Progress Report on Cancer Breakthroughs 2020 Project Presented by Dr. Soon-Shiong at J.P. Morgan Healthcare Conference

On January 16, 2020 NantKwest, Inc. and ImmunityBio, Inc. reported an update of the Cancer Breakthrough 2020 Initiative (the "Initiative") and findings on the preliminary safety and early signals of efficacy in Phase 1 and 2 trials for multiple tumor types at the 2020 J.P. Morgan Healthcare Conference on January 14, 2020 in San Francisco (Press release, NantKwest, JAN 16, 2020, View Source [SID1234553289]).

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"We hypothesized that a common treatment protocol that harnesses both the natural-killer cell and T cells could be effective in inducing immunogenic cell death leading to durable responses across multiple tumor types. We are grateful for the support of the FDA and over 200 investigators in 41 states who have been involved in testing this hypothesis in cancer patients with advanced disease," said Soon-Shiong. "The number of patients who experienced a complete remission in this advanced setting is encouraging and further validates our premise that high-dose chemo is harmful and that a paradigm change of exposing the tumor to a carefully orchestrated ‘triple triangle offense’ of NK cell, Dendritic cell and T-cell activation, is a safe cellular and immunotherapy regimen and can be administered in the outpatient setting with promising activity across multiple tumor types. Testing this hypothesis has been the basis of the QUILT trials since 2017."

Dr. Soon-Shiong first announced the Initiative, whose goal is to create a new standard of care for a wide range of cancers, at the 2016 J.P. Morgan Healthcare Conference. The Initiative has made significant progress based on research and clinical trials in the following areas:

Obtained 39 Investigational New Drugs (IND) authorizations from the FDA from 2017 to 2019 to undertake Phase 1 and 2 trials across multiple tumor types to assess safety and efficacy with 10 first-in-human immunotherapy agents as single agents and in novel combinations;
Activated 206 clinical trial sites and over 200 investigators in 41 states since 2016, with 20 clinical trials actively enrolling;
Tested combination immunotherapy of Natural Killer (NK) cells, checkpoint inhibitors, and fusion proteins, with over 700 doses of off-the-shelf NK cells (representing over a trillion NK cells) safely administered as outpatient therapy to 53 patients since 2017;
Chemotherapy-free responses noted in patients with bladder cancer, lung cancer, Merkel cell cancer, and Non-Hodgkin’s Lymphoma;
Phase 2 studies ongoing with over 100 patients with non-small lung cancer and over 200 patients with Bladder Cancer studied to date;
Reported novel, first-in-human immunotherapy agents and genomic tumor-normal tests in 94 peer reviewed scientific publications including The Lancet, Cancer Immunology Research, Nature Communications and Blood;
Phase 1 clinical trials were completed for more than ten first-in-human, first-in-class immunotherapy agents. These trials were designed to activate both the innate (NK) and adaptive (T cell) immune systems and were expanded through compassionate use access across 36 different tumor types in over 350 patients;
FDA authorized NantHealth’s Omics Core℠, the first custom targeted whole exome sequencing platform, utilizing solution-phase exon capture and sequencing, to report somatic alterations (point mutations, small insertions and deletions) in 468 genes and sequencing of 19,396 protein-coding genes (whole exome) to determine overall tumor mutation burden (TMB) in tumor specimens, TMB is an important test for immunotherapy treatment;
Breakthrough Therapy Designation awarded by the FDA in December, 2019 for N-803, IL-15 superagonist that is designed to activate NK and memory T cells for the treatment of patients with BCG-unresponsive non-muscle invasive bladder cancer; and
Based on the safety and efficacy data of the Phase 1 trial in 11 patients with metastatic pancreatic cancer who had received haNK and N-803, an expanded access regime trial incorporating N-803 with PD-L1.t-haNK was authorized to study a patient with metastatic pancreatic cancer who had failed standard of care. After five infusions of PD-L1.t-haNK and N-803, the patient’s tumor metastasis resolved completely per CT/PET scan and the complete response has been confirmed by a repeat CT/PET scan. NantKwest expects to report this patient’s progress, as well as report data from the full 11 metastatic pancreatic patients enrolled in Quilt 3.064 in 2020.
Interim results of initial signals of safety and efficacy in these Phase 1 and 2 studies in advanced cancers were reported at multiple scientific conferences, including The Society of Immunotherapy of Cancer (SITC) (Free SITC Whitepaper)’s (SITC) (Free SITC Whitepaper) 2018 and 2019 conferences, with complete responses noted in third-line Merkel cell carcinoma and fourth-line head and neck cancer patients who received combination immunotherapy, including NantKwest’s haNK CD-16 NK cells combined with Pfizer’s PD-L1 antibody, Avelumab, and with ImmunityBio’s N-803, IL-15 superagonist. In addition, the company reported complete responses using the same combination in Triple Negative Breast Cancer and observed durable complete responses in these patients who had failed all standards of care for breast cancer. The results were presented at the 2019 San Antonio Breast Cancer Symposium (SABCS) in December 2019. Most recently, exciting data of long duration response was presented at a plenary session at the AACR (Free AACR Whitepaper) meeting on January 2020. In this Phase 2 trial patients with lung cancer who had relapsed on checkpoint therapy were then administered the same checkpoint but with the addition of N-803. In the patients with high PDL1 non-small lung cancer who had relapsed on checkpoint therapy, 38 percent responded to the combination of N-803 plus the same checkpoint, with the duration of response still ongoing as long as 3 years to date.

