Full Press Release Details
Interim Condensed Financial Statements (Unaudited)
Interim Condensed Financial
Statements (Unaudited) (IFRS) as of and for the three months ended March 31, 2018
EPFL Innovation Park
| Notes | As of March 31, 2018 | As of December 31, 2017 | ||||||||||
| in CHF thousands | ||||||||||||
| ASSETS | ||||||||||||
| Non-current assets | ||||||||||||
| Property, plant and equipment | 5 | 3,354 | 2,353 | |||||||||
| Financial assets | 210 | 126 | ||||||||||
| Total non-current assets | 3,564 | 2,479 | ||||||||||
| Current assets | ||||||||||||
| Prepaid expenses | 6 | 2,538 | 1,440 | |||||||||
| Accrued income | 1,148 | 2,799 | ||||||||||
| Finance receivable | 7 | 48 | - | |||||||||
| Other current receivables | 8 | 3,047 | 918 | |||||||||
| Cash and cash equivalents | 109,669 | 124,377 | ||||||||||
| Total current assets | 116,450 | 129,534 | ||||||||||
| Total assets | 120,014 | 132,013 | ||||||||||
| SHAREHOLDERS' EQUITY AND LIABILITIES | ||||||||||||
| Shareholders' equity | ||||||||||||
| Share capital | 1,147 | 1,147 | ||||||||||
| Share premium | 188,357 | 188,299 | ||||||||||
| Accumulated losses | (83,676 | ) | (72,607 | ) | ||||||||
| Total shareholders' equity | 105,828 | 116,839 | ||||||||||
| Non-current liabilities | ||||||||||||
| Accrued interest - long-term | 7 | 109 | 99 | |||||||||
| Long-term financing obligation | 7 | 435 | 395 | |||||||||
| Net employee defined benefit liabilities | 5,064 | 4,926 | ||||||||||
| Total non-current liabilities | 5,608 | 5,420 | ||||||||||
| Current liabilities | ||||||||||||
| Trade and other payables | 1,182 | 1,092 | ||||||||||
| Accrued expenses | 7,355 | 8,307 | ||||||||||
| Deferred income | 41 | 355 | ||||||||||
| Total current liabilities | 8,578 | 9,754 | ||||||||||
| Total liabilities | 14,186 | 15,174 | ||||||||||
| Total shareholders' equity and liabilities | 120,014 | 132,013 |
notes form an integral part of these Interim Condensed Financial Statements (Unaudited).
Statement of Income/(Loss)
| For the Three Months Ended March 31, | ||||||||||||
| Notes | 2018 | 2017 | ||||||||||
| in CHF thousands except for share and per share data | ||||||||||||
| Revenue | ||||||||||||
| Contract revenue | 3 | 1,458 | 2,006 | |||||||||
| Total revenue | 1,458 | 2,006 | ||||||||||
| Operating expenses | ||||||||||||
| Research & development expenses | (10,069 | ) | (7,454 | ) | ||||||||
| General & administrative expenses | (2,711 | ) | (2,386 | ) | ||||||||
| Total operating expenses | (12,780 | ) | (9,840 | ) | ||||||||
| Operating loss | (11,322 | ) | (7,834 | ) | ||||||||
| Finance (expense), net | (281 | ) | (1,620 | ) | ||||||||
| Interest income | 1 | - | ||||||||||
| Interest expense | (12 | ) | (1 | ) | ||||||||
| Finance result, net | 9 | (292 | ) | (1,621 | ) | |||||||
| Loss before tax | (11,614 | ) | (9,455 | ) | ||||||||
| Income tax expense | - | - | ||||||||||
| Loss for the period | (11,614 | ) | (9,455 | ) | ||||||||
| Loss per share (EPS): | 4 | |||||||||||
| Basic and diluted loss for the period attributable to equity holders | (0.20 | ) | (0.17 | ) | ||||||||
| Weighted-average number of shares used to compute EPS basic and diluted | 57,368,015 | 56,855,987 |
| Statements of Comprehensive Loss | For the Three Months ended March 31, | |||||||
| 2018 | ||||||||
| in CHF thousands | ||||||||
| Loss for the period | (11,614 | ) | (9,455 | ) | ||||
| Other comprehensive loss not to be reclassified to income or loss in subsequent periods (net of tax): | ||||||||
| Re-measurement losses on defined benefit plans | - | - | ||||||
| Total comprehensive loss, net of tax | (11,614 | ) | (9,455 | ) |
The 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 | |||||||||||||
| 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 |
| Share capital | Share premium | Accumulated losses | Total | |||||||||||||
| in CHF thousands | ||||||||||||||||
| Balance as of January 1, 2018 | 1,147 | 188,299 | (72,607 | ) | 116,839 | |||||||||||
| Net loss for the period | - | - | (11,614 | ) | (11,614 | ) | ||||||||||
| Other comprehensive loss | - | - | - | - | ||||||||||||
| Total comprehensive loss | - | - | (11,614 | ) | (11,614 | ) | ||||||||||
| Share-based payments | - | - | 602 | 602 | ||||||||||||
| Issuance of shares: | ||||||||||||||||
| restricted share awards | - | 57 | (57 | ) | - | |||||||||||
| exercise of options | - | 1 | - | 1 | ||||||||||||
| Balance as of March 31, 2018 | 1,147 | 188,357 | (83,676 | ) | 105,828 |
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, | ||||||||
| 2018 | 2017 | |||||||
| in CHF thousands | ||||||||
| Operating activities | ||||||||
| Net loss for the period | (11,614 | ) | (9,455 | ) | ||||
| Adjustments to reconcile net loss for the period to net cash flows: | ||||||||
| Depreciation of property, plant and equipment | 197 | 99 | ||||||
| Finance result, net | 292 | 1,621 | ||||||
