8-K
false000178740000017874002023-05-112023-05-11

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 11, 2023

Nkarta, Inc.

(Exact name of Registrant as Specified in Its Charter)

Delaware

001-39370

47-4515206

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

 

 

 

6000 Shoreline Court, Suite 102

South San Francisco, CA

94080

(Address of Principal Executive Offices)

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (925) 407-1049

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, $0.0001 par value per share

 

NKTX

 

 

The Nasdaq Stock Market LLC

(Nasdaq Global Select Market)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 


 

 

Item 2.02 Results of Operations and Financial Condition.

On May 11, 2023, Nkarta, Inc. (the “Company”) issued a press release announcing the Company’s financial results for the first quarter ended March 31, 2023. A copy of the Company’s press release is attached hereto as Exhibit 99.1.

The information in Item 2.02 of this Current Report on Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be, or be deemed, incorporated by reference in any filings under the Securities Act of 1933, as amended (the “Securities Act”), unless the Company specifically states that the information is to be considered “filed” under the Exchange Act or incorporates it by reference into a filing under the Securities Act or the Exchange Act.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit

Number

Description

 

 

99.1

Press Release dated May 11, 2023 entitled “Nkarta Reports First Quarter 2023 Financial Results and Corporate Highlights”

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Nkarta, Inc.

Date: May 11, 2023

By:

/s/ Nadir Mahmood

Nadir Mahmood

Chief Financial and Business Officer

 

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EX-99.1

 

Exhibit 99.1

https://cdn.kscope.io/d1fdb2b36141db748ede5351ec03ab1e-img220989892_0.jpg 

 

 

Nkarta Reports First Quarter 2023 Financial Results and Corporate Highlights

Clinical updates on track for NKX101 in second quarter of 2023 at a company-hosted event and NKX019 in second half of 2023
Cash and cash equivalents of $332.1 million on March 31, 2023
Cash runway anticipated to fund operations into 2025

 

SOUTH SAN FRANCISCO, Calif., May 11, 2023 -- Nkarta, Inc. (Nasdaq: NKTX),

a clinical-stage biopharmaceutical company developing engineered natural killer (NK) cell therapies, today reported financial results for the first quarter ended March 31, 2023.

“Nkarta remains focused on the potential of donor-derived CAR NK cell products to broaden access to the transformative power of cell therapy for patients,” said Paul J. Hastings, CEO and President of Nkarta. “We look forward to announcing clinical updates for our two lead programs, NKX101 and NKX019, in 2023.”

Hastings continued, “Our update on NKX101 is expected to include responses from multiple new patients with r/r AML at the 1.5 billion cell dose level. This will include patients from an expansion cohort where cytarabine is substituted for cyclophosphamide and combined with fludarabine as a modified lymphodepletion regimen. Based on our early, encouraging safety data, we see the possibility to combine with other standard of care agents as a potential advantage that NK cell therapy may have over other available treatments. For NKX019, we continue to plan for a full update on non-Hodgkin lymphoma in the second half of the year.”

Clinical Program Updates

NKX101

NKX101 is an allogeneic, off-the-shelf cell therapy candidate comprising NK cells derived from healthy donors and engineered to target NKG2D ligands on cancer cells.
Nkarta plans to present additional clinical data in the second quarter of 2023 from its ongoing Phase 1 clinical trial of NKX101 in patients with relapsed or refractory acute myeloid leukemia (r/r AML).

 


 

The update for NKX101 is expected to include longer-term follow up from patients who were in response as of the previous April 2022 data cut-off; clinical data from at least 10 new r/r AML patients treated at 1.5 billion cells/dose x 3 dose regimen; clinical data from patients who received one or more additional 3-dose cycles of NKX101; and clinical data from a new cohort of patients who received lymphodepletion with cytarabine and fludarabine.

