Full Press Release Details
| Notes | As of June 30, 2020 | As of December 31, 2019 | ||||||
| ASSETS | ||||||||
| Non-current assets | ||||||||
| Property, plant and equipment | 5 | 3,770 | 3,917 | |||||
| Right-of-use assets | 6 | 2,040 | 2,255 | |||||
| Long-term financial assets | 8 | 304 | 304 | |||||
| Total non-current assets | 6,114 | 6,476 | ||||||
| Current assets | ||||||||
| Prepaid expenses | 7 | 3,689 | 2,788 | |||||
| Accrued income | 3 | 424 | 1,095 | |||||
| Other current receivables | 567 | 304 | ||||||
| Short-term financial assets | 8 | 85,000 | 95,000 | |||||
| Cash and cash equivalents | 8 | 177,464 | 193,587 | |||||
| Total current assets | 267,144 | 292,774 | ||||||
| Total assets | 273,258 | 299,250 | ||||||
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||||||||
| Shareholders' equity | ||||||||
| Share capital | 1,438 | 1,437 | ||||||
| Share premium | 346,634 | 346,526 | ||||||
| Accumulated losses | (97,210 | ) | (75,521) | |||||
| Total shareholders' equity | 250,862 | 272,442 | ||||||
| Non-current liabilities | ||||||||
| Long-term lease liabilities | 6 | 1,602 | 1,813 | |||||
| Net employee defined benefit liabilities | 7,847 | 7,485 | ||||||
| Total non-current liabilities | 9,449 | 9,298 | ||||||
| Current liabilities | ||||||||
| Trade and other payables | 1,442 | 142 | ||||||
| Accrued expenses | 9,339 | 11,797 | ||||||
| Short-term deferred income | 3 | 1,407 | 4,477 | |||||
| Short-term financing obligation | 9 | 321 | 652 | |||||
| Short-term lease liabilities | 6 | 438 | 442 | |||||
| Total current liabilities | 12,947 | 17,510 | ||||||
| Total liabilities | 22,396 | 26,808 | ||||||
| Total shareholders' equity and liabilities | 273,258 | 299,250 |
accompanying notes form an integral part of these Interim Condensed Financial Statements (Unaudited).
Statements of Income/(Loss)
(in CHF thousands except for share
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||
| Notes | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
| Revenue | ||||||||||||||||||||
| Contract revenue | 3 | 1,278 | 1,511 | 13,689 | 76,553 | |||||||||||||||
| Total revenue | 1,278 | 1,511 | 13,689 | 76,553 | ||||||||||||||||
| Operating expenses | ||||||||||||||||||||
| Research & development expenses | (12,809 | ) | (12,700 | ) | (28,018 | ) | (24,293 | ) | ||||||||||||
| General & administrative expenses | (4,156 | ) | (3,585 | ) | (8,660 | ) | (6,879 | ) | ||||||||||||
| Total operating expenses | (16,965 | ) | (16,285 | ) | (36,678 | ) | (31,172 | ) | ||||||||||||
| Operating income/(loss) | (15,687 | ) | (14,774 | ) | (22,989 | ) | 45,381 | |||||||||||||
| Finance expense, net | (13 | ) | (1,732 | ) | (405 | ) | (1,812 | ) | ||||||||||||
| Change in fair value of conversion feature | - | 36 | - | 4,542 | ||||||||||||||||
| Interest income | 17 | 75 | 78 | 164 | ||||||||||||||||
| Interest expense | (55 | ) | (504 | ) | (109 | ) | (1,601 | ) | ||||||||||||
| Finance result, net | 11 | (51 | ) | (2,125 | ) | (436 | ) | 1,293 | ||||||||||||
| Income/(loss) before tax | (15,738 | ) | (16,899 | ) | (23,425 | ) | 46,674 | |||||||||||||
| Income tax expense | - | - | - | - | ||||||||||||||||
| Income/(loss) for the period | (15,738 | ) | (16,899 | ) | (23,425 | ) | 46,674 | |||||||||||||
| Earnings/(loss) per share (EPS): | 4 | |||||||||||||||||||
| Basic income/(loss) for the period attributable to equity holders | (0.22 | ) | (0.24 | ) | (0.33 | ) | 0.67 | |||||||||||||
| Diluted income/(loss) for the period attributable to equity holders | (0.22 | ) | (0.24 | ) | (0.33 | ) | 0.67 |
| Statements of Comprehensive Income/(Loss) | For the Three Months ended June 30, | For the Six Months ended June 30, | ||||||||||||||
| (in CHF thousands) | 2020 | 2019 | 2020 | 2019 | ||||||||||||
| Income/(loss) for the period | (15,738 | ) | (16,899 | ) | (23,425 | ) | 46,674 | |||||||||
| Other comprehensive income/(loss) not to be reclassified to income or loss in subsequent periods (net of tax): | ||||||||||||||||
| Re-measurement losses on defined benefit plans | - | - | - | - | ||||||||||||
| Total comprehensive income/(loss), net of tax | (15,738 | ) | (16,899 | ) | (23,425 | ) | 46,674 |
accompanying notes form an integral part of these Interim Condensed Financial Statements (Unaudited).
