TFF Pharmaceuticals Reports Second Quarter Financial Results and Provides Corporate Update
August 14 2024 - 3:05PM
TFF Pharmaceuticals, Inc. (NASDAQ: TFFP) (“the Company”), a
clinical-stage biopharmaceutical company focused on developing and
commercializing innovative drug products based on its patented Thin
Film Freezing (TFF) technology platform, today reported financial
results for the second quarter 2024 and provided a corporate
update.
“Over the last several months, we have amassed a growing body of
positive safety, efficacy and confirmatory biomarker data from our
Phase 2 program that points towards TFF TAC becoming a significant
new advancement for the prevention of lung transplant rejection,”
said Harlan Weisman, M.D., Chief Executive Officer of TFF
Pharmaceuticals. “Given our current financial resources, we are
continuing to evaluate a number of different strategies to advance
the TFF TAC clinical program in the most efficient manner
possible.”
Recent Clinical
and Corporate
Highlights:
- The Company recently provided an
update from the ongoing Phase 2 trial of Tacrolimus Inhalation
Powder (TFF TAC) for the prevention of lung transplant rejection.
- Patient enrollment has accelerated with 13 patients now
enrolled
- TFF TAC at ~20% of the oral tacrolimus dose prevented acute
rejection and achieved >80% of the oral trough blood levels
leading to diminished drug burden
- 9 out of 9 (100%) patients who completed the 12-week treatment
period with TFF TAC chose to remain on the therapy by proceeding to
the long-term extension phase
- PK data indicate that TFF TAC dosing results in reduced
systemic variability of tacrolimus; the systemic tacrolimus trough
to peak concentration swings that occur with oral tacrolimus are
not present with TFF TAC, which is predicted to reduce the risk of
organ rejection and systemic toxicities such as chronic kidney
disease.
- Confirmatory biomarker data also remain positive:
- Updated biomarker data indicate a 6.5-fold reduction in the
number of abnormally expressed rejection-related gene sets after 12
weeks of treatment with TFF TAC compared to oral tacrolimus. These
data further suggest TFF TAC has the potential to provide
sufficient immunosuppression to prevent rejection; there was a
reduction in expression of rejection-related gene sets from 23%
abnormal while on oral tacrolimus to only 3.6% abnormal after
treatment with TFF TAC (an 85% reduction).
- New biomarker data exploring the presence of donor-specific
antibodies (DSA) are now available in the first 8 patients from the
study. DSA is known to drive antibody-mediated rejection and is
generated when there is insufficient immune suppression
systemically allowing the formation of antibodies in the lymph
nodes and the spleen against the transplanted (donor) organ. DSA
was negative for the first 8 patients on oral tacrolimus, and DSA
remained negative after 12 weeks of treatment with TFF TAC.
- With respect to TFF TAC safety and tolerability, there has been
no mortality. The majority of treatment emergent adverse events
were Grade 2 (moderate) or lower with no bronchospasm or wheezing
reported. Kidney function has been maintained.
- One patient was transitioned to a dose of TFF TAC that was too
low, which led to blood trough levels that were >50% below the
protocol-specified minimum. This patient experienced signs of acute
rejection (Grade A1, which is minimal severity based on
histopathology). TFF TAC was discontinued as required by the
protocol, and oral tacrolimus was resumed. The acute rejection
episode has resolved.
- TFF is finalizing the design of the next study with TFF TAC in
close collaboration with clinical investigators and is in
communication with regulatory authorities and plans to provide
additional updates on the program including a regulatory update
later in the fall.
- In June 2024, the Company announced
that it engaged Outcome Capital as a strategic advisor for the
purpose of evaluating potential corporate partnerships and
licensing opportunities.
- In May 2024, the Company announced
that the U.S. government will be advancing several next-generation
medical countermeasures (MCMs) formulated with its Thin Film
Freezing technology into advanced preclinical testing. TFF
Pharmaceuticals is collaborating with Leidos, a leading Fortune 500
information technology, engineering and science solutions and
services leader, to develop next-generation MCMs designed to
protect military and healthcare personnel against future chemical
and biological (CB) threats. The research is funded by the Defense
Advanced Research Projects Agency (DARPA) under a contract
through the Personalized Protective Biosystems (PPB) program.
