BioCryst Pharmaceuticals Inc.
May 4, 2017
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BioCryst Reports First Quarter 2017 Financial Results

RESEARCH TRIANGLE PARK, N.C., May 04, 2017 (GLOBE NEWSWIRE) -- BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) announced today financial results for the first quarter ended March 31, 2017.

"We have completed enrollment in Part 1 and 2 of the APeX-1 Phase 2 clinical trial of BCX7353 for prevention of angioedema attacks and will report top-line data in the second quarter of 2017 as planned," said Jon P. Stonehouse, President & Chief Executive Officer.  "Enrollment in Part 3 has begun, and at the current enrollment pace, we expect to report complete APeX-1 results in the third quarter of 2017." 

First Quarter Financial Results

For the three months ended March 31, 2017, revenues increased to $9.4 million from $4.8 million in the first quarter of 2016.  The increase in revenue was primarily due to a $4.4 million increase in royalty revenue from Shionogi & Co. Ltd., Green Cross Corporation and Seqirus, and a $2.0 million milestone payment associated with the Canadian regulatory approval of RAPIVAB®.  The increase in royalty revenue was largely the result of continued Japanese Government stockpiling of RAPIACTA®.  Future government stockpiling orders are difficult to predict, as they are subject to the relevant appropriation and stockpiling processes.  These revenue increases were somewhat offset by a decrease in galidesivir collaboration revenue under U.S. Government development contracts.  

Research and Development expenses for the first quarter of 2017 decreased to $16.8 million from $20.6 million in the first quarter of 2016, following the termination of avoralstat development for the treatment of hereditary angioedema (HAE) and, to a lesser extent, a decrease in galidesivir expenses under U.S. Government development contracts. 

General and administrative (G&A) expenses for the first quarter of 2017 of $3.1 million were in line with $3.2 million of G&A expense in the first quarter of 2016. 

Interest expense was $2.1 million in the first quarter of 2017 as compared to $1.5 million in the first quarter of 2016, an increase related primarily to the September 2016 closing of a $23 million senior credit facility.  Also, a $1.5 million mark-to-market loss on the Company's foreign currency hedge was recognized in the first quarter of 2017, as compared to a $2.8 million mark-to-market loss in the first quarter of 2016.  These losses result from periodic changes in the U.S. dollar/Japanese yen exchange rate and the related mark-to-market valuation of our underlying hedge arrangement.

The net loss for the first quarter of 2017 was $14.2 million, or $0.19 per share, compared to a net loss of $22.8 million, or $0.31 per share, for the first quarter 2016. 

Cash, cash equivalents and investments totaled $105.3 million at March 31, 2017, and reflect an increase from $65.1 million at December 31, 2016.  Net operating cash use for the first quarter of 2017 was $11.4 million, and excludes the impact of $47.8 million of net proceeds from our March 2017 public offering.

Clinical Development Update & Outlook

Financial Outlook for 2017 

Based upon development plans and our awarded government contracts, BioCryst expects its 2017 net operating cash use to be in the range of $30 to $50 million, and its 2017 operating expenses to be in the range of $53 to $73 million.  Our operating expense range excludes equity-based compensation expense due to the difficulty in reliably projecting this expense, as it is impacted by the volatility and price of the Company's stock, as well as by the vesting of the Company's outstanding performance-based stock options.

Conference Call and Webcast

BioCryst's leadership team will host a conference call and webcast Thursday, May 4, 2017 at 11:00 a.m. Eastern Time to discuss these financial results and recent corporate developments.  To participate in the conference call, please dial 1-877-303-8027 (United States) or 1-760-536-5165 (International).  No passcode is needed for the call.  The webcast can be accessed by logging onto www.BioCryst.com.  Please connect to the website at least 15 minutes prior to the start of the conference call to ensure adequate time for any software download that may be necessary.

About APeX-1

APeX-1 is a Phase 2, randomized, double-blind, placebo-controlled, dose ranging trial to evaluate the safety, tolerability, pharmacokinetics, pharmacodynamics and efficacy of BCX7353 as a preventative treatment to eliminate or reduce the frequency of angioedema attacks in HAE patients. APeX-1 has three component parts evaluating 28 days of dosing with BCX7353 versus placebo. Part 1 evaluated a dose of 350 mg once daily.  Part 2 will evaluate 250 mg and 125 mg doses once daily and Part 3 will further evaluate 250 mg and 125 mg versus 62.5 mg once daily.  The clinical trial is being conducted in several European countries, Australia and Canada.

