Full Press Release Details
CytomX Announces Third Quarter 2017 Financial Results and Operational Progress
SOUTH SAN FRANCISCO, Calif., November 7, 2017 (GLOBE NEWSWIRE) -- CytomX Therapeutics, Inc. (Nasdaq:CTMX), a biopharmaceutical company developing investigational Probody therapeutics for the treatment of cancer, today reported third quarter 2017 financial results.
As of September 30, 2017, CytomX had cash, cash equivalents and short-term investments of $331.3 million. Based upon its current operating plan, the Company expects its existing capital resources will be sufficient to fund operations into 2020.
"We have continued to enjoy a highly productive year with excellent progress in advancing our deep pipeline of potentially transformative Probody therapeutics and the addition of another major partner in Amgen," said Sean McCarthy, D.Phil., president and chief executive officer of CytomX Therapeutics. "I am delighted with the team's strong execution across all areas of the organization, and we continue to be well positioned for initial data read outs in 2018 from our lead, wholly owned programs, CX-072 and CX-2009. We also expect that Probody therapeutics targeting CTLA-4, PD-1, and CD71 will enter the clinic next year, demonstrating the considerable momentum behind our pipeline."
Q3'17 BUSINESS HIGHLIGHTS AND RECENT DEVELOPMENTS
PROCLAIM-CX-072 (PD-L1 Probody Therapeutic) Clinical Program
PROCLAIM-CX-2009 (CD166 Probody Drug Conjugate) Clinical Program
CX-2029 (CD71 Probody Drug Conjugate) Preclinical Program
CX-188 (PD-1 Probody Therapeutic) Preclinical Program
Bristol-Myers Squibb (BMS) Partnership
Third Quarter Financial Results
Cash, cash equivalents and investments totaled $331.3 million as of September 30, 2017, compared to $181.9 million as of December 31, 2016. The increase reflects a $200 million upfront payment received from BMS in connection with the expansion of the existing collaboration.
Revenue was $24.1 million for the three months ended September 30, 2017, compared to $3.5 million for the three months ended September 30, 2016. The increase was primarily attributable to the recognition of $14.0 million, net of the associated license fees, from the milestone payment received from AbbVie as a result of the Company achieving certain milestones required to be met to begin GLP toxicology studies under the CD71 Agreement and an increase of $6.3 million related to the recognition of the an upfront payment received from BMS in connection with the expansion of our collaboration pursuant to an amendment of our Collaboration and License Agreement entered into in March 2017.
Research and development expenses were $28.9 million for the three months ended September 30, 2017, compared to $13.3 million for the corresponding period in 2016. The increase was primarily attributable to $10.7 million of in-process research and development expense recognized and a $1.2 million sublicense fee payable to UCSB as a result of the Amgen agreement, an increase of $1.7 million in pharmacology studies and clinical trial expenses resulting from the advancement of CX-072, CX- 2009 and CX-2029 in 2017, an increase of $0.9 million in allocations resulting from increases in facilities-related expenses, an increase of $0.4 million in consulting and contracted services and an increase of $0.4 million in personnel-related expense resulting from an increase in headcount.
General and administrative expenses were $6.2 million for the three months ended September 30, 2017, compared to $5 million for the corresponding period in 2016. The increase was primarily attributable to an increase of $0.3 million in personnel-related expenses due to an increase in headcount, an increase of $0.3 million in legal expenses and an increase of $0.4 million in consulting and public relations expenses.
About CytomX Therapeutics
CytomX Therapeutics Forward-Looking Statements
This press release includes forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that are difficult to predict, may be beyond our control, and may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied in such statements. Accordingly, you should not rely on any of these forward-looking statements, including those relating to the potential efficacy of CytomX's product candidates, administered separately or in combination, CytomX's ability and the ability of its collaborative partners to develop and advance product candidates into and successfully complete clinical trials, including CytomX's Phase 1/2 clinical trials of CX-072 and CX-2009 and the timing of any future clinical trials to be initiated by CytomX or any of its collaborative partners. Two of our product candidates under our Probody platform are in the initial stages of clinical development and our other product candidates are currently in preclinical development, and the process by which preclinical and clinical development could potentially lead to an approved product is long and subject to significant risks and uncertainties. Projected net cash utilization and capital resources are subject to substantial risk of variance based on a wide variety of factors that can be difficult to predict. Applicable risks and uncertainties include those relating to our preclinical research and development, clinical development, and other risks identified under the heading "Risk Factors" included in CytomX's Quarterly Report on Form 10-Q filed with the SEC on November 7, 2017. The forward-looking statements contained in this press release are based on information currently available to CytomX and speak only as of the date on which they are made. CytomX does not undertake and specifically disclaims any obligation to update any forward-looking statements, whether as a result of any new information, future events, changed circumstances or otherwise.
