Full Press Release Details
PTC Therapeutics Provides Corporate Update and
Reports Fourth Quarter and Full Year 2023 Financial Results
- 34% year-over-year growth in 2023 total revenue -
- Global filings of sepiapterin remain on track with first submission of the EU MAA expected in March -
- Potential NDA submission for vatiquinone for Friedreich ataxia expected in late 2024 -
SOUTH PLAINFIELD, N.J., Feb. 29, 2024 - PTC Therapeutics, Inc., (NASDAQ: PTCT) today announced a corporate update and financial results for the fourth quarter and full year ending December 31, 2023.
"We closed out 2023 with strong revenue performance in the fourth quarter," said Matthew Klein, M.D., Chief Executive Officer, PTC Therapeutics, Inc. "We are well-positioned for a successful 2024 with several potential exciting clinical and regulatory milestones ahead. We look forward to initiating the global regulatory submissions for sepiapterin for the treatment of PKU, which we see as a potential billion-dollar opportunity, as well as to advancing our PTC518, vatiquinone, and utreloxastat programs."
Key Corporate Updates:
oTranslarna (ataluren) net product revenue was $356 million, driven by new patients in existing geographies and continued geographic expansion.
oEmflaza (deflazacort) net product revenue was $255 million, resulting from new patient starts and high compliance.
Key Clinical and Regulatory Milestones:
Fourth Quarter and Full Year 2023 Financial Highlights:
PTC Updates Full Year 2024 Financial Guidance:
Non-GAAP Financial Measures:
In this press release, the financial results of PTC are provided in accordance with GAAP and using certain non-GAAP financial measures. In particular, the non-GAAP R&D and SG&A expense financial measures exclude non-cash, stock-based compensation expense. These non-GAAP financial measures
are provided as a complement to financial measures reported in GAAP because management uses these non-GAAP financial measures when assessing and identifying operational trends. In management's opinion, these non-GAAP financial measures are useful to investors and other users of PTC's financial statements by providing greater transparency into the historical and projected operating performance of PTC and the company's future outlook. Non-GAAP financial measures are not an alternative for financial measures prepared in accordance with GAAP. Quantitative reconciliations of the non-GAAP financial measures to their respective closest equivalent GAAP financial measures are included in the table below.
PTC Therapeutics, Inc.
Consolidated Statements of Operations
(In thousands, except share and per share data)
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||
| Revenues: | |||||||||||
| Net product revenue | $ | 155,062 | $ | 127,508 | $ | 661,249 | $ | 535,228 | |||
| Collaboration revenue | 100,024 | 28 | 100,030 | 50,052 | |||||||
| Royalty revenue | 50,999 | 39,876 | 168,856 | 113,521 | |||||||
| Manufacturing revenue | 971 | - | 7,687 | - | |||||||
| Total revenues | 307,056 | 167,412 | 937,822 | 698,801 | |||||||
| Operating expenses: | |||||||||||
| Cost of product sales, excluding amortization of acquired intangible assets | 29,118 | 10,893 | 65,486 | 44,678 | |||||||
| Amortization of acquired intangible asset | 77,174 | 35,764 | 222,635 | 116,554 | |||||||
| Research and development (1) | 121,353 | 188,694 | 666,563 | 651,496 | |||||||
| Selling, general and administrative (2) | 76,291 | 92,718 | 332,540 | 325,998 | |||||||
| Change in the fair value of deferred and contingent consideration | (2,700) | 6,300 | (127,700) | (25,900) | |||||||
| Intangible asset impairment | - | 33,384 | 217,800 | 33,384 | |||||||
| Total operating expenses | 301,236 | 367,753 | 1,377,324 | 1,146,210 | |||||||
| Income (loss) from operations | 5,820 | (200,341) | (439,502) | (447,409) | |||||||
| Interest expense, net | (44,274) | (24,500) | (129,180) | (90,871) | |||||||
