Aduro Biotech Reports Fourth Quarter and Full Year 2018 Financial Results
February 27 2019 - 3:05PM
Aduro Biotech, Inc. (NASDAQ: ADRO) today reported financial results
for the fourth quarter and full year ended December 31, 2018.
“2018 was an important year for Aduro as we prioritized our core
technologies and determined a go-forward strategy that is committed
to maintaining a leadership role in the STING and APRIL pathways
and advancing our clinical programs in areas of high unmet medical
need,” said Stephen T. Isaacs, chairman, president and chief
executive officer of Aduro. “With our strategic focus established
and $277.9 million in cash taking us into 2022, we are eager to
execute on our clinical development plans for 2019 and beyond.”
Key Accomplishments in Fiscal Year 2018
STING
- Presented first-in-human monotherapy clinical data for
ADU-S100, a novel stimulator of interferon genes (STING) pathway
activator, and preliminary observations of ADU-S100 in combination
with spartalizumab during the Society for Immunotherapy of Cancer’s
(SITC) 33rd Annual Meeting
- Entered into a research collaboration and exclusive license
agreement with Eli Lilly and Company (Lilly) for the cGAS-STING
pathway inhibitor program for autoimmune and inflammatory
diseases
- Presented preclinical data on the role of intratumoral STING
activation by ADU-S100 in combination with checkpoint inhibitors in
anti-tumor immunity at the American Association for Cancer Research
(AACR) Annual Meeting 2018 and the SITC 33rd Annual Meeting
- Published a paper titled, “Magnitude of Therapeutic STING
Activation Determines CD8+ T-Cell Mediated Anti-Tumor Immunity,” in
the peer-reviewed journal, Cell Reports
APRIL
- Presented preclinical data on BION-1301 for the treatment of
IgA nephropathy at the American Society of Nephrology (ASN) Kidney
Week 2018
- Presented preclinical data on BION-1301 for the treatment of
multiple myeloma at the AACR Annual Meeting 2018 and 60th American
Society of Hematology (ASH) Annual Meeting and Exposition
- Published a paper titled, “APRIL signaling via TACI mediates
immunosuppression by T regulatory cells in multiple myeloma:
therapeutic implications,” in the peer-reviewed journal,
Leukemia
Financial Results
- Cash Position – Cash, cash equivalents and
marketable securities totaled $277.9 million at December 31, 2018,
compared to $349.7 million at December 31, 2017. In the fourth
quarter of 2018, Aduro collected an $18.1 million cash tax refund
from the Internal Revenue Service related to its carryback claim
for 2017 losses.
- Revenue – Revenues were $2.8 million for the
fourth quarter of 2018 and $15.1 million for the full year 2018,
compared to $3.8 million and $17.2 million, respectively, for the
same periods in 2017. The decrease in revenue in both periods was
primarily due to the adoption of the ASC 606 accounting standard on
January 1, 2018, which resulted in a change in revenue recognition
methodology under our Novartis collaboration agreement.
- Expenses – Research and development expenses
were $17.6 million for the fourth quarter of 2018 and $75.8 million
for the full year 2018, compared to $22.9 million and $89.4
million, respectively, for the same periods in 2017. The decrease
in research and development expenses for both periods was primarily
due to lower expenses for our antibody and LADD
programs.
- General and administrative expenses were $9.0 million for the
fourth quarter of 2018 and $36.0 million for the full year 2018,
compared to $8.8 million and $33.8 million, respectively, for the
same periods in 2017. The increase in general and administrative
expenses for both periods was primarily due to higher professional
services and consulting costs as well as stock-based compensation
expense.
- Loss on impairment of intangible assets was $4.0 million for
the fourth quarter and full year 2018. This expense was recorded
due to the discontinuation of one of our acquired early research
programs.
- Net Loss – Net loss for the fourth quarter and
year ended December 31, 2018 was $26.3 million, or $0.33 per share,
and $95.4 million, or $1.21 per share, respectively. This compared
to net loss of $26.1 million, or $0.34 per share, and $91.9
million, or $1.26 per share, respectively, for the same periods in
2017. The increase in net loss for the year was primarily due to
the income tax benefit recorded in 2017.
