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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 001-35969
PTC Therapeutics, Inc.
(Exact name of registrant as specified in its charter)
| | | | | | | | |
Delaware | | 04-3416587 |
(State or other jurisdiction of incorporation or organization) | | (I.R.S. Employer Identification No.) |
| | | | | | | | | | | |
100 Corporate Court | | | |
South Plainfield, | NJ | | 07080 |
(Address of principal executive offices) | | | (Zip Code) |
(908) 222-7000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $0.001 par value per share | PTCT | Nasdaq Global Select Market |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
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Large accelerated filer | þ | Accelerated filer | ☐ |
| | | |
Non-accelerated filer
| ☐ | Smaller reporting company | ☐ |
| | Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ
As of August 3, 2020, there were 67,703,214 shares of Common Stock, $0.001 par value per share, outstanding.
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TABLE OF CONTENTS | |
PTC Therapeutics, Inc. | |
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FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this Quarterly Report on Form 10-Q, including statements regarding our strategy, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of management, are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.
The forward-looking statements in this Quarterly Report on Form 10-Q include, among other things, statements about:
•expectations with respect to our gene therapy platform, including any potential regulatory submissions and potential approvals, including those related to our gene therapy for the treatment of Aromatic L-Amino Acid Decarboxylase, or AADC deficiency, or PTC-AADC, our manufacturing capabilities and the potential financial impact and benefits of our leased biologics manufacturing facility and the potential achievement of development, regulatory and sales milestones and contingent payments that we may be obligated to make;
•our ability to negotiate, secure and maintain adequate pricing, coverage and reimbursement terms and processes on a timely basis, or at all, with third-party payors for our products or product candidates that we commercialize or may commercialize in the future;
•our ability to maintain our marketing authorization of Translarna for the treatment of nonsense mutation Duchenne muscular dystrophy, or nmDMD, in the European Economic Area, or EEA, which is subject to the specific obligation to conduct and submit the results of Study 041 to the European Medicines Agency, or EMA, and annual review and renewal by the European Commission following reassessment of the benefit-risk balance of the authorization by the EMA;
•our ability to enroll, fund, and complete Study 041, a multicenter, randomized, double-blind, 18-month, placebo-controlled clinical trial of Translarna for the treatment of nmDMD followed by an 18-month open label extension, according to the protocol agreed with the EMA, and by the EMA’s deadline;
•the anticipated period of market exclusivity for Emflaza for the treatment of DMD in the United States under the Orphan Drug Act of 1983, or Orphan Drug Act, the Drug Price Competition and Patent Term Restoration Act of 1984, or the Hatch-Waxman Act;
•our ability to complete any dystrophin study necessary in order to resolve the matters set forth in the United States Food and Drug Administration's, or the FDA, denial of our appeal to the Complete Response Letter we received from the FDA in connection with our New Drug Application, or NDA, for Translarna for the treatment of nmDMD, and our ability to perform additional clinical trials, non-clinical studies or CMC assessments or analyses at significant cost;
•the timing and scope of our commercialization of our products and product candidates;
•our expectations with respect to the COVID-19 pandemic and related response measures and their effects on our business, operations, clinical trials, potential regulatory submissions and approvals, our collaborators, contract research organizations, suppliers and manufacturers;
•our ability to obtain additional and maintain existing reimbursed named patient and cohort early access programs, or EAP programs, for our products on adequate terms, or at all;
•our expectations with respect to the development, regulatory and commercial status of our product candidates and program directed against spinal muscular atrophy in collaboration with F. Hoffmann La Roche Ltd and Hoffmann La Roche Inc., which we refer to collectively as Roche, and the Spinal Muscular Atrophy Foundation, or the SMA Foundation, and our estimates regarding future revenues from sales-based royalty payments or the achievement of milestones in that program;
•our expectations and the potential financial impact and benefits related to our Collaboration and Licensing Agreement with Akcea Therapeutics, Inc., or Akcea, including with respect to the timing of regulatory approval of TegsediTM (inotersen) and WaylivraTM (volanesorsen) in countries in which we are licensed to commercialize them, the commercialization of Tegsedi and Waylivra, and our expectations with respect to contingent payments to Akcea
based on the potential achievement of certain regulatory milestones and royalty payments by us to Akcea based on our potential achievement of certain net sales thresholds;
•our estimates regarding the potential market opportunity for our products or product candidates, including the size of eligible patient populations and our ability to identify such patients;
