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CST: 18/08/2019 19:00:50   

Aduro Biotech Reports Fourth Quarter and Full Year 2018 Financial Results

172 Days ago

BERKELEY, Calif., Feb. 27, 2019 (GLOBE NEWSWIRE) -- Aduro Biotech, Inc. (NASDAQ: ADRO) today reported financial results for the fourth quarter and full year ended December 31, 2018.

“2018 was an important year for Aduro as we prioritized our core technologies and determined a go-forward strategy that is committed to maintaining a leadership role in the STING and APRIL pathways and advancing our clinical programs in areas of high unmet medical need,” said Stephen T. Isaacs, chairman, president and chief executive officer of Aduro. “With our strategic focus established and $277.9 million in cash taking us into 2022, we are eager to execute on our clinical development plans for 2019 and beyond.”

Key Accomplishments in Fiscal Year 2018

STING

  • Presented first-in-human monotherapy clinical data for ADU-S100, a novel stimulator of interferon genes (STING) pathway activator, and preliminary observations of ADU-S100 in combination with spartalizumab during the Society for Immunotherapy of Cancer’s (SITC) 33rd Annual Meeting
  • Entered into a research collaboration and exclusive license agreement with Eli Lilly and Company (Lilly) for the cGAS-STING pathway inhibitor program for autoimmune and inflammatory diseases
  • Presented preclinical data on the role of intratumoral STING activation by ADU-S100 in combination with checkpoint inhibitors in anti-tumor immunity at the American Association for Cancer Research (AACR) Annual Meeting 2018 and the SITC 33rd Annual Meeting
  • Published a paper titled, “Magnitude of Therapeutic STING Activation Determines CD8+ T-Cell Mediated Anti-Tumor Immunity,” in the peer-reviewed journal, Cell Reports

APRIL

  • Presented preclinical data on BION-1301 for the treatment of IgA nephropathy at the American Society of Nephrology (ASN) Kidney Week 2018
  • Presented preclinical data on BION-1301 for the treatment of multiple myeloma at the AACR Annual Meeting 2018 and 60th American Society of Hematology (ASH) Annual Meeting and Exposition
  • Published a paper titled, “APRIL signaling via TACI mediates immunosuppression by T regulatory cells in multiple myeloma: therapeutic implications,” in the peer-reviewed journal, Leukemia

Financial Results

  • Cash Position – Cash, cash equivalents and marketable securities totaled $277.9 million at December 31, 2018, compared to $349.7 million at December 31, 2017. In the fourth quarter of 2018, Aduro collected an $18.1 million cash tax refund from the Internal Revenue Service related to its carryback claim for 2017 losses.
     
  • Revenue – Revenues were $2.8 million for the fourth quarter of 2018 and $15.1 million for the full year 2018, compared to $3.8 million and $17.2 million, respectively, for the same periods in 2017. The decrease in revenue in both periods was primarily due to the adoption of the ASC 606 accounting standard on January 1, 2018, which resulted in a change in revenue recognition methodology under our Novartis collaboration agreement.
     
  • Expenses – Research and development expenses were $17.6 million for the fourth quarter of 2018 and $75.8 million for the full year 2018, compared to $22.9 million and $89.4 million, respectively, for the same periods in 2017. The decrease in research and development expenses for both periods was primarily due to lower expenses for our antibody and LADD programs.
     
  • General and administrative expenses were $9.0 million for the fourth quarter of 2018 and $36.0 million for the full year 2018, compared to $8.8 million and $33.8 million, respectively, for the same periods in 2017. The increase in general and administrative expenses for both periods was primarily due to higher professional services and consulting costs as well as stock-based compensation expense.
     
  • Loss on impairment of intangible assets was $4.0 million for the fourth quarter and full year 2018. This expense was recorded due to the discontinuation of one of our acquired early research programs.
     
  • Net Loss – Net loss for the fourth quarter and year ended December 31, 2018 was $26.3 million, or $0.33 per share, and $95.4 million, or $1.21 per share, respectively. This compared to net loss of $26.1 million, or $0.34 per share, and $91.9 million, or $1.26 per share, respectively, for the same periods in 2017. The increase in net loss for the year was primarily due to the income tax benefit recorded in 2017.

