Full Press Release Details
Altimmune Announces Third Quarter 2018
Financial Results and Provides Corporate Update
GAITHERSBURG, Maryland, November 13, 2018 Altimmune, Inc. (Nasdaq: ALT), a clinical-stage immunotherapeutics company, today
announced financial results for the three and nine months ended September 30, 2018.
Recent Corporate Highlights
The proceeds provided by our recent financings will allow us to invest significantly in the development
of NasoVAX and to support our Company going forward, said William J. Enright, Chief Executive Officer of Altimmune. Our developing pipeline and novel approaches to vaccines are quite differentiated from other approaches making these
large markets attractive opportunities for Altimmune.
Third Quarter 2018 Financial Highlights
Altimmune is a clinical-stage immunotherapeutics company focused on the development of products to stimulate robust and durable immune responses for the
prevention and treatment of disease and on the development of two next-generation anthrax vaccines that are intended to improve protection and safety while having favorable dosage and storage requirements compared to other anthrax vaccines. The
company has two proprietary platform technologies, RespirVec and Densigen, each of which has been shown to activate the immune system in distinctly different ways than traditional vaccines.
Forward-Looking Statement
Any statements made in this
press release relating to future financial or business performance, conditions, plans, prospects, trends, or strategies and other financial and business matters, including without limitation, the prospects for commercializing or selling any product
or drug candidates, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, when or if used in this press release, the words may, could, should,
anticipate, believe, estimate, expect, intend, plan, predict and similar expressions and their variants, as they relate to Altimmune, Inc. (the
Company ) may identify forward-looking statements. The Company cautions that these forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time. Important factors that may cause actual
results to differ materially from the results discussed in the forward looking statements or historical experience include risks and uncertainties, including risks relating to: the terms of the Company s Series B preferred stock offering and
related warrants; our lack of financial resources and access to capital; realizing the benefits of the merger between Altimmune, Inc. and PharmAthene, Inc.; our ability to utilize the benefits of our tax assets and the results of a
tax examination initiated by the IRS; clinical trials and the commercialization of proposed product candidates (such as marketing, regulatory, product liability, supply, competition, dependence on third parties and other risks); the regulatory
approval process; dependence on intellectual property; the Company s BARDA contract and other government programs, reimbursement and regulation. Further information on the factors and risks that could affect the Company s business,
financial conditions and results of operations are contained in the Company s filings with the U.S. Securities and Exchange Commission, including under the heading Risk Factors in the Company s annual reports on Form 10-K and quarterly reports on Form 10-Q filed with the SEC, which are available at www.sec.gov.
| Contacts | ||||
| Bill Enright | Ashley R. Robinson | |||
| President and CEO | Managing Director LifeSci Advisors | |||
| Phone: 240-654-1450 | Phone: 617-535-7742 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Revenue | ||||||||||||||||
| Research grants and contracts | $ | 2,629,446 | $ | 4,565,251 | $ | 7,727,681 | $ | 7,892,919 | ||||||||
| License revenue | 4,947 | 26,689 | 14,833 | 36,565 | ||||||||||||
| Total revenue | 2,634,393 | 4,591,940 | 7,742,514 | 7,929,484 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Research and development | 4,728,726 | 5,905,552 | 15,394,616 | 13,946,403 | ||||||||||||
| General and administrative | 1,963,733 | 3,038,756 | 7,345,651 | 6,863,782 | ||||||||||||
| Goodwill impairment charges | 26,600,000 | 490,676 | 26,600,000 | |||||||||||||
| Total operating expenses | 6,692,459 | 35,544,308 | 23,230,943 | 47,410,185 | ||||||||||||