•our estimates regarding expenses, future revenues, third-party discounts and rebates, capital requirements and needs for additional financing, including our ability to maintain the level of our expenses consistent with our internal budgets and forecasts and to secure additional funds on favorable terms or at all;
•the timing and conduct of our ongoing, planned and potential future clinical trials and studies in our gene therapy, splicing, Bio-e and oncology programs, studies of PTC923 for phenylketonuria, or PKU, and studies of PTC299 for COVID-19 as well as studies in our products for maintaining authorizations, label extensions and additional indications, including the timing of initiation, enrollment and completion of the trials and the period during which the results of the trials will become available;
•our ability to realize the anticipated benefits of our acquisitions or other strategic transactions, including the possibility that the expected impact of benefits from the acquisitions or strategic transactions will not be realized or will not be realized within the expected time period, significant transaction costs, the integration of operations and employees into our business, our ability to obtain marketing approval of our product candidates we acquired from the acquisitions or other strategic transactions and unknown liabilities;
•the rate and degree of market acceptance and clinical utility of any of our products or product candidates;
•the ability and willingness of patients and healthcare professionals to access our product and product candidates through alternative means if pricing and reimbursement negotiations in the applicable territory do not have a positive outcome;
•our ability to complete the FDA post-marketing requirements to the marketing authorization of Emflaza and any other post-marketing requirements for our products;
•the timing of, and our ability to obtain additional marketing authorizations for our products and product candidates;
•the ability of our products and our product candidates to meet existing or future regulatory standards;
•our ability to maintain the current labeling under the marketing authorization in the EEA or expand the approved product label of Translarna for the treatment of nmDMD;
•the potential receipt of revenues from future sales of our products or product candidates;
•the potential impact that enrollment, funding and completion of Study 041 may have on our revenue growth;
•our sales, marketing and distribution capabilities and strategy, including the ability of our third-party manufacturers to manufacture and deliver our products and product candidates in clinically and commercially sufficient quantities and the ability of distributors to process orders in a timely manner and satisfy their other obligations to us;
•our ability to establish and maintain arrangements for the manufacture of our products and product candidates that are sufficient to meet clinical trial and commercial launch requirements;
•our ability to establish and grow our manufacturing capabilities for our gene therapy platform;
•our expectations with respect to the potential financial impact and benefits of our leased biologics manufacturing facility and our ability to satisfy our obligations under the terms of the lease agreement for such facility;
•our ability to satisfy our obligations under the indenture governing our 3.00% convertible senior notes due August 15, 2022 and under the indenture governing our 1.50% convertible senior notes due September 15, 2026;
•our regulatory submissions, including with respect to timing and outcome of regulatory review;
•our plans to advance our earlier stage programs and pursue research and development of other product candidates, including our splicing, gene therapy, Bio-e and oncology programs;
•whether we may pursue business development opportunities, including potential collaborations, alliances, and acquisition or licensing of assets and our ability to successfully develop or commercialize any assets to which we may gain rights pursuant to such business development opportunities;
•the potential advantages of our products and any product candidate;
•our intellectual property position;
•the impact of government laws and regulations;
•the impact of litigation that has been or may be brought against us or of litigation that we are pursuing against others; and
•our competitive position.
We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. We have included important factors in the cautionary statements included in this Quarterly Report on Form 10-Q, particularly in Part II, Item 1A. Risk Factors as well as in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2019, that we believe could cause actual results or events to differ materially from the forward-looking statements that we make. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make.
You should read this Quarterly Report on Form 10-Q and the documents that we have filed as exhibits to this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2019 completely and with the understanding that our actual future results may be materially different from what we expect. We do not assume any obligation to update any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
In this Quarterly Report on Form 10-Q, unless otherwise stated or the context otherwise requires, references to “PTC,” “PTC Therapeutics,” “the Company,” “we,” “us,” “our,” and similar references refer to PTC Therapeutics, Inc. and, where appropriate, its subsidiaries. The trademarks, trade names and service marks appearing in this Quarterly Report on Form 10-Q are the property of their respective owners.
