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interim condensed financial statements
interim condensed financial
statements (IFRS) as at and for the period
ended September 30, 2016
EPFL Innovation Park
Unaudited interim condensed financial statements
| in CHF thousands | As at September 30, | As at December 31, | |||
| Notes | 2016 | 2015 | |||
| ASSETS | |||||
| Non-current assets | |||||
| Property, plant and equipment | 915 | 500 | |||
| Financial assets | 85 | 85 | |||
| Total non-current assets | 1,000 | 585 | |||
| Current assets | |||||
| Prepaid expenses | 832 | 2,508 | |||
| Accrued income | 387 | 47 | |||
| Other current receivables | 6 | 872 | 269 | ||
| Cash and cash equivalents | 6 | 157,592 | 76,522 | ||
| Total current assets | 159,683 | 79,346 | |||
| Total assets | 160,683 | 79,931 | |||
| SHAREHOLDERS' EQUITY AND LIABILITIES | |||||
| Shareholders' equity | |||||
| Share capital | 7 | 1,126 | 928 | ||
| Share premium | 7 | 187,995 | 110,496 | ||
| Accumulated losses | (42,912) | (40,381) | |||
| Total shareholders' equity | 146,209 | 71,043 | |||
| Non-current liabilities | |||||
| Net employee defined benefit liabilities | 3,462 | 2,787 | |||
| Total non-current liabilities | 3,462 | 2,787 | |||
| Current liabilities | |||||
| Trade payables and other payables | 6 | 2,832 | 1,719 | ||
| Accrued expenses | 6 | 6,768 | 4,337 | ||
| Deferred income | 1,306 | 45 | |||
| Other liabilities | 6 | 106 | - | ||
| Total current liabilities | 11,012 | 6,101 | |||
| Total liabilities | 14,474 | 8,888 | |||
| Total shareholders' equity and liabilities | 160,683 | 79,931 |
The accompanying notes form an integral
part of these financial statements.
Unaudited interim condensed financial statements
| For the Three Months | For the Nine Months | ||||||||||
| in CHF thousands except for | Ended September 30, | Ended September 30, | |||||||||
| share and per share data | Notes | 2016 | 2015 | 2016 | 2015 | ||||||
| Restated (1) | Restated (1) | ||||||||||
| Revenue | |||||||||||
| Contract revenue | 3 | 1,333 | 24,374 | 21,784 | 38,775 | ||||||
| Total revenue | 1,333 | 24,374 | 21,784 | 38,775 | |||||||
| Operating expenses | |||||||||||
| Research & development expenses | (7,696) | (4,156) | (18,714) | (11,346) | |||||||
| General & administrative expenses | (1,713) | (890) | (4,464) | (2,499) | |||||||
| Total operating expenses | (9,409) | (5,046) | (23,178) | (13,845) | |||||||
| Operating income / (loss) | (8,076) | 19,328 | (1,394) | 24,930 | |||||||
| Finance income | 35 | 817 | 36 | 891 | |||||||
| Interest income | - | 7 | - | 38 | |||||||
| Finance costs | (1,061) | (53) | (971) | (5) | |||||||
| Finance result, net | (1,026) | 771 | (935) | 924 | |||||||
| Income / (loss) before tax | (9,102) | 20,099 | (2,329) | 25,854 | |||||||
| Income / (loss) for the period | (9,102) | 20,099 | (2,329) | 25,854 | |||||||
| Earnings per share (EPS): | |||||||||||
| Basic, income / (loss) for the period attributable to equity holders | (0.18) | 0.47 | (0.05) | 0.60 | |||||||
| Diluted, income / (loss) for the period attributable to equity holders | (0.18) | 0.43 | (0.05) | 0.56 | |||||||
| Weighted-average number of shares used to compute EPS basic | 49,543,058 | 42,769,342 | 47,993,347 | 42,740,500 | |||||||
| Weighted-average number of shares used to compute EPS diluted | 51,478,810 | 46,315,986 | 49,914,357 | 46,079,779 |
Statements of Comprehensive Income
| For the Three Months | For the Nine Months | |||||||||
| Ended September 30, | Ended September 30, | |||||||||
| in CHF thousands | 2016 | 2015 | 2016 | 2015 | ||||||
| Restated (1) | Restated (1) | |||||||||
| Income / (loss) for the period | (9,102) | 20,099 | (2,329) | 25,854 | ||||||
| Other comprehensive income not to be reclassified to income or loss in subsequent periods (net of tax) | ||||||||||
| - Re-measurement losses on defined benefit plans | (184) | (206) | (552) | (708) | ||||||
| Total comprehensive income / (loss), net of tax | (9,286) | 19,893 | (2,881) | 25,146 |
The accompanying notes form an integral
part of these financial statements.
