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): September 3, 2020
Inozyme Pharma, Inc.
(Exact Name of Registrant as Specified in Charter)
Delaware | 001-39397 | 38-4024528 | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
321 Summer Street, Suite 400 Boston, Massachusetts |
02210 | |
(Address of Principal Executive Offices) | (Zip Code) |
Registrants telephone number, including area code: (857) 330-4340
Not applicable
(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 (see General Instruction A.2. below):
☐ | 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 | INZY | Nasdaq Global Select 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 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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 September 3, 2020, Inozyme Pharma, Inc. (the Company) announced its financial results for the quarter ended June 30, 2020. The full text of the press release issued in connection with the announcement is being furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in this Item 2.02, including Exhibit 99.1 attached hereto, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
The following exhibit is furnished herewith:
Exhibit No. |
Description | |
99.1 | Press Release issued by the Company on September 3, 2020 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
INOZYME PHARMA, INC. | ||||||
Date: September 3, 2020 | By: | /s/ Axel Bolte | ||||
Name: | Axel Bolte | |||||
Title: | President and Chief Executive Officer |
Exhibit 99.1
Inozyme Pharma Reports Second Quarter 2020 Financial Results and Provides Business Highlights
Upsized IPO in July 2020 raised $128.8 million in gross proceeds
Submitted IND for INZ-701 for the treatment of ENPP1 deficiency; currently on FDA clinical hold pending completion of ongoing GLP toxicology studies
Initiation of INZ-701 Phase 1/2 clinical trials anticipated in early 2021, as previously planned
BOSTON, September 3, 2020 (GLOBE NEWSWIRE) Inozyme Pharma, Inc. (Nasdaq: INZY), a rare disease biopharmaceutical company developing novel therapeutics for the treatment of diseases of abnormal mineralization impacting the vasculature, soft tissue and skeleton, today reported financial results for the second quarter ended June 30, 2020 and provided recent business highlights.
We have made substantial progress over the past quarter and in July, including completing our upsized initial public offering in July, acquiring additional ENPP1 deficiency program assets, and submitting our first investigational new drug application (IND) for INZ-701 for the treatment of ENPP1 deficiency, said Axel Bolte, MSc, MBA, co-founder, president and chief executive officer of Inozyme Pharma. FDA has requested final study reports for our ongoing three-month GLP toxicology studies in mice and non-human primates and has placed our planned Phase 1/2 clinical trial of INZ-701 in adult patients with ENPP1 deficiency in the United States on clinical hold pending submission of the reports. We expect to be able to submit these reports in the fourth quarter of this year and initiate our clinical program, as we had planned, in early 2021.
Recent Business Highlights
| Completed upsized Initial Public Offering In July 2020, Inozyme completed its initial public offering of 8,050,000 shares of common stock at a public offering price of $16.00 per share, including the full exercise of the underwriters option to purchase additional shares. Gross proceeds from the IPO were $128.8 million and net proceeds from the offering, after deducting underwriting discounts, commissions and offering expenses, were approximately $116.5 million. |
| Submitted an IND for INZ-701 - On July 30, 2020, Inozyme submitted its first IND for INZ-701 for the treatment of ENPP1 deficiency to the U.S. Food and Drug Administration (FDA). At the end of the 30-day FDA review period, the Company was notified that the IND was placed on clinical hold, pending submission of the final study report for its ongoing three-month toxicology studies in mice and non-human primates (NHPs) being performed in accordance with Good Laboratory Practices (GLP) regulations. Inozyme initiated these GLP toxicology studies prior to submission of the IND and expects to complete the studies and have reports available in the fourth quarter of 2020. The FDA did not request any additional preclinical data to resolve the clinical hold other than the submission of the final study report for the three-month GLP toxicology studies in mice and NHPs. Subject to the submission of the final study reports for the three-month toxicology studies as recommended by the FDA and the successful resolution of the clinical hold, the Company expects to initiate its Phase 1/2 trials in early 2021 and report initial safety and biomarker data in 2021, as it had planned. |
| Expanded and strengthened Board of Directors with appointment of Doug Treco, Ph.D., as Chairman and Lynne Sullivan, MST as an Independent Director In May 2020, Doug Treco joined Inozymes Board as chairman and Lynne Sullivan joined the Board as an independent director. Dr. Treco co-founded Ra Pharmaceuticals, Inc., where he was chief executive officer and a member of the Board of Directors from its inception until the company was acquired in April 2020. |
Ms. Sullivan is currently the chief financial officer for UNITY Biotechnology, and she previously served as the chief financial officer of Compass Therapeutics and as a senior vice president of finance at Biogen, where she spent 11 years, with global responsibility for Corporate Finance, Financial Planning and Analysis and Corporate Tax.
