MOUNTAIN VIEW, Calif.,
March 6, 2014 /PRNewswire/
-- Alexza Pharmaceuticals, Inc. (Nasdaq: ALXA) today reported
financial results for the quarter and year ended December 31, 2013. The net loss for the
fourth quarter was $5.7 million
compared to $10.3 million during the
same quarter in 2012. The net loss for the years ended
December 31, 2013 and 2012 was
$39.6 million and $28.0 million, respectively. At
December 31, 2013, Alexza had
consolidated cash, cash equivalents and marketable securities of
$25.9 million.
"Last year was a time of significant transition and many firsts
for us," said Thomas B. King,
President and CEO of Alexza. "We received ADASUVE®
approval in the EU, commenced our U.S. commercial strategy and
initiated commercial manufacturing of ADASUVE for both the EU and
U.S. markets."
King continued, "Moreover, our partners have initiated the
global launch of ADASUVE, with the product now available in
the United States, Germany, Spain and Austria. ADASUVE is the first
approved product that provides an orally inhaled formulation with
fast onset as a treatment option for adults with agitation
associated with schizophrenia or bipolar I disorder. We
believe ADASUVE provides an important new option for clinicians who
treat these patients."
Alexza Business Updates
- In October 2013, Grupo Ferrer Internacional, S.A. initiated sales
of ADASUVE (inhalation powder, loxapine) in Austria. Ferrer is commercializing
ADASUVE in Austria through a
distribution agreement with AOP Orphan Pharmaceuticals AG.
Ferrer is Alexza's commercial partner for ADASUVE in Europe, Latin
America, Russia and the
Commonwealth of Independent States countries.
- In January 2014, Ferrer initiated
sales of ADASUVE in Spain.
In conjunction with the commercial introduction of ADASUVE in
Spain by Ferrer, Alexza received a
$1 million milestone payment.
- In February 2014, Robert A. Lippe joined Alexza in the newly
created position of Executive Vice President, Operations and Chief
Operations Officer.
- In March 2014, Teva
Pharmaceutical Industries Ltd. announced the commercial launch of
ADASUVE (loxapine) inhalation powder 10 mg in the United
States. Teva is Alexza's commercial partner for ADASUVE in
the U.S.
Financial Results - Periods Ended December 31, 2013 and 2012
Alexza recorded revenues of $1.3
million and $47.8 million in
the quarter and year ended December 31,
2013, respectively, compared to $0.7
million and $4.1 million in
the same periods in 2012, respectively. The revenues in 2013
consist of $42.8 million of licensing
revenues from Teva, amortization of the upfront payment from the
Ferrer agreement, a milestone payment from Ferrer for the first
commercial sale in Germany, and
transfer pricing of ADASUVE units shipped to Teva and Ferrer.
Revenues in 2012 represent the amortization of upfront
payments earned under agreements with Ferrer and Cypress
Bioscience.
GAAP operating expenses were $10.7
million and $46.1 million in
the quarter and year ended December 31,
2013, respectively, and $11.6
million and $32.9 million in
the same periods in 2012, respectively.
Cost of goods sold were $4.3
million and $11.2 million
during the quarter and year ended December
31, 2013. Cost of goods sold primarily consists of
start-up activities related to commercial manufacturing operations,
and, to a lesser extent, manufacture of commercial product.
Alexza is in the early stages of commercialization and has
incurred significantly higher than normal indirect costs in the
production of its inventory. These costs are associated with
manufacturing start-up costs and low production volumes, and Alexza
expects to continue to incur higher than normal indirect costs
until it gets closer to normal manufacturing capacity. All
costs associated with the manufacturing process incurred prior to
the first commercial product produced in the second quarter of 2013
were expensed as a component of research and development expense.
In the second and third quarter of 2013, we shipped 13,370 units
and 14,405 units of ADASUVE, all of which were shipped to Ferrer
for the EU markets. In the fourth quarter of 2013, we shipped a
total of 21,170 units of ADASUVE, consisting of 11,863 units to
Ferrer and 9,307 units to Teva.
