Atreca Reports Third Quarter 2023 Financial Results and Announces Further Reorganization to Support Exploration of Strategic Alternatives
November 14 2023 - 3:30PM
Atreca, Inc. (Atreca) (NASDAQ: BCEL), a clinical-stage
biotechnology company focused on developing novel therapeutics
generated through a unique discovery platform based on
interrogation of the active human immune response, today reported
financial results for the third quarter ended September 30, 2023,
and announced that the Company is implementing a further reduction
in its workforce of approximately 40% while maintaining the
necessary support to continue exploring potential strategic
transactions and business alternatives.
“Since our founding, Atreca has leveraged a unique discovery
platform to identify numerous antibodies binding novel targets in
oncology, as well as infectious and autoimmune disease,” said John
Orwin. “We remain focused on advancing APN-497444 through
preclinical testing and continue to believe that our approach has
potential to unlock meaningful tumor targets undiscoverable by
conventional approaches. Nevertheless, given current financial
market conditions and the funding needs required to advance ‘444
and our other antibody-drug conjugate programs into clinical
development, we have made the difficult decision to further reduce
our headcount as we explore strategic alternatives. I’d like to
thank all employees impacted for their contributions.”
Third Quarter 2023 Financial Results
- As of September
30, 2023, cash and cash equivalents and investments totaled $21.4
million.
- Research and
development expenses for the three months ended September 30, 2023,
were $10.4 million, including non-cash stock-based compensation
expense of $1.0 million.
- General and
administrative expenses for the three months ended September 30,
2023, were $5.4 million, including non-cash stock-based
compensation expense of $1.3 million.
- Atreca reported a
net loss of $36.2 million, or basic and diluted net loss per share
attributable to common stockholders of $0.92, for the quarter ended
September 30, 2023.
About Atreca, Inc.Atreca is a biopharmaceutical
company developing novel antibody-based therapeutics generated by
its differentiated discovery platform, with a focus on
antibody-drug conjugates (ADCs). Atreca's platform allows access to
an unexplored landscape in oncology through the identification of
unique antibody-target pairs generated by the human immune system
during an active immune response against tumors. These antibodies
provide the basis for a pipeline of first-in-class oncology
programs led by APN-497444, an ADC targeting a novel tumor glycan,
in addition to MAM01/ATRC-501, a clinical candidate licensed to the
Bill & Melinda Gates Medical Research Institute for the
prevention of malaria. For more information on Atreca, please visit
www.atreca.com.
Forward-Looking Statements This release
contains statements regarding matters that are not historical facts
that are “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, but are not limited to,
statements regarding our strategy and future plans, including
statements regarding our corporate reorganization to further reduce
our workforce while maintaining the necessary support to continue
exploring potential strategic transactions and business
alternatives, the effectiveness of our recently announced workforce
reduction, and our plans to focus on advancing APN-497444,
including our belief that our discovery platform and approach has
potential to unlock meaningful tumor targets undiscoverable by
conventional approaches. Our actual results may differ materially
from those indicated in these forward-looking statements due to
risks and uncertainties related to the initiation, timing, progress
and results of our research and development programs, preclinical
studies, clinical trials, regulatory submissions, and other matters
that are described in our most recent Annual Report on Form 10-K
and Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission (SEC) and available on the SEC's website at
www.sec.gov, including the risk factors set forth therein.
Investors are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
release, and we undertake no obligation to update any
forward-looking statement in this press release, except as required
by law.
