Portage Biotech Announces Results for Fiscal Year Ended March 31, 2022
--Company Continues to Execute on Core Business Model While Enhancing Value Proposition and Pipeline with Recent Transactions--
--Robust Pipeline Now Includes Four Fully Owned, Clinical-Stage Assets--
--Cash Runway for New and Current Programs Potentially Extended into 2024--
“Over the past year and in recent weeks we have continued to execute on Portage’s development strategy, leveraging our industry network to identify and efficiently develop novel opportunities to improve the landscape of immuno-oncology treatment for patients with cancer,” said Dr.
Financial & Business Highlights from FY 2022 (
- Acquisition of four best-in-class assets targeting the adenosine pathway from Tarus Therapeutics for approximately
$21 millionupfront consideration: 2,425,999 PRTG shares along with the assumption of $3 millionof liabilities. Payments of up to $32Min Portage ordinary shares or cash may be triggered upon achievement of future development and sales milestones.
- Committed share purchase agreement for up to
$30 millionin value of ordinary shares with Lincoln Park Capital Fund, LLC providing support to the incremental development costs for the adenosine programs, and significant financial flexibility for advancement of Portage’s existing pipeline of novel immunotherapy treatments, potentially extending Portage’s total cash runway into 2024. Robert Glassman, M.D., current EVP of Search and Evaluation at Enavate Sciences, and former independent director of Tarus Therapeutics, to join the Portage Board of Directors; Jim Mellon, Linda Kozickand Mark Simonalso joined the Portage Board.
- Management team strengthened with appointments of
Brian Wileyas Chief Business Officer and Joseph Ciavarellaas Chief Accounting Officer.
Clinical Highlights from FY 2022 and Recent Weeks
- Presented early data from Phase 1/2 study of PORT-2 (IMM60) for patients with melanoma and non-small cell lung cancer at the 2022
American Society of Clinical Oncology(ASCO) meeting; encouraging preliminary safety profile of PORT-2 was observed. PORT-2 was well tolerated when administered intravenously as a monotherapy at all doses tested, including demonstrating single agent activity in one of the two heavily pre-treated patients treated at the mid dose level. Translational analysis confirms that PORT-2 activates iNKT cells, NK cells and dendritic cells, supporting the mechanism of action to stimulate both the adaptive and innate immune system.
- Announced a
Cooperative Researchand Development Agreement (CRADA) with the National Cancer Institute(NCI) and Stimunity, S.A.S, an affiliate of Portage, with experience in the preclinical development of Stimulator of Interferon Genes ( STING) agonists for cancer immunotherapy and infectious diseases; agreement supports preclinical and potential clinical development of STINGagonists and anti-Receptor for Advanced Glycation End products (RAGE) agents, for possible synergy individually or together to enhance the efficacy of cancer vaccines developed in the NCI CCR Vaccine Branch. This CRADA was subsequently amended to include Portage’s newly acquired adenosine assets.
- Promising data was presented by Stimunity on
STING-activating therapy, PORT-5 (STI-001) at the AACR 2022 annual meeting; preclinical data shows that PORT-5, a STINGagonist, cyclic guanosine monophosphate–adenosine monophosphate (cGAMP) packaged in a virus-like particle (VLP) developed with Stimunity, can be delivered systemically and achieve potent activation of the STINGpathway preferentially in dendritic cells.
- Announced new collaborations with
Stanford Universityand University of Birmingham; new collaborations include Dr. Carmela De Santo ( University of Birmingham) on iNKTs, and Dr. Robert Negrin ( Stanford University) to evaluate the use of PORT-2 with iNKT cell therapies in animals.
FY 2022 Financial Results
The Company generated a net loss and comprehensive loss of approximately
Operating expenses, which include research and development and general and administrative expenses, were
Research & development ("R&D") costs decreased by approximately
General and administrative ("G&A") expenses increased by approximately
Additionally, the Company reflected a net deferred income tax expense of
About Portage Biotech Inc.
Portage is a clinical-stage immuno-oncology company advancing first-in-class therapies that target known checkpoint resistance pathways to improve long-term treatment response and quality of life in patients with evasive cancers. Portage’s access to next-generation technologies coupled with a deep understanding of biological mechanisms enables the identification of the most promising clinical therapies and product development strategies that accelerate these medicines through the translational pipeline. Portage’s portfolio consists of six diverse platforms, with lead programs including invariant natural killer T cell (iNKT agonists) and a suite of treatments targeting the adenosine pathway. Additional programs leverage delivery by intratumorals, nanoparticles, liposomes, aptamers, and virus-like particles. Within these six platforms, Portage has 14 products currently in development with multiple clinical readouts expected through the end of 2023. For more information, please visit www.portagebiotech.com, follow us on Twitter at @PortageBiotech or find us on LinkedIn at Portage Biotech Inc.
This news release contains statements about Portage’s information that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties. Although Portage believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof, and Portage undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law.
FOR MORE INFORMATION, PLEASE CONTACT:
Consolidated Statements of Financial Position
|Cash and cash equivalents||$||23,352||$||2,770|
|Prepaid expenses and other receivables||1,480||2,176|
|Long-term portion of other receivables||–||22|
|Investment in associate||1,673||1,735|
|Investments in private companies||7,409||7,409|
|In-process research and development||117,388||117,388|
|Liabilities and Equity|
|Accounts payable and accrued liabilities||$||750||$||1,938|
|Unsecured notes payable||–||150|
|Deferred tax liability||28,445||24,050|
|Stock option reserve||16,928||7,977|
|Accumulated other comprehensive income||958||958|
|Total equity attributed to owners of the Company||121,205||101,449|
|Total liabilities and equity||$||194,662||$||174,860|
|Commitments and Contingent Liabilities|
Consolidated Statements of Operations and Comprehensive Income (Loss)
|Research and development||$||6,769||$||7,312||$||4,108|
|General and administrative expenses||8,819||5,128||1,870|
|Loss from operations||(15,588||)||(12,440||)||(5,978||)|
|Change in fair value of warrant liability||852||(790||)||24|
|Share of (loss) income in associate accounted for using equity method||(62||)||(490||)||18|
|Loss on equity issued at a discount||–||(1,256||)||–|
|Loss on extinguishment of notes payable||–||(223||)||(33||)|
|Gain on sale of marketable equity securities||–||72||–|
|Gain on disposition of subsidiaries||–||412||–|
|Foreign exchange transaction gain||24||–||6|
|Loss before provision for income taxes||(14,817||)||(14,892||)||(6,509||)|
|Income tax benefit (expense)||(4,352||)||(2,297||)||(740||)|
|Other comprehensive income (loss)|
|Net unrealized gain on investments||–||–||876|
|Total comprehensive loss for year||$||(19,169||)||$||(17,189||)||$||(6,373||)|
|Net loss attributable to:|
|Owners of the Company||$||(16,870||)||$||(15,833||)||$||(5,333||)|
|Comprehensive loss attributable to:|
|Owners of the Company||$||(16,870||)||$||(15,833||)||$||(4,457||)|
|Loss per share|
|Basic and diluted||$||(1.29||)||$||(1.35||)||$||(0.49||)|
|Weighted average shares outstanding|
|Basic and diluted||13,060||11,733||10,952|
Source: Portage Biotech, Inc.