SEC Filings

S-1
AVEXIS, INC. filed this Form S-1 on 01/15/2016
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Table of Contents


AveXis, Inc.

Notes to Consolidated Financial Statements (Continued)

12. Stock-based Compensation (Continued)

in light of prevailing market conditions. Based on the above, the Company derived the fair value of its common stock to be $11.47 per share as of December 31, 2014.

    March 31, 2015 Valuation (unaudited)

          In order to estimate the value of the Company's common stock as of March 31, 2015, the Company determined the aggregate equity value of its business interpolating the implied equity value from the August 11, 2014 valuation (see above) and the $22.00 price per common share paid in an arms-length transaction between stockholders in May 2015. In deriving this value, consideration was given to significant events and developments between these two valuation dates, including the dosing of the second patient in the Phase 1 clinical trial in August 2014, the dosing of the third patient in the trial in September 2014, the receipt of Orphan Drug designation for AVXS-101 from the FDA in September 2014, the dosing of the fourth patient in the trial in December 2014, the dosing of the fifth patient in the trial in January 2015, the dosing of the sixth patient in the trial in February 2015, the submission of an application for Orphan Drug Designation to the European Medicines Agency, and the satisfaction of the Class C Milestone Event, which resulted in the sale of 799,236 Class C shares for $5,000,020 in March 2015. Additionally, the Company considered discussions with potential strategic acquirers of its business and the likelihood of achieving a liquidity event, such as an initial public offering, or a sale of the Company in light of prevailing market conditions. Based on the above, the Company derived the fair value of its common stock to be $16.52 per share as of March 31, 2015.

    June 30, 2015 Valuation (unaudited)

          In order to estimate the value of the Company's common stock as of June 30, 2015, the Company determined the aggregate equity value of its business utilizing the $22.00 price per common share paid in two separate arms-length transactions between stockholders in May and June of 2015. Additionally, the Company considered discussions with potential strategic acquirers of its business and the likelihood of achieving a liquidity event, such as an initial public offering, or IPO, or a sale of the Company in light of prevailing market conditions. Based on the above, the Company derived the fair value of its common stock to be $22.00 per share as of June 30, 2015.

    September 30, 2015 Valuation (unaudited)

          In order to estimate the value on the Company's common stock as of September 30, 2015, the Company determined the aggregate equity value of its business utilizing the $29.00 price per shares paid in September 2015 for Class D preferred stock. Given the arm's length nature and due diligence associated with the Class D preferred stock transaction, the Company considered this financing round to be a meaningful indicator of total equity value at the time of the financing. In deriving the value, consideration was given to the Class D financing, the Company's capital structure, and the outlook for a liquidity event (form and timing). The common stock was valued under two scenarios: (i) an IPO scenario, in which the Company completes an initial public offering in the near-term and (ii) a dissolution scenario, in which the Company experiences significant setbacks, either clinically or operationally or both, and is forced to liquidate its assets. The total equity value of the Company in the IPO scenario was implied based on the Class D preferred stock issuance price. Both scenarios are weighted based on expectations of future liquidity events and expressed in a single concluded per share value. A discount for lack of marketability was applied to

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