Full Press Release Details
AmpliPhi Biosciences Reports 2016 Fourth-Quarter
and Full-Year Results
and Provides Corporate Highlights
Positive clinical data and strengthened
management team support continued development of
novel therapies for antibiotic-resistant
27, 2017) - AmpliPhi Biosciences Corporation (NYSE MKT: APHB), a global leader in the development of therapies for antibiotic-resistant
infections using bacteriophage technology, today announced financial results for the quarter and year ended December 31, 2016.
"The growing incidence of antibiotic-resistant bacterial
infections is a major health threat that is recognized by governments and health authorities around the world," said M. Scott
Salka, CEO of AmpliPhi Biosciences. "AmpliPhi and our collaborators have made significant progress in advancing the development
of bacteriophage therapies for the treatment of resistant bacterial infections and we are pleased to have reported favorable results
from our first two clinical trials."
Mr. Salka added, "We also strengthened our management
team, streamlined our capital structure and expanded bacteriophage-related intellectual property in major global markets. We are
excited about our role as a leader in this emerging field and expect 2017 to be a highly productive year for advancing the development
of these much-needed innovative therapies for patients who are not well served by currently available antibiotics."
2016 Corporate Highlights
Intellectual Property
Fourth-Quarter 2016 Financial Highlights
Full-Year 2016 Financial Highlights
About Bacteriophages
Bacteriophages, or more simply "phages," are the
natural predators of bacteria and are the most abundant life form on earth. Over eons, phages have evolved an incredible diversity
of specialist strains that typically prey upon just one strain of bacteria, enabling phage therapies to precisely target pathogenic
bacteria while sparing the beneficial microbiota. Phages can infect and kill bacteria, whether they are antibiotic-resistant or
not, and even when they have formed protective biofilms.
About AmpliPhi Biosciences
AmpliPhi Biosciences Corporation is a biotechnology company
pioneering the development and commercialization of therapies for antibiotic-resistant infections using bacteriophage-based technology.
AmpliPhi's product development programs target infections that are often resistant to some or all existing antibiotic treatments.
AmpliPhi has reported final results from two Phase 1 clinical trials of AB-SA01, one for the treatment of S. aureus in chronic
rhinosinusitis patients and one to evaluate the safety of AB-SA01 when administered topically to the intact skin of healthy adults.
AmpliPhi is also developing bacteriophage therapeutics targeting P. aeruginosa and C. difficile in collaboration
with a number of leading research organizations. For more information visit www.ampliphibio.com.
Forward Looking Statements
Statements in this press release that are not statements of
historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements include, without limitation, statements about the potential use of bacteriophages to treat bacterial
infections, including infections that do not respond to antibiotics, the potential benefits of phage therapy, and AmpliPhi's
development of bacteriophage-based therapies. Words such as "believe," "anticipate," "plan,"
"expect," "intend," "will," "may," "goal," "potential"
and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements necessarily
contain these identifying words. Among the factors that could cause actual results to differ materially from those indicated in
these forward-looking statements are risks and uncertainties associated with AmpliPhi's business and financial condition
and the other risks and uncertainties described in AmpliPhi's Annual Report on Form 10-K for the year ended December 31,
2016, as filed with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only
as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement,
and AmpliPhi undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after
the date of this press release.
