alt-8k_20200513.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 13, 2020

 

ALTIMMUNE, INC.

(Exact name of registrant as specified in its charter)

 

 

 

 

 

 

Delaware

 

001-32587

 

20-2726770

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

 

 

 

 

910 Clopper Road, Suite 201S

Gaithersburg, Maryland

 

 

 

20878

(Address of principal executive offices)

 

 

 

(Zip Code)

 

 

 

 

 

Registrant’s telephone number including area code: (240) 654-1450

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, par value $0.0001 per share

ALT

The NASDAQ Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

 



 

Item 2.02

Results of Operations and Financial Condition

On May 13, 2020, Altimmune, Inc. (the “Company”) issued a press release announcing the Company’s financial results for its fiscal quarter ended March 31, 2020. A copy of this press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information included in this Current Report on Form 8-K (including Exhibit 99.1 hereto) that is furnished pursuant to this Item 2.02 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. In addition, the information included in this Current Report on Form 8-K (including Exhibit 99.1 hereto) that is furnished pursuant to this Item 2.02 shall not be incorporated by reference into any filing of the Registrant, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference into such filing.

 

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits

 

 

 

 

No.

  

Description

 

 

99.1

  

Press Release of Altimmune, Inc. dated May 13, 2020


 

 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

ALTIMMUNE, INC.

 

 

By:

 

/s/ Will Brown

 

 

Name: Will Brown

 

 

Title: Chief Financial Officer

Dated May 13, 2020

 

alt-ex991_6.htm

 

Exhibit 99.1

Altimmune Announces First Quarter 2020 Financial Results and Provides a Business Update

 

 

GAITHERSBURG, Maryland, May 13, 2020 -- Altimmune, Inc. (Nasdaq: ALT), a clinical-stage biopharmaceutical company, today announced financial results for the quarter ended March 31, 2020 and provided a business update.

 

“Throughout 2020 we have put significant effort into developing our pipeline; from advancing our vaccine candidates, AdCOVID and Nasoshield, to IND enabling studies and manufacturing for ALT-801 and HepTcell,” said Vipin K. Garg, Ph.D., President and Chief Executive Officer. “Based on our progress, we are poised for a data-rich year, with the expected initiation of NasoShield, ALT-801 and AdCOVID clinical trials.”

 

Recent Highlights

Preclinical testing commences on COVID-19 vaccine candidate, AdCOVID

In collaboration with the University of Alabama at Birmingham (UAB), we have commenced preclinical testing of candidates for our COVID-19 vaccine, AdCOVID. AdCOVID is being developed as a single dose, intranasal vaccine that is designed to activate multiple arms of the immune system including humoral (antibodies), cellular (T-cell) and mucosal immunity.

Our platform vaccine technology is ideally suited for pandemic use and based on Phase 2 clinical data obtained with our influenza vaccine candidate, NasoVAX, AdCOVID is expected to meet or exceed key attributes of the World Health Organization’s (WHO) preferred Target Product Profile (TPP) for a COVID-19 vaccine:

WHO Preferred Attribute (TPP)1

AdCOVID Expected Attribute

(based on NasoVAX data)

Single dose

Seroprotection with single dose administration

Rapid onset of protection

Strong serological response at 2 weeks

Immunity lasting at least 1 year

Serological response unchanged at 400 days

Non-injected

Intranasal administration

Temperature stability

At least 3 months at 25oC in a liquid formulation

Ability to provide at low cost

High yield, scalable manufacturing process

1https://www.who.int/blueprint/priority-diseases/key-action/WHO_Target_Product_Profiles_for_COVID-19_web.pdf

It is expected that the studies at UAB will confirm the broad and robust immune response of the vaccine technology and identify the best vaccine candidate for clinical development. The


 

Company is finalizing manufacturing plans, and intends to conduct a Phase 1 clinical trial of AdCOVID in Q4 of this year.

