Full Press Release Details
Lion Biotechnologies Reports Third Quarter
2016 Financial Results and Provides Corporate Update
appoints new CFO, Greg Schiffman
with NCI extended for five more years
entered into license agreement with Karolinska Institute/PolyBioCept AB
to present four posters at upcoming SITC meeting
San Carlos, CA - November 4, 2016 -- Lion Biotechnologies,
Inc. (NASDAQ: LBIO), a biotechnology company developing novel cancer immunotherapies based on tumor-infiltrating lymphocyte technology
(TIL), today reported its third quarter 2016 financial results and provided a corporate update.
"Lion continues building momentum in broadening the utility
of our TIL technology in new indications through internal R&D as well as with our collaborators. We recently announced our
collaboration with the Karolinska Institute which expands the utility of TIL into two new indications, glioblastoma and pancreatic
cancer. We also extended our Cooperative Research and Development Agreement (CRADA) with Professor Rosenberg at the National Cancer
Institute (NCI) for an additional 5 years. We continue our process development work in optimizing the process of manufacturing
TIL. Some of our preliminary work on developing a more robust, and lower cost processes for growth of TIL will be presented at
the upcoming 2016 SITC meeting. We are building our team to become a fully integrated immuno-oncology company with new members
with extensive expertise in cell-based therapy as evident by our recent hire of our CFO, Greg Schiffman. We have now doubled the
number of our employees since June 2016 and moved to our San Carlos headquarters," said Dr. Maria Fardis, Chief Executive
Officer of Lion Biotechnologies.
Recent Business Highlights and Anticipated Milestones
Third Quarter and Year-to-Date 2016 Financial Results
As of September 30, 2016 the Company held $179.3 million in
cash and cash equivalents and short-term investments, compared to $103.7 million as of December 31, 2015.
GAAP and Non-GAAP net loss attributable
to common stockholders
GAAP net loss attributable to common
stockholders, which included a one-time deemed dividend charge of $49.5 million incurred as a result of the conversion feature
of the Series B convertible preferred stock, for the quarter ended September 30, 2016 was $68.2 million, or ($1.15) per share,
compared to GAAP net loss attributable to common stockholders of $7.6 million or ($0.16) per share for the quarter ended September
30, 2015. The deemed dividend did not have any monetary impact for the Company.
Non-GAAP net loss attributable to common
stockholders, which excludes amounts related to stock-based compensation and the non-cash deemed dividend, for the quarter ended
September 30, 2016 was $10.1 million, or ($0.17) per share, compared to non-GAAP net loss attributable to common stockholders of
$5.2 million, or ($0.11) per share for the quarter ended September 30, 2015. The non-GAAP net loss attributable to common stockholders
for the three months ended September 30, 2016 excludes $8.6 million of non-cash stock-based compensation and a non-cash deemed
dividend of $49.5 million. The stock compensation increase year-over-year of $6.3 million is primarily driven by the departure
of the Company's former CFO. The deemed dividend will only impact the current quarter's financial statements.
GAAP net loss attributable to common
stockholders for the nine months ended September 30, 2016, which includes a one-time deemed dividend related to a charge of $49.5
million incurred as a result of the conversion feature of the Series B convertible preferred stock was $86.7 million, or ($1.64)
per share, compared to GAAP net loss attributable to common stockholders of $19.3 million or ($0.44) per share for the nine months
ended September 30, 2015. Non-GAAP net loss, which excludes amounts related to stock-based compensation and the non-cash deemed
dividend for the nine months ended September 30, 2016 was $21.4 million, or ($0.40) per share, compared to non-GAAP net loss of
$13.5 million or ($0.31) per share for the nine months ended September 30, 2015.
The Company believes that it is important
for investors to understand these non-cash charges as they are materially impacting the quarterly loss and EPS calculations. See
"Use of Non-GAAP Financial Measures" below for a description of the Company's Non-GAAP Financial Measures. Reconciliation
between certain GAAP and Non-GAAP measures is provided at the end of this press release.
