Apellis Pharmaceuticals Reports Third Quarter 2018 Business Update and Financial Results
November 13 2018 - 8:00AM
- Commenced Phase 3 Program of APL-2 in
Geographic Atrophy (GA) -
Apellis Pharmaceuticals, Inc. (Nasdaq: APLS), a clinical-stage
biopharmaceutical company focused on the development of novel
therapeutic compounds to treat disease through the inhibition of
the complement system, today announced its third quarter 2018
financial results and business highlights.
“The third quarter of 2018 was very important for Apellis, as we
initiated our Phase 3 program in GA and now have two clinical
programs in Phase 3 following the initiation of the PEGASUS trial
of APL-2 in paroxysmal nocturnal hemoglobinuria (PNH) patients in
June,” said Cedric Francois, MD, PhD, founder and chief executive
officer of Apellis. “This is a considerable accomplishment as we
work towards the goal of treating patients with complement mediated
diseases with APL-2 as an approved drug. We remain steadfast in our
commitment to patients and voluntarily implemented a temporary
pause in dosing in both our Phase 3 GA program and in our Phase
1b/2 Wet AMD trial last month following observations of
non-infectious inflammation in patients that we believe resulted
from a single manufacturing lot of APL-2. We do not believe the
pause will delay the projected enrollment timeline of 18 months in
the Phase 3 GA program and in the first half of December we plan to
provide an update following confirmatory studies and review by the
data safety monitoring board. We also look forward to sharing
updates on our hematology programs later this quarter at the 2018
American Society of Hematology (ASH) conference.”
Business Highlights and Upcoming
Milestones:
APL-2 in GA
- Initiated patient dosing in the Phase 3 GA program, consisting
of two Phase 3 trials (DERBY & OAKS), in September 2018.
- Received Fast Track designation for the treatment of patients
with GA from the U.S. Food & Drug Administration (FDA) in July
2018.
- Plan to provide an update on the Phase 3 GA program in the
first half of December 2018.
APL-2 in PNH
- Provided interim results from the Phase 1b PHAROAH trial
evaluating APL-2 in PNH patients on treatment with eculizumab
(Soliris™) in September 2018. All four patients, who were severely
anemic and transfusion dependent while on eculizumab, were
transitioned to APL-2 monotherapy.
- Plan to provide an update on the ongoing Phase 1b PNH trials at
the 2018 ASH conference in December.
APL-2 In Other Indications
- Plan to provide an update on the ongoing Phase 2 monotherapy
trial of APL-2 in both warm autoimmune hemolytic anemia (wAIHA) and
cold agglutinin disease (CAD) at the 2018 ASH conference in
December.
- Expect data from the ongoing Phase 2 monotherapy trial of APL-2
in four types of complement-dependent nephropathies (IgA
nephropathy, C3 glomerulopathy, primary membranous nephropathy and
lupus nephritis) in 2019. The trial timeline has been updated from
a four month data readout to a one year data readout.
Third Quarter 2018 Financial Results:
As of September 30, 2018, Apellis had $220.6 million in cash and
cash equivalents, compared to $253.8 million as of June 30,
2018.
Apellis reported a net loss of $36.0 million for the third
quarter of 2018, compared to a net loss of $11.6 million for the
third quarter of 2017.
Research and development expenses were $29.5 million in the
third quarter of 2018, compared to $9.5 million in the third
quarter of 2017. The increase in research and development expenses
was primarily attributable to an increase of $10.2 million in
clinical trial costs associated with the preparation for and
commencement of our Phase 3 clinical trials, an increase of $6.8
million in manufacturing expenses in connection with the supply for
our Phase 3 clinical trials of APL-2, an increase of $2.5 million
in employee related costs primarily due to the hiring of additional
personnel, an increase of $0.3 million related to research and
development supporting activities and an increase of $0.2 million
in preclinical study expenses.
