SEC Filings

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

Table of Contents

    Research and Development

          Research and development expense increased from $10.2 million for the nine months ended September 30, 2014 to $18.8 million for the nine months ended September 30, 2015.

          Research and development expense for the nine months ended September 30, 2014 primarily consisted of a $2.0 million up-front license fee payment made to REGENXBIO for the exclusive use of its AAV9 vector for the gene therapy treatment of SMA in humans, $3.1 million in stock-based compensation expense and $4.1 million relating to a tax indemnification liability, both associated with a restricted stock grant made to a director in connection with scientific consulting services to be provided to us, $0.2 million of salaries and personnel-related costs, $0.2 million in consulting fees, $0.2 million in contracted third-party research and development spending on AVXS-101 and $0.2 million of expense associated with the issuance of shares of common stock to NCH under the terms of the NCH license agreement.

          Research and development expense for the nine months ended September 30, 2015 primarily consisted of $15.2 million in stock-based compensation associated with a restricted stock grant made to Dr. Kaspar in connection with a consulting arrangement and a stock warrant granted to a consultant in connection with scientific advisory services to be provided to us, in each case described in "— Stock-Based Compensation" above, $1.0 million up-front license fees paid to AskBio in connection with the AskBio license agreement, $0.5 million of expense associated with the issuance of shares of common stock to NCH under the terms of the NCH license agreement, a $0.3 million milestone payment under the REGENXBIO license, $0.6 million in contracted third-party research and development spending on AVXS-101, $0.6 million of salaries and personnel-related costs and $0.5 million in consulting fees.

          We anticipate our research and development costs will continue to increase over the next several years due to increased spending on the development of AVXS-101.

    Other income (expense)

          Interest expense for the nine months ended September 30, 2014 was $0.1 million, which primarily consists of a $0.1 million loss on extinguishment of debt related to the conversion of a $0.5 million note payable into shares of our Class B-1 preferred stock. Interest income for the nine months ended September 30, 2015 consists of interest earned on our cash and cash equivalents.

    Loss from Discontinued Operations

          On January 30, 2014, we sold our entire equity interest in BioLife Dallas back to BioLife Dallas in exchange for nominal consideration and resigned from our position as a director of BioLife Dallas. Additionally, we sold our entire equity interests in the two wholly-owned subsidiaries through which we previously owned the equipment and intellectual property assets necessary to conduct the stem cell business to an entity controlled by Dr. David Genecov, a former director of AveXis, for nominal consideration. As a result of these transactions, we exited the stem cell business and ceased consolidating the operations and cash flows of BioLife Dallas in our consolidated financial statements. This disposal is consistent with our long-term strategy to focus our activities on rare and life-threatening neurological genetic diseases.

          In connection with the above transactions, we recognized a loss from discontinued operations of $0.1 million during the nine months ended September 30, 2014. We had no corresponding results from discontinued operations for the nine months ended September 30, 2015.

96



© AveXis, Inc. All Rights Reserved.