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SEC Filings

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

 

  For the Three Months Ended
 

Dec. 31,

2017

 

Sep. 30,

2017

 

Jun. 30,

2017

 

Mar. 31,

2017

  (in CHF thousands, except per share data) (unaudited)
Revenue  
Contract revenue 16,422   1,074   753   2,006
Total revenue 16,422   1,074   753   2,006
               
Operating expenses              

Research and development expenses

(10,176)   (8,195)   (6,838)   (7,454)

General and administrative expenses

(3,058)   (2,519)   (2,168)   (2,386)
Total operating expenses (13,234)   (10,714)   (9,006)   (9,840)
Operating income/(loss) 3,188   (9,640)   (8,253)   (7,834)
Finance result, net 976   847   (4,074)   (1,621)
Income/(loss) before tax 4,164   (8,793)   (12,327)   (9,455)
Income tax expense -   -   -   -
Income/(loss) for the period 4,164   (8,793)   (12,327)   (9,455)
Net income/(loss) per share (EPS):              
Basic 0.07   (0.15)   (0.22)   (0.17)
Diluted 0.07   (0.15)   (0.22)   (0.17)

Weighted-average number of shares used to compute EPS:

Basic 57,266,088   57,164,145   57,048,187   56,855,987
Diluted 58,396,586   57,164,145   57,048,187   56,855,987

 

22.Post balance sheet events

 

On January 23, 2019, the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, expired with regard to our license agreement with Eli Lilly and Company (“Lilly”), which we signed in December 2018. Under the terms of the license agreement, the Company will conduct initial Phase 1 development of Tau Morphomer small molecules. Lilly will fund and lead further clinical development and will receive global commercialization rights for all indications, including Alzheimer’s disease and other neurodegenerative diseases. The Company will retain certain development rights in orphan indications and co-development and co-promotion options in certain indications outside Alzheimer’s disease.

 

The agreement also allows for potential development of indications in Progressive Supranuclear Palsy and an exclusive license to Lilly of certain intellectual property related to this program.

 

The Company received CHF 80 million as an upfront payment in February 2019. The agreement also includes various conditional clinical, regulatory and commercialization milestone payments. In addition, the Company will receive royalties on sales of licensed products.

 

The agreement will terminate on the date on which all obligations between the parties with respect to the last payment of royalties for licensed products have passed or expired. Subject to the terms in the agreement, Lilly may terminate the agreement with three months’ written notice to the Company.

 

We and Lilly also entered into a convertible note agreement in December 2018, which also became effective on January 23, 2019. As the convertible note was not effective as of December 31, 2018, there is no corresponding recognition in our financial statements. The Company received total consideration of USD 50.0 (CHF 50.3) million in January 2019. The convertible note is a senior unsecured obligation of the Company that bears interest at a rate of 0.75% per annum, which may be paid in cash or result in the accretion of the principal amount thereof, at our election. Subject to the terms and conditions set forth in the convertible note agreement, the convertible note will automatically convert into the Company’s common shares on the 90th day after the effective date of the license agreement, at a conversion price equal to USD 13.83 per share, which would convert into approximately 3.6 million of our common shares.

 

 F-38


© AC Immune 2015