Ascendis Pharma Reports Second Quarter 2023 Financial Results

On September 5, 2023 Ascendis Pharma A/S (Nasdaq: ASND) reported financial results for the second quarter ended June 30, 2023 and provided business updates (Press release, Ascendis Pharma, SEP 5, 2023, View Source [SID1234634876]).

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"We have built a fully integrated Endocrinology Rare Disease franchise with a growing commercial reach and are on our way to achieving our Vision 3×3, including regulatory approval for three differentiated product candidates by 2025," said Jan Mikkelsen, Ascendis Pharma’s President and Chief Executive Officer. "With a proven U.S. and expanding global commercial infrastructure positioned to capture the multi-billion-dollar opportunities that each represents, coupled with an R&D engine for label expansion and future innovation for new patient populations, Ascendis has many routes to realize long-term profitability and sustainability."

Corporate Highlights

TransCon hGH (marketed in the U.S. as SKYTROFA):
Second quarter 2023 SKYTROFA revenue totaled €36 million, and the Company is increasing full year 2023 U.S. SKYTROFA revenue expectations from €150 – €160 million to €165 – €170 million.
Second quarter 2023 SKYTROFA revenue included a negative adjustment to provision for estimated sales rebates related to sales from prior periods of €2.1 million as a result of expanding payer coverage and a negative foreign currency impact of €0.6 million compared to the first quarter of 2023, due to a weaker U.S. dollar.
Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023
SKYTROFA revenue (millions) €4.4 €12.3 €17.1 €31.6 €35.9

Based on reported revenues, SKYTROFA was the leading U.S. growth hormone product in the second quarter, with a market share of less than 10% of treated U.S. pediatric GHD patients.
First commercial launch of SKYTROFA in the EU expected in September in Germany.
Received FDA approval of Lonza as a high-capacity drug substance manufacturing site to support worldwide demand of SKYTROFA. Expect EU approval in first half of 2024.
Topline results from Phase 3 foresiGHt Trial in adult growth hormone deficiency investigating the metabolic impact of TransCon hGH expected in the fourth quarter of 2023, opening up the first label expansion opportunity.
TransCon PTH:
In June 2023, the Company requested a Type A meeting with FDA and submitted an updated control strategy. The Company’s Type A meeting was held with FDA in late August based on the Agency’s availability. Following a constructive Type A meeting, the Company submitted additional information to FDA supporting the updated control strategy. Ascendis believes the materials submitted to FDA combined with the Type A meeting discussions will position the Company to resubmit the NDA for TransCon PTH for adults with hypoparathyroidism in October 2023.
Remain on track for European Commission decision on Marketing Authorisation Application (MAA) for TransCon PTH during the fourth quarter of 2023. If approved, first country launch planned in Germany in early 2024.
New post hoc analysis showed TransCon PTH-treated patients demonstrated substantial increases in estimated glomerular filtration rate (eGFR), indicating improved kidney function. More information on this analysis can be found in a separate press release issued today and available here on the Investors & News section of the Ascendis Pharma website.
145 out of 154 participants continue in the open-label extension (OLE) portions of the Phase 2 PaTH Forward, Phase 3 PaTHway, and PaTHway Japan trials.
The U.S. Expanded Access Program and German Compassionate Use Program continue to be open for enrollment of eligible patients.
TransCon CNP:
U.S. and EU regulatory agencies have endorsed ApproaCH, a global randomized, double-blind, placebo-controlled trial in children ages 2–11 years with achondroplasia, as a pivotal Phase 3 trial. Enrollment is complete and topline results are expected in the second half of 2024.
All 57 patients remain in the OLE portion of the Phase 2 ACcomplisH Trial, with treatment duration up to 3 years. One-year follow-up data from OLE expected in the fourth quarter of 2023.
TransCon TLR7/8 Agonist:
Enrollment continues in the Phase 2 portion of transcendIT-101 at the recommended Phase 2 dose (RP2D) in four indication-specific cohorts. Topline/interim analysis from Phase 2 dose-expansion cohorts expected in 2024.
TransCon IL-2 β/γ
Completed Phase 1 dose escalation in combination with pembrolizumab in the Phase 1/2 IL-Believe Trial with a total of 21 patients enrolled. RP2D was determined at 120 µg/kg IV every three weeks. No dose-limiting toxicity, vascular leak syndrome, or grade 3 or 4 cytokine release syndrome was observed at any dose level evaluated.
Enrollment initiated in the Phase 2 portion in indication-specific cohorts, with expected topline/interim analysis from Phase 2 dose-expansion cohorts expected in 2024.
Expanding leadership in long-acting prodrug technologies with new TransCon technology carrier platform to unlock large market opportunities where high volume and low-cost manufacturing is required.
Proof-of-principle demonstrated for GLP-1 analogs (semaglutide), with data supporting potential best-in-class weekly and monthly administration profiles. More information on the pre-clinical data can be found in a presentation here on the Investors & News section of the Ascendis Pharma website.
Ended the second quarter of 2023 with cash, cash equivalents, and marketable securities totaling €431.1 million.
Subsequent to the quarter end, entered into a $150 million capped synthetic royalty funding agreement with Royalty Pharma. More information on this funding can be found in a separate press release issued today and available here on the Investors & News section of the Ascendis. Pharma website.
Second Quarter 2023 Financial Results

