Full Press Release Details
AmpliPhi Biosciences Reports Third Quarter
2017 Financial Results and Business Highlights
14, 2017) - AmpliPhi Biosciences Corporation (NYSE American: APHB), a clinical-stage biotechnology company focused on
the development of therapies for antibiotic-resistant infections using bacteriophage technology, today announced financial results
for the third quarter ended September 30, 2017.
"I'm excited to report on the progress AmpliPhi
made in the third quarter of 2017," said Paul C. Grint, M.D., CEO of AmpliPhi Biosciences. "We have dosed six patients
suffering from life-threatening infections under expanded access programs at two major teaching hospitals and remain on track to
meet our previously announced goal of treating ten patients by year end. We have also continued our engagement with the scientific
community to increase awareness of phage-based therapies as a promising technology to combat increasing antibiotic resistance.
Looking forward, we expect to be well-positioned to treat up to an additional twenty patients by the end of first half of 2018,
as we collect the data to prioritize lead indications for potential Phase 2 and/or registrational studies, while working with the
FDA on a potential pathway to registration."
Third Quarter 2017 and Recent Business Highlights
Third Quarter 2017 Financial Results
Conference Call and Webcast
AmpliPhi will hold a conference call today beginning at 4:30
p.m. Eastern time (1:30 p.m. Pacific time). The conference call dial-in number is (866) 652-5200 for domestic callers and (412)
317-6060 for international callers, and the passcode is 10114360. A live webcast of the call will be available on the Investor
Relations section of www.ampliphibio.com.
A recording of the call will be available for 48 hours beginning
approximately two hours after the completion of the call by dialing (877) 344-7529 for domestic callers and (412) 317-0088 for
international callers. Please use passcode 10114360 to access the recording. A webcast replay will be available on the Investor
Relations section of www.ampliphibio.com for 30 days, beginning approximately
two hours after the completion of the call.
About AmpliPhi Biosciences
AmpliPhi Biosciences Corporation is a clinical-stage biotechnology
company focused on treating antibiotic-resistant infections using its proprietary bacteriophage-based technology. AmpliPhi's
lead product candidates target multidrug-resistant Staphylococcus aureus and Pseudomonas aeruginosa, which are
included on the WHO's 2017 Priority Pathogens List. Phage therapeutics are uniquely positioned to address the threat of
antibiotic-resistance as they can be precisely targeted to kill select bacteria, have a differentiated mechanism of action, can
penetrate and disrupt biofilms (a common bacterial defense mechanism against antibiotics), are potentially synergistic with antibiotics
and have been shown to restore antibiotic sensitivity to drug-resistant bacteria. 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 regarding: AmpliPhi's belief that it
remains on track to treat ten patients with bacteriophage therapy by year end; AmpliPhi's expected ability to be well-positioned to treat
up to an additional twenty patients by the end of the first half of 2018; AmpliPhi's expected collection of the data needed
to select lead indications for potential Phase 2 and/or registrational studies while working with the FDA on a potential pathway
to registration; AmpliPhi's expectation that its current financial resources will provide sufficient cash to fund operations until mid-2018; and the potential benefits of phage therapy and the potential use of bacteriophages to treat bacterial infections,
including infections that do not respond to antibiotics or are associated with biofilms. 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, and AmpliPhi's subsequent filings 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
David Schull or Maggie Beller
| AmpliPhi Biosciences Corporation |
| Condensed Consolidated Balance Sheets |
| September 30, 2017 | December 31, 2016 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 7,725,000 | $ | 5,711,000 | ||||
| Prepaids and other current assets | 264,000 | 602,000 | ||||||
| Total current assets | 7,989,000 | 6,313,000 | ||||||
| Property and equipment, net | 847,000 | 1,072,000 | ||||||
| Intangible assets, net | 4,945,000 | 10,768,000 | ||||||