CYTOMX THERAPEUTICS, INC.
CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except share and per share data)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Revenues | $ | 23,662 | $ | 2,829 | $ | 43,121 | $ | 7,151 | ||||||||
| Revenues from related party | 482 | 625 | 1,429 | 1,620 | ||||||||||||
| Total revenues | 24,144 | 3,454 | 44,550 | 8,771 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 28,920 | 13,337 | 71,573 | 39,407 | ||||||||||||
| General and administrative | 6,249 | 5,033 | 17,989 | 14,720 | ||||||||||||
| Total operating expenses | 35,169 | 18,370 | 89,562 | 54,127 | ||||||||||||
| Loss from operations | (11,025 | ) | (14,916 | ) | (45,012 | ) | (45,356 | ) | ||||||||
| Interest income, net | 806 | 210 | 1,400 | 542 | ||||||||||||
| Other income (expense), net | (47 | ) | 45 | (101 | ) | (46 | ) | |||||||||
| Loss before provision for income taxes | (10,266 | ) | (14,661 | ) | (43,713 | ) | (44,860 | ) | ||||||||
| Provision (benefit) for income taxes | (19 | ) | 1 | 7 | 7 | |||||||||||
| Net loss | $ | (10,247 | ) | $ | (14,662 | ) | $ | (43,720 | ) | $ | (44,867 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.28 | ) | $ | (0.40 | ) | $ | (1.19 | ) | $ | (1.24 | ) | ||||
| Shares used to compute net loss per share, basic and diluted | 36,947,129 | 36,324,805 | 36,757,119 | 36,168,026 |
CYTOMX THERAPEUTICS, INC.
CONDENSED BALANCE SHEETS
(in thousands, except share and per share data)
| September 30, | December 31, | |||||||
| 2017 | 2016 | |||||||
| (unaudited)) | (audited) (1) | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 284,225 | $ | 104,645 | ||||
| Short-term investments | 47,050 | 77,293 | ||||||
| Accounts receivable | 40,183 | 2,159 | ||||||
| Related party accounts receivable | 68 | 154 | ||||||
| Prepaid expenses and other current assets | 4,848 | 3,896 | ||||||
| Total current assets | 376,374 | 188,147 | ||||||
| Property and equipment, net | 4,087 | 4,392 | ||||||
| Intangible assets | 1,641 | 1,750 | ||||||
| Goodwill | 949 | 949 | ||||||
| Restricted cash | 917 | 917 | ||||||
| Other assets | 3,071 | 2,973 | ||||||
| Total assets | $ | 387,039 | $ | 199,128 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,869 | $ | 6,596 | ||||
| Accrued liabilities | 11,444 | 8,824 | ||||||
| Deferred revenues, current portion | 56,928 | 20,347 | ||||||
| Total current liabilities | 71,241 | 35,767 | ||||||
| Deferred revenue, net of current portion | 267,996 | 83,803 | ||||||
| Deferred tax liability | 520 | 513 | ||||||
| Other long-term liabilities | 1,803 | 566 | ||||||
| Total liabilities | 341,560 | 120,649 | ||||||
| Preferred stock, $0.00001 par value; 10,000,000 shares authorized and no shares issued and outstanding at September 30, 2017 and December 31, 2016. | - | - | ||||||
| Common stock, $0.00001 par value; 75,000,000 shares authorized; 37,095,462 and 36,490,169 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively | 1 | 1 | ||||||
| Additional paid-in capital | 265,625 | 254,871 | ||||||
| Accumulated other comprehensive loss | (61 | ) | (27 | ) | ||||
| Accumulated deficit | (220,086 | ) | (176,366 | ) | ||||
| Total stockholders' equity | 45,479 | 78,479 | ||||||
| Total liabilities and stockholders' equity | $ | 387,039 | $ | 199,128 |
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