About Aduro Aduro Biotech, Inc. is a
clinical-stage biopharmaceutical company focused on the discovery,
development and commercialization of therapies that are designed to
harness the body’s natural immune system for the treatment of
patients with challenging diseases. Aduro’s product candidates in
the Stimulator of Interferon Genes (STING) and A Proliferation
Inducing Ligand (APRIL) pathways are being investigated in cancer,
autoimmune and inflammatory diseases. ADU-S100 (MIW815), which
potentially activates the intracellular STING receptor for a potent
tumor-specific immune response, is being evaluated in patients with
cutaneously accessible metastatic solid tumors or lymphomas.
BION-1301, a fully blocking monoclonal antibody that blocks APRIL
binding to both the BCMA and TACI receptors, is being evaluated in
multiple myeloma and as a potential treatment for IgA nephropathy.
Aduro is collaborating with a number of leading global
pharmaceutical companies to help expand and drive its product
pipeline. For more information, please visit www.aduro.com.
Cautionary Note on Forward-Looking
StatementsThis press release contains forward-looking
statements for purposes of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements include statements regarding our intentions or current
expectations concerning, among other things, our ability to execute
on our strategy, our ability to maintain a leadership role in the
STING and APRIL pathways, the potential benefits from prioritizing
our core technologies, our ability to fund our operations into
2022, the potential for our technology, our ability to execute on
our development plans, timing and the availability of results of
our clinical trials and those of our collaborators, and the
potential for eventual regulatory approval of our product
candidates. In some cases you can identify these statements by
forward-looking words such as “may,” “will,” “continue,”
“anticipate,” “intend,” “could,” “project,” “expect” or the
negative or plural of these words or similar expressions.
Forward-looking statements are not guarantees of future performance
and are subject to risks and uncertainties that could cause actual
results and events to differ materially from those anticipated,
including, but not limited to, our history of net operating losses
and uncertainty regarding our ability to achieve profitability, our
ability to develop and commercialize our product candidates, our
ability to use and expand our technology platforms to build a
pipeline of product candidates, our ability to obtain and maintain
regulatory approval of our product candidates, our ability to
operate in a competitive industry and compete successfully against
competitors that have greater resources than we do, our reliance on
third parties, and our ability to obtain and adequately protect
intellectual property rights for our product candidates. We
discuss many of these risks in greater detail under the heading
“Risk Factors” contained in our annual report on Form 10-K for the
year ended December 31, 2018, to be filed with the Securities and
Exchange Commission. Forward-looking statements are not guarantees
of future performance, and our actual results of operations,
financial condition and liquidity, and the development of the
industry in which we operate, may differ materially from the
forward-looking statements contained in this press release. Any
forward-looking statements that we make in this press release speak
only as of the date of this press release. We assume no obligation
to update our forward-looking statements whether as a result of new
information, future events or otherwise, after the date of this
press release.
|
ADURO BIOTECH, INC. |
Condensed Consolidated Statements of
Operations |
(In thousands, except share and per share
amounts) |
