Aduro Biotech, Inc. (NASDAQ:ADRO) today reported financial results
for the year ended December 31, 2017. Net loss for the fourth
quarter and year ended December 31, 2017 was $26.1 million, or
$0.34 per share, and $91.9 million, or $1.26 per share,
respectively. This compared to net loss of $29.6 million, or $0.44
per share, and $91.1 million, or $1.40 per share, respectively, for
the same periods in 2016.
Cash, cash equivalents and marketable securities totaled $349.7
million at December 31, 2017, compared to $361.9 million at
December 31, 2016.
“In 2017, we expanded clinical development activities of our
STING agonist program with the initiation of a global combination
trial of ADU-S100 with Novartis’ proprietary anti-PD-1 checkpoint
inhibitor, PDR001. We also initiated clinical development of
BION-1301, a novel anti-APRIL antibody, in multiple myeloma,” said
Stephen T. Isaacs, chairman, president and chief executive officer
of Aduro. “We believe we are well-positioned with the support of
our collaboration partners and strong cash position to further
advance our clinical programs, particularly in the activation of
the STING pathway.”
2017
Development Achievements
- Continued to advance ADU-S100 in a Phase 1 dose escalation in
solid tumors and lymphomas
- Initiated a global combination trial of ADU-S100 and Novartis’
anti-PD-1, PDR001, for the treatment of solid tumors and
lymphomas
- Presented preclinical data demonstrating anti-APRIL antibody
blocking of TACI in addition to BCMA results in inhibition of
regulatory T cells
- Initiated Phase 1/2 clinical trial of novel anti-APRIL
antibody, BION-1301, for the treatment of multiple myeloma
- Initiated Phase 1 clinical trial of neoantigen-based
personalized immunotherapy (pLADD)
Financial Performance
Revenues were $3.8 million for the fourth quarter of 2017 and
$17.2 million for the full year 2017, compared to $3.9 million and
$50.7 million, respectively, for the same periods in 2016. The
decrease in revenue for the fourth quarter of 2017 was primarily
due to a decrease in grant revenue. The decrease in revenue for the
full year 2017 was primarily due to the recognition of a $35.0
million milestone payment in 2016 for the clinical advancement of
ADU-S100 under our agreement with Novartis, partially offset by the
recognition of a $2.0 million milestone payment in 2017 for
progress in our anti-CD27 antibody program licensed to Merck.
Research and development expenses were $22.9 million for the
fourth quarter of 2017 and $89.4 million for the full year 2017,
compared to $20.9 million and $87.7 million, respectively, for the
same periods in 2016. The increase in research and development
expenses for the fourth quarter of 2017 was primarily due to higher
contract manufacturing costs for our B-select antibodies and a
related contingent payment obligation. The increase in research and
development expenses for the full year 2017 was primarily due to
higher personnel and allocated facility costs, as well as higher
contract manufacturing costs associated with our B-select
antibodies, partially offset by decreased manufacturing costs for a
discontinued pancreatic cancer program.
General and administrative expenses were $8.8 million for the
fourth quarter of 2017 and $33.8 million for the full year 2017,
compared to $8.0 million and $34.3 million, respectively, for the
same periods in 2016. The increase in general and administrative
expenses for the fourth quarter of 2017 was primarily due to higher
stock-based compensation expense and outside professional services.
The decrease in general and administrative expenses for the full
year 2017 was primarily due to a decrease in professional services
and consulting fees.
Income tax benefit was $1.0 million for the fourth quarter of
2017 and $11.4 million for the full year 2017, compared to
provision for income taxes of $5.1 million and $21.5 million,
respectively, for the same periods in 2016. The income tax benefit
recorded for the fourth quarter and full year 2017 was due to the
current benefit of income taxes paid in 2016.
About Aduro
Aduro Biotech, Inc. is an immunotherapy company focused on
the discovery, development and commercialization of therapies that
transform the treatment of challenging diseases. Aduro's technology
platforms, which are designed to harness the body's natural immune
system, are being investigated in cancer indications and have the
potential to expand into autoimmune and infectious diseases.
