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Portola Pharmaceuticals Reports Fourth Quarter and Full Year 2018 Financial Results and Provides Corporate Update
– Fourth Quarter Andexxa® Revenues of $14.0 Million; Third Consecutive Quarter of Strong Revenues –
– Received Positive CHMP Opinion on Ondexxya™; European Commission Decision Anticipated in Early May –
– Conference Call Today at
“Today’s positive opinion on Ondexxya™ from the Committee for Medicinal Products for Human Use (CHMP) builds upon the momentum established in 2018, which included the
- Total revenues for the fourth quarter of 2018 were $15.3 million, compared with $9.8 million for the fourth quarter of 2017. This includes $14.0 million in net product revenues from Andexxa sales,
$35 thousandin revenues from Bevyxxa® sales and $1.2 million in collaboration and license revenues. Total revenues for the full year 2018 were $40.1 million, compared with $22.5 millionfor the full year 2017. Please see the tables at the end of this press release for a detailed breakdown of revenues.
- Net loss attributable to Portola, according to generally accepted accounting principles in the U.S. (GAAP), was $88.5 million for the fourth quarter of 2018, or $1.34 net loss per share, compared with a net loss of $91.8 million, or $1.41 net loss per share, for the same period in 2017. Net loss for the full year 2018 was $350.2 million, or $5.31 net loss per share, compared with a net loss of $286.1 million, or
$4.81 net loss per share, for the full year 2017. This includes the effect of two charges taken in the fourth quarter of 2018 related to the FDAapproval for the Company’s Gen 2 manufacturing process. The first is a $9.2 millioncharge associated with the valuation of the Company equity that will be issued to Lonza, our Andexxa Gen 2 manufacturer (“manufacturing site charge”), and the second is a $10.3 millioncharge associated with the Andexxa Gen 1 product as hospitals transition to the Gen 2 product (“Gen 1 supply charge”).
- Non-GAAP net loss for the fourth quarter of 2018 was
$69.0 million, or a non-GAAP basic and diluted loss per share of $1.04. For the full year 2018, non-GAAP net loss was $330.7 million, or non-GAAP basic and diluted loss per share of $5.01. Non-GAAP net loss and loss per share have been adjusted to remove the manufacturing site charge and the Gen 1 supply charge. Please see the reconciliation of GAAP to non-GAAP financial measures at the end of this release for more details.
- Cash, cash equivalents and investments at December 31, 2018 totaled $317.0 million, compared with $534.2 million as of December 31, 2017.
- Total operating expenses for the fourth quarter of 2018 were $102.5 million, compared with $95.7 million for the same period in 2017. Total operating expenses for the full year 2018 were $385.5 million, compared with $295.2 million for the full year 2017. This year-over-year increase was driven by the Company’s Gen 2 manufacturing expenses, the build-out of the Company’s field force, as well as the two charges outlined above in the fourth quarter.
- Non-GAAP total operating expenses, which excludes the two charges outlined above, were
$83.0 millionfor the fourth quarter of 2018, and $365.9 millionfor the full year 2018. Please see the reconciliation of GAAP to non-GAAP financial measures table at the end of this release for more details.
- Stock-based compensation expense for the fourth quarter of 2018 was $19.8 million, compared with $10.9 million for the same period in 2017. Stock-based compensation expense for the full year 2018 was $55.4 million, compared with $43.3 million for the full year 2017. This year-over-year increase was driven mainly by the manufacturing site charge.
- Cost of Sales (COS) for the fourth quarter of 2018 were
$12.4 million, compared to $260 thousandfor the same period in 2017. COS for the full year 2018 were $18.1 million, compared to $415 thousandfor the same period in 2017. This year-over-year increase was driven by the launches of Andexxa and Bevyxxa, and the Gen 1 supply charge.
- Research and development (R&D) expenses were $49.5 million for the fourth quarter of 2018, compared with $68.5 million for the fourth quarter of 2017. The decrease was driven primarily by the timing of manufacturing costs for Andexxa Gen 2 campaigns. R&D expenses were $216.2 million for the full year 2018, compared with $203.7 million for the full year 2017. This year-over-year increase was driven by expenses related to Andexxa Gen 2 manufacturing.
