Full Press Release Details
| Notes | As of March 31, 2021 | As of December 31, 2020 | ||||||||
| ASSETS | ||||||||||
| Non-current assets | ||||||||||
| Property, plant and equipment | 5 | 4,896 | 4,416 | |||||||
| Right-of-use assets | 6 | 2,147 | 2,223 | |||||||
| Long-term accrued income | 3 | 93 | - | |||||||
| Long-term financial assets | 8 | 334 | 334 | |||||||
| Total non-current assets | 7,470 | 6,973 | ||||||||
| Current assets | ||||||||||
| Prepaid expenses | 7 | 3,330 | 3,954 | |||||||
| Short-term accrued income | 3 | 688 | 1,591 | |||||||
| Other current receivables | 379 | 329 | ||||||||
| Short-term financial assets | 8 | 65,000 | 65,000 | |||||||
| Cash and cash equivalents | 8 | 151,092 | 160,893 | |||||||
| Total current assets | 220,489 | 231,767 | ||||||||
| Total assets | 227,959 | 238,740 | ||||||||
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||||||||||
| Shareholders' equity | ||||||||||
| Share capital | 1,539 | 1,538 | ||||||||
| Share premium | 354,736 | 346,890 | ||||||||
| Treasury shares | 9 | (85 | ) | (100 | ) | |||||
| Accumulated losses | (148,774 | ) | (132,850 | ) | ||||||
| Total shareholders' equity | 207,416 | 215,478 | ||||||||
| Non-current liabilities | ||||||||||
| Long-term deferred income | 3 | 93 | - | |||||||
| Long-term lease liabilities | 6 | 1,706 | 1,780 | |||||||
| Net employee defined-benefit liabilities | 7,619 | 7,464 | ||||||||
| Total non-current liabilities | 9,418 | 9,244 | ||||||||
| Current liabilities | ||||||||||
| Trade and other payables | 370 | 2,184 | ||||||||
| Accrued expenses | 9,734 | 11,085 | ||||||||
| Short-term deferred income | 3 | 580 | 306 | |||||||
| Short-term lease liabilities | 6 | 441 | 443 | |||||||
| Total current liabilities | 11,125 | 14,018 | ||||||||
| Total liabilities | 20,543 | 23,262 | ||||||||
| Total shareholders' equity and liabilities | 227,959 | 238,740 |
The accompanying notes
form an integral part of these Interim Condensed Financial Statements (Unaudited).
Statements of Income/(Loss)
(in CHF thousands except for per share
| For the Three Months Ended March 31, | ||||||||||
| Notes | 2021 | 2020 | ||||||||
| Revenue | ||||||||||
| Contract revenue | 3 | - | 12,281 | |||||||
| Total revenue | - | 12,281 | ||||||||
| Operating expenses | ||||||||||
| Research & development expenses | (13,329 | ) | (15,209 | ) | ||||||
| General & administrative expenses | (4,338 | ) | (4,504 | ) | ||||||
| Other operating income/(expense) | 416 | 130 | ||||||||
| Total operating expenses | (17,251 | ) | (19,583 | ) | ||||||
| Operating loss | (17,251 | ) | (7,302 | ) | ||||||
| Financial income | - | 59 | ||||||||
| Financial expense | (26 | ) | (57 | ) | ||||||
| Exchange differences | 543 | (389 | ) | |||||||
| Finance result, net | 10 | 517 | (387 | ) | ||||||
| Loss before tax | (16,734 | ) | (7,689 | ) | ||||||
| Income tax expense | - | - | ||||||||
| Loss for the period | (16,734 | ) | (7,689 | ) | ||||||
| Loss per share: | 4 | |||||||||
| Basic and diluted loss for the period attributable to equity holders | (0.23 | ) | (0.11 | ) |
| Statements of Comprehensive Income/(Loss) | For the Three Months Ended March 31, | |||||||
| (in CHF thousands) | 2021 | 2020 | ||||||
| Loss for the period | (16,734 | ) | (7,689 | ) | ||||
| Other comprehensive loss not to be reclassified to income or loss in subsequent periods (net of tax): | ||||||||
| Re-measurement losses on defined-benefit plans (net of tax) | - | - | ||||||
| Total comprehensive loss, net of tax | (16,734 | ) | (7,689 | ) |
The accompanying notes
form an integral part of these Interim Condensed Financial Statements (Unaudited).
