceeds from the $52.2
million Series C preferred stock financing completed in April 2018, and
net proceeds of $89.9 million from Magenta’s IPO completed in June 2018.
Magenta anticipates that its cash and cash equivalents will be
sufficient to fund operations and capital expenditures through at least
the first quarter of 2020 on the Company’s current business plan.

Research and Development Expenses: Research and development (R&D)
expenses were $11.4 million in the third quarter of 2018, compared to
$5.2 million for the same period in 2017. The increase was largely due
to increased preclinical costs, toxicology studies and manufacturing to
support our mobilization program, the advancement of the MGTA-456 Phase
2 clinical trial, continued progression of the Company’s pipeline and
increased costs associated with the growth of the Company.

General and Administrative Expenses: General and administrative
(G&A) expenses were $5.3 million for the third quarter of 2018, compared
to $1.8 million for the same period in 2017. The increase was largely
due to increased G&A personnel and facility costs associated with the
growth of the Company.

Net Loss: Net loss was $16 million for the third quarter of 2018,
compared to net loss of $6.9 million for the same period in 2017.

About Magenta TherapeuticsHeadquartered in Cambridge,
Mass., Magenta Therapeutics is a clinical-stage biotechnology company
developing novel medicines for patients with autoimmune diseases, blood
cancers and genetic diseases. By creating a platform focused on critical
areas of unmet need, Magenta Therapeutics is pioneering an integrated
approach to allow more patients to receive one-time, curative therapies
by making the process more effective, safer and easier.

Forward-Looking StatementThis press release may contain
forward-looking statements, including express or implied statements
regarding Magenta’s future expectations, plans and prospects, including
projections regarding future revenues and financing performance, our
long-term growth, the anticipated timing of our clinical trials and
regulatory filings, the development of our product candidates and
advancement of our preclinical programs, as well as other statements
containing the words “anticipate,” “believe,” “continue,” “could,”
“estimate,” “expect,” “intend,” “may,” might,” “plan,” “potential,”
“project,” “should,” target,” “will” or “would” and similar expressions
that constitute forward-looking statements under the Private Securities
Litigation Reform Act of 1995. Although Magenta’s forward-looking
statements reflect the good faith judgment of its management, these
statements are based only on facts and factors currently known by
Magenta. As a result, you are cautioned not to rely on these
forward-looking statements. These and other risks concerning Magenta’s
programs and operations are described in additional detail in its
registration statement on Form S-1, its Quarterly Report on Form 10-Q
and its other filings made with the Securities and Exchange Commission
from time to time. Any forward-looking statement made in this press
release speaks only as of the date on which it is made. Magenta
undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future developments or otherwise.

 

Magenta Therapeutics, Inc.
STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except share and per share data)

 

 

 

 

Three Months Ended

Nine Months Ended

September 30,

September 30,

2018

2017

2018

2017

 

Revenue

$

$

$

$

Operating expenses:

Research and development

11,418

5,210

28,950

22,348

General and administrative

 

5,284

 

1,805

 

13,083

 

5,209

Total operating expenses

 

16,702

 

7,015

 

42,033

 

27,557

Loss from operations

(16,702)

(7,015)

(42,033)

(27,557)

Interest and other income, net

 

687

 

102

 

1,197

 

102

Net loss

(16,015)

(6,913)

(40,836)

(27,455)

Accretion of redeemable convertible preferred stock

to redemption value

(6)

(88)

(213)

Cumulative dividends on redeemable convertible

preferred stock

(437)

Reversal of cumulative dividends on redeemable

convertible preferred stock

 

 

 

 

634

Net loss attributable to common stockholders

$

(16,015)

$

(6,919)

$

(40,924)

$

(27,471)

Net loss per share attributable to common stockholders, basic

and diluted

$

(0.49)

$

(3.44)

$

(3.05)

$

(15.90)

Weighted average common shares outstanding, basic and diluted

 

32,997,346

 

2,009,880

 

13,396,856

 

1,727,622

 

 

 

 

 

 

 

Magenta Therapeutics, Inc.
BALANCE SHEET DATA
(unaudited)
(In thousands)

 

 

September 30,2018

 

December 31,2017

Cash and cash equivalents

$

159,674

$

51,402

Working capital

150,935

48,361

Total assets

172,793

54,463

Stockholders’ equity (deficit)

159,784

(42,118)

View source version on businesswire.com: https://www.businesswire.com/news/home/20181108005255/en/
Source: Magenta Therapeutics

Magenta Therapeutics:Manisha Pai, 617-510-9193Vice
President, Communications & Investor Relationsmpai@magentatx.com

Please visit their site for more information: Magenta Therapeutics.com

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2018-11-08 19:56:01