PTC Therapeutics Provides Corporate Update and Reports Third Quarter 2024 Financial Results
- Strong revenue performance, supporting increase in full-year revenue guidance to $750-800 million -
- Regulatory filings for sepiapterin, Translarna(TM) and AADC gene therapy under review by FDA -
- On track to achieve remaining 2024 clinical and regulatory milestones, including NDA submission for vatiquinone -
WARREN, N.J., Nov. 7, 2024 /PRNewswire/ -- PTC Therapeutics, Inc., (NASDAQ: PTCT) today announced a corporate update and financial results for the third quarter ending September 30, 2024.
"I am proud of our team's strong execution," said Matthew Klein, M.D., Chief Executive Officer. "We continue to achieve excellent revenue performance allowing us to raise full-year revenue guidance. In addition, we have submitted three approval applications to FDA so far this year, all of which have been accepted for review, and plan a fourth submission for vatiquinone for Friedreich ataxia in December. We are on our way to accomplishing all of our 2024 objectives and are in a strong financial position to execute on our long-term strategic plans."
Key Corporate Updates:
-- Third quarter 2024 total revenue of $197 million
-- Third quarter 2024 revenue for the DMD franchise was $124 million
-- Translarna(TM) (ataluren) net product revenue was $72 million,
driven by continued access for patients in existing geographies,
continued geographic expansion, high compliance and adherence, and
dose adjustments.
-- Emflaza(®) (deflazacort) net product revenue was $52 million,
driven by new patient starts, continued brand loyalty, high
compliance and adherence, and dose adjustments.
Key Clinical and Regulatory Milestones:
-- PTC submitted an NDA to the FDA for sepiapterin for the treatment of
PKU. The file was accepted for review, and the regulatory action date is
set for July 29, 2025.
-- PTC resubmitted the NDA for Translarna for the treatment of nmDMD; the
file was accepted, and a regulatory action date was not provided.
-- The BLA for PTC's gene therapy for AADC deficiency remains on schedule
for a regulatory action date of November 13, 2024.
-- PTC received Fast Track Designation for the PTC518 Huntington's disease
program.
-- PTC plans to submit an NDA for vatiquinone for the treatment of
Friedreich ataxia in December 2024.
-- PTC expects to share topline data for the CardinALS trial of
utreloxastat for the treatment of ALS in the fourth quarter of 2024.
Third Quarter 2024 Financial Highlights:
-- Total revenues were $196.8 million for the third quarter of 2024,
compared to $196.6 million for the third quarter of 2023.
-- Total revenue includes net product revenue across the commercial
portfolio of $135.4 million for the third quarter of 2024, compared to
$144.0 million for the third quarter of 2023. Total revenue also
includes royalty and manufacturing revenue of $61.4 million in the third
quarter of 2024, compared to $52.5 million for the third quarter of
2023.
-- Translarna net product revenues were $72.3 million for the third quarter
of 2024, compared to $69.0 million for the third quarter of 2023.
-- Emflaza net product revenues were $51.9 million for the third quarter of
2024, compared to $67.4 million for the third quarter of 2023.
-- Roche reported Evrysdi(®) 2024 year-to-date sales of approximately CHF
1.2 billion, resulting in royalty revenue of $61.4 million to PTC for
the third quarter of 2024, compared to $50.2 million for the third
quarter of 2023.
-- Based on U.S. GAAP (Generally Accepted Accounting Principles), GAAP R&D
expenses were $161.4 million for the third quarter of 2024, compared to
$164.2 million for the third quarter of 2023. The decrease in research
and development expenses reflects strategic portfolio prioritization, as
PTC continues to focus its resources on its differentiated,
high-potential R&D programs. Included in third quarter 2024 R&D expense
is $50.0 million in regulatory success-based milestones related to the
Censa acquisition.
-- Non-GAAP R&D expenses were $152.0 million for the third quarter of 2024,
excluding $9.4 million in non-cash, stock-based compensation expense,
compared to $150.2 million for the third quarter of 2023, excluding
$14.0 million in non-cash, stock-based compensation expense.
-- GAAP SG&A expenses were $73.5 million for the third quarter of 2024,
compared to $80.9 million for the third quarter of 2023. The decrease in
selling, general and administrative expenses reflects lower employee
costs as a result of the reduction in workforce in 2023.
