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PDS Biotechnology Reports Second Quarter 2019 Financial Results And Provides Business Update
August 1, 2019 at 6:00 AM EDT

BERKELEY HEIGHTS, N.J., Aug. 01, 2019 (GLOBE NEWSWIRE) -- PDS Biotechnology Corporation (“PDS Biotechnology”) (Nasdaq: PDSB), a clinical-stage immuno-oncology company pioneering the development of novel multifunctional immunotherapeutic products, today announced its financial results for the second quarter ended June 30, 2019.

Q2 2019 and Recent Business Highlights

  • Signed Cooperative Research and Development Agreement (CRADA) with the National Cancer Institute to perform a Phase 2 clinical study of PDS0101 in combination with other immune-modulating agents in advanced HPV-related cancers;
  • Announced peer-reviewed publication in the Journal of Immunology supporting the novel mechanism of action of PDS’ proprietary Versamune® platform in cancer immunotherapy;
  • Granted U.S. and European patents for Versamune - GM-CSF combination to overcome tumor immune suppression; and
  • Appointed industry veteran Stephen Glover as Chairman of the Board.

“We have been working diligently over the past quarter to further validate our novel Versamune platform, which may have the ability to overcome critical mechanisms associated with ineffective immune responses leading to a superior anti-tumor effect. Our CRADA with the National Cancer Institute for a Phase 2 clinical study for PDS0101 and the peer-reviewed publication in the Journal of Immunology describing Versamune’s novel mechanism of action are evidence of the considerable progress we continue to make. Furthermore, the newly granted patents in the U.S. and Europe provides us with further protections around the Versamune platform, including our lead candidate, PDS0101,” commented Dr. Frank Bedu-Addo, President and Chief Executive Officer of PDS Biotechnology. “Looking ahead, we anticipate initiating three clinical studies for PDS0101 in the fourth quarter of this year and will provide additional updates over the coming months.  These studies include a planned phase 2 combination study to evaluate PDS0101 in combination with Keytruda® in the treatment of head and neck cancer, a phase 2 study to evaluate PDS0101 in advanced HPV associated cancers, and an anticipated registration trial to evaluate PDS0101 monotherapy in the treatment of high-grade cervical dysplasia.”

Second Quarter 2019 Financial Review

For the second quarter of 2019, net loss was approximately $(3.9) million, or $(0.75) per basic and diluted share, compared to a net loss of approximately $(0.6) million, or $(0.17) per basic and diluted share for the second quarter of 2018.

Research and development expenses totaled approximately $1.9 million for the second quarter of 2019, compared to approximately $0.2 million for the same period in 2018, an increase of 1017%. The increase of $1.7 million is primarily attributable to an increase in external expenses for clinical studies of $1.4 million and an increase of $0.3 million in personnel costs. 

For the second quarter of 2019, general and administrative expenses were approximately $2.4 million compared with approximately $0.4 million for the second quarter of 2018, an increase of 499%. The increase of $2.0 million is primarily attributable to increases of $0.5 million in personnel costs, $0.5 million in D&O insurance, $0.2 million for facilities expense, $0.2 million for professional fees, $0.3 million in legal fees and $0.3 million in other operating expenses.

Total operating expenses for the second quarter of 2019 were approximately $4.3 million, compared to total operating expenses of approximately $0.6 million for the same period in 2018, an increase of 653%.

As of June 30, 2019, the Company’s cash balance was approximately $21.7 million.

About PDS Biotechnology

PDS Biotechnology is a clinical stage immuno-oncology company with a growing pipeline of clinical-stage immunotherapies to treat various early-stage and late-stage cancers, including head and neck cancer, cervical, anal, prostate, breast and other cancers.

PDS Biotechnology’s lead product candidate, PDS0101 (Versamune®-HPV) is a proprietary clinical stage immunotherapeutic administered by subcutaneous injection being developed to treat HPV-associated cancers such as head and neck cancers and anal cancers, both of which are widely reported to be increasing in frequency over the last decade, as well as cervical, penile, vaginal and vulvar cancers and their pre-cancerous conditions. In a human Phase 1/2a clinical study, PDS0101 monotherapy demonstrated potent in-vivo induction of the critical phenotype of tumor-attacking killer (CD8) T-cells, and induction of memory T-cells. No dose-limiting toxicities were observed in this study, suggesting potential for a rare combination of potency and safety among immune-oncology therapeutics.

For additional information about PDS, please visit www.pdsbiotech.com.