Statements of Changes in Equity
| Notes | Share capital | Share premium | Treasury shares | Accumulated losses | Total | |||||||||||||||||
| Balance as of January 1, 2020 | 1,437 | 346,526 | - | (75,521 | ) | 272,442 | ||||||||||||||||
| Net loss for the period | - | - | - | (7,689 | ) | (7,689 | ) | |||||||||||||||
| Other comprehensive income/(loss) | - | - | - | - | - | |||||||||||||||||
| Total comprehensive income | - | - | - | (7,689 | ) | (7,689 | ) | |||||||||||||||
| - | ||||||||||||||||||||||
| Share-based payments | - | - | - | 852 | 852 | |||||||||||||||||
| Issuance of shares, net of transaction costs: | ||||||||||||||||||||||
| restricted share awards | - | 46 | - | (46 | ) | - | ||||||||||||||||
| exercise of options | (4 | ) | - | - | (4 | ) | ||||||||||||||||
| Balance as of March 31, 2020 | 1,437 | 346,568 | - | (82,404 | ) | 265,601 |
| Notes | Share capital | Share premium | Treasury shares | Accumulated losses | Total | |||||||||||||||||
| Balance as of January 1, 2021 | 1,538 | 346,890 | (100 | ) | (132,850 | ) | 215,478 | |||||||||||||||
| Net loss for the period | - | - | - | (16,734 | ) | (16,734 | ) | |||||||||||||||
| Other comprehensive income/(loss) | - | - | - | - | - | |||||||||||||||||
| Total comprehensive income | - | - | - | (16,734 | ) | (16,734 | ) | |||||||||||||||
| - | ||||||||||||||||||||||
| Share-based payments | - | - | - | 857 | 857 | |||||||||||||||||
| Proceeds from sale of treasury shares in public offerings, net of underwriting fees | 9 | - | 7,937 | 15 | - | 7,952 | ||||||||||||||||
| Transaction offering costs | - | (125 | ) | - | - | (125 | ) | |||||||||||||||
| Issuance of shares, net of transaction costs: | ||||||||||||||||||||||
| restricted share awards | 1 | 39 | - | (47 | ) | (7 | ) | |||||||||||||||
| exercise of options | - | (5 | ) | - | - | (5 | ) | |||||||||||||||
| Balance as of March 31, 2021 | 1,539 | 354,736 | (85 | ) | (148,774 | ) | 207,416 |
The accompanying notes
form an integral part of these Interim Condensed Financial Statements (Unaudited).
Statements of Cash Flows
| For the Three Months Ended March 31, | ||||||||||
| Notes | 2021 | 2020 | ||||||||
| Operating activities | ||||||||||
| Loss for the period | (16,734 | ) | (7,689 | ) | ||||||
| Adjustments to reconcile net loss for the period to net cash flows | ||||||||||
| Depreciation of property, plant and equipment | 5 | 441 | 368 | |||||||
| Depreciation of right-of-use assets | 6 | 107 | 108 | |||||||
| Finance expense, net | 10 | (638 | ) | 433 | ||||||
| Share-based compensation expense | 857 | 852 | ||||||||
| Change in net employee defined-benefit liability | 155 | 181 | ||||||||
| Interest expense | 10 | 23 | 54 | |||||||
| Changes in working capital | ||||||||||
| Decrease/(increase) in prepaid expenses | 7 | 586 | (632 | ) | ||||||
| Decrease in accrued income | 3 | 810 | 881 | |||||||
| (Increase) in other current receivables | (50 | ) | (247 | ) | ||||||
| (Decrease) in accrued expenses | (1,449 | ) | (2,587 | ) | ||||||
| Increase)/(decrease) in deferred income | 3 | 368 | (2,025 | ) | ||||||
| Increase/(decrease) in trade and other payables | (1,798 | ) | 640 | |||||||
| Cash used in operating activities | (17,322 | ) | (9,663 | ) | ||||||
| Interest income | - | 60 | ||||||||
| Interest paid | (15 | ) | (80 | ) | ||||||
| Finance costs | (2 | ) | (4 | ) | ||||||
| Net cash flows used in operating activities | (17,339 | ) | (9,687 | ) | ||||||
| Investing activities | ||||||||||
| Purchases of property, plant and equipment | 5 | (790 | ) | (212 | ) | |||||
| Net cash flows used in investing activities | (790 | ) | (212 | ) | ||||||
| Financing activities | ||||||||||
| Repayment of short-term financing obligation | - | (263 | ) | |||||||
| Principal payments of lease obligations | 6 | (108 | ) | (107 | ) | |||||
| Proceeds from sale of treasury shares in public offerings, net of underwriting fees | 9 | 7,952 | - | |||||||
| Transaction costs on public offerings | (125 | ) | - | |||||||
| Proceeds from issuance of common shares | (12 | ) | (4 | ) | ||||||
| Net cash flows provided by/(used in) financing activities | 7,707 | (374 | ) | |||||||
| Net decrease in cash and cash equivalents | (10,422 | ) | (10,273 | ) | ||||||
| Cash and cash equivalents at January 1 | 160,893 | 193,587 | ||||||||
| Exchange gain/(loss) on cash and cash equivalents | 621 | (454 | ) | |||||||
| Cash and cash equivalents at March 31 | 151,092 | 182,860 | ||||||||
| Net decrease in cash and cash equivalents | (10,422 | ) | (10,273 | ) |
Additional Information
For the three months ended March 31, 2021, the
acquisition CHF 0.1 million of property, plant and equipment was non-paid and recorded within accrued expenses.
The accompanying notes
form an integral part of these Interim Condensed Financial Statements (Unaudited).