A recording of the presentation and slides from the 2020 J.P. Morgan Healthcare Conference can be viewed on the NantKwest and ImmunityBio websites, www.NantKwest.com and www.Immunitybio.com

About Cancer Breakthrough 2020

The Cancer Breakthroughs 2020 program, which is one of the most comprehensive cancer initiatives launched to date, seeks to accelerate the potential of combination immunotherapy as the next generation standard of care in cancer patients by inducing immunogenic cell death and thereby avoiding the adverse effects of high dose chemotherapy. This national collaborative initiative aims to explore a new paradigm in cancer care by initiating single-arm and randomized Phase 2 trials in patients at all stages of disease in multiple tumor types by 2020. The findings from these initial studies will inform the pursuit of registration trials for FDA approval and provide the scientific underpinnings to develop an effective immunotherapy using the tumor itself as a source of vaccine antigens to combat cancer by 2025.

TG Therapeutics Initiates Rolling Submission of New Drug Application (NDA) to U.S. Food and Drug Administration for Umbralisib as a Treatment for Patients with Previously Treated Marginal Zone Lymphoma or Follicular Lymphoma

On January 16, 2020 TG Therapeutics, Inc. (NASDAQ: TGTX), a biopharmaceutical company developing medicines for patients with B-cell mediated diseases, reported that the Company has initiated a rolling submission of a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) requesting accelerated approval of umbralisib, the Company’s oral, once-daily, dual inhibitor of PI3K-delta and CK1-epsilon, as a treatment for patients with previously treated marginal zone lymphoma (MZL) and follicular lymphoma (FL) (Press release, TG Therapeutics, JAN 16, 2020, View Source [SID1234553287]). The Company has received guidance from the FDA that submission of a single NDA for both the MZL and FL indications is acceptable. Umbralisib has previously been granted both orphan drug designation and breakthrough therapy designation by the FDA for MZL. The Company expects to complete the NDA rolling submission in the first half of 2020.

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Michael S. Weiss, Executive Chairman and Chief Executive Officer of TG Therapeutics stated, "We are extremely pleased to have initiated our first NDA submission for umbralisib and to have received guidance from the FDA to include both MZL and FL in a single NDA. This is an extremely important milestone for us, as it brings us one step closer to potentially offering a novel treatment option to patients with previously treated MZL and FL." Mr. Weiss continued, "I want to thank the patients, their families and the research teams who participated in these important trials and helped advance umbralisib, and the TG team for working tirelessly to initiate this NDA submission. This is the beginning of an impactful 2020 as we look forward to topline Phase 3 data from both the UNITY-CLL trial and the ULTIMATE I & II trials in multiple sclerosis, as well as potential regulatory submissions based off these data."

ABOUT THE UNITY-NHL PHASE 2b STUDY—MARGINAL ZONE LYMPHOMA AND FOLLICULAR LYMPHOMA COHORTS

The UNITY- NHL trial is a multicenter, open-label Phase 2b trial.

The Marginal Zone Lymphoma (MZL) cohort was designed to evaluate the safety and efficacy of single agent umbralisib, in patients with MZL who have received at least one prior anti-CD20 regimen. The primary endpoint is overall response rate (ORR) as determined by central Independent Review Committee (IRC) assessment.