- In May 2024, the Company announced
that, in collaboration with the Cleveland Clinic, TFF
Pharmaceuticals is advancing multiple multivalent universal
influenza vaccines to protect against seasonal and pandemic viruses
into preclinical testing. The decision to advance the vaccine
candidates into preclinical testing was based upon the successful
completion of formulation testing with stability data on the
combination of hemagglutinin (HA) antigens with four different
adjuvants. Based on these data, three HA antigen/adjuvant candidate
vaccines have been selected for testing in a pre-clinical model at
Cleveland Clinic Florida.
Second Quarter 2024 Financial
Results
Balance Sheet Highlights
- As of June
30, 2024, TFF Pharmaceuticals cash and cash equivalents were
approximately $4.4 million. On May 1, 2024, the Company
completed a registered direct offering, receiving gross proceeds of
$4.8 million before deducting offering expenses.
Operating Results
- Research and
Development (R&D) expenses were $2.6 million for the quarter
ended June 30, 2024, a decrease of $0.1 million, or 3%, compared to
$2.7 million for the quarter ended June 30, 2023. The net decrease
of $0.1 million was primarily related to a decrease of $0.3 million
in manufacturing and related expenses, offset by an increase of
$0.2 million in compensation-related expenses.
- General &
Administrative (G&A) expenses were $2.0 million for the quarter
ended June 30, 2024, a decrease of $0.7 million, or 24%, compared
to $2.7 million for the quarter ended June 30, 2023. The net
decrease of $0.7 million was primarily related to decreases of $0.5
million in compensation-related expenses and $0.2 million in
insurance expenses.
- Net
Loss: Net loss was $4.5 million for the quarter ended June 30,
2024, a decrease of $0.5 million, compared to a net loss
of $5.0 million for the quarter ended June 30, 2023.
ABOUT TFF PHARMACEUTICALS’ THIN FILM FREEZING (TFF)
TECHNOLOGYTFF Pharmaceuticals’ proprietary Thin Film
Freezing (TFF) technology allows for the transformation of both
existing compounds and new chemical entities into dry powder
formulations exhibiting unique characteristics and benefits. The
TFF process is a particle engineering process designed to generate
dry powder particles with advantageous properties for inhalation,
as well as parenteral, nasal, oral, topical and ocular routes of
administration. The process can be used to engineer powders for
direct delivery to the site of need, circumventing challenges of
systemic administration and leading to improved bioavailability,
faster onset of action, and improved safety and efficacy. The
ability to deliver therapies directly to the target organ, such as
the lung, allows TFF powders to be administered at lower doses
compared to oral drugs, reducing unwanted toxicities and side
effects. Laboratory data suggests the aerodynamic properties of the
powders created by TFF can deliver as much as 75% of the dose to
the deep lung. TFF does not introduce heat, shear stress, or other
forces that can damage more complex therapeutic components, such as
fragile biologics, and instead enables the reformulation of these
materials into easily stored and temperature-stable dry powders,
making therapeutics and vaccines more accessible for distribution
worldwide. The advantages of TFF can be used to enhance traditional
delivery or combined to enable next-generation pharmaceutical
products.
ABOUT TFF PHARMACEUTICALSTFF Pharmaceuticals,
Inc. is a clinical-stage biopharmaceutical company engaging
patented rapid freezing technology to develop and transform
medicines into potent dry powder formulations for better efficacy,
safety, and stability. The company’s versatile TFF technology
platform has broad applicability to convert most any drug,
including vaccines, small and large molecules, and biologics, into
an elegant dry powder highly advantageous for inhalation or for
topical delivery to the eyes, nose and skin.
SAFE HARBORThis press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements in this press release include, but are not limited to,
statements by the Company relating to the innovation and commercial
potential of the Company’s TFF TAC product candidates.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause actual results to
differ materially, including (i) the risk that further data from
the Company’s ongoing Phase 2 trial of TFF TAC may not be
consistent with the positive preliminary data obtained to date,
(ii) the risk that the Company may not be able to obtain additional
working capital with which to continue its current operations and
clinical trials as and when needed, (iii) success in early phases
of pre-clinical and clinical trials do not ensure later clinical
trials will be successful; (iv) no drug product incorporating the
TFF platform has received FDA pre-market approval or otherwise been
incorporated into a commercial drug product, (v) the Company has no
current agreements or understandings with any large pharmaceutical
companies for the development of a drug product incorporating the
TFF Platform, and (vi) those other risks disclosed in the section
“Risk Factors” included in the Company’s Quarterly Report on Form
10-Q filed with the SEC on August 14, 2024. The
Company cautions readers not to place undue reliance on any
forward-looking statements. The Company does not undertake and
specifically disclaims any obligation to update or revise such
statements to reflect new circumstances or unanticipated events as
they occur, except as required by law.