Forward Looking Statements

This communication contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning PDS Biotechnology Corporation (the “Company”) and other matters. These statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs of the Company’s management, as well as assumptions made by, and information currently available to, management. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “may,” “will,” “should,” “would,” “expect,” “anticipate,” “plan,” “likely,” “believe,” “estimate,” “project,” “intend,” and other similar expressions among others. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: the ability of the Company to integrate Edge and PDS Biotechnology following the merger; the Company’s ability to protect its intellectual property rights; competitive responses to the completion of the merger; potential adverse reactions or changes to business relationships resulting from the completion of the merger; the Company’s ability to access capital markets, the timing for the Company to initiate three planned clinical trials for its lead asset, PDS0101; the successful implementation of the Company’s research and development programs and collaborations; the acceptance by the market of the Company’s product candidates, if approved; and other factors, including legislative, regulatory, political and economic developments not within the Company’s control. The foregoing review of important factors that could cause actual events to differ from expectations should not be construed as exhaustive and should be read in conjunction with statements that are included herein and elsewhere, including the risk factors included in the Company’s annual and periodic reports filed with the SEC. The forward-looking statements are made only as of the date of this press release and, except as required by applicable law, the Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

Media & Investor Relations Contact:

Tram Bui / Alexander Lobo
The Ruth Group
Phone: +1-646-536-7035 / +1-646-536-7037
Email: tbui@theruthgroup.com / alobo@theruthgroup.com

(Financial Statements to Follow)

PDS BIOTECHNOLOGY CORPORATION

Condensed ConsolidatedBalance Sheets

  June 30, 2019   December 31, 2018
ASSETS (unaudited)    
Current assets:      
Cash and cash equivalents $ 21,734,152     $ 103,695  
Prepaid expenses and other current assets   1,098,843       156,628  
Total current assets   22,832,995       260,323  
           
Property and equipment, net   368,987       29,508  
Intangible assets, net   1,223,000       41,692  
Right-to-use asset   1,233,894        
Other assets   145,470       12,800  
           
Total assets $ 25,804,346     $ 344,323  
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
LIABILITIES          
Current liabilities:          
Accounts payable $ 1,853,306     $ 1,412,951  
Accrued expenses   638,186       601,889  
Restructuring reserve   1,283,875        
Operating lease liability- short term   492,086        
Total current liabilities   4,267,453       2,014,840  
           
Noncurrent liability:          
Deferred tax liability   157,000        
Operating lease liability- long term   774,278        
Convertible promissory notes payable         30,000  
           
STOCKHOLDERS' EQUITY          
Preferred stock, 5,000,000 shares authorized at June 30, 2019 and December 31, 2018, 0 outstanding          
Common stock, $0.00033 par value, 75,000,000 shares authorized at June 30, 2019 and December 31, 2018, 5,177,487 shares and 3,417,187 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively   1,709       1,128  
Additional paid-in capital   38,686,233       19,311,529  
Accumulated deficit   (18,082,327 )     (21,013,174 )
Total stockholders' equity   20,605,615       (1,700,517 )
           
Total liabilities and stockholders' equity $ 25,804,346     $ 344,323  
               

 PDS BIOTECHNOLOGY CORPORATION 

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(Unaudited)

  Three Months Ended June 30,   Six Months Ended June 30,
  2019   2018   2019   2018
Operating expenses:              
Research and development expenses $ 1,886,934     $ 168,606     $ 2,916,937     $ 369,744  
General and administrative expenses   2,383,972       398,425       6,289,848       934,226  
                       
Total operating expenses   4,270,906       567,031       9,206,785       1,303,970  
                       
Loss from operations   (4,270,906 )     (567,031 )     (9,206,785 )     (1,303,970 )
                       
Other income (expense):                      
Gain on bargain purchase   209,449             11,939,331        
Interest income   175,605       4       198,907       10  
Interest expense         (804 )     (606 )     (1,763 )
                       
Net income (loss) and comprehensive income (loss)   (3,885,852 )     (567,831 )     2,930,847       (1,305,723 )
                       
Net income (loss) per share, basic   (0.75 )     (0.17 )     0.66       (0.41 )
Net income (loss) per share, diluted $ (0.75 )   $ (0.17 )   $ 0.52     $ (0.41 )
                       
Weighted average common shares outstanding, basic   5,175,837       3,338,214       4,466,025       3,170,804  
Weighted average common shares outstanding, diluted   5,175,837       3,328,214       5,677,359       3,170,804  

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Source: PDS Biotechnology Corporation