News Column

AGTC Announces Financial Results for the Quarter and Nine Months Ended March 31, 2014

May 14, 2014

GAINESVILLE, Fla., May 14, 2014 (GLOBE NEWSWIRE) -- Applied Genetic Technologies Corporation (Nasdaq:AGTC), a clinical stage biotechnology company developing adeno-associated virus (AAV)-based gene therapies for the treatment of rare eye diseases, today announced financial results for the three and nine months YTD ended March 31, 2014.

"We successfully completed our initial public offering in early April, which provides us with the financial resources to support our strategy of developing a portfolio of gene therapy-based products for orphan eye diseases," said Sue Washer, President and CEO. "We are pleased to report that we remain on track to meet the timelines for each of our product candidates that we outlined in the final prospectus for our initial public offering."

Select Financial Results for the Quarter Ended March 31, 2014

Total revenue for the three months ended March 31, 2014 was $232,000 compared with $116,000 in the same period in 2013. The increase was primarily due to the inception of new grant-funded projects related to the Company's ACHM product candidate.

Research and development expense was $2.1 million in the three months ended March 31, 2014 compared with $744,000 in the same period in 2013. The increase was due to activities needed to advance the company's XLRS and ACHM product candidates, including increased facilities costs relating to new laboratory expansion, and new hires.

General and administrative expense increased by $1.0 million from $323,000 for the three months ended March 31, 2013 to $1.4 million for the three months ended March 31, 2014.  The increase was the result of increased personnel costs relating to new hires, as well as increased legal and accounting costs.

The Company reported a net loss of $3.6 million in the quarter ended March 31, 2014 compared with $1.6 million for the same period in 2013.  

As of March 31, 2014, the Company had cash and cash equivalents and short-term investments of $24.5 million. This amount does not include the net proceeds from the Company's initial public offering, which closed on April 1 and April 3, 2014. The aggregate net proceeds to AGTC, after underwriting discounts and commissions and estimated offering expenses, were $51.8 million.

About AGTC

AGTC is a clinical-stage biotechnology company that uses its proprietary gene therapy platform to develop products designed to transform the lives of patients with severe inherited orphan diseases in ophthalmology. AGTC's lead product candidates, which are each in the preclinical stage, focus on X-linked retinoschisis, achromatopsia and X-linked retinitis pigmentosa, which are rare diseases of the eye, caused by mutations in single genes, that significantly affect visual function and currently lack effective medical treatments.

About X-linked Retinoschisis (XLRS)

XLRS is an inherited retinal disease caused by mutations in the RS1 gene, which encodes the retinoschisin protein. It is characterized by abnormal splitting of the layers of the retina, resulting in poor visual acuity in young boys, which can progress to legal blindness in adult men.

About Achromatopsia (ACHM)

ACHM is an inherited retinal disease, which is present from birth and is characterized by the lack of cone photoreceptor function. The condition results in markedly reduced visual acuity light sensitivity causing day blindness, and complete loss of color discrimination. Best-corrected visual acuity in persons affected by ACHM, even under subdued light conditions, is usually about 20/200, a level at which people are considered legally blind.

About X-linked Retinitis Pigmentosa (XLRP)

 XLRP is an inherited retinal dystrophy characterized by the progressive loss of vision, one form of which is caused by mutations in the RPGR gene, which encodes a protein essential for normal vision. It is commonly first observed in young men, who notice problems with vision under low light conditions, or night blindness, followed by tunnel vision, leading to poor central vision and eventual total blindness.

Forward Looking Statements

Statements in this press release should be read in conjunction with the Company's financial statements and related notes and Management's Discussion and Analysis of Financial Condition and Result of Operations appearing in the Company's registration statement on Form S-1 (File No. 333-193309), as amended, filed with the SEC. In addition to historical financial information, the following discussion contains forward-looking statements that reflect the Company's plans, estimates, assumptions and beliefs. Actual results could differ materially from those discussed in the forward-looking statements. Forward-looking statements include information concerning possible or assumed future results of operations, business strategies and operations, preclinical and clinical product development and regulatory progress, financing plans, potential growth opportunities, potential market opportunities and the effects of competition. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as "anticipates," "believes," "could," "seeks," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "projects," "should," "will," "would" or similar expressions and the negatives of those terms. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Also, forward-looking statements represent management's plans, estimates, assumptions and beliefs only as of the date of this release. Except as required by law, we assume no obligation to update these forward-looking statements publicly or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Financial tables follow 

APPLIED GENETIC TECHNOLOGIES CORPORATION
BALANCE SHEETS
(UNAUDITED)
(in thousands, except per share data)