| Total assets | $ | 13,781,000 | $ | 18,153,000 | ||||
| Liabilities and stockholders' equity | ||||||||
| Total current liabilities | $ | 2,477,000 | $ | 3,538,000 | ||||
| Derivative liabilities | 400,000 | 2,443,000 | ||||||
| Deferred tax liability | 1,147,000 | 2,449,000 | ||||||
| Total liabilities | 4,024,000 | 8,430,000 | ||||||
| Stockholders' equity | 9,757,000 | 9,723,000 | ||||||
| Total liabilities and stockholders' equity | $ | 13,781,000 | $ | 18,153,000 |
| AmpliPhi Biosciences Corporation |
| Condensed Consolidated Statements of Operations |
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Revenue | $ | 38,000 | $ | 29,000 | $ | 95,000 | $ | 238,000 | ||||||||
| Operating expenses: | ||||||||||||||||
| Research and development (benefit) | (829,000 | ) | 1,655,000 | 1,791,000 | 4,876,000 | |||||||||||
| General and administrative | 1,613,000 | 1,781,000 | 6,295,000 | 6,876,000 | ||||||||||||
| Impairment charges | - | - | 5,800,000 | - | ||||||||||||
| Total operating expenses | 784,000 | 3,436,000 | 13,886,000 | 11,752,000 | ||||||||||||
| Loss from operations | (746,000 | ) | (3,407,000 | ) | (13,791,000 | ) | (11,514,000 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Change in fair value of derivative liabilities | (37,000 | ) | 1,032,000 | 1,997,000 | 2,403,000 | |||||||||||
| Other income (expense), net | 4,000 | - | 6,000 | (227,000 | ) | |||||||||||
| Total other income (expense), net | (33,000 | ) | 1,032,000 | 2,003,000 | 2,176,000 | |||||||||||
| Loss before income taxes | (779,000 | ) | (2,375,000 | ) | (11,788,000 | ) | (9,338,000 | ) | ||||||||
| Income tax benefit | - | - | 1,302,000 | - | ||||||||||||
| Net loss | (779,000 | ) | (2,375,000 | ) | (10,486,000 | ) | (9,338,000 | ) | ||||||||
| Excess of fair value of consideration transferred on conversion of Series B preferred stock | - | (1,214,000 | ) | - | (3,580,000 | ) | ||||||||||
| Accretion of Series B preferred stock | - | - | - | (1,858,000 | ) | |||||||||||
| Net loss attributable to common stockholders | $ | (779,000 | ) | $ | (3,589,000 | ) | $ | (10,486,000 | ) | $ | (14,776,000 | ) | ||||
| Net loss per share of common stock - basic | $ | (0.09 | ) | $ | (3.23 | ) | $ | (1.97 | ) | $ | (17.20 | ) | ||||
| Weighted average number of shares of common stock outstanding - basic | 8,874,813 | 1,112,039 | 5,326,139 | 859,077 | ||||||||||||
| Net loss per share of common stock - diluted | $ | (0.09 | ) | $ | (3.23 | ) | $ | (2.18 | ) | $ | (17.72 | ) | ||||
| Weighted average number of shares of common stock outstanding - diluted | 8,874,813 | 1,112,039 | 5,518,847 | 864,891 |
| AmpliPhi Biosciences Corporation |
| Condensed Consolidated Statement of Cash Flows |
| Nine Months Ended September 30, | ||||||||
| 2017 | 2016 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Operating activities: | ||||||||
| Net loss | $ | (10,486,000 | ) | $ | (9,338,000 | ) | ||
| Adjustments required to reconcile net loss to net cash used in operating activities: | ||||||||
| Change in fair value of derivative liabilities | (1,997,000 | ) | (2,403,000 | ) | ||||
| Impairment charges | 5,800,000 | - | ||||||
| Stock-based compensation | 568,000 | 1,698,000 | ||||||
| Deferred taxes | (1,302,000 | ) | - | |||||
| Charge for common stock issuance | 519,000 | - | ||||||
| Warrants and other allocable expenses | - | 431,000 | ||||||
| Depreciation and amortization | 255,000 | 245,000 | ||||||
| Other non-cash adjustments, net | 45,000 | 23,000 | ||||||
| Changes in operating assets and liabilities, net | (225,000 | ) | 236,000 | |||||
| Net cash used in operating activities | (6,823,000 | ) | (9,108,000 | ) | ||||
| Investing activities: | ||||||||
| Purchases of property and equipment | (40,000 | ) | (266,000 | ) | ||||
| Net cash used in investing activities | (40,000 | ) | (266,000 | ) | ||||
| Financing activities: | ||||||||
| Proceeds from sale of common stock and related warrants, net of offering costs | 9,353,000 | 4,224,000 | ||||||
| Other financing activities, net | (476,000 | ) | (253,000 | ) | ||||
| Net cash provided by financing activities | 8,877,000 | 3,971,000 | ||||||
| Net increase (decrease) in cash and cash equivalents | 2,014,000 | (5,403,000 | ) | |||||
| Cash and cash equivalents, beginning of period | 5,711,000 | 9,370,000 | ||||||
| Cash and cash equivalents, end of period | $ | 7,725,000 | $ | 3,967,000 |