General and administrative expenses were $6.3 million in the
third quarter of 2018, compared to $2.1 million in the third
quarter of 2017. The increase in general and administrative
expenses was primarily attributable to an increase in employee
related costs of $2.0 million due to the hiring of additional
personnel, an increase in professional and consulting fees of $0.9
million, an increase in license agreement costs of $0.7 million
attributable to our achievement of milestones, an increase of $0.4
million in director stock option compensation and an increase of
$0.2 million in insurance costs.
About APL-2 APL-2 is designed to inhibit the
complement cascade centrally at C3 and may have the potential to
treat a wide range of complement-mediated diseases more effectively
than is possible with partial inhibitors of complement. APL-2 is a
synthetic cyclic peptide conjugated to a polyethylene glycol (PEG)
polymer that binds specifically to C3 and C3b, effectively blocking
all three pathways of complement activation (classical, lectin, and
alternative).
About ApellisApellis Pharmaceuticals, Inc. is a
clinical-stage biopharmaceutical company focused on the development
of novel therapeutic compounds for the treatment of a broad range
of life-threatening or debilitating autoimmune diseases based upon
complement immunotherapy through the inhibition of the complement
system at the level of C3. Apellis is the first company to advance
chronic therapy with a C3 inhibitor into clinical trials. For
additional information about Apellis and APL-2, please visit
http://www.apellis.com. For additional information regarding our
clinical trials, visit www.apellis.com/clinical-trials.html.
Forward-Looking Statements Statements in
this press release about future expectations, plans and prospects,
as well as any other statements regarding matters that are not
historical facts, may constitute “forward-looking statements”
within the meaning of The Private Securities Litigation Reform Act
of 1995. These statements include, but are not limited to,
statements relating to the implications of preliminary clinical
data. The words “anticipate,” “believe,” “continue,” “could,”
“estimate,” “expect,” “intend,” “may,” “plan,” “potential,”
“predict,” “project,” “should,” “target,” “will,” “would” and
similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain
these identifying words. Actual results may differ materially from
those indicated by such forward-looking statements as a result of
various important factors, including: whether dosing in the Phase 3
GA program will resume when anticipated; whether preliminary or
interim results from a clinical trial will be predictive of the
final results of the trial; whether results obtained in preclinical
studies and clinical trials will be indicative of results that will
be generated in future clinical trials; whether APL-2 will
successfully advance through the clinical trial process on a timely
basis, or at all; whether the results of such clinical trials will
warrant regulatory submissions and whether APL-2 will receive
approval from the United States Food and Drug Administration or
equivalent foreign regulatory agencies for GA, PNH or any other
indication; whether, if Apellis’ products receive approval, they
will be successfully distributed and marketed; and other factors
discussed in the “Risk Factors” section of Apellis’ Quarterly
Report on Form 10-Q filed with the Securities and Exchange
Commission on November 13, 2018 and the risks described in other
filings that Apellis may make with the Securities and Exchange
Commission. Any forward-looking statements contained in this press
release speak only as of the date hereof, and Apellis specifically
disclaims any obligation to update any forward-looking statement,
whether as a result of new information, future events or
otherwise.
