On October 31, 2017 Aduro Biotech, Inc. (NASDAQ:ADRO) today reported financial results for the third quarter of 2017. Net loss for the third quarter of 2017 was $24.5 million, or $0.33 per share, and for the nine months ended September 30, 2017 net loss was $65.7 million, or $0.92 per share, compared to net loss of $35.1 million, or $0.54 per share, and net loss of $61.6 million, or $0.96 per share, respectively, for the same periods in 2016 (Press release, Aduro Biotech, OCT 31, 2017, View Source [SID1234521364]).
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Cash, cash equivalents and marketable securities totaled $373.5 million at September 30, 2017, compared to $361.9 million at December 31, 2016.
“This has been a solid year of progress in advancing our oncology pipeline, with the initiation of multiple new clinical trials across a number of indications,” said Stephen T. Isaacs, chairman, president and chief executive officer of Aduro. “These activities position us well for upcoming data readouts that will inform our strategy as we seek to aggressively advance programs with the most potential to make a difference for patients.”
Key Recent Accomplishments
Initiated Phase 1b trial of ADU-S100 in combination with anti-PD-1 in collaboration with Novartis
Initiated Phase 1 study of personalized LADD (pLADD) using patient-specific neoantigens in adults with metastatic colorectal cancer that is microsatellite stable
Received FDA clearance of an Investigational New Drug Application for the Phase 1 study of BION-1301, an anti-APRIL antibody
Bolstered intellectual property position in STING field with two new patent issuances
Remaining Anticipated 2017 Milestones
Report early observations from the ongoing Phase 2 mesothelioma study evaluating CRS-207 in combination with pembrolizumab
Provide an update on the safety and tolerability of ADU-S100 in the ongoing dose-escalation Phase 1 monotherapy trial
Initiate Phase 1 multiple myeloma trial with BION-1301, an anti-APRIL antibody
Janssen expected to advance the ADU-214 program into a Phase 1b/2 trial in lung cancer
Third Quarter 2017 Financial Results
Revenue was $3.8 million for the third quarter of 2017 and $13.5 million for the nine months ended September 30, 2017, compared to $3.8 million and $46.8 million, respectively, for the same periods in 2016. There was no change in revenue for the third quarter of 2017 compared to the third quarter of 2016. The decrease in revenue for the nine months ended September 30, 2017 was primarily due to the recognition of a $35.0 million milestone payment in the second quarter of 2016 in connection with the clinical advancement of ADU-S100 under our agreement with Novartis.
Research and development expenses were $24.5 million for the third quarter of 2017 and $66.5 million for the nine months ended September 30, 2017, compared to $19.0 million and $66.9 million, respectively, for the same periods in 2016. The increase in research and development expenses for the third quarter of 2017 was primarily related to increased costs to manufacture our B-select antibodies, as well as higher facility related costs. The decrease in research and development costs for the nine months ended September 30, 2017 was primarily due to reduced GVAX Pancreas manufacturing and pancreatic cancer clinical trial expenses, partially offset by increased costs to manufacture our B-select antibodies as well as higher personnel and facility related costs in 2017.
General and administrative expenses were $8.5 million for the third quarter of 2017 and $25.0 million for the nine months ended September 30, 2017, compared to $8.6 million and $26.3 million, respectively, for the same periods in 2016. The decrease in general and administrative expenses in both periods was primarily related to lower professional services and consulting expenses in 2017.
Income tax benefit was $3.9 million for the third quarter of 2017 and $10.4 million for the nine months ended September 30, 2017, compared to a provision for income taxes of $11.7 million and $16.4 million, respectively, for the same periods in 2016. The income tax benefit recorded in 2017 was due to the current benefit of federal income taxes paid in 2016.