Press Release

Adamas Reports Third Quarter 2015 Financial Results

November 12, 2015 at 4:05 PM EST

EMERYVILLE, Calif., Nov. 12, 2015 (GLOBE NEWSWIRE) -- Adamas Pharmaceuticals, Inc. (Nasdaq:ADMS) today reported financial results for the third quarter of 2015.  The company reported a net loss attributable to common stockholders of $14.9 million, or $0.81 per share, for the quarter ended September 30, 2015.  In the same period last year, the company reported a net loss attributable to common stockholders of $9.6 million, or $0.57 per share.  Adamas ended the current quarter with $132.6 million in cash, cash equivalents, and available-for-sale securities compared to $158.7 million at December 31, 2014.

"We are advancing our ADS-5102 program, including the Phase 3 studies for the treatment of levodopa-induced dyskinesia (LID) associated with Parkinson's disease and enrolling patients in the ongoing Phase 2 trial in MS Gait," stated Gregory T. Went, Ph.D., Chairman and Chief Executive Officer of Adamas.  "With the enrollment of the EASE LID study complete, we look forward to finishing enrollment in EASE LID 3 and announcing top-line results from EASE LID.  It is exciting to be pioneering a therapeutic treatment for LID as there are currently no approved medicines for this debilitating movement disorder."

Fiscal 2015 Third Quarter and Nine-month Results

For the quarters ended September 30, 2015 and September 30, 2014, Adamas reported total revenue of $0.8 million and $0.2 million, respectively.  Revenues for both periods included reimbursement of expenses associated with Adamas' collaboration with Forest Laboratories Holdings Limited ("Forest") and government grants and contracts. Research and development expenses for the quarter ended September 30, 2015 were $10.0 million, including $0.8 million in stock-based compensation expense, compared to $5.4 million for the quarter ended September 30, 2014, which included $0.6 million in stock-based compensation expense. The increase in research and development expenses was related to continued investment in the ADS-5102 clinical program. General and administrative expenses for the quarter ended September 30, 2015 were $5.8 million, including $1.8 million in stock-based compensation expense, compared to $4.4 million for the quarter ended September 30, 2014, which included $1.4 million in stock-based compensation expense. The increase in general and administrative expenses was due primarily to higher headcount-related costs associated with expansion of the company's capabilities as a public and pre-commercial company.

For the nine months ended September 30, 2015, the company reported a net loss attributable to common stockholders of $41.1 million, or $2.28 per share.  For the nine months ended September 30, 2014, the company recorded net income attributable to common stockholders of $53,000, or $0.00 per share, during which period Adamas recorded as revenue a $25.0 million development milestone from Forest. For the nine months ended September 30, 2015 and September 30, 2014, Adamas reported total revenues of $1.4 million and $25.5 million, respectively. Research and development expenses for the nine months ended September 30, 2015 were $26.2 million, including $2.3 million in stock-based compensation expense, compared to $13.3 million for the nine months ended September 30, 2014, which included $1.7 million in stock-based compensation expense. General and administrative expenses for the nine months ended September 30, 2015 were $16.6 million, including $4.9 million in stock-based compensation expense, compared to $10.7 million for the nine months ended September 30, 2014, which included $3.2 million in stock-based compensation expense.

For the nine months ended September 30, 2015, Adamas' $26.1 million net use of cash, cash equivalents and available-for-sale securities was impacted by the company's payment of $4.7 million in income taxes in the first quarter of 2015.  This was offset by the issuance of shares under the company's at-the-market (ATM) offering program in June and July, which added $9.7 million in net proceeds to the cash balance reported during this period.

About Adamas Pharmaceuticals

Adamas Pharmaceuticals, Inc. is driven to improve the lives of those affected by chronic disorders of the central nervous system. The company seeks to achieve this by modifying the pharmacokinetic profiles of approved drugs to create novel therapeutics for use alone and in fixed-dose combination products.  Adamas is currently developing ADS-5102, its lead wholly-owned product candidate, for the treatment of levodopa-induced dyskinesia (LID) associated with Parkinson's disease and for the treatment of major symptoms associated with multiple sclerosis in patients with walking impairment. The company's portfolio also includes Namzaric™ and Namenda XR®, two approved products with Forest Laboratories Holdings Limited, an indirect wholly-owned subsidiary of Allergan plc.  Forest is responsible for marketing both products in the United States under an exclusive license from Adamas.  For more information, please visit www.adamaspharma.com.

Namzaric™ is a trademark of Merz Pharma GmbH & Co. KGaA.
Namenda XR® is a registered trademark of Merz Pharma GmbH & Co. KGaA.

