GlobeNewswire Inc | Sep 9, 2021 01:00PM EDT

September 09, 2021

Developing Next generation Standard of Care Ophthalmic Therapies

Addressing Unmet Medical Needs in Retinal Vascular Disorders

Highlights

Pipeline

-- Patient recruitment initiated in Phase 2 trial evaluating THR-687 for first line DME -- Part A data from Phase 2 study evaluating THR-149 in second line DME fully recruited, with data expected end of September, early October 2021

Corporate

-- Tom Graney, CFA, promoted to CEO in orderly transition -- Patrik De Haes, M.D., appointed non-executive Chairman -- Organization adapted to focus resources on developing THR-149 and THR-687 -- Cash position of 10 million as of end June 2021 -- Negma Group and others made capital commitments for the next 12 months for the amount of 23.4 million under certain conditions, which, together with other possible sources of funding not committed as of today and/or reductions in investments, have the potential to extend Companys cash runway to August 2022

Science

-- Multiple conference presentations and publications demonstrating the strong retinal science underpinning Oxurions clinical pipeline

Leuven, BE, Boston, MA, US September 9, 2021 06.00 PM CET Oxurion NV (Euronext Brussels: OXUR), a biopharmaceutical company developing next generation standard of care ophthalmic therapies, with a clinical stage portfolio in retinal vascular disorders, today issues its business and financial update for the six month period ending June 30, 2021.

Oxurion is advancing its pipeline of innovative clinical drug candidates targeting the treatment of retinal disorders.

The Companys clinical development pipeline, initially focusing on diabetic macular edema (DME), consists of two novel product candidates with different and complementary modes of action:

-- THR-149 is a potential first in class plasma kallikrein inhibitor with the possibility to become the second line treatment of choice for DME patients showing suboptimal response to anti-VEGF therapy. -- THR-687 is a potential best in class small molecule pan-RGD integrin antagonist being developed to treat DME with the possibility to become a first line therapy for most DME patients. Beyond DME, THR-687 also has development possibilities in additional vascular retinal disorders including for wet age-related macular degeneration (wet AMD) and retinal vein occlusion (RVO), potentially allowing the Company to tap into a broader therapeutic market with a current combined estimated annual value of $12 billion.

Tom Graney, CFA, CEO of Oxurion,commented Oxurion has made excellent progress during 2021 as we have taken steps to focus our resources on the clinical development of THR-149 and THR-687. We expect to report the first data from Part A of our Phase 2 study of THR-149 in patients with DME at the end of this month or the beginning of October. If successful, this milestone will allow us to demonstrate proof of concept and initiate Part B of this study, which will compare THR-149 to current standard of care aflibercept, immediately thereafter.

We recently started recruitment of patients in our Phase 2 DME trial with THR-687, a drug candidate for which we have very high hopes given its potential to become a first line treatment option for this sight threatening eye disease. We are also looking to expand the market opportunity for THR-687 by potentially developing it for both wet AMD and RVO.

Taken together, successfully developing these two exciting, novel and differentiated back of the eye drug candidates would allow Oxurion to generate significant value given they are targeting potential market opportunities of over $12 billion combined.

We look forward to reporting on our progress as we deliver further value inflection points for both THR-149 and THR-687, including very important THR-149 Part A data in the near future.

Pipeline Update

THR-149 Part A data from Phase 2 study in DME expected end September/ begin October

In June, Oxurion announced the completion of patient enrollment into Part A of its Phase 2 study (KALAHARI) evaluating multiple injections of THR-149 for the treatment of DME patients previously showing suboptimal response to anti-VEGF therapy.

Dose selection based on the data from Part A of the study is expected end September, early October.

The Phase 2 KALAHARI study is a two-part, randomized, prospective, multicenter study assessing multiple (3) injections of THR-149 in DME patients previously showing suboptimal response to anti-VEGF therapy.

In Part A of the study, three dose levels of THR-149, each administered in 3 monthly intravitreal injections, are being tested in at least 18 patients to select the optimal dose for Part B.

Part B is the double-masked, active-controlled part of the study with the dose selected from Part A studied against aflibercept as the active comparator.

Final topline results from this statistically powered Part B of the study are expected in the first half of 2023.