Statements of Changes in Equity
| Share capital | Share premium | Accumulated losses | Total | |||||||||||||
| Balance as of January 1, 2019 | 1,351 | 298,149 | (121,877 | ) | 177,623 | |||||||||||
| Net income for the period | - | - | 46,674 | 46,674 | ||||||||||||
| Other comprehensive income/(loss) | - | - | - | - | ||||||||||||
| Total comprehensive income | - | - | 46,674 | 46,674 | ||||||||||||
| Share-based payments | - | - | 1,146 | 1,146 | ||||||||||||
| Issuance of shares: | ||||||||||||||||
| Conversion of note agreement, net of transaction costs | 73 | 47,705 | - | 47,778 | ||||||||||||
| Restricted share awards | - | 113 | (113 | ) | - | |||||||||||
| Exercise of options, net of transaction costs | 12 | 57 | - | 69 | ||||||||||||
| Balance as of June 30, 2019 | 1,436 | 346,024 | (74,170 | ) | 273,290 |
| Share capital | Share premium | Accumulated losses | Total | |||||||||||||
| Balance as of January 1, 2020 | 1,437 | 346,526 | (75,521 | ) | 272,442 | |||||||||||
| Net loss for the period | - | - | (23,425 | ) | (23,425 | ) | ||||||||||
| Other comprehensive income/(loss) | - | - | - | - | ||||||||||||
| Total comprehensive income | - | - | (23,425 | ) | (23,425 | ) | ||||||||||
| Share-based payments | - | - | 1,847 | 1,847 | ||||||||||||
| Issuance of shares: | ||||||||||||||||
| Restricted share awards | - | 111 | (111 | ) | - | |||||||||||
| Exercise of options | 1 | (3 | ) | - | (2 | ) | ||||||||||
| Balance as of June 30, 2020 | 1,438 | 346,634 | (97,210 | ) | 250,862 |
accompanying notes form an integral part of these Interim Condensed Financial Statements (Unaudited).
Statements of Cash Flows
| For the Six Months Ended June 30, | ||||||
| Notes | 2020 | 2019 | ||||
| Operating activities | ||||||
| Net income/(loss) for the period | (23,425 | ) | 46,674 | |||
| Adjustments to reconcile net loss for the period to net cash flows: | ||||||
| Depreciation of property, plant and equipment | 5 | 734 | 584 | |||
| Depreciation of right-of-use assets | 6 | 215 | 207 | |||
| Finance expense, net | 11 | 282 | 1,648 | |||
| Share-based compensation expense | 1,847 | 1,146 | ||||
| Change in net employee defined benefit liability | 363 | 289 | ||||
| Change in fair value of conversion feature | 11 | - | (4,542) | |||
| Interest expense | 11 | 109 | 1,601 | |||
| Changes in working capital: | ||||||
| (Increase) in prepaid expenses | 7 | (951 | ) | (553) | ||
| Decrease in accrued income | 672 | 3,120 | ||||
| (Increase) in other current receivables | (263 | ) | (838) | |||
| (Decrease) in accrued expenses | (2,348 | ) | (2,085) | |||
| (Decrease)/Increase in deferred income | 3 | (3,071 | ) | 5,488 | ||
| Increase/(Decrease) in trade and other payables | 1,357 | (1,861) | ||||
| Cash provided by/(used in) operating activities | (24,479 | ) | 50,878 | |||
| Interest income | 78 | 164 | ||||
| Interest paid | (151 | ) | (86) | |||
| Finance costs | (5 | ) | (7) | |||
| Net cash flows provided by/(used in) operating activities | (24,557 | ) | 50,949 | |||
| Investing activities | ||||||
| Short-term financial assets, net | 8 | 10,000 | (50,000) | |||
| Purchases of property, plant and equipment | 5 | (587 | ) | (850) | ||
| Net cash flows provided by/(used in) investing activities | 9,413 | (50,850) | ||||
| Financing activities | ||||||
| Repayment of short-term debt obligation | 9 | (263 | ) | - | ||
| Principal payments of lease obligations | 6 | (215 | ) | (206) | ||
| Proceeds from issuance of common shares | (3 | ) | 69 | |||
| Proceeds from issuance of convertible loan | - | 50,278 | ||||
| Transaction costs on issuance of shares | - | (510) | ||||
| Proceeds from long-term financing | - | 101 | ||||
| Net cash flows provided by/(used in) financing activities | (481 | ) | 49,732 | |||
| Net (decrease)/increase in cash and cash equivalents | (15,625 | ) | 49,831 | |||
| Cash and cash equivalents at January 1 | 193,587 | 156,462 | ||||
| Exchange loss on cash and cash equivalents | (498 | ) | (558) | |||
| Cash and cash equivalents at June 30 | 177,464 | 205,735 | ||||
| Net increase/(decrease) in cash and cash equivalents | (15,625 | ) | 49,831 |
Additional Information:
For the six months ended June 30, 2019,
the Company settled its convertible loan via equity for CHF 48.3 million, gross of CHF 510 thousand for transaction costs.
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 share and per share amounts)
"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 associated
