Aligos Therapeutics Reports Recent Business Progress and Fourth Quarter and Full Year 2023 Financial Results
Aligos Therapeutics, Inc. (ALGS) reported significant progress in their drug development pipeline for liver and viral diseases in 2023. The company raised $92 million in a private placement financing, completed Phase 2a enabling activities for ALG-055009, and presented promising antiviral activity for chronic hepatitis B. Financially, Aligos ended 2023 with $135.7 million in cash, with net losses decreasing compared to the previous year.
Positive
Aligos made significant advancements in their drug development pipeline for liver and viral diseases in 2023.
The company raised $92 million in a private placement financing to support their operations.
Aligos completed Phase 2a enabling activities for ALG-055009 and presented positive antiviral activity for chronic hepatitis B.
Financially, Aligos ended 2023 with $135.7 million in cash, with net losses decreasing compared to the previous year.
Negative
Net losses for the three months and year ended December 31, 2023, were still significant despite a decrease compared to the previous year.
Research and development expenses increased for the three months ended December 31, 2023, primarily due to third-party expenses.
General and administrative expenses also increased for the year ended December 31, 2023, mainly due to higher legal and patent attorney costs.
The financial results and business progress reported by Aligos Therapeutics, Inc. indicate a strategic positioning for the company's upcoming clinical trials and product development. The successful closing of a $92 million PIPE investment is a robust indicator of institutional confidence in the company's pipeline, particularly noting the focus on liver and viral diseases which are areas of high unmet medical need. The cash position of $135.7 million suggests a strong liquidity status, providing runway through the end of 2025 according to the company's projections.
However, an increase in net losses for the fourth quarter year-over-year, from $21.9 million to $27.9 million, raises concerns about the company's growing expenses despite a decrease in annual net loss from $96.0 million to $87.7 million. This decrease might reflect a strategic reallocation of resources from discontinued programs to more promising ones, such as ALG-055009 and ALG-000184. The focus on R&D is evident with the reported expenses, yet investors should monitor the balance between investment in innovation and the potential for returns on these investments.
Aligos Therapeutics' progress in its clinical pipeline, particularly with ALG-055009 and ALG-000184, is noteworthy. ALG-055009's potential as a THR-β agonist for MASH, a condition with limited treatment options, could represent a significant market opportunity. The completion of Phase 2a enabling activities and the anticipation of topline HERALD data by Q4 2024 could be a pivotal moment for the company. For ALG-000184, a small molecule CAM-E for chronic hepatitis B (CHB), the continuation of dosing in the Phase 1a/1b study and planned interim data presentations may offer early insights into its efficacy and safety profile.
Furthermore, the development of a pan-coronavirus protease inhibitor, ALG-097558, supported by NIAID, reflects the ongoing need for broad-spectrum antiviral therapies in the wake of the COVID-19 pandemic. This diversification of the pipeline could mitigate risk and enhance the company's potential market reach.
Aligos' strategic focus on liver and viral diseases taps into a significant global healthcare market with a growing demand for innovative treatments. The liver disease market, including NASH and hepatitis, is expected to grow substantially, driven by a rising prevalence of obesity and diabetes. Aligos' positioning with ALG-055009 and ALG-000184 could capitalize on this trend, provided the clinical outcomes are favorable. The company's visibility at major conferences like APASL, EASL and AASLD will be key for engaging the medical community and potential partners.
Additionally, the pan-coronavirus protease inhibitor program addresses a broader infectious disease market, which has gained heightened awareness and investment following the COVID-19 pandemic. The ongoing Phase 1 study and upcoming presentation at ECCMID could enhance Aligos' profile in the infectious disease space. The diverse portfolio addresses a range of markets, which may appeal to investors looking for biotech companies with multiple shots on goal.
03/12/2024 - 04:05 PM
SOUTH SAN FRANCISCO, Calif., March 12, 2024 (GLOBE NEWSWIRE) -- Aligos Therapeutics, Inc. (Nasdaq: ALGS, “Aligos”), a clinical stage biopharmaceutical company focused on developing novel therapeutics to address unmet medical needs in liver and viral diseases, today reported recent business progress and financial results for the fourth quarter and full year 2023.
“Last year we built the foundation for a critical 2024 by closing a $92 million PIPE from healthcare-dedicated institutional investors and successfully completing our Phase 2a enabling activities for ALG-055009,” stated Lawrence Blatt, Ph.D., MBA, Chairman & CEO of Aligos Therapeutics. “In addition, we presented unprecedented antiviral activity from our ALG-000184 program for chronic hepatitis B (CHB). With these important accomplishments in hand, we are well positioned to deliver important planned milestones in 2024, which include releasing topline data in subjects with metabolic dysfunction-associated steatohepatitis (MASH) in the ALG-055009 Phase 2a study (HERALD) and completing Phase 2 enabling activities for ALG-000184 by the end of the year. We look forward to sharing our achievements with our stakeholders throughout this year.”
