Avalanche Biotechnologies Reports Fourth Quarter and Fiscal 2015 Financial Results
“2015 was a year of reorientation for Avalanche following our Phase 2a trial results for AVA-101, our lead program for wet AMD. The team has been focusing on preclinical work designed to inform our decision on the best path forward in wet-AMD, enhancing and then applying our next-generation vector discovery platform to fuel an R&D pipeline, and continuing work under our collaboration with Regeneron. We were also looking for opportunities to leverage our expertise and resources by identifying additional assets to bring into the company,” said
Fourth Quarter and Fiscal 2015 Financial Results
- Cash, cash equivalents and marketable securities as of December 31, 2015 were $259.1 million, compared to
$159.4 millionas of December 31, 2014.
- Revenues, consisting of revenue from collaborative research, were $1.0 million for the quarter ended December 31, 2015, compared to $0.2 million for the quarter ended December 31, 2014. Full year 2015 collaboration revenue was
$2.3 millioncompared to $0.6 millionin 2014.
- Research and development expenses were $7.2 million for both the quarters ended December 31, 2015 and
December 31, 2014. Full year 2015 R&D expenses were $25.5million compared to $17.0 million in 2014.
- General and administrative expenses were $5.4 million for the quarter ended December 31, 2015, compared to $3.4 million for the quarter ended December 31, 2014. Full year 2015 G&A expenses were
$22.1 millioncompared to $8 millionin 2014.
- Restructuring charges incurred in connection with our implementation of a restructuring plan in
December 2015were $2.6 millionrecorded in the quarter ended December 31, 2015, related to one-time termination severance payments and other employee-related benefits, including approximately $1 millionof stock-based compensation expense related to the acceleration of restricted stock units in December 2015.
- Net loss attributable to common stockholders was $14.1 million, or
$0.55per basic and diluted share, for the quarter ended December 31, 2015, compared to a net loss attributable to common stockholders of $10.4 million, or $0.46per basic and diluted share, for the quarter ended December 31, 2014. Full year 2015 net loss attributable to common stockholders was $47.5 million, or $1.86per basic and diluted share compared to a net loss attributable to common stockholders of $28.6 million, or $2.46per basic and diluted share for the full year 2014.
Avalanche is a gene therapy company committed to discovering and developing novel medicines that can offer potentially life-changing therapeutic benefit to patients suffering from chronic or debilitating disease. Avalanche is leveraging its next generation adeno-associated virus (AAV)-based directed evolution platform to generate product candidates designed to provide durable efficacy by inducing sustained expression of a therapeutic protein. With significant capabilities and expertise in vector optimization, process development and manufacturing, Avalanche seeks to discover and develop targets in ophthalmology and beyond.
Safe Harbor Statements
Additional Information about the Proposed Transaction with Annapurna and Where to Find It
This announcement does not constitute a solicitation of any vote or approval. In connection with the proposed transaction with Annapurna, Avalanche intends to file relevant materials with the
Participants in the Solicitation
Avalanche and its directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of Avalanche in connection with the proposed transaction with Annapurna and common stock issuance. Information regarding the special interests of these directors and executive officers in the proposed transaction will be included in the proxy statement referred to above. Additional information regarding the directors and executive officers of Avalanche is also included in Avalanche’s Annual Report on Form 10-K for the year ended December 31, 2014 and the proxy statement for Avalanche’s 2015 Annual Meeting of Stockholders. These documents are available free of charge at the
Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements regarding the therapeutic potential of, and development plans for, our product candidates; the structure, timing and completion of our proposed transaction with Annapurna; our expectations regarding the capitalization, resources and ownership structure of the combined company; our expectations regarding the sufficiency of the combined company’s resources to fund the advancement of any development program or the completion of any clinical trial; the nature, strategy and focus of the combined company; the safety, efficacy and projected development timeline and commercial potential of any product candidates; the executive officer and board structure of the combined company; and the expectations regarding voting by Avalanche stockholders. Avalanche may not consummate the proposed transaction, or any plans or product development goals in a timely manner, or at all, or otherwise carry out the intentions or meet the expectations or projections disclosed in our forward-looking statements, and you should not place undue reliance on these forward-looking statements. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation, risks and uncertainties associated with stockholder approval of the issuance of Avalanche common stock and the ability to consummate the proposed transaction, the ability to project future cash utilization and reserves needed for contingent future liabilities and business operations, the availability of sufficient resources for combined company operations and to conduct or continue planned development programs and the ability to successfully develop any of our or Annapurna’s product candidates. Risks and uncertainties facing Avalanche are described more fully in Avalanche’s periodic reports filed with the
|AVALANCHE BIOTECHNOLOGIES, INC.|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|December 31,||December 31,|
|Cash, cash equivalents and marketable securities||$||259,080||$||159,404|
|Receivable from collaborative partner||449||-|
|Prepaid expenses and other current assets||1,463||874|
|Total current assets||260,992||160,278|
|Property and equipment, net||3,187||1,085|
|Deposits and other long-term assets||140||543|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accounts payable and accrued liabilities||$||4,612||$||4,658|
|Current portion of deferred rent||66||-|
|Current portion of deferred revenue||883||813|
|Total current liabilities||6,574||5,471|
|Deferred revenue, less current portion||4,706||6,646|
|Total liabilities and stockholders’ equity||$||264,319||$||161,906|
|AVALANCHE BIOTECHNOLOGIES, INC.|
|CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS|
|(In thousands, except per share amounts)|
|Three Months Ended December 31,||Year Ended December 31,|
|Collaboration and license revenue||$||960||$||203||$||2,319||$||572|
|Research and development||7,192||7,220||25,462||16,976|
|General and administrative||5,374||3,403||22,107||7,998|
|Total operating expenses||15,139||10,623||50,142||24,974|
|Other income (expense), net||85||12||370||(1,002||)|
|Net loss attributable to|
|Net loss per share attributable to common|
|stockholders, basic and diluted||$||(0.55||)||$||(0.46||)||$||(1.86||)||$||(2.46||)|
|Weighted-average common shares outstanding,|
|outstanding, basic and diluted||25,777||22,603||25,479||11,651|
Contacts For Avalanche:
Lauren Glaser(650) 656-9347 email@example.com