Portola Pharmaceuticals Reports Third Quarter 2018 Financial Results and Provides Corporate Update
November 07 2018 - 4:05PM
– Third Quarter Andexxa Product Revenues of $7.7
Million –
Portola Pharmaceuticals, Inc.® (Nasdaq: PTLA) today reported
financial results for the three months ended September 30,
2018 and provided a corporate update.
“I am excited to join Portola at such a pivotal
moment in the Company’s history. Having just completed my first
month in role, I am very encouraged by the progress and momentum
we’ve achieved since prioritizing Andexxa, including our
preparations for the potential approval of Generation 2 supply in
the United States and in Europe,” said Scott Garland, Portola’s
president and chief executive officer. “The early feedback from our
first full quarter of sales gives us confidence in the significant
long-term potential for Andexxa, and we are now implementing our
new focused strategy for Bevyxxa. I am also excited about the
potential for cerdulatinib, which recently received Orphan Drug
Designation. We have a number of critical milestones ahead that I
expect we will achieve and we look forward to delivering our
life-saving medications to more patients, and driving sustainable
growth and value for shareholders.”
Third Quarter 2018 Financial
ResultsTotal revenue for the third quarter of 2018 was
$14.2 million, compared with $3.8 million for the third quarter of
2017. This includes $7.7 million in product revenue for our first
full quarter of Andexxa sales and $7.0 million in collaboration and
license revenues. Bevyxxa product orders remained relatively flat
in the third quarter, during which we recognized a net product loss
for Bevyxxa of $552 thousand. This adjustment was primarily related
to potential returns of initial launch quantities provided to
wholesalers.
Total operating expenses for the third quarter
of 2018 were $83.3 million, compared with $84.3
million for the same period in 2017. Total operating expenses
for the third quarter of 2018 included $11.4 million in
stock-based compensation expense, compared with $10.1
million for the same period in 2017.
Research and development expenses
were $40.2 million for the third quarter of 2018,
compared with $55.3 million for the third quarter of
2017. The decrease is driven primarily by the timing of
manufacturing costs for Andexxa Generation 2 campaigns.
Approximately $12 million, or 30 percent, of R&D expense
for the quarter and $75 million, or 45 percent, for nine months
year-to-date of total R&D expense was related to Andexxa
manufacturing.
Selling, general and administrative expenses for
the third quarter of 2018 were $38.8 million, compared
with $28.9 million for the same period in 2017,
reflecting the investment in our field force and marketing for our
product launches.
For the third quarter of 2018, Portola reported
a net loss of $71.3 million, or $1.08 net loss per
share, compared with a net loss of $82.9 million,
or $1.41 net loss per share, for the same period in
2017.
Cash, cash equivalents and investments
at September 30, 2018 totaled $380.9 million, compared
with $534.2 million as of December 31, 2017.
2018 Annual Financial
GuidanceFor the fiscal year 2018, Portola is updating its
guidance for GAAP operating expenses, which are now expected to be
between $355 million and $365 million, a decrease from the prior
guidance range of between $390 million and $430 million, both
including stock-based compensation. The updated guidance reflects
the Company’s narrowed focus on a group of key hospitals for the
Bevyxxa launch, as well as additional cost savings for the
year.
Recent Achievements and
Events
- Appointed industry veteran Scott Garland as president and chief
executive officer.
- Submitted Prior Approval Supplement (PAS) to U.S. FDA for
large-scale Generation 2 Andexxa manufacturing process; assigned a
PDUFA date of December 31, 2018.
- Transitioned commercial focus to the ongoing Andexxa U.S.
launch under the Early Supply Program.
- Secured New Technology Add-on Payment (NTAP) for Andexxa, which
became effective as of October 1, 2018.
- Implemented new strategy for Bevyxxa U.S. launch focused on
establishing 10 Centers of Excellence to provide a model for
driving broader adoption.
- Received Orphan Drug Designation from the U.S. FDA for
cerdulatinib for the treatment of peripheral T-cell lymphoma.
- Eight abstracts presented at the European Society of Cardiology
(ESC) meeting.