THR-687 Patient Recruitment ongoing in Phase 2 study in DME

In August, Oxurion started recruitment of patients in its Phase 2 clinical study evaluating THR-687 in patients with DME (INTEGRAL). The INTEGRAL study is a Phase 2, randomized, multicenter trial and is the first study in which multiple intravitreal injections of THR-687 will be administered in humans.

The two-part study will assess different dose levels of multiple THR-687 injections (Part A) and go on to evaluate the efficacy and safety of THR-687 versus aflibercept (the current standard of care) for the treatment of DME (Part B).

Part A is being conducted in treatment nave subjects to select the THR-687 dose level to be assessed in Part B.

Part B, the statistically powered part of this phase 2 study, will be conducted in both treatment nave and treatment experienced subjects to evaluate the efficacy and safety of the dose level selected from Part A when compared to aflibercept.

The Part B primary endpoint is the change in best corrected visual acuity (BCVA) from baseline at month 3.

The dose selection decision, following Part A, is anticipated in the first half of 2022 with top line data from Part B expected in the second half of 2023.

Beyond DME, THR-687 has the potential to be developed for additional vascular retinal disorders including wet AMD and RVO.

Corporate Update

Tom Graney, CFA promoted to Chief Executive Officer

In May, Oxurion announced the promotion of Tom Graney, CFA from Chief Financial Officer (CFO) to Chief Executive Officer (CEO) in a planned succession and he was appointed to the Board in July. He took over from Patrik De Haes, M.D., who after 14 years as CEO, decided to move away from day-to-day management of the Company to become the non-executive Chairman. Thomas Clay, the outgoing Chairman of Oxurion, remains on the Board as a non-executive Director of the Company and Chairman of the Nominations and Remuneration Committee.

Mr. Graney has extensive capital markets and business development experience in biotech as the CFO of several successful public companies, including Vertex. This includes having raised more than $500M in capital for highly innovative companies like Oxurion and executing a number of value creating business development transactions. The Company intends to rely on Toms extensive capital markets experience to explore a dual listing in the United States in addition to other sources of funding. Tom also has a track record of developing high performing teams and talent everywhere he has worked both in the United States and Europe.

Organizational Changes to Focus Resources on Clinical Assets THR-687 and THR-149

In June, Oxurion announced a plan to better align its organizational resources towards its key priority - executing its clinical development strategy for its two novel programs, THR-687 and THR-149. As a result, Oxurion will no longer make direct investments in non-core activities, including research in dry AMD and oncology (Oncurious).

As a result of the focus on its clinical assets, Oxurion decided to reduce its headcount by 10 people in June. After undertaking further discussions with third parties about the possibility of exploiting the non-core assets, a decision was taken in August to further reduce the workforce by four positions. All of individuals impacted are receiving the Companys support in finding a next position outside of the Company.

The Company also made key additions to its leadership team in order to further strengthen its capability to execute its ongoing clinical development. This included the appointment of Hanne Callewaert, PhD, as Chief Operating Officer, and Vincent Baeyens, PhD, to Head of Clinical Operations. Grace Chang, M.D., has departed her position as Chief Medical Officer to pursue other opportunities.

Hanne Callewaert, PhD. Prior to being appointed Chief Operations Officer of Oxurion NV, Hanne Callewaert was heading up the Regulatory Affairs team and was involved in Business Development and Alliance Management. Before joining Oxurion, Hanne gained extensive drug development expertise at GlaxoSmithKline Vaccines by occupying several roles in Regulatory Affairs as well as serving as Vaccine Development Leader. Hanne holds a PhD in Medical Sciences from the University of Leuven, a masters degree in Biomedical Sciences from the University of Leuven, as well as a masters degree in Intellectual Property Law from the University of Leuven and Brussels.

Vincent Baeyens, PhD. Vincent Baeyens joined Oxurion in June with over 25 years global R&D and clinical operations leadership experience in the ophthalmic space. Most recently, he served as Senior Director Global Clinical Operations EMEA at Santen. Prior to that, he worked 13 years for TRB Chemedica International as Associate Director Ophthalmology R&D where he led the global Research and Development division of Ophthalmology and as Senior Project Development Director. Vincent is also a trainer at ECCRT (Brussels) on CRO management and oversight. Vincent holds a masters degree in Pharmacy, from the University of Louvain, Louvain-la-Neuve and a PhD in Pharmaceutical Science, Ophthalmology from the University of Geneva, Switzerland.

