AmpliPhi Biosciences Reports First Quarter 2018 Financial Results and Business Highlights

  • Announced positive topline results for the initial seven patients
    treated with AB-SA01 or AB-PA01 under ongoing expanded access program
    and presented detailed results for the first patient at a medical
    conference
  • Signed collaborative agreements with the U.S. Department of
    Veterans Affairs and the Westmead Hospital in Sydney
  • Completed two financings for combined gross proceeds of
    approximately $7.0 million
  • Targeting meeting with the FDA in mid-2018
  • Webcast/conference call begins at 4:30 p.m. EDT/1:30 p.m. PDT today

SAN DIEGO–(BUSINESS WIRE)–AmpliPhi Biosciences Corporation (NYSE American: 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, 2018.

“From the ongoing expanded access program, we are gathering initial
evidence of safety and efficacy of AB-SA01 and AB-PA01 in patients with
serious and life-threatening infections,” said Paul C. Grint, M.D., CEO
of AmpliPhi Biosciences. “We continue to target a meeting with the FDA
in mid-2018 to define a path forward to regulatory approval, with the
potential for us to initiate a Phase 2 or registrational clinical study
as early as the fourth quarter of 2018.”

Recent Business Highlights

  • Announced positive topline results for the initial seven patients
    treated with AB-SA01 or AB-PA01 under the ongoing single-patient
    expanded access program. Six of the seven patients (86%) achieved
    treatment success (physician’s assessment), defined as complete
    resolution or significant improvement of baseline signs and symptoms.
    All patients were severely ill with life-threatening infections and
    unresponsive to antibiotics at the time of treatment. Treatment was
    well tolerated in all patients, with over 500 doses administered
    intravenously or by inhalation.
  • Announced the presentation at the International Society of Heart and
    Lung Transplant Annual Meeting in April 2018, describing the case of a
    lung transplant recipient suffering from recurrent episodes of
    multidrug-resistant Pseudomonas aeruginosa pneumonia who
    received treatment with bacteriophage therapeutics, including AB-PA01.
    The patient clinically responded to bacteriophage and antibiotic
    therapy with resolution of pneumonia and improved respiratory status.
  • Signed a Cooperative Research and Development Agreement (CRADA) with
    the U.S. Department of Veterans Affairs and a collaboration with the
    Western Sydney Local Health District and the Westmead Institute for
    Medical Research covering expanded access to AB-SA01 and AB-PA01 for
    patients with serious and life-threatening infections unresponsive to
    antibiotics.
  • Completed a public offering of 4,000,000 shares of common stock in
    January 2018, at a price to the public of $1.00 per share, for gross
    proceeds of $4.0 million and a registered direct offering of common
    stock in March 2018, at a price of $1.10 per share, for gross proceeds
    of $3.0 million.

First Quarter 2018 Financial Results

  • Research and development (R&D) expenses for the first quarter of 2018
    and for the first quarter of 2017 were $1.5 million.
  • General and administrative (G&A) expenses were $1.6 million for the
    first quarter of 2018 compared to $1.9 million for the first quarter
    of 2017. The decrease was primarily due to lower legal and
    professional fees as well as a decrease in non-cash stock-based
    compensation.
  • Net cash used in operating activities for the three months ended March
    31, 2018 was $3.5 million compared to $3.3 million for the three
    months ended March 31, 2017.
  • Cash and cash equivalents as of March 31, 2018 totaled $8.2 million.
  • As of May 15, 2018, there were 16.5 million shares of common stock
    outstanding.

Conference Call and Webcast

AmpliPhi will hold a conference call today beginning at 4:30 p.m.
Eastern time (1:30 p.m. Pacific time). The conference call dial-in
number is (866) 652-5200 for domestic callers and (412) 317-6060 for
international callers, and the passcode is 10120002. A live webcast of
the call will be available on the Investor Relations section of www.ampliphibio.com.

A recording of the call will be available for 48 hours beginning
approximately two hours after the completion of the call by dialing
(877) 344-7529 for domestic callers and (412) 317-0088 for international
callers. Please use passcode 10120002 to access the recording. A webcast
replay will be available on the Investor Relations section of www.ampliphibio.com
for 30 days, beginning approximately two hours after the completion of
the call.

About AmpliPhi Biosciences

AmpliPhi Biosciences Corporation is a clinical-stage biotechnology
company focused on the development of precisely targeted bacteriophage
therapeutics for patients with serious and life-threatening
antibiotic-resistant bacterial infections. AmpliPhi’s lead product
candidates, AB-SA01 and AB-PA01, target multidrug-resistant Staphylococcus
aureus
and Pseudomonas aeruginosa, 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.

