SANTA MONICA, Calif.--(BUSINESS WIRE)--Kite Pharma, Inc. (NASDAQ:KITE), a cell therapy company, today reported first quarter 2017 financial results and provided a corporate update for the period ended March 31, 2017.
"Kite is intensely focused on bringing axicabtagene ciloleucel to market in 2017. Our preparation for the potential commercialization of the first CAR-T therapy in aggressive non-Hodgkin lymphoma began two years ago. With the team and infrastructure we now have in place, we are confident in our readiness to deliver upon potential approval in the U.S. and expect to file for approval in Europe in the third quarter of this year," said Arie Belldegrun, M.D., FACS, Chairman, President, and Chief Executive Officer of Kite. “We are also keeping an eye toward future growth with additional indications across the KTE-C19 program and development of earlier stage product candidates, including KITE-585, which we believe has the potential to become the next significant opportunity for Kite.”
First Quarter 2017 Financial Results
- Revenues were $9.8 million for the first quarter of 2017.
- Research and development expenses were $65.9 million for the first quarter of 2017, which includes $12.7 million of non-cash stock-based compensation expense.
- General and administrative expenses were $35.8 million for the first quarter of 2017, which includes $11.4 million of non-cash stock-based compensation expense.
- Net loss was $90.4 million, or $1.74 per share, for the first quarter of 2017.
- Non-GAAP net loss for the first quarter of 2017 was $66.3 million, or $1.28 per share, excluding non-cash stock-based compensation expense of $24.1 million.
- As of March 31, 2017, Kite had $804.0 million in cash, cash equivalents, and marketable securities. A public offering of common stock generated approximately $409.7 million in gross proceeds to Kite. In addition, Kite received a $50 million upfront payment related to its strategic collaboration with Daiichi Sankyo.
2017 Financial Guidance
- Kite continues to expect the full year 2017 net cash burn to be between $325 million and $340 million. This guidance assumes GAAP operating expenses to be between $490 million and $515 million, which includes approximately $135 million in non-cash stock based compensation expense. Kite expects 2017 total operating expenses to consist of approximately 60 percent Research and Development and approximately 40 percent General and Administrative.
First Quarter 2017 and Recent Highlights
Axicabtagene Ciloleucel/KTE-C19 Progress
- Presented positive topline results from the primary analysis of the ZUMA-1 study of axicabtagene ciloleucel in patients with aggressive non-Hodgkin lymphoma (NHL) at the 2017 American Association of Cancer Research annual meeting. Data included the 99 percent success rate in the manufacturing of clinical product patient dose from a single apheresis for the multi-center ZUMA-1 clinical trial.
- Completed the submission of a Biologics License Application (BLA) to the FDA for axicabtagene ciloleucel in patients with aggressive NHL.
- Initiated ZUMA-5 study of axicabtagene ciloleucel in patients with follicular NHL.
- Initiated ZUMA-9 study to provide patients access to axicabtagene ciloleucel during the regulatory review period.
- Entered a strategic collaboration with Daiichi Sankyo to develop and commercialize axicabtagene ciloleucel in Japan.
- Established a joint venture with Fosun Pharma to develop and commercialize T-cell therapies, including axicabtagene ciloleucel, in China.
- Cleared an investigational new drug (IND) application for KITE-718, a T cell receptor (TCR) cell therapy candidate that targets MAGE-A3/A6 antigens expressed on solid tumors.
- Started recruitment and training of cell therapy account managers to support customer service and logistical coordination.
Additional 2017 Clinical Milestones
KTE-C19 and axicabtagene ciloleucel
- Submit marketing authorization application (MAA) to the European Medicines Authority (EMA) for axicabtagene ciloleucel in aggressive NHL in the third quarter of 2017.
- Availability of preliminary 12-month follow-up data from ZUMA-1 study of axicabtagene ciloleucel in patients with aggressive NHL.
- Availability of preliminary follow-up Phase 1 data from ZUMA-3 and ZUMA-4 studies of pediatric and adult acute lymphoblastic leukemia, respectively.
- Advance ZUMA-3 and ZUMA-4 studies into Phase 2.
- Availability of preliminary data from ZUMA-6 combination study of axicabtagene ciloleucel and atezolizumab PD-L1 checkpoint inhibitor in aggressive NHL.
Cell Therapy Pipeline
- Initiate Phase 1 study of KITE-718 in patients with solid tumors in the second quarter of 2017.
- File IND for KITE-585, a CAR T cell therapy candidate that targets BCMA for the treatment of multiple myeloma, in the third quarter of 2017.
