SEC Filings

10-Q
AVEXIS, INC. filed this Form 10-Q on 11/09/2017
Entire Document
 

well as expenses related to the conclusion of our Phase 1 clinical trial of AVXS-101 in SMA Type 1 and the commencement of our pivotal trial of AVXS-101. More specifically, this amount included increases of $25.8 million in third-party clinical and manufacturing research and development expense associated with product manufacturing, $16.3 million in research and development supplies and materials, $8.8 million in salaries and personnel-related expenses, driven by increased headcount across all research and development and manufacturing functions, $6.1 million in other research and development expenses, and $5.9 million in license fees.

 

Interest Income

 

Interest income for the nine months ended September 30, 2017 consists of interest earned on our cash and cash equivalents and increased from the prior periods due to larger balances of cash and cash equivalents during those periods.

 

Liquidity and Capital Resources

 

Sources of Liquidity

 

To date, we have funded our research and development and operating activities primarily through equity financings, including $98.2 million, $149.1 million and $269.7 million of net proceeds from our initial public offering, our September 2016 public offering and our June 2017 public offering, respectively, and $80.5 million of aggregate net proceeds from private placements of stock prior to our initial public offering.

 

As of September 30, 2017, we had cash and cash equivalents of $374.2 million and had no debt outstanding.

 

Cash Flows

 

The following table provides information regarding our cash flows for the nine months ended September 30, 2017 and 2016 (in thousands):

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 

 

    

2017

    

2016

Net cash used in operating activities

 

$

(113,565)

 

$

(33,198)

Net cash used in investing activities

 

 

(23,364)

 

 

(11,702)

Net cash provided by financing activities

 

 

270,710

 

 

246,290

Net increase in cash and cash equivalents

 

$

133,781

 

$

201,390

 

Operating Activities

 

For the nine months ended September 30, 2017, our net cash used in operating activities of $113.6 million primarily consisted of a net loss of $136.4 million, primarily attributable to our spending on research and development, manufacturing and general and administrative expenses and $2.1 million in net cash used in changes in working capital items, which was partially offset by $24.9 million in adjustments for non-cash items, primarily stock-based compensation. The $2.6 million in net cash used in changes in working capital represents primarily a $5.6 million increase in prepaid expenses and other current assets and other long-term assets and a $3.1 million increase in accrued expenses and other current liabilities and the accrued indemnification obligation, partially offset by a $6.6 million decrease in accounts payable.  

 

For the nine months ended September 30, 2016, our net cash used in operating activities of $33.2 million consisted of a net loss of $57.6 million, primarily attributable to our spending on research and development and general and administrative expenses, which was partially offset by $22.7 million in adjustments for non-cash items and $1.7 million in net cash used in changes in working capital items. Adjustments for non-cash items primarily consisted of $22.7 million of stock-based compensation expense, of which $10.4 million was associated with the vesting in full of the restricted stock grant to Dr. Kaspar. The change in working capital was primarily attributable to a $3.7 million increase

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