Company also announces priority review designation obtained by Healios in Japan-accelerating
potential approval pathway for MultiStem® clinical program for ischemic stroke
Management to host conference call at 4:30pm EST today
CLEVELAND, March 09, 2017 (GLOBE NEWSWIRE) -- Athersys, Inc. (Nasdaq:ATHX) today reported its fourth quarter of
2016 and annual 2016 financial results and highlights.
“In 2016, we made good headway in advancing our lead clinical program in ischemic stroke,” said Gil Van
Bokkelen, Chairman and Chief Executive Officer of Athersys. “We believe that the program is well-positioned for further
development with a defined path to commercialization in a very large potential market segment. Furthermore, we have continued
to make progress in our other programs, building out the underlying technology and science and strengthening our core capabilities
in areas that will be important for supporting commercialization.”
2016 Highlights
- Received agreement from the U.S. Food and Drug Administration under a Special Protocol Assessment for the design and planned
analysis of our Phase 3 MASTERS-2 ischemic stroke clinical trial – providing the path and foundation for development of
MultiStem® to marketing approval submission for this indication;
- Announced positive results from analysis of one-year data from our Phase 2 study of MultiStem cell therapy to treat ischemic
stroke. These results demonstrated progressive improvements and a statistically significant higher rate of excellent outcomes for
MultiStem-treated subjects – with greater benefits for patients receiving treatment within 36 hours of the stroke;
- Established a collaboration with HEALIOS K.K. (Healios) to develop MultiStem cell therapy for stroke in Japan, positioning
the program for Japanese development and to take advantage of Japan’s progressive regenerative medicine regulatory framework and
its potential for accelerated approval; and
- Completed successful review from Japan’s Pharmaceutical and Medical Devices Agency (PMDA) of the Clinical Trial Notification
allowing Healios to commence its Phase 2/3 TREASURE study.
Fourth Quarter 2016 Highlights and Recent Activities
- Healios’ key investigator presented at the 2017 International Stroke Conference the design and commencement of Healios’
TREASURE Phase 2/3 stroke study in Japan, which it expects to complete in the second half of 2018;
- Received public notification by the Ministry of Health Labor and Welfare (MHLW) in Japan of priority review designation of
MultiStem for the treatment of ischemic stroke, enabling acceleration of the potential PMDA assessment time for approval to six
months (under the recently implemented accelerated review pathway for innovative medicines, or Sakigake);
- Established in December 2016 a collaboration with a global leader in the animal health business segment to evaluate our stem
cell technology for application in a specified animal health area – with successful results, the collaboration could expand into
development and commercialization license;
- Supported preparations for launch of Healios’ TREASURE study and advanced our preparations for the MASTERS-2 Phase 3 study –
with a focus on European regulatory alignment with prior FDA discussions and actions, manufacturing and trial
infrastructure;
- Published in March 2017 in the peer-reviewed journal, Stem Cells, an article that explains how MultiStem cell
therapy could provide benefit to patients following an ischemic stroke based on preclinical study results;
- Progressed our Phase 1/2 study evaluating administration of MultiStem therapy to acute respiratory distress syndrome patients
and our Phase 2 acute myocardial infarction study;
- Received milestone payment from our long-standing collaboration with Bristol-Myers Squibb Company related to advancement into
Phase 2 development of a program using our RAGE® technology;
- Recorded revenues of $1.0 million and a net loss of $7.1 million for the quarter ended December 31, 2016; and for year ended
December 31, 2016, recorded revenues of $17.3 million and a net loss of $15.3 million, or $0.18 per share, which included the $15
million license fee from Healios; and
- Ended 2016 with $14.8 million in cash and cash equivalents, followed by an additional $20.9 million of net proceeds from a
February 2017 common stock offering in support of ongoing and planned clinical and process development activities.