- Selling, general and administrative (SG&A) expenses for the fourth quarter of 2018 were $40.6 million, compared with $26.9 million for the same period in 2017. SG&A expenses for the full year 2018 were $151.2 million, compared with $91.1 million for the full year 2017. These increases were driven by the hiring of the Company’s field force to support the launches of Andexxa and Bevyxxa.
2019 Annual Financial Guidance
For the fiscal year 2019, Portola expects total R&D expenses to be between $125 million and
Recent Achievements and Events
- Received positive opinion on Ondexxya from CHMP.
$125 millionloan agreement with HealthCare Royalty Partners and Athyrium Capital Management.
- Published full ANNEXA-4 study results in
The New England Journal of Medicinefollowing presentation of results at the International Stroke Conference(ISC) 2019.
- Appointed 30+-year industry veteran Sheldon Koenig as chief commercial officer.
- Completed cerdulatinib end-of-phase-2 meeting, which provided guidance on regulatory pathway for a peripheral T-cell lymphoma (PTCL) registrational study that is anticipated to begin by year-end.
- Initiated broad U.S. launch of Andexxa following
FDAapproval of Gen 2 supply, and expanded sales force by approximately 40 representatives.
- Anticipated receipt of C-code from The Centers for Medicare & Medicaid Services, allowing hospitals an additional reimbursement pathway for Andexxa.
European Commissiondecision on the marketing authorization application for Ondexxya expected in early May 2019.
- Initiate discussions with the
FDAon a number of potential label expansion opportunities including the addition of the ANNEXA-4 efficacy data, the inclusion of edoxaban and enoxaparin, and the potential initiation of a study in urgent surgery.
Conference Call Details
Portola will host a conference call today, Friday, March 1, 2019, at 8:30 a.m. ET, during which time management will discuss the fourth quarter and full year 2018 financial results, updates on the U.S. launch of Andexxa, and other matters. The live call can be accessed by phone by dialing (844) 452-6828 from the U.S. and Canada or 1 (765) 507-2588 internationally and using the passcode 6999805. The webcast can be accessed live on the Investor Relations section of the Company's website at http://investors.portola.com. It will be archived for 30 days following the call.
Use of Non-GAAP Financial Measures
This press release and the reconciliation table included herein include non-GAAP net loss, non-GAAP basic and diluted loss per share and non-GAAP operating expenses. The Company believes the presentation of non-GAAP financial measures provides useful information to management and investors regarding the company’s financial condition and results of operations. When viewed in conjunction with GAAP financial measures, investors are provided with a more meaningful understanding of the Company’s ongoing operating performance and are better able to compare the Company’s performance between periods. In addition, these non-GAAP financial measures are among those that the Company uses as a basis for evaluating performance, allocating resources and planning and forecasting future periods. Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is provided in the accompanying table entitled "Reconciliation of GAAP to Non-GAAP Financial Measures."