Aduro's STING Pathway Activator platform is designed to activate
the STING receptor in immune cells, resulting in a potent
tumor-specific immune response. ADU-S100 is the first STING Pathway
Activator compound to enter the clinic and is currently being
evaluated in both a Phase 1 monotherapy study as well as a Phase 1b
combination study with an anti-PD1 immune checkpoint inhibitor.
Aduro’s B-select monoclonal antibody platform is comprised of a
number of immune modulating assets in research and development,
including BION-1301, an anti-APRIL antibody. Aduro's pLADD program
is based on proprietary attenuated strains of Listeria that have
been engineered to express tumor neoantigens that are specific to
an individual patient’s tumor. Other Listeria strains for lung and
prostate cancers are being advanced by a partner. Aduro is
collaborating with leading global pharmaceutical companies to
expand its products and technology platforms. For more information,
please visit www.aduro.com.
Cautionary Note on Forward-Looking
Statements
This press release contains forward-looking statements for
purposes of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements include
statements regarding our intentions or current expectations
concerning, among other things, the potential for our technology,
plans, timing and the availability of results of our clinical
trials and those of our collaborators, and the potential for
eventual regulatory approval of our product candidates. In some
cases you can identify these statements by forward-looking words
such as “may,” “will,” “continue,” “anticipate,” “intend,” “could,”
“project,” “expect” or the negative or plural of these words or
similar expressions. Forward-looking statements are not
guarantees of future performance and are subject to risks and
uncertainties that could cause actual results and events to differ
materially from those anticipated, including, but not limited to,
our history of net operating losses and uncertainty regarding our
ability to achieve profitability, our ability to develop and
commercialize our product candidates, our ability to use and expand
our technology platforms to build a pipeline of product candidates,
our ability to obtain and maintain regulatory approval of our
product candidates, our ability to operate in a competitive
industry and compete successfully against competitors that have
greater resources than we do, our reliance on third parties, and
our ability to obtain and adequately protect intellectual property
rights for our product candidates. We discuss many of these
risks in greater detail under the heading “Risk Factors” contained
in our annual report on Form 10-K for the year ended December 31,
2017, to be filed with the Securities and Exchange Commission.
Forward-looking statements are not guarantees of future
performance, and our actual results of operations, financial
condition and liquidity, and the development of the industry in
which we operate, may differ materially from the forward-looking
statements contained in this press release. Any forward-looking
statements that we make in this press release speak only as of the
date of this press release. We assume no obligation to update our
forward-looking statements whether as a result of new information,
future events or otherwise, after the date of this press
release.
Contact: Jennifer Lew
Chief Financial Officer
510-809-4816
Media Contact: Aljanae Reynolds
510-809-2452press@aduro.com
ADURO BIOTECH,
INC.Condensed Consolidated Statements of
Operations(In thousands, except share and per
share amounts)
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(audited) |
|
|
(audited) |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collaboration and license revenue |
$ |
3,756 |
|
|
