SEC Filings

10-K
AVEXIS, INC. filed this Form 10-K on 02/28/2018
Entire Document
 

Recent Accounting Pronouncements

See “Note 2. Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in “Item 8. Financial Statements and Supplementary Data” for a full description of recent accounting pronouncements including the respective expected dates of adoption and estimated effects, if any on our consolidated financial statements.

Results of Operations

Comparison of the Years Ended December 31, 2017 and 2016

The following table summarizes our results of operations for the years ended December 31, 2017 and 2016, together with the dollar increase or decrease in those items (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 

 

Period-to-Period

 

 

 

2017

 

2016

 

Change

Revenue

 

 

$

 —

 

$

 —

 

$

 —

Operating expenses:

 

 

 

  

 

 

  

 

 

  

General and administrative

 

 

 

69,976

 

 

24,523

 

 

45,453

Research and development

 

 

 

150,391

 

 

58,892

 

 

91,499

Total operating expenses

 

 

 

220,367

 

 

83,415

 

 

136,952

Loss from operations

 

 

 

(220,367)

 

 

(83,415)

 

 

(136,952)

Interest income

 

 

 

2,316

 

 

403

 

 

1,913

Loss before income taxes

 

 

 

(218,051)

 

 

(83,012)

 

 

(135,039)

Income tax expense

 

 

 

 —

 

 

 —

 

 

 —

Net loss

 

 

$

(218,051)

 

$

(83,012)

 

$

(135,039)

 

General and Administrative

General and administrative expense increased from $24.5 million for the year ended December 31, 2016 to $70.0 million for the year ended December 31, 2017. This increase was primarily attributable to increases of $11.6 million due to a loss we incurred on a non-cash common stock settlement, $10.0 million in salaries and personnel‑related costs driven by increased headcount across all general and administrative functions to support our overall growth, $9.5 million in pre-commercial marketing expenses, $5.9 million in non‑cash stock‑based compensation, $2.0 million in legal, professional and consulting fees and $6.5 million in other administrative costs. We anticipate our general and administrative costs will continue to increase over the next several years due to increased spending on the business operations and administrative support for the manufacturing and clinical development and potential launch of AVXS‑101 and our other product candidates.

Research and Development

Research and development expense increased from $58.9 million for the year ended December 31, 2016 to $150.4 million for the year ended December 31, 2017. The increase was primarily attributable to increases of $56.9 million in third‑party clinical and manufacturing research and development spending related to our clinical trial and clinical trial product manufacturing, $15.8 million in salaries and personnel‑related expenses driven by increased headcount across all research, development and manufacturing functions, $7.5 million in license fees and $11.3 million in other research and development expenses.

We anticipate our research and development costs will continue to increase over the next several years due to increased spending on the clinical development and manufacturing of our product candidates.

106


 


© AveXis, Inc. All Rights Reserved.