Upcoming Milestones
- Anticipated broad launch of Andexxa upon U.S. FDA approval of
Generation 2 supply.
- Committee for Medicinal Products for Human Use (CHMP) opinion
on andexanet alfa, with potential for European approval of
andexanet alfa in the first half of 2019.
- End-of-Phase 2 meeting and determination of regulatory path
forward for cerdulatinib in Q1 2019.
- New interim Phase 2a study results for cerdulatinib to be
presented in an oral session at the 60th American Society of
Hematology (ASH) Annual Meeting. Also accepted for presentation:
outcomes-based research on the burden of hospital readmissions for
venous thromboembolism among patients with cancer (oral) and two
poster presentations on andexanet alfa.
Conference Call DetailsPortola
will host a conference call today, Wednesday, November 7,
2018, at 4:30 p.m. ET, during which time management will
discuss the third quarter 2018 financial results, updates on the
U.S. launches of Andexxa and Bevyxxa, and other matters. The live
call can be accessed by phone by dialing (844) 452-6828
from the U.S. and Canada or 1 (765) 507-2588
internationally and using the passcode 3387315. The webcast can be
accessed live on the Investor Relations section of the Company's
website at http://investors.portola.com. It will be archived
for 30 days following the call.
Unaudited Condensed Consolidated Statements of
Operations |
(In thousands, except share and per share
data) |
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Product
revenue, net |
|
$ |
7,176 |
|
|
$ — |
|
|
$ |
10,047 |
|
|
$ — |
|
Collaboration and license revenue |
|
7,001 |
|
|
3,828 |
|
|
14,785 |
|
|
12,743 |
|
Total
revenues |
|
14,177 |
|
|
3,828 |
|
|
24,832 |
|
|
12,743 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
Sales |
|
4,292 |
|
|
155 |
|
|
5,680 |
|
|
155 |
|
Research
and development |
|
40,237 |
|
|
55,273 |
|
|
166,744 |
|
|
135,210 |
|
Selling,
general and administrative |
|
38,792 |
|
|
28,856 |
|
|
110,547 |
|
|
64,206 |
|
Total
operating expenses |
|
83,321 |
|
|
84,284 |
|
|
282,971 |
|
|
199,571 |
|
Loss
from operations |
|
(69,144 |
) |
|
(80,456 |
) |
|
(258,139 |
) |
|
(186,828 |
) |
Interest
and other income, net |
|
3,924 |
|
|
663 |
|
|
9,123 |
|
|
952 |
|
Interest
expense |
|
(5,957 |
) |
|
(3,148 |
) |
|
(12,642 |
) |
|
(8,243 |
) |
Net
loss |
|
(71,177 |
) |
|
(82,941 |
) |
|
(261,658 |
) |
|
(194,119 |
) |
Net
(income) loss attributable to noncontrolling interest (SRX
Cardio) |
|
(126 |
) |
|
5 |
|
|
(17 |
) |
|
(190 |
) |
Net loss attributable to
Portola |
|
$ |
(71,303 |
) |
|
$ |
(82,936 |
) |
|
$ |
(261,675 |
) |
|
$ |
(194,309 |
) |
Net loss
per share attributable to Portola common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted |
|
$ |
(1.08 |
) |
|
$ |
(1.41 |
) |
|
$ |
(3.97 |
) |
|
$ |
(3.38 |
) |
Shares
used to compute net loss per share attributable to Portola common
stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted |
|
66,165,104 |
|
|
58,940,764 |
|
|
65,855,672 |
|
|
57,569,593 |
|
Unaudited Condensed Consolidated Balance Sheet
Data |
(In thousands) |
|
|
|
|
|
September 30, 2018 |
|
December 31, 2017 |
|
|
|
|
|
|
|
(Unaudited) |
|
|
Cash, cash equivalents
and investments |
$ |
380,865 |
|
$ |
534,233 |
Prepaid
research and development |
963 |
|
734 |
Prepaid
manufacturing |
4,071 |
|
2,333 |
Trade
and other receivables, net |
7,150 |
|
3,750 |
Unbilled
- collaboration and license revenue |
9,872 |
|
— |
Total
current assets |
403,692 |
|
477,923 |
Property
and equipment, net |
4,921 |
|
5,217 |
Intangible assets |
7,423 |
|
7,851 |
Prepaid
and other long-term assets |
20,788 |
|
9,609 |
Total
assets |
447,705 |
|
571,676 |
Accounts
payable |
15,163 |
|
9,304 |
Accrued
research and development |
16,675 |
|
44,973 |
Accrued
compensation and other liabilities |
17,490 |
|
15,078 |
Deferred
revenue (current portion and long-term) |