-- Non-GAAP SG&A expenses were $63.1 million for the third quarter of 2024,
excluding $10.3 million in non-cash, stock-based compensation expense,
compared to $67.9 million for the third quarter of 2023, excluding $13.0
million in non-cash, stock-based compensation expense.
-- Change in the fair value of deferred and contingent consideration was a
loss of $0.7 million for the third quarter of 2024, compared to a loss
of $1.5 million for the third quarter of 2023.
-- Tangible asset impairment and losses (gains) on transactions, net, was a
loss of $1.8 million for the third quarter of 2024, compared to $0.0
million for the third quarter of 2023. These results were primarily
related to fixed asset impairments.
-- Net loss was $106.7 million for the third quarter of 2024, compared to
net loss of $133.0 million for the third quarter of 2023.
-- Cash, cash equivalents, and marketable securities was $1,013.4 million
on September 30, 2024, compared to $876.7 million on December 31, 2023.
-- Shares issued and outstanding as of September 30, 2024, were 76,952,124.
PTC Updates Full Year 2024 Financial Guidance:
-- PTC anticipates total revenues for full year 2024 to be between $750
million and $800 million.
-- PTC anticipates GAAP R&D and SG&A expenses for full year 2024 to be
between $740 million and $835 million, including expected R&D expense
milestone payments of up to $65 million.
-- PTC anticipates non-GAAP R&D and SG&A expenses for full year 2024 to be
between $660 million and $755 million, including expected R&D expense
milestone payments of up to $65 million and excluding estimated
non-cash, stock-based compensation expense of $80 million.
-- PTC anticipates up to $90 million of payments for full year 2024 upon
achievement of potential regulatory success-based milestones from
previous acquisitions, of which up to $65 million will be recorded as
R&D operating expenses. As of September 30, 2024, $85 million in
milestones have been achieved, of which $65 million has been recorded as
R&D operating expenses and $20 million as contingent consideration
payable.
Non-GAAP Financial Measures:
In this press release, the financial results of PTC are provided in accordance with GAAP and using certain non-GAAP financial measures. In particular, the non-GAAP R&D and SG&A expense financial measures exclude non-cash, stock-based compensation expense. These non-GAAP financial measures are provided as a complement to financial measures reported in GAAP because management uses these non-GAAP financial measures when assessing and identifying operational trends. In management's opinion, these non-GAAP financial measures are useful to investors and other users of PTC's financial statements by providing greater transparency into the historical and projected operating performance of PTC and the company's future outlook. Non-GAAP financial measures are not an alternative for financial measures prepared in accordance with GAAP. Quantitative reconciliations of the non-GAAP financial measures to their respective closest equivalent GAAP financial measures are included in the table below.
PTC Therapeutics, Inc.
Consolidated Statements of Operations
(In thousands, except share and per share data)
Three Months Ended Nine Months Ended September
September 30, 30,
2024 2023 2024 2023
Revenues:
Net product revenue $
135,421 $
144,038 $
446,245 $
506,187
Collaboration revenue - 6
Royalty revenue 61,365 50,173 145,702 117,857
Manufacturing revenue 2,365 1,661 6,716
Total revenues 196,786 196,576 593,608 630,766
Operating expenses:
Cost of product sales, excluding amortization of acquired 10,848 9,493 41,115 36,368
intangible assets
Amortization of acquired intangible asset 3,036 58,649 57,431 145,461
Research and development (1) 161,412 164,212 409,710 545,210
Selling, general and administrative (2) 73,456 80,886 216,228 256,249
Change in the fair value of deferred and contingent 700 1,500 5,700 (125,000)
consideration
Intangible asset impairment - 217,800
Tangible asset impairment and losses (gains) on transactions, 1,844 3,605
net
Total operating expenses 251,296 314,740 733,789 1,076,088
Loss from operations (54,510) (118,164) (140,181) (445,322)
Interest expense, net (41,609) (28,160) (125,933) (84,905)
Other expense, net (1,872) (20,266) (2,306) (8,832)
Loss before income tax (expense) benefit (97,991) (166,590) (268,420) (539,059)
Income tax (expense) benefit (8,663) 33,620 (28,989) 68,247
Net loss attributable to common stockholders $
(106,654) $
(132,970) $
(297,409) $
(470,812)
Weighted-average shares outstanding:
Basic and diluted (in shares) 76,925,523 75,377,997 76,716,340 74,618,611
Net loss per share-basic and diluted (in dollars per share) $
(1.39) $
(1.76) $
(3.88) $
(6.31)
(1) Research and development reconciliation
GAAP research and development $
161,412 $
164,212 $
409,710 $
545,210
Less: share-based compensation expense 9,416 13,986 27,810 44,828
Non-GAAP research and development $
151,996 $
150,226 $
381,900 $
500,382
(2) Selling, general and administrative reconciliation
GAAP selling, general and administrative $
73,456 $
80,886 $
216,228 $
256,249
Less: share-based compensation expense 10,339 12,956 29,566 40,300
Non-GAAP selling, general and administrative $
63,117 $
67,930 $
186,662 $
215,949
PTC Therapeutics, Inc.