These changes followed a detailed review of the Companys operations and growth opportunities and are designed to maximize value creation in the most capital efficient way, whilst safeguarding Oxurions scientific and clinical leadership position in the global retina community. Scientific Update

Conference presentations and publications highlight Oxurions retinal science

During 2021, Oxurion has continued to demonstrate the quality of the science that underpins its R&D activities via a number of conference presentations and publications.

In May, the Company presented novel scientific data at the Association for Research in Vision and Ophthalmology (ARVO) 2021 Annual Meeting. The presentation entitled, The Mouse Sodium Iodate Model Exhibits Acute Retinal Inflammation, covered data supporting the use of this model for the investigation of age-related macular degeneration (AMD) hallmarks.

In August, Oxurion announced that the results of the positive Phase 1 study with THR-687, had been published in Ophthalmology Science, the prestigious journal of the American Academy of Ophthalmology.

Also in August, Oxurion announced the publication of two related papers in the Journal of Pharmacokinetics and Pharmacodynamics entitled Systemic exposure following intravitreal administration of therapeutic agents: an integrated pharmacokinetic approach.

These papers described the pharmacokinetic properties of THR-149 and THR-687 following intravitreal injection in animals and utilize novel pharmacokinetic models developed by Oxurion to accurately describe systemic levels of these drug candidates.

As intravitreally delivered drugs become more widely used, achieving an accurate understanding of their systemic exposure as enabled by these new pharmacokinetic models is crucial in the evaluation and development of novel drugs administered into the eye.

Chief Scientific Officer, Professor Alan Stitt, also gave a presentation entitled Targeting RGD-Binding Integrins as an Integrative Therapy for Diabetic Retinopathy & Neovascular Age-Related Macular Degeneration, at the virtual Integrin Drug Discovery event in August. In his presentation, he discussed the potential of a pan-RGD integrin antagonist, such as THR-687, to limit the progress of these important retinal vascular disorders.

Andy De Deene, M.D., Chief Development Officer, was part of a panel discussion at the Clinical Trials at the Summit, which was held at the end of August. This event brought together a diverse group of experts from around the world to discuss ongoing clinical trials and the latest data, all with the goal of achieving advances in vitreoretinal care. This conference program also explored the partnerships and strategies required to design and execute effective vitreoretinal clinical trials.

Financial Update

Total revenue amounted to 0.3 million in the first six months of 2021 compared to 1.3 million in the corresponding period in 2020.

The Company reported a gross profit of 0.1 million during the period compared to 0.9 million in the same period in 2020.

R&D expenses in the first half of 2021 were 11.1 million compared to 10.0 million in 2020. The expenses are mainly investments in trials for Oxurions two clinical compounds THR-149 and THR-687.

Selling and marketing expenses were 0.7 million in 2021, compared to 1.8 million in the corresponding period in 2020.

General and administrative expenses were 3.7 million. This compares to 2.7 million reported in H1 2020.

In H1 2021, Oxurion reported a net loss of 16.2 million (or -0.42 per share), compared to a loss of 13.3 million (or -0.35 per share), in the same period in 2020.

Oxurions cash position (including investments) at the end of June 2021 amounted to 10.0 million. This compares to 24.8 million at the end of December 2020.

As reported in the Companys 2020 Annual Accounts, in April the Company entered into a binding term sheet whereby the Negma Group committed to subscribe to up to 30 million in Oxurion equity through mandatory convertible bonds (the Funding Program).

Under the Issuance and Subscription Agreement (the ISA) entered into between the Company and Negma, Negma agrees to subscribe to up to 30 million in mandatory convertible bonds in tranches of up to 2.5 million with an initial term of 12 months, which is automatically extendable by another 24 months. The right for the Company to draw a tranche of convertible

bonds is subject to certain conditions precedent (including with respect to average daily trading volume) and the expiry of a cool down period of 22 trading days since the previous tranche.

During the negotiation of the ISA, it was also agreed that the total tranches during the first six months of the Program would not exceed 5 million, with the remainder of the 30 million being available at the discretion of the Company thereafter in tranches of up to 2.5 million every 22 business days provided the conditions established in the agreement are met. This means that over the 12-month period starting from the date of the first tranche call, the Company will have access to up to maximum 20 million under the Negma Funding Program provided the Company can and does draw the maximum tranche on a monthly basis, with the remainder of the 30 million being available thereafter at the discretion of Oxurion over another 24 months subject to the terms of the agreement.