NasoShield Phase 1b trial expected to begin in June

The Phase 1b clinical trial of Nasoshield, our single-dose intranasal anthrax vaccine candidate, is expected to commence in June of this year. A data readout is expected in November 2020 and will inform BARDA’s decision to exercise the remaining options on the contract. The NasoShield program is funded through a contract with BARDA (HHSO100201600008C), with a total potential value of $133.7 million if all options in the contact are exercised. NasoShield is the only single dose vaccine candidate for anthrax currently funded by BARDA.  NasoShield’s intranasal route of administration allows for administration without injections and its stability at room temperature may permit distribution without cold chain.

ALT-801 manufacturing commences

We have commenced manufacturing of the clinical trial material for ALT-801, our dual GLP-1/glucagon receptor agonist for the treatment of non-alcoholic steatohepatitis (NASH). The combination of GLP-1 and glucagon agonism within the same molecule is ideal for treating obesity, the basic underlying cause of NASH. In animal studies, ALT-801 resulted in more than twice the weight loss of semaglutide and greater improvement in histologic measures of fatty liver, liver inflammation, and fibrosis. The Company is currently completing toxicology studies that will enable the commencement of clinical trials in Q4 2020.

HepTcell manufacturing completed, IND filing expected next week

We have completed manufacturing for HepTcell, our synthetic peptide immunotherapeutic candidate designed to break immune tolerance in patients with chronic hepatitis B (HBV) infection. The completion of this activity enables the filing of our IND, which is expected next week. The planned Phase 2 trial is a 6-month course of treatment in chronically infected HBV patients in both North America and Europe. Considering this is a multi-site, multi-national study with a long duration of treatment, the Company is actively monitoring the COVID-19 situation and will determine the actual start date of this trial once more information becomes available.

Diane Jorkosky, M.D. joins Altimmune Board of Directors

Former Pfizer and GSK executive, Diane Jorkasky, M.D., joined Altimmune’s Board of Directors on May 11, 2020. Dr. Jorkasky’s experience in the biopharmaceutical industry, academia and as a physician bring valuable experience to Altimmune.

 

 


 

Financial Results for the Quarter Ended March 31, 2020

The Company had cash, cash equivalents and short-term investments of $33 million at March 31, 2020.

The Company’s income tax receivable increased $3.4 million primarily due to an expected cash tax refund claim of $2.9 million with the Internal Revenue Service reflecting a partial refund of its 2016 tax liability by carrying back its 2019 and 2018 net operating losses. Additionally, the Company estimates it will claim $0.36 million related to net operating losses arising during the three months ended March 31, 2020. The expected refund claims are due to the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) passed on March 27, 2020 which made temporary changes regarding the utilization and carry back of net operating losses.

Revenue was $2.2 million for the quarter ended March 31, 2020 compared to $3 million in the prior year period. The change was due primarily to a decrease in billings under the Company’s U.S. government contracts due to timing of manufacturing and clinical trials for the NasoShield program.

Research and development expenses were $7.2 million for the quarter ended March 31, 2020 compared to $3.2 million in the prior year period. The increase was primarily attributable to development costs for IND-enabling preclinical studies for ALT-801; an increase in the contingent liability for stock-based milestone payments associated with the acquisition of ALT-801; and an increase in employee compensation and professional services. These increases were offset by decreased spend for NasoShield.

General and administrative expenses were $2.3 million for the quarter ended March 31, 2020 compared to $2.1 million in the prior year period. The increase is attributable to higher employee compensation and legal costs.   

Other income (expense) was $0.2 million for the quarter ended March 31, 2020 compared to $0.2 million in the prior year. Income for both periods is primarily attributable to interest earned on cash and investment balances.

Income tax benefit was $3.2 million for the three months ended March 31, 2020, as compared to zero for the same period in 2019. The increase is attributable to the income tax refund claims described above related to the “CARES Act”.

Net loss attributed to common stockholders for the quarter ended March 31, 2020 was $3.9 million, or ($0.26) per share, compared to $2.6 million in the prior year, or ($0.27) per share. The difference in net loss is primarily attributable to higher research and development expenses, lower revenue, offset by an increase to income tax benefit.


 

Conference Call Information

Altimmune will host a conference call to discuss the company’s first quarter results and other business information.

