Adamas Pharmaceuticals, Inc.
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Adamas Reports Third Quarter 2016 Financial Results

EMERYVILLE, Calif., Nov. 03, 2016 (GLOBE NEWSWIRE) -- Adamas Pharmaceuticals, Inc. (Nasdaq:ADMS) today announced financial results for the quarter ended September 30, 2016

"This was a milestone quarter for the company as we prepared for and submitted our New Drug Application (NDA) for ADS-5102 (amantadine hydrochloride) extended-release capsules for the potential treatment of levodopa-induced dyskinesia (LID) in patients with Parkinson's disease in October 2016," said Gregory T. Went, Ph.D., Chairman and Chief Executive Officer of Adamas Pharmaceuticals, Inc.  "We are pleased that our platform, which focuses on developing chrono-synchronous therapies, continues to provide potential treatments for patients with chronic neurologic disorders, including Alzheimer's and Parkinson's disease."

Recent and Upcoming Milestones

ADS-5102 (LID in Parkinson's disease)

ADS-5102 (multiple sclerosis walking impairment)

ADS-4101 (epilepsy)

NAMZARIC®

With our partner Forest Laboratories Holding Ltd. (a wholly owned subsidiary of Allergan plc), we:

Corporate

Third Quarter 2016 Financial Results

For the quarter ended September 30, 2016, Adamas reported a net loss of $14.4 million, or $0.66 per share, basic and diluted, compared with a net loss of $14.9 million, or $0.81 per share, basic and diluted, for the quarter ended September 30, 2015.  

Research and development expenses for the quarter ended September 30, 2016, were $7.4 million, including $0.7 million in stock-based compensation expense, compared to $10.0 million for the quarter ended September 30, 2015, which included $0.8 million in stock-based compensation expense.  Research and development expenses for the current quarter declined over the prior year's third quarter principally due to the completion of Phase 3 clinical trials on ADS-5102 for LID in support of the recent NDA submission.  

General and administrative expenses for the quarter ended September 30, 2016, were $7.3 million, including $1.9 million in stock-based compensation expense, compared to $5.8 million for the same quarter in the prior year, which included $1.8 million in stock-based compensation expense.  The increase in general and administrative expenses was primarily due to increased investment in infrastructure to support anticipated commercialization of ADS-5102 for LID in the coming year.

Adamas ended the quarter with $145.9 million of cash, cash equivalents, and available-for-sale securities, a reduction of $12.1 million from the end of the prior quarter. 

Nine-Month 2016 Financial Results

Adamas reported a net loss for the nine months ended September 30, 2016, of $45.1 million, or $2.09 per share, basic and diluted, compared with a net loss of $41.1 million, or $2.28 per share, basic and diluted, for the same period in 2015.  

Research and development expenses for the nine months ended September 30, 2016, were $24.2 million, including $2.1 million in stock-based compensation expense, compared to $26.2 million for the nine months ended September 30, 2015, which included $2.3 million in stock-based compensation expense. 

General and administrative expenses for the nine months ended September 30, 2016, were $22.0 million, including $5.6 million in stock-based compensation expense, compared to $16.6 million, including $4.9 million in stock-based compensation expense, for the same period in 2015.

About Adamas Pharmaceuticals, Inc.

Adamas is a pharmaceutical company that is developing new medicines to improve the daily lives of those affected by chronic neurologic disorders, including Alzheimer's disease, Parkinson's disease, multiple sclerosis, and epilepsy.  Adamas has pioneered a platform based on an understanding of time dependent biologic effects of disease activity and drug response to achieve symptomatic relief without additional tolerability issues.  We have developed a portfolio of chrono-synchronous therapies to potentially address chronic neurologic disorders.  Our lead program, ADS-5102 in development for the treatment of levodopa-induced dyskinesia (LID) in patients with Parkinson's disease, is currently being evaluated by the U.S. Food and Drug Administration (FDA) for potential approval in 2017.  ADS-5102 has additional opportunities to potentially provide symptomatic treatment of other chronic neurologic disorders such as multiple sclerosis walking impairment and several other indications.  Our newest clinical development program, ADS-4101, is entering the clinic for the improved control of epileptic seizures.  Additionally, through our license agreement with Forest Laboratories Holding Ltd. (a wholly owned subsidiary of Allergan plc), the company is eligible to receive royalties on sales of NAMENDA XR® and NAMZARIC® beginning in June of 2018 and May of 2020, respectively.  For more information, please visit www.adamaspharma.com.

