Full Press Release Details
Biosciences Reports Fourth Quarter and Full Year 2017 Financial Results and Business Highlights
14, 2018) - AmpliPhi Biosciences Corporation (NYSE American: APHB), a clinical-stage biotechnology company focused on
precisely targeted bacteriophage therapeutics for antibiotic-resistant infections, today announced financial results for the fourth
quarter and full year ended December 31, 2017. AmpliPhi Biosciences will not be conducting a conference call in conjunction with
this financial release.
"I'm delighted to report that AmpliPhi made progress
in the fourth quarter and into 2018," said Paul C. Grint, M.D., CEO of AmpliPhi Biosciences. "The highlight of the
period was the announcement of positive topline results from our expanded access program to treat severely ill patients with AB-SA01
or AB-PA01, our bacteriophage therapeutic candidates targeting resistant Staphylococcus aureus and Pseudomonas aeruginosa
infections. Expansion of this innovative and potentially life-saving program continues, as evidenced by the collaboration agreement
we recently signed with the U.S. Department of Veteran Affairs. Our plan remains to bring the data to the FDA in mid-2018, obtain
feedback on the path to regulatory approval, and potentially initiate a Phase 2 or registrational clinical study as early as the
second half of 2018."
Recent Business Highlights
Fourth Quarter 2017 Financial Results
Full-Year 2017 Financial Results
About AmpliPhi Biosciences
AmpliPhi Biosciences Corporation is a clinical-stage
biotechnology company focused on the development of precisely targeted bacteriophage therapeutics for patients with serious and
life-threatening antibiotic-resistant bacterial infections. AmpliPhi's lead product candidates, AB-SA01 and AB-PA01, 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.
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 plan to present
data from expanded access clinical cases to the FDA in mid-2018, obtain feedback on the path to regulatory approval, and potentially
initiate a Phase 2 or registrational clinical study as early as the second half of 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 bacteriophage product candidate development, both generally and specifically through
expanded access regulations, AmpliPhi's financial condition, and 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 Securities and Exchange Commission (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
| December 31, | ||||||||
| 2017 | 2016 | |||||||
| Assets | ||||||||
| Cash and cash equivalents | $ | 5,132,000 | $ | 5,711,000 | ||||
| Prepaids and other current assets | 253,000 | 602,000 | ||||||
| Total current assets | 5,385,000 | 6,313,000 | ||||||
| Property and equipment, net | 816,000 | 1,072,000 | ||||||
| Intangible assets, net | 4,937,000 | 10,768,000 | ||||||
| Total assets | $ | 11,138,000 | $ | 18,153,000 | ||||
| Liabilities and stockholders' equity | ||||||||
| Total current liabilities | $ | 1,968,000 | $ | 3,538,000 | ||||
| Derivative liabilities | 292,000 | 2,443,000 | ||||||
| Deferred tax liability | 1,147,000 | 2,449,000 | ||||||
| Total liabilities | 3,407,000 | 8,430,000 | ||||||
| Stockholders' equity | 7,731,000 | 9,723,000 | ||||||
| Total liabilities and stockholders' equity | $ | 11,138,000 | $ | 18,153,000 |
AmpliPhi Biosciences Corporation
Condensed Consolidated Statements of Operations
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Revenue | $ | 20,000 | $ | 22,000 | $ | 115,000 | $ | 260,000 | ||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 1,090,000 | 802,000 | 2,881,000 | 5,678,000 | ||||||||||||
| General and administrative | 1,295,000 | 1,537,000 | 7,590,000 | 8,413,000 | ||||||||||||
| Impairment charges | - | 9,547,000 | 5,800,000 | 9,547,000 | ||||||||||||
| Total operating expenses | 2,385,000 | 11,886,000 | 16,271,000 | 23,638,000 | ||||||||||||
| Loss from operations | (2,365,000 | ) | (11,864,000 | ) | (16,156,000 | ) | (23,378,000 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Change in fair value of derivative liabilities | 13,000 | 1,791,000 | 2,010,000 | 4,538,000 | ||||||||||||
| Other income (expense), net | - | 17,000 | 6,000 | (554,000 | ) | |||||||||||
| Total other income, net | 13,000 | 1,808,000 | 2,016,000 | 3,984,000 | ||||||||||||
| Loss before income taxes | (2,352,000 | ) | (10,056,000 | ) | (14,140,000 | ) | (19,394,000 | ) | ||||||||
| Income tax benefit | - | 556,000 | 1,302,000 | 556,000 | ||||||||||||
| Net loss | (2,352,000 | ) | (9,500,000 | ) | (12,838,000 | ) | (18,838,000 | ) | ||||||||
| Excess of fair value of consideration transferred on conversion of Series B preferred stock | - | - | - | (3,580,000 | ) | |||||||||||
| Accretion of Series B preferred stock | - | - | - | (1,858,000 | ) | |||||||||||
| Net loss attributable to common stockholders | $ | (2,352,000 | ) | $ | (9,500,000 | ) | $ | (12,838,000 | ) | $ | (24,276,000 | ) | ||||
| Net loss per share of common stock - basic | $ | (0.25 | ) | $ | (7.02 | ) | $ | (2.01 | ) | $ | (24.67 | ) | ||||
| Weighted average number of shares of common stock outstanding - basic | 9,493,140 | 1,353,767 | 6,387,425 | 983,846 | ||||||||||||
| Net loss per share of common stock - diluted | $ | (0.25 | ) | $ | (7.57 | ) | $ | (2.18 | ) | $ | (24.67 | ) | ||||
| Weighted average number of shares of common stock outstanding - diluted | 9,493,140 | 1,405,608 | 6,574,117 | 983,846 |
AmpliPhi Biosciences Corporation
Condensed Consolidated Statement of Cash Flows
| Year Ended December 31, | ||||||||
| 2017 | 2016 | |||||||
| Operating activities: | ||||||||
| Net loss | $ | (12,838,000 | ) | $ | (18,838,000 | ) | ||
| Adjustments required to reconcile net loss to net cash used in operating activities: | ||||||||
| Change in fair value of derivative liabilities | (2,010,000 | ) | (4,538,000 | ) | ||||
| Impairment charges | 5,800,000 | 9,547,000 | ||||||
| Stock-based compensation | 700,000 | 1,995,000 | ||||||
| Deferred taxes | (1,302,000 | ) | (556,000 | ) | ||||
| Charge for common stock issuance | 519,000 | - | ||||||
| Costs related to equity offerings | - | 569,000 | ||||||
| Warrants and other non-cash adjustments, net | 22,000 | 193,000 | ||||||
| Depreciation and amortization | 374,000 | 369,000 | ||||||
| Changes in operating assets and liabilities, net | (457,000 | ) | 653,000 | |||||
| Net cash used in operating activities | (9,192,000 | ) | (10,606,000 | ) | ||||
| Investing activities: | ||||||||
| Purchases of property and equipment | (58,000 | ) | (279,000 | ) | ||||
| Net cash used in investing activities | (58,000 | ) | (279,000 | ) | ||||
| Financing activities: | ||||||||
| Proceeds from sale of common stock and related warrants, net of offering costs | 9,353,000 | 7,566,000 | ||||||
| Other financing activities, net | (682,000 | ) | (340,000 | ) | ||||
| Net cash provided by financing activities | 8,671,000 | 7,226,000 | ||||||
| Net decrease in cash and cash equivalents | (579,000 | ) | (3,659,000 | ) | ||||
| Cash and cash equivalents, beginning of period | 5,711,000 | 9,370,000 | ||||||
| Cash and cash equivalents, end of period | $ | 5,132,000 | $ | 5,711,000 |