In addition, the Company has also secured conditional pre-commitments for equity financing of 3.4 million from others provided certain conditions are met ultimately on September 30, 2021. These conditionally committed and pre-committed fundings may not be sufficient to fund full operations during the next twelve months without cost reductions. Therefore, the Company is actively exploring the possibility for additional funding through debt/equity, and/or alternatively will reduce its costs and investments to the extent that there is at all times sufficient cash to continue its operations during the next twelve months.

END

For further information please contact:

EU MEDiSTRAVA Consulting David Dible/ Sylvie Berrebi/Oxurion NV Frazer HallWouter Piepers, Tel: +44 20 7638 9571Global Head of Corporate Communications & oxurion@medistrava.comInvestor RelationsTel: +32 16 75 13 10 / +32 478 33 56 32wouter.piepers@oxurion.com

US Westwicke, an ICR Company Christopher Brinzey Tel: +1 617 835 9304 chris.brinzey@westwicke.com

About Oxurion Oxurion (Euronext Brussels: OXUR) is a biopharmaceutical company developing next generation standard of care ophthalmic therapies, which are designed to better preserve vision in patients with retinal vascular disorders including diabetic macular edema (DME), the leading cause of vision loss in diabetic patients worldwide as well as other conditions, including wet age-related macular degeneration (AMD) and retinal vein occlusion (RVO).

Oxurion is aiming to build a leading global franchise in the treatment of retinal vascular disorders based on the successful development of its two novel therapeutics:

-- THR-687 is a pan-RGD integrin antagonist that is initially being developed as a potential first line therapy for DME patients. Positive topline results in a Phase 1 clinical study assessing THR-687 as a treatment for DME were announced in 2020. Oxurion is currently conducting a Phase 2 clinical trial evaluating THR-687 for first line therapy in patients with DME. THR-687 also has the potential to deliver improved treatment outcomes for patients with wet AMD and RVO. -- THR-149 is a plasma kallikrein inhibitor being developed as a potential new standard of care for the 40-50% of DME patients showing suboptimal response to anti-VEGF therapy. THR-149 has shown positive topline Phase 1 results for the treatment of DME. The Company is currently conducting a Phase 2 clinical trial evaluating multiple injections of THR-149 in DME patients previously showing suboptimal response to anti-VEGF therapy. Dose selection data from Part A of the study, which is fully enrolled, is expected in the second half of 2021.

Oxurion is headquartered in Leuven, Belgium, and is listed on the Euronext Brussels exchange under the symbol OXUR. More information is available at www.oxurion.com.

Important information about forward-looking statementsCertain statements in this press release may be considered forward-looking. Such forward-looking statements are based on current expectations, and, accordingly, entail and are influenced by various risks and uncertainties. The Company therefore cannot provide any assurance that such forward-looking statements will materialize and does not assume an obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or any other reason. Additional information concerning risks and uncertainties affecting the business and other factors that could cause actual results to differ materially from any forward-looking statement is contained in the Companys Annual Report. This press release does not constitute an offer or invitation for the sale or purchase of securities or assets of Oxurion in any jurisdiction.No securities of Oxurion may be offered or sold within the United States without registration under the U.S. Securities Act of 1933, as amended, or in compliance with an exemption therefrom, and in accordance with any applicable U.S. state securities laws.



Unaudited consolidated statement of profit and loss

In '000 euro (for the period ended on June 30) 2021 2020 Income 333 1,259Sales 250 1,249Income from royalties 83 10Cost of sales -252 -315Gross profit 81 944Research and development expenses -11,077 -9,905General and administrative expenses -3,705 -2,745Selling expenses -702 -1,774Other operating income 317 250Impairment losses -1,127 0Operating result -16,213 -13,230Finance income 19 50Finance expense -25 -139Result before income tax -16,219 -13,319Taxes -1 0Loss for the period -16,220 -13,319 Attributable to: Equity holders of the company -15,858 -13,139Non-controlling interest -362 -180 Result per share Basic earnings/(loss) per share (euro) -0.42 -0.35Diluted earnings/(loss) per share (euro) -0.42 -0.35