“Last year, we accomplished several very important objectives and over the course of the year, we worked closely
with Healios on regulatory matters to support their efforts to obtain authorization from the PMDA to enable commencement of the
TREASURE clinical study,” stated Dr. Van Bokkelen. “As a result, we believe that Healios is well-positioned to take advantage
of Japan’s innovative regulatory framework for the development, assessment and efficient approval of MultiStem for the treatment of
ischemic stroke. The recently obtained priority review designation under Sakigake reinforces the strength of this program and
our shared commitment to successful development with Healios. This achievement is consistent with the Special Protocol Assessment
recently obtained from the FDA for our planned international Phase 3 study. Both represent important milestones for this
program and lay out an efficient potential path for development toward marketing approval.”
“Achieving regulatory clarity and defining a clear efficient path forward is important for both our clinical
development and ongoing partnering efforts,” continued Dr. Van Bokkelen. “The recent addition of capital from the financing
allows us to maintain a healthy balance sheet, while we continue our activities and discussions in these and other areas. We
are excited about the continued progress and anticipate a productive 2017.”
Fourth Quarter 2016 Financial
Results
Total revenues for the fourth quarter of 2016 were $1.0 million compared to $10.6 million in the same period in
the prior year, reflecting the recognition of the $10.0 million license fee that we received from Chugai Pharmaceutical Company,
Ltd. (“Chugai”) upon the termination of the collaboration in October 2015. This was partially offset by a $0.6 million milestone
payment from Bristol-Myers Squibb Company in the fourth quarter of 2016.
Research and development expenses increased to $7.1 million in the 2016 fourth quarter from $5.3 million in the
same period in the prior year, primarily due to increased clinical and preclinical development costs, which vary based on trials
underway, clinical manufacturing and process development activities.
General and administrative expenses remained relatively consistent at $2.0 million in the 2016 fourth quarter,
compared to $1.8 million in the corresponding 2015 period.
Net loss was $7.1 million in the fourth quarter of 2016, compared to net income of $3.6 million for the same
period of 2015. The decrease was primarily due to the $10.0 million Chugai license fee in the fourth quarter 2015
revenue.
Full Year 2016 Financial Results
Total revenues were $17.3 million in 2016, compared to $11.9 million in 2015, reflecting the $15.0 million
license fee from Healios in 2016 and the $10.0 million license fee from Chugai that was recognized in 2015.
Research and development expenses increased to $24.8 million in 2016 from $21.3 million in 2015. The increase
related primarily to an increase in clinical and process development costs, an increase in personnel costs, an increase in legal
and professional fees and an increase in research supplies related to internal process development research.
General and administrative expenses were $7.8 million in 2016 compared to $7.5 million in 2015, reflecting
increases in personnel costs and other outside services.
Net loss was $15.3 million in 2016, compared to $16.4 million in 2015. The difference of $1.1 million
reflects the variances above, as well as a $1.3 million non-cash change in the fair value of our warrant liabilities and a $0.7
million gain from insurance proceeds related to remediated flood damage.
Cash used in operating activities was $10.9 million and $13.8 million for full year 2016 and full year 2015,
respectively.
As of December 31, 2016, we had $14.8 million in cash and cash equivalents, compared to $23.0 million at
December 31, 2015. In February 2017, we sold an aggregate of 22,772,300 shares of common stock through an underwritten public
offering. As a result of the offering, we received aggregate net proceeds of approximately $20.9 million.
Conference Call
Gil Van Bokkelen, Chairman and Chief Executive Officer, and William (BJ) Lehmann, President and Chief Operating
Officer, will host a conference call today to review the results as follows:
|
Date |
Thursday, March 9, 2017 |
|
Time |
4:30 p.m. (Eastern
Time) |
|
Telephone access: U.S. and Canada |
800-273-1254 |
|
Telephone access: International |
973-638-3440 |
| Access
code |
73151585 |
| Live
webcast |
www.athersys.com, under the Investors section
|
A replay will be available for on-demand listening shortly after the completion of the call until 11:59 PM
(Eastern Time) on March 23, 2017, by dialing 800-585-8367 or 855-859-2056 (U.S. and Canada), or 404-537-3406, and entering access
code 73151585. The archived webcast will be available for one year at the aforementioned URL.