Recent Business Progress
Aligos Portfolio of Drug Candidates
ALG-055009: Potential best-in-class small molecule THR-β agonist for MASH
Phase 2a enabling activities, including completion of supporting nonclinical/Phase 1 studies and manufacturing of drug supply, were completed The Phase 2a HERALD protocol was filed with the FDA in Q4 2023 First subject dosed expected in Q2 2024 and topline HERALD data anticipated in Q4 2024 ALG-000184: Potential best-in-class small molecule CAM-E for CHB
Dosing continues in the ongoing Phase 1a/1b ALG-000184-201 study, with multiple subjects now having been dosed for >1 year (total planned dosing duration is 96 weeks). Interim data readouts are planned to be presented this year at the following conferences: Asian Pacific Association for the Study of the Liver (APASL), European Association for the Study of the Liver (EASL), and American Association for the Study of Liver Diseases (AASLD) Phase 2 enabling activities, including regulatory interactions and drug supply manufacturing, are underway ALG-097558: Potential best-in-class small molecule pan-coronavirus protease inhibitor
The ongoing Phase 1 first in human study is nearing completion of dosing (Q2), with topline data to be presented at the European Congress of Clinical Microbiology and Infectious Diseases (ECCMID) Annual Meeting, occurring in April 2024 Phase 2 enabling activities are underway with financial support from the National Institute of Allergy and Infectious Diseases (NIAID) Financial Results for the Fourth Quarter and Full Year 2023 $135.7 million as of December 31, 2023, compared with $125.8 million as of December 31, 2022. Additionally, in October 2023, we raised $92.1 million in gross proceeds in a private placement financing, before deducting placement agent’s fees and other expenses. Including the proceeds from the private placement financing, we continue to believe our cash balance provides sufficient cash to fund planned operations through the end of 2025.
Net losses for the three months ended December 31, 2023 were $27.9 million or basic and diluted net loss per common share of $(0.22) , compared to net losses of $21.9 million or basic and diluted net loss per common share of $(0.51) for the three months ended December 31, 2022.
Net losses for the year ended December 31, 2023 were $87.7 million or basic and diluted net loss per common share of $(1.36) , compared to net losses of $96.0 million or basic and diluted net loss per common share of $(2.25) for the year ended December 31, 2022.
Research and development (R&D) expenses for the three months ended December 31, 2023 were $22.3 million , compared with $19.1 million for the same period of 2022. The increase was primarily due third party expenses due to the milestone payments made as a result of dosing the first patient in a clinical trial. Total R&D stock-based compensation expense incurred for the three months ended December 31, 2023 was $1.5 million , compared with $1.9 million for the same period of 2022.
R&D expenses for the year ended December 31, 2023, were $73.0 million , compared with $85.1 million for the same period of 2022. The decrease was primarily due to a decrease in third-party expenses mainly related to our discontinued STOPs and ASO programs in 2022, partially offset by increases in our ongoing activities and related expenditures associated with our CAM clinical trial activities and MASH program, as well as the milestone payment to Katholieke Universiteit Leuven (KU Leuven) under its collaboration agreement related to the coronaviruses and the dosing of the first patient in a Phase 1 clinical trial. Total R&D stock-based compensation expense incurred for the year ended December 31, 2023 was $6.8 million , compared with $8.0 million for the same period of 2022.
General and administrative (G&A) expenses for the three months ended December 31, 2023 were $6.4 million , compared with $7.1 million for the same period of 2022. The decrease in G&A expenses for this comparative period is primarily due to a decrease in facility costs. Total G&A stock-based compensation expense incurred for the three months ended December 31, 2023 was $1.1 million , compared with $1.6 million for the same period of 2022.
G&A expenses for the year ended December 31, 2023, were $30.6 million , compared with $26.4 million for the same period of 2022. This was due to an increase in third-party expenses primarily due to higher legal and patent attorney costs, partially offset by a decrease in facility expenses. Total G&A stock-based compensation expense incurred for the year ended December 31, 2023 was $5.8 million , compared with $6.7 million for the same period of 2022.
About Aligos
Aligos Therapeutics, Inc. is a clinical stage biopharmaceutical company that was founded in 2018 with the mission to become a world leader in the treatment of liver and viral diseases. Aligos’ strategy is to harness the deep expertise and decades of drug development experience its team has in liver and viral diseases to discover and develop potentially best-in-class therapeutics for metabolic dysfunction associated steatohepatitis (MASH) and viruses with high unmet medical need such as chronic hepatitis B (CHB) and coronaviruses.