7,443 |
|
29,967 |
Current
portion of notes payable and long term debt |
9,395 |
|
— |
Total
current liabilities |
61,081 |
|
80,524 |
Notes
payable, less current portion |
49,074 |
|
50,565 |
Long
term debt, less current portion |
152,675 |
|
54,251 |
Long
term obligation to collaborator, less current portion |
7,204 |
|
8,000 |
Total
liabilities |
280,777 |
|
222,183 |
Total
Portola stockholders’ equity |
164,424 |
|
346,866 |
Noncontrolling interest (SRX Cardio) |
2,504 |
|
2,627 |
Total
stockholders’ equity |
166,928 |
|
349,493 |
Total
liabilities and stockholders’ equity |
447,705 |
|
571,676 |
About Portola Pharmaceuticals,
Inc.Portola Pharmaceuticals is a commercial-stage
biopharmaceutical company focused on the discovery, development and
commercialization of novel therapeutics that could significantly
advance the fields of thrombosis and other hematologic diseases.
The Company’s two FDA-approved medicines are
Andexxa® [coagulation factor Xa (recombinant),
inactivated-zhzo], the first and only antidote for patients treated
with rivaroxaban and apixaban when reversal of anticoagulation is
needed due to life-threatening or uncontrolled bleeding, and
Bevyxxa® (betrixaban), the first and only oral, once-daily
Factor Xa inhibitor for the prevention of VTE in adult patients
hospitalized for an acute medical illness. The company also is
advancing cerdulatinib, a Syk/JAK inhibitor for the treatment of
hematologic cancers.
Forward-Looking
StatementsStatements contained in this press release
regarding matters that are not historical facts are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Because such statements
are subject to risks and uncertainties, actual results may differ
materially from those expressed or implied by such forward-looking
statements. Such statements include, but are not limited to, the
statements under the caption “Upcoming Milestones,” and those
regarding 2018 financial guidance and potential regulatory
approvals. Risks that contribute to the uncertain nature of the
forward-looking statements include: the risk that physicians,
patients and payers may not see the benefits of utilizing Andexxa
or Bevyxxa for the indications which they are approved; our ability
to continue to manufacture our products and to expand approved
manufacturing facilities; the possibility of unfavorable results
from additional clinical trials involving Andexxa; the risk that
the EMA may not approve Andexxa in the currently anticipated
timelines or at all, and that any marketing approvals or
reimbursement limitations may have significant limitations on its
use; the risk that Portola may not obtain additional regulatory
approvals necessary to expand approved indications for Andexxa; our
expectation that we will incur losses for the foreseeable future
and will need additional funds to finance our operations; the
accuracy of our estimates regarding expenses and capital
requirements; our ability to successfully build a hospital-based
sales force and commercial infrastructure; our ability to obtain
and maintain intellectual property protection for our product
candidates; and our ability to retain key scientific or management
personnel. These and other risks and uncertainties are described
more fully in our most recent filings with the Securities and
Exchange Commission, including our most recent quarterly report on
Form 10-Q. All forward-looking statements contained in this press
release speak only as of the date on which they were made. We
undertake no obligation to update such statements to reflect events
that occur or circumstances that exist after the date on which they
were made.
Investor
Contact: |
Media
Contact: |
Cara Miller |
Patrick Ryan |
Portola
Pharmaceuticals |
Pure
Communications |
ir@portola.com |
pryan@purecommunications.com |
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