 
 



March 31,

2014
Pro forma

March 31,

2014
  




June 30,

2013
ASSETS      
Current assets      
Cash and cash equivalents $ 8,030 $ 8,030 $ 8,893
Short-term investments  16,500  16,500  14,000
Grants receivable  363  363  143
Other current assets  690  690  475
Total current assets  25,583  25,583  23,511
Property and equipment, net  362  362  341
Intangible assets, net  1,573  1,573  1,630
Other assets  1,752  1,752  8
Total assets $ 29,270 $ 29,270 $ 25,490
LIABILITIES, CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS' (DEFICIT) EQUITY      
Current liabilities      
Accounts payable $ 1,253 $ 1,253 $ 792
Accrued expenses  921  921  359
Deferred revenue  —   —   212
Current portion of debt and capital lease  —   —   1
Series B purchase rights  —   —   2,096
Total current liabilities  2,174  2,174  3,460
Long-term liabilities      
Warrant liabilities  551  —   110
Total liabilities  2,725  2,174  3,570
       
Commitments and contingencies      
Series A-1 convertible preferred stock, par value $0.001 per share, 29,737 shares authorized at June 30, 2013 and March 31, 2014, 22,466 and 22,467 shares issued and outstanding at June 30, 2013 and March 31, 2014, respectively, and no shares issued and outstanding pro forma (aggregate liquidation preference of $21,699)  21,527  —   21,526
Series A-1A convertible preferred stock, par value $0.001 per share, 11,572 shares authorized, 11,479 shares issued and outstanding at June 30, 2013 and March 31, 2014, and no shares issued and outstanding pro forma (aggregate liquidation preference of $11,086)  10,998  —   10,998
Series B-1 convertible preferred stock, par value $0.001 per share, 67,570 shares authorized, 66,147 shares issued and outstanding at June 30, 2013 and March 31, 2014, and no shares issued and outstanding pro forma (aggregate liquidation preference of $8,579)  6,539  —   6,539
Series B-2 convertible preferred stock, par value $0.001 per share, 140,542 shares authorized, 122,750 shares issued and outstanding at June 30, 2013 and March 31, 2014, and no shares issued and outstanding pro forma (aggregate liquidation preference of $18,228)  19,040  —   19,040
Series B-3 convertible preferred stock, par value $0.001 per share, 82,670 shares authorized, no shares issued and outstanding at June 30, 2013 and pro forma, 58,817 shares issued and outstanding March 31, 2014 (aggregate liquidation preference of $10,722)  15,617  —   — 
Stockholders' (deficit) equity      
Common stock, par value $.001 per share, 150,000 shares authorized, 166 shares issued and outstanding at June 30, 2013 and March 31, 2014, and 9,286 shares issued and outstanding pro forma  —   9  — 
Additional paid-in capital  12,637  86,900  12,243
Accumulated deficit  (59,813)  (59,813)  (48,426)
Total stockholders' (deficit) equity  (47,176)  27,096  (36,183)
Total liabilities, convertible preferred stock and stockholders' (deficit) equity $ 29,270 $ 29,270 $ 25,490
 
 
APPLIED GENETIC TECHNOLOGIES CORPORATION
STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)
 
 Three Months Ended

March 31,
Nine Months Ended

March 31,
 2014201320142013
Revenue        
Grant revenue $ 182 $ 33 $ 648 $ 326
Sponsored research revenue  50  83  357  239
Total revenue  232  116  1,005  565
Operating expenses        
Research and development  2,128  744  5,801  1,900
General and administrative  1,364  323  3,335  972
Total operating expenses  3,492  1,067  9,136  2,872
Loss from operations  (3,260)  (951)  (8,131)  (2,307)
Other income (expense)        
Interest income  8  1  23  1
Interest expense  —   (20)  —   (172)
Fair value adjustments to warrant liabilities  (336)  3  (441)  8
Fair value adjustments to Series B purchase rights  —   (655)  (2,838)  (1,092)
Total other income (expense)  (328)  (671)  (3,256)  (1,255)
Net loss $ (3,588) $ (1,622) $ (11,387) $ (3,562)
Net loss per share, basic and diluted $ (25.45) $ (14.88) $ (95.69) $ (32.68)
Weighted-average shares outstanding, basic and diluted  141  109  119  109

CONTACT: David CareyLazar Partners Ltd. T: (212) 867-1768 dcarey@lazarpartners.com Corporate Contact: Larry Bullock Chief Financial Officer Applied Genetic Technologies Corporation T: (386) 462-2204 lbullock@agtc.com



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Source: Applied Genetic Technologies


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