GAAP and Non-GAAP expenses
GAAP research and development (R&D)
expenses of $8.5 million for the quarter ended September 30, 2016 increased by $3.5 million compared to the quarter ended September
30, 2015. The increase in R&D expense is due to increased spending on clinical activities for LN-144. In addition, R&D-associated
stock option expenses were $0.6 million for the three months ended September 30, 2016 and $1.8 million for the nine months ended
September 30, 2016. Non-GAAP R&D expenses of $7.8 million for the quarter ended September 30, 2016 increased by $3.7 million,
compared to $4.1 million for the quarter ended September 30, 2015.
GAAP general and administrative (G&A)
expenses of $10.5 million increased by $7.8 million compared to the quarter ended September 30, 2015. Non-GAAP G&A expenses
of $2.5 million for the quarter ended September 30, 2016 increased by $1.3 million, compared to $1.2 million for the quarter ended
Reconciliation between certain GAAP
and Non-GAAP measures is provided at the end of this press release.
Use of Non-GAAP Financial Measures
This press release contains non-GAAP
financial measures, including expenses adjusted to exclude certain non-cash expenses. These measures are not in accordance with,
or an alternative to, generally accepted accounting principles, or GAAP, and may be different from non-GAAP financial measures
used by other companies. The items included in GAAP presentations but excluded for purposes of determining non-GAAP financial measures
for the periods presented in this press release are: (i) the non-cash stock-based compensation expense which may fluctuate from
period to period based on factors including the timing and accounting of grants for stock options and changes in the Company's
stock price which impacts the fair value of options granted, and (ii) the one-time non-cash deemed dividend related to the conversion
feature of the Series B Preferred Stock. The Company believes the presentation of non-GAAP financial measures provides useful information
to management and investors regarding various financial and business trends relating to our financial condition and results of
operations. When GAAP financial measures are viewed in conjunction with non-GAAP financial measures, investors are provided with
a more meaningful understanding of our ongoing operating performance. In addition, these non-GAAP financial measures are among
those indicators the Company uses as a basis for evaluating operational performance, allocating resources and planning and forecasting
future periods. Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for GAAP financial
measures. To the extent this release contains historical or future non-GAAP financial measures, the Company has also provided corresponding
GAAP financial measures for comparative purposes. Reconciliation between certain GAAP and non-GAAP measures is provided at the
end of this press release.
2016 Cash Expectations
Lion anticipates the ending cash, cash
equivalents and short-term investments as of December 31, 2016, to be in excess of $164.0 million.
Upcoming Events & Presentations
Webcast and Conference Call
Lion will host a conference call today at 8:30 a.m. ET to discuss
these third quarter 2016 results. In order to participate in the conference call, please dial 1-844-646-4465 (domestic) or 1-615-247-0257
(international). The live webcast can be accessed under "Events and Presentation" in the "Investors" section
of the Company's website at http://www.lbio.com/ or you may use the link: http://edge.media-server.com/m/p/usbgqbbo.
A replay of the call will be available one hour after the end
of the call on November 4, 2016 until 8:30 a.m. ET on November 11, 2016. To access the replay, please dial 1-855-859-2056 (domestic)
or 1-404-537-3406 (international) and reference the access code 3946579. The archived webcast will be available for thirty days
in the Investors section of Lion Biotechnologies' website at http://www.lbio.com.
About Lion Biotechnologies, Inc.
Lion Biotechnologies, Inc. is a clinical-stage biotechnology
company focused on the development of cancer immunotherapy products for the treatment of various cancers. The Company's lead product
candidate is an adoptive cell therapy using tumor-infiltrating lymphocytes (TIL) for the treatment of patients with refractory
metastatic melanoma. TIL therapy is also being evaluated in clinical trials at the National Cancer Institute and Moffitt Cancer
Center. For more information, please visit http://www.lionbio.com.
Forward-Looking Statements
This press release contains "forward-looking statements"
regarding, among other things, the company's future goals, its operating and financial performance, additional studies and product
development, expansion of the company's research platform, and market position and business strategy. The reader is cautioned not