Comparison of the Years Ended December 31,
2018 and 2017
The following table summarizes our cash
flows for the years ended December 31, 2018 and 2017:
||For the Years Ended
|in CHF thousands
|Net cash provided by (used in):
|Net change in cash and cash equivalents
The net cash used in operating activities
was CHF 44.1 million for the year ended December 31, 2018, compared to net cash used in operating activities of CHF 22.1 million
for the year ended December 31, 2017. The change in operating cash flows is driven by two factors: (i) reporting a net loss
of CHF 50.9 million in 2018 compared with a CHF 26.4 million net loss for 2017 and (ii) offsets due to changes in working
Net cash used in investing activities was
CHF 32.0 million for the year ended December 31, 2018, compared with CHF 1.8 million for the year ended December 31,
2017. The CHF 30.2 million increase in cash used in investing activities was due to a CHF 30 million increase in fixed-term
deposits with a maturities of six to 12 months.
Net cash provided by financing activities
was CHF 109.4 million for the year ended December 31, 2018, compared to CHF 0.3 million for the year ended December 31,
2017. The increase in financing activity cash inflows was driven primarily by the CHF 109.5 million in net proceeds raised from
the three follow-on offerings in 2018 compared to no such activity in 2017.
Operating Capital Requirements and Plan of Operations
We do not expect to generate revenues from
royalties based on product sales unless and until our partners obtain regulatory approval of and commercialize our current or any
future product candidates. There can be no certainty as to the exact timing, or in fact whether any future milestone payments will
ever be made given that these milestone payments are contingent on clear milestones being reached. As of December 31, 2018
we had cash balances totaling CHF 156.5 million, short-term financial assets totaling CHF 30.0 million which combined to total
CHF 186.5 million in liquidity. To date, the Company has financed its liquidity requirements primarily from its initial public
offering, share issuances and revenues from collaboration agreements.
Accordingly, assuming we do not receive
further milestone payments and based on our currently contemplated research and development strategy and expenditures, we believe
that our existing capital resources, not including potential milestone payments, will be sufficient to meet our projected operating
requirements through at least the third quarter of 2023.
We expect to generate losses for the foreseeable
future, and these losses could increase as we continue product development and if we successfully achieve regulatory approvals
for our product candidates and begin to commercialize any approved products. We are subject to all the risks pertinent to the development
of new products, and we may encounter unforeseen expenses, difficulties, complications, delays and other unknown factors that may
harm our business. Upon closing of the IPO, we incurred additional costs associated with operating a public company and we anticipate
that we will need substantial additional funding in connection with our continuing operations.