| Share-based compensation expense | 602 | 100 | ||||||
| Changes in pensions | 138 | 90 | ||||||
| Accrued interest on long-term debt | 13 | - | ||||||
| Changes in working capital: | ||||||||
| (Increase) in prepaid expenses | (1,098 | ) | (1,005 | ) | ||||
| Decrease in accrued income | 1,651 | 357 | ||||||
| (Increase) in other current receivables | (2,193 | ) | (973 | ) | ||||
| (Decrease) in accrued expenses | (1,010 | ) | (478 | ) | ||||
| (Decrease) of deferred income | (302 | ) | (393 | ) | ||||
| Increase / (decrease) trade and other payables | 19 | (1,856 | ) | |||||
| Cash used in operating activities | (13,305 | ) | (11,893 | ) | ||||
| Interest income | 1 | - | ||||||
| Financial (costs)/income | (43 | ) | 9 | |||||
| Net cash flows used in operating activities | (13,347 | ) | (11,884 | ) | ||||
| Investing activities | ||||||||
| Purchases of property, plant and equipment | (1,076 | ) | (601 | ) | ||||
| Rent deposit | (84 | ) | (40 | ) | ||||
| Net cash flows used in investing activities | (1,160 | ) | (641 | ) | ||||
| Financing activities | ||||||||
| Proceeds from issuance of common shares - option plan | 1 | 29 | ||||||
| Net cash flows provided by financing activities | 1 | 29 | ||||||
| Net decrease in cash and cash equivalents | (14,506 | ) | (12,496 | ) | ||||
| Cash and cash equivalents at January 1 | 124,377 | 152,210 | ||||||
| Exchange loss on cash and cash equivalents | (202 | ) | (1,630 | ) | ||||
| Cash and cash equivalents at March 31 | 109,669 | 138,084 | ||||||
| Net decrease in cash and cash equivalents | (14,506 | ) | (12,496 | ) |
Additional Information:
A non-cash increase to long-term financing
obligation totaling CHF 48 thousand was recognized in the Balance Sheet with a corresponding increase to finance receivable. Please
see Note 7 for further discussion. Furthermore, the acquisition of CHF 122 thousand of property, plant and equipment purchases
was non-cash and recorded within Trade and other payables and 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 share and per share amounts)
AC Immune SA (the "Company,"
or "AC Immune," "ACI," "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
corporate strategy is founded upon a three-pillar approach that targets Alzheimer's disease, non-Alzheimer's neurodegenerative
diseases including neuro-orphan indications and diagnostics. 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, 2018 were authorized for issuance by the Company's Audit Committee
Statement of compliance
These Interim Condensed Financial Statements
as of and for the three months ended March 31, 2018 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, 2017, 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.
Effective January 1, 2018, the
Company adopted IFRS 15 Revenue from Contracts with Customers, without though deeming any adjustments necessary in the
transition to the new standard. 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 which 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 only applies the five-step model to contracts
when it is probable that the entity will collect the consideration it is entitled to 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 and 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. For a complete discussion of accounting for contract revenue, see
We estimate the fair value of non-vested
stock awards (restricted shares and restricted share units) using a reasonable estimate of market value of the common stock on
the date of the award. We classify our share-based payments as equity-classified awards as they are settled in shares of our common
stock. We measure equity-classified awards at their grant date fair value and do not subsequently remeasure them. Compensation
costs related to equity-classified awards are equal to the fair value of the award at grant-date amortized over the vesting period
of the award using the graded method. We reclassify that portion of vested awards to share premium as the awards vest.
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 licensing and collaboration agreements, (ii) clinical
development accruals, (iii) net employee defined benefit liability, (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. 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 balance sheet date.
The estimated tax expense for the three
months ended March 31, 2018 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, 2018. As we expect to incur a loss for the full year, we do not anticipate
any income tax expense.
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, 2017, except for the adoption of new standards and interpretations
effective as of January 1, 2018. The Company has not adopted any other standard, interpretation or amendment that has been issued
but is not yet effective.
Recent accounting pronouncements - not
The following pronouncements from the IASB