| Other income (expense), net | 18,961 | 35,147 | 10,130 | (49,207) | |||||||
| Loss on extinguishment of debt | (137,558) | - | (137,558) | - | |||||||
| Loss before income tax benefit | (157,051) | (189,694) | (696,110) | (587,487) | |||||||
| Income tax benefit | 1,259 | 18,805 | 69,506 | 28,470 | |||||||
| Net loss attributable to common stockholders | $ | (155,792) | $ | (170,889) | $ | (626,604) | $ | (559,017) | |||
| Weighted-average shares outstanding: | |||||||||||
| Basic and diluted (in shares) | 75,490,569 | 72,656,790 | 74,838,392 | 71,728,634 | |||||||
| Net loss per share-basic and diluted (in dollars per share) | $ | (2.06) | $ | (2.35) | $ | (8.37) | $ | (7.79) | |||
| (1) Research and development reconciliation | |||||||||||
| GAAP research and development | $ | 121,353 | $ | 188,694 | $ | 666,563 | $ | 651,496 | |||
| Less: share-based compensation expense | 8,113 | 13,973 | 52,941 | 55,869 | |||||||
| Non-GAAP research and development | $ | 113,240 | $ | 174,721 | $ | 613,622 | $ | 595,627 | |||
| (2) Selling, general and administrative reconciliation | |||||||||||
| GAAP selling, general and administrative | $ | 76,291 | $ | 92,718 | $ | 332,540 | $ | 325,998 | |||
| Less: share-based compensation expense | 8,395 | 13,370 | 48,695 | 54,464 | |||||||
| Non-GAAP selling, general and administrative | $ | 67,896 | $ | 79,348 | $ | 283,845 | $ | 271,534 |
PTC Therapeutics, Inc.
Summary Consolidated Balance Sheets
(in thousands, except share data)
| December 31, 2023 | December 31, 2022 | ||||
| Cash, cash equivalents and marketable securities | $ | 876,739 | $ | 410,705 | |
| Total Assets | $ | 1,895,698 | $ | 1,705,619 | |
| Total debt | $ | 284,213 | $ | 571,722 | |
| Total deferred revenue | 801 | 1,351 | |||
| Total liability for sale of future royalties | 1,814,097 | 757,886 | |||
| Total liabilities | $ | 2,714,253 | $ | 2,052,705 | |
| Total stockholders' deficit (75,708,889 and 73,104,692 common shares issued and outstanding at December 31, 2023 and December 31, 2022, respectively) | $ | (818,555) | $ | (347,086) | |
| Total liabilities and stockholders' deficit | $ | 1,895,698 | $ | 1,705,619 |
PTC Therapeutics, Inc.
Reconciliation of GAAP Milestone Payments Full Year 2024
| PTC Therapeutics, Inc. | ||
| Reconciliation of GAAP | ||
| Milestone Payments | ||
| Full Year 2024 | ||
| (in millions) | ||
| Projected GAAP R&D Expense Related Milestone Payments | $ | 65 |
| Projected GAAP Contingent Consideration Payable Related Milestone Payments | 25 | |
| Total Projected GAAP Milestone Payments | $ | 90 |
PTC Therapeutics, Inc.
Reconciliation of GAAP to Non-GAAP Projected Full Year 2024 R&D and SG&A Expense
| Low End of Range | High End of Range | ||||
| Projected GAAP R&D and SG&A Expense | $ | 740 | $ | 835 | |
| Less: projected non-cash, stock-based compensation expense | 80 | 80 | |||
| Projected non-GAAP R&D and SG&A expense | $ | 660 | $ | 755 |
AS: Angelman Syndrome
BLA: Biologics License Application
CHF: Confoederatio Helvetica Francs (Swiss francs)
DMD: Duchenne Muscular Dystrophy
FA: Friedreich Ataxia
FDA: U.S. Food and Drug Administration
GAAP: Generally Accepted Accounting Principles
HD: Huntington's Disease
NDA: New Drug Application
PKU: Phenylketonuria
R&D: Research and Development
SG&A: Selling, General and Administrative
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To access the call by phone, please click here to register and you will be provided with dial-in details. To avoid delays, we recommend participants dial in to the conference call 15 minutes prior to the start of the call. The webcast conference call can be accessed on the Investor section of the PTC website at https://ir.ptcbio.com/events-presentations. A replay of the call will be available approximately two hours after completion of the call and will be archived on the company's website for 30 days following the call.
