X4 Pharmaceuticals Reports Second-Quarter 2023 Financial Results, Provides Corporate Updates, and Reports Emerging Data from Chronic Neutropenia Clinical Program
Submission of first
Emerging data from ongoing Phase 2 trial in certain chronic neutropenic disorders show mavorixafor durably increased neutrophil counts and enabled reductions in G-CSF dosing
New market research confirms significant initial target population for mavorixafor given high unmet needs within
Plans underway for initiation of Phase 3 trial in certain chronic neutropenic disorders in 1H 2024
Conference call to be hosted today at
“After a highly productive second quarter, X4 continues its forward progress as we fast approach our first
“Lastly,”
Recent and Key Anticipated Upcoming Milestones
Advancing Mavorixafor in WHIM (Warts, Hypogammaglobulinemia, Infections, and Myelokathexis) Syndrome:
- Additional clinical data from the Phase 3 4WHIM trial were presented at a company webinar in
May 2023 and at the Annual Meetings of both theClinical Immunology Society (CIS) and theEuropean Hematology Association (EHA) in May andJune 2023 , respectively. - The 4WHIM data presented in the second quarter of 2023 revealed that mavorixafor treatment resulted in statistically significant reductions in annualized infection rates versus placebo and effected clinically meaningful reductions in both the severity and duration of infections versus placebo in trial participants. These data followed disclosure in late 2022 that the 4WHIM trial had met its primary endpoint and first key secondary endpoint and was well tolerated during the trial.
- X4 remains on track for its first
U.S. regulatory submission seeking approval of oral, once-daily mavorixafor for the treatment of people aged 12 years and older with WHIM syndrome early in the second half of 2023. - Given the possibility of
U.S. approval and launch of mavorixafor in WHIM syndrome in the first half of 2024, X4 intends to provide an update on its commercial readiness, physician outreach, and potential WHIM market during the fourth quarter of 2023.
Advancing Mavorixafor in Chronic Neutropenic Disorders:
- Given the demonstration of mavorixafor’s ability to durably raise absolute neutrophil counts (ANC) and reduce infection burden in the 4WHIM trial, X4 is currently evaluating mavorixafor for the treatment of certain chronic neutropenic disorders.
- Building on the success of its Phase 1b trial, X4 is now enrolling a Phase 2 clinical trial (NCT04154488) evaluating the durability, safety, and tolerability of chronic dosing of once-daily oral mavorixafor with or without concurrent treatment with injectable granulocyte colony-stimulating factor (G-CSF) in people with idiopathic, cyclic, and congenital chronic neutropenia.
- Today, X4 reported positive preliminary Phase 2 results from three participants receiving G-CSF and once-daily oral mavorixafor showing robust increases in ANC, maintenance of ANC levels in the normal range, and the ability to reduce G-CSF dose earlier than anticipated. Additional data from this ongoing Phase 2 trial are expected to be shared in the fourth quarter of 2023.
- X4 is planning to initiate a Phase 3 clinical trial evaluating mavorixafor in certain chronic neutropenic disorders in the first half of 2024.
- X4 also announced today that new research into the estimated 50,000 individuals in the
U.S. diagnosed with chronic neutropenia confirms significant unmet medical needs exist despite the availability and use of G-CSF and suggests a potential minimal addressable market for mavorixafor of approximately one third of this population, or approximately 15,000 individuals in theU.S. , plus meaningful potential market expansion opportunities.
Other Corporate Updates:
- Additional Mavorixafor Patent Issued: X4 also announced today the strengthening of its patent portfolio with a third patent covering mavorixafor’s composition of matter granted in
June 2023 . This patent protects compositions of matter comprising mavorixafor and a related substance formed during the mavorixafor manufacturing process throughDecember 2038 . - Management Team Strengthened with Addition of New Chief Medical Officer: X4 recently announced the appointment of
Christophe Arbet-Engels , MD, PhD, as its new Chief Medical Officer. Dr. Arbet-Engels brings more than 25 years of experience to the company in strategic global drug discovery, development, and commercialization, as well as expertise in rare and orphan diseases.
Recent Financial Events and Second Quarter 2023 Results
- PIPE Financing Completed: In
May 2023 , X4 completed a private investment in public equity (PIPE) financing priced at-the-market, raising approximately$65 million in gross proceeds. Participants in the financing included both new and existing life science investors. - X4 Added to
Russell 3000® Index: X4 was added to the broad-marketRussell 3000 Index at the conclusion of the 2023 Russell indexes annual reconstitution in lateJune 2023 . The annual reconstitution captures the 4,000 largestU.S. stocks as ofApril 28, 2023 , ranking them by total market capitalization. Membership in theU.S. all-capRussell 3000 Index remains in place for one year. - Completed a
$115 million Debt Facility with Hercules Capital: Subsequent to the end of the second quarter, in earlyAugust 2023 , X4 announced an expanded$115 million debt facility with Hercules Capital, with an initial drawdown of$22.5 million at closing. - Cash, Cash Equivalents, & Restricted Cash: X4 had
$142.3 million in cash, cash equivalents, restricted cash, and marketable securities as ofJune 30, 2023 . Including the$22.5 million drawn down at the closing of the expanded debt facility with Hercules Capital, X4 believes it has sufficient funds to support company operations into 2025 and notes that this projected runway does not include additional potential drawdowns from the debt facility nor the potential monetization of a Priority Review Voucher the company would expect to receive should mavorixafor be approved for WHIM syndrome in theU.S. - Research and Development (R&D) Expenses were
$15.6 million for the second quarter endedJune 30, 2023 as compared to$13.8 million for the comparable period in 2022. R&D expenses for the second quarter endedJune 30, 2023 included$1.1 million of certain non-cash expenses. - Selling, General, and Administrative Expenses (SG&A) were
$10.2 million for the second quarter endedJune 30, 2023 as compared to$6.7 million for the comparable period in 2022. SG&A expenses for the second quarter endedJune 30, 2023 included$1.0 million of certain non-cash expenses. - Net Loss: X4 reported a net loss of
$55.7 million for the second quarter endedJune 30, 2023 , as compared to$21.2 million for the comparable period in 2022. Net losses in the current period include$29.9 million of non-cash adjustments to the fair value of the Company’s Class C warrants, which are classified as a liability and are adjusted to fair value each reporting period. Net losses also included$2.1 million of stock-based compensation expense.
