UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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): November 12, 2019  

Molecular Templates, Inc.
(Exact Name of Registrant as Specified in Charter)

Delaware001-3297994-3409596
(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification Number)

 

9301 Amberglen Blvd, Suite 100, Austin, TX 78729
(Address of Principal Executive Offices) (Zip Code)

(512) 869-1555
(Registrant's telephone number, including area code)


(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))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §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. [   ]

 

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

 

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.001 Par Value Per ShareMTEMThe Nasdaq Capital Market
 
 

Item 2.02. Results of Operations and Financial Condition.

On November 12, 2019, Molecular Templates, Inc. (the “Company”) announced its financial results for the third quarter of 2019 ended September 30, 2019. The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information contained in this Item 2.02 and in the press release furnished as Exhibit 99.1 to this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. The information contained in this Item 2.02 and in the press release furnished as Exhibit 99.1 to this current report on Form 8-K shall not be incorporated by reference into any filing with the U.S. Securities and Exchange Commission made by the Company whether made before or after the date hereof, regardless of any general incorporation language in such filing.


Item 9.01. Financial Statements and Exhibits.

Exhibit 99.1. Press release dated November 12, 2019


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.

 Molecular Templates, Inc.
   
  
Date: November 12, 2019By: /s/ Eric E. Poma, Ph.D.        
  Eric E. Poma, Ph.D.
  Chief Executive Officer
  

EdgarFiling

EXHIBIT 99.1

Molecular Templates, Inc. Reports Third Quarter 2019 Financial Results

AUSTIN, Texas, Nov. 12, 2019 (GLOBE NEWSWIRE) -- Molecular Templates, Inc. (Nasdaq: MTEM, “Molecular,” “Molecular Templates” or “MTEM”), a clinical-stage biopharmaceutical company focused on the discovery and development of the company’s proprietary engineered toxin bodies (ETBs), which are differentiated, targeted, biologic therapeutics for cancer, today reported financial results for the third quarter of 2019. As of September 30, 2019, MTEM’s cash and investments totaled $51.4 million, and is expected to fund operations through 2020.

“So far in 2019, we have reported Phase I/Ib data for MT-3724, started three Phase II studies for MT-3724, initiated a Phase I study for MT-5111, and our partner Takeda is initiating a Phase I study for TAK-169,” said Eric Poma, Ph.D., Molecular Templates’ Chief Executive and Scientific Officer. “We expect to provide study updates on the three ongoing MT-3724 Phase II studies and the MT-5111 Phase I study by the end of the year and continue to advance our pipeline of both clinical and preclinical stage programs into 2020.”

Company Highlights and Upcoming Milestones
             
TAK-169 (CD38-targted ETB)

MT-3724 (CD20-targeted ETB)

MT-5111 (HER2-targeted ETB)

Research

Takeda Multi-Target Collaboration

Investor Activities

Financial Results

The net loss attributable to common shareholders for the third quarter of 2019 was $38.2 million, or $1.03 per basic and diluted share. This compares with a net loss attributable to common shareholders of $5.2 million, or $0.19 per basic and diluted share, for the same period in 2018.

Revenues for the third quarter of 2019 were $3.6 million, compared to $6.8 million for the same period in 2018. Revenues for the third quarter of 2019 were comprised of revenues from collaborative research and development agreements with Takeda, and grant revenue from CPRIT. Total research and development expenses for the third quarter of 2019 were $15.2 million, compared with $8.3 million for the same period in 2018. Total general and administrative expenses for the third quarter of 2019 were $4.5 million, compared with $3.5 million for the same period in 2018. In the third quarter, there was also a non-cash impairment charge of $22.1 million relating to the Company’s legacy program, Evofosfamide.  Specifically, loss on impairment of in-process research and development for the third quarter of 2019 was $22.1 million, compared to no loss on impairment of in-process research and development for the same period in 2018. The impairment charge related entirely to this legacy program, which the Company acquired from Threshold Pharmaceuticals in 2017, and is unrelated to the Company’s current ETB technology and related pipeline programs.

About Molecular Templates

Molecular Templates is a clinical stage biopharmaceutical company focused on the discovery and development of differentiated, targeted, biologic therapeutics for cancer. We believe our proprietary biologic drug platform technology, referred to as engineered toxin bodies, or ETBs, provides a differentiated mechanism of action that may address some of the limitations associated with currently available cancer therapeutics. ETBs utilize a genetically engineered form of Shiga-like Toxin A subunit, or SLTA, a ribosome inactivating bacterial protein, that can be targeted to specifically destroy cancer cells.  Additional information about Molecular Templates can be obtained at http://www.mtem.com.