Total revenue for the second quarter of 2023 was €47.4 million compared to €6.2 million during the same period in 2022. The increase was primarily attributable to higher SKYTROFA revenue of €35.9 million compared to €4.4 million in the same period last year.

Research and development (R&D) costs for the second quarter were €105.0 million compared to €90.4 million during the same period in 2022. This increase was primarily due to higher development costs for Ascendis Pharma Oncology programs (TransCon IL-2 β/γ and TransCon TLR7/8 Agonist), increasing clinical trial activities for TransCon CNP, and higher employee-related costs, and was partly offset by lower development costs for TransCon hGH.

Selling, general, and administrative (SG&A) expenses for the second quarter were €70.3 million compared to €56.6 million during the same period in 2022. This increase was primarily due to higher external commercial expenses related to SKYTROFA, pre-launch activities for SKYTROFA outside the U.S., global pre-launch activities for TransCon PTH, higher employee related expenses, and an increase in other general and administrative expenses attributable to organizational growth.

Net finance income was €26.4 million in the second quarter compared to €61.7 million in the same period in 2022.

For the second quarter of 2023, Ascendis Pharma reported a net loss of €121.4 million, or €2.16 per share (basic and diluted) compared to a net loss of €81.3 million, or €1.46 per share (basic and diluted) for the same period in 2022.

As of June 30, 2023, Ascendis Pharma had cash, cash equivalents, and marketable securities totaling €431.1 million compared to €742.9 million as of December 31, 2022. As of June 30, 2023, Ascendis Pharma had 57,335,496 ordinary shares outstanding.

Conference Call and Webcast Information
Ascendis Pharma will host a conference call and webcast today at 4:30 pm Eastern Time (ET) to discuss its second quarter 2023 financial results.

Those who would like to participate may access the live webcast here, or register in advance for the teleconference here. The link to the live webcast will also be available on the Investors & News section of the Ascendis Pharma website at View Source A replay of the webcast will be available on this section of our website shortly after conclusion of the event for 30 days.

Ascendis Pharma and Royalty Pharma Enter into $150 Million Royalty Funding Agreement

On September 5, 2023 Ascendis Pharma A/S (Nasdaq: ASND) and Royalty Pharma plc (Nasdaq: RPRX) reported that Ascendis has entered into a $150 million capped synthetic royalty funding agreement with Royalty Pharma based on U.S. net SKYTROFA revenue (Press release, Ascendis Pharma, SEP 5, 2023, View Source [SID1234634875]).

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"This transaction reflects the significant value of SKYTROFA. We are pleased to partner with Royalty Pharma, a leading funder of innovation across the biopharma industry, and look forward to partnering with them in the coming years," said Jan Mikkelsen, Ascendis Pharma’s President and Chief Executive Officer. "With this funding, we continue to reduce our cost of capital and provide added flexibility to support our global commercial capabilities to bring our TransCon products to patients as fast as possible."

"We are excited to partner with Ascendis, a global, integrated biopharmaceutical company focused on endocrine rare disease and oncology," said Pablo Legorreta, founder and Chief Executive Officer of Royalty Pharma. "SKYTROFA, as the first U.S. approved weekly growth hormone therapy for pediatrics, addresses significant unmet patient need, which is underscored by its strong launch. We look forward to Ascendis’ continued success in reaching as many patients as possible with this important therapy as well as the potential for label expansion in additional indications."

