Assembly Biosciences Reports First Quarter 2024 Financial Results and Recent Highlights

Rhea-AI Summary

Assembly Biosciences, Inc. (Nasdaq: ASMB) reported financial results for Q1 2024, including regulatory clearances for Phase 1 trials for ABI-5366 targeting recurrent genital herpes and ABI-4334 in chronic HBV infection. The company highlighted upcoming clinical milestones, abstract acceptance for ABI-6250 at EASL CongressTM 2024, and financial results showing $113.0 million in cash as of March 31, 2024. Revenues from collaborative research were $5.8 million, with research and development expenses at $11.9 million and a net loss of $9.1 million for Q1 2024.

Positive

• Regulatory clearances received for Phase 1 trials for ABI-5366 and ABI-4334, indicating progress in the development of innovative therapies targeting serious viral diseases.

• Anticipated milestones for 2024 include initiation of studies for ABI-5366 and ABI-4334, with two additional candidates expected to enter the clinic by the end of the year.

• Acceptance of abstract highlighting preclinical data for ABI-6250 at EASL CongressTM 2024, showcasing the company's commitment to scientific collaboration and research.

Negative

• Cash, cash equivalents, and marketable securities decreased to $113.0 million as of March 31, 2024, compared to $130.2 million as of December 31, 2023, raising concerns about the company's financial position.

• Despite a decrease in research and development expenses compared to the same period in 2023, Assembly Bio reported a net loss of $9.1 million for Q1 2024, signaling ongoing financial challenges.

• Clinical trial application clearances received for a Phase 1a/1b trial for ABI-5366 targeting recurrent genital herpes, and a Phase 1b trial for ABI-4334 in chronic HBV infection; both studies on track to initiate by mid-2024
• ABI-5366 interim Phase 1a first-in-human data expected in Q3 2024 and ABI-4334 interim Phase 1b data expected by end of year

SOUTH SAN FRANCISCO, Calif., May 08, 2024 (GLOBE NEWSWIRE) -- Assembly Biosciences, Inc. (Nasdaq: ASMB), a biotechnology company developing innovative therapeutics targeting serious viral diseases, today reported financial results and recent highlights for the first quarter ended March 31, 2024.

“We are pleased that we now have regulatory clearance to initiate trials evaluating our promising investigational therapies ABI-5366 and ABI-4334 and look forward to sharing interim data from these studies later this year,” said Jason Okazaki, chief executive officer and president of Assembly Bio. “These clearances are a significant step toward our goal of reaching key clinical inflection points for multiple programs in our antiviral pipeline by year end. Our continued clinical progress reflects the strength and agility of our highly experienced team and our singular focus of improving treatment options for those living with serious viral diseases.”

First Quarter 2024 and Recent Highlights

• Two clinical trial applications received clearance to proceed:
  • ABI-5366, a long-acting herpes simplex virus (HSV) helicase-primase inhibitor candidate, for initiation of Phase 1a/1b clinical studies in both healthy volunteers and in individuals with recurrent genital herpes
  • ABI-4334, a next-generation, highly potent capsid assembly modulator candidate, for initiation of a Phase 1b study in individuals with chronic hepatitis B virus (HBV) infection
• An abstract highlighting preclinical data for ABI-6250, an oral, small molecule HBV/hepatitis delta virus (HDV) entry inhibitor candidate, has been accepted for poster presentation at the European Association for the Study of the Liver (EASL) Congress^TM 2024, June 5-8, 2024

Anticipated 2024 Milestones

• ABI-5366 and ABI-4334 studies expected to initiate by mid-2024:
  • ABI-5366 Phase 1a interim clinical data expected in Q3 2024 and interim Phase 1b data expected in the first half of 2025
  • ABI-4334 Phase 1b interim clinical data expected by the end of 2024
• Two additional candidates are anticipated to enter the clinic by the end of 2024:
  • ABI-1179, a long-acting HSV helicase-primase inhibitor contributed by Gilead Sciences, Inc. (Gilead) under the collaboration between Assembly Bio and Gilead
  • ABI-6250, a small molecule orally-bioavailable HDV entry inhibitor

      First Quarter 2024 Financial Results

• Cash, cash equivalents and marketable securities were $113.0 million as of March 31, 2024, compared to $130.2 million as of December 31, 2023. Assembly Bio’s cash position is projected to fund operations into the second half of 2025.
• Revenues from collaborative research were $5.8 million for the three months ended March 31, 2024. There was no revenue recognized for the same period in 2023. Revenue for the three months ended March 31, 2024 consists of amounts recognized under the collaboration with Gilead.
• Research and development expenses were $11.9 million for the three months ended March 31, 2024, compared to $14.5 million for the same period in 2023. Increased expenses related to the development of ABI-1179 and ABI-6250 were more than offset by savings from the discontinuation of ABI-H3733 and vebicorvir as well as reduced employee and contractor-related expenses.
• General and administrative expenses were $4.6 million for the three months ended March 31, 2024, compared to $5.0 million for the same period in 2023. The decrease is primarily due to a decrease in non-cash stock-based compensation expense.
• Net loss attributable to common stockholders was $9.1 million, or $1.66 per basic and diluted share, for the three months ended March 31, 2024, compared to $19.0 million, or $4.46 per basic and diluted share, for the same period in 2023.
  

The investigational products and investigational product candidates referenced here have not been approved anywhere globally, and their safety and efficacy have not been established.