|
APELLIS PHARMACEUTICALS, INC. |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
|
|
|
|
December 31, |
|
September 30, |
|
|
|
2017 |
|
|
|
2018 |
|
Assets |
|
|
|
(Unaudited) |
Current
assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
175,643,529 |
|
|
$ |
220,640,818 |
|
Refundable research and development credit |
|
|
1,297,361 |
|
|
|
1,364,259 |
|
Prepaid
assets |
|
|
5,059,593 |
|
|
|
16,846,183 |
|
Other
current assets |
|
|
14,823 |
|
|
|
81,532 |
|
Total
current assets |
|
|
182,015,306 |
|
|
|
238,932,792 |
|
Other
assets |
|
|
116,150 |
|
|
|
212,979 |
|
Total
assets |
|
$ |
182,131,456 |
|
|
$ |
239,145,771 |
|
Liabilities and Stockholders' Equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
3,663,253 |
|
|
$ |
5,468,800 |
|
Accrued
expenses |
|
|
2,890,705 |
|
|
|
10,565,640 |
|
Total
current liabilities |
|
|
6,553,958 |
|
|
|
16,034,440 |
|
Long-term liabilities: |
|
|
|
|
Term loan
facility |
|
|
19,806,944 |
|
|
|
20,270,032 |
|
Promissory note - related party |
|
|
6,583,402 |
|
|
|
6,636,449 |
|
Common
stock warrant liability |
|
|
244,292 |
|
|
|
250,000 |
|
Total
liabilities |
|
|
33,188,596 |
|
|
|
43,190,921 |
|
Stockholders' equity: |
|
|
|
|
Preferred
stock, $0.0001 par value; 10,000,000 shares authorized, and zero
shares issued and outstanding at December 31, 2017 and
September 30, 2018 |
|
|
- |
|
|
|
- |
|
Common
stock, $0.0001 par value; 200,000,000 shares authorized at
December 31, 2017 and September 30, 2018 and 50,334,152 shares
issued and outstanding at December 31, 2017 and 56,242,571
shares issued and outstanding at September 30, 2018 |
|
|
5,033 |
|
|
|
5,624 |
|
Additional paid in capital |
|
|
298,201,480 |
|
|
|
435,915,657 |
|
Accumulated other comprehensive income |
|
|
- |
|
|
|
339,942 |
|
Accumulated deficit |
|
|
(149,263,653 |
) |
|
|
(240,306,373 |
) |
Total
stockholders' equity |
|
|
148,942,860 |
|
|
|
195,954,850 |
|
Total
liabilities and stockholders' equity |
|
$ |
182,131,456 |
|
|
$ |
239,145,771 |
|
|
|
|
|
|
|
|
|
|
APELLIS PHARMACEUTICALS, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS |
(Unaudited) |
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
September 30, |
|
September 30, |
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
Operating expenses: |
|
|
|
|
|
|
|
Research
and development |
$ |
9,517,882 |
|
|
$ |
29,539,456 |
|
|
$ |
27,171,025 |
|
|
$ |
74,479,965 |
|
General
and administrative |
|
2,071,437 |
|
|
|
6,265,125 |
|
|
|
5,603,190 |
|
|
|
16,248,203 |
|
Operating loss |
|
(11,589,319 |
) |
|
|
(35,804,581 |
) |
|
|
(32,774,215 |
) |
|
|
(90,728,168 |
) |
Unrealized foreign currency loss |
|
— |
|
|
|
(426,191 |
) |
|
|
— |
|
|
|
(426,191 |
) |
Interest
income (expense), net |
|
16,847 |
|
|
|
280,891 |
|
|
|
32,813 |
|
|
|
198,214 |
|
Other
income (expense), net |
|
(801 |
) |
|
|
(22,234 |
) |
|
|
(8,796 |
) |
|
|
(86,575 |
) |
Net
loss |
|
(11,573,273 |
) |
|
|
(35,972,115 |
) |
|
|
(32,750,198 |
) |
|
|
(91,042,720 |
) |
Other
comprehensive income: |
|
|
|
|
|
|
|
Foreign
currency translation |
|
— |
|
|
|
339,942 |
|
|
|
— |
|
|
|
339,942 |
|
Comprehensive loss, net of tax |
$ |
(11,573,273 |
) |
|
$ |
(35,632,173 |
) |
|
$ |
(32,750,198 |
) |
|
$ |
(90,702,778 |
) |
Net loss
per common share, basic and diluted |
$ |
(1.37 |
) |
|
$ |
(0.64 |
) |
|
$ |
(3.88 |
) |
|
$ |
(1.69 |
) |
Weighted-average number of common shares used in net loss
per common share, basic and diluted |
|
8,442,072 |
|
|
|
56,201,299 |
|
|
|
8,432,983 |
|
|
|
53,770,400 |
|
|
|
|
|
|
|
|
|
Investor Contact:
Alex Kane
akane@w2ogroup.com
212.301.7218 (office)
929.400.2691 (mobile)
Media Contact:
Tully Nicholas
tnicholas@denterlein.com
617.482.0042 (office)
860.490.0218 (mobile)
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