$ |
3,878 |
|
|
$ |
17,109 |
|
|
$ |
50,593 |
|
Grant
revenue |
|
- |
|
|
|
- |
|
|
|
130 |
|
|
|
88 |
|
Total
revenue |
|
3,756 |
|
|
|
3,878 |
|
|
|
17,239 |
|
|
|
50,681 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
and development |
|
22,917 |
|
|
|
20,863 |
|
|
|
89,382 |
|
|
|
87,718 |
|
General
and administrative |
|
8,769 |
|
|
|
8,022 |
|
|
|
33,751 |
|
|
|
34,277 |
|
Amortization of intangible assets |
|
146 |
|
|
|
134 |
|
|
|
559 |
|
|
|
549 |
|
Total
operating expenses |
|
31,832 |
|
|
|
29,019 |
|
|
|
123,692 |
|
|
|
122,544 |
|
Net loss from
operations |
|
(28,076 |
) |
|
|
(25,141 |
) |
|
|
(106,453 |
) |
|
|
(71,863 |
) |
Interest income,
net |
|
1,016 |
|
|
|
679 |
|
|
|
3,444 |
|
|
|
2,219 |
|
Other expense, net |
|
(21 |
) |
|
|
(8 |
) |
|
|
(218 |
) |
|
|
(40 |
) |
Loss before income
tax |
|
(27,081 |
) |
|
|
(24,470 |
) |
|
|
(103,227 |
) |
|
|
(69,684 |
) |
Income tax benefit
(provision) |
|
950 |
|
|
|
(5,096 |
) |
|
|
11,364 |
|
|
|
(21,464 |
) |
Net loss |
$ |
(26,131 |
) |
|
$ |
(29,566 |
) |
|
$ |
(91,863 |
) |
|
$ |
(91,148 |
) |
Net loss per common
share, basic |
$ |
(0.34 |
) |
|
$ |
(0.44 |
) |
|
$ |
(1.26 |
) |
|
$ |
(1.40 |
) |
Net loss income per
common share, diluted |
$ |
(0.34 |
) |
|
$ |
(0.44 |
) |
|
$ |
(1.26 |
) |
|
$ |
(1.40 |
) |
Shares used in
computing net loss per common share, basic |
|
77,350,401 |
|
|
|
67,368,385 |
|
|
|
72,901,215 |
|
|
|
65,200,762 |
|
Shares used in
computing net loss per common share, diluted |
|
77,350,401 |
|
|
|
67,368,385 |
|
|
|
72,901,215 |
|
|
|
65,200,762 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADURO BIOTECH,
INC.Condensed Consolidated Balance
Sheets(In
thousands)(Audited)
|
|
December 31, |
|
|
|
2017 |
|
|
2016 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
157,614 |
|
|
$ |
74,932 |
|
Short-term marketable securities |
|
|
168,489 |
|
|
|
272,500 |
|
Accounts
receivable |
|
|
989 |
|
|
|
1,138 |
|
Income
tax receivable |
|
|
17,495 |
|
|
|
— |
|
Prepaid
expenses and other current assets |
|
|
5,544 |
|
|
|
6,194 |
|
Total
current assets |
|
|
350,131 |
|
|
|
354,764 |
|
Long-term marketable
securities |
|
|
23,614 |
|
|
|
14,474 |
|
Property and equipment,
net |
|
|
31,085 |
|
|
|
26,384 |
|
Goodwill |
|
|
8,723 |
|
|
|
7,658 |
|
Intangible assets,
net |
|
|
31,107 |
|
|
|
27,827 |
|
Restricted cash |
|
|
468 |
|
|
|
468 |
|
Deferred tax
assets |
|
|
— |
|
|
|
6,319 |
|
Other assets |
|
|
— |
|
|
|
717 |
|
Total
assets |
|
$ |
445,128 |
|
|
$ |
438,611 |
|
Liabilities and
Stockholders’
Equity |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
1,150 |
|
|
$ |
2,206 |
|
Accrued
clinical trial and manufacturing expenses |
|
|
5,898 |
|
|
|
4,777 |
|
Accrued
expenses and other liabilities |
|
|
12,601 |
|
|
|
8,597 |
|
Contingent consideration |
|
|
6,829 |
|
|
|
— |
|
Deferred
revenue |
|
|
14,923 |
|
|
|
15,052 |
|
Total
current liabilities |
|
|
41,401 |
|
|
|
30,632 |
|
Deferred rent |
|
|
9,991 |
|
|
|
6,786 |
|
Contingent
consideration |
|
|
759 |
|
|
|
4,032 |
|
Deferred revenue |
|
|
148,148 |
|
|
|
162,963 |
|
Deferred tax
liabilities |
|
|
6,538 |
|
|
|
5,869 |
|
Other long-term
liabilities |
|
|
818 |
|
|
|
1,109 |
|
Total
liabilities |
|
|
207,655 |
|
|
|
211,391 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
|
|
|
|
Preferred
stock |
|
|
— |
|
|
|
— |
|
Common
stock |
|
|
8 |
|
|
|
7 |
|
Additional paid-in capital |
|
|
519,435 |
|
|
|
420,897 |
|
Accumulated other comprehensive income (loss) |
|
|
1,893 |
|
|
|
(1,684 |
) |
Accumulated deficit |
|
|
(283,863 |
) |
|
|
(192,000 |
) |
Total
stockholders’ equity |
|
|
237,473 |
|
|
|
227,220 |
|
Total liabilities and
stockholders’ equity |
|
$ |
445,128 |
|
|
$ |
438,611 |
|
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