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8-K - 8-K - Adamas Pharmaceuticals Inca14-12749_18k.htm

Exhibit 99.1

 

ADAMAS REPORTS FIRST QUARTER 2014 FINANCIAL RESULTS

 

EMERYVILLE, Calif., May 13, 2014 — Adamas Pharmaceuticals, Inc. (Nasdaq: ADMS) today reported financial results for the quarter ended March 31, 2014.

 

“During the first quarter we continued to develop our lead wholly-owned product candidate, ADS-5102, for the treatment of levodopa-induced dyskinesia in patients with Parkinson’s disease, and we are now poised to commence our next Phase 3 trial,” said Gregory T. Went, PhD., Chairman and Chief Executive Officer of Adamas. “We also completed our initial public offering further increasing our financial resources and providing the funds to advance ADS-5102 across multiple additional indications.”

 

For the quarters ended March 31, 2014, and March 31, 2013, Adamas reported total revenues of $176,000 and $30.6 million, respectively. Revenues recognized were from upfront and development milestone payments from the Adamas’ collaboration with Forest Laboratories, Inc. and government grants and contracts.

 

Research and development expenses for the quarter ended March 31, 2014, were $2.8 million, including $0.4 million in stock-based compensation expense, compared to $2.1 million for the quarter ended March 31, 2013, including $49,000 in stock-based compensation expense. The increase was primarily related to investments in the ADS-5102 clinical program.

 

General and administrative expenses for the quarter ended March 31, 2014, were $3.1 million, including $0.6 million in stock-based compensation expense, compared to $1.1 million for the quarter ended March 31, 2013, including $71,000 in stock-based compensation expense. The increase was due primarily to headcount-related costs, including stock-based compensation, and consulting costs in anticipation of Adamas’ initial public offering.

 

Adamas reported a net loss attributable to common stockholders of $6.4 million, or $0.67 per share on a fully diluted basis, for the quarter ended March 31, 2014. In the same period last year, the company reported net income attributable to common stockholders of $18.4 million, or $1.70 per share on a fully diluted basis. The difference between the two periods was primarily the result of the recognition of revenue associated with the collaboration with Forest.

 

Adamas had $79.8 million in cash and cash equivalents as of March 31, 2014, compared to $85.6 million at December 31, 2013. Subsequently, on April 15, 2014, Adamas completed its initial public offering of 3,000,000 shares of its common stock at a public offering price of $16.00 per share. The shares began trading under the ticker symbol “ADMS” on April 10, 2014. Adamas also issued an additional 81,371 shares on May 6, 2014, pursuant to the over-allotment option granted to the underwriters. Net proceeds from the offering were approximately $42.7 million after deducting underwriting discounts and commissions and estimated offering expenses.

 

About Adamas

 

Adamas Pharmaceuticals, Inc. is a specialty pharmaceutical company driven to improve the lives of those affected by chronic disorders of the central nervous system (CNS). The company achieves this by modifying the pharmacokinetic profiles of approved drugs to create novel therapeutics for use alone and in fixed-dose combination products. Adamas’ lead wholly-owned product candidate, ADS-5102, is being developed for a complication of Parkinson’s disease (PD) known as levodopa-induced dyskinesia (LID), and as a treatment for chronic behavioral symptoms associated with traumatic brain injury (TBI). The company’s portfolio also includes an NDA-submitted fixed-dose combination product candidate, MDX-8704, being co-developed with Forest Laboratories, Inc. and an approved controlled-release product Namenda XR®, which Forest developed and is marketing in the United States under an exclusive license from Adamas. For more information about Adamas, please visit www.adamaspharma.com.

 

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. Words such as “may”, “will”, “expect”, “anticipate”, “estimate”, “intend”, “poised” and similar expressions (as well as other words or expressions referencing future events, conditions, or circumstances) are intended to identify forward-looking statements. Such statements contained in this press release include expectations regarding the timing of any commencement of a Phase 3 registration study for ADS-5102 in levodopa-induced dyskinesia and the potential advancement of ADS-5102 in additional indications. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in forward-looking statements, as well as risks relating to Adamas’ business in general, see Adamas’ prospectus dated April 9, 2014, filed with the Securities and Exchange Commission.

 

Namenda XR® and Namenda® are registered trademarks of Merz Pharma GmbH & Co. KGaA.

 

For questions, please contact:

 

Julie Wood

Investor Relations & Corporate Communications

Adamas Pharmaceuticals, Inc.
Phone: 510-450-3528

 

— Financial Tables Attached —

 

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Adamas Pharmaceuticals, Inc.

Unaudited Condensed Consolidated Statements of Operations Data

(in thousands, except per share data)

 

 

 

Three Months Ended
March 31,

 

 

 

2014

 

2013

 

 

 

 

 

 

 

Revenue

 

$

176

 

$

30,583

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

Research and development

 

2,758

 

2,078

 

General and administrative

 

3,109

 

1,120

 

Total operating expenses

 

5,867

 

3,198

 

Income (loss) from operations

 

(5,691

)

27,385

 

Other income (expense), net

 

(688

)

(421

)

Income (loss) before income taxes

 

(6,379

)

26,964

 

Income tax expense

 

(1

)

(195

)

Net income (loss)

 

$

(6,380

)

$

26,769

 

 

 

 

 

 

 

Net income (loss) attributable to common stockholders

 

 

 

 

 

Basic

 

$

(6,380

)

$

17,642

 

Diluted

 

$

(6,380

)

$

18,378

 

 

 

 

 

 

 

Net income (loss) per share attributable to common stockholders

 

 

 

 

 

Basic

 

$

(0.67

)

$

1.86

 

Diluted

 

$

(0.67

)

$

1.70

 

 

 

 

 

 

 

Weighted average number of shares used in computing net income (loss) attributable to common stockholders

 

 

 

 

 

Basic

 

9,525

 

9,496

 

Diluted

 

9,525

 

10,798

 

 

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Adamas Pharmaceuticals, Inc.

Unaudited Condensed Consolidated Balance Sheet Data

(in thousands, except per share data)

 

 

 

March 31,
2014

 

December 31,
2013

 

 

 

 

 

 

 

Assets

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

$

79,799

 

$

85,612

 

Accounts receivable, net

 

251

 

129

 

Prepaid expenses and other current assets

 

542

 

267

 

Total current assets

 

80,592

 

86,008

 

Property and equipment, net

 

254

 

199

 

Deferred offering costs and other assets

 

1,949

 

9

 

Total assets

 

$

82,795

 

$

86,216

 

Liabilities, convertible preferred stock and stockholders’ equity

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

 

$

1,985

 

$

2,097

 

Accrued liabilities

 

2,430

 

2,119

 

Other current liabilities

 

4

 

2

 

Total current liabilities

 

4,419

 

4,218

 

Warrant liability

 

4,020

 

6,232

 

Deferred revenue and other liabilities

 

11

 

12

 

Total liabilities

 

8,450

 

10,462

 

 

 

 

 

 

 

Convertible preferred stock

 

23,013

 

19,149

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

Common stock

 

14

 

14

 

Additional paid-in capital

 

78,270

 

77,163

 

Accumulated deficit

 

(26,952

)

(20,572

)

Total stockholders’ equity

 

51,332

 

56,605

 

Total liabilities, convertible preferred stock and stockholders’ equity

 

$

82,795

 

$

86,216

 

 

###

 

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