About Athersys
Athersys is an international biotechnology company engaged in the discovery and development of therapeutic
product candidates designed to extend and enhance the quality of human life. The Company is developing its MultiStem cell therapy
product, a patented, adult-derived "off-the-shelf" stem cell product, initially for disease indications in the neurological,
cardiovascular, inflammatory and immune disorders, and certain pulmonary conditions and has several ongoing clinical trials
evaluating this potential regenerative medicine product. Athersys has forged strategic partnerships and collaborations with leading
pharmaceutical and biotechnology companies, as well as world-renowned research institutions to further develop its platform and
products. More information is available at www.athersys.com. Follow Athersys on Twitter at www.twitter.com/athersys.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 that involve risks and uncertainties. These forward-looking statements relate to, among other things,
the expected timetable for development of our product candidates, our growth strategy, and our future financial performance,
including our operations, economic performance, financial condition, prospects, and other future events. We have attempted to
identify forward-looking statements by using such words as "anticipates," "believes," "can," "continue," "could," "estimates,"
"expects," "intends," "may," "plans," "potential," "should," “suggest,” "will," or other similar expressions. These forward-looking
statements are only predictions and are largely based on our current expectations. A number of known and unknown risks,
uncertainties, and other factors could affect the accuracy of these statements. Some of the more significant known risks that we
face that could cause actual results to differ materially from those implied by forward-looking statements are the risks and
uncertainties inherent in the process of discovering, developing, and commercializing products that are safe and effective for use
as human therapeutics, such as the uncertainty regarding market acceptance of our product candidates and our ability to generate
revenues, including MultiStem for the treatment of ischemic stroke, acute myocardial infarction, spinal cord injury and acute
respiratory distress syndrome and other disease indications, including graft-versus-host disease. These risks may cause our actual
results, levels of activity, performance, or achievements to differ materially from any future results, levels of activity,
performance, or achievements expressed or implied by these forward-looking statements. Other important factors to consider in
evaluating our forward-looking statements include: the success of our collaboration with Healios and others, including our ability
to reach milestones and receive milestone payments, and whether any products are successfully developed and sold so that we earn
royalty payments; our possible inability to realize commercially valuable discoveries in our collaborations with pharmaceutical and
other biotechnology companies; our collaborators' ability to continue to fulfill their obligations under the terms of our
collaboration agreements; the success of our efforts to enter into new strategic partnerships or collaborations and advance our
programs; our ability to raise additional capital; results from our MultiStem ongoing and planned clinical trials, including the
MASTERS-2 Phase 3 clinical trial and the Healios TREASURE clinical trial in Japan; the possibility of delays in, adverse results
of, and excessive costs of the development process; our ability to successfully initiate and complete clinical trials within the
expected time frame or at all; changes in external market factors; changes in our industry's overall performance; changes in our
business strategy; our ability to protect our intellectual property portfolio; our possible inability to execute our strategy due
to changes in our industry or the economy generally; changes in productivity and reliability of suppliers; and the success of our
competitors and the emergence of new competitors. You should not place undue reliance on forward-looking statements contained in
this press release, and we undertake no obligation to publicly update forward-looking statements, whether as a result of new
information, future events or otherwise.