Unaudited interim condensed financial statements
| in CHF thousands | Share capital | Share premium | Accumulated losses | Total | ||
| Restated (1) | ||||||
| Balance at January 1, 2015 | 854 | 83,068 | (60,455) | 23,467 | ||
| Income for the period | - | - | 25,854 | 25,854 | ||
| Other comprehensive (loss) | - | - | (708) | (708) | ||
| Total comprehensive income | - | - | 25,146 | 25,146 | ||
| Share-based payments | - | - | 483 | 483 | ||
| Issue of capital, net of transaction costs | 2 | 44 | - | 46 | ||
| Preferred Series D shares | - | - | - | - | ||
| Exercise of options | 2 | 44 | - | 46 | ||
| Balance at September 30, 2015 | 856 | 83,112 | (34,826) | 49,142 | ||
| in CHF thousands | Share capital | Share premium | Accumulated losses | Total | ||
| Balance at January 1, 2016 | 928 | 110,496 | (40,381) | 71,043 | ||
| Income / (loss) for the period | - | - | (2,329) | (2,329) | ||
| Other comprehensive (loss) | - | - | (552) | (552) | ||
| Total comprehensive income / (loss) | - | - | (2,881) | (2,881) | ||
| Share-based payments | - | - | 350 | 350 | ||
| Preferred Series E extension shares | 28 | 13,177 | - | 13,205 | ||
| Net proceeds from IPO before transaction costs | 138 | 69,144 | - | 69,282 | ||
| Exercise of options | 32 | 200 | - | 232 | ||
| Transaction costs | - | (5,022) | - | (5,022) | ||
| Balance at September 30, 2016 | 1,126 | 187,995 | (42,912) | 146,209 |
The accompanying notes form an integral
part of these financial statements.
Unaudited interim condensed financial statements
Statements of Cash Flows
| For the Nine Months Ended September 30, | ||||
| in CHF thousands | 2016 | 2015 | ||
| Restated (1) | ||||
| Operating activities | ||||
| Income / (loss) for the period | (2,329) | 25,854 | ||
| Adjustments to reconcile income for the period to net cash flows : | ||||
| Depreciation of property, plant and equipment | 198 | 215 | ||
| Finance result, net | 935 | (924) | ||
| Share-based compensation expense | 350 | 483 | ||
| Changes in pensions | 123 | 184 | ||
| Changes in working capital: | ||||
| Prepaid expenses | (493) | (1,188) | ||
| Accrued income | (340) | (1) | ||
| Other current receivables | (603) | 25,759 | ||
| Other current liabilities | 1,144 | 198 | ||
| Deferral of unearned revenue (current) | 1,261 | (205) | ||
| Accounts payable | 1,113 | (723) | ||
| Cash provided by operating activities | 1,359 | 49,652 | ||
| Interest income | - | 38 | ||
| Financial costs | (123) | (5) | ||
| Exchange differences - gain, on payables / receivables | 36 | (26) | ||
| Net cash flows provided by operating activities | 1,272 | 49,659 | ||
| Investing activities | ||||
| Purchases of property, plant and equipment | (613) | (239) | ||
| Net cash flows used in investing activities | (613) | (239) | ||
| Financing activities | ||||
| Proceeds from issuance of common shares | 69,388 | - | ||
| Transaction costs of issue of shares | (1,548) | - | ||
| Proceeds from issuance of shares - option plan | 232 | 13 | ||
| Cost on issue of shares - option plan | (18) | - | ||
| Proceeds from issuance of preferred Series E shares | 13,205 | - | ||
| Proceeds from employee loan repayments | - | 29 | ||
| Net cash flows provided by financing activities | 81,259 | 42 | ||
| Net increase in cash and cash equivalents | 81,918 | 49,462 | ||
| Cash and cash equivalents at January 1 | 76,522 | 3,306 | ||
| Exchange gain / (loss) on cash and cash equivalents | (848) | 917 | ||
| Cash and cash equivalents at September 30 | 157,592 | 53,685 | ||
| Net increase in cash and cash equivalents | 81,918 | 49,462 |
The accompanying notes form an integral
part of these financial statements.
