 BERKELEY, Calif., Aug. 03, 2020 GLOBE NEWSWIRE -- Aduro Biotech, Inc. NASDAQ: ADRO, a clinical-stage biopharmaceutical company focused on developing therapies targeting the A Proliferation Inducing Ligand APRIL and Stimulator of Interferon Genes STING pathways for the treatment of cancer, autoimmune and inflammatory diseases, today provided a business update and reported financial results for the second quarter ended June 30, 2020.The second quarter of 2020 was highlighted by the announcement of our planned merger with Chinook Therapeutics as well as significant progress in our BION-1301 program for IgA nephropathy IgAN. We recently dosed the first IgAN patient with BION-1301 in Part 3 of our ongoing Phase 1 study and presented positive data from Parts 1 and 2 of this study in healthy volunteers at the 57th ERA-EDTA Virtual Congress. The data indicated BION-1301 was well-tolerated, had a half-life of approximately 33 days, achieved over 90 target engagement with a single 450 mg dose of BION-1301 and demonstrated dose-dependent and durable reductions in IgA and IgM levels, and to a lesser extent, IgG levels, said Stephen T. Isaacs, chairman, president and chief executive officer of Aduro. We continue to enroll patients in our Phase 2 study of ADU-S100 in combination with pembrolizumab in squamous cell carcinoma of the head and neck and make progress on our cGAS-STING antagonist research collaboration with Lilly. Isaacs continued, We ended the second quarter of 2020 with a cash position of 186.1 million, which we believe will enable us to continue our ongoing STING and APRIL programs in the near-term and also meet our net cash requirements at the close of the merger with Chinook. Recent Highlights Announced definitive merger agreement with Chinook Therapeutics, which is expected to close in the second half of 2020, subject to the satisfaction or waiver of the conditions to completion of the merger. Following completion of the merger, the combined company will operate as Chinook Therapeutics and advance a pipeline of precision medicines for kidney diseases, led by atrasentan and BION-1301 in IgAN, assuming satisfaction of the conditions to closing the merger. Presented healthy volunteer data from Part 1 single ascending dose and Part 2 multiple ascending dose of the ongoing Phase 1 study of BION-1301 at the 57th ERA-EDTA Virtual Congress. Presented nonclinical toxicology studies of BION-1301 evaluating intravenous administration for up to six months and subcutaneous administration for up to one month at the 57th ERA-EDTA Virtual Congress. Dosed the first patient with IgAN in Part 3 of the ongoing Phase 1 study of BION-1301.Financial Results Cash Position Cash, cash equivalents and marketable securities totaled 186.1 million at June 30, 2020, compared to 213.6 million at December 31, 2019. Cash spend year to date was offset by the receipt of a 10 million development milestone payment from Merck in the first quarter of 2020. Revenue Revenue was 5.6 million for the second quarter of 2020 and 19.5 million for the six months ended June 30, 2020, compared to 4.9 million and 8.8 million, respectively for the same periods in 2019. The increase in revenue for the quarter was primarily due to fluctuations in revenue recognized under our Novartis collaboration which is dependent on clinical timelines and progress under the research and collaboration agreement. In addition to the Novartis collaboration, the increase in revenue for the year to date period included the recognition of the 10.0 million development milestone payment received under our license and research collaboration agreement with Merck. Expenses Research and development expenses were 11.1 million for the second quarter of 2020 and 26.9 million for the six months ended June 30, 2020, compared to 16.7 million and 34.2 million, respectively, for the same periods in 2019. The decrease in expense from 2019 to 2020 was primarily due to 2019 costs related to the deprioritized programs that were substantially wound down in 2019 offset by higher costs for our STING and APRIL programs. The decrease was also attributable to lower compensation and related personnel costs as well as stock-based compensation as compared to 2019 due to reduced headcount as a result of the January 2020 restructuring. General and administrative expenses were 9.3 million for the second quarter of 2020 and 17.1 million for the six months ended June 30, 2020, compared to 7.8 million and 16.1 million, respectively, for the same periods in 2019. The quarter and year to date increases were due to higher professional services expenses associated with the merger transaction, the increase was offset by