About Aduro
Aduro Biotech, Inc. is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of therapies that are designed to harness the body’s natural immune system for the treatment of patients with challenging diseases. Aduro’s product candidates in the Stimulator of Interferon Genes (STING) and A Proliferation Inducing Ligand (APRIL) pathways are being investigated in cancer, autoimmune and inflammatory diseases. ADU-S100 (MIW815), which potentially activates the intracellular STING receptor for a potent tumor-specific immune response, is being evaluated in patients with cutaneously accessible metastatic solid tumors or lymphomas. BION-1301, a fully blocking monoclonal antibody that blocks APRIL binding to both the BCMA and TACI receptors, is being evaluated in multiple myeloma and as a potential treatment for IgA nephropathy. Aduro is collaborating with a number of leading global pharmaceutical companies to help expand and drive its product pipeline. 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, our ability to execute on our strategy, our ability to maintain a leadership role in the STING and APRIL pathways, the potential benefits from prioritizing our core technologies, our ability to fund our operations into 2022, the potential for our technology, our ability to execute on our development 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, 2018, 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.

 
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,  
  2018     2017     2018     2017  
  (unaudited)     (unaudited)     (audited)     (audited)  
Revenue:                              
Collaboration and license revenue $ 2,758     $ 3,756     $ 15,087     $ 17,109  
Grant revenue                     130  
Total revenue   2,758       3,756       15,087       17,239  
Operating expenses:                              
Research and development   17,614       22,917       75,836       89,382  
General and administrative   9,014       8,769       36,035       33,751  
Loss on impairment of intangible assets   3,992             3,992        
Amortization of intangible assets   141       146       584       559  
Total operating expenses   30,761       31,832       116,447       123,692  
Net loss from operations   (28,003 )     (28,076 )     (101,360 )     (106,453 )
Interest income, net   1,392       1,016       5,284       3,444  
Other expense, net   (49 )     (21 )     (64 )     (218 )
Loss before income tax   (26,660 )     (27,081 )     (96,140 )     (103,227 )
Income tax benefit   339       950       783       11,364  
Net loss $ (26,321 )   $ (26,131 )   $ (95,357 )   $ (91,863 )
Net loss per common share, basic $ (0.33 )   $ (0.34 )   $ (1.21 )   $ (1.26 )
Net loss income per common share, diluted $ (0.33 )   $ (0.34 )   $ (1.21 )   $ (1.26 )
Shares used in computing net loss per common share, basic   79,421,381       77,350,401       78,812,407       72,901,215  
                               


 
ADURO BIOTECH, INC.
Condensed Consolidated Balance Sheets
(In thousands)
(Audited)
     
  December 31,  
  2018     2017  
Assets              
Current assets:              
Cash and cash equivalents $ 126,310     $ 157,614  
Short-term marketable securities   140,129       168,489  
Accounts receivable   12,037       989  
Income tax receivable         17,495  
Prepaid expenses and other current assets   4,500       5,544  
Total current assets   282,976       350,131  
Long-term marketable securities   11,434       23,614  
Property and equipment, net   29,157       31,085  
Goodwill   8,334       8,723  
Intangible assets, net   25,135       31,107  
Restricted cash   468       468  
Total assets $ 357,504     $ 445,128  
Liabilities and Stockholders Equity              
Current liabilities:              
Accounts payable $ 1,457     $ 1,150  
Accrued clinical trial and manufacturing expenses   2,542       5,898  
Accrued expenses and other liabilities   10,518       12,601  
Contingent consideration         6,829  
Deferred revenue   16,000       14,923  
Total current liabilities   30,517       41,401  
Deferred rent   11,063       9,991  
Contingent consideration   998       759  
Deferred revenue   172,671       148,148  
Deferred tax liabilities   6,104       6,538  
Other long-term liabilities   840       818  
Total liabilities   222,193       207,655  
Commitments and contingencies              
Stockholders’ equity:              
Preferred stock          
Common stock   8       8  
Additional paid-in capital   538,895       519,435  
Accumulated other comprehensive income   940       1,893  
Accumulated deficit   (404,532 )     (283,863 )
Total stockholders’ equity   135,311       237,473  
Total liabilities and stockholders’ equity $ 357,504     $ 445,128  
               


   
Investor Relations Contact: Media Contact:
Noopur Liffick Aljanae Reynolds
510-809-2465
510-809-2452
investors@aduro.com press@aduro.com
   

 

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