Tevogen Bio Reports First Quarter 2024 Financial Results

Tevogen Bio Inc.

• Confirms elimination of liabilities of US$94.9 million and reports US$11.3 million in net profit

• Informs that net cash used for operating activities was US$ 2.1 million

• Reiterates commitment to patients and shareholders

WARREN, NJ, May 29, 2024 (GLOBE NEWSWIRE) – Tevogen Bio Holdings Inc. (“Tevogen” or “Tevogen Bio”) (Nasdaq: TVGN), a clinical-stage specialty immunotherapy biotechnology pioneer developing ready-to-use genetically engineered T-cell therapies in oncology, neurology and virology, announced financial results for the fiscal quarter ended March 31, 2024 and presented its quarterly report on Form 10-Q with the Securities and Exchange Commission.

As of March 31, 2024, Tevogen eliminated $94.9 million in balance sheet liabilities compared to December 31, 2023, by converting convertible promissory notes into common shares. Separately, on May 10, 2024, Tevogen entered into a binding term sheet with an existing investor for a line of credit of up to $36.0 million to support the company’s core operating expenses for thirty-six months following the agreement Final. Additionally, pursuant to this term sheet, the investor has the option to purchase shares of common stock for an aggregate purchase price of $14.0 million, contingent upon Tevogen reaching a specific share price threshold. This amount can be increased up to the remaining portion available and undrawn from the credit line.

Tevogen’s reported operating expenses for the three months ended March 31, 2024 included $2.1 million in cash and $27.4 million in non-cash expenses. Major non-cash expense items included $25.2 million in non-cash stock-based compensation expense. Stock-based compensation expense was recognized primarily when the liquidity event condition contained in certain stock-based awards was satisfied at the closing of the business combination. Additionally, a one-time transaction cost of $7.5 million was reported associated with the Tevogen business combination, which was completed on February 15, 2024.

“Tevogen’s first quarterly financial report since its public listing underscores the strength of our innovative business philosophy,” said Tevogen CEO Ryan Saadi. “Since our founding, we have rapidly established a research center dedicated to new product discovery, successfully completed the proof-of-concept clinical trial for the first clinical product of our precision T cell platform, and built a robust intellectual property portfolio . I want to reaffirm my personal commitment to exploring the therapeutic potential of TVGN 489 for Long COVID patients, a priority that remains close to my heart. We are committed to transforming patient care through innovations that are not only affordable but also commercially successful.”

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About Tevogen Bio

Tevogen is a clinical-stage specialty immunotherapy company leveraging one of nature’s most powerful immunological weapons, CD8+ cytotoxic T lymphocytes, to develop ready-to-use, genetically unmodified, precision T cell therapies to treat diseases infectious diseases, cancer and neurological disorders, with the aim of meeting the significant unmet needs of large patient populations. Tevogen Leadership believes that sustainability and business success in today’s healthcare era depend on ensuring patient accessibility through advanced science and innovative business models. Tevogen has reported positive safety data from its proof-of-concept clinical trial, and its key intellectual property assets are wholly owned by the company, not subject to any third-party licensing agreements. These assets include three granted patents and twelve pending patents, two of which are related to artificial intelligence.

Tevogen is led by a team of highly experienced industry leaders and renowned scientists with experience in drug development and global product launch. Tevogen leadership believes that affordable personalized therapeutics are the next frontier in medicine and that disruptive business models are needed to sustain medical innovation.

Forward-looking statements

This press release contains certain forward-looking statements, including, without limitation, statements relating to: expectations regarding the terms and expected use of the proceeds of the Tevogen line of credit; the healthcare and biopharmaceutical industries; Tevogen’s development, potential benefits and patient access to its product candidates for the treatment of infectious diseases, cancer and neurological disorders, including TVGN 489 for the treatment of COVID-19 and Long COVID; Tevogen’s ability to develop additional product candidates, including through the use of Tevogen’s ExacTcell platform; the expected benefits of ExacTcell; expectations regarding future Tevogen clinical trials; Tevogen manufacturing plans; and Tevogen’s ability to generate revenue in the future. Forward-looking statements can sometimes be identified by words such as “may”, “could”, “would”, “expect”, “anticipate”, “possible”, “potential”, “objective”, “opportunity”, “project”. , “believe”, “future” and similar words and expressions or their opposites. These statements are based on management’s expectations, assumptions, estimates, projections and beliefs as of the date of this press release and are subject to a number of factors involving known and unknown risks, delays, uncertainties and other factors not within the control of the company that could cause the Company’s actual results, performance or achievements to be materially different from the results, performance or other expectations expressed or implied by these forward-looking statements.

Factors that could cause actual results, performance or achievements to differ from those expressed or implied in the forward-looking statements include, but are not limited to: the parties to the binding term sheet for the credit facility may not enter into definitive transaction documents as described, in a timely manner or at all; that Tevogen will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; uncertainty regarding the timing and presentation of Tevogen’s Annual Report on Form 10-K and related disclosure of pro forma financial results; changes in final results resulting from financial closing procedures; the effect of the recent business combination with Semper Paratus Acquisition Corporation (the “Business Combination”) on Tevogen’s business relationships, operating results and business generally; the outcome of any legal proceedings that may be brought against Tevogen in connection with the Business Combination; changes in the markets in which Tevogen competes, including with respect to its competitive landscape, technological developments or regulatory changes; changes in general national and global economic conditions; the risk that Tevogen may not be able to execute its growth strategies or may experience difficulties in managing its growth and expansion of operations; the risk that Tevogen will be unable to develop and maintain effective internal controls; costs related to the Business Combination and the inability to realize the anticipated benefits of the Business Combination; the failure to fulfill Tevogen’s commercialization and development plans, and to identify and realize additional opportunities, which may be affected by, among other things, competition, Tevogen’s ability to grow and manage growth economically and to hire and retain employees- key; the risk that Tevogen will be unable to keep up with rapid technological developments to provide new and innovative products and services or will make substantial investments in unsuccessful new products and services; the ability to develop, license or acquire new therapeutics; that Tevogen will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; the risk of lawsuits or regulatory proceedings relating to Tevogen’s business; uncertainties inherent in the execution, cost and completion of preclinical studies and clinical trials; risks related to regulatory review, approval and commercial development; risks associated with the protection of intellectual property; Tevogen’s limited operating history; and the factors discussed or incorporated by reference in Tevogen’s Annual Report on Form 10-K and filed with the SEC.

You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Tevogen undertakes no obligation to update any forward-looking statements except as required by applicable law.

Contacts

Tevogen Bio Communications
T: 1 877 TEVOGEN, Extension 701
Communications@Tevogen.com

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