SEC Filings

S-1
AVEXIS, INC. filed this Form S-1 on 01/15/2016
Entire Document
 

Table of Contents

          Our future commercial revenue, if any, will be derived from sales of therapy products that we do not expect to be commercially available for several years, if at all. Accordingly, we will need to continue to rely on additional financing to achieve our business objectives. Adequate additional financing may not be available to us on acceptable terms, or at all. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the terms of these equity securities or this debt may restrict our ability to operate. Any future debt financing and equity financing, if available, may involve agreements that include, covenants limiting and restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures, entering into profit-sharing or other arrangements or declaring dividends. If we raise additional funds through collaborations, strategic alliances or marketing, distribution or licensing arrangements with third parties, we may be required to relinquish valuable rights to our technologies, future revenue streams, research programs or product candidates or to grant licenses on terms that may not be favorable to us.

Contractual Obligations, Commitments and Contingencies

          Our principal commitments consist of obligations under our clinical trial commitments, tax indemnification obligation, consulting fees and operating lease commitments. The following table summarizes these contractual obligations as of December 31, 2014:

Contractual Obligations
 
Total
 
Less Than
1 Year
 
1 to 3 Years
 
4 to 5 Years
 
More Than
5 Years
 

Milestone payments under ReGenX License

  $ 12,000,000 (1) $   $   $   $  

Clinical trial commitments(2)

    6,350,509     6,350,509              

Tax indemnification obligation

    4,080,500     4,080,500              

Consulting fees

    277,500     90,000     187,500          

Milestone payments under NCH License

    175,000(1)                  

Operating lease commitments

    127,751     54,002     73,749          

Total contractual obligations(3)

  $ 23,011,260   $ 10,575,011   $ 261,249   $   $  

(1)
Represents aggregate potential milestone obligation amounts. The actual amounts and timing of these payments are uncertain, as the payments are contingent upon future events.

(2)
Based on the anticipated timing of funding obligations under the NCH License.

(3)
Includes an aggregate of $12.2 million of potential milestone payments under the ReGenX License and NCH License, as described in footnote (1).

          The contractual obligations table does not include any potential royalty payments we may be required to make under our supply agreement because the amount and timing of when these payments will actually be made is uncertain and the payments are contingent upon the initiation and completion of future activities.

          In May 2015, we entered into the AskBio License for the use of AskBio's self-complementary AAV genome technology for the treatment of SMA in humans. See "— Licensing Agreements — Asklepios Biopharmaceutical, Inc." On July 31, 2015, we entered into a lease agreement, which expires in December 2020, for approximately 4,795 square feet of office space in Bannockburn,

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