Full Press Release Details
CytomX Therapeutics Announces First Quarter 2018 Financial Results
SOUTH SAN FRANCISCO, Calif., May 9, 2018 - CytomX Therapeutics, Inc. (Nasdaq:CTMX), a clinical-stage oncology-focused biopharmaceutical company pioneering a novel class of investigational antibody therapeutics based on its Probody therapeutic technology platform, today reported first quarter 2018 financial results.
As of March 31, 2018, CytomX had cash, cash equivalents and short-term investments of $361.5 million.
"CytomX's first quarter marked the continued execution across our clinical pipeline, our discovery stage programs and in our partnerships," said Sean McCarthy, D.Phil., president and chief executive officer of CytomX Therapeutics. "We remain on track to share initial Probody clinical data at ASCO from PROCLAIM-CX-072, a broad-based study of our lead and wholly-owned anti-PD-L1 Probody therapeutic and we look forward to providing additional pipeline updates as the year progresses."
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
First Quarter 2018 Financial Results
Cash, cash equivalents and short-term investments totaled $361.5 million as of March 31, 2018, compared to $374.1 million as of December 31, 2017.
Revenue was $14.2 million for the three months ended March 31, 2018, compared to $11.7 million for the three months ended March 31, 2017. The increase was primarily attributable to an increase of $4.9 million relating to the recognition of $6.3 million of the upfront payment received from BMS in connection with an amendment of the Company's Collaboration and License Agreement entered into in March 2017, offset by $1.2 million in revenue recognized resulting from a reduction in research terms during the three months ended March 31, 2017; an increase of $1.3 million resulting from a change in revenue recognition for the Company's CD71 Agreement with AbbVie from the straight-line method under the prior revenue recognition standard to the percentage-of-completion method under the new revenue recognition standard, which the Company adopted on January 1, 2018; an increase of $1.3 million related to the Amgen Agreement, which the Company entered into at the end of September 2017; and an increase of $0.9 million resulting primarily from the recognition of the remaining upfront payments resulting from the termination of the Company's agreement with Pfizer in March 2018. These increases were offset by a decrease of $5.8 million related to ImmunoGen due primarily to the recognition of $6.5 million upon delivery of a Development and Commercialization License to ImmunoGen during the three months ended March 31, 2017.
Research and development expenses increased $7.9 million during the three months ended March 31, 2018 compared to the corresponding period in 2017. The increase was attributable to an increase of $3.5 million in lab contracts and services, consulting expenses and clinical trial startup fees to advance CX-188 and CX-2029 through IND-enabling studies, an increase of $2.2 million in CX-072 resulting from
increased clinical trial activities, and an increase of $2.0 million in personnel-related expenses due to an increase in headcount.
General and administrative expense increased $1.7 million during the three months ended March 31, 2018 compared to the corresponding period in 2017. The increase was attributable to an increase of $0.8 million in personnel-related expense due to an increase in headcount, an increase of $0.4 million in stock-based compensation resulting from an increase in headcount and an increase in the average price of the Company's common stock and an increase of $0.4 million in consulting services primarily due to an increase in tax and accounting compliance activities.
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 benefits and efficacy of CytomX's or any of its collaborative partners' 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, the timing of any future clinical trials to be initiated by CytomX or any of its collaborative partners, CytomX's expectations regarding the availability of clinical data, CytomX's expectations with respect to its collaborations, and CytomX's expectations regarding the timing of potential regulatory filings. Risks and
uncertainties that contribute to the uncertain nature of the forward-looking statements include: two of CytomX's product candidates under its Probody platform are in the initial stages of clinical development and its 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; the possibility that the results of early clinical trials may not be predictive of future results; the possibility that CytomX's clinical trials will not be successful; CytomX's dependence on the success of CX-072 and CX-2009; CytomX's reliance on third parties for the manufacture of the company's product candidates; and possible regulatory developments in the United States and foreign countries. 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. Additional 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 May 9, 2018. 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 | ||||||||
| March 31, | ||||||||
| 2018 | 2017 | |||||||
| Revenues | $ | 14,184 | $ | 11,176 | ||||
| Revenues from related parties | - | 477 | ||||||
| Total revenues | 14,184 | 11,653 | ||||||
| Operating expenses: | ||||||||
| Research and development | 22,458 | 14,576 | ||||||
| General and administrative | 7,356 | 5,691 | ||||||
| Total operating expenses | 29,814 | 20,267 | ||||||
| Loss from operations | (15,630 | ) | (8,614 | ) | ||||
| Interest income | 1,375 | 236 | ||||||
| Other income (expense), net | (140 | ) | 120 | |||||
| Loss before provision for (benefit from) income taxes | (14,395 | ) | (8,258 | ) | ||||
| Provision for (benefit from) income taxes | 1,098 | (1 | ) | |||||
| Net loss | $ | (15,493 | ) | $ | (8,257 | ) | ||
| Net loss per share, basic and diluted | $ | (0.40 | ) | $ | (0.23 | ) | ||
| Shares used to compute net loss per share, basic and diluted | 38,647,878 | 36,538,869 | ||||||
| Other comprehensive loss: | ||||||||
| Changes in unrealized losses on short-term investments | (134 | ) | (73 | ) | ||||
| Comprehensive loss | $ | (15,627 | ) | $ | (8,330 | ) |
CYTOMX THERAPEUTICS, INC.
CONDENSED BALANCE SHEETS
(in thousands, except share and per share data)
| March 31, | December 31, | |||||||
| 2018 | 2017 | |||||||
| (unaudited) | (1) | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 142,155 | $ | 177,548 | ||||
| Short-term investments | 219,321 | 196,562 | ||||||
| Accounts receivable | 81 | 10,139 | ||||||
| Prepaid expenses and other current assets | 5,474 | 4,352 | ||||||
| Total current assets | 367,031 | 388,601 | ||||||
| Property and equipment, net | 4,622 | 4,218 | ||||||
| Intangible assets, net | 1,568 | 1,604 | ||||||
| Goodwill | 949 | 949 | ||||||
| Restricted cash | 917 | 917 | ||||||
| Other assets | 1,375 | 1,355 | ||||||
| Total assets | $ | 376,462 | $ | 397,644 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 5,349 | $ | 4,205 | ||||
| Income tax payable | 1,035 | 1 | ||||||
| Accrued liabilities | 16,335 | 16,382 | ||||||
| Deferred revenue, current portion | 46,988 | 40,559 | ||||||
| Total current liabilities | 69,707 | 61,147 | ||||||
| Deferred revenue, net of current portion | 255,053 | 264,704 | ||||||
| Other long-term liabilities | 2,055 | 1,897 | ||||||
| Total liabilities | 326,815 | 327,748 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
| Convertible preferred stock, $0.00001 par value; 10,000,000 shares authorized and no shares issued and outstanding at March 31, 2018 and December 31, 2017 | - | - | ||||||
| Common stock, $0.00001 par value; 75,000,000 shares authorized; 38,903,699 and 38,478,560 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively | 1 | 1 | ||||||
| Additional paid-in capital | 295,744 | 289,454 | ||||||
| Accumulated other comprehensive loss | (228 | ) | (94 | ) | ||||
| Accumulated deficit | (245,870 | ) | (219,465 | ) | ||||
| Total stockholders' equity | 49,647 | 69,896 | ||||||
| Total liabilities and stockholders' equity | $ | 376,462 | $ | 397,644 |
____________________________
VP, Investor Relations and Corporate Communications