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(audited) |
|
|
(audited) |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collaboration and license
revenue |
$ |
2,758 |
|
|
$ |
3,756 |
|
|
$ |
15,087 |
|
|
$ |
17,109 |
|
Grant revenue |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
130 |
|
Total revenue |
|
2,758 |
|
|
|
3,756 |
|
|
|
15,087 |
|
|
|
17,239 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
17,614 |
|
|
|
22,917 |
|
|
|
75,836 |
|
|
|
89,382 |
|
General and administrative |
|
9,014 |
|
|
|
8,769 |
|
|
|
36,035 |
|
|
|
33,751 |
|
Loss on impairment of intangible
assets |
|
3,992 |
|
|
|
— |
|
|
|
3,992 |
|
|
|
— |
|
Amortization of intangible
assets |
|
141 |
|
|
|
146 |
|
|
|
584 |
|
|
|
559 |
|
Total operating expenses |
|
30,761 |
|
|
|
31,832 |
|
|
|
116,447 |
|
|
|
123,692 |
|
Net loss from operations |
|
(28,003 |
) |
|
|
(28,076 |
) |
|
|
(101,360 |
) |
|
|
(106,453 |
) |
Interest income, net |
|
1,392 |
|
|
|
1,016 |
|
|
|
5,284 |
|
|
|
3,444 |
|
Other expense, net |
|
(49 |
) |
|
|
(21 |
) |
|
|
(64 |
) |
|
|
(218 |
) |
Loss before income tax |
|
(26,660 |
) |
|
|
(27,081 |
) |
|
|
(96,140 |
) |
|
|
(103,227 |
) |
Income tax benefit |
|
339 |
|
|
|
950 |
|
|
|
783 |
|
|
|
11,364 |
|
Net loss |
$ |
(26,321 |
) |
|
$ |
(26,131 |
) |
|
$ |
(95,357 |
) |
|
$ |
(91,863 |
) |
Net loss per common share, basic |
$ |
(0.33 |
) |
|
$ |
(0.34 |
) |
|
$ |
(1.21 |
) |
|
$ |
(1.26 |
) |
Net loss income per common share, diluted |
$ |
(0.33 |
) |
|
$ |
(0.34 |
) |
|
$ |
(1.21 |
) |
|
$ |
(1.26 |
) |
Shares used in computing net loss per common
share, basic |
|
79,421,381 |
|
|
|
77,350,401 |
|
|
|
78,812,407 |
|
|
|
72,901,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADURO BIOTECH, INC. |
Condensed Consolidated Balance
Sheets |
(In thousands) |
(Audited) |
|
|
|
|
December 31, |
|
|
2018 |
|
|
2017 |
|
Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
126,310 |
|
|
$ |
157,614 |
|
Short-term marketable
securities |
|
140,129 |
|
|
|
168,489 |
|
Accounts receivable |
|
12,037 |
|
|
|
989 |
|
Income tax receivable |
|
— |
|
|
|
17,495 |
|
Prepaid expenses and other current
assets |
|
4,500 |
|
|
|
5,544 |
|
Total current assets |
|
282,976 |
|
|
|
350,131 |
|
Long-term marketable securities |
|
11,434 |
|
|
|
23,614 |
|
Property and equipment, net |
|
29,157 |
|
|
|
31,085 |
|
Goodwill |
|
8,334 |
|
|
|
8,723 |
|
Intangible assets, net |
|
25,135 |
|
|
|
31,107 |
|
Restricted cash |
|
468 |
|
|
|
468 |
|
Total assets |
$ |
357,504 |
|
|
$ |
445,128 |
|
Liabilities and
Stockholders’
Equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
$ |
1,457 |
|
|
$ |
1,150 |
|
Accrued clinical trial and
manufacturing expenses |
|
2,542 |
|
|
|
5,898 |
|
Accrued expenses and other
liabilities |
|
10,518 |
|
|
|
12,601 |
|
Contingent consideration |
|
— |
|
|
|
6,829 |
|
Deferred revenue |
|
16,000 |
|
|
|
14,923 |
|
Total current liabilities |
|
30,517 |
|
|
|
41,401 |
|
Deferred rent |
|
11,063 |
|
|
|
9,991 |
|
Contingent consideration |
|
998 |
|
|
|
759 |
|
Deferred revenue |
|
172,671 |
|
|
|
148,148 |
|
Deferred tax liabilities |
|
6,104 |
|
|
|
6,538 |
|
Other long-term liabilities |
|
840 |
|
|
|
818 |
|
Total liabilities |
|
222,193 |
|
|
|
207,655 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
8 |
|
|
|
8 |
|
Additional paid-in capital |
|
538,895 |
|
|
|
519,435 |
|
Accumulated other comprehensive
income |
|
940 |
|
|
|
1,893 |
|
Accumulated deficit |
|
(404,532 |
) |
|
|
(283,863 |
) |
Total stockholders’ equity |
|
135,311 |
|
|
|
237,473 |
|
Total liabilities and stockholders’
equity |
$ |
357,504 |
|
|
$ |
445,128 |
|
|
|
|
|
|
|
|
|
|
|
Investor Relations Contact: |
Media Contact: |
Noopur Liffick |
Aljanae Reynolds |
510-809-2465 |
510-809-2452 |
investors@aduro.com |
press@aduro.com |
|
|
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