| Acquired ENPP1 program assets from Alexion Pharmaceuticals In July 2020, Inozyme announced the acquisition of intellectual property and assets from Alexion Pharmaceuticals focusing on ENPP1 gene deficiencies. The acquisition complements Inozymes ongoing development of INZ-701 and expands the Companys intellectual property portfolio. |
| Initiated disease burden study in ENPP1 deficiency and ABCC6 deficiency In May 2020, Inozyme and GACI Global, a patient advocacy organization dedicated to bettering the lives of families affected by Generalized Arterial Calcification of Infancy and/or Autosomal Recessive Hypophosphatemic Rickets Type 2 (GACI/ARHR2), announced the initiation of a study to characterize the burden of disease and understand the systemic progression of disease for the rare genetic diseases of both ENPP1 deficiency and ABCC6 deficiency from the perspective of a patient and/or parent. |
| Expanded physical footprint with move to new office To meet the demands of anticipated growth, Inozyme expanded and enhanced its physical office space in August 2020. |
Second Quarter 2020 Financial Results
| Cash Position Cash, cash equivalents and short-term investments were $63.9 million as of June 30, 2020, as compared to $40.8 million as of March 31, 2020. Total cash, cash equivalents and short-term investments on June 30, 2020 does not include total net proceeds of approximately $116.5 million from the Companys IPO in July 2020. Based on its current plans, the Company expects that its existing cash, cash equivalents and short-term investments, including the proceeds from its July 2020 IPO, will be sufficient to enable it to fund its operating expenses and capital expenditure requirements into the second half of 2022. |
| Research and Development (R&D) Expenses R&D expenses were $7.9 million for the second quarter ended June 30, 2020, compared to $3.5 million for the same period in 2019. The |
increase was primarily due to higher consulting and professional fees related to the planned filing of an IND for INZ-701, preclinical studies and clinical preparation activities with the Companys CRO, and growth in the number of R&D employees. |
| General and Administrative (G&A) Expenses G&A expenses were $1.7 million for the second quarter ended June 30, 2020, compared to $1.1 million for the same period in 2019. The increase was primarily due to the growth in the number of G&A employees, an increase in legal fees related to patents and new contracts, and generally higher fees in areas such as audit, tax and information technology to support the Companys growth. |
| Net Loss Net loss was $9.5 million, or $7.57 loss per share, for the second quarter ended June 30, 2020, compared to $4.2 million, or $3.57 loss per share, for the same period in 2019. |
About Inozyme Pharma
Inozyme Pharma is a rare disease biopharmaceutical company developing novel therapeutics for the treatment of diseases of abnormal mineralization impacting the vasculature, soft tissue and skeleton. Through our in-depth understanding of the biological pathways involved in mineralization, we are pursuing the development of potentially first-in-class therapeutics to address the underlying causes of these debilitating diseases. It is well established that two genes, ENPP1 and ABCC6, play key roles in a critical mineralization pathway and that defects in these genes lead to abnormal mineralization. We are initially focused on developing a novel therapy to treat the rare genetic diseases of ENPP1 and ABCC6 deficiencies.
Inozyme Pharma was founded in 2017 by Joseph Schlessinger, Ph.D., Demetrios Braddock, M.D., Ph.D., and Axel Bolte, MSc, MBA, with technology developed by Dr. Braddock and licensed from Yale University. For more information, please visit www.inozyme.com.