Kite is a biopharmaceutical company engaged in the development of innovative cancer immunotherapies with a goal of providing rapid, long-term durable response and eliminating the burden of chronic care. The company is focused on chimeric antigen receptor (CAR) and T cell receptor (TCR) engineered cell therapies designed to empower the immune system's ability to recognize and kill tumors. Kite is based in Santa Monica, CA. For more information on Kite, please visit www.kitepharma.com. Sign up to follow @KitePharma on Twitter at www.twitter.com/kitepharma.
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. The press release may, in some cases, use terms such as "predicts," "believes," "potential," "proposed," "continue," "estimates," "anticipates," "expects," "expected," "plans," "intends," "may," "could," "might," "will," "should" or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Forward-looking statements include statements regarding intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things: the ability and timing of obtaining regulatory approval based on the studies of axicabtagene ciloleucel, commercially launching axicabtagene ciloleucel, submitting an MAA to the EMA for axicabtagene ciloleucel, and researching and developing additional product candidates, including KITE-718 and KITE-585, and meeting the additional 2017 clinical milestones, and Kite’s 2017 financial guidance. Various factors may cause differences between Kite's expectations and actual results as discussed in greater detail in Kite's filings with the Securities and Exchange Commission, including without limitation in its Form 10-Q for the quarter ended March 31, 2017. Any forward-looking statements that are made in this press release speak only as of the date of this press release. Kite assumes no obligation to update the forward-looking statements whether as a result of new information, future events or otherwise, after the date of this press release.
Conference Call and Webcast Details
Kite will host a live conference call and webcast today at 5:30 AM Pacific Time (8:30 AM Eastern Time) to discuss financial results and provide a business update. To access the live conference call by telephone, please dial 888-771-4371 (U.S.) or 847-585-4405 (International). The conference ID number for the live call is 44658201. The webcast will be made available on the Company's website at www.kitepharma.com under the Investors tab in the Events and Presentations section. Following the live audio webcast, a replay will be available on the Company's website for approximately 30 days.
|KITE PHARMA, INC.|
|CONSOLIDATED BALANCE SHEETS|
MARCH 31, 2017
|Cash, cash equivalents, and marketable securities||$||804,028||$||414,422|
|Prepaid expenses and other current assets||15,200||12,974|
|Total current assets||819,228||427,396|
|Restricted cash and investments||17,883||10,669|
|Property and equipment, net||46,241||44,409|
|Intangible assets and goodwill, net||30,873||31,398|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accrued expenses and other current liabilities||26,492||29,482|
|Total current liabilities||79,592||55,142|
|Deferred revenue, less current portion||38,177||19,779|
|Other non-current liabilities||11,301||7,195|
|Total stockholders' equity||780,098||427,970|
|Total liabilities and stockholders' equity||$||923,743||$||524,304|
|KITE PHARMA, INC.|
|CONSOLIDATED STATEMENTS OF OPERATIONS|
|(In thousands, except per share amounts)|
THREE MONTHS ENDED
|Research and development||65,906||34,414|
|General and administrative||35,842||16,683|
|Total operating expenses||101,748||51,097|
|Loss from operations||(91,912||)||(45,970||)|
|Other income (expense)||428||29|
|Loss before income taxes||(90,460||)||(45,125||)|
|Benefit from income taxes||61||1,209|
|Net loss per share, basic and diluted||$||(1.74||)||$||(0.90||)|
|Weighted-average shares outstanding, basic and diluted||51,840||48,832|
Note Regarding Use of Non-GAAP Financial Measures
Kite provides non-GAAP net loss and non-GAAP net loss per share that include adjustments to U.S. Generally Accepted Accounting Principles (GAAP) figures. These adjustments to GAAP net loss exclude non-cash stock-based compensation expense. Kite believes that these non-GAAP financial measures, when considered together with the GAAP figures, can enhance an overall understanding of Kite's financial performance. The non-GAAP financial measures are included with the intent of providing investors with a more complete understanding of Kite's operating results. In addition, these non-GAAP financial measures are among the indicators Kite's management uses for planning purposes and measuring Kite's performance. These non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The non-GAAP financial measures used by Kite may be calculated differently from, and therefore may not be comparable to, non-GAAP financial measures used by other companies. Please refer below for a reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures.
|KITE PHARMA, INC.|
|Reconciliation of GAAP to Non-GAAP Net Loss|
|(In thousands, except per share amounts)|
THREE MONTHS ENDED
|Net loss - GAAP||$ (90,399)||$ (43,916)|
|Non-cash stock-based compensation expense||24,076||14,864|
|Net loss - Non-GAAP||$ (66,323)||$ (29,052)|
|Net loss per share, basic and diluted - GAAP||$ (1.74)||$ (0.90)|
|Non-cash stock-based compensation expense per share||0.46||0.30|
|Net loss per share, basic and diluted - Non-GAAP||$ (1.28)||$ (0.60)|
|Weighted average common shares outstanding, basic and diluted||51,840||48,832|