Research and development expenses were $2.6 million in the quarter and $19.1 million in the year ended December 31, 2013, compared to $7.0 million and $21.8
million in the same periods in 2012, respectively.
These decreases were primarily a result of expenses related
to quality and manufacturing being classified as cost of goods sold
in 2013 partially offset by additional regulatory expenses and
costs associated with Alexza's post-approval commitments related to
the EU Marketing Authorization Application approval.
General and administrative expenses were $3.8 million in the quarter and $15.8 million in the year ended December 31, 2013, as compared to $4.6 million and $11.1
million in the same periods in 2012, respectively. The
increase in the full year was partially due to
pre-commercialization efforts in the first and second quarter of
2013, which were assumed by Teva as part of the license and supply
agreement signed in May 2013. In addition, Alexza increased
headcount and external expenses to support the increased
operational activities following the approval of ADASUVE in the
U.S. and EU. In the fourth quarter of 2012, the Company
incurred large share-based compensation and bonus expense due to
the accomplishment of certain company goals, which triggered
certain performance based compensation payments.
In connection with the acquisition of Symphony Allegro in
August 2009, Alexza is obligated to
pay the former Symphony Allegro stockholders certain percentages of
cash payments that may be generated from collaboration transactions
for ADASUVE, AZ-002 (Staccato alprazolam) or AZ-104
(Staccato loxapine, low-dose). The Company records
this obligation as a contingent liability and updates the liability
each quarter. For the fourth quarter of 2013, the gain on the
change in the fair value of the contingent liability was primarily
due the change in the projected timing of cash flows by one year,
associated with the possible expansion of ADASUVE into additional
markets, through a supplemental New Drug Application.
In the third and fourth quarters of 2013, the Company drew down
$10 million and $5 million, respectively, against the Teva Note.
Alexza believes that based on its cash, cash equivalents and
marketable securities balances at December
31, 2013, estimated product revenues, royalties and
milestones associated with the sale of ADASUVE, remaining proceeds
available under the Teva Note, and expected cash usage, it has
sufficient capital resources to meet its anticipated cash needs
into the third quarter of 2014.
Conference Call Information - 5:00 p.m.
Eastern Time on March 6,
2014
To access the webcast via the Internet, go to www.alexza.com, under
the "Investor Relations" link. Please log onto the webcast
prior to the start of the call to ensure time for any software
downloads that may be required to participate in the
webcast.
To access the live conference call, dial 888-713-4217 or
+1-617-213-4869 (international). The reference number to
enter the call is 27032609. Interested parties may also
pre-register for the call at
https://www.theconferencingservice.com/prereg/key.process?key=P96G8VMUD.
A replay of the conference call may be accessed at
www.alexza.com under the "Investor Relations" link, or by dialing
888-286-8010 or +1-617-801-6888 (international). The
reference number for the replay of the call is 66383761. A
replay of the call will be available for 30 days following the
event.
About Alexza Pharmaceuticals, Inc.
Alexza Pharmaceuticals is focused on the research, development and
commercialization of novel, proprietary products for the acute
treatment of central nervous system conditions. Alexza's
products are based on the Staccato® system, a hand-held
inhaler designed to deliver a drug aerosol to the deep lung,
providing rapid systemic delivery and therapeutic onset, in a
simple, non-invasive manner.
ADASUVE, Alexza's first commercial product, has been approved
for sale by the U.S. Food and Drug Administration and the European
Commission. Teva Pharmaceuticals USA, Inc. is Alexza's commercial partner for
ADASUVE in the U.S. Grupo Ferrer
Internacional, S.A. is Alexza's commercial partner for
ADASUVE in Europe, Latin America, Russia and the Commonwealth of Independent
States countries.
ADASUVE® and Staccato® are registered
trademarks of Alexza Pharmaceuticals, Inc.
Safe Harbor Statement
Alexza's policy is to provide
guidance on product candidates and corporate goals only for the
future one to two fiscal quarters, and to provide, update or
reconfirm its guidance only by issuing a press release or filing
updated guidance with the SEC in a publicly accessible document.