Reconciliation of GAAP to Non-GAAP Financial Measures
|Three Months Ended December 31, 2018||Twelve Months Ended December 31, 2018|
|(In thousands, except per share data)||GAAP
|Non-GAAP Adjustments||Non-GAAP Amount||(In thousands, except per share data)||GAAP
|Non-GAAP Adjustments||Non-GAAP Amount|
|Product revenue, net||$||14,070||-||$||14,070||Product revenue, net||$||24,117||-||$||24,117|
|Collaboration and license revenue||1,228||-||1,228||Collaboration and license revenue||16,013||-||16,013|
|Total revenues||15,298||-||15,298||Total revenues||40,130||-||40,130|
|Cost of sales||12,401||(10,311||)||2,090||Cost of sales||18,081||(10,311||)||7,770|
|Research and development||49,461||(9,201||)||40,260||Research and development||216,205||(9,201||)||207,004|
|Selling, general and administrative||40,617||-||40,617||Selling, general and administrative||151,164||-||151,164|
|Total operating expenses||102,479||(19,511||)||82,968||Total operating expenses||385,450||(19,511||)||365,939|
|Net loss attributable to Portola||$||(88,548||)||19,511||$||(69,037||)||Net loss attributable to Portola||$||(350,223||)||19,511||$||(330,712||)|
|Net loss per share (basic/diluted)||$||(1.33||)||$||0.29||$||(1.04||)||Net loss per share (basic/diluted)||$||(5.31||)||$||0.30||$||(5.01||)|
|Shares used to compute loss per share||66,497,034||66,497,034||Shares used to compute loss per share||66,017,330||66,017,330|
|Notes: Non-GAAP adjustments consist of: (1) A $9.2 million charge associated with the valuation of the Company equity that will be issued to Lonza, our Andexxa Gen 2 manufacturer, and (2) a $10.3 million charge associated with our Andexxa Gen 1 product as we transition hospitals to Gen 2 product, following approval on December 31, 2018.|
|Unaudited Condensed Consolidated Statements of Operations|
|(In thousands, except share and per share data)|
|Three Months Ended December 31,||Twelve Months Ended December 31,|
|Product revenue, net||$||14,070||$ —||$||24,117||$ —|
|Collaboration and license revenue||1,228||9,803||16,013||22,546|
|Cost of Sales||12,401||260||18,081||415|
|Research and development||49,461||68,491||216,205||203,701|
|Selling, general and administrative||40,617||26,903||151,164||91,109|
|Total operating expenses||102,479||95,654||385,450||295,225|
|Loss from operations||(87,181||)||(85,851||)||(345,320||)||(272,679||)|
|Interest and other income (expense), net||4,393||(2,290||)||13,516||(1,338||)|
|Net (income) loss attributable to noncontrolling interest (SRX Cardio)||338||(280||)||321||(470||)|
|Net loss attributable to Portola||$||(88,548||)||$||(91,781||)||$||(350,223||)||$||(286,090||)|
|Net loss per share attributable to Portola common stockholders:|
|Basic and diluted||$||(1.34||)||$||(1.41||)||$||(5.31||)||$||(4.81||)|
|Shares used to compute net loss per share attributable to Portola common stockholders:|
|Basic and diluted||66,497,034||65,260,653||66,017,330||59,508,156|
|Unaudited Condensed Consolidated Balance Sheet Data|
|December 31, 2018||December 31, 2017|
|Cash, cash equivalents and investments||$||316,964||$||534,233|
|Trade and other receivables, net||5,849||3,750|
|Unbilled - collaboration and license revenue||9,880||-|
|Prepaid expenses and other current assets||11,699||9,744|
|Total current assets||353,327||477,923|
|Property and equipment, net||5,236||5,217|
|Prepaid and other long-term assets||20,577||9,609|
|Accrued compensation and other liabilities||22,310||15,078|
|Accrued research and development||19,831||44,973|
|Deferred revenue (current portion and long-term)||6,335||29,967|
|Current portion of notes payable and long term debt||11,802||-|
|Total current liabilities||69,005||80,524|
|Notes payable, less current portion||48,298||50,565|
|Long term debt, less current portion||155,256||54,251|
|Long term obligation to collaborator, less current portion||6,881||8,000|
|Total Portola stockholders’ equity||88,401||346,866|
|Noncontrolling interest (SRX Cardio)||2,166||2,627|
|Total stockholders’ equity||90,567||349,493|
|Total liabilities and stockholders’ equity||386,419||571,676|
Portola Pharmaceuticals is a commercial-stage biopharmaceutical company focused on the discovery, development and commercialization of novel therapeutics that could significantly advance the fields of thrombosis and other hematologic diseases. The Company’s two FDA-approved medicines are Andexxa® [coagulation factor Xa (recombinant), inactivated-zhzo], the first and only antidote for patients treated with rivaroxaban or apixaban when reversal of anticoagulation is needed due to life-threatening or uncontrolled bleeding, and Bevyxxa® (betrixaban), the first and only oral, once-daily Factor Xa inhibitor for the prevention of VTE in adult patients hospitalized for an acute medical illness. The company also is advancing cerdulatinib, a Syk/JAK inhibitor for the treatment of hematologic cancers.
Statements contained in this press release regarding matters that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Such statements include, but are not limited to, our intention to conduct a broad commercial launch of Andexxa in