lower personnel and stock-based compensation expense, as compared to 2019, due to reduced headcount as a result of the January 2020 restructuring. Restructuring and related expenses were 2.0 million for the second quarter of 2020 and 6.4 million for the six months ended June 30, 2020, compared to 0.4 million and 3.4 million, respectively, for the same periods in 2019. The year to date restructuring and related expenses consisted of severance and employee retention costs as well as the impairment of property and equipment associated with the planned closure of the Aduro Biotech Europe facility in Oss, The Netherlands as part of the January 2020 corporate restructuring plan. The 3.4 million restructuring and related expenses recorded in 2019, which included employee severance and retention payments, related to the January 2019 strategic reset. Net Loss Net loss for the second quarter of 2020 was 16.6 million or 0.21 per share and 24.2 million or 0.30 per share for the six months ended June 30, 2020, compared to net loss of 18.6 million or 0.23 per share and 42.0 million or 0.53 per share, respectively, for the same periods in 2019. In addition to the factors described above, the net loss was offset by approximately 5.6 million of income tax benefit related to an income tax carryback claim allowed by the Coronavirus Aid, Relief, and Economic Security Act CARES Act. The income tax refund is expected to be received in the second half of 2020.About Aduro Aduro Biotech, Inc. is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of therapies that are designed to harness the bodys natural immune system for the treatment of patients with challenging diseases. Aduros product candidates in the A Proliferation Inducing Ligand APRIL and Stimulator of Interferon Genes STING pathways are being investigated in cancer, autoimmune and inflammatory diseases. BION-1301, an investigational humanized IgG4 monoclonal antibody that blocks APRIL binding to both the BCMA and TACI receptors, is being evaluated in IgA nephropathy. ADU-S100 MIW815, which is designed to activate the intracellular STING receptor for a potent tumor-specific immune response, is being evaluated in combination with KEYTRUDA pembrolizumab, an approved anti-PD-1 monoclonal antibody, as a potential first-line treatment for patients with recurrent or metastatic squamous cell carcinoma of the head and neck SCCHN. Aduro is collaborating with a number of leading global pharmaceutical companies to help expand and drive its product pipeline. For more information, please visit Information and Where to Find It Aduro has filed a Registration Statement on Form S-4 containing a proxy statementprospectus of Aduro and other documents concerning the proposed merger with the SEC. BEFORE MAKING ANY VOTING DECISION, ADUROS STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENTPROSPECTUS IN ITS ENTIRETY AND ANY OTHER DOCUMENTS FILED BY ADURO WITH THE SEC IN CONNECTION WITH THE PROPOSED MERGER OR INCORPORATED BY REFERENCE THEREIN BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND THE PARTIES TO THE PROPOSED TRANSACTION. Security holders may obtain a free copy of the proxy statementprospectus and other documents filed by Aduro with the SEC at the SECs website at Investors and stockholders will be able to obtain a free copy of the proxy statementprospectus and other documents containing important information about Aduro and Chinook, once such documents are filed with the SEC, through the website maintained by the SEC at Aduro makes available free of charge at in the Investor Relations section, copies of materials that Aduro files with, or furnishes to, the SEC.Participants in the Solicitation This communication does not constitute a solicitation of proxy, an offer to purchase or a solicitation of an offer to sell any securities. Aduro and Chinook, and each of their respective directors, executive officers and certain employees may be deemed to be participants in the solicitation of proxies from the stockholders of Aduro in connection with the proposed merger. Security holders may obtain information regarding the names, affiliations and interests of Aduros directors and officers in Aduros Annual Report on Form 10-K for the fiscal year ended December 31, 2019, which was filed with the SEC on March 9, 2020, and its definitive proxy statement for the 2020 annual meeting of stockholders, which was filed with the SEC on March 24, 2020. To the extent the holdings of Aduros securities by Aduros directors and executive officers have changed since the amounts set forth in Aduros proxy statement for its 2020 annual meeting of stockholders, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC. 