|
Atreca, Inc. |
Balance Sheets |
(in thousands, except share and per share data) |
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
(unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
13,470 |
|
|
$ |
30,819 |
|
|
Investments |
|
|
7,918 |
|
|
|
39,676 |
|
|
Prepaid expenses and other current assets |
|
|
3,305 |
|
|
|
7,531 |
|
|
Total current assets |
|
|
24,693 |
|
|
|
78,026 |
|
|
Property and equipment, net |
|
|
1,614 |
|
|
|
37,972 |
|
|
Operating lease right-of-use
assets |
|
|
— |
|
|
|
36,056 |
|
|
Deposits and other |
|
|
35 |
|
|
|
2,976 |
|
|
Total assets |
|
$ |
26,342 |
|
|
$ |
155,030 |
|
|
|
|
|
|
|
|
|
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Current Liabilities |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
4,062 |
|
|
$ |
1,741 |
|
|
Accrued expenses |
|
|
9,292 |
|
|
|
9,681 |
|
|
Operating lease liabilities, current portion |
|
|
1,281 |
|
|
|
3,544 |
|
|
Other current liabilities |
|
|
948 |
|
|
|
1,327 |
|
|
Total current liabilities |
|
|
15,583 |
|
|
|
16,293 |
|
|
Operating lease liabilities, net
of current portion |
|
|
— |
|
|
|
60,331 |
|
|
Total liabilities |
|
|
15,583 |
|
|
|
76,624 |
|
|
Commitment and contingencies
(Note 9) |
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
Class A common stock, $0.0001 par value, 650,000,000 shares
authorized as of both September 30, 2023 and December 31, 2022;
32,908,634 and 32,351,950 shares issued and outstanding at
September 30, 2023 and December 31, 2022, respectively |
|
|
3 |
|
|
|
3 |
|
|
Class B common stock, $0.0001 par value, 50,000,000 shares
authorized as of both September 30, 2023 and December 31, 2022;
6,715,441 shares issued and outstanding as of both September 30,
2023 and December 31, 2022 |
|
|
1 |
|
|
|
1 |
|
|
Additional paid-in capital |
|
|
544,094 |
|
|
|
535,592 |
|
|
Accumulated other comprehensive loss |
|
|
(4 |
) |
|
|
(266 |
) |
|
Accumulated deficit |
|
|
(533,335 |
) |
|
|
(456,924 |
) |
|
Total stockholders’ equity |
|
|
10,759 |
|
|
|
78,406 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
26,342 |
|
|
$ |
155,030 |
|
|
|
Atreca, Inc. |
Statements of Operations |
(in thousands, except share and per share data) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
$ |
10,407 |
|
|
$ |
16,045 |
|
|
$ |
36,774 |
|
|
$ |
53,062 |
|
General and administrative |
|
|
5,386 |
|
|
|
7,247 |
|
|
|
20,300 |
|
|
|
23,930 |
|
Restructuring and impairment charges |
|
|
20,856 |
|
|
|
— |
|
|
|
20,856 |
|
|
|
— |
|
Total expenses |
|
|
36,649 |
|
|
|
23,292 |
|
|
|
77,930 |
|
|
|
76,992 |
|
Interest and other income
(expense) |
|
|
|
|
|
|
|
|
|
|
|
|
Other income |
|
|
80 |
|
|
|
— |
|
|
|
243 |
|
|
|
750 |
|
Interest income |
|
|
354 |
|
|
|
233 |
|
|
|
1,276 |
|
|
|
430 |
|
Net other income (expense) |
|
$ |
434 |
|
|
$ |
233 |
|
|
$ |
1,519 |
|
|
$ |
1,180 |
|
Loss before income tax
expense |
|
|
(36,215 |
) |
|
|
(23,059 |
) |
|
|
(76,411 |
) |
|
|
(75,812 |
) |
Income tax expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss |
|
$ |
(36,215 |
) |
|
$ |
(23,059 |
) |
|
$ |
(76,411 |
) |
|
$ |
(75,812 |
) |
Net loss per share, basic and
diluted |
|
$ |
(0.92 |
) |
|
$ |
(0.60 |
) |
|
$ |
(1.95 |
) |
|
$ |
(1.97 |
) |
Weighted-average shares used in
computing net loss per share, basic and diluted |
|
|
39,354,502 |
|
|
|
38,720,575 |
|
|
|
39,202,045 |
|
|
|
38,434,327 |
|
Contacts
Investors and Media:Alex Gray, 650-779-9251agray@atreca.com
Source: Atreca, Inc.
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