InflaRx Reports Third Quarter 2024 Financial Results and Provides Business Update
Achieved 30-patient recruitment milestone in Phase 3 vilobelimab trial in pyoderma gangrenosum (PG) to enable interim analysis, with guidance for trial size adaptation or futility expected by the end of 2Q 2025
InflaRx pipeline highlighted at multiple medical congresses, including vilobelimab in COVID-19 and hidradenitis suppurativa (HS) and INF904
Phase 2a trial for INF904 expected to initiate by year-end 2024, with first data readout expected in summer 2025
European Committee for Medicinal Products for Human Use (CHMP) review of vilobelimab continues, with discussions ongoing and a CHMP opinion anticipated around mid-November
Cash, cash equivalents and marketable securities of €62.0 million, expected to fund operations into 2026
JENA, Germany, Nov. 08, 2024 (GLOBE NEWSWIRE) -- InflaRx N.V. (Nasdaq: IFRX), a biopharmaceutical company pioneering anti-inflammatory therapeutics targeting the complement system, today announced financial results for the three and nine months ended September 30, 2024, and provided an operating update.
Prof. Niels C. Riedemann, Chief Executive Officer and Founder of InflaRx, commented:
"The start of the second half of 2024 has been a time of considerable momentum for the Company, and our leadership position in complement inhibition continues to strengthen. As we consider the remainder of the year, we remain well positioned to start our Phase 2a trial in two immuno-dermatology indications with INF904. We are excited about upcoming expected milestones looking into 2025, including the interim analysis of the vilobelimab Phase 3 trial in pyoderma gangrenosum and the first Phase 2a data readout from INF904."
Guggenheim Securities Inaugural Healthcare Innovation Conference on November 11 - 13, 2024
InflaRx will participate in the Guggenheim Securities Inaugural Healthcare Innovation Conference on November 11, 2024, at 11:00 AM ET / 5:00 PM CET. A link to register for the fireside chat live stream and its replay is available here.
RECENT HIGHLIGHTS AND BUSINESS UPDATE
Oral C5aR inhibitor INF904
In March 2024, InflaRx announced it will pursue two initial immuno-dermatology indications with INF904 in a single Phase 2a basket trial that is expected to begin by the end of 2024, with initial data anticipated in summer 2025. The trial will be a multi-center, open-label study involving 75 patients and evaluating multiple INF904 dosing regimens over 4 weeks of treatment in patients with moderate-to-severe chronic spontaneous urticaria (CSU) and moderate-to-severe HS, both highly debilitating skin conditions. The objective of this Phase 2a trial is to generate additional safety and pharmacokinetic (PK) data and provide signs of clinical benefit, and to inform the design of a Phase 2b trial that InflaRx has a goal to initiate in late 2025.
InflaRx believes CSU and HS both have potential addressable markets of $1 billion or more for INF904. The Company also believes INF904 could address meaningful opportunities in additional immuno-dermatology and immuno-inflammatory indications, including in nephrology, neurology and hematology. While InflaRx intends to focus its resources on its immediate goals addressing CSU and HS, the Company continues to assess and monitor the value of pursuing additional areas and applications via potential future collaborations with partners.
New preclinical findings for INF904 presented at the 19th European Meeting on Complement in Human Diseases (EMCHD)
InflaRx presented two posters on INF904 at the EMCHD. InflaRx believes the collective data presented provided strong evidence of INF904's significant anti-inflammatory and strong PK properties, further supporting the Company's belief that INF904 may have differentiating advantages and best-in-class potential as a member of the C5aR inhibitor drug class.
Vilobelimab in PG, Pivotal Phase 3 trial interim analysis expected by the end of 2Q 2025
Given recent progress in enrollment, InflaRx expects the results of the interim analysis for its ongoing Phase 3 trial of vilobelimab in PG in the second quarter of 2025. The study dosed its first patient in November 2023 and has an adaptive design with an interim analysis blinded for the sponsor and investigators (but unblinded for the independent data safety monitoring committee), which is planned when approximately 30 patients randomized 1:1 to the two arms have completed treatment. The interim analysis with a set of predefined rules will take into account the then-observed difference in complete target ulcer closure between the two arms and will then determine whether the trial sample size will be adapted or whether the trial should be stopped due to futility. The enrollment period is projected to last at least two years, and its overall period will depend on the total trial size after sample size adaptation.