Conference Call and Webcast
X4 will host a conference call and webcast today at
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of applicable securities laws, including the Private Securities Litigation Reform Act of 1995, as amended. These statements may be identified by the words “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “target,” or other similar terms or expressions that concern X4's expectations, strategy, plans, or intentions. Forward-looking statements include, without limitation, statements regarding the clinical development and therapeutic potential of mavorixafor for the treatment of WHIM syndrome, chronic neutropenic disorders and other potential indications; expectations regarding timing for reporting data from ongoing clinical studies or the initiation of future clinical trials, including the timing of reporting additional data from X4’s ongoing Phase 2 trial of mavorixafor in certain chronic neutropenic disorders and the timing of commencing a Phase 3 trial; anticipated regulatory progress, including the submission of a New Drug Application for mavorixafor in WHIM syndrome and the timing thereof; expectations regarding the commercial potential of mavorixafor; estimated market opportunities, including estimated initial target population for mavorixafor within the
(Tables Follow)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) |
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Three Months Ended | Six Months Ended | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | $ | 15,601 | $ | 13,821 | $ | 37,664 | $ | 27,934 | ||||||||
Selling, general and administrative | 10,204 | 6,749 | 17,445 | 14,413 | ||||||||||||
Gain on sale of non-financial asset | — | — | — | (509 | ) | |||||||||||
Total operating expenses | 25,805 | 20,570 | 55,109 | 41,838 | ||||||||||||
Loss from operations | (25,805 | ) | (20,570 | ) | (55,109 | ) | (41,838 | ) | ||||||||
Other expense, net | (29,892 | ) | (638 | ) | (24,604 | ) | (1,312 | ) | ||||||||
Loss before provision for income taxes | (55,697 | ) | (21,208 | ) | (79,713 | ) | (43,150 | ) | ||||||||
Provision for income taxes | 15 | 4 | 19 | 27 | ||||||||||||
Net loss | (55,712 | ) | (21,212 | ) | (79,732 | ) | (43,177 | ) | ||||||||
Deemed dividend due to Class B warrant price reset | — | — | — | (2,259 | ) | |||||||||||
Net loss attributable to common stockholders | $ | (55,712 | ) | $ | (21,212 | ) | $ | (79,732 | ) | $ | (45,436 | ) | ||||
Net loss per share attributable to common stockholders- basic and diluted | $ | (0.33 | ) | $ | (0.60 | ) | $ | (0.51 | ) | $ | (1.31 | ) | ||||
Weighted average common shares outstanding-basic and diluted | 168,738 | 35,437 | 157,416 | 34,592 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) |
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Six Months Ended |
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2023 | 2022 | ||||||
Net loss | $ | (79,732 | ) | $ | (43,177 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities | 29,633 | 4,083 | |||||
Changes in operating assets and liabilities | 2,162 | 391 | |||||
Net cash used in operating activities | (47,937 | ) | (38,703 | ) | |||
Net cash used in investing activities | (4,893 | ) | (60 | ) | |||
Net cash provided by financing activities | 67,214 | 4,609 | |||||
Impact of foreign exchange on cash, cash equivalents and restricted cash | 44 | (271 | ) | ||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 14,428 | (34,425 | ) | ||||
Cash, cash equivalents and restricted cash at beginning of period | 123,028 | 83,108 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 137,456 | $ | 48,683 |
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) |
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Current assets: | |||||
Cash and cash equivalents | $ | 136,428 | $ | 121,718 | |
Marketable securities | 4,881 | — | |||
Research and development incentive receivable | 820 | 1,152 | |||
Prepaid expenses and other current assets | 5,520 | 5,807 | |||
Total current assets | 147,649 | 128,677 | |||
Property and equipment, net | 868 | 1,104 | |||
17,351 | 17,351 | ||||
Right-of-use assets | 6,452 | 7,229 | |||
Other assets | 1,079 | 1,225 | |||
Total assets | $ | 173,399 | $ | 155,586 | |
Current liabilities: | |||||
Accounts payable | $ | 5,108 | $ | 7,777 | |
Accrued expenses | 15,231 | 12,034 | |||
Current portion of lease liability | 1,148 | 1,198 | |||
Current portion of long-term debt | 764 | 1,315 | |||
Total current liabilities | 22,251 | 22,324 | |||
Long-term debt, including accretion, net of discount | 31,836 | 32,304 | |||
Lease liabilities | 3,124 | 3,603 | |||
Warrant liability | 47,179 | 23,131 | |||
Other liabilities | 1,474 | 173 | |||
Total liabilities | 105,864 | 81,535 | |||
Total stockholders' equity | 67,535 | 74,051 | |||
Total liabilities and stockholders' equity | $ | 173,399 | $ | 155,586 | |
Contacts:
Managing Director,
daniel@lifesciadvisors.com
(617) 430-7576
bwhelan@lifescicomms.com
Source: X4 Pharmaceuticals