Full Press Release Details
vTv Therapeutics Reports Second Quarter 2017 Financial and Operational Results
HIGH POINT, N.C. - (BUSINESS WIRE) - August 2, 2017 - vTv Therapeutics Inc. (vTv) (Nasdaq: VTVT) today provided a corporate update and reported financial and operational results for the second quarter ended June 30, 2017.
"With positive progress in our lead Alzheimer's and diabetes programs, vTv is pleased to showcase another productive quarter," said Steve Holcombe, president and CEO of vTv Therapeutics. "At the American Diabetes Association meeting in June, we presented important new updates from our Phase 2 clinical study of TTP273 that may meaningfully expand the treatment options for patients with Type 2 diabetes. We also completed enrollment of Part B of our Phase 3 STEADFAST Study in Alzheimer's disease, and we are anticipating data from Part A early next year. If positive, those data position vTv Therapeutics to be the first biopharmaceutical company to bring an investigational therapy before the FDA that could potentially delay progression of clinical symptoms of Alzheimer's disease."
Second Quarter 2017 Recent Highlights
Phase 3 STEADFAST Study with azeliragon in mild Alzheimer's disease (AD)
2017 American Diabetes Association 77th Scientific Sessions
Upcoming Anticipated Milestones
STEADFAST Study (azeliragon in Alzheimer's disease): Expected to report top-line results from Part A and B of this study in early 2018 and late 2018, respectively.
Second Quarter 2017 Financial Results
vTv Therapeutics, Inc.
Condensed Combined Consolidated Balance Sheets
| June 30, | March 31, | ||||||
| 2017 | 2017 | ||||||
| (Unaudited) | (Unaudited) | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 32,513 | $ | 45,150 | |||
| Prepaid expenses and other current assets | 639 | 782 | |||||
| Total current assets | 33,152 | 45,932 | |||||
| Property and equipment, net | 374 | 426 | |||||
| Other long-term assets | 2,253 | 1,971 | |||||
| Total assets | $ | 35,779 | $ | 48,329 | |||
| Liabilities, Redeemable Noncontrolling Interest and Stockholders' Deficit | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued expenses | $ | 10,734 | $ | 11,105 | |||
| Deferred revenue | - | 4 | |||||
| Current portion of notes payable | 521 | - | |||||
| Total current liabilities | 11,255 | 11,109 | |||||
| Notes payable | 18,516 | 18,761 | |||||
| Other liabilities | 273 | 269 | |||||
| Total liabilities | 30,044 | 30,139 | |||||
| Commitments and contingencies | |||||||
| Redeemable noncontrolling interest | 112,145 | 141,659 | |||||
| Stockholders' deficit: | |||||||
| Class A Common Stock | 97 | 97 | |||||
| Class B Common Stock | 232 | 232 | |||||
| Additional paid-in capital | 126,077 | 125,118 | |||||
| Accumulated deficit | (232,816 | ) | (248,916 | ) | |||
| Total stockholders' deficit attributable to vTv Therapeutics Inc. | (106,410 | ) | (123,469 | ) | |||
| Total liabilities, redeemable noncontrolling interest and stockholders' deficit | $ | 35,779 | $ | 48,329 |
vTv Therapeutics, Inc.
Condensed Combined Consolidated Statements of Operations - Unaudited
(in thousands, except per share data)
| Three Months Ended | |||||||
| June 30, 2017 | March 31, 2017 | ||||||
| Revenue | $ | 13 | $ | 30 | |||
| Operating expenses: | |||||||
| Research and development | 9,623 | 10,960 | |||||
| General and administrative | 3,005 | 2,824 | |||||
| Total operating expenses | 12,628 | 13,784 | |||||
| Operating loss | (12,615 | ) | (13,754 | ) | |||
| Interest income | 33 | 27 | |||||
| Interest expense | (832 | ) | (559 | ) | |||
| Other income (expense), net | - | - | |||||
| Loss before income taxes and noncontrolling interest | (13,414 | ) | (14,286 | ) | |||
| Income tax provision | - | - | |||||
| Net loss before noncontrolling interest | (13,414 | ) | (14,286 | ) | |||
| Less: net loss attributable to noncontrolling interest | (9,451 | ) | (10,066 | ) | |||
| Net loss attributable to vTv Therapeutics Inc. | $ | (3,963 | ) | $ | (4,220 | ) | |
| Net loss per share of vTv Therapeutics Inc. Class A Common Stock, basic and diluted | $ | (0.41 | ) | $ | (0.44 | ) | |
| Weighted-average number of vTv Therapeutics Inc. Class A Common Stock, basic and diluted | 9,693,254 | 9,693,254 |
vTv Therapeutics, Inc.
