February 28, 2017
Kite Reports Fourth Quarter and Full Year 2016 Financial Results
Strong Execution Across Clinical Development, Pipeline, Manufacturing and Pre-Commercial Activities in 2016
- On Track to Complete Rolling Biologics License Application to the
U.S. Food and Drug Administrationfor Axicabtagene Ciloleucel by End of First Quarter 2017
U.S.Approval and Launch of Axicabtagene Ciloleucel Expected in 2017
- Conference Call to Be Held Today at
9:00 AM Eastern Time
In a separate announcement today, Kite issued positive topline results from the primary analysis of the ZUMA-1 study of axicabtagene ciloleucel in patients with aggressive non-Hodgkin lymphoma (NHL). Kite continues to expect completion of its rolling submission of a Biologics License Application (BLA) to the
"The accomplishments, leadership additions to the company, and performance of Kite during 2016 put us in a position of strength as we prepare to potentially deliver the first CAR-T therapy for aggressive NHL to patients later this year," said
Fourth Quarter and Full Year 2016 Financial Results
- Revenues were
$4.9 millionfor the fourth quarter of 2016 and $22.2 millionfor the full year of 2016.
- Research and development expenses were
$58.9 millionfor the fourth quarter of 2016, which includes $8.9 millionof non-cash stock-based compensation expense. For the full year of 2016, research and development expenses were $197.9 million, which includes $34.7 millionof non-cash stock-based compensation expense.
- General and administrative expenses were
$31.8 millionfor the fourth quarter of 2016, which includes $10.8 millionof non-cash stock-based compensation expense. For the full year of 2016, general and administrative expenses were $97.4 million, which includes $38.8 millionof non-cash stock-based compensation expense.
- Net loss was
$84.9 million, or $1.70per share, for the fourth quarter of 2016. For the full year of 2016, net loss was $267.1 million, or $5.46per share.
- Non-GAAP net loss for the fourth quarter of 2016 was
$65.2 million, or $1.31per share, excluding non-cash stock-based compensation expense of $19.7 million. For the full year of 2016, non-GAAP net loss was $193.5 million, or $3.95per share, excluding non-cash stock-based compensation expense of $73.6 million.
- As of
December 31, 2016, Kite had $414.4 millionin cash, cash equivalents, and marketable securities. In January 2017, Kite received a $50 millionupfront payment from Daiichi Sankyo related to the recently announced strategic collaboration in Japan.
2017 Financial Guidance
- Kite expects full year 2017 net cash burn to be between $325 million and $340 million, which includes approximately $30 million in capital expenditures but excludes cash inflows or cash outflows from business development activities, if any, and excludes planned upfront payments totaling
$90 millionfrom recently announced strategic collaborations in Asia. Estimated full year 2017 cash burn is driven primarily by a projected GAAP net loss of between $450 million and $465 million. The 2017 projected net loss includes non-cash stock-based compensation expenses of approximately $135 million.
- Kite expects full year 2017 revenue to be between
$40 millionand $50 million, which assumes no product revenue, and full year 2017 GAAP operating expenses to be between $490 millionand $515 million.
- As previously announced, Kite expects to have sufficient cash resources to fund its current operations, including planned clinical development programs, through the first half of 2018. This projection excludes cash inflows or cash outflows from future business development activity, if any.
Axicabtagene Ciloleucel/KTE-C19 Progress
- Presented positive interim results from the ZUMA-1 Phase 2 study of axicabtagene ciloleucel in aggressive NHL in a late-breaker oral presentation at the 2016
American Society of Hematology(ASH) annual meeting.
- Reported a Phase 1 update from the ZUMA-3 and ZUMA-4 trials of KTE-C19 in adult and pediatric relapsed/refractory acute lymphoblastic leukemia at the 2016 ASH annual meeting.
- Initiated ZUMA-6, a Phase 1b/2 study of axicabtagene ciloleucel in combination with the checkpoint inhibitor atezolizumab in patients with chemorefractory diffuse large B-cell lymphoma (DLBCL) in collaboration with
- Presented results from SCHOLAR-1, the first patient-level pooled analysis of outcomes in chemorefractory DLBCL, providing an important historical benchmark for studies of the disease.
- Initiated BLA rolling submission to the
FDAfor axicabtagene ciloleucel in December 2016.
- Received Orphan Drug Designation from the
FDAfor KTE-C19 in the treatment of five additional B-cell malignancies, granting Kite the designation for the major indications in hematologic malignancies in the US. KTE-C19 also has Orphan Drug Designation in the EU for these indications.
- Received Priority Medicines (PRIME) status from the
European Medicines Agency for KTE-C19in the treatment of chemorefractory DLBCL.
Axicabtagene Ciloleucel Commercial & Manufacturing Readiness
- Achieved 99 percent success rate in the manufacturing of clinical product patient dose from a single apheresis for the multi-center ZUMA-1 clinical trial.
