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AC IMMUNE SA filed this Form 20-F on 03/21/2019
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Comparison of the Years Ended December 31, 2018 and 2017




The following table summarizes our revenues during the years ended December 31, 2018 and 2017:


  For the Years Ended
December 31,
in CHF thousands 2018 2017 Change
Contract revenue 7,194 20,255 (13,061)
Total revenues 7,194 20,255 (13,061)


Our revenues experience fluctuations as a result of securing new collaboration agreements, the timing of milestone achievements and the size of each milestone payment. The decline in revenues in 2018 compared to the same period in 2017 is primarily related to the timing and size of clinical milestones recognized in each of those periods.


In 2018, the Company did not recognize milestone revenues from its contract agreements. We recorded an increase of CHF 0.9 million and CHF 0.1 million for our Janssen and Biogen collaborations, respectively. For Janssen, this relates to an increase in cost sharing activities for our advancement of ACI-35 in the development plan. The Company also recorded an increase of CHF 0.6 million in its collaboration with Essex as this collaboration was in effect for the entire year 2018.


In 2017, the Company recorded a CHF 14 million milestone for Genentech dosing the first patient in a Phase 2 clinical trial for Alzheimer’s disease (AD) with an anti-Tau monoclonal antibody known as RG6100. The Company also recorded a CHF 1.1 million milestone from Life Molecular related to the initiation of “Part B” of the first-in-man Phase 1 clinical trial for PSP (Progressive Supranuclear Palsy). Finally, in its collaboration with Biogen, AC Immune recognized CHF 0.5 million for the Technology Access Fee. These items were not repeated in 2018.


Research and Development Expenses


Research and development activities are essential to our business and represent the majority of our costs incurred. Costs for certain development activities, such as clinical trials, are recognized based on an evaluation of the progress to completion of specific tasks using information from the clinical sites and our vendors. Our collaboration arrangements share costs for the development of our product candidates differently. We have completed our research and development spending in both of our Genentech collaborations. Janssen will be responsible for the full development cost from the completion of the first Phase 2 or first Phase 3 clinical trial. In addition to these arrangements, we expect that our total future research and development costs will continue to increase over current levels in line with our three-pillar strategy that focuses on Alzheimer`s disease, neuro-orphan indications and diagnostics.


The table below provides a breakdown of our research and development costs, including direct research and development costs and manufacturing costs related to research and development, by major development categories of our programs for the periods covered by this Annual Report. The research and development costs not allocated to specific programs include employment costs, regulatory, quality assurance and intellectual property costs. We do not assign our internal costs, such as salary and benefits, stock-based compensation expense, laboratory supplies and other direct expenses and infrastructure costs to individual research and development projects, because the employees within our research and development groups typically are deployed across multiple research and development programs.



© AC Immune 2015