The Phase 3 trial is a multi-national, randomized, double-blind, placebo-controlled pivotal study assessing the benefit of vilobelimab for treating ulcerative PG, a rare, chronic inflammatory form of neutrophilic dermatosis characterized by accumulation of neutrophils in the affected skin areas. The trial has two arms: (1) vilobelimab plus a low dose of corticosteroids tapered over an 8-week period and (2) placebo plus the same dose of corticosteroids. The primary endpoint of the study is complete closure of the target ulcer at any time up to 26 weeks after initiation of treatment.
Vilobelimab has been granted orphan drug designation for the treatment of PG by both the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA), as well as fast track designation by the FDA.
Vilobelimab Marketing Authorization Application (MAA) in the European Union (EU)
In July 2023, InflaRx submitted an MAA for SARS-CoV-2 induced septic acute respiratory distress syndrome (ARDS) receiving invasive mechanical ventilation (IMV) or extracorporeal membrane oxygenation (ECMO) to EMA. In October 2024, the Committee for Medicinal Products for Human Use (CHMP) convened to review the MAA; the regulatory process continues with discussions ongoing between the Company and the CHMP, with a CHMP opinion anticipated around the middle of November.
Should vilobelimab be approved in the EU, InflaRx is weighing options for its commercialization, with an expectation that efforts associated with any potential commercialization will not have a meaningfully negative impact on the Company's cash burn.
GOHIBIC (vilobelimab) medical education program
During the second half of 2024, InflaRx continued its medical education efforts for GOHIBIC (vilobelimab) in COVID-19, with data presentations at multiple congresses in the U.S. and Asia. This included the 20th Annual Congress of International Drug Discovery Science & Technology, CHEST 2024, AMCP Nexus 2024, and ID Week. In addition, InflaRx presented a post hoc analysis of the SHINE trial of vilobelimab in HS at the 2024 European Academy of Dermatology and Venereology Congress.
Dr. Thomas Taapken, Chief Financial Officer of InflaRx, said: "We continue to focus on efficiently utilizing our resources to advance our pipeline of complement inhibitors, with preparations to initiate a Phase 2a trial for INF904 and our continued progress with the ongoing late-stage trial of vilobelimab. InflaRx remains funded into 2026, and we look forward to reaching our next value inflection points."
FINANCIAL HIGHLIGHTS
Revenue
For the nine months ended September 30, 2024, the Company realized revenues from product sales of GOHIBIC (vilobelimab) in the amount of €166 thousand. Revenues reported are sales to end customers (hospitals). All revenues are attributed to sales made in the United States.
Cost of sales
Cost of sales during the nine months ended September 30, 2024 primarily consisted of write-downs of short-lived inventories.
Sales and marketing expenses
Sales and marketing expenses incurred for the nine months ended September 30, 2024 increased by €3.2 million compared to the nine months ended September 30, 2023. This increase is primarily due to GOHIBIC (vilobelimab). Sales and marketing expenses were incurred for all of the nine months ended September 30, 2024
R&D expenses
R&D expenses incurred for the nine months ended September 30, 2024 decreased by €4.5 million compared to the nine months ended September 30, 2023. This decrease is primarily due to higher third-party expenses incurred during the nine months ended September 30, 2023 in connection with our efforts to develop the commercial manufacturing process and to obtain an EUA for GOHIBIC (vilobelimab). The decrease of third-party expenses is offset by an increase of personnel expenses by €1.3 million. This increase is attributed to higher stock-based compensation expenses.
General and administrative expenses
General and administrative expenses decreased by €0.4 million to €9.6 million for the nine months ended September 30, 2024, from €10.0 million for the nine months ended September 30, 2023.
Other income
Other income for the nine months ended September 30, 2024 amounted to €0.2 million (PY: €13.4 million). There was no income from government grants in 2024 due to the end of the grant period of the German government grant to support the development of vilobelimab or the treatment of critically ill COVID-19 patients on June 30, 2023.