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

Forward-looking Statements

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, including but not limited to, statements contained in this press release regarding the potential approval of ADS-5102 for the treatment of levodopa-induced dyskinesia in patients with Parkinson's disease, additional indications for ADS-5102, and additional products such as ADS-4101.  Words such as "look forward," "on track," "expect," "potential," and similar expressions (as well as other words or expressions referencing future events, conditions, or circumstances) are intended to identify forward-looking statements.  Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.  For a description of risks and uncertainties that could cause actual results to differ from those expressed in forward-looking statements, including risks relating to our research, clinical and development activities relating to ADS-5102 and ADS-4101, the regulatory and competitive environment and our business in general, see our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 3, 2016.  Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release.  We undertake no obligation to update any forward-looking statement in this press release.

— Financial Tables Attached —

    
Adamas Pharmaceuticals, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share data)
    
 Three Months Ended
 September 30,
 Nine Months Ended
 September 30,
 2016 2015 2016 2015
Revenue$138  $768  $535  $1,392 
Operating expenses       
Research and development7,437  9,960  24,183  26,198 
General and administrative, net7,344  5,803  22,043  16,568 
Total operating expenses14,781  15,763  46,226  42,766 
Loss from operations(14,643) (14,995) (45,691) (41,374)
Interest and other income, net249  85  593  265 
Loss before income taxes(14,394) (14,910) (45,098) (41,109)
Provision (benefit) for income taxes  (51)   3 
Net loss$(14,394) $(14,859) $(45,098) $(41,112)
        
Net loss per share, basic and diluted$(0.66) $(0.81) $(2.09) $(2.28)
        
Weighted average shares used in computing net loss per share, basic and diluted21,941  18,395  21,616  18,001 


    
Adamas Pharmaceuticals, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
    
 September 30,
 2016
 December 31,
 2015
Assets   
Current assets   
Cash and cash equivalents$9,776  $33,104 
Available-for-sale securities92,409  73,691 
Accounts receivable769  1,284 
Prepaid expenses and other current assets7,433  5,108 
Total current assets110,387  113,187 
Property and equipment, net3,078  2,353 
Available-for-sale securities, non-current43,725  13,165 
Other assets38  38 
Total assets$157,228  $128,743 
Liabilities and stockholders' equity   
Current liabilities   
Accounts payable$5,956  $3,052 
Accrued liabilities6,306  8,457 
Other current liabilities301  298 
Total current liabilities12,563  11,807 
Non-current liabilities600  749 
Total liabilities 13,163  12,556 
Commitments and Contingencies   
Stockholders' equity   
Preferred stock, $0.001 par value — 5,000,000 shares authorized, and zero shares issued and outstanding at September 30, 2016 and December 31, 2015   
Common stock, $0.001 par value — 100,000,000 shares authorized, 21,982,429 and 18,505,462 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively27   23 
Additional paid-in capital251,351  178,473 
Accumulated other comprehensive loss(64) (158)
Accumulated deficit(107,249) (62,151)
Total stockholders' equity144,065  116,187 
Total liabilities and stockholders' equity$157,228  $128,743 


  
Adamas Pharmaceuticals, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
  
 Nine Months Ended
 September 30,
  2016 2015
Cash flows from operating activities   
Net loss$(45,098) $(41,112)
Adjustments to reconcile net loss to net cash used in operating activities   
Depreciation and amortization562  306 
Stock-based compensation7,782  7,205 
Net accretion of discounts and amortization of premiums of available-for-sale securities(332) 850 
Changes in assets and liabilities   
Accrued interest of available-for-sale securities(119) (14)
Prepaid expenses and other assets(2,325) (393)
Accounts receivable515  (412)
Accounts payable3,007  (834)
Accrued liabilities and other liabilities(2,431 ) (469)
Net cash used in operating activities(38,439) (34,873)
Cash flows from investing activities   
Purchases of property and equipment(1,222) (1,131)
Purchases of available-for-sale securities(95,528) (32,578)
Maturities of available-for-sale securities46,795  33,745 
Net cash provided by (used in) investing activities(49,955) 36 
Cash flows from financing activities   
Proceeds from public offerings, net of offering costs61,822  9,657 
Proceeds from issuance of common stock upon exercise of stock options2,918  671 
Proceeds from employee stock purchase plan326  181 
Net cash provided by financing activities65,066  10,509 
Net decrease in cash and cash equivalents(23,328) (24,328)
Cash and cash equivalents at beginning of period33,104  61,446 
Cash and cash equivalents at end of period$9,776  $37,118 


Contact:

Martin Forrest

VP Corporate Communications & Investor Relations

510-450-3528

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Source: Adamas Pharmaceuticals, Inc.

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