Investor Relations
Contact:Jason NelsonCoreIRjason@coreir.com
TFF PHARMACEUTICALS, INC.UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
Three Months EndedJune 30, |
|
|
Six Months EndedJune 30, |
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
$ |
650,222 |
|
|
$ |
333,351 |
|
|
$ |
853,495 |
|
|
$ |
384,780 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
2,588,316 |
|
|
|
2,681,898 |
|
|
|
6,144,178 |
|
|
|
6,700,557 |
|
General and administrative |
|
2,024,473 |
|
|
|
2,670,363 |
|
|
|
4,462,777 |
|
|
|
5,789,579 |
|
Total operating expenses |
|
4,612,789 |
|
|
|
5,352,261 |
|
|
|
10,606,955 |
|
|
|
12,490,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
(3,962,567 |
) |
|
|
(5,018,910 |
) |
|
|
(9,753,460 |
) |
|
|
(12,105,356 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net |
|
43,819 |
|
|
|
36,120 |
|
|
|
99,568 |
|
|
|
71,199 |
|
Change in fair value of note receivable |
|
(560,473 |
) |
|
|
(37,416 |
) |
|
|
(560,473 |
) |
|
|
(37,416 |
) |
Total other income (expense),
net |
|
(516,654 |
) |
|
|
(1,296 |
) |
|
|
(460,905 |
) |
|
|
33,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(4,479,221 |
) |
|
$ |
(5,020,206 |
) |
|
$ |
(10,214,365 |
) |
|
$ |
(12,071,573 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic and
diluted |
$ |
(1.22 |
) |
|
$ |
(3.47 |
) |
|
$ |
(3.37 |
) |
|
$ |
(8.34 |
) |
Weighted average common shares
outstanding, basic and diluted |
|
3,667,264 |
|
|
|
1,447,723 |
|
|
|
3,027,585 |
|
|
|
1,447,723 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TFF PHARMACEUTICALS, INC.CONDENSED CONSOLIDATED
BALANCE SHEETS |
|
June 30,2024 |
|
|
December 31,2023 |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
4,387,198 |
|
|
$ |
5,478,113 |
|
Research and development tax
incentive receivable |
|
400,881 |
|
|
|
433,852 |
|
Prepaid assets and other
current assets |
|
1,092,096 |
|
|
|
1,678,353 |
|
Total current assets |
|
5,880,175 |
|
|
|
7,590,318 |
|
Operating lease right-of-use
asset, net |
|
78,924 |
|
|
|
119,529 |
|
Property and equipment,
net |
|
1,759,611 |
|
|
|
1,999,781 |
|
Investment in Vaxanix |
|
1,776,746 |
|
|
|
- |
|
Note receivable -
Augmenta |
|
- |
|
|
|
2,310,000 |
|
Other assets |
|
- |
|
|
|
7,688 |
|
Total assets |
$ |
9,495,456 |
|
|
$ |
12,027,316 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
$ |
1,358,876 |
|
|
$ |
958,442 |
|
Accrued liabilities |
|
2,160,140 |
|
|
|
1,285,586 |
|
Deferred research grant
revenue |
|
25,000 |
|
|
|
101,000 |
|
Current portion of operating
lease liability |
|
74,124 |
|
|
|
83,512 |
|
Total current liabilities |
|
3,618,140 |
|
|
|
2,428,540 |
|
Operating lease liability, net
of current portion |
|
- |
|
|
|
31,742 |
|
Total liabilities |
|
3,618,140 |
|
|
|
2,460,282 |
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
Common stock |
|
3,246 |
|
|
|
2,370 |
|
Additional paid-in
capital |
|
134,604,851 |
|
|
|
128,044,509 |
|
Accumulated other
comprehensive loss |
|
(184,763 |
) |
|
|
(148,192 |
) |
Accumulated deficit |
|
(128,546,018 |
) |
|
|
(118,331,653 |
) |
Total stockholders’
equity |
|
5,877,316 |
|
|
|
9,567,034 |
|
Total liabilities and
stockholders’ equity |
$ |
9,495,456 |
|
|
$ |
12,027,316 |
|
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