Date:

 

Thursday, May 14, 2020

Time:

 

8:30 am Eastern Time

Domestic:

 

855-327-6837

International:

 

631-891-4304

Conference ID:

 

10009533

Webcast:

 

http://public.viavid.com/index.php?id=139687

Following the conclusion of the call, the webcast will be available for replay on the Investor Relations page of the Company’s website at www.altimmune.com. The company has used, and intends to continue to use, the investor relations portion of its website as a means of disclosing material non-public information and for complying with disclosure obligations under Regulation FD.

 

About Altimmune

Altimmune is a clinical stage biopharmaceutical company focused on developing treatments for liver disease, immune modulating therapies and vaccines. Our diverse pipeline of product candidates includes next generation peptide therapeutics for NASH (ALT-801) and chronic hepatitis B (HepTcell™), conjugated immunostimulants for the treatment of cancer (ALT-702) and intranasal vaccines (NasoVAX™, NasoShield™ and AdCOVIDTM). For more information on Altimmune, please visit www.altimmune.com.

Forward-Looking Statement 

Any statements made in this press release relating to future financial or business performance, conditions, plans, prospects, trends, or strategies and other financial and business matters, including without limitation, statements regarding the impact of COVID-19 on our business operations, clinical trials and results of operations, the timing of key milestones for our clinical assets, the development of our AdCOVID vaccine product candidate and initiation of animal testing in Q2 2020 and a Phase 1 clinical study in Q4 2020 for AdCOVID, the filing of the IND for ALT-801 in 2020, the initiation of a Phase 1 clinical study in Q4 2020 and receipt of data from this clinical study in 2021, the initiation of a NasoShield Phase 1b clinical study in June 2020 and receipt of data from this clinical study November 2020, the filing of the IND for HepTcell in 2020, and the prospects for regulatory approval, commercializing or selling any product or drug candidates, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, when or if used in this press release, the words “may,”


 

“could,” “should,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “predict” and similar expressions and their variants, as they relate to Altimmune, Inc. (the “Company”) may identify forward-looking statements. The Company cautions that these forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time. Important factors that may cause actual results to differ materially from the results discussed in the forward looking statements or historical experience include risks and uncertainties, including risks relating to: potential impacts due to the COVID-19 pandemic such as delays in regulatory review, manufacturing and supply chain interruptions, adverse effects on healthcare systems and disruption of the global economy, the reliability of the results of the studies relating to human safety and possible adverse effects resulting from the administration of the Company’s product candidates; funding delays, reductions in or elimination of U.S. government funding and/or non-renewal of expiring funding under the Company’s agreement with Biomedical Advanced Research and Development Authority (“BARDA”), or the Company’s contract with the National Institutes of Allergy and Infectious Diseases (“NIAID”); the Company’s ability to satisfy certain technical milestones under the Company’s contracts with BARDA and NIAID that would entitle the Company to receive additional funding over the period of the agreement; the preservation of the Company’s net operating loss carryforwards; delays caused by third parties challenging government contracts awarded to the Company; the receipt of future potential payments under government contracts or grants; the Company’s ability to identify potential future government contracts or grant awards; the Company’s ability to obtain potential regulatory approvals on the timelines anticipated, or at all; the Company’s ability to obtain additional patents or extend existing patents on the timelines anticipated, or at all; the Company’s ability to identify and consummate potential future strategic partnerships or business combinations; the Company’s ability to expand its pipeline of products and the success of future product advancements, including the success of future clinical trials, and the Company’s ability to commercialize its products; the Company’s anticipated financial or operational results; the Company’s ability to obtain additional capital resources; unforeseen safety and efficacy issues; breaches of data privacy, or disruptions in the Company’s information technology systems; and the Company’s ability to continue to satisfy the listing requirements of the NASDAQ Global Market. Further information on the factors and risks that could affect the Company's business, financial conditions and results of operations are contained in the Company’s filings with the U.S. Securities and Exchange Commission, including under the heading “Risk Factors” in the Company’s annual reports on Form 10-K and quarterly reports on Form 10-Q filed with the SEC, which are available at www.sec.gov.

 

Contacts:

Will BrownAshley R. Robinson

Chief Financial Officer LifeSci Advisors, LLC

Phone: 240-654-1450617-430-7577

wbrown@altimmune.comarr@lifesciadvisors.com


 

ALTIMMUNE, INC.

