ADAP - Adaptimmune Reports First Quarter 2019 Financial Results

May, 06 2019 07:30 AM Adaptimmune Therapeutics plc

- Clinical update issued in a separate announcement -

- Financial guidance updated: funded into Q3 2020 -

PHILADELPHIA and OXFORD, United Kingdom, May 06, 2019 (GLOBE NEWSWIRE) -- Adaptimmune Therapeutics plc (Nasdaq:ADAP), a leader in T-cell therapy to treat cancer, today reported financial results for the first quarter ended March 31, 2019. Adaptimmune shared a clinical update in a separate release (https://bit.ly/2IJpltR).

Financial Results for the three-month period ended March 31, 2019

Cash / liquidity position: As of March 31, 2019, Adaptimmune had cash and cash equivalents of $49.9 million and Total Liquidity¹ of $168.2 million.
Revenue: Revenue for the three-month period ended March 31, 2019 was nil, compared to $8.2 million for the same period in 2018. No revenue has been recognised for the three months ended March 31, 2019 as the NY-ESO SPEAR T-cell transition program and the PRAME pre-clinical development program were completed in 2018, and work has not commenced on the third target nominated by GSK under the Collaboration and License Agreement.
Research and development (“R&D”) expenses: R&D expenses for the three-month period ended March 31, 2019 were $22.0 million, compared to $25.7 million for the same period of 2018; this decrease being primarily due to a reduction in expenditure associated with NY-ESO, which was transferred to GSK on July 23, 2018.
General and administrative (“G&A”) expenses: G&A expenses for the three-month period ended March 31, 2019 were $11.8 million, compared to $11.2 million for the same period of 2018.
Other income, net: Other income for the three-month period ended March 31, 2019 was $5.4 million, compared to $7.1 million for the same period of 2018. Other income primarily comprises unrealized foreign exchange gains, which fluctuate depending on exchange rate movements and the amount of foreign currency assets and liabilities.
Net loss: Net loss attributable to holders of the Company’s ordinary shares for the three-month period ended March 31, 2019 was a loss of $27.4 million, ($(0.04) per ordinary share) compared to a loss of $21.1 million ($(0.04) per ordinary share) in the same period of 2018.

Financial guidance
^{The Company believes that its existing cash, cash equivalents and marketable securities will fund the Company’s current operations into the third quarter of 2020.}

¹ Total liquidity is a non-GAAP financial measure, which is explained and reconciled to the most directly comparable financial measures prepared in accordance with GAAP below.

About Adaptimmune
Adaptimmune is a clinical-stage biopharmaceutical company focused on the development of novel cancer immunotherapy products for cancer patients. The Company’s unique SPEAR (Specific Peptide Enhanced Affinity Receptor) T?cell platform enables the engineering of T-cells to target and destroy cancer across multiple solid tumors. For more information, please visit http://www.adaptimmune.com.

Forward-looking statements
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). These forward-looking statements involve certain risks and uncertainties. Such risks and uncertainties could cause our actual results to differ materially from those indicated by such forward-looking statements, and include, without limitation: the success, cost and timing of our product development activities and clinical trials and our ability to successfully advance our TCR therapeutic candidates through the regulatory and commercialization processes. For a further description of the risks and uncertainties that could cause our actual results to differ materially from those expressed in these forward-looking statements, as well as risks relating to our business in general, we refer you to our Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 27, 2019, and our other SEC filings. The forward-looking statements contained in this press release speak only as of the date the statements were made and we do not undertake any obligation to update such forward-looking statements to reflect subsequent events or circumstances.

Total Liquidity (a non-GAAP financial measure)

Total Liquidity (a non-GAAP financial measure) is the total of cash and cash equivalents and marketable securities. Each of these components appears in the consolidated balance sheet. The U.S. GAAP financial measure most directly comparable to Total Liquidity is cash and cash equivalents as reported in the consolidated financial statements, which reconciles to Total Liquidity as follows (in thousands):



March 31,

December 31,


2019

2018
Cash and cash equivalents

$
49,917

$
68,379
Marketable securities


118,241


136,755
Total Liquidity

$
168,158

$
205,134

The Company believes that the presentation of Total Liquidity provides useful information to investors because management reviews Total Liquidity as part of its management of overall liquidity, financial flexibility, capital structure and leverage.