interim condensed financial statements
(CHF thousands, except share and per share
AC Immune SA (the "Company")
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. Phase 3 clinical studies for crenezumab were commenced in early 2016. 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 for the three and nine-months periods ended September 30, 2016 were authorized for issue in accordance with a resolution
of the Board of Directors on November 10, 2016.
The principal accounting policies adopted
in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years
presented, unless otherwise stated.
The financial statements have been prepared
on the basis that the Company will continue as a going concern after considering the Company's cash position of CHF 157.6
million as of September 30, 2016 which includes the $75.9 million (CHF 74.5 million) in gross proceeds raised in the initial public
offering ("IPO") in September 2016, the $13.5 million (CHF 13.2 million) the Company raised in the Series E Extension
financing in April 2016, the clinical milestone payment of CHF 14 million in July 2016 related to the collaboration with Genentech
on the anti-tau antibody program and the CHF 4.9 million clinical milestone payment related to ACI-35 that the Company received
in May 2016 pursuant to its collaboration with Janssen.
To date, the Company has financed its cash
requirements primarily from share issuances and revenues from collaboration agreements. The Company is a clinical stage company
and is exposed to all the risks inherent to establishing a business. Inherent to the Company's business are various risks
and uncertainties, including the substantial uncertainty as to whether current projects will succeed. The Company's success
may depend in part upon its ability to (i) establish and maintain a strong patent position and protection, (ii) enter into collaborations
with partners in the biotech and pharmaceutical industry, (iii) successfully move its product candidates through clinical development,
(iv) attract and retain key personnel, and (v) acquire capital to support its operations.
Statement of compliance
The interim condensed financial statements
for the three and nine-month periods ended September 30, 2016, have been prepared in accordance with IAS 34 Interim Financial Reporting.
The interim financial statements do not include all the information required in the annual financial statements, and should be
read in conjunction with the Company's annual financial statements as of December 31, 2015.
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 condensed interim 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 and in any future periods affected.
As disclosed in Note 5, the Company has
tax losses. 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 Company has not recorded any deferred tax assets in relation to these
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, 2015, except for the adoption of new standards and interpretations effective
as of January 1, 2016. The Company has not early adopted any other standard, interpretation or amendment that has been issued but
is not yet effective.
The nature and the effect of these changes
are immaterial to the Company's interim condensed financial statements.
| For the Three Months Ended | For the Nine Months Ended | ||||||
| September 30 | September 30 | ||||||
| in CHF thousands | 2016 | 2015 | 2016 | 2015 | |||
| Collaboration and license revenue | 1'230 | 24'328 | 21'365 | 38'575 | |||
| Grant revenue | 103 | 41 | 418 | 176 | |||
| Other | - | 5 | 1 | 24 | |||
| Total revenues | 1'333 | 24'374 | 21'784 | 38'775 |
4.1 Research Collaboration and license revenue
Tau-PET imaging agent in AD - Collaboration
agreement of 2014 with Piramal Imaging
In May 2014, AC Immune SA and Piramal Imaging,
a division of Piramal Enterprises Ltd., entered into an exclusive worldwide license agreement for the research, development and
commercialization of AC Immune's tau protein positron emission tomography (PET) tracers supporting the diagnosis and clinical
management of AD and potential tau-related disorders.
The upfront payment of EUR 500 thousand
received from this collaboration is deferred over a period of 12 months which is the Joint Research Collaboration period. As such,
the residual balance in deferred revenue related to this collaboration at December 31, 2014, was recognized until May 2015.
in AD - Collaboration agreement of 2014 with Janssen Pharmaceuticals
In December of 2014, we entered into a partnership
with Janssen Pharmaceuticals, a Johnson & Johnson company, to develop and commercialize therapeutic anti-tau vaccines for the
treatment of AD and potentially other tauopathies. The partnership includes a worldwide exclusive license and research collaboration.