Clinical and corporate milestones guidance is as of March 6, 2014 and financial guidance relating to
the Company's current cash, cash equivalents, and marketable
securities is based upon balances as of December 31, 2013.
This news release contains forward-looking statements that
involve significant risks and uncertainties. Any statement
describing the Company's expectations or beliefs is a
forward-looking statement, as defined in the Private Securities
Litigation Reform Act of 1995, and should be considered an at-risk
statement. Such statements are subject to certain risks and
uncertainties, particularly those inherent in the process of
developing and commercializing drugs, including the ability of
Alexza and our partners, Teva and Ferrer, to effectively and
profitably commercialize ADASUVE, estimated product revenues and
royalties associated with the sale of ADASUVE, the adequacy of the
Company's capital to support the Company's operations, and the
Company's ability to raise additional funds and the potential terms
of such potential financings. The Company's forward-looking
statements also involve assumptions that, if they prove incorrect,
would cause its results to differ materially from those expressed
or implied by such forward-looking statements. These and other
risks concerning Alexza's business are described in additional
detail in the Company's Annual Report on Form 10-K for the year
ended December 31, 2012 and the
Company's other Periodic and Current Reports filed with the
Securities and Exchange Commission. Forward-looking statements
contained in this announcement are made as of this date, and the
Company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future events or otherwise.
ALEXZA
PHARMACEUTICALS, INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands, except
per share amounts)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Revenue
|
$
1,309
|
|
$
729
|
|
$47,839
|
|
$
4,070
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of goods sold
|
4,297
|
|
-
|
|
11,209
|
|
-
|
Research and development
|
2,607
|
|
7,023
|
|
19,082
|
|
21,849
|
General and administrative
|
3,762
|
|
4,606
|
|
15,778
|
|
11,093
|
Total operating
expenses
|
10,666
|
|
11,629
|
|
46,069
|
|
32,942
|
|
|
|
|
|
|
|
|
(Loss) income from
operations
|
(9,357)
|
|
(10,900)
|
|
1,770
|
|
(28,872)
|
|
|
|
|
|
|
|
|
Gain (loss) on change
in fair value of contingent consideration liability
|
4,100
|
|
900
|
|
(39,913)
|
|
1,900
|
Interest and other
income (expense), net
|
8
|
|
7
|
|
26
|
|
420
|
Interest
expense
|
(443)
|
|
(280)
|
|
(1,498)
|
|
(1,426)
|
Net loss
|
$(5,692)
|
|
$(10,273)
|
|
$(39,615)
|
|
$(27,978)
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per share
|
$
(0.33)
|
|
$
(0.65)
|
|
$
(2.38)
|
|
$
(2.24)
|
ALEXZA
PHARMACEUTICALS, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
(unaudited)
|
|
|
|
December
31,
|
|
December
31,
|
|
|
2013
|
|
2012
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
17,306
|
|
$
17,715
|
|
Marketable
securities
|
8,578
|
|
-
|
|
Restricted
cash
|
-
|
|
5,051
|
|
Accounts
receivable
|
129
|
|
-
|
|
Inventory
|
3,447
|
|
-
|
|
Prepaid expenses and
other current assets
|
1,453
|
|
852
|
Total current
assets
|
30,913
|
|
23,618
|
|
|
|
|
|
Property and
equipment, net
|
14,991
|
|
16,531
|
Other
assets
|
1,168
|
|
402
|
Total
assets
|
$
47,072
|
|
$
40,551
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
Total current
liabilities
|
14,898
|
|
18,718
|
Total noncurrent
liabilities
|
56,149
|
|
19,260
|
Total stockholders'
(deficit) equity
|
(23,975)
|
|
2,573
|
Total liabilities
and stockholders' equity
|
$
47,072
|
|
$
40,551
|
|
|
|
|
|
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SOURCE Alexza Pharmaceuticals, Inc.