AmpliPhi Biosciences Corporation (NYSE American: APHB), a clinical-stage biotechnology company focused on precisely targeted bacteriophage therapeutics for antibiotic-resistant infections, today announced financial results for the first quarter ended March 31, 2019. AmpliPhi Biosciences will not be conducting a conference call in conjunction with this financial results release.
“We remain on track and excited for the closing of our merger with C3J Therapeutics, which we expect later this month,” said Paul C. Grint, M.D., CEO of AmpliPhi Biosciences. “As we continue to progress towards the initiation of our clinical trial of AB-SA01 for the treatment of S. aureus bacteremia later in 2019, we look forward to the combined efforts and capabilities of Armata Pharmaceuticals, offering both natural and synthetic phage therapies to treat antibiotic-resistant infections.”
Recent Business Highlights
- In January 2019, AmpliPhi and C3J Therapeutics, Inc., a privately held clinical-stage biotechnology company focused on the development of novel synthetically engineered bacteriophage products, announced a definitive agreement under which a wholly owned subsidiary of AmpliPhi will merge with C3J in an all-stock transaction, subject to shareholder approval. Certain existing C3J shareholders have agreed to purchase $10.0 million of common stock of the combined company immediately following the closing of the merger, subject to customary conditions. The financing will help fund further development of the combined company’s preclinical and clinical programs, and is expected to close immediately following the completion of the merger. Management expects the merger will close in mid-May 2019.
First Quarter 2019 Financial Results
- Research and development (R&D) expenses for the first quarter of 2019 were $1.5 million, consistent with the first quarter of 2018.
- General and administrative (G&A) expenses were $2.1 million for the first quarter of 2019 compared to $1.6 million for the first quarter of 2018. The increase of $0.5 million was primarily due to higher professional fees in the first quarter of 2019.
- Net cash used in operating activities for the first quarter of 2019 was $2.6 million, as compared to $3.5 million for the first quarter of 2018.
- Cash and cash equivalents at March 31, 2018 totaled $5.5 million.
- As of May 6, 2019, there were approximately 33.5 million shares of common stock outstanding.
About AmpliPhi Biosciences
AmpliPhi Biosciences Corporation is a clinical-stage biotechnology company focused on precisely targeted bacteriophage therapeutics for antibiotic-resistant infections using its proprietary bacteriophage-based technology. AmpliPhi’s lead product candidates, AB-SA01 and AB-PA01, target Staphylococcus aureus and Pseudomonas aeruginosa, respectively, including multidrug-resistant strains, which are included on the WHO’s 2017 Priority Pathogens List. Phage therapeutics are uniquely positioned to address the threat of antibiotic-resistance as they can be precisely targeted to kill select bacteria, have a differentiated mechanism of action, can penetrate and disrupt biofilms (a common bacterial defense mechanism against antibiotics), are potentially synergistic with antibiotics and have been shown to restore antibiotic sensitivity to drug-resistant bacteria. For more information visit www.ampliphibio.com.
Forward Looking Statements
This press release contains “forward-looking” statements, including, without limitation, statements related to the anticipated consummation of the transactions contemplated by the merger agreement and related transactions, the consummation of the sale of $10 million of the combined company’s common stock to certain shareholders of C3J immediately following the closing of the merger, the anticipated benefits of the proposed merger and $10 million financing, and statements related to the anticipated initiation of a clinical trial of AB-SA01 for the treatment of S. aureus bacteremia later in 2019. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. These forward-looking statements are based upon AmpliPhi’s current expectations. Forward-looking statements involve risks and uncertainties. AmpliPhi’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks related to: AmpliPhi’s ability to complete the merger and the related $10 million common stock financing immediately thereafter, on the proposed terms and schedule, or at all, including risks and uncertainties related to obtaining the requisite shareholder approval of the transactions, as well as the satisfaction of other closing conditions related to the merger agreement and the share purchase agreement for the $10 million private placement; and AmpliPhi’s ability to advance its preclinical and clinical programs and the uncertain and time-consuming regulatory approval process. Additional risks and uncertainties relating to AmpliPhi and its business can be found under the caption “Risk Factors” and elsewhere in AmpliPhi’s filings and reports with the SEC, including in AmpliPhi’s Quarterly Report on Form 10-Q, filed with the SEC on May 6, 2019, and AmpliPhi’s subsequent filings with the SEC. AmpliPhi expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in AmpliPhi’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based.