ATHX-G
(Tables Follow)
| |
|
|
|
|
| Athersys, Inc. |
| Condensed Consolidated Balance
Sheets |
| (In thousands) |
| |
|
|
|
| |
|
|
|
| |
December 31, |
|
December 31, |
| |
2016 |
|
2015 |
| |
|
|
|
|
|
| Assets |
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
14,753 |
|
$ |
23,027 |
| Other current assets |
|
|
1,527 |
|
|
790 |
| Equipment, net |
|
|
2,605 |
|
|
1,135 |
| Deferred tax assets |
|
175 |
|
|
177 |
| Total assets |
|
$ |
19,060 |
|
$ |
25,129 |
| |
|
|
|
| Liabilities and stockholders’ equity |
|
|
|
|
| Accounts payable and accrued expenses |
|
$ |
6,875 |
|
$ |
4,321 |
| Deferred revenue |
|
|
-- |
|
|
245 |
| Warrant liabilities and note payable |
|
|
1,004 |
|
|
839 |
| Total stockholders’ equity |
|
|
11,181 |
|
|
19,724 |
| Total liabilities and stockholders’ equity |
|
$ |
19,060 |
|
$ |
25,129 |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Athersys, Inc. |
| Condensed Consolidated Statements of
Operations and Comprehensive Income (Loss) |
| (In thousands, except per share
data) |
| |
|
|
|
|
|
|
|
| (Unaudited) |
| |
|
|
|
|
|
|
|
| |
Three months ended |
|
Twelve months ended |
| |
December 31, |
|
December 31, |
| |
|
2016 |
|
|
|
2015 |
|
|
2016 |
|
|
|
2015 |
|
| Revenues |
|
|
|
|
|
|
|
| Contract revenue |
$ |
828 |
|
|
$ |
10,104 |
|
$ |
16,238 |
|
|
$ |
10,298 |
|
| Grant revenue |
|
155 |
|
|
|
501 |
|
|
1,109 |
|
|
|
1,650 |
|
| Total revenues |
|
983 |
|
|
|
10,605 |
|
|
17,347 |
|
|
|
11,948 |
|
| |
|
|
|
|
|
|
|
| Costs and expenses |
|
|
|
|
|
|
|
| Research and development |
|
7,088 |
|
|
|
5,298 |
|
|
24,838 |
|
|
|
21,316 |
|
| General and administrative |
|
2,004 |
|
|
|
1,785 |
|
|
7,835 |
|
|
|
7,536 |
|
| Depreciation |
|
134 |
|
|
|
66 |
|
|
382 |
|
|
|
267 |
|
| Total costs and expenses |
|
9,226 |
|
|
|
7,149 |
|
|
33,055 |
|
|
|
29,119 |
|
| Gain from insurance proceeds, net |
|
-- |
|
|
|
-- |
|
|
682 |
|
|
|
-- |
|
| (Loss) income from operations |
(8,243 |
) |
|
|
3,456 |
|
|
(15,026 |
) |
|
|
(17,171 |
) |
| Income (expense) from change in fair value of warrants |
|
1,132 |
|
|
|
164 |
|
|
(557 |
) |
|
|
772 |
|
| Other (expense) income, net |
|
(19 |
) |
|
|
(31 |
) |
|
209 |
|
|
|
(61) |
|
| (Loss) income before income taxes |
|
(7,130 |
) |
|
|
3,589 |
|
|
(15,374 |
) |
|
|
(16,460 |
) |
| Income tax benefit |
|
3 |
|
|
|
3 |
|
|
37 |
|
|
|
38 |
|
| Net (loss) income and comprehensive (loss) income |
$ |
(7,127 |
) |
|
$ |
3,592 |
|
$ |
(15,337 |
) |
|
$ |
(16,422 |
) |
| |
|
|
|
|
|
|
|
| Basic net (loss) income per share |
$ |
(0.08 |
) |
|
$ |
0.04 |
|
$ |
(0.18 |
) |
|
$ |
(0.20 |
) |
| |
|
|
|
|
|
|
|
| Weighted average shares outstanding, basic |
|
85,797 |
|
|
|
83,352 |
|
|
84,715 |
|
|
|
82,144 |
|
| |
|
|
|
|
|
|
|
| Diluted net (loss) income per share |
$ |
(0.10 |
) |
|
$ |
0.04 |
|
$ |
(0.18 |
) |
|
$ |
(0.20 |
) |
| |
|
|
|
|
|
|
|
| Weighted average shares outstanding, diluted |
|
86,603 |
|
|
|
83,451 |
|
|
84,715 |
|
|
|
82,851 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact: William (B.J.) Lehmann President and Chief Operating Officer Tel: (216) 431-9900 bjlehmann@athersys.com David Schull Russo Partners, LLC Tel: (212) 845-4271 or (858) 717-2310 David.schull@russopartnersllc.com Investor Contact: Peter Vozzo Westwicke Partners (443) 213-0505 or (443) 377-4767 (mobile) Peter.vozzo@westwicke.com
