TCR2 Therapeutics Inc.

For the first quarter of 2019, TCR2 reported cash, cash equivalents and investments of $192 million as of March 31, 2019, compared with approximately $123 million at December 31, 2018, driven primarily by $80 million in net IPO proceeds. Net cash used in operations was approximately $11 million, versus $3 million in the same period last year. R&D expenses were approximately $8 million versus $3 million a year ago, G&A expenses were $3 million versus $1 million, and net loss was $10 million versus $4 million last year. For full-year 2019, management guided to net cash expenditure of $45 million to $55 million and said it expects to end 2019 with $148 million to $158 million in cash and cash equivalents.

Garry Menzel framed the quarter as a milestone period, emphasizing that TCR2 crossed into the clinic with TC-210 and made progress consistent with the company’s plan. He highlighted the platform’s potential to address limitations of CAR-T and TCR therapies through TRuC T cells, which he said can use the full T-cell receptor signaling complex independent of HLA expression. His tone was constructive and confident, with repeated emphasis on execution, manufacturing readiness, and a pipeline advancing on schedule.

Ian Somaiya said the IPO left the company “in a strong financial position” and “well capitalized” to advance the pipeline and platform. He cited $192 million in cash, cash equivalents and investments at quarter-end, compared with about $123 million at the end of 2018, and noted the increase came mainly from $80 million in IPO net proceeds. He also pointed to higher quarterly spending tied to TC-210 trial startup and headcount, with net cash used in operations of about $11 million, and reiterated full-year 2019 net cash expenditure guidance of $45 million to $55 million with year-end cash of $148 million to $158 million.

Analysts focused on TC-210 trial design, including changes that resolved the FDA’s concerns around the IHC assay and protocol language for prior standard-of-care therapies in certain ovarian cancer and NSCLC patients. Management said the changes were minor, requiring only a few sentences in the protocol, and that the Phase 1 portion will use escalating doses without exploring different lymphodepletion regimens. Questions also centered on mesothelin and PD-1 combinations; management said the Phase 2 plan includes a PD-1 combination arm only in NSCLC for now, though broader expansion could be considered if data support it. On TC-110, management said the FDA discussion centered on what data to include in the IND and that the program may move faster than TC-210, including potentially skipping the without-lymphodepletion step.