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SEC Filings

20-F
AC IMMUNE SA filed this Form 20-F on 03/21/2019
Entire Document
 

 

Cash Flows

 

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
December 31, 
 
in CHF thousands 2018   2017   Change
Net cash provided by (used in):          
Operating activities (44,078)   (22,094)   (21,984)
Investing activities (32,036)   (1,842)   (30,194)
Financing activities 109,378    271   109,107
Net change in cash and cash equivalents 33,264    (23,665)   56,929

 

Operating activities

 

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 capital.

 

Investing activities

 

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.

 

Financing activities

 

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.

 

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© AC Immune 2015