NKX019

NKX019 is an allogeneic, off-the-shelf cell therapy candidate comprising NK cells derived from healthy donors and engineered to target the B-cell antigen CD19.
Nkarta plans to present additional clinical data in the second half of 2023 from its ongoing Phase 1 clinical trial of NKX019 in patients with relapsed or refractory non-Hodgkin lymphoma (r/r NHL).
The update for NKX019 is expected to include longer-term follow up of patient outcomes reported in the December 2022 announcement of dose expansion data, including patients eligible for retreatment with NKX019. The update is also expected to include clinical data from the recently opened dose expansion study, which is enrolling patients into three cohorts: NKX019 in patients who have not previously received autologous CD19 CAR T therapy, NKX019 in patients who previously received autologous CD19 CAR T therapy, and NKX019 as combination therapy with rituximab to evaluate for enhanced anti-tumor activity via ADCC, a tumor killing mechanism driven by antibodies.
Prior to the clinical update in the second half of 2023, Nkarta plans to present clinical data at two scientific meetings in June 2023: the annual meeting of the European Hematology Association (EHA) and the International Conference on Malignant Lymphoma (17-ICML). These presentations will be based on the prior November 2022 data cut-off.


AACR 2023

In April 2023, Nkarta presented preclinical data in two posters at the 2023 American Association of Cancer Research (AACR) annual meeting that showed CD16-mediated ADCC activity by combining NKX101 with a monoclonal antibody and enhancements of cytotoxic activity through genome engineering of NK cells.

Other Corporate Highlights

In March 2023, Nkarta announced that Nadir Mahmood, PhD, resigned his position as chief financial and business officer to become the chief executive officer of a private biotechnology company. Dr. Mahmood will remain with Nkarta until June 30, 2023, to ensure a smooth transition. Nkarta is currently conducting a search for its next chief financial officer.

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First Quarter 2023 and Recent Financial Highlights

Cash and Cash Equivalents: As of March 31, 2023, Nkarta had cash, cash equivalents, restricted cash, and investments of $332.1 million.
R&D Expenses: Research and development (R&D) expenses were $26.1 million for the first quarter of 2023. Non-cash stock-based compensation expense included in R&D expense was $2.1 million for the first quarter of 2023.
G&A Expenses: General and administrative (G&A) expenses were $8.2 million for the first quarter of 2023. Non-cash stock-based compensation expense included in G&A expense was $2.7 million for the first quarter of 2023.
Net Loss: Net loss was $30.8 million, or $0.63 per basic and diluted share, for the first quarter of 2023. This net loss includes non-cash charges of $3.8 million that consisted primarily of share-based compensation of $4.7 million.

Financial Guidance

Nkarta expects its current cash and cash equivalents will be sufficient to fund its current operating plan into 2025.

 

 

About NKX101
NKX101 is an allogeneic, cryopreserved, off-the-shelf cancer immunotherapy candidate that uses natural killer (NK) cells derived from the peripheral blood of healthy donors. It is engineered with a chimeric antigen receptor (CAR) targeting NKG2D ligands on tumor cells. NKG2D, a key activating receptor found on naturally occurring NK cells, induces a cell-killing immune response through the detection of stress ligands that are widely expressed on cancer cells. NKX101 is also engineered with membrane-bound form of interleukin-15 (IL15) for greater persistence and activity without exogenous cytokine support. To learn more about the NKX101 clinical trial in adults with AML or MDS, please visit ClinicalTrials.gov.

About NKX019
NKX019 is an allogeneic, cryopreserved, off-the-shelf cancer immunotherapy candidate that uses natural killer (NK) cells derived from the peripheral blood of healthy adult donors. It is engineered with a humanized CD19-directed CAR for enhanced tumor cell targeting and a proprietary, membrane-bound form of interleukin-15 (IL-15) for greater persistence and activity without exogenous cytokine support. CD19 is a biomarker for normal and malignant B cells, and it is a validated target for B cell cancer therapies. To learn more about the NKX019 clinical trial in adults with advanced B cell malignancies, please visit ClinicalTrials.gov.

About Nkarta
Nkarta is a clinical-stage biotechnology company advancing the development of allogeneic, off-the-shelf natural killer (NK) cell therapies. By combining its cell expansion and cryopreservation platform with proprietary cell engineering technologies and CRISPR-based genome engineering

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capabilities, Nkarta is building a pipeline of future cell therapies engineered for deep anti-tumor activity and intended for broad access in the outpatient treatment setting. For more information, please visit the company’s website at www.nkartatx.com.