Under the terms of the agreement, Ascendis Pharma receives an upfront payment of $150 million in exchange for a 9.15% royalty on U.S. net SKYTROFA revenue, beginning on January 1, 2025. The royalty payments to Royalty Pharma will cease upon reaching a multiple of 1.925x, or 1.65x if Royalty Pharma receives royalties in that amount by December 31, 2031.

Evercore acted as financial advisor and Latham & Watkins and Mazanti-Andersen acted as legal advisors to Ascendis on the transaction. Goodwin Procter, Kromann Reumert and Fenwick & West acted as legal advisors to Royalty Pharma.

About SKYTROFA (lonapegsomatropin-tcgd)
SKYTROFA (lonapegsomatropin-tcgd) is a prodrug of somatropin, administered once weekly, and designed to provide sustained release of active, unmodified somatropin. The unmodified, unbound parent drug released from lonapegsomatropin is recombinant human growth hormone (hGH; somatropin) that binds to growth hormone receptors throughout the body, with the identical 191 amino-acid sequence and size (22 kDa) as endogenous growth hormone and the growth hormone in daily products. SKYTROFA was developed as TransCon hGH and approved in 2021 by the U.S. Food & Drug Administration for the treatment of pediatric patients 1 year and older who weigh at least 11.5 kg and have growth failure due to inadequate secretion of endogenous growth hormone (GH). SKYTROFA has been studied in over 300 children with GHD across the Phase 3 program which consists of the heiGHt Trial (for treatment-naïve patients), the fliGHt Trial (for treatment-experienced patients), and the enliGHten Trial (an ongoing long-term extension trial), with some patients on SKYTROFA for over four years.

Allogene Therapeutics Announces Participation in September Investor Conference

On September 5, 2023 Allogene Therapeutics, Inc. (Nasdaq: ALLO), a clinical-stage biotechnology company pioneering the development of allogeneic CAR T (AlloCAR T) products for cancer, reported that it will participate in an upcoming investor conference in September (Press release, Allogene, SEP 5, 2023, View Source [SID1234634874]).

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Baird 2023 Global Healthcare Conference
Tuesday, September 12, 2023
12:45PM PT/3:45PM ET

Any available webcasts will be posted to the Company’s website at www.allogene.com under the Investors tab in the News and Events section. Following a live webcast, a replay will be available on the Company’s website for approximately 30 days.

Alkermes to Participate in Two Upcoming Investor Conferences

On September 5, 2023 Alkermes plc (Nasdaq: ALKS) reported that management will participate in fireside chat presentations at two upcoming investor conferences (Press release, Alkermes, SEP 5, 2023, View Source [SID1234634873]).

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Morgan Stanley 21st Annual Global Healthcare Conference

Date/Time: Monday, September 11, 2023 at 11:20 a.m. EDT (4:20 p.m. BST)

Cantor Fitzgerald Global Healthcare Conference

Date/Time: Wednesday, September 27, 2023 at 11:30 a.m. EDT (4:30 p.m. BST)

The live webcasts may be accessed under the Investors tab on www.alkermes.com and will be archived for 14 days.

AIM ImmunoTech to Present at the H.C. Wainwright 25th Annual Global Investment Conference

On September 5, 2023 AIM ImmunoTech Inc. (NYSE American: AIM) ("AIM" or the "Company") reported that Thomas K. Equels, Chief Executive Officer of AIM, will present at the H.C. Wainwright 25th Annual Global Investment Conference being held September 11-13, 2023 in New York, NY and virtually (Press release, AIM ImmunoTech, SEP 5, 2023, https://aimimmuno.com/aim-immunotech-to-present-at-the-h-c-wainwright-25th-annual-global-investment-conference/ [SID1234634872]).

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Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing

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In addition to the presentation, management will be available to participate in virtual one-on-one meetings with qualified members of the investor community who are registered to attend the conference. For more information about the conference, please visit the conference website.

A video webcast of the presentation will be accessible for viewing on-demand beginning on Monday, September 11 at 7:00 AM ET for those registered for the event and will be available on the Events page in the Investors section of the Company’s website (aimimmuno.com). The webcast replay will be archived for 90 days following the event.