Werewolf Therapeutics Reports Second Quarter 2021 Financial Results and Business Update

CAMBRIDGE, Mass., Aug.12, 2021 (GLOBE NEWSWIRE) – Werewolf Therapeutics, Inc. (the “Company” or “werewolf”) (Nasdaq: HOWL), an innovative biopharmaceutical company pioneering the development of conditionally activated therapeutics designed to boost the body’s immune system for the treatment of cancer, provided a business update today and released financial results for the quarter ended June 30, 2021.

“We continue to advance our immuno-oncology R&D organization by adding additional expertise with a new CTO and board member,” said Daniel J. Hicklin, Ph.D., president and director general of Werewolf. “Following the successful completion of our IPO in early May, we believe we are well capitalized to achieve key upcoming milestones, such as the IND filing for our two main product candidates INDUKINE ™, WTX-124 and WTX-330 , and continue our efforts towards a safer and highly effective alternative to existing cancer treatments.

Initial public offering successfully concluded: Werewolf completed its initial public offering (“IPO”) in May 2021. As part of the offer, the Company issued and sold 7,500,000 common shares at a public offer price of 16, $ 00 per share, which generated net proceeds of approximately $ 109.2 million.

Reinforced management team: Werewolf appointed Chulani Karunatilake, Ph.D. as CTO in June 2021. With over 30 years of experience in chemistry and development of manufacturing processes and strategies, Dr. Karunatilake oversees manufacturing operations in the newly created role.

Adding expertise to the board of directors: Werewolf appointed Mike Sherman as a member of the Board of Directors in May 2021. Currently Managing Director of Chimerix, Inc., Mr. Sherman brings over 30 years of experience advancing therapeutics to launch commercial and in leading companies to successful and strategic operations.

Added to the Russell 2000® Index: Werewolf was added to the Russell 2000® Index following the annual reconstitution of the Russell US Indexes at the end of June 2021.

Second Quarter 2021 Financial Highlights

  • Cash position: As at June 30, 2021, cash and cash equivalents increased to $ 183.2 million, compared to $ 92.6 million as at December 31, 2020. This increase is mainly due to the receipt of $ 109.2 million. dollars in net proceeds from the initial public offering concluded in May 2021, offset by operating expenses incurred during the period. Given its strong balance sheet, Werewolf expects its existing cash and cash equivalents to support its operating expenses and capital expenditure needs until at least the second quarter of 2023.

  • Research and development costs: Research and development expenses amounted to $ 7.3 million for the second quarter of 2021, compared to $ 3.8 million for the same period in 2020. The increase in research and development expenses is mainly due increased manufacturing, contract research organization and personnel costs incurred to advance the Company’s product candidates WTX-124, WTX-330 and WTX-613 and expand research activities and development.

  • General and administrative expenses: General and administrative expenses amounted to $ 3.7 million for the second quarter of 2021, compared to $ 1.3 million for the same period in 2020. The increase in general and administrative expenses is mainly due to the ” increased personnel costs, recruitment and other operating costs attributable to operating as a public enterprise.

  • Net loss: The net loss was $ 10.9 million for the second quarter of 2021, compared to $ 2.3 million for the same period in 2020.

About Werewolf Therapeutics:

Werewolf Therapeutics, Inc. is an innovative biopharmaceutical company pioneering the development of therapeutics designed to boost the body’s immune system for the treatment of cancer. We are leveraging our proprietary PREDATOR ™ platform to design conditionally activated molecules that stimulate both adaptive and innate immunity to meet the limitations of conventional pro-inflammatory immune therapies. Our INDUKINE ™ molecules are intended to remain inactive in peripheral tissues while activating selectively in the tumor microenvironment. Our most advanced product candidates, WTX-124 and WTX-330, are systemically activated interleukin-2 (IL-2) and interleukin-12 (IL-12) INDUKINE molecules, respectively, for the treatment of solid tumors. We are continuing preclinical studies for WTX-124 and WTX-330 and plan to advance each candidate in multiple tumor types as a single agent and in combination with an immune checkpoint inhibitor.

