OvaScience Reports Third Quarter 2015 Financial Results
“The recent publication of the AUGMENT patient experiences highlighted
the clinical benefit of the treatment in patients with poor fertility
Third Quarter and Recent Highlights
AUGMENTSM Treatment Peer-Reviewed
Publication Showed Statistically Significant Improvements in Embryo
Selection and Transfer Compared to Standard IVF
First published analysis comparing the AUGMENT treatment to standard IVF using an egg allocation method demonstrated statistically significant higher rates of embryo selection and transfer with the AUGMENT treatment based on standard embryo quality measures, including preimplantation genetic diagnosis/screening. Improved pregnancy rates with the AUGMENT treatment were also reported in the publication. These positive results were published in the
Journal of Fertilization: In Vitro– IVF-Worldwide and presented at a recent scientific symposium. Additionally, physicians offering the AUGMENT treatment reported 20 babies born with the treatment to date. The AUGMENT treatment is not available in the United States.
Hosted Scientific Symposium for Healthcare Providers on Advances in
Participated in the
American Society for Reproductive Medicine(ASRM) Annual Meeting and held a scientific symposium focused on educating clinicians on the importance of egg health and new advances in fertility. The event featured experts on the role of mitochondria for healthy embryogenesis and the potential of egg precursor (EggPCSM) cells for developing novel fertility treatments. In addition, a summary of the first published AUGMENT treatment patient experience was presented.
On Track to Introduce the OvaPrimeSM
Treatment Through Preceptorship Program
Company expects to meet goal of introducing the OvaPrime treatment to patients through a preceptorship program in at least one international region outside
the United Statesby year end. This initial preceptorship program is a non-commercial training period in which physicians gain clinical experience using the OvaPrime treatment to replenish the ovarian reserve in women who make too few or no eggs. The Company expects physicians will share their initial patient experiences as clinically meaningful insights become available.
Advanced Development Plans for the OvaTureSM
Finalizing plans for the further development of the OvaTure treatment, a next-generation fertility treatment designed to grow fresh, healthy eggs without the need for hormone injections.
OvaSciencestill anticipates that by year end the Company will define its strategy for developing the OvaTure treatment outside the United States.
Third Quarter Financial Results
Net loss for the three months ended
September 30, 2015was $17.9 million, or ($0.66)per share, as compared to net loss of $12.9 million, or ($0.54)per share, for the three months ended September 30, 2014. This included non-cash stock-based compensation expense of $3.7 million. The increase in net loss is primarily attributable to planned higher personnel costs, stock-based compensation, and costs associated with the launch of the AUGMENT treatment in certain international IVF clinics. Launch costs include legal and consulting services and establishment of lab-based operations, which will also support introductions of future fertility treatments.
Research and development expense for the three months ended
September 30, 2015was $4.0 million, compared to $5.3 millionfor the same period in 2014. This decrease is primarily driven by a decrease of $0.8 millionrelated to the stock-based compensation expense recorded in the prior year, including $1.1 millionfor Founders' stock, which was fully expensed in the first quarter of 2015 and will not recur, and $0.4 millionin certain collaboration agreements and research grants, which expired prior to the current period.
Selling, general and administrative expense for the three months ended
September 30, 2015was $12.9 million, as compared to $7.1 millionfor the same period in 2014. This increase was primarily a result of $2.6 millionfor employee compensation and related benefits, including stock-based compensation expense driven by the hiring of additional personnel, $2.6 millionof costs associated with the launch of the AUGMENT treatment and international growth, $0.4 millionin facilities expenses, and $0.2 millionin accounting, tax and other expenses.
Upcoming Events and Presentations
OvaScience Investor Day,
December 17in New York, NY
This press release includes forward-looking statements about the Company’s plans for the AUGMENT treatment and two fertility treatments in development, including statements relating to our confidence in our ability to expand into new territories, including
|Condensed Consolidated Balance Sheets|
|Cash and cash equivalents||$||50,842||$||6,414|
|Prepaid expenses and other current assets||3,650||1,647|
|Total current assets||145,322||61,878|
|Property and equipment, net||6,717||3,367|
|Investment in joint venture||241||-|
|Other long-term assets||-||130|
|Liabilities and stockholders’ equity|
|Accrued expenses and other current liabilities||5,707||7,654|
|Total current liabilities||9,863||10,174|
|Other non-current liabilities||358||73|
|Total stockholders’ equity||142,586||55,325|
|Total liabilities and stockholders’ equity||$||152,807||$||65,572|
|Condensed Consolidated Statements of Operations|
|(In thousands, except per share data)|
Three Months Ended
Nine Months Ended
|Costs and expenses:|
|Costs of revenues||940||-||1,091||-|
|Research and development||3,998||5,325||13,766||14,511|
|Selling, general and administrative||12,909||7,074||37,022||15,133|
|Total costs and expenses||17,847||12,399||51,879||29,644|
|Loss from operations||(17,772)||(12,399)||(51,759)||(29,644)|
|Interest income (expense), net||141||(25)||286||(109)|
|Other income, net||25||24||31||38|
|Loss from equity method investment||(316)||(523)||(1,176)||(915)|
|Net loss per share—basic and diluted||$||(0.66)||$||(0.54)||$||(1.95)||$||(1.38)|
|Weighted average number of shares used in net loss per share—basic and diluted||27,267||23,766||27,020||22,192|