The Follicular Lymphoma (FL) cohort was designed to evaluate the safety and efficacy of single agent umbralisib in patients with FL who have received at least two prior lines of therapy, including an anti-CD20 regimen and an alkylating agent. The primary endpoint is overall response rate (ORR) as determined by Independent Review Committee (IRC) assessment.

Merck Completes Acquisition of ArQule

On January 16, 2020 Merck (NYSE: MRK), known as MSD outside the United States and Canada, reported the successful completion of the cash tender offer, through a subsidiary, for all of the outstanding shares of common stock of ArQule, Inc. (NASDAQ: ARQL) at a purchase price of $20.00 per share (Press release, Merck & Co, JAN 16, 2020, View Source [SID1234553285]). As of the tender offer expiration, 103,394,298 shares of common stock of ArQule were validly tendered and not withdrawn from the tender offer, representing approximately 75.3 percent of the outstanding common stock of ArQule on a fully diluted basis. All such shares have been accepted for payment in accordance with the terms of the tender offer, and Merck expects to promptly pay for such shares.

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Following the completion of the tender offer, Merck completed the acquisition of ArQule today through a merger of Merck’s wholly-owned subsidiary with and into ArQule in which all shares not tendered into the offer were cancelled and converted into the right to receive cash equal to the $20.00 offer price per share, without interest, less any applicable tax withholding. At the completion of the merger, ArQule became a wholly-owned subsidiary of Merck. The common stock of ArQule will no longer be listed or traded on the NASDAQ Global Select Market.

Entry into a Material Definitive Agreement

On January 10, 2020, our wholly-owned subsidiary, Lex-Gen Woodlands, L.P. ("Lex-Gen Woodlands"), reported that it has entered into a Real Estate Purchase and Sale Agreement (the "Agreement") with FFC Equity Holdings, L.P. ("Purchaser") (Filing, 8-K, Lexicon Pharmaceuticals, JAN 10, 2020, View Source [SID1234553284]).

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Under the Agreement, we agreed to sell our facilities in The Woodlands, Texas (the "Property") to Purchaser for a purchase price of $15.0 million. Such sale is subject to normal and customary closing conditions, including a study period, which extends until April 9, 2020, during which Purchaser may conduct inspections, analyses and other studies of the Property and may terminate the Agreement in its discretion. Such sale is also subject to the negotiation and execution by the parties of a leaseback agreement for a period of six months with respect to a portion of the Property concurrently with closing.

Heat Biologics, Inc. Prices $7,000,000 Public Offering

On January 16, 2020 Heat Biologics, Inc. ("Heat") (NASDAQ:HTBX), a clinical-stage biopharmaceutical company specializing in the development of therapeutics designed to activate patients’ immune systems against cancer, reported the pricing of an underwritten public offering consisting of 20,000,000 shares of Common Stock together with Warrants to purchase 10,000,000 shares of Common Stock at a combined price to the public of $0.35 (Press release, Heat Biologics, JAN 16, 2020, View Source [SID1234553283]). The gross proceeds to the Company from this offering are expected to be approximately $7,000,000, before deducting underwriting discounts, commissions and other offering expenses. The Warrants will have an exercise price of $0.385, will be exercisable upon issuance and will expire 14 months from the date of issuance. Heat Biologics, Inc. has granted the underwriters a 45-day option to purchase up to 3,000,000 additional shares of Common Stock and/or additional Warrants to purchase up to 1,500,000 shares of Common Stock to cover over-allotments, if any. The offering is expected to close on Tuesday, January 21, 2020, subject to customary closing conditions.

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A.G.P./Alliance Global Partners is acting as the sole book-running manager for the offering.

Brookline Capital Markets, a division of Arcadia Securities, LLC and Maxim Group LLC are acting as co-managers for the offering.

A registration statement on Form S-1 (File No. 333-234105) relating to these securities has been filed with the U.S. Securities and Exchange Commission ("SEC") and became effective on January 16, 2020 and is available on the SEC’s website located at View Source This offering is being made only by means of a prospectus. Electronic copies of the prospectus may be obtained, when available, from A.G.P./Alliance Global Partners, 590 Madison Avenue, 36th Floor, New York, NY 10022 or via telephone at 212-624-2060 or email: [email protected]. Before investing in this offering, interested parties should read in their entirety the prospectus and the other documents that Heat Biologics, Inc. has filed with the SEC that are incorporated by reference in such prospectus, which provides more information about Heat Biologics, Inc. and such offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.