Net financial result
Net financial result decreased by €2.6 million to €2.3 million for the nine months ended September 30, 2024, from €4.9 million for the nine months ended September 30, 2023. This decrease was mainly attributable to a lower foreign exchange result, which decreased by €2.2 million.
Net loss
Net loss for the first nine months of 2024 amounted to €41.0 million, compared to €26.7 million in the first nine months of 2023. This decrease was primarily due to a decrease in other income of € 13.2 million compared to the same period in the prior year, because there was no income from government grants in 2024 due to the end of the grant (i.e. German government grant for the development of vilobelimab for the treatment of critically ill COVID-19 patients) period on June 30, 2023.
Net cash used in operating activities
Net cash used in operating activities for the first nine months of 2024 increased to €36.7 million from €26.9 million for the comparable period in 2023. This increase is related to the decrease in other operating income from the government grant in 2024, as the grant period ended on June 30, 2023.
Liquidity and capital resources
As of September 30, 2024, InflaRx's total available funds amounted to €62.0 million, composed of €26.2 million in cash and cash equivalents and €35.8 million in marketable securities.
From the €26.2 million cash and cash equivalents, €4.2 million are held in EURO and €24.6 million are held in USD, this is equivalent to €22.0 million at an exchange rate of 1.1196 on 30 September 2024. All marketable securities are held in USD and have a nominal value of $40.5 million. These funds are expected to finance operations into 2026.
Additional financial information
Additional information regarding these results and other relevant information is included in the notes to the unaudited interim condensed consolidated financial statements as of September 30, 2024, as well as the consolidated financial statements as of and for the year ended December 31, 2023, in "ITEM 18. Financial Statements," in InflaRx's annual report on Form 20-F for the year ended December 31, 2023, as filed with the U.S. Securities and Exchange Commission (SEC) on March 21, 2024.
InflaRx N.V. and subsidiariesUnaudited condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2024 and 2023
For the three months ended September 30,
For the nine months ended September 30
2024(unaudited)
2023(unaudited)
2024(unaudited)
2023(unaudited)
(in €, except for share data)
Revenues
123,819
60,803
166,212
60,803
Cost of sales
72,555
(255,116
)
(496,119
)
(255,116
)
Gross profit (loss)
196,374
(194,313
)
(329,907
)
(194,313
)
Sales and marketing expenses
(1,707,748
)
(1,562,473
)
(4,995,915
)
(1,838,524
)
Research and development expenses
(11,140,152
)
(7,305,541
)
(28,458,832
)
(32,957,044
)
General and administrative expenses
(2,809,032
)
(2,897,732
)
(9,614,281
)
(10,047,091
)
Other income
101,108
808,866
153,839
13,437,963
Other expenses
(589
)
339
(297
)
(2,851
)
Operating result
(15,360,039
)
(11,150,854
)
(43,245,392
)
(31,601,861
)
Finance income
768,326
1,189,826
2,522,475
2,732,873
Finance expenses
(5,032
)
(4,897
)
(15,876
)
(15,476
)
Foreign exchange result
(2,847,692
)
2,292,938
(311,905
)
1,923,274
Other financial result
—
221,577
103,285
223,818
Income taxes
(5,217
)
—
(5,217
)
—
Income (loss) for the period
(17,449,654
)
(7,451,410
)
(40,952,630
)
(26,737,373
)
Other comprehensive income (loss) that may be reclassified to profit or loss in subsequent periods:
Exchange differences on translation of foreign currency
(75,418
)
73,574
(72,582
)
56,459
Total comprehensive income (loss)
(17,525,072
)
(7,377,836
)
(41,025,212
)
(26,680,914
)
Share information (based on income (loss) for the period)
Weighted average number of shares outstanding
58,883,272
58,883,272
58,883,272
53,598,594
Income (loss) per share (basic/diluted)
(0.30
)
(0.13
)
(0.70
)
(0.50
)
InflaRx N.V. and subsidiariesUnaudited condensed consolidated statements of financial position as of September 30, 2024 and December 31, 2023
September 30, 2024(unaudited)
December 31, 2023
(in €)
ASSETS
Non-current assets
Property and equipment
260,240
289,577
Right-of-use assets
850,001
1,071,666
Intangible assets
43,831