Condensed Consolidated Statement of Operations
(unaudited, in thousands, except per share data)



Three months ended



March 31,











2019


2018


Revenue

$
—


$
8,196


Operating expenses







Research and development


(22,019
)


(25,732
)

General and administrative


(11,773
)


(11,204
)

Total operating expenses


(33,792
)


(36,936
)

Operating loss


(33,792
)


(28,740
)

Interest income


952



659


Other income, net


5,430



7,130


Loss before income taxes


(27,410
)


(20,951
)

Income taxes


(2
)


(127
)

Net loss attributable to ordinary shareholders

$
(27,412
)

$
(21,078
)









Net loss per ordinary share – Basic and diluted







Basic and diluted

$
(0.04
)

$
(0.04
)









Weighted average shares outstanding:







Basic and diluted


627,945,243



562,381,995

Condensed Consolidated Balance Sheets
(unaudited, in thousands, except share data)



March 31,

December 31,


2019

2018
Assets






Current assets






Cash and cash equivalents

$
49,917


$
68,379

Marketable securities - available-for-sale debt securities


118,241



136,755

Accounts receivable, net of allowance for doubtful accounts of $0 and $0


—



192

Other current assets and prepaid expenses (including current portion of clinical materials)


32,143



25,769

Total current assets


200,301



231,095








Restricted cash


4,473



4,097

Clinical materials


3,972



3,953

Operating lease right-of-use assets, net of accumulated amortization of $656 (2018: $0)


24,462



—

Property, plant and equipment, net of accumulated depreciation of $18,083 (2018: $15,924)


35,703



36,118

Intangibles, net of accumulated amortization of $1,411 (2018: $1,218)


1,529



1,473

Total assets

$
270,440


$
276,736








Liabilities and stockholders’ equity






Current liabilities






Accounts payable


5,391



4,083

Operating lease liabilities, current


2,217



—

Accrued expenses and other accrued liabilities


15,827



20,354

Total current liabilities


23,435



24,437








Operating lease liabilities, non-current


26,779



—

Other liabilities, non-current


571



5,414








Total liabilities


50,785



29,851








Stockholders’ equity






Common stock - Ordinary shares par value £0.001, 701,103,126 authorized and 628,294,702 issued and outstanding (2018: 701,103,126 authorized and 627,454,270 issued and outstanding)


940



939

Additional paid in capital


577,722



574,208

Accumulated other comprehensive loss


(13,096
)


(9,763
)
Accumulated deficit


(345,911
)


(318,499
)
Total stockholders' equity


219,655



246,885








Total liabilities and stockholders’ equity

$
270,440


$
276,736

Condensed Consolidated Cash Flow Statement
(unaudited, in thousands)



Three months ended



March 31,



2019


2018


Cash flows from operating activities







Net loss

$
(27,412
)

$
(21,078
)

Adjustments to reconcile net loss to net cash used in operating activities:







Depreciation


1,828



1,740


Amortization


167



143


Share-based compensation expense


3,479



4,672


Realized loss on available-for-sale debt securities


—



1,163


Unrealized foreign exchange gains


(5,095
)


(7,862
)

Other


(39
)


124


Changes in operating assets and liabilities:







Increase in receivables and other operating assets


(6,659
)


(10,179
)

Increase in non-current operating assets


(19
)


(123
)

Decrease in payables and deferred revenue


(2,453
)


(15,879
)

Net cash used in operating activities


(36,203
)


(47,279
)









Cash flows from investing activities







Acquisition of property, plant and equipment


(904
)


(1,904
)

Acquisition of intangibles


(205
)


(10
)

Maturity or redemption of marketable securities


22,669



28,043


Investment in marketable securities


(3,904
)


(12,490
)

Net cash provided by investing activities


17,656



13,639










Cash flows from financing activities







Proceeds from exercise of stock options


36



1,534


Net cash provided by financing activities


36



1,534










Effect of currency exchange rate changes on cash, cash equivalents and restricted cash


425



1,545


Net decrease in cash and cash equivalents


(18,086
)


(30,561
)

Cash, cash equivalents and restricted cash at start of period


72,476



88,296


Cash, cash equivalents and restricted cash at end of period

$
54,390


$
57,735

Adaptimmune Contacts:

Media Relations:

Sébastien Desprez — VP, Communications and Investor Relations
T: +44 1235 430 583
M: +44 7718 453 176
Sebastien.Desprez@adaptimmune.com

Investor Relations:

Juli P. Miller, Ph.D. — Director, Investor Relations
T: +1 215 825 9310
M: +1 215 460 8920
Juli.Miller@adaptimmune.com

Company Name:	Adaptimmune Therapeutics plc
Stock Symbol:	ADAP
Market:	NASDAQ
Website:	adaptimmune.com

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