with protein misfolding. Misfolded proteins are generally recognized as the leading cause of neurodegenerative diseases, such as
Alzheimer's disease, or AD, and Parkinson's disease, or PD, with common mechanisms and drug targets, such as Abeta,
Tau and alpha-synuclein. Our corporate strategy is founded upon a three-pillar approach that targets Alzheimer's disease,
non-Alzheimer's neurodegenerative diseases including NeuroOrphan indications and 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.
The Interim Condensed
Financial Statements of AC Immune SA as of and for the three and six months ended June 30, 2020, were authorized for issuance by
the Company's Audit and Finance Committee on August 4, 2020.
Condensed Financial Statements as of and for the three and six months ended June 30, 2020, 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 the Company's Annual Report on Form 20-F for the year ended December
31, 2019, and any public announcements made by the Company during the interim reporting period.
Basis of measurement
statements have been prepared under the historical cost convention.
into licensing agreements 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, up-front 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), except
for revenues from royalties on net sales of products commercialized from the Company's IP, which are classified as royalty
intellectual property: If the license to the Company's intellectual property 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 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 as 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.
development services: The Company has certain arrangements with our collaboration partners that include contracting our full-time
employees for research and development 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.
revenues: The Company has certain arrangements with our collaboration partners that include provisions for sublicensing. The
Company recognizes any sublicense revenues at the point in time it is highly probable to obtain and not subject to reversal in
For arrangements that include sales-based royalties, including milestone payments based on the level of sales, and the license
is deemed to be the predominant item to which the royalties relate, the Company recognizes revenue at the later of (i) when the
related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied
(or partially satisfied). To date, the Company has not recognized any royalty revenue resulting from any of its licensing and collaboration
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 one year or less.
and accounting estimates
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 of accounting policies as it relates to the reported amounts of assets, liabilities, income and expenses.
AC Immune has had to make judgments, estimates and assumptions relate to (i) revenue recognition on licensing and collaboration
agreements, (ii) clinical development accruals, (iii) net employee defined benefit liability, (iv) income taxes, (v) share-based
compensation and (vi) right-of-use assets and lease liabilities. Actual results may differ from these estimates. Estimates and
underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which
the estimates are revised.
Accounting policies, new standards,
interpretations and amendments adopted by the Company
policies adopted in the preparation of the Interim Condensed Financial Statements are consistent with those followed in the preparation
of the Company's annual financial statements for the year ended December 31, 2019.
not adopted any other standard, interpretation or amendment that has been issued but is not yet effective. Such standards are not
currently expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future
The Company believes
it will be able to meet all of its obligations as they fall due for at least 12 months from June 30, 2020, after considering the
Company's cash position of CHF 177.5 million and short-term financial assets of CHF 85 million as of June 30, 2020. Hence,
the unaudited Interim Condensed Financial Statements have been prepared on a going concern basis.
To date, the Company
has financed its cash requirements primarily from its public offerings, share issuances and revenues from license and collaboration
agreements. The Company is a clinical stage company and is exposed to all the risks inherent to establishing a business. Inherent