Unaudited consolidated statements of other comprehensive income

In '000 euro (for the period ended on June 30) 2021 2020Loss for the period -16,220 -13,319Exchange differences on translation of foreign operations -6 48Other comprehensive income, net of income tax -6 48Other comprehensive income that will not be reclassified to -6 48profit or lossTotal comprehensive income for the period -16,226 -13,271Attributable to: Equity holders of the company -15,864 -13,091Non-controlling interest -362 -180

Unaudited consolidated statement of financial position

In '000 euro (as at) 30-jun-21 31-dec-20 ASSETS Property, plant and equipment 191 230Right-of-use assets 710 1,069Intangible assets 999 2,127Other non-current assets 95 96Non-current tax credit 3,438 3,708Non-current assets 5,433 7,230Inventories 85 85Trade and other receivables 2,568 1,451Current tax receivables 913 719Investments 248 288Cash and cash equivalents 9,759 24,511Current assets 13,573 27,054Total assets 19,006 34,284 EQUITY AND LIABILITIES Share capital 44,913 44,913Share premium 0 0Cumulative translation differences -1,045 -1,039Other reserves -5,896 -6,133Retained earnings -28,419 -12,561Equity attributable to equity holders of the company 9,553 25,180Non-controlling interest 45 -132Total equity 9,598 25,048Lease liabilities 151 447Employee benefit liabilities 1,096 1,096Non-current liabilities 1,247 1,543Trade payables 3,932 4,377Lease liabilities 584 649Other short-term liabilities 3,645 2,667Current liabilities 8,161 7,693Total equity and liabilities 19,006 34,284



Unaudited consolidated statement of cash flows

In '000 euro (for the period ended on June 30) 2021 2020 Cash flows from operating activities Loss for the period -16,220 -13,319Finance expense 25 139Finance income -19 -50Depreciation of property, plant and equipment 51 126Amortization and impairment of intangible assets 1,127 0Amortization of right-of-use assets 359 459Equity settled share-based payment transactions 690 249Increase/decrease in trade and other receivables including tax -1,041 1,214receivables and inventoriesIncrease/decrease in short-term liabilities 533 -3,061Net cash flows used (-) / generated in operating activities -14,495 -14,243 Cash flows from investing activities Disposal of property, plant and equipment (following a sale) 1 22Decrease / increase (-) in investments 40 95Interest received and similar income -7 0Acquisition of intangible assets 0 -270Purchase of property, plant and equipment -13 -92Purchase / divestment (-) of other non-current assets 1 0Net cash flows used (-) / generated in investing activities 22 -245 Cash flows from financing activities Principal paid on lease liabilities -361 -454Interest paid on lease liabilities -3 -9Proceeds from capital and share premium increases from exercise 86 0of warrantsPaid interests -5 -5Net cash flows used (-) / generated in financing activities -283 -468 Net change in cash and cash equivalents -14,756 -14,956Net cash and cash equivalents at the beginning of the period 24,511 42,492Effect of exchange rate fluctuations 4 -27Net cash and cash equivalents at the end of the period 9,759 27,509

Unaudited consolidated statement of changes in equity

Cumulative Attributable Share Share translation Other Retained to equity Non-controlling Total capital premium differences reserves earnings holders of interest the companyAs at January 100,644 0 -615 -12,122 -34,747 53,160 146 53,3061, 2020Loss for the 0 0 0 0 -13,139 -13,139 -180 -13,319period 2020Change toforeigncurrencytranslation 0 0 48 0 0 48 0 48difference andrevaluationreserveShare-basedpayment 0 0 0 249 0 249 0 249transactionsAs at June 30, 100,644 0 -567 -11,873 -47,886 40,318 -34 40,2842020 As at January 44,913 0 -1,039 -6,133 -12,561 25,180 -132 25,0481, 2021Loss for the 0 0 0 0 -15,858 -15,858 -362 -16,220period 2021Change toforeigncurrencytranslation 0 0 -6 0 0 -6 0 -6difference andrevaluationreserveTransactionswith 0 0 0 -453 0 -453 539 86non-controllinginterestsShare-basedpayment 0 0 0 690 0 690 0 690transactionsAs at June 30, 44,913 0 -1,045 -5,896 -28,419 9,553 45 9,5982021







Attachment

-- OXUR HY BU 2021 (EN) 09092021 FINAL