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Interim Condensed Financial Statements (Unaudited)
Interim Condensed Financial
Statements (Unaudited) (IFRS) as of and for the three month period ended March 31, 2017
EPFL Innovation Park
Interim Condensed Financial
Statements (Unaudited)
| Notes | As of March 31, 2017 | As of December 31, 2016 | ||||||||||
| in CHF thousands | ||||||||||||
| ASSETS | ||||||||||||
| Non-current assets | ||||||||||||
| Property, plant and equipment | 5 | 2,084 | 1,120 | |||||||||
| Financial assets | 126 | 86 | ||||||||||
| Total non-current assets | 2,210 | 1,206 | ||||||||||
| Current assets | ||||||||||||
| Prepaid expenses | 6 | 2,283 | 1,278 | |||||||||
| Accrued income | 532 | 889 | ||||||||||
| Other current receivables | 1,490 | 517 | ||||||||||
| Cash and cash equivalents | 138,084 | 152,210 | ||||||||||
| Total current assets | 142,389 | 154,894 | ||||||||||
| Total assets | 144,599 | 156,100 | ||||||||||
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||||||||||||
| Shareholders' equity | ||||||||||||
| Share capital | 1,139 | 1,135 | ||||||||||
| Share premium | 188,191 | 188,166 | ||||||||||
| Accumulated losses | (56,276 | ) | (46,921 | ) | ||||||||
| Total shareholders' equity | 133,054 | 142,380 | ||||||||||
| Non-current liabilities | ||||||||||||
| Net employee defined benefit liabilities | 3,888 | 3,798 | ||||||||||
| Total non-current liabilities | 3,888 | 3,798 | ||||||||||
| Current liabilities | ||||||||||||
| Trade payables and other payables | 2,641 | 4,035 | ||||||||||
| Accrued expenses | 4,888 | 5,366 | ||||||||||
| Deferred income | 128 | 521 | ||||||||||
| Total current liabilities | 7,657 | 9,922 | ||||||||||
| Total liabilities | 11,545 | 13,720 | ||||||||||
| Total shareholders' equity and liabilities | 144,599 | 156,100 |
The accompanying notes form an integral
part of these Interim Condensed Financial Statements (Unaudited).
Interim Condensed Financial
Statements (Unaudited)
Statements of Income / (Loss)
| For the Three Months Ended March 31, | ||||||||||||
| Notes | 2017 | 2016 | ||||||||||
| (in CHF thousands except for share and per share data) | ||||||||||||
| Revenue | ||||||||||||
| Contract revenue | 3 | 2,006 | 487 | |||||||||
| Total revenue | 2,006 | 487 | ||||||||||
| Operating expenses | ||||||||||||
| Research & development expenses | (7,454 | ) | (5,372 | ) | ||||||||
| General & administrative expenses | (2,386 | ) | (899 | ) | ||||||||
| Total operating expenses | (9,840 | ) | (6,271 | ) | ||||||||
| Operating loss | (7,834 | ) | (5,784 | ) | ||||||||
| Finance income | 13 | 1 | ||||||||||
| Finance costs | (1,634 | ) | (392 | ) | ||||||||
| Finance result, net | (1,621 | ) | (391 | ) | ||||||||
| Loss before tax | (9,455 | ) | (6,175 | ) | ||||||||
| Income tax expense | - | - | ||||||||||
| Loss for the period | 4 | (9,455 | ) | (6,175 | ) | |||||||
| Loss per share (EPS): | ||||||||||||
| Basic and diluted, loss for the period attributable to equity holders | (0.17 | ) | (0.13 | ) | ||||||||
| Weighted-average number of shares used to compute EPS basic and diluted | 56,855,987 | 46,402,500 |
Statements of Comprehensive Income / (Loss)
| For the Three Months Ended March 31, | ||||||||
| 2017 | 2016 | |||||||
| (in CHF thousands) | ||||||||
| Loss for the period | (9,455 | ) | (6,175 | ) | ||||
| Other comprehensive loss not to be reclassified to income or loss in subsequent periods (net of tax) | ||||||||
| Re-measurement losses on defined benefit plans | - | (184 | ) | |||||
| Total comprehensive loss, net of tax | (9,455 | ) | (6,359 | ) |
The accompanying notes form an integral
part of these Interim Condensed Financial Statements (Unaudited).