AmpliPhi Biosciences
AmpliPhi Biosciences Corporation
Condensed Consolidated Balance Sheets
| December 31, 2016 | December 31, 2015 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 5,711,000 | $ | 9,370,000 | ||||
| Accounts receivable, prepaids and other assets | 644,000 | 646,000 | ||||||
| Total current assets | 6,355,000 | 10,016,000 | ||||||
| Property and equipment, net | 1,072,000 | 1,131,000 | ||||||
| Intangible assets, net | 10,768,000 | 20,346,000 | ||||||
| Total assets | $ | 18,195,000 | $ | 31,493,000 | ||||
| Liabilities, Series B redeemable convertible preferred stock and stockholders' equity | ||||||||
| Total current liabilities | $ | 3,580,000 | $ | 2,385,000 | ||||
| Derivative liabilities | 2,443,000 | 1,499,000 | ||||||
| Deferred tax liability | 2,449,000 | 3,005,000 | ||||||
| Total liabilities | 8,472,000 | 6,889,000 | ||||||
| Series B redeemable convertible preferred stock | - | 11,890,000 | ||||||
| Stockholders' equity | 9,723,000 | 12,714,000 | ||||||
| Total liabilities, Series B redeemable convertible preferred stock and stockholders' equity | $ | 18,195,000 | $ | 31,493,000 |
AmpliPhi Biosciences Corporation
Condensed Consolidated Statements of
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Revenue | $ | 22,000 | $ | 128,000 | $ | 260,000 | $ | 475,000 | ||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 802,000 | 1,215,000 | 5,678,000 | 3,992,000 | ||||||||||||
| General and administrative | 1,537,000 | 1,853,000 | 8,413,000 | 6,710,000 | ||||||||||||
| Impairment charges | 9,547,000 | 9,547,000 | - | |||||||||||||
| Total operating expenses | 11,886,000 | 3,068,000 | 23,638,000 | 10,702,000 | ||||||||||||
| Loss from operations | (11,864,000 | ) | (2,940,000 | ) | (23,378,000 | ) | (10,227,000 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Change in fair value of derivative liabilities | 1,791,000 | 636,000 | 4,538,000 | 9,940,000 | ||||||||||||
| Other income (expense) | 17,000 | - | (554,000 | ) | (302,000 | ) | ||||||||||
| Total other income | 1,808,000 | 636,000 | 3,984,000 | 9,638,000 | ||||||||||||
| Loss before income taxes | (10,056,000 | ) | (2,304,000 | ) | (19,394,000 | ) | (589,000 | ) | ||||||||
| Income tax benefit | 556,000 | 73,000 | 556,000 | 73,000 | ||||||||||||
| Net loss | (9,500,000 | ) | (2,231,000 | ) | (18,838,000 | ) | (516,000 | ) | ||||||||
| Excess of fair value of consideration transferred on conversion of Series B Preferred Stock | - | - | (3,580,000 | ) | - | |||||||||||
| Accretion of Series B redeemable convertible preferred stock | - | (949,000 | ) | (1,858,000 | ) | (10,278,000 | ) | |||||||||
| Net loss attributable to common stockholders | $ | (9,500,000 | ) | $ | (3,180,000 | ) | $ | (24,276,000 | ) | $ | (10,794,000 | ) | ||||
| Per share information: | ||||||||||||||||
| Net loss per share of common stock - basic | $ | (0.70 | ) | $ | (0.54 | ) | $ | (2.47 | ) | $ | (1.99 | ) | ||||
| Weighted average number of shares of common stock outstanding - basic | 13,537,668 | 5,886,903 | 9,838,455 | 5,411,204 | ||||||||||||
| Net loss per share of common stock - diluted | $ | (0.76 | ) | $ | (0.54 | ) | $ | (2.47 | ) | $ | (1.99 | ) | ||||
| Weighted average number of shares of common stock outstanding - diluted | 14,056,085 | 5,886,903 | 9,838,455 | 5,411,204 |
AmpliPhi Biosciences Corporation
Condensed Consolidated Statement of
| Twelve Months Ended December 31, | ||||||||
| 2016 | 2015 | |||||||
| Operating activities: | ||||||||
| Net loss | $ | (18,838,000 | ) | $ | (516,000 | ) | ||
| Adjustments required to reconcile net loss to net cash used in operating activities: | ||||||||
| Impairment charges | 9,547,000 | - | ||||||
| Change in fair value of derivative and warrant liabilities | (4,538,000 | ) | (9,940,000 | ) | ||||
| Costs related to equity offerings | 773,000 | 213,000 | ||||||
| Depreciation and amortization | 369,000 | 330,000 | ||||||
| Stock-based compensation | 1,995,000 | 483,000 | ||||||
| Deferred income taxes | (556,000 | ) | (73,000 | ) | ||||
| Other | (11,000 | ) | (120,000 | ) | ||||
| Changes in operating assets and liabilities, net | 670,000 | (158,000 | ) | |||||
| Net cash used in operating activities | (10,589,000 | ) | (9,781,000 | ) | ||||
| Investing activities: | ||||||||
| Purchases of property and equipment | (279,000 | ) | (210,000 | ) | ||||
| Net cash used in investing activities | (279,000 | ) | (210,000 | ) | ||||
| Financing activities: | ||||||||
| Proceeds from issuance of common stock, net | 7,566,000 | 12,384,000 | ||||||
| Other financing activities, net | (357,000 | ) | 396,000 | |||||
| Net cash provided by financing activities | 7,209,000 | 12,780,000 | ||||||
| Net (decrease) increase in cash and cash equivalents | (3,659,000 | ) | 2,789,000 | |||||
| Cash and cash equivalents, beginning of period | 9,370,000 | 6,581,000 | ||||||
| Cash and cash equivalents, end of period | $ | 5,711,000 | $ | 9,370,000 |