| Loss from operations | (4,058,066 | ) | (30,952,368 | ) | (15,488,429 | ) | (39,480,701 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Changes in fair value of warrant liability, including gain (loss) on exchange | 806,224 | (508,316 | ) | (2,874,484 | ) | (508,316 | ) | |||||||||
| Changes in fair value of embedded derivatives | 185,768 | (1,157 | ) | 183,638 | (1,157 | ) | ||||||||||
| Interest expense | (166,946 | ) | (2,344 | ) | (169,737 | ) | (160,103 | ) | ||||||||
| Interest income | 21,100 | 15,372 | 78,306 | 19,538 | ||||||||||||
| Other income (expense) | 31,378 | 10,786 | 289,053 | 9,839 | ||||||||||||
| Total other income (expense) | 877,524 | (485,659 | ) | (2,493,224 | ) | (640,199 | ) | |||||||||
| Net loss before income tax benefit | (3,180,542 | ) | (31,438,027 | ) | (17,981,653 | ) | (40,120,900 | ) | ||||||||
| Income tax benefit | 829,393 | 1,532,790 | 3,318,124 | 2,526,499 | ||||||||||||
| Net loss | (2,351,149 | ) | (29,905,237 | ) | (14,663,529 | ) | (37,594,401 | ) | ||||||||
| Other comprehensive income (loss) foreign currency translation adjustments | (1,028,033 | ) | (463,177 | ) | (2,864,839 | ) | ||||||||||
| Comprehensive loss | $ | (2,351,149 | ) | $ | (30,933,270 | ) | $ | (15,126,706 | ) | $ | (40,459,240 | ) | ||||
| Net loss | $ | (2,351,149 | ) | $ | (29,905,237 | ) | $ | (14,663,529 | ) | $ | (37,594,401 | ) | ||||
| Preferred stock accretion, contributions, and dividends | 64,139 | (1,962,072 | ) | (2,527,275 | ) | (2,125,141 | ) | |||||||||
| Net loss attributed to common stockholders | $ | (2,287,010 | ) | $ | (31,867,309 | ) | $ | (17,190,804 | ) | $ | (39,719,542 | ) | ||||
| Weighted-average common shares outstanding, basic and diluted | 1,321,289 | 517,596 | 983,651 | 386,524 | ||||||||||||
| Net loss per share attributed to common stockholders, basic and diluted | $ | (1.73 | ) | $ | (61.57 | ) | $ | (17.48 | ) | $ | (102.76 | ) |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
| September 30, 2018 | December 31, 2017 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 7,964,002 | $ | 8,769,465 | ||||
| Restricted cash | 34,174 | 3,534,174 | ||||||
| Total cash, cash equivalents and restricted cash | 7,998,176 | 12,303,639 | ||||||
| Accounts receivable | 2,547,402 | 3,806,239 | ||||||
| Tax refund receivable | 976,523 | 6,361,657 | ||||||
| Prepaid expenses and other current assets | 443,929 | 994,332 | ||||||
| Total current assets | 11,966,030 | 23,465,867 | ||||||
| Property and equipment, net | 1,407,080 | 603,146 | ||||||
| Intangible assets, net | 38,339,086 | 38,722,270 | ||||||
| Other assets | 1,149,185 | 238,917 | ||||||
| Total assets | $ | 52,861,381 | $ | 63,030,200 | ||||
| LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS EQUITY | ||||||||
| Current liabilities: | ||||||||
| Notes payable | $ | 1,467,260 | $ | 49,702 | ||||
| Accounts payable | 150,738 | 129,075 | ||||||
| Accrued expenses and other current liabilities | 6,532,924 | 3,625,257 | ||||||
| Current portion of deferred revenue | 19,753 | 19,753 | ||||||
| Current portion of deferred rent | 173,952 | 15,914 | ||||||
| Total current liabilities | 8,344,627 | 3,839,701 | ||||||
| Deferred income taxes | 2,891,634 | 5,938,402 | ||||||
| Other long-term liabilities | 1,941,932 | 4,574,507 | ||||||
| Total liabilities | 13,178,193 | 14,352,610 | ||||||
| Contingencies (Note 16) | ||||||||
| Series B redeemable convertible preferred stock; $0.0001 par value; 16,000 shares designated; 0 and 12,177 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively | 9,281,767 | |||||||
| Stockholders equity: | ||||||||
| Common stock, $0.0001 par value; 200,000,000 and 100,000,000 shares authorized; 1,726,198 and 609,280 shares issued; 1,725,630 and 608,499 shares outstanding at September 30, 2018 and December 31, 2017, respectively | 173 | 61 | ||||||
| Additional paid-in capital | 137,071,546 | 121,657,587 | ||||||
| Accumulated deficit | (92,348,368 | ) | (77,684,839 | ) | ||||
| Accumulated other comprehensive loss foreign currency translation adjustments | (5,040,163 | ) | (4,576,986 | ) | ||||
| Total stockholders equity | 39,683,188 | 39,395,823 | ||||||
| Total liabilities and stockholders equity | $ | 52,861,381 | $ | 63,030,200 |