Interim Condensed Financial
Statements (Unaudited)
Statements of Changes in Equity
| Share capital | Share premium | Accumulated losses | Total | |||||||||||||
| (in CHF thousands) | ||||||||||||||||
| Balance as of January 1, 2016 | 928 | 110,496 | (40,381 | ) | 71,043 | |||||||||||
| Net loss for the period | - | - | (6,175 | ) | (6,175 | ) | ||||||||||
| Other comprehensive loss | - | - | (184 | ) | (184 | ) | ||||||||||
| Total comprehensive loss | - | - | (6,359 | ) | (6,359 | ) | ||||||||||
| Share-based payments | - | - | 38 | 38 | ||||||||||||
| Transaction costs | - | (43 | ) | - | (43 | ) | ||||||||||
| Balance as of March 31, 2016 | 928 | 110,453 | (46,702 | ) | 64,679 |
| Share capital | Share premium | Accumulated losses | Total | |||||||||||||
| (in CHF thousands) | ||||||||||||||||
| Balance as of January 1, 2017 | 1,135 | 188,166 | (46,921 | ) | 142,380 | |||||||||||
| Net loss for the period | - | - | (9,455 | ) | (9,455 | ) | ||||||||||
| Other comprehensive loss | - | - | - | - | ||||||||||||
| Total comprehensive loss | - | - | (9,455 | ) | (9,455 | ) | ||||||||||
| Share-based payments | - | - | 100 | 100 | ||||||||||||
| Exercise of options | 4 | 25 | - | 29 | ||||||||||||
| Balance as of March 31, 2017 | 1,139 | 188,191 | (56,276 | ) | 133,054 |
The accompanying notes form an integral
part of these Interim Condensed Financial Statements (Unaudited).
Interim Condensed Financial
Statements (Unaudited)
Statements of Cash Flows
| For the Three Months Ended March 31, | ||||||||
| 2017 | 2016 | |||||||
| (in CHF thousands) | ||||||||
| Operating activities | ||||||||
| Net loss for the period | (9,455 | ) | (6,175 | ) | ||||
| Adjustments to reconcile net loss for the period to net cash flows : | ||||||||
| Depreciation of property, plant and equipment | 99 | 63 | ||||||
| Finance result, net | 1,621 | 391 | ||||||
| Share-based compensation expense | 100 | 38 | ||||||
| Changes in pensions | 90 | 20 | ||||||
| Changes in working capital: | ||||||||
| Prepaid expenses | (1,005 | ) | (683 | ) | ||||
| Accrued income | 357 | (59 | ) | |||||
| Other current receivables | (973 | ) | (1,387 | ) | ||||
| Other current liabilities | (478 | ) | (274 | ) | ||||
| Deferral of unearned revenue | (393 | ) | 1,108 | |||||
| Accounts payable | (1,856 | ) | (725 | ) | ||||
| Cash used in operating activities | (11,893 | ) | (7,683 | ) | ||||
| Financial costs | (4 | ) | (3 | ) | ||||
| Exchange differences - gain, on payables / receivables | 13 | 1 | ||||||
| Net cash flows used in operating activities | (11,884 | ) | (7,685 | ) | ||||
| Investing activities | ||||||||
| Purchases of property, plant and equipment | (601 | ) | (210 | ) | ||||
| Rent deposit | (40 | ) | - | |||||
| Net cash flows used in investing activities | (641 | ) | (210 | ) | ||||
| Financing activities | ||||||||
| Transaction costs of issue of shares | - | (372 | ) | |||||
| Proceeds from issuance of shares - option plan | 29 | - | ||||||
| Cost on issue of shares - option plan | - | (6 | ) | |||||
| Net cash flows (used in) / provided by financing activities | 29 | (378 | ) | |||||
| Net decrease in cash and cash equivalents | (12,496 | ) | (8,273 | ) | ||||
| Cash and cash equivalents at January 1 | 152,210 | 76,522 | ||||||
| Exchange gain / (loss) on cash and cash equivalents | (1,630 | ) | (389 | ) | ||||
| Cash and cash equivalents at March 31 | 138,084 | 67,860 | ||||||
| Net decrease in cash and cash equivalents | (12,496 | ) | (8,273 | ) |
Additional Information:
Non-cash property, plant and equipment
purchase consideration was CHF 462 thousand for the three months ended March 2017.