- Marked the official opening of Kite's commercial manufacturing plant, a state-of-the-art facility in
El Segundo, Californiaestimated to have the capacity to produce more than 4,000 patient therapies per year.
- Initiated development of Kite Konnect™, a cloud-based solution for commercial-scale ordering, logistics, monitoring and delivery of T-cell therapies, designed to enable a positive prescriber and patient experience.
Pipeline Expansion and Developments
- Submitted an investigational new drug (IND) application for KITE-718, a TCR product candidate that targets MAGE-A3/A6 antigens expressed on solid tumors.
- Initiated plans to file an IND application in 2017 for KITE-585, a CAR product candidate targeting B cell maturation antigen (BCMA) for multiple myeloma.
- Initiated plans to file IND applications in 2018 for KITE-796, a CAR product candidate targeting CLL-1 in acute myeloid leukemia (AML), and for KITE-439, a TCR product candidate targeting human papillomavirus (HPV)-16 E7 for cervical cancer, head and neck cancer, and other solid tumors.
- Entered into a new
Cooperative Researchand Development Agreement (CRADA) for the development of a fully human anti-CD19 CAR product candidate to treat B-cell malignancies with the National Cancer Institute(NCI).
- Licensed intellectual property related to a fully human anti-CD19 CAR to treat B-cell malignancies from the
National Institutes of Health(NIH).
- Expanded the TCR portfolio by licensing intellectual property from the
NIHrelated to multiple TCR product candidates for the treatment of solid tumors expressing mutated KRAS antigens.
- Entered into a new CRADA for the development of TCR product candidates directed against HPV-16 E6 and E7 for the treatment of HPV-associated cancers with the NCI.
- Licensed a technology platform from The Regents of the
University of California, on behalf of the University of California, Los Angeles, for the scalable production of T cells using pluripotent stem cell lines capable of indefinite self-renewal and designed to overcome limitations of current allogeneic approaches.
- Partnered with
Leiden University Medical Centerto develop TCR product candidates targeting solid tumors associated with HPV-16 infection.
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 initiating and completing a submission of the BLA for axicabtagene ciloleucel with the
Conference Call and Webcast Details
Kite will host a live conference call and webcast today at
|KITE PHARMA, INC.|
|CONSOLIDATED BALANCE SHEETS|
|Cash, cash equivalents, and marketable securities||$||414,422||$||614,722|
|Prepaid expenses and other current assets||12,974||16,371|
Total current assets
|Restricted cash and investments||10,669||1,540|
|Property and equipment, net||44,409||30,116|
|Intangible assets and goodwill, net||31,398||36,740|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Accrued expenses and other current liabilities||29,482||11,787|
|Total current liabilities||55,142||36,169|
|Deferred revenue, less current portion||19,779||32,176|
|Other non-current liabilities||7,195||7,778|
|Total stockholders' equity||427,970||615,760|
|Total liabilities and stockholders' equity||$||524,304||$||707,963|
|KITE PHARMA, INC.|
|CONSOLIDATED STATEMENTS OF OPERATIONS|
|(In thousands, except per share amounts)|
THREE MONTHS ENDED
|Research and development||58,902||28,794||197,934||76,369|
|General and administrative||31,802||14,316||97,423||44,839|
|Total operating expenses||90,704||43,110||295,357||121,208|
|Loss from operations||(85,797||)||(38,223||)||(273,187||)||(103,950||)|
|Other income (expense)||(293||)||(7||)||(388||)||514|
|Loss before income taxes||(85,246||)||(37,740||)||(269,964||)||(101,653||)|
|Benefit (provision) from income taxes||312||(491||)||2,894||-|
|Net loss per share, basic and diluted||$||(1.70||)||$||(0.85||)||$||(5.46||)||$||(2.33||)|
|Weighted-average shares outstanding, basic and diluted||49,903||44,967||48,940||43,637|
Note Regarding Use of Non-GAAP Financial Measures
Kite provides non-GAAP net loss and non-GAAP net loss per share that include adjustments to
|KITE PHARMA, INC.|
|Reconciliation of GAAP to Non-GAAP Net Loss|
|(In thousands, except per share amounts)|
THREE MONTHS ENDED
|Net loss - GAAP||$||(84,934||)||$||(38,231||)||$||(267,070||)||$||(101,653||)|
|Non-cash stock-based compensation expense||19,696||13,770||73,579||40,672|
|Net loss - Non-GAAP||$||(65,238||)||$||(24,461||)||$||(193,491||)||$||(60,981||)|
|Net loss per share, basic and diluted - GAAP||$||(1.70||)||$||(0.85||)||$||(5.46||)||$||(2.33||)|
|Non-cash stock-based compensation expense per share||0.39||0.31||1.51||0.93|
|Net loss per share, basic and diluted - Non-GAAP||$||(1.31||)||$||(0.54||)||$||(3.95||)||$||(1.40||)|
|Weighted average common shares outstanding, basic and diluted||49,903||44,967||48,940||43,637|
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