CONSOLIDATED BALANCE SHEETS

 

 

 

March 31, 2020

 

 

December 31, 2019

 

 

 

(unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

11,275,214

 

 

$

8,962,686

 

Restricted cash

 

 

34,174

 

 

 

34,174

 

Total cash, cash equivalents and restricted cash

 

 

11,309,388

 

 

 

8,996,860

 

Short-term investments

 

 

21,644,214

 

 

 

28,277,386

 

Accounts receivable

 

 

1,994,736

 

 

 

1,021,179

 

Tax refund receivable

 

 

3,989,728

 

 

 

629,096

 

Prepaid expenses and other current assets

 

 

698,905

 

 

 

470,228

 

Total current assets

 

 

39,636,971

 

 

 

39,394,749

 

Property and equipment, net

 

 

1,062,834

 

 

 

1,104,208

 

Right of use asset

 

 

680,826

 

 

 

698,321

 

Intangible assets, net

 

 

12,737,735

 

 

 

12,732,195

 

Other assets

 

 

114,764

 

 

 

128,547

 

Total assets

 

$

54,233,130

 

 

$

54,058,020

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

929,629

 

 

$

18,232

 

Accrued expenses and other current liabilities

 

 

5,115,694

 

 

 

3,904,767

 

Total current liabilities

 

 

6,045,323

 

 

 

3,922,999

 

Contingent consideration

 

 

4,500,000

 

 

 

2,750,000

 

Other long-term liabilities

 

 

1,791,190

 

 

 

1,864,875

 

Total liabilities

 

 

12,336,513

 

 

 

8,537,874

 

Commitments and contingencies (Note 13)

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock, $0.0001 par value; 200,000,000 shares authorized;

   15,359,644 and 15,312,381 shares issued; 15,359,502 and 15,312,167

   shares outstanding at March 31, 2020 and December 31, 2019,

   respectively

 

 

1,514

 

 

 

1,508

 

Additional paid-in capital

 

 

188,209,465

 

 

 

187,914,916

 

Accumulated deficit

 

 

(141,261,771

)

 

 

(137,376,122

)

Accumulated other comprehensive loss, net

 

 

(5,052,591

)

 

 

(5,020,156

)

Total stockholders’ equity

 

 

41,896,617

 

 

 

45,520,146

 

Total liabilities and stockholders’ equity

 

$

54,233,130

 

 

$

54,058,020

 

 



 

 

ALTIMMUNE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

 

 

 

For the Three Months Ended

March 31,

 

 

 

2020

 

 

2019

 

Revenue

 

$

2,212,694

 

 

$

2,955,592

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

 

7,187,531

 

 

 

3,217,671

 

General and administrative

 

 

2,331,917

 

 

 

2,066,482

 

Total operating expenses

 

 

9,519,448

 

 

 

5,284,153

 

Loss from operations

 

 

(7,306,754

)

 

 

(2,328,561

)

Other income (expense):

 

 

 

 

 

 

 

 

Interest expense

 

 

(1,885

)

 

 

(740

)

Interest income

 

 

151,569

 

 

 

185,246

 

Other income, net

 

 

25,542

 

 

 

46,749

 

Total other income, net

 

 

175,226

 

 

 

231,255

 

Net loss before income tax benefit

 

 

(7,131,528

)

 

 

(2,097,306

)

Income tax benefit

 

 

3,245,879

 

 

 

 

Net loss

 

 

(3,885,649

)

 

 

(2,097,306

)

Other comprehensive loss – unrealized loss on investments

 

 

(32,435

)

 

 

 

Comprehensive loss

 

$

(3,918,084

)

 

$

(2,097,306

)

Net loss

 

$

(3,885,649

)

 

$

(2,097,306

)

Deemed dividends

 

 

 

 

 

(452,925

)

Net loss attributed to common stockholders

 

$

(3,885,649

)

 

$

(2,550,231

)

Weighted-average common shares outstanding, basic and diluted

 

 

15,110,585

 

 

 

9,489,765

 

Net loss per share attributed to common stockholders, basic and diluted

 

$

(0.26

)

 

$

(0.27

)