The accompanying notes form an integral
part of these Interim Condensed Financial Statements (unaudited).
Interim Condensed Financial
Statements (Unaudited)
Notes to the Interim Condensed Financial Statements (Unaudited)
(CHF thousands, except share and per share amounts)
1. Corporate information
AC Immune SA (the "Company,"
or "AC Immune," "we," "our," "ours," "us") is a clinical stage biopharmaceutical
company leveraging our two proprietary technology platforms to discover, design and develop novel, proprietary medicines for prevention,
diagnosis 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 lead product candidate is crenezumab,
a humanized, monoclonal, conformation-specific anti-Abeta antibody that we developed using our proprietary SupraAntigen platform.
The two Phase 3 clinical studies for crenezumab were commenced in early 2016 and in February 2017, respectively. We use our two
unique proprietary platform technologies, SupraAntigen (conformation-specific biologics) and Morphomer (conformation-specific small
molecules), to discover, design and develop medicines and diagnostics to target misfolded proteins.
The Interim Condensed Financial Statements
of AC Immune SA as of and for the three months ended March 31, 2017 were authorized for issuance by the Company's Audit Committee
of preparation and changes to the Company's accounting policies
Statement of compliance
These Interim Condensed Financial Statements
as of and for the three months ended March 31, 2017 have been prepared in accordance with International Accounting Standard 34
(IAS34), 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, 2016.
Basis of measurement
The financial statements have been prepared
under the historical cost convention.
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
of accounting policies as it relates to the reported amounts of assets, liabilities, income and expenses.
The areas where AC Immune has had to make
judgments, estimates and assumptions relate to (i) revenue recognition on collaboration and licensing agreements, (ii) clinical
development accruals, (iii) pensions, (iv) income taxes, and, (v) share-based compensation. 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.
The Company has tax losses that can generally
be carried forward for a period of 7 years from the period the loss was incurred. These tax losses represent potential value to
the Company to the extent that the Company is able to create taxable profits before the expiry period of these tax losses. The
estimated tax expense for the three months ended March 31, 2017 is zero. The estimated tax expense is based on the best estimate
of the weighted average annual income tax rate expected for the full financial year to December 31, 2017. As we expect to incur
a loss for the full year, we do not anticipate any income tax expense.
Consistent with prior years, the Company
has not recognized any deferred tax assets relating to tax losses available as the recognition criteria have not been met at the
Interim Condensed Financial
Statements (Unaudited)
Accounting policies, new standards, interpretations and
amendments adopted by the Company
The accounting 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, 2016, except for the adoption of new standards and interpretations
effective as of January 1, 2017. The Company has not adopted any other standard, interpretation or amendment that has been issued
but is not yet effective.
Recent Accounting Pronouncements
The Company is currently analyzing the
impact of IFRS 9 (Financial Instruments), IFRS 15 (Revenue from Contracts with Customers) and IFRS 16 (Leases)
which have been issued by the IASB but not yet adopted on our financial statements. Further consideration of the pending adoption
of IFRS is discussed below.
The Company is currently analyzing the
impact of IFRS 15 Revenue from Contracts with Customers, which amends revenue recognition requirements and establishes principles
for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with
customers. The standard replaces IAS 18 Revenue and IAS 11 Construction Contracts and Related Interpretations. This
analysis includes reviewing current accounting policies and practices to identify potential differences that would result from
applying the requirements under the new standard. The Company has initiated contract reviews and expects to complete the contract
evaluations and validate results by the end of the third quarter of 2017. The Company is also evaluating its accounting policies
and the new disclosure requirements and expects to complete its evaluations of the impacts of the accounting and disclosure requirements
on its business processes and controls by the end of the third quarter of 2017. Full implementation will be completed by the end