Forward-Looking Statements

This press release contains forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 (the “Act”). Molecular Templates disclaims any intent or obligation to update these forward-looking statements, and claims the protection of the Act’s Safe Harbor for forward-looking statements.  All statements, other than statements of historical facts, included in this press release regarding strategy, future operations, future financial position, future revenue, projected expenses, prospects, plans and objectives of management are forward-looking statements. 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 Molecular Templates may identify forward-looking statements.  Examples of such statements include, but are not limited to, statements relating to the development of the Company’s lead program, MT-3724, and the replication of  monotherapy activity in the Phase II studies with MT-3724; the expected timing of submitting various IND applications, conducting studies, dosing patients, and reporting additional updates on studies or data from various studies; and the Company’s belief that its proprietary biologic drug platform technology, or ETBs, provides for a differentiated mechanism of action that may address some of the limitations associated with currently available cancer therapeutics.

Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual events or results may differ materially from those discussed in the forward-looking statements as a result of various factors including, but not limited to, the uncertainties inherent in the preclinical and clinical development process; whether the Company’s cash resources will be sufficient to fund its continuing operations for the periods and/or trials anticipated; the ability of the Company to protect its intellectual property rights; and legislative, regulatory, political and economic developments, as well as those risks identified under the heading “Risk Factors” in the Company’s filings with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof, and the Company specifically disclaims any obligation to update any forward-looking statement, whether because of new information, future events or otherwise.

Contact:
Adam Cutler
Chief Financial Officer
adam.cutler@mtem.com
862-204-4006     


Molecular Templates, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)

 Three Months Ended
September 30,
  Nine Months Ended
September 30,
 
 2019  2018  2019  2018 
Research and development revenue - from related party$2,903  $1,914  $14,527  $3,009 
Research and development revenue - other 284   117   284   197 
Grant revenue 431   4,721   1,262   5,395 
Total revenue 3,618   6,752   16,073   8,601 
Operating expenses:               
Research and development 15,249   8,290   33,946   22,640 
General and administrative 4,509   3,538   14,049   10,165 
Loss on impairment of in-process research and development 22,123      22,123    
Total operating expenses 41,881   11,828   70,118   32,805 
Loss from operations 38,263   5,076   54,045   24,204 
Interest and other income, net 396   107   1,449   307 
Interest and other expense, net (353)  (279)  (947)  (672)
Change in fair value of warrant liabilities 1   4   3   916 
Net loss attributable to common shareholders$38,219  $5,244  $53,540  $23,653 
Net loss per share attributable to common shareholders:               
Basic and diluted$1.03  $0.19  $1.45  $0.87 
Weighted average number of shares used in net loss per share calculations:               
Basic and diluted 36,937,912   27,680,307   36,832,966   27,246,667 
                


Molecular Templates, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)

 September 30,
2019 (unaudited)
  December 31,
2018
 
ASSETS       
Current assets:       
Cash and cash equivalents$15,268  $87,721 
Marketable securities, current 36,147   10,234 
Prepaid expenses 2,340   2,244 
Grants revenue receivable 5,591   4,329 
Accounts receivable from related party    240 
In-process research and development - held for sale 4,500   26,623 
Other current assets 300   95 
Total current assets 64,146   131,486 
Operating lease right-of-use assets, non-current 10,397    
Property and equipment, net 13,884   6,851 
Other assets 4,735   1,821 
   Total assets$93,162  $140,158 
LIABILITIES AND STOCKHOLDERS’ EQUITY       
Current liabilities:       
Accounts payable$1,414  $780 
Accrued liabilities 9,105   5,357 
Deferred revenue, current 11,956   26,231 
Other current liabilities 1,623   141 
Total current liabilities 24,098   32,509 
Deferred revenue, non-current 1,236   2,670 
Long-term debt, non-current, net 3,001   3,254 
Operating lease liabilities, non-current 10,573    
Other liabilities 1,238   819 
Total liabilities 40,146   39,252 
Commitments and contingencies (Note 9)       
Stockholders’ equity       
Common stock, $0.001 par value:       
Authorized: 150,000,000 shares; issued and outstanding: 36,954,510 shares at September 30, 2019 and 36,736,012 shares at December 31, 2018 37   37 
Additional paid-in capital 201,203   195,573 
Accumulated other comprehensive income 20    
Accumulated deficit (148,244)  (94,704)
Total stockholders’ equity 53,016   100,906 
   Total liabilities and stockholders’ equity$93,162  $140,158