Forward-Looking Statement
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Any statements in this press release that are not historical facts may be considered “forward-looking statements,” including without limitation, statements that the company is well positioned to deliver planned milestones in 2024 and looking forward to sharing achievements with stakeholders throughout 2024; with respect to ALG-055009, that the first subject is expected to be dosed in Q2 2024 and that topline HERALD data are anticipated in Q4 2024; with respect to ALG-000184, that interim data readouts from the Phase 1a/1b study are planned to be presented in 2024 at the APASL, EASL and AASLD conferences; with respect to ALG-097558, that the Phase 1 first in human study is nearing completion of dosing for Q2 2024 with topline data to be presented at the ECCMID Annual Meeting in April 204; and that the company continues to believe its cash balance provides sufficient cash to fund planned operations through the end of 2025. Forward-looking statements are typically, but not always, identified by the use of words such as “may,” “will,” “would,” “believe,” “intend,” “plan,” “anticipate,” “estimate,” “expect,” and other similar terminology indicating future results. Such forward looking statements are subject to substantial risks and uncertainties that could cause our development programs, future results, performance, or achievements to differ materially from those anticipated in the forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties inherent in the drug development process, including Aligos’ clinical-stage of development, the process of designing and conducting clinical trials, the regulatory approval processes, the timing of regulatory filings, the challenges associated with manufacturing drug products, Aligos’ ability to successfully establish, protect and defend its intellectual property, other matters that could affect the sufficiency of Aligos’ capital resources to fund operations, reliance on third parties for manufacturing and development efforts, changes in the competitive landscape and the impact of global events and other macroeconomic conditions on Aligos’ business. For a further description of the risks and uncertainties that could cause actual results to differ from those anticipated in these forward-looking statements, as well as risks relating to the business of Aligos in general, see Aligos’ Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 12, 2024 and its future periodic reports to be filed or submitted with the Securities and Exchange Commission. Except as required by law, Aligos undertakes no obligation to update any forward-looking statements to reflect new information, events or circumstances, or to reflect the occurrence of unanticipated events.
Aligos Therapeutics, Inc Condensed Consolidated Statements of Operations (In thousands, except share and per share amounts) Three Months Ended Twelve Months Ended December 31, December 31, 2023 2022 2023 2022 (Unaudited) (Unaudited) (Unaudited) (audited) (1) Revenue from Collaborations $ 2,009 3.537 9,338 13,907 Revenue from Customers 672 - 6,191 - Operating Expenses: Research and development 22,257 19,100 73,040 85,077 General and administrative 6,421 7,119 30,616 26,410 Total operating expenses 28,678 26,219 103,656 111,487 Loss from operations (25,997 ) (22,682 ) (88,127 ) (97,580 ) Interest and other income, net (1,925 ) 845 1,243 1,640 Loss before income tax expense (27,922 ) (21,837 ) (86,884 ) (95,940 ) Income tax benefit (expense) 30 (49 ) (795 ) (106 ) Net loss (27,892 ) (21,886 ) (87,679 ) (96,046 ) Basic and diluted net loss per common share $ (0.22 ) $ (0.51 ) $ (1.36 ) $ (2.25 ) Weighted-average number of shares used in computing basic and diluted net loss per common share 126,726,942 42,836,163 64,260,588 42,695,227
Aligos Therapeutics, Inc. Condensed Consolidated Balance Sheets (In thousands) December 31, 2023 December 31, 2022 (Unaudited) (audited) (1) Assets Current assets: Cash and cash equivalents $ 135,704 $ 81,347 Short-term investments - 44,480 Prepaid expenses and other current assets 5,380 7,718 Total current assets 141,084 133,545 Other assets 10,443 13,148 Total assets $ 151,527 $ 146,693 Liabilities and Stockholders’ Equity Current liabilities $ 23,906 $ 33,129 Other liabilities, noncurrent 35,541 9,664 Total liabilities 59,447 42,793 Total stockholders’ equity 92,080 103,900 Total liabilities and stockholders’ equity $ 151,527 $ 146,693
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(1) The condensed, consolidated statement of operations for the year ended December 31, 2022, and balance sheet as of December 31, 2022 has been derived from the audited consolidated financial statements at that date included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.
Investor Contact jtarazi@aligos.com
Media Contact veames@lifescicomms.com
What was Aligos Therapeutics' cash, cash equivalents, and investments total as of December 31, 2023?
Aligos Therapeutics' cash, cash equivalents, and investments totaled $135.7 million as of December 31, 2023.
What was the net loss for the three months ended December 31, 2023?
The net loss for the three months ended December 31, 2023, was $27.9 million with a basic and diluted net loss per common share of $(0.22).
What Phase 2a enabling activities were completed for ALG-055009?
Phase 2a enabling activities for ALG-055009 included completion of supporting nonclinical/Phase 1 studies and manufacturing of drug supply.
Where are the interim data readouts planned to be presented for the ALG-000184-201 study?
Interim data readouts for the ALG-000184-201 study are planned to be presented at the Asian Pacific Association for the Study of the Liver (APASL), European Association for the Study of the Liver (EASL), and American Association for the Study of Liver Diseases (AASLD) conferences.
What financial support is Aligos receiving for the Phase 2 enabling activities of ALG-097558?
Aligos is receiving financial support from the National Institute of Allergy and Infectious Diseases (NIAID) for the Phase 2 enabling activities of ALG-097558.