About PTC Therapeutics, Inc.
For More Information:
Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. All statements contained in this release, other than statements of historic fact, are forward-looking statements, including the information provided under the heading "PTC Updates Full Year 2024 Revenue Guidance", including with respect to (i) 2024 total revenue guidance, (ii) 2024 GAAP and non-GAAP R&D and SG&A expense guidance and (iii) 2024 acquisition related milestone
payment guidance, and statements regarding: the future expectations, plans and prospects for PTC, including with respect to the expected timing of clinical trials and studies, availability of data, regulatory submissions and responses, commercialization and other matters with respect to its products and product candidates; PTC's strategy, future operations, future financial position, future revenues, projected costs; the extent, timing and financial aspects of our strategic pipeline prioritization and reductions in workforce; and the objectives of management. Other forward-looking statements may be identified by the words, "guidance", "plan," "anticipate," "believe," "estimate," "expect," "intend," "may," "target," "potential," "will," "would," "could," "should," "continue," and similar expressions.
PTC's actual results, performance or achievements could differ materially from those expressed or implied by forward-looking statements it makes as a result of a variety of risks and uncertainties, including those related to: the outcome of pricing, coverage and reimbursement negotiations with third party payors for PTC's products or product candidates that PTC commercializes or may commercialize in the future; PTC's ability to maintain its marketing authorization of Translarna for the treatment of nmDMD in Brazil, Russia, the European Economic Area (EEA) and other regions, including whether the European Commission adopts the negative opinion from the Committee for Medicinal Products for Human Use (CHMP) for the conditional marketing authorization for Translarna in the EEA; PTC's ability to use the results of Study 041, a randomized, 18-month, placebo-controlled clinical trial of Translarna for the treatment of nmDMD followed by an 18-month open-label extension, and from its international drug registry study to support a marketing approval for Translarna for the treatment of nmDMD in the United States; whether investigators agree with PTC's interpretation of the results of clinical trials and the totality of clinical data from our trials in Translarna; expectations with respect to Upstaza, including any regulatory submissions and potential approvals, commercialization, manufacturing capabilities, the potential achievement of development, regulatory and sales milestones and contingent payments that PTC may be obligated to make; expectations with respect to the commercialization of Evrysdi under our SMA collaboration; expectations with respect to the commercialization of Tegsedi and Waylivra; the timing of and actual expenses incurred in connection with the discontinuation of PTC's preclinical and early research programs in gene therapy and reductions in workforce, which may be in different periods and may be materially higher than estimated; the savings that may result from the discontinuation of PTC's strategic pipeline prioritization and reductions in workforce, which may be materially less than expected; significant business effects, including the effects of industry, market, economic, political or regulatory conditions; changes in tax and other laws, regulations, rates and policies; the eligible patient base and commercial potential of PTC's products and product candidates; PTC's scientific approach and general development progress; the potential financial impact and benefits of PTC's leased biologics manufacturing facility; PTC's ability to satisfy its obligations under the terms of its lease agreements, including for its leased biologics manufacturing facility; the sufficiency of PTC's cash resources and its ability to obtain adequate financing in the future for its foreseeable and unforeseeable operating expenses and capital expenditures; and the factors discussed in the "Risk Factors" section of PTC's most recent Annual Report on Form 10-K, as well as any updates to these risk factors filed from time to time in PTC's other filings with the SEC. You are urged to carefully consider all such factors.
As with any pharmaceutical under development, there are significant risks in the development, regulatory approval and commercialization of new products. There are no guarantees that any product will receive or maintain regulatory approval in any territory, or prove to be commercially successful, including Translarna, Emflaza, Upstaza, Evrysdi, Tegsedi or Waylivra.
The forward-looking statements contained herein represent PTC's views only as of the date of this press release and PTC does not undertake or plan to update or revise any such forward-looking statements to reflect actual results or changes in plans, prospects, assumptions, estimates or projections, or other circumstances occurring after the date of this press release except as required by law.