Cautionary Note on Forward-Looking Statements

Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Words such as "anticipates," "believes," "expects," "intends," “plans,” “potential,” "projects,” “would” and "future" or similar expressions are intended to identify forward-looking statements. Examples of these forward-looking statements include, but are not limited to, statements concerning Nkarta’s expectations regarding any or all of the following: Nkarta’s ability to advance its pipeline as planned, including its NKX101 and NKX019 clinical programs; the promise, anti-tumor activity, tolerability, and accessibility of allogeneic NK cell therapy and Nkarta’s product candidates, including NKX101 and NKX019; the timing of release of additional NKX019 and NKX101 clinical trial data and the nature of the data to be released; and Nkarta’s expected cash runway.

Because forward-looking statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among others: Nkarta’s limited operating history and historical losses; Nkarta’s lack of any products approved for sale and its ability to achieve profitability; the risk that the results of preclinical studies and early-stage clinical trials may not be predictive of future results; Nkarta’s ability to raise additional funding to complete the development and any commercialization of its product candidates; Nkarta’s dependence on the clinical success of its two lead product candidates, NKX101 and NKX019; that Nkarta may be delayed in initiating, enrolling or completing any clinical trials; competition from third parties that are developing products for similar uses; Nkarta’s ability to obtain, maintain and protect its intellectual property; Nkarta’s dependence on third parties in connection with manufacturing, clinical trials and pre-clinical studies; the complexity of the manufacturing process for CAR NK cell therapies; the availability of components and supplies necessary for the conduct of our clinical trials; and risks relating to the impact on Nkarta’s business of the COVID-19 pandemic or similar public health crises.

These and other risks are described more fully in Nkarta’s filings with the Securities and Exchange Commission (“SEC”), including the “Risk Factors” section of Nkarta’s Annual Report on Form 10-K for the quarter and year ended December 31, 2022, filed with the SEC on March 16, 2023, and Nkarta’s other documents subsequently filed with or furnished to the SEC. All forward-looking statements contained in this press release speak only as of the date on which they were made. Except to the extent required by law, Nkarta undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

 

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Nkarta, Inc.

Condensed Statements of Operations

(in thousands, except share and per share data)

(Unaudited)

 

 

 

 

Three Months Ended March 31,

 

 

 

2023

 

 

2022

 

Operating expenses

 

 

 

 

 

 

Research and development

 

$

26,135

 

 

$

19,568

 

General and administrative

 

 

8,178

 

 

 

6,530

 

Total operating expenses

 

 

34,313

 

 

 

26,098

 

Loss from operations

 

 

(34,313

)

 

 

(26,098

)

Other income (expense), net:

 

 

 

 

 

 

Interest income

 

 

3,465

 

 

 

112

 

Other income (expense), net

 

 

33

 

 

 

(1

)

Total other income, net

 

 

3,498

 

 

 

111

 

Net loss

 

$

(30,815

)

 

$

(25,987

)

 

 

 

 

 

 

 

Net loss per share, basic and diluted

 

$

(0.63

)

 

$

(0.79

)

Weighted average shares used to compute
   net loss per share, basic and diluted

 

 

48,921,326

 

 

 

32,992,582

 

 

Nkarta, Inc.

Condensed Balance Sheets

(in thousands)

(Unaudited)

 

 

 

March 31,
2023

 

 

December 31,
2022

 

Assets

 

 

 

 

 

 

Cash, cash equivalents, restricted cash and investments

 

$

332,100

 

 

$

354,886

 

Property and equipment, net

 

 

69,777

 

 

 

61,908

 

Operating lease right-of-use assets

 

 

45,575

 

 

 

45,749

 

Other assets

 

 

10,717

 

 

 

10,395

 

Total assets

 

$

458,169

 

 

$

472,938

 

Liabilities and stockholders' equity

 

 

 

 

 

 

Accounts payable, accrued and other liabilities

 

$

20,229

 

 

$

17,797

 

Operating lease liabilities

 

 

91,294

 

 

 

82,934

 

Total liabilities

 

 

111,523

 

 

 

100,731

 

Stockholders’ equity

 

 

346,646

 

 

 

372,207

 

Total liabilities and stockholders’ equity

 

$

458,169

 

 

$

472,938

 

 

 

Nkarta Media/Investor Contact:

Greg Mann

Nkarta, Inc.

gmann@nkartatx.com

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