All website addresses given in this Quarterly Report on Form 10-Q are for information only and are not intended to be an active link or to incorporate any website information into this document.
PART I—FINANCIAL INFORMATION
Item 1. Financial Statements.
PTC Therapeutics, Inc.
Consolidated Balance Sheets (unaudited)
In thousands (except shares)
| | | | | | | | | | | | | | |
| | June 30, 2020 | | December 31, 2019 |
Assets | | | | |
Current assets: | | | | |
Cash and cash equivalents | | $ | 158,461 | | | $ | 288,028 | |
Marketable securities | | 340,430 | | | 398,535 | |
Trade receivables, net | | 53,644 | | | 55,538 | |
Inventory, net | | 18,373 | | | 19,285 | |
Prepaid expenses and other current assets | | 34,116 | | | 17,898 | |
Total current assets | | 605,024 | | | 779,284 | |
Fixed assets, net | | 26,806 | | | 21,549 | |
Intangible assets, net | | 708,814 | | | 710,500 | |
Goodwill | | 82,341 | | | 82,341 | |
Deposits and other assets | | 53,652 | | | 30,108 | |
Total assets | | $ | 1,476,637 | | | $ | 1,623,782 | |
Liabilities and stockholders’ equity | | | | |
Current liabilities: | | | | |
Accounts payable and accrued expenses | | $ | 164,376 | | | $ | 159,276 | |
Current portion of long-term debt | | 18,333 | | | 20,000 | |
Deferred revenue | | 7,702 | | | 8,242 | |
Finance lease liabilities- current | | 4,180 | | | — | |
Other current liabilities | | 4,868 | | | 8,339 | |
Deferred consideration payable | | 2,384 | | | 40,000 | |
Total current liabilities | | 201,843 | | | 235,857 | |
Deferred revenue- long term | | — | | | 3,415 | |
Long-term debt | | 297,029 | | | 293,859 | |
Contingent consideration payable | | 225,700 | | | 356,300 | |
| | | | |
Deferred tax liability | | 130,862 | | | 130,862 | |
Finance lease liabilities- noncurrent | | 22,031 | | | — | |
Other long-term liabilities | | 26,678 | | | 9,159 | |
Total liabilities | | 904,143 | | | 1,029,452 | |
Stockholders’ equity: | | | | |
Common stock, $0.001 par value. Authorized 125,000,000 shares; issued and outstanding 67,240,679 shares at June 30, 2020. Authorized 125,000,000 shares; issued and outstanding 61,935,870 shares at December 31, 2019. | | 67 | | | 62 | |
Additional paid-in capital | | 2,067,274 | | | 1,795,351 | |
Accumulated other comprehensive income | | (10,016) | | | (10,584) | |
Accumulated deficit | | (1,484,831) | | | (1,190,499) | |
Total stockholders’ equity | | 572,494 | | | 594,330 | |
Total liabilities and stockholders’ equity | | $ | 1,476,637 | | | $ | 1,623,782 | |
See accompanying unaudited notes.
PTC Therapeutics, Inc.