Caution Regarding Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release, including statements regarding Werewolf’s strategy, future operations, outlook, plans, management objectives, expected timeline for submission requests for new investigational drugs and the adequacy of its cash resources constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “aim”, “anticipate”, “believe”, “continue”, “could”, “Estimate”, “expect”, “intend,” “may”, “could”, “objective”, “in progress”, “plan”, “potential”, “predict”, “plan”, “should”, “target”, “will” or “would”, or the negative of these terms, or other comparable terms, are intended to identify forward-looking statements, although not all forward-looking statements contain these words. ‘identification. The Company may not actually carry out the plans, intentions or expectations disclosed in these forward-looking statements, and you should not place undue reliance on such forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements due to various important factors, including: uncertainties inherent in the development of product candidates, including the conduct of research, launch and the performance of preclinical studies and clinical trials; uncertainties regarding the availability and timing of results from preclinical studies; the timing and our ability to submit and obtain regulatory approval for new investigational drug applications; whether the results of preclinical studies will predict the results of preclinical studies and subsequent clinical trials; the Company’s ability to obtain sufficient cash resources to finance the Company’s foreseeable and unforeseeable operating expenses and its capital expenditure needs; the impact of the COVID-19 pandemic on the Company’s business and operations; as well as the risks and uncertainties identified in the “Risk Factors” section of the Company’s most recent Form 10-Q filed with the Securities and Exchange Commission (“SEC”) and in subsequent filings the Company may make with of the SEC. In addition, the forward-looking statements included in this press release represent the views of the Company as of the date of this presentation. The Company expects subsequent events and developments to result in a change of opinion. However, although the Company may choose to update these forward-looking statements at some time in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be taken as representing the views of the Company as of a date subsequent to the date of this press release.

Werewolf Therapeutics, Inc.
Condensed Consolidated Statements of Income (unaudited)
(amounts in thousands, except data per share)

Three months ended
June 30th

Six months ended
June 30th

2021

2020

2021

2020

Operating costs :

Research and development

$

7,265

$

3,780

$

12 082

$

6 543

general and administrative

3,691

1,285

6,326

2,416

Total operating expenses

10 956

5,065

18,408

8 959

Operating loss

(10 956

)

(5,065

)

(18,408

)

(8,959

)

Other income

35

7 322

52

7 389

Net income (loss)

(10 921

)

2 257

(18,356

)

(1,570

)

Accretion of convertible preferred shares redeemable at redemption value

(56,926

)

(31

)

(151,942

)

(31

)

Net income (loss) attributable to common shareholders

$

(67,847

)

$

2,226

$

(170,298

)

$

(1601

)

Net income (loss) per share attributable to common shareholders, basis

$

(3.82

)

$

2.35

$

(17.86

)

$

(1.80

)

Net earnings (loss) per share attributable to common shareholders, diluted

$

(3.82

)

$

0.22

$

(17.86

)

$

(1.80

)

Weighted average common shares outstanding, basic

17,750

947

9,535

891

Weighted average of ordinary shares outstanding, diluted

17,750

10,327

9,535

891

Werewolf Therapeutics, Inc.
Selected condensed consolidated balance sheet data (unaudited)
(amounts in thousands)

June 30, 2021

December 31, 2020

Cash and cash equivalents

$

183 233

$

92 570

Working capital

$

178,989

$

87 630

Total assets

$

190,418

$

96,398

Total equity (deficit)

$

181,556

$

(51 863

)

Investor contact:

Alain Lada
Solebury Trout
617.221.8006
[email protected]

Media contact:

Amanda sellers
VERGE Scientific Communication
301.332.5574
[email protected]

Company details :

Ellen lubman
Entrepreneur
Werewolf therapy
[email protected]

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