Forward-Looking Statements

Statements in this press release that are not statements of historical
fact are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements include, without limitation, statements regarding: AmpliPhi’s
targeted meeting with the FDA in mid-2018 and the expected benefits
therefrom, including obtaining feedback on the path to regulatory
approval; the potential initiation of a Phase 2 or registrational
clinical study as early as the fourth quarter of 2018; and the potential
benefits of phage therapy and the potential use of bacteriophages to
treat bacterial infections, including infections that do not respond to
antibiotics or are associated with biofilms. Words such as “believe,”
“anticipate,” “plan,” “expect,” “intend,” “will,” “may,” “goal,”
“potential” and similar expressions are intended to identify
forward-looking statements, though not all forward-looking statements
necessarily contain these identifying words. Among the factors that
could cause actual results to differ materially from those indicated in
these forward-looking statements are risks and uncertainties associated
with bacteriophage product candidate development, both generally and
specifically through expanded access regulations, AmpliPhi’s financial
condition, and other risks and uncertainties described in AmpliPhi’s
Annual Report on Form 10-K for the year ended December 31, 2017, as
filed with the Securities and Exchange Commission (SEC), and AmpliPhi’s
subsequent filings with the SEC. You are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the
date of this press release. All forward-looking statements are qualified
in their entirety by this cautionary statement, and AmpliPhi undertakes
no obligation to revise or update any forward-looking statements to
reflect events or circumstances after the date of this press release.

AmpliPhi Biosciences Corporation
Condensed Consolidated Balance Sheets
   
March 31, 2018 December 31, 2017
(Unaudited)
Assets
Cash and cash equivalents $ 8,206,000 $ 5,132,000
Prepaids and other current assets   537,000   253,000
Total current assets 8,743,000 5,385,000
Property and equipment, net 727,000 816,000
Intangible assets, net   4,929,000   4,937,000
Total assets $ 14,399,000 $ 11,138,000
 
Liabilities and stockholders’ equity
Total current liabilities $ 1,775,000 $ 1,968,000
Derivative liabilities 187,000 292,000
Deferred tax liability   1,147,000   1,147,000
Total liabilities 3,109,000 3,407,000
 
 
Stockholders’ equity   11,290,000   7,731,000
Total liabilities and stockholders’ equity $ 14,399,000 $ 11,138,000
 
AmpliPhi Biosciences Corporation
Condensed Consolidated Statements of Operations
   
Three Months Ended March 31,
  2018       2017  
(Unaudited) (Unaudited)
 
Revenue $ $ 29,000
Operating expenses:
Research and development 1,464,000 1,490,000
General and administrative   1,591,000     1,898,000  
Total operating expenses   3,055,000     3,388,000  
Loss from operations   (3,055,000 )   (3,359,000 )
Other income (expense):
Change in fair value of derivative liabilities (79,000 ) 114,000
Other expense, net       (1,000 )
Total other income (expense), net   (79,000 )   113,000  
Net loss $ (3,134,000 ) $ (3,246,000 )
Net loss per share, basic and diluted $ (0.24 ) $ (1.94 )
Weighted average shares outstanding, basic and diluted   13,298,159     1,677,497  
 
AmpliPhi Biosciences Corporation
Condensed Consolidated Statement of Cash Flows
   
Three Months Ended March 31,
  2018       2017  
(Unaudited) (Unaudited)
Operating activities:
Net loss $ (3,134,000 ) $ (3,246,000 )
Adjustments required to reconcile net loss to net cash used in
operating activities:
Change in fair value of derivative liabilities 79,000 (114,000 )
Stock-based compensation 122,000 171,000
Depreciation and amortization 97,000 93,000
Other non-cash adjustments, net 10,000
Changes in operating assets and liabilities, net   (700,000 )   (213,000 )
Net cash used in operating activities   (3,536,000 )   (3,299,000 )
Investing activities:
Purchases of property and equipment       (5,000 )
Net cash used in investing activities       (5,000 )
Financing activities:
Proceeds from sale of common stock, net of offering costs 6,409,000
Other financing activities   201,000     (205,000 )
Net cash provided by (used in) financing activities   6,610,000     (205,000 )
Net increase (decrease) in cash and cash equivalents 3,074,000 (3,509,000 )
Cash and cash equivalents, beginning of period   5,132,000     5,711,000  
Cash and cash equivalents, end of period $ 8,206,000   $ 2,202,000  

Contacts

At the Company:
Matthew Dansey
AmpliPhi Biosciences
(858)
800-4869
md@ampliphibio.com
or
Investor
Relations:

Robert H. Uhl
Westwicke Partners
(858)
356-5932
robert.uhl@westwicke.com