Consolidated Statements of Operations (unaudited)
In thousands (except shares and per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, | | | | Six Months Ended June 30, | | |
| | 2020 | | 2019 | | 2020 | | 2019 |
Revenues: | | | | | | | | |
Net product revenue | | $ | 75,239 | | | $ | 85,476 | | | $ | 143,435 | | | $ | 138,530 | |
Collaboration and grant revenue | | — | | | 46 | | | 63 | | | 575 | |
Total revenues | | 75,239 | | | 85,522 | | | 143,498 | | | 139,105 | |
Operating expenses: | | | | | | | | |
Cost of product sales, excluding amortization of acquired intangible assets | | 5,304 | | | 3,211 | | | 9,389 | | | 5,587 | |
Amortization of acquired intangible assets | | 8,731 | | | 6,575 | | | 16,679 | | | 12,652 | |
Research and development | | 176,525 | | | 59,979 | | | 266,632 | | | 112,544 | |
Selling, general and administrative | | 53,659 | | | 49,215 | | | 111,869 | | | 89,760 | |
Change in the fair value of deferred and contingent consideration | | 7,680 | | | 5,300 | | | 8,580 | | | 26,460 | |
Settlement of deferred and contingent consideration | | 10,613 | | | — | | | 10,613 | | | — | |
Total operating expenses | | 262,512 | | | 124,280 | | | 423,762 | | | 247,003 | |
Loss from operations | | (187,273) | | | (38,758) | | | (280,264) | | | (107,898) | |
Interest expense, net | | (5,379) | | | (2,074) | | | (11,021) | | | (4,362) | |
Other income (expense), net | | 11,309 | | | (183) | | | (2,523) | | | (292) | |
Loss before income tax expense | | (181,343) | | | (41,015) | | | (293,808) | | | (112,552) | |
Income tax expense | | (84) | | | (774) | | | (306) | | | (1,350) | |
Net loss attributable to common stockholders | | $ | (181,427) | | | $ | (41,789) | | | $ | (294,114) | | | $ | (113,902) | |
| | | | | | | | |
Weighted-average shares outstanding: | | | | | | | | |
Basic and diluted (in shares) | | 65,150,780 | | | 55,912,748 | | | 63,769,958 | | | 57,113,141 | |
Net loss per share—basic and diluted (in dollars per share) | | $ | (2.78) | | | $ | (0.75) | | | $ | (4.61) | | | $ | (1.99) | |
See accompanying unaudited notes.
PTC Therapeutics, Inc.
Consolidated Statements of Comprehensive Loss (unaudited)
In thousands
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, | | | | Six Months Ended June 30, | | |
| | 2020 | | 2019 | | 2020 | | 2019 |
Net loss | | $ | (181,427) | | | $ | (41,789) | | | $ | (294,114) | | | $ | (113,902) | |
Other comprehensive (loss) income: | | | | | | | | |
Unrealized gain on marketable securities, net of tax | | 2,718 | | | 839 | | | 2,655 | | | 898 | |
Foreign currency translation (loss) gain, net of tax | | (10,749) | | | 278 | | | (2,087) | | | (438) | |
Comprehensive loss | | $ | (189,458) | | | $ | (40,672) | | | $ | (293,546) | | | $ | (113,442) | |
See accompanying unaudited notes.
PTC Therapeutics, Inc.
Consolidated Statements of Stockholders' Equity (unaudited)
In thousands (except shares)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Three months ended June 30, 2020 | Common stock | | | | Additional paid-in capital | | Accumulated other comprehensive (loss) income | | Accumulated deficit | | Total stockholders’ equity |
| Shares | | Amount | | | | | | | | |
Balance, March 31, 2020 | 62,758,520 | | | $ | 62 | | | $ | 1,834,061 | | | $ | (1,985) | | | $ | (1,303,404) | | | $ | 528,734 | |
| | | | | | | | | | | |
Issuance of common stock related to equity offering | 106,309 | | | — | | | 5,447 | | | — | | | — | | | 5,447 | |
| | | | | | | | | | | |
Issuance of common stock related to acquisition | 845,364 | | | 1 | | | 42,868 | | | — | | | — | | | 42,869 | |
Issuance of common stock related to rights exchange | 2,821,176 | | | 3 | | | 150,525 | | | | | | | 150,528 | |
Exercise of options | 654,604 | | | 1 | | | 15,057 | | | — | | | — | | | 15,058 | |