Notes to the Interim Condensed Financial
Statements (Unaudited)
(in CHF thousands except for share and per share amounts)
AC Immune SA (the "Company,"
"AC Immune," "ACIU," "we," "our," "ours," or "us") is a clinical-stage
biopharmaceutical company leveraging our two proprietary technology platforms to discover, design and develop novel proprietary medicines
and diagnostics for prevention and treatment of neurodegenerative diseases (NDD) associated with protein misfolding. Misfolded proteins
are generally recognized as the leading cause of NDD, such as Alzheimer's disease (AD) and Parkinson's disease (PD), with
common mechanisms and drug targets, such as amyloid beta (Abeta), Tau, alpha-synuclein (a-syn) and TDP-43. Our corporate strategy is founded
upon a three-pillar approach that targets (i) AD, (ii) focused non-AD NDD (including NeuroOrphan indications) and (iii) diagnostics. We
use our two unique proprietary platform technologies, SupraAntigen (conformation-specific biologics) and Morphomer (conformation-specific
small molecules), to discover, design and develop novel medicines and diagnostics to target misfolded proteins.
Interim Condensed Financial Statements of AC Immune SA as of and for the three months ended March 31, 2021 were authorized for issuance
by the Company's Audit and Finance Committee on April 27, 2021.
Statement of compliance
These Interim Condensed
Financial Statements as of and for the three months ended March 31, 2021, have been prepared in accordance with International Accounting
Standard 34 (IAS 34), Interim Financial Reporting, and such financial information should be read in conjunction with the audited
financial statements in AC Immune's Annual Report on Form 20-F for the year ended December 31, 2020, and any public announcements
made by the Company during the interim reporting period.
Basis of measurement
The financial statements
have been prepared under the historical cost convention.
The Company has adopted IFRS 15 (Revenue from
Contracts with Customers). This standard applies to all contracts with customers, except for contracts that are within the scope of
other standards, such as leases, insurance, collaboration arrangements and financial instruments. Under IFRS 15, an entity recognizes
revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity
expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines
are within the scope of IFRS 15, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify
the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance
obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company applies
the five-step model to contracts only when it is probable that the entity will collect the consideration to which it is entitled in exchange
for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope
of IFRS 15, the Company assesses the goods or services promised within each contract, determines those that are performance obligations,
and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price
that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.
The Company enters into licensing and collaboration
agreements (LCAs), which are within the scope of IFRS 15, under which it licenses certain rights to its product candidates and intellectual
property (IP) to third parties. The terms of these arrangements typically include payment to the Company of one or more of the following:
non-refundable, upfront license fees; development, regulatory and/or commercial milestone payments; payments for research and clinical
services the Company provides through either its full-time employees or third-party vendors; and royalties on net sales of licensed products
commercialized from the Company's IP. Each of these payments results in license, collaboration and other revenues, which are classified
as contract revenue on the statements of income/(loss).
Licenses of intellectual property
If the license to the Company's intellectual
property (IP) is determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes
revenues from non-refundable, upfront fees allocated to the license when the license is transferred to the customer and the customer is
able to use and benefit from the license. For licenses that are sold in conjunction with a related service, the Company uses its judgment
to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over
time or at a point in time. If the performance obligation is settled over time, the Company determines the appropriate method of measuring
progress for purposes of recognizing revenue from non-refundable, upfront fees. The Company evaluates the measure of progress each reporting
period and, if necessary, adjusts the measure of performance and related revenue recognition.
At the inception of each arrangement that includes
development, regulatory and/or commercial milestone payments, the Company evaluates whether the milestones are considered highly probable
of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is highly
probable that a significant revenue reversal would not occur in future periods, the associated milestone value is included in the transaction
price. These amounts for the performance obligations under the contract are recognized at the time they are satisfied. At the end of each
subsequent reporting period, the Company re-evaluates the probability of achievement of such milestones and any related constraint and,
if necessary, adjusts its estimate of the overall transaction price. Any such adjustments recorded would affect contract revenues and
earnings in the period of adjustment.
Research and development services
The Company has certain arrangements with our
collaboration partners that include contracting our employees for research and development (R&D) programs. The Company assesses if
these services are considered distinct in the context of each contract and, if so, they are accounted for as separate performance obligations.
These revenues are recorded in contract revenue as the services are performed.
The Company has certain arrangements with our
collaboration partners that include provisions for sublicensing. The Company recognizes any sublicense revenues at the time point at which
it is highly probable they will be obtained and will not be subject to reversal in the future.
The Company receives payments and determines credit
terms from its customers for its various performance obligations based on billing schedules established in each contract. The timing of
revenue recognition, billings and cash collections results in billed other current receivables, accrued income (contract assets) and deferred
income (contract liabilities) on the balance sheets. Amounts are recorded as other current receivables when the Company's right
to consideration is unconditional. The Company does not assess whether a contract has a significant financing component if the expectation
at contract inception is such that the period between payment by the licensees and the transfer of the promised goods or services to the
licensees will be 1 year or less.
Critical judgments and accounting estimates
The preparation of the
Company's Interim Condensed Financial Statements in conformity with IAS 34 requires management to make judgments, estimates and
assumptions that affect the amounts reported in the Interim Condensed Financial Statements and accompanying notes, and the related application