Mustang Bio Reports Second Quarter 2019 Financial Results and Recent Corporate Highlights

Company Release - 8/9/2019 4:05 PM ET

NEW YORK, Aug. 09, 2019 (GLOBE NEWSWIRE) -- Mustang Bio, Inc. (“Mustang”) (NASDAQ: MBIO), a clinical-stage biopharmaceutical company focused on translating today’s medical breakthroughs in cell and gene therapies into potential cures for hematologic cancers, solid tumors and rare genetic diseases, today announced financial results and recent corporate highlights for the second quarter ended June 30, 2019.

Manuel Litchman, M.D., President and Chief Executive Officer of Mustang, said, “The second quarter of 2019 marked the exciting New England Journal of Medicine publication of positive Phase 1/2 data from our partner, St. Jude Children’s Research Hospital (St. Jude), which demonstrated the curative potential of MB-107, a lentiviral gene therapy for X-linked severe combined immunodeficiency (XSCID). We look forward to transferring the MB-107 IND from St. Jude to Mustang in the fourth quarter of this year. Additionally, we are delighted that the U.S. Food and Drug Administration (FDA) accepted our first Investigational New Drug (IND) application to initiate a multi-center Phase 1/2 clinical trial of MB-102 (CD123 CAR T) in acute myeloid leukemia (AML), blastic plasmacytoid dendritic cell neoplasm (BPDCN) and high-risk myelodysplastic syndrome (MDS).”

Dr. Litchman continued, “Having raised a total of $69 million in the first half of 2019, we look forward to continuing to advance the development of our gene and CAR T cell therapy product candidates in the second half of 2019 and potentially reporting additional CAR T data in the fourth quarter.”

Financial Results:

  • As of June 30, 2019, Mustang’s cash, cash equivalents, short-term investments (certificates of deposit) and restricted cash totaled $83.1 million, compared to $41.1 million as of March 31, 2019 and $34.6 million as of December 31, 2018, an increase of $42.0 million for the quarter and an increase of $48.5 million year-to-date.
  • Research and development expenses were $6.8 million for the second quarter of 2019, compared to $3.6 million for the second quarter of 2018. Non-cash, stock-based compensation expenses included in research and development were $0.3 million for second quarter of 2019, compared to $0.6 million for the second quarter of 2018.
  • Research and development expenses from license acquisitions totaled $0.2 million for the second quarter of 2019, compared to $0 million for the second quarter of 2018.
  • General and administrative expenses were $3.2 million for the second quarter of 2019, compared to $1.7 million for the second quarter of 2018. Non-cash, stock-based compensation expenses included in general and administrative expenses were $1.6 million for the second quarter of 2019, compared to $0.4 million for the second quarter of 2018.
  • Net loss attributable to common stockholders was $10.4 million, or $0.29 per share, for the second quarter of 2019, compared to $5.1 million, or $0.19 per share, for the second quarter of 2018.

Recent Corporate Highlights:

  • In April 2019, Mustang announced that it had entered into a $20 million debt financing agreement with Horizon Technology Finance Corporation. Fifteen million of the $20 million loan was funded upon closing. The remaining $5 million may be funded upon Mustang achieving certain predetermined milestones. In connection with the debt financing, Mustang issued Horizon warrants to purchase up to 288,184 shares of its common stock at an exercise price of $3.47 per share.
  • Also in April 2019, the New England Journal of Medicine published St. Jude data from a Phase 1/2 clinical trial of a lentiviral gene therapy for the treatment of newly diagnosed infants under two years old with XSCID. Data demonstrated that the lentiviral gene therapy achieved normalization of T-cell numbers in all eight newly diagnosed infants with XSCID to date and disseminated infections resolved completely in all affected infants. Seven of the eight infants treated have developed normal IgM levels to date. Four of those seven infants have discontinued monthly infusions of intravenous immunoglobulin (IVIG) therapy to date. Three of those four infants who discontinued monthly IVIG infusions have responded to vaccines to date.
  • In May 2019, Mustang completed an underwritten public offering, including a full over-allotment option exercise, that raised gross proceeds of $31.6 million, excluding underwriting discounts, commissions and other offering-related expenses.
  • Also in May 2019, the FDA granted Orphan Drug Designation to MB-108 (oncolytic virus C134) for the treatment of malignant glioma, a type of brain cancer with a median survival of less than 18 months.
  • In July 2019, the FDA granted Orphan Drug Designation to MB-102 (CD123 CAR T) for the treatment of AML.
  • In August 2019, Mustang announced that the FDA had approved its IND application to initiate a multi-center Phase 1/2 clinical trial of MB-102 (CD123 CAR T) in AML, BPDCN and high-risk MDS.

