 AUSTIN, Texas, Aug. 06, 2020 GLOBE NEWSWIRE -- Molecular Templates, Inc. Nasdaq: MTEM, Molecular Templates, MTEM or the Company, a clinical-stage biopharmaceutical company focused on the discovery and development of proprietary targeted biologic therapeutics, engineered toxin bodies ETBs, today reported financial results for the second quarter of 2020. Since our last quarterly update, we presented preclinical data at AACR on four preclinical ETB programs, provided an update on the ongoing Phase I study for MT-5111, and strengthened our balance sheet through a new debt facility and our ATM, said Eric Poma, Ph.D., Molecular Templates Chief Executive and Chief Scientific Officer. In the second half of 2020, we expect to report interim clinical data from our three MT-3724 Phase 2 studies and additional data from the MT-5111 Phase 1 study, and also file the IND for MT-6402, our PD-L1-targeted ETB with antigen seeding.Company Highlights, Pipeline Status, and Upcoming MilestonesCorporate On May 22, 2020, MTEM announced it had secured a debt financing facility for up to 45 million from K2 HealthVentures, a healthcare-focused specialty finance company. MTEM received a first tranche of 15 million upon closing. Two subsequent tranches totaling 30 million will become available upon the achievement of certain milestones. In July 2020, MTEM raised 50 million in gross proceeds from its At-The-Market Facility ATM.MT-3724 CD20 ETB MTEM is currently conducting three Phase 2 studies with MT-3724 in relapsedrefractory diffuse large B-cell lymphoma DLBCL: a monotherapy study that has the potential to be pivotal, a combination study with chemotherapy, and a combination study with lenalidomide. Interim results for the study of MT-3724 in combination with lenalidomide were presented at the 25th Congress of the European Hematology Association EHA virtual meeting in June 2020. This data demonstrated preliminary evidence of tolerability and efficacy with lenalidomide at standard doses and MT-3724. Among 7 evaluable subjects, 2 had CRs and 3 had PRs. While there were no permanent discontinuations due to adverse events, grade 2 capillary leak syndrome occurred at 25 mcgkg, leading to the opening of a new cohort at 20 mcgkg. The study now has a new schedule of therapy with MT-3724 being dosed twice rather than three times weekly for the first two cycles, and then on a weekly schedule thereafter. MTEM expects to report updates on all three MT-3724 DLBCL studies in 2H20. MTEM also expects to initiate Phase 2 studies for MT-3724 in follicular lymphoma and mantle cell lymphoma in 2H20. TAK-169 CD38 ETB Takeda and MTEM are conducting an ongoing Phase 1 study evaluating TAK-169 in relapsedrefractory multiple myeloma.MT-5111 HER2 ETB MTEM is conducting a Phase 1 study of MT-5111 in HER2-positive cancers. In June 2020, MTEM provided an interim update from the first three dose cohorts of the dose escalation portion of the Phase 1 study. That update noted that 10 subjects, with a median of 5 prior lines of therapy and a median of 2 prior HER2-targeting regimens, have been treated with MT-5111 metastatic cholangiocarcinoma n5, metastatic breast cancer n4, metastatic gastro-esophageal junction carcinoma n1. Thus far, no dose limiting toxicities DLTs have been observed in any cohort and MT-5111 appears to be well tolerated, with no cardiotoxicity observed to date cardiotoxicity is a known potential toxicity for HER2 targeted therapies. Further to the June 2020 interim update, MTEM expects to provide an update on results from the subjects still on treatment as well as higher dose cohorts from the dose escalation portion of the Phase 1 study including doses that are predicted to be clinically active based on preclinical data in 4Q20.Research MTEM presented preclinical data on ETB programs targeting PD-L1, CTLA-4, SLAMF-7 and CD45 at the American Association for Cancer Research AACR Virtual Annual Meeting II, which took place June 22-24, 2020. MTEM expects to file an investigational new drug IND application for MT-6402, its ETB targeting PD-L1 with antigen seeding, in 2H20. MTEM expects to file an IND application for its ETB targeting CTLA-4 in 2021.COVID-19 Impact The COVID-19 pandemic has resulted in a significant slowdown in the pace of site initiations and patient enrollment across our MT-3724 Phase 2 programs. Much like other sponsors with studies in patients with hematologic malignancies, we are working with sites to determine when a patient is suitable for each research study and to ensure the continued safety of all research participants. To date, screening and enrollment for the MT-5111 