About Assembly Biosciences
Assembly Biosciences is a biotechnology company dedicated to the development of innovative small-molecule therapeutics designed to change the path of serious viral diseases and improve the lives of patients worldwide. Led by an accomplished team of leaders in virologic drug development, Assembly Bio is committed to improving outcomes for patients struggling with the serious, chronic impacts of herpesvirus, hepatitis B virus (HBV) and hepatitis delta virus (HDV) infections. For more information, visit assemblybio.com.

Forward-Looking Statements
The information in this press release contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to materially differ. These risks and uncertainties include: Assembly Bio’s ability to realize the potential benefits of its collaboration with Gilead Sciences, Inc., including all financial aspects of the collaboration and equity investments; Assembly Bio’s ability to initiate and complete clinical studies involving its therapeutic product candidates, including studies contemplated by Assembly Bio’s collaboration with Gilead, in the currently anticipated timeframes or at all; safety and efficacy data from clinical or nonclinical studies may not warrant further development of Assembly Bio’s product candidates; clinical and nonclinical data presented at conferences may not differentiate Assembly Bio’s product candidates from other companies’ candidates; results of nonclinical studies may not be representative of disease behavior in a clinical setting and may not be predictive of the outcomes of clinical studies; and other risks identified from time to time in Assembly Bio’s reports filed with the U.S. Securities and Exchange Commission (the SEC). You are urged to consider statements that include the words may, will, would, could, should, might, believes, hopes, estimates, projects, potential, expects, plans, anticipates, intends, continues, forecast, designed, goal or the negative of those words or other comparable words to be uncertain and forward-looking. Assembly Bio intends such forward-looking statements to be covered by the safe harbor provisions contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. More information about Assembly Bio’s risks and uncertainties are more fully detailed under the heading “Risk Factors” in Assembly Bio’s filings with the SEC, including its most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Except as required by law, Assembly Bio assumes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. 

Contacts

Investor and Corporate: 
Shannon Ryan 
SVP, Investor Relations, Corporate Affairs and Alliance Management 
(415) 738-2992 
investor_relations@assemblybio.com

Media: 
Sam Brown Inc.  
Hannah Hurdle  
(805) 338-4752  
ASMBMedia@sambrown.com 

ASSEMBLY BIOSCIENCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands except for share amounts and par value)
		March 31,				December 31,
		2024				2023
		(Unaudited)
ASSETS
Current assets
Cash and cash equivalents		$	18,749			$	19,841
Marketable securities			94,227				110,406
Accounts receivable from collaboration			43				43
Prepaid expenses and other current assets			4,149				3,497
Total current assets			117,168				133,787
Property and equipment, net			367				385
Operating lease right-of-use assets			2,036				2,339
Other assets			312				312
Total assets		$	119,883			$	136,823
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable		$	727			$	461
Accrued research and development expenses			2,059				885
Other accrued expenses			2,051				5,744
Deferred revenue from a related party - short-term			32,771				30,915
Operating lease liabilities - short-term			1,145				1,220
Total current liabilities			38,753				39,225
Deferred revenue from a related party - long-term			47,738				55,379
Operating lease liabilities - long-term			791				1,122
Total liabilities			87,282				95,726
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued or outstanding			—				—
Common stock, $0.001 par value; 150,000,000 shares authorized as of March 31, 2024 and December 31, 2023; 5,482,752 shares issued and outstanding as of March 31, 2024 and December 31, 2023			5				5
Additional paid-in capital			827,660				826,921
Accumulated other comprehensive loss			(239	)			(81	)
Accumulated deficit			(794,825	)			(785,748	)
Total stockholders' equity			32,601				41,097
Total liabilities and stockholders' equity		$	119,883			$	136,823

 

ASSEMBLY BIOSCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands except for share and per share amounts)
(Unaudited)
		Three Months Ended March 31,
		2024				2023
Collaboration revenue from a related party		$	5,785			$	—
Operating expenses
Research and development			11,879				14,547
General and administrative			4,635				5,012
Total operating expenses			16,514				19,559
Loss from operations			(10,729	)			(19,559	)
Other income
Interest and other income, net			1,652				609
Total other income			1,652				609
Net loss		$	(9,077	)		$	(18,950	)
Other comprehensive loss
Unrealized (loss) gain on marketable securities			(158	)			290
Comprehensive loss		$	(9,235	)		$	(18,660	)
Net loss per share, basic and diluted		$	(1.66	)		$	(4.46	)
Weighted average common shares outstanding, basic and diluted			5,483,313				4,251,037

FAQ

What are the anticipated milestones for ABI-5366 and ABI-4334 in 2024?

ABI-5366 Phase 1a interim clinical data is expected in Q3 2024, with Phase 1b data projected for the first half of 2025. ABI-4334 Phase 1b interim clinical data is expected by the end of 2024.

What was Assembly Biosciences' cash position as of March 31, 2024?

Assembly Bio's cash, cash equivalents, and marketable securities totaled $113.0 million as of March 31, 2024, compared to $130.2 million as of December 31, 2023.

What were the revenues from collaborative research in Q1 2024?

Revenues from collaborative research were $5.8 million for the three months ended March 31, 2024, with no revenue recognized for the same period in 2023.

What were the research and development expenses for Q1 2024?

Research and development expenses were $11.9 million for the three months ended March 31, 2024, compared to $14.5 million for the same period in 2023.

What was the net loss attributable to common stockholders in Q1 2024?

The net loss attributable to common stockholders was $9.1 million, or $1.66 per basic and diluted share, for the three months ended March 31, 2024, compared to $19.0 million, or $4.46 per basic and diluted share, for the same period in 2023.