Condensed Combined Consolidated Statements of Operations - Unaudited
(in thousands, except per share data)
| Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
| 2017 | 2016 | 2017 | 2016 | ||||||||||||
| Revenue | $ | 13 | $ | 182 | $ | 43 | $ | 558 | |||||||
| Operating expenses: | |||||||||||||||
| Research and development | 9,623 | 12,149 | 20,583 | 23,484 | |||||||||||
| General and administrative | 3,005 | 2,672 | 5,829 | 5,253 | |||||||||||
| Total operating expenses | 12,628 | 14,821 | 26,412 | 28,737 | |||||||||||
| Operating loss | (12,615 | ) | (14,639 | ) | (26,369 | ) | (28,179 | ) | |||||||
| Interest income | 33 | 22 | 60 | 45 | |||||||||||
| Interest expense | (832 | ) | (1 | ) | (1,391 | ) | (3 | ) | |||||||
| Other income (expense), net | - | 1 | - | - | |||||||||||
| Loss before income taxes and noncontrolling interest | (13,414 | ) | (14,617 | ) | (27,700 | ) | (28,137 | ) | |||||||
| Income tax provision | - | - | - | - | |||||||||||
| Net loss before noncontrolling interest | (13,414 | ) | (14,617 | ) | (27,700 | ) | (28,137 | ) | |||||||
| Less: net loss attributable to noncontrolling interest | (9,451 | ) | (10,160 | ) | (19,517 | ) | (19,828 | ) | |||||||
| Net loss attributable to vTv Therapeutics Inc. | $ | (3,963 | ) | $ | (4,457 | ) | $ | (8,183 | ) | $ | (8,309 | ) | |||
| Net loss per share of vTv Therapeutics Inc. Class A Common Stock, basic and diluted | $ | (0.41 | ) | $ | (0.47 | ) | $ | (0.84 | ) | $ | (0.88 | ) | |||
| Weighted-average number of vTv Therapeutics Inc. Class A Common Stock, basic and diluted | 9,693,254 | 9,564,623 | 9,693,254 | 9,397,134 |
About vTv Therapeutics
vTv Therapeutics Inc. is a clinical-stage biopharmaceutical company engaged in the discovery and development of orally administered small molecule drug candidates to fill significant unmet medical needs. vTv has a pipeline of clinical drug candidates led by programs for the treatment of Alzheimer's disease and Type 2 diabetes as well as treatment of inflammatory disorders and the prevention of muscle weakness.
Forward-Looking Statements
This release contains forward-looking statements, which involve risks and uncertainties. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this release, including statements regarding the timing of our clinical trials, our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management and expected market growth are forward-looking statements. These statements involve known and unknown risks, uncertainties
and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Important factors that could cause our results to vary from expectations include those described under the heading "Risk Factors" in our Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q and our other filings with the SEC. These forward-looking statements reflect our views with respect to future events as of the date of this release and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date of this release and, except as required by law, we undertake no obligation to update or review publicly any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this release. We anticipate that subsequent events and developments will cause our views to change. Our forward-looking statements do not reflect the potential impact of any future acquisitions, merger, dispositions, joint ventures or investments we may undertake. We qualify all of our forward-looking statements by these cautionary statements.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accountings principals in the U.S. ("GAAP"), we use non-GAAP earnings per fully exchanged share, which is a non-GAAP financial measure. Non-GAAP earnings per fully diluted share is defined as net loss attributable to vTv Therapeutics Inc. including the loss attributable to the non-controlling interest and assuming the exchange of all the Class B common stock of vTv Therapeutics Inc. and an equal number of non-voting common units of vTv Therapeutics LLC ("vTv Units") for shares of Class A common stock of vTv Therapeutics Inc. We believe that this measure provides useful information to investors as it eliminates the variability of non-controlling interest resulting from the exchanges of Class B common stock and vTv Units into Class A common stock. This measure is not intended to be considered in isolation or as a substitute for, or superior to, financial measures prepared and presented in accordance with GAAP.
The following is a reconciliation of non-GAAP earnings per fully exchanged share, basic and diluted to its most directly comparable GAAP measure, net loss per share of vTv Therapeutics Class A common stock, basic and diluted and the computation of the components of this non-GAAP measure:
| Three Months Ended | |||||||
| June 30, 2017 | March 31, 2017 | ||||||
| Numerator: | |||||||
| Net loss attributable to vTv Therapeutics Inc. | $ | (3,963 | ) | $ | (4,220 | ) | |
| Reallocation of net income attributable to non-controlling interest from the assumed exchange of Class B common stock (1) | (9,451 | ) | (10,066 | ) | |||
| Net loss before noncontrolling interest | $ | (13,414 | ) | $ | (14,286 | ) | |
| Denominator: | |||||||
| Weighted-average number of vTv Therapeutics Inc. Class A common stock, basic and diluted | 9,693,254 | 9,693,254 | |||||
| Assumed exchange of Class B common stock (1) | 23,119,246 | 23,119,246 | |||||
| Non-GAAP fully exchanged weighted-average shares of Class A common stock outstanding, basic and diluted | 32,812,500 | 32,812,500 | |||||
| Non-GAAP earnings per fully exchanged share, basic and diluted | $ | (0.41 | ) | $ | (0.44 | ) |
| Three Months Ended June 30, | |||||||
| 2017 | 2016 | ||||||
| Numerator: | |||||||
| Net loss attributable to vTv Therapeutics Inc. | $ | (3,963 | ) | $ | (4,457 | ) | |
| Reallocation of net income attributable to non-controlling interest from the assumed exchange of Class B common stock (1) | (9,451 | ) | (10,160 | ) | |||
| Net loss before noncontrolling interest | $ | (13,414 | ) | $ | (14,617 | ) | |
| Denominator: | |||||||
| Weighted-average number of vTv Therapeutics Inc. Class A common stock, basic and diluted | 9,693,254 | 9,564,623 | |||||
| Assumed exchange of Class B common stock (1) | 23,119,246 | 23,247,877 | |||||
| Non-GAAP fully exchanged weighted-average shares of Class A common stock outstanding, basic and diluted | 32,812,500 | 32,812,500 | |||||
| Non-GAAP earnings per fully exchanged share, basic and diluted | $ | (0.41 | ) | $ | (0.45 | ) |
vTv Therapeutics Inc.
Michael Gibralter, 646-378-2938
Pure Communications Inc.
Katie Engleman, 910-509-3977