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Aduro Biotech Reports Second Quarter 2018 Financial Results

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BERKELEY, Calif., Aug. 01, 2018 (GLOBE NEWSWIRE) -- Aduro Biotech, Inc. (NASDAQ:ADRO) today reported financial results for the second quarter ended June 30, 2018. Net loss for the second quarter of 2018 was $24.4 million, or $0.31 per share, and for the six months ended June 30, 2018 net loss was $45.9 million, or $0.59 per share, compared to net loss of $19.4 million, or $0.27 per share, and net loss of $41.2 million, or $0.59 per share, respectively, for the same periods in 2017.

Recent Developments:

  • Presented updated preclinical data for ADU-S100, a first-in-class small molecule therapeutic in Phase 1 studies targeting the STING pathway at the American Association for Cancer Research Annual Meeting (AACR) held on April 14-18, 2018
  • Presented at AACR preclinical data for BION-1301, an anti-APRIL antibody currently in a Phase 1/2 study for the treatment of patients with multiple myeloma
  • Presented at AACR preclinical data for ADU-1604, an anti-CTLA-4 antibody scheduled to enter clinical development in the second half of 2018
  • Presented preliminary observations from case study of a patient with metastatic colorectal cancer treated in ongoing proof-of-concept Phase 1 trial of personalized neoantigen-based immunotherapy (pLADD) program at the European Neoantigen Summit held on April 24-26, 2018
  • Announced initiation of Phase 1b study of ADU- 214 in combination with nivolumab for the treatment of advanced lung cancer under strategic partnership with Janssen

Cash, cash equivalents and marketable securities totaled $305.9 million at June 30, 2018, compared to $349.7 million at December 31, 2017. 

Revenue was $2.6 million for the second quarter of 2018 and $9.3 million for the six months ended June 30, 2018, compared to $5.9 million and $9.7 million, respectively, for the same periods in 2017. The variation in collaboration and license revenue for the quarter was primarily due to the timing of milestone payments earned from Merck for advancement of its anti-CD27 antibody, which entered clinical development in early 2018. The decrease in revenue for the first half of 2018 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 for our Novartis collaboration revenue.

Research and development expenses were $19.4 million for the second quarter of 2018 and $39.5 million for the six months ended June 30, 2018, compared to $21.4 million and $42.0 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 programs, including contingent consideration and contract manufacturing related to ADU-1604 and BION-1301, respectively. In addition, clinical development expenses declined in 2018 following the wind down of CRS-207 development activities, partially offset by increased expenses for our ongoing clinical programs including ADU-S100, BION-1301, ADU-1604 and our personalized neoantigen-based immunotherapy.

General and administrative expenses were $8.8 million for the second quarter of 2018 and $17.9 million for the six months ended June 30, 2018, compared to $8.2 million and $16.5 million, respectively, for the same periods in 2017. The increase in general and administrative expenses for both periods was primarily due to outside professional services, legal fees associated with our patent portfolio and higher stock-based compensation expense.

About Aduro

Aduro Biotech, Inc. is an immunotherapy company focused on the discovery, development and commercialization of therapies that are intended to transform the treatment of challenging diseases. Aduro's technology platforms, which are designed to harness the body's natural immune system, are being investigated in cancer indications and have the potential to expand into autoimmune and infectious diseases. Aduro's STING Pathway Activator platform is designed to activate the STING receptor in immune cells, resulting in a potent tumor-specific immune response. ADU-S100 is the first STING Pathway Activator compound to enter the clinic and is currently being evaluated in both a Phase 1 monotherapy study as well as a Phase 1b combination study with an anti-PD1 immune checkpoint inhibitor. Aduro's B-select monoclonal antibody platform, including BION-1301, an anti-APRIL antibody, is comprised of a number of immune modulating assets in research and development. Aduro's pLADD program is based on proprietary attenuated strains of Listeria that have been engineered to express tumor neoantigens that are specific to an individual patient's tumor. Other Listeria strains for lung and prostate cancers are being advanced by a partner. Aduro is collaborating with leading global pharmaceutical companies to expand its products and technology platforms. 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, the potential for our technology and our ability to advance our drug development programs on our own or with our collaborators. 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 quarterly report on Form 10-Q for the quarter ended June 30, 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)
(Unaudited)

   
    Three Months Ended June 30,     Six Months Ended June 30,  
    2018     2017     2018     2017  
Revenue:                                
Collaboration and license revenue   $ 2,639     $ 5,876     $ 9,266     $ 9,648  
Grant revenue           41             41  
Total revenue     2,639       5,917       9,266       9,689  
Operating expenses:                                
Research and development     19,420       21,440       39,547       42,011  
General and administrative     8,827       8,245       17,872       16,523  
Amortization of intangible assets     147       136       299       268  
Total operating expenses     28,394       29,821       57,718       58,802  
Loss from operations     (25,755 )     (23,904 )     (48,452 )     (49,113 )
Interest income     1,340       780       2,539       1,430  
Other loss, net     (20 )     (64 )     (36 )     (68 )
Loss before income tax     (24,435 )     (23,188 )     (45,949 )     (47,751 )
Income tax benefit     38       3,788       59       6,540  
Net loss   $ (24,397 )   $ (19,400 )   $ (45,890 )   $ (41,211 )
Net loss per common share, basic and diluted   $ (0.31 )   $ (0.27 )   $ (0.59 )   $ (0.59 )
Shares used in computing net loss per common share,
basic and diluted
    78,817,840       71,101,336       78,364,914       69,679,746  
   


ADURO BIOTECH, INC.
Condensed Consolidated Balance Sheets
(In thousands, except share amounts)
|(Unaudited)

             
    June 30,     December 31,  
    2018     2017  
Assets                
Current assets:                
Cash and cash equivalents   $ 114,401     $ 157,614  
Short-term marketable securities     174,711       168,489  
Accounts receivable     1,042       989  
Income tax receivable     17,495       17,495  
Prepaid expenses and other current assets     4,606       5,544  
Total current assets     312,255       350,131  
Long-term marketable securities     16,783       23,614  
Property and equipment, net     30,331       31,085  
Goodwill     8,506       8,723  
Intangible assets, net     30,044       31,107  
Restricted cash     468       468  
Total assets   $ 398,387     $ 445,128  
Liabilities and Stockholders' Equity                
Current liabilities:                
Accounts payable   $ 992     $ 1,150  
Accrued clinical trial and manufacturing expenses     4,110       5,898  
Accrued expenses and other liabilities     8,801       12,601  
Contingent consideration     6,799       6,829  
Deferred revenue     17,613       14,923  
Total current liabilities     38,315       41,401  
Deferred rent     10,955       9,991  
Contingent consideration     947       759  
Deferred revenue     164,586       148,148  
Deferred tax liabilities     6,319       6,538  
Other long-term liabilities     831       818  
Total liabilities     221,953       207,655  
Commitments and contingencies                
Stockholders' equity:                
Preferred stock            
Common stock     8       8  
Additional paid-in capital     530,312       519,435  
Accumulated other comprehensive income     1,179       1,893  
Accumulated deficit     (355,065 )     (283,863 )
Total stockholders' equity     176,434       237,473  
Total liabilities and stockholders' equity   $ 398,387     $ 445,128  
   


 

 

 

Contact:   Media Contact:
Jennifer Lew   Aljanae Reynolds
Chief Financial Officer   510-809-2452
510-809-4816   press@aduro.com

 

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