Restricted stock vesting and issuance, net | (3,985) | | | — | | | — | | | — | | | — | | | — | |
| | | | | | | | | | | |
Issuance of common stock in connection with an employee stock purchase plan | 58,691 | | | — | | | 2,406 | | | — | | | — | | | 2,406 | |
Share-based compensation expense | — | | | — | | | 16,910 | | | — | | | — | | | 16,910 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net loss | — | | | — | | | — | | | — | | | (181,427) | | | (181,427) | |
Comprehensive loss | — | | | — | | | — | | | (8,031) | | | — | | | (8,031) | |
Balance, June 30, 2020 | 67,240,679 | | | $ | 67 | | | $ | 2,067,274 | | | $ | (10,016) | | | $ | (1,484,831) | | | $ | 572,494 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Three months ended June 30, 2019 | Common stock | | | | Additional paid-in capital | | Accumulated other comprehensive income (loss) | | Accumulated deficit | | Total stockholders’ equity |
| Shares | | Amount | | | | | | | | |
Balance, March 31, 2019 | 58,418,790 | | | $ | 58 | | | $ | 1,523,115 | | | $ | 805 | | | $ | (1,011,036) | | | $ | 512,942 | |
Issuance of common stock related to equity offering | — | | | — | | | 106 | | | — | | | — | | | 106 | |
Exercise of options | 230,176 | | | — | | | 2,847 | | | — | | | — | | | 2,847 | |
Restricted stock vesting and issuance, net | 3,500 | | | — | | | — | | | — | | | — | | | — | |
Issuance of common stock in connection with an employee stock purchase plan | 54,719 | | | — | | | 1,564 | | | — | | | — | | | 1,564 | |
Share-based compensation expense | — | | | — | | | 10,920 | | | — | | | — | | | 10,920 | |
Receivable from investor | — | | | — | | | 978 | | | — | | | — | | | 978 | |
Net loss | — | | | — | | | — | | | — | | | (41,789) | | | (41,789) | |
Comprehensive income | — | | | — | | | — | | | 1,117 | | | — | | | 1,117 | |
Balance, June 30, 2019 | 58,707,185 | | | $ | 58 | | | $ | 1,539,530 | | | $ | 1,922 | | | $ | (1,052,825) | | | $ | 488,685 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six months ended June 30, 2020 | Common stock | | | | Additional paid-in capital | | Accumulated other comprehensive (loss) income | | Accumulated deficit | | Total stockholders’ equity |
| Shares | | Amount | | | | | | | | |
Balance, December 31, 2019 | 61,935,870 | | | $ | 62 | | | $ | 1,795,351 | | | $ | (10,584) | | | $ | (1,190,499) | | | $ | 594,330 | |
| | | | | | | | | | | |
Issuance of common stock related to equity offering | 368,514 | | | — | | | 18,950 | | | — | | | — | | | 18,950 | |
| | | | | | | | | | | |
Issuance of common stock related to acquisition | 845,364 | | | 1 | | | 42,868 | | | — | | | — | | | 42,869 | |
Issuance of common stock related to rights exchange | 2,821,176 | | | 3 | | | 150,525 | | | — | | | — | | | 150,528 | |
Exercise of options | 1,034,288 | | | 1 | | | 25,044 | | | — | | | — | | | 25,045 | |
Restricted stock vesting and issuance, net | 176,776 | | | — | | | — | | | — | | | — | | | — | |
Issuance of common stock in connection with an employee stock purchase plan | 58,691 | | | — | | | 2,406 | | | — | | | — | | | 2,406 | |
Share-based compensation expense | — | | | — | | | 32,130 | | | — | | | — | | | 32,130 | |
Other | — | | | — | | | — | | | — | | | (218) | | | (218) | |
| | | | | | | | | | | |
| | | | | | | | | | | |
Net loss | — | | | — | | | — | | | — | | | (294,114) | | | (294,114) | |
Comprehensive income | — | | | — | | | — | | | 568 | | | — | | | 568 | |
Balance, June 30, 2020 | 67,240,679 | | | $ | 67 | | | $ | 2,067,274 | | | $ | (10,016) | | | $ | (1,484,831) | | | $ | 572,494 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Six months ended June 30, 2019 | Common stock | | | | Additional paid-in capital | | Accumulated other comprehensive income (loss) | | Accumulated deficit | | Total stockholders’ equity |
| Shares | | Amount | | | | | | | | |