Cautionary Note Regarding Forward-Looking Statements
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the initiation, and timing, of our future clinical trials and our research and development programs, the availability of preclinical study and clinical trial data and the period over which we believe that our existing cash and cash equivalents will be sufficient to fund our operating expenses. The words anticipate, believe, continue, could, estimate, expect, intend, may, plan, potential, predict, project, should, target, will, would and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any forward-looking statements are based on managements current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in, or implied by, such forward-looking statements. These risks and uncertainties include, but are not limited to, risks associated with the Companys ability to successfully resolve the clinical hold with regard to its planned Phase 1/2 clinical trial of INZ-701 for ENPP1 deficiency; obtain and maintain necessary approvals from the FDA and other regulatory authorities; continue to advance its product candidates in
preclinical studies and clinical trials; replicate in later clinical trials positive results found in preclinical studies and early-stage clinical trials of its product candidates; advance the development of its product candidates under the timelines it anticipates in planned and future clinical trials; obtain, maintain and protect intellectual property rights related to its product candidates; manage expenses; and raise the substantial additional capital needed to achieve its business objectives. For a discussion of other risks and uncertainties, and other important factors, any of which could cause the Companys actual results to differ from those contained in the forward-looking statements, see the Risk Factors section, as well as discussions of potential risks, uncertainties and other important factors, in the Companys most recent filings with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent the Companys views as of the date hereof and should not be relied upon as representing the Companys views as of any date subsequent to the date hereof. The Company anticipates that subsequent events and developments will cause the Companys views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so.
Condensed Consolidated Balance Sheet Data
(Unaudited)
(in thousands)
June 30, 2020 |
December 31, 2019 |
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Cash, cash equivalents and short-term investments |
$ | 63,867 | $ | 47,132 | ||||
Total assets |
68,511 | 47,944 | ||||||
Total liabilities |
6,965 | 3,236 | ||||||
Convertible preferred stock |
111,565 | 77,927 | ||||||
Accumulated deficit |
(51,863 | ) | (34,652 | ) | ||||
Total stockholders deficit |
(50,019 | ) | (33,219 | ) |
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
(in thousands, except share and per share data)
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Operating expenses: |
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Research and development |
$ | 7,877 | $ | 3,489 | $ | 14,283 | $ | 7,623 | ||||||||
General and administrative |
1,671 | 1,064 | 3,171 | 2,094 | ||||||||||||
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Total operating expenses |
9,548 | 4,553 | 17,454 | 9,717 | ||||||||||||
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Loss from operations |
(9,548 | ) | (4,553 | ) | (17,454 | ) | (9,717 | ) | ||||||||
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Other income (expense): |
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Interest income |
71 | 394 | 242 | 604 | ||||||||||||
Other income (expense), net |
4 | (14 | ) | 1 | (31 | ) | ||||||||||
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Other income (expense), net |
75 | 380 | 243 | 573 | ||||||||||||
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Net loss |
$ | (9,473 | ) | $ | (4,173 | ) | $ | (17,211 | ) | $ | (9,144 | ) | ||||
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Other comprehensive (loss) income: |
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Unrealized (losses) gains on available-for-sale securities |
(15 | ) | 10 | 8 | 12 | |||||||||||
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Total other comprehensive (loss) income |
(15 | ) | 10 | 8 | 12 | |||||||||||
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Comprehensive loss |
$ | (9,488 | ) | $ | (4,163 | ) | $ | (17,203 | ) | $ | (9,132 | ) | ||||
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Net loss attributable to common stockholdersbasic and diluted |
$ | (9,473 | ) | $ | (4,173 | ) | $ | (17,211 | ) | $ | (9,144 | ) | ||||
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Net loss per share attributable to common stockholdersbasic and diluted |
$ | (7.57 | ) | $ | (3.57 | ) | $ | (14.01 | ) | $ | (7.83 | ) | ||||
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Weighted-average common shares outstandingbasic and diluted |
1,251,244 | 1,170,480 | 1,228,296 | 1,167,346 | ||||||||||||
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Contacts
Investors:
Solebury Trout
Mike Biega
(617) 221 9660
mbiega@soleburytrout.com
Media:
SmithSolve
Alex Van Rees
(973) 442-1555 ext. 111
alex.vanrees@smithsolve.com