About BioCryst Pharmaceuticals

BioCryst Pharmaceuticals designs, optimizes and develops novel small molecule drugs that block key enzymes involved in rare diseases. BioCryst has several ongoing development programs: BCX7353 and other second generation oral inhibitors of plasma kallikrein for hereditary angioedema, and galidesivir, a broad spectrum viral RNA polymerase inhibitor that is a potential treatment for filoviruses. RAPIVAB® (peramivir injection), a viral neuraminidase inhibitor for the treatment of influenza, is BioCryst's first approved product and has received regulatory approval in the U.S., Canada, Japan, Taiwan and Korea. Post-marketing commitment development activities for RAPIVAB are ongoing, as well as activities to support regulatory approvals in other territories. For more information, please visit the Company's website at www.BioCryst.com.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding future results, performance or achievements. These statements involve known and unknown risks, uncertainties and other factors which may cause BioCryst's actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. These statements reflect our current views with respect to future events and are based on assumptions and are subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Some of the factors that could affect the forward-looking statements contained herein include: developing any HAE drug candidate may take longer or may be more expensive than planned; ongoing and future preclinical and clinical development of HAE second generation drug candidates (including APeX-1 and ZENITH-1) may not have positive results; that BioCryst may not be able to enroll the required number of subjects in planned clinical trials of product candidates; that the Company may not advance human clinical trials with product candidates as expected; that the FDA may require additional studies beyond the studies planned for product candidates, or may not provide regulatory clearances which may result in delay of planned clinical trials, or may impose a clinical hold with respect to such product candidate, or withhold market approval for product candidates; that BioCryst may not receive additional government funding to further support the development of galidesivir; that galidesivir development may not be successful; that BARDA and/or NIAID may further condition, reduce or eliminate future funding; that revenue from peramivir injection is unpredictable and may never result in significant revenue for the Company; that the Company may not be able to continue development of ongoing and future development programs; that such development programs may never result in future products; that actual financial results may not be consistent with expectations, including that 2017 operating expenses and cash usage may not be within management's expected ranges. Please refer to the documents BioCryst files periodically with the Securities and Exchange Commission, specifically BioCryst's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, all of which identify important factors that could cause the actual results to differ materially from those contained in BioCryst's projections and forward-looking statements.

BCRXW


BIOCRYST PHARMACEUTICALS, INC. 
FINANCIAL SUMMARY  
(in thousands, except per share numbers) 
              
             
Statements of Operations (Unaudited)            
    Three Months Ended 
    March 31, 
    2017   2016 
Revenues:         
Royalty revenue  $6,321   $1,890   
Collaborative and other research and development   3,116    2,930   
Total revenues   9,437    4,820   
           
Expenses:     
Research and development16,770  20,579   
General and administrative3,058  3,212   
Royalty   294    77   
Total operating expenses   20,122    23,868   
           
Loss from operations   (10,685)   (19,048)  
           
Interest and other income   109    439   
Interest expense   (2,100)   (1,470)  
Loss on foreign currency derivative   (1,543)   (2,753)  
           
Net loss  $(14,219)  $(22,832)  
           
           
Basic and diluted net loss per common share  $(0.19)  $(0.31)  
           
Weighted average shares outstanding   75,167    73,601   
             
             
             
Balance Sheet Data (in thousands)            
 March 31, 2017 December 31, 2016 
 (Unaudited) (Note 1) 
Cash, cash equivalents and investments $102,485    63,576   
Restricted cash  2,798    1,546   
Receivables from collaborations  9,564     8,768   
Total assets  129,513    89,847   
Non-recourse notes payable  28,353    28,243   
Senior credit facility  22,887    22,777   
Accumulated deficit  (580,280)   (566,061)  
Stockholders' equity  38,530    1,578   
Shares of common stock outstanding  80,381     73,782   
             
Note 1:  Derived from audited financial statements            


CONTACT:    Thomas Staab, BioCryst Pharmaceuticals, +1-919-859-7910

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Source: BioCryst Pharmaceuticals

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