Balance, December 31, 2018 | 50,606,147 | | | $ | 51 | | | $ | 1,288,137 | | | $ | 1,462 | | | $ | (938,923) | | | $ | 350,727 | |
| | | | | | | | | | | |
Issuance of common stock related to equity offering | 7,563,725 | | | 7 | | | 224,538 | | | — | | | — | | | 224,545 | |
| | | | | | | | | | | |
Exercise of options | 311,002 | | | — | | | 4,129 | | | — | | | — | | | 4,129 | |
Restricted stock vesting and issuance, net | 171,592 | | | — | | | — | | | — | | | — | | | — | |
| | | | | | | | | | | |
Issuance of common stock in connection with an employee stock purchase plan | 54,719 | | | — | | | 1,564 | | | — | | | — | | | 1,564 | |
Share-based compensation expense | — | | | — | | | 20,184 | | | — | | | — | | | 20,184 | |
Receivable from investor | — | | | — | | | 978 | | | — | | | | | 978 | |
Net loss | — | | | — | | | — | | | | | (113,902) | | | (113,902) | |
Comprehensive income | — | | | — | | | — | | | 460 | | | — | | | 460 | |
Balance, June 30, 2019 | 58,707,185 | | | $ | 58 | | | $ | 1,539,530 | | | $ | 1,922 | | | $ | (1,052,825) | | | $ | 488,685 | |
See accompanying unaudited notes. | | | | | | | | | | | |
| | | | | | | | | | | | | | |
PTC Therapeutics, Inc. Consolidated Statements of Cash Flows (unaudited) In thousands
| | | | |
| | Six Months Ended June 30, | | |
| | 2020 | | 2019 |
Cash flows from operating activities | | | | |
Net loss | | $ | (294,114) | | | $ | (113,902) | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | |
Depreciation and amortization | | 19,445 | | | 14,760 | |
Non-cash operating lease expense | | 2,401 | | | 1,256 | |
Non-cash finance lease amortization expense | | 41,212 | | | — | |
Change in valuation of deferred and contingent consideration | | 8,580 | | | 26,460 | |
Settlement of deferred and contingent consideration | | 10,613 | | | — | |
Non-cash stock consideration, acquisition | | 42,869 | | | — | |
Unrealized loss on equity investment | | 1,600 | | | (129) | |
Unrealized loss on ClearPoint convertible debt security | | 749 | | | — | |
Non-cash interest expense | | 10,993 | | | 4,055 | |
Loss on disposal of asset | | 26 | | | 50 | |
Amortization of discounts on investments, net | | (635) | | | (907) | |
Amortization of debt issuance costs | | 510 | | | 280 | |
Share-based compensation expense | | 32,130 | | | 20,184 | |
| | | | |
Unrealized foreign currency transaction (gains) losses, net | | (3,248) | | | 62 | |
Changes in operating assets and liabilities: | | | | |
Inventory, net | | 943 | | | (852) | |
Prepaid expenses and other current assets | | (16,569) | | | (7,250) | |
Trade receivables, net | | 1,860 | | | (9,702) | |
Deposits and other assets | | (175) | | | (9,656) | |
Accounts payable and accrued expenses | | (7,497) | | | (7,546) | |
Other long-term liabilities | | (4,132) | | | 7,395 | |
Deferred revenue | | (3,925) | | | 2,511 | |
Net cash used in operating activities | | $ | (156,364) | | | $ | (72,931) | |
Cash flows from investing activities | | | | |
Purchases of fixed assets | | $ | (8,183) | | | $ | (4,851) | |
Purchase of convertible debt security | | (10,000) | | | — | |
Purchases of marketable securities | | (367,102) | | | (226,261) | |
Sale and redemption of marketable securities | | 428,490 | | | 58,424 | |
Acquisition of product rights and licenses
| | (2,422) | | | (11,981) | |
Purchase of equity investment | | — | | | (4,000) | |
Net cash provided by (used in) investing activities | | $ | 40,783 | | | $ | (188,669) | |
Cash flows from financing activities | | | | |
Proceeds from exercise of options | | $ | 25,045 | | | $ | 4,129 | |
Net proceeds from public offerings | | 18,950 | | | 224,545 | |
Repayment of senior secured term loan | | (10,000) | | | (1,667) | |
Payments on deferred consideration obligation | | (35,829) | | | — | |
Proceeds from employee stock purchase plan | | 2,406 | |