| AmpliPhi Biosciences Corporation | ||||||
| Condensed Consolidated Balance Sheets | ||||||
| March 31, 2019 | December 31, 2018 | |||||
| Assets | ||||||
| Cash and cash equivalents | $ | 5,535,000 | $ | 8,157,000 | ||
| Prepaids and other current assets | 407,000 | 251,000 | ||||
| Total current assets | 5,942,000 | 8,408,000 | ||||
| Property and equipment, net | 420,000 | 503,000 | ||||
| Intangible assets, net | 2,969,000 | 2,976,000 | ||||
| Right-of-use asset | 286,000 | - | ||||
| Total assets | $ | 9,617,000 | $ | 11,887,000 | ||
| Liabilities and stockholders’ equity | ||||||
| Total current liabilities | $ | 3,591,000 | $ | 2,572,000 | ||
| Derivative liabilities | 33,000 | 22,000 | ||||
| Deferred tax liability | 819,000 | 819,000 | ||||
| Other long-term liabilities | 213,000 | - | ||||
| Total liabilities | 4,656,000 | 3,413,000 | ||||
| Stockholders’ equity | 4,961,000 | 8,474,000 | ||||
| Total liabilities and stockholders’ equity | $ | 9,617,000 | $ | 11,887,000 | ||
| AmpliPhi Biosciences Corporation | ||||||||
| Condensed Consolidated Statements of Operations | ||||||||
| Three Months Ended March 31, | ||||||||
| 2019 | 2018 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Revenue | $ | - | $ | - | ||||
| Operating expenses: | ||||||||
| Research and development | 1,494,000 | 1,464,000 | ||||||
| General and administrative | 2,112,000 | 1,591,000 | ||||||
| Impairment charges | ||||||||
| Total operating expenses | 3,606,000 | 3,055,000 | ||||||
| Loss from operations | (3,606,000 | ) | (3,055,000 | ) | ||||
| Other income: | ||||||||
| Change in fair value of derivative liabilities | (11,000 | ) | (79,000 | ) | ||||
| Other income, net | - | - | ||||||
| Total other income | (11,000 | ) | (79,000 | ) | ||||
| Loss before income taxes | (3,617,000 | ) | (3,134,000 | ) | ||||
| Income tax benefit | - | - | ||||||
| Net loss | $ | (3,617,000 | ) | $ | (3,134,000 | ) | ||
| Net loss per share, basic | $ | (0.11 | ) | $ | (0.24 | ) | ||
| Weighted average shares outstanding, basic | 32,390,144 | 13,298,159 | ||||||
| Net loss per share, diluted | $ | (0.11 | ) | $ | (0.15 | ) | ||
| Weighted average shares outstanding, diluted | 32,390,144 | 13,298,159 | ||||||
| AmpliPhi Biosciences Corporation | ||||||||
| Condensed Consolidated Statement of Cash Flows | ||||||||
| Three Months Ended March 31, | ||||||||
| 2019 | 2018 | |||||||
| Operating activities: | ||||||||
| Net loss | $ | (3,617,000 | ) | $ | (3,134,000 | ) | ||
| Adjustments required to reconcile net loss to net cash used in operating activities: | ||||||||
| Change in fair value of derivative liabilities | 11,000 | 79,000 | ||||||
| Stock-based compensation | 99,000 | 122,000 | ||||||
| Depreciation and amortization | 108,000 | 97,000 | ||||||
| Other non-cash adjustments, net | - | - | ||||||
| Changes in operating assets and liabilities, net | 779,000 | (700,000 | ) | |||||
| Net cash used in operating activities | (2,620,000 | ) | (3,536,000 | ) | ||||
| Investing activities: | ||||||||
| Purchases of property and equipment | (7,000 | ) | - | |||||
| Net cash used in investing activities | (7,000 | ) | - | |||||
| Financing activities: | ||||||||
| Proceeds from sale of common stock, net of offering costs | - | 6,409,000 | ||||||
| Other financing activities | 5,000 | 201,000 | ||||||
| Net cash provided by financing activities | 5,000 | 6,610,000 | ||||||
| Net increase (decrease) in cash and cash equivalents | (2,622,000 | ) | 3,074,000 | |||||
| Cash and cash equivalents, beginning of period | 8,157,000 | 5,132,000 | ||||||
| Cash and cash equivalents, end of period | $ | 5,535,000 | $ | 8,206,000 | ||||
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Contacts:
Steve Martin
AmpliPhi Biosciences
(858)
800-2492
ir@ampliphibio.com