Phase 1 study has been less adversely affected than the MT-3724 studies but it is enrolling at slower pace than was projected pre-COVID-19. To date, MTEM has been able to continue to work at its cGMP manufacturing facility and laboratories without interruption from COVID-19. As a result, manufacturing of product supply for clinical trials and research activities to support advancement of our preclinical pipeline including partnered programs have not been adversely affected by COVID-19 to date.Financial Results The net loss attributable to common shareholders for the second quarter of 2020 was 31.2 million, or 0.68 per basic and diluted share. This compares with a net loss attributable to common shareholders of 9.2 million, or 0.25 per basic and diluted share, for the same period in 2019.Revenues for the second quarter of 2020 were 6.9 million, compared to 5.4 million for the same period in 2019. Revenues for the second quarter of 2020 were comprised of revenues from collaborative research and development agreements with Takeda and Vertex, as well as grant revenue from CPRIT. Total research and development expenses for the second quarter of 2020 were 30.4 million, compared with 10.2 million for the same period in 2019. Total general and administrative expenses for the second quarter of 2020 were 6.4 million, compared with 4.6 million for the same period in 2019.As of June 30, 2020, MTEMs cash and investments totaled 91.0 million. With the addition of 50 million in gross proceeds raised through MTEMs ATM facility after the end of the quarter, MTEM expects to be able to fund operations into 2H22.About Molecular TemplatesMolecular Templates is a clinical-stage company focused on the discovery and development of targeted biologic therapeutics. Our proprietary drug platform technology, known as engineered toxin bodies, or ETBs, leverages the resident biology of a genetically engineered form of Shiga-like Toxin A subunit to create novel therapies with potent and differentiated mechanisms of action for cancer and other serious diseases.Forward-Looking Statements This press release contains forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 the Act. Molecular Templates disclaims any intent or obligation to update these forward-looking statements, and claims the protection of the Acts Safe Harbor for forward-looking statements. All statements, other than statements of historical facts, included in this press release regarding strategy, future operations, future financial position, future revenue, projected expenses, prospects, plans and objectives of management are forward-looking statements. In addition, when or if used in this press release, the words may, could, should, anticipate, believe, estimate, expect, intend, plan, predict and similar expressions and their variants, as they relate to Molecular Templates may identify forward-looking statements. Examples of such statements include, but are not limited to, statements relating to the development of the MT-3724, MT-5111, TAK-169, and MT-6402; the expected timing of submitting various IND applications and conducting studies; the expected participation and presentation at upcoming medical conferences; the anticipated effects of the COVID-19 pandemic on the Companys ongoing clinical studies, manufacturing and preclinical development; and the Companys belief that its proprietary biologic drug platform technology, or ETBs, provides for a differentiated mechanism of action that may address some of the limitations associated with currently available cancer therapeutics.Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual events or results may differ materially from those discussed in the forward-looking statements as a result of various factors including, but not limited to, the uncertainties inherent in the preclinical and clinical development process; whether the Companys cash resources will be sufficient to fund its continuing operations for the periods andor trials anticipated; the ability of the Company to protect its intellectual property rights; risks from global pandemics including COVID-19; and legislative, regulatory, political and economic developments, as well as those risks identified under the heading Risk Factors in the Companys filings with the SEC. Any forward-looking statements contained in this press release speak only as of the date hereof, and the Company specifically disclaims any obligation to update any forward-looking statement, whether because of new information, future events or otherwise.Contact:Adam Cutler Chief Financial Officer 862-204-4006 Molecular Templates, Inc. 