Market Overview

AmpliPhi Biosciences Reports First Quarter 2019 Financial Results and Business Highlights

  • Entered into a merger agreement with C3J Therapeutics that is
    expected to result in an NYSE American-listed company (to be named
    Armata Pharmaceuticals) focused on development of precisely targeted
    bacteriophage therapeutics
  • $10.0 million of new capital to be invested in combined company
  • Special shareholders meeting to be held on May 8, 2019 at 8:30 a.m.
    Pacific Time, transaction expected to close soon afterwards

AmpliPhi Biosciences Corporation (NYSE:APHB), a
clinical-stage biotechnology company focused on precisely targeted
bacteriophage therapeutics for antibiotic-resistant infections, today
announced financial results for the first quarter ended March 31, 2019.
AmpliPhi Biosciences will not be conducting a conference call in
conjunction with this financial results release.

"We remain on track and excited for the closing of our merger with C3J
Therapeutics, which we expect later this month," said Paul C. Grint,
M.D., CEO of AmpliPhi Biosciences. "As we continue to progress towards
the initiation of our clinical trial of AB-SA01 for the treatment of S.
bacteremia later in 2019, we look forward to the combined
efforts and capabilities of Armata Pharmaceuticals, offering both
natural and synthetic phage therapies to treat antibiotic-resistant

Recent Business Highlights

  • In January 2019, AmpliPhi and C3J Therapeutics, Inc., a privately held
    clinical-stage biotechnology company focused on the development of
    novel synthetically engineered bacteriophage products, announced a
    definitive agreement under which a wholly owned subsidiary of AmpliPhi
    will merge with C3J in an all-stock transaction, subject to
    shareholder approval. Certain existing C3J shareholders have agreed to
    purchase $10.0 million of common stock of the combined company
    immediately following the closing of the merger, subject to customary
    conditions. The financing will help fund further development of the
    combined company's preclinical and clinical programs, and is expected
    to close immediately following the completion of the merger.
    Management expects the merger will close in mid-May 2019.

First Quarter 2019 Financial Results

  • Research and development (R&D) expenses for the first quarter of 2019
    were $1.5 million, consistent with the first quarter of 2018.
  • General and administrative (G&A) expenses were $2.1 million for the
    first quarter of 2019 compared to $1.6 million for the first quarter
    of 2018. The increase of $0.5 million was primarily due to higher
    professional fees in the first quarter of 2019.
  • Net cash used in operating activities for the first quarter of 2019
    was $2.6 million, as compared to $3.5 million for the first quarter of
  • Cash and cash equivalents at March 31, 2018 totaled $5.5 million.
  • As of May 6, 2019, there were approximately 33.5 million shares of
    common stock outstanding.

About AmpliPhi Biosciences

AmpliPhi Biosciences Corporation is a clinical-stage biotechnology
company focused on precisely targeted bacteriophage therapeutics for
antibiotic-resistant infections using its proprietary
bacteriophage-based technology. AmpliPhi's lead product candidates,
AB-SA01 and AB-PA01, target Staphylococcus aureus and Pseudomonas
, respectively, including multidrug-resistant strains,
which are included on the WHO's 2017 Priority Pathogens List. Phage
therapeutics are uniquely positioned to address the threat of
antibiotic-resistance as they can be precisely targeted to kill select
bacteria, have a differentiated mechanism of action, can penetrate and
disrupt biofilms (a common bacterial defense mechanism against
antibiotics), are potentially synergistic with antibiotics and have been
shown to restore antibiotic sensitivity to drug-resistant bacteria. For
more information visit

Forward Looking Statements

This press release contains "forward-looking" statements, including,
without limitation, statements related to the anticipated consummation
of the transactions contemplated by the merger agreement and related
transactions, the consummation of the sale of $10 million of the
combined company's common stock to certain shareholders of C3J
immediately following the closing of the merger, the anticipated
benefits of the proposed merger and $10 million financing, and
statements related to the anticipated initiation of a clinical trial of
AB-SA01 for the treatment of S. aureus bacteremia later in 2019.
Any statements contained in this press release that are not statements
of historical fact may be deemed to be forward-looking statements. These
forward-looking statements are based upon AmpliPhi's current
expectations. Forward-looking statements involve risks and
uncertainties. AmpliPhi's actual results and the timing of events could
differ materially from those anticipated in such forward-looking
statements as a result of these risks and uncertainties, which include,
without limitation, risks related to: AmpliPhi's ability to complete the
merger and the related $10 million common stock financing immediately
thereafter, on the proposed terms and schedule, or at all, including
risks and uncertainties related to obtaining the requisite shareholder
approval of the transactions, as well as the satisfaction of other
closing conditions related to the merger agreement and the share
purchase agreement for the $10 million private placement; and AmpliPhi's
ability to advance its preclinical and clinical programs and the
uncertain and time-consuming regulatory approval process. Additional
risks and uncertainties relating to AmpliPhi and its business can be
found under the caption "Risk Factors" and elsewhere in AmpliPhi's
filings and reports with the SEC, including in AmpliPhi's Quarterly
Report on Form 10-Q, filed with the SEC on May 6, 2019, and AmpliPhi's
subsequent filings with the SEC. AmpliPhi expressly disclaims any
obligation or undertaking to release publicly any updates or revisions
to any forward-looking statements contained herein to reflect any change
in AmpliPhi's expectations with regard thereto or any change in events,
conditions or circumstances on which any such statements are based.

AmpliPhi Biosciences Corporation
Condensed Consolidated Balance Sheets
March 31, 2019 December 31, 2018
Cash and cash equivalents $ 5,535,000 $ 8,157,000
Prepaids and other current assets 407,000 251,000
Total current assets 5,942,000 8,408,000
Property and equipment, net 420,000 503,000
Intangible assets, net 2,969,000 2,976,000
Right-of-use asset 286,000 -
Total assets $ 9,617,000 $ 11,887,000
Liabilities and stockholders' equity
Total current liabilities $ 3,591,000 $ 2,572,000
Derivative liabilities 33,000 22,000
Deferred tax liability 819,000 819,000
Other long-term liabilities 213,000 -
Total liabilities 4,656,000 3,413,000
Stockholders' equity 4,961,000 8,474,000
Total liabilities and stockholders' equity $ 9,617,000 $ 11,887,000
AmpliPhi Biosciences Corporation
Condensed Consolidated Statements of Operations
Three Months Ended March 31,
2019   2018
(Unaudited) (Unaudited)
Revenue $ - $ -
Operating expenses:
Research and development 1,494,000 1,464,000
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