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 regarding the ongoing development and advancement of ADS-5102, including completion of enrollment of EASE LID 3, announcement of top-line results of EASE LID, and an ongoing clinical trial for MS gait. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.  Words such as "may," "will," "expect," "anticipate," "estimate," "intend," and similar expressions (as well as other words or expressions referencing future events, conditions, or circumstances) are intended to identify forward-looking statements.  For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in forward-looking statements, including risks relating to research and development activities of ADS-5102, including successful or timely completion of clinical trials or enrollment thereof, as well as risks relating to Adamas' business in general, see Adamas' Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 12, 2015.


-- Financial Tables Attached --


Adamas Pharmaceuticals, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share data)
             
  Three Months Ended  Nine Months Ended
  September 30,  September 30,
  2015 2014 2015 2014
             
Revenue $  768  $  215  $  1,392  $  25,545 
Operating expenses            
Research and development    9,960      5,412     26,198     13,343 
General and administrative    5,803      4,353     16,568     10,724 
Total operating expenses    15,763      9,765     42,766     24,067 
Income (loss) from operations    (14,995)    (9,550)    (41,374)    1,478 
Interest and other income (expense), net    85     (1)    265     (801)
Income (loss) before income taxes    (14,910)    (9,551)    (41,109)    677 
Income tax expense (refund)    (51)    6     3     185 
Net income (loss) $  (14,859) $  (9,557) $  (41,112) $  492 
             
Net income (loss) attributable to common stockholders:            
Basic $  (14,859) $  (9,557) $  (41,112) $  53 
Diluted $  (14,859) $  (9,557) $  (41,112) $  54 
             
Net income (loss) per share attributable to common stockholders:            
Basic $  (0.81) $  (0.57) $  (2.28) $  
Diluted $  (0.81) $  (0.57) $  (2.28) $  
             
Weighted average number of shares used in computing net income (loss) attributable to common stockholders:            
Basic    18,395     16,787     18,001     13,998 
Diluted    18,395     16,787     18,001     16,769 



Adamas Pharmaceuticals, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
       
  September 30,  December 31,
  2015 2014
Assets      
Current assets      
Cash and cash equivalents $  37,118  $  61,446  
Available-for-sale securities    66,330     60,912  
Accounts receivable    936     524  
Prepaid expenses and other current assets    1,070     645  
Total current assets    105,454     123,527  
Property and equipment, net    2,141     1,228  
Available-for-sale securities, non-current    29,145     36,364  
Other assets    38     70  
Total assets $  136,778  $  161,189  
       
Liabilities and stockholders' equity      
Current liabilities      
Accounts payable $  2,856  $  3,685  
Accrued liabilities    7,828     8,595  
Other current liabilities    272     265  
Total current liabilities    10,956     12,545  
Non-current liabilities    1,832     1,570  
Total liabilities    12,788     14,115  
Commitments and Contingencies      
Stockholders' equity      
Common stock, $0.001 par value - 100,000,000 shares authorized, 18,416,369 and 17,551,375 shares issued and
outstanding at September 30, 2015 and December 31, 2014, respectively
    23     22  
Additional paid-in capital    175,406     157,581  
Accumulated other comprehensive income (loss)    22     (180)
Accumulated deficit    (51,461)    (10,349)
Total stockholders' equity    123,990     147,074  
Total liabilities and stockholders' equity  $  136,778  $  161,189  




Adamas Pharmaceuticals, Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
(in thousands)
   
  Nine Months Ended
  September 30,
  2015 2014
Cash flows from operating activities      
Net income (loss) $ (41,112) $  492  
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities      
Depreciation and amortization    306     99 
Stock-based compensation    7,205     4,907 
Change in preferred stock warrant value        983 
Net accretion of discounts and amortization of premiums of available-for-sale securities    850     
Loss on fixed asset disposal       80 
Changes in assets and liabilities      
Accrued interest of available-for-sale securities    (14)    
Prepaid expenses and other assets    (393)    (1,077)
Accounts receivable    (412)    9 
Accounts payable    (834)    936 
Accrued liabilities and other liabilities    (469)    811 
Net cash provided by (used in) operating activities    (34,873)    7,240 
Cash flows from investing activities      
Purchases of property and equipment    (1,131)    (194)
Purchases of available-for-sale securities    (32,578)    
Maturities of available-for-sale securities    33,745     
Net cash provided by (used in) investing activities    36     (194)
Cash flows from financing activities      
Net proceeds from public offerings    9,657    42,632 
Proceeds from issuance of common stock upon exercise of stock options   671    250 
Proceeds from employee stock purchase plan    181     
Proceeds from issuance of common and preferred stock upon exercise of warrants        1,986 
Net cash provided by financing activities    10,509     44,868 
Net increase (decrease) in cash and cash equivalents    (24,328)    51,914 
Cash and cash equivalents at beginning of period    61,446     85,612 
Cash and cash equivalents at end of period $  37,118  $  137,526 
       

 

For questions, please contact:

Julie Wood
Corporate Communications & Investor Relations
Adamas Pharmaceuticals, Inc. 
Phone: 510-450-3528