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Adaptimmune Reports First Quarter 2019 Financial Results

- 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 (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