About Mustang Bio
Mustang Bio, Inc. (“Mustang”) is a clinical-stage biopharmaceutical company focused on translating today’s medical breakthroughs in cell and gene therapies into potential cures for hematologic cancers, solid tumors and rare genetic diseases. Mustang aims to acquire rights to these technologies by licensing or otherwise acquiring an ownership interest, to fund research and development, and to outlicense or bring the technologies to market. Mustang has partnered with top medical institutions to advance the development of CAR T and CRISPR/Cas9-enhanced CAR T therapies across multiple cancers, as well as a lentiviral gene therapy for X­SCID. Mustang is registered under the Securities Exchange Act of 1934, as amended, and files periodic reports with the U.S. Securities and Exchange Commission. Mustang was founded by Fortress Biotech, Inc. (NASDAQ: FBIO). For more information, visit www.mustangbio.com.

Forward‐Looking Statements
This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Such statements include, but are not limited to, any statements relating to our growth strategy and product development programs and any other statements that are not historical facts. Forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock value. Factors that could cause actual results to differ materially from those currently anticipated include: risks relating to our growth strategy; our ability to obtain, perform under and maintain financing and strategic agreements and relationships; risks relating to the results of research and development activities; risks relating to the timing of starting and completing clinical trials; uncertainties relating to preclinical and clinical testing; our dependence on third-party suppliers; our ability to attract, integrate and retain key personnel; the early stage of products under development; our need for substantial additional funds; government regulation; patent and intellectual property matters; competition; as well as other risks described in our SEC filings. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required by law.

Company Contacts:
Jaclyn Jaffe and William Begien
Mustang Bio, Inc.
(781) 652-4500
ir@mustangbio.com

Investor Relations Contact:
Daniel Ferry
LifeSci Advisors, LLC
(617) 535-7746
daniel@lifesciadvisors.com

Media Relations Contact:
Tony Plohoros
6 Degrees
(908) 940-0135
tplohoros@6degreespr.com  


MUSTANG BIO, INC.
Condensed Balance Sheets
 ($ in thousands, except for share and per share amounts)

    
 June 30, December 31,
  2019   2018 
 (Unaudited)  
ASSETS   
Current Assets:   
Cash and cash equivalents$  82,634  $  16,469 
Short-term investments (certificates of deposit)   -      17,604 
Other receivables - related party   128     - 
Prepaid expenses and other current assets   660     1,052 
Total current assets   83,422     35,125 
    
Property, plant and equipment, net   6,513     6,465 
Fixed assets - construction in process   699     393 
Restricted cash   500     500 
Other assets   250     271 
Operating lease right-of-use asset, net   1,241     - 
Total Assets$   92,625   $   42,754  
    
LIABILITIES AND STOCKHOLDERS' EQUITY   
Current Liabilities:   
Accounts payable and accrued expenses$  5,452  $  5,381 
Payables and accrued expenses -  related party   759     236 
Operating lease liabilities - short-term   157     - 
Total current liabilities   6,368     5,617 
    
Deferred rent payable   -     741 
Notes payable   12,951     - 
Operating lease liabilities - long-term   1,862     - 
Total Liabilities   21,181      6,358  
    
Commitments and Contingencies   
    
Stockholders' Equity   
Preferred stock ($0.0001 par value), 2,000,000 shares authorized, 250,000 shares of Class A preferred stock issued and outstanding as of June 30, 2019 and December 31, 2018        
Common Stock ($0.0001 par value), 50,000,000 shares authorized   
Class A common shares, 862,392 and 1,000,000 shares issued and outstanding as of June 30, 2019, and December 31, 2018, respectively       
Common shares,  39,454,316 and 26,610,183 shares issued and outstanding as of June 30, 2019, and December 31, 2018, respectively   4     3 
Common stock issuable, 0 and 709,314 shares as of June 30, 2019, and December 31, 2018, respectively    -     2,085 
Additional paid-in capital   170,522     113,378 
Accumulated deficit   (99,082)    (79,070)
Total Stockholders’ Equity   71,444      36,396  
Total Liabilities and Stockholders’ Equity$   92,625   $   42,754  

 

MUSTANG BIO, INC.
Condensed Statements of Operations
 ($ in thousands, except for share and per share amounts)
(Unaudited)

         
  For the three months ended June 30,  For the six months ended June 30, 
  2019 2018 2019 2018
Revenue - related party $  -   $  -   $  -   $  50 
         
Operating expenses:        
Research and development    6,823     3,557     13,783     7,849 
Research and development – licenses acquired    200     -     650     75 
General and administrative    3,189     1,683     5,533     3,793 
Total operating expenses    10,212     5,240     19,966     11,717 
Loss from operations    (10,212)    (5,240)    (19,966)    (11,667)
         
Other income (expense)        
Interest income    387     147     539     293 
Interest expense     (574)    -     (585)    - 
Total other income (expense)    (187)    147     (46)    293 
Net Loss $   (10,399) $   (5,093) $   (20,012) $   (11,374)
         
Net loss per common share outstanding, basic and diluted $  (0.29) $  (0.19) $  (0.62) $  (0.43)
         
Weighted average number of common shares outstanding, basic and diluted    36,306,710     27,087,918     32,149,352     26,731,616 

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Source: Mustang Bio, Inc.