Exhibit 99.1

 

 

Adaptimmune Reports First Quarter 2019 Financial Results

 

- Clinical update issued in a separate announcement -

 

- Financial guidance updated: funded into Q3 2020 -

 

PHILADELPHIA, Pa. and OXFORD, U.K., 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 Liquidity(1) 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.

 

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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.

 

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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

 

 

3


 

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

 

 

4


 

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

 

 

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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

 

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