Summary Consolidated Balance Sheets
(in thousands, except share data)
September 30, 2024 December 31, 2023
Cash, cash equivalents and marketable securities $
1,013,357 $
876,739
Total assets $
1,842,236 $
1,895,698
Total debt $
285,106 $
284,213
Total deferred revenue 801
Total liability for sale of future royalties 2,082,051 1,814,097
Total liabilities $
2,896,588 $
2,714,253
Total stockholders' deficit (76,952,124 and 75,708,889 $
(1,054,352) $
(818,555)
common shares issued and outstanding at September 30,
2024 and December 31, 2023, respectively)
Total liabilities and stockholders' deficit $
1,842,236 $
1,895,698
PTC Therapeutics, Inc.
Reconciliation of GAAP Milestone Payments Full Year 2024
(in millions)
Full Year
2024
(in millions)
Projected GAAP R&D Expense Related Milestone Payments $
65
Projected GAAP Contingent Consideration Payable Related Milestone Payments 25
Total Projected GAAP Milestone Payments $
90
PTC Therapeutics, Inc.
Reconciliation of GAAP to Non-GAAP Projected Full Year 2024 R&D and SG&A Expense
(in millions)
Low End High End
of Range of Range
Projected GAAP R&D and SG&A Expense $
740 $
835
Less: projected non-cash, stock-based compensation expense 80 80
Projected non-GAAP R&D and SG&A expense $
660 $
755
Acronyms:
AADC: Aromatic l-Amino Acid Decarboxylase
ALS: Amyotrophic Lateral Sclerosis
BLA: Biologics License Application
CHF: Confoederatio Helvetica Francs (Swiss francs)
DMD: Duchenne Muscular Dystrophy
FA: Friedreich Ataxia
FDA: U.S. Food and Drug Administration
GAAP: Generally Accepted Accounting Principles
HD: Huntington's Disease
NDA: New Drug Application
nmDMD: Nonsense Mutation Duchenne Muscular Dystrophy
PKU: Phenylketonuria
R&D: Research and Development
SG&A: Selling, General, and Administrative
Today's Conference Call and Webcast Reminder:
To access the call by phone, please click here to register and you will be provided with dial-in details. To avoid delays, we recommend participants dial in to the conference call 15 minutes prior to the start of the call. The webcast conference call can be accessed on the Investor section of the PTC website at https://ir.ptcbio.com/events-presentations. A replay of the call will be available approximately two hours after completion of the call and will be archived on the company's website for 30 days following the call.
About PTC Therapeutics, Inc.
PTC is a global biopharmaceutical company focused on the discovery, development and commercialization of clinically differentiated medicines that provide benefits to children and adults living with rare disorders. PTC's ability to globally commercialize products is the foundation that drives investment in a robust and diversified pipeline of transformative medicines and our mission to provide access to best-in-class treatments for patients who have an unmet medical need. The company's strategy is to leverage its strong scientific expertise and global commercial infrastructure to maximize value for its patients and other stakeholders. To learn more about PTC, please visit us at www.ptcbio.com and follow us on Facebook, X, and LinkedIn.
For More Information:
Investors:
Ellen Cavaleri
+1 (615) 618-6228
ecavaleri@ptcbio.com
Media:
Jeanine Clemente
+1 (908) 912-9406
jclemente@ptcbio.com
Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. All statements contained in this release, other than statements of historic fact, are forward-looking statements, including the information provided under the heading "PTC Updates Full Year 2024 Financial Guidance", including with respect to (i) 2024 total revenue guidance, (ii) 2024 GAAP and non-GAAP R&D and SG&A expense guidance and (iii) 2024 acquisition related milestone payment guidance, and statements regarding: the future expectations, plans and prospects for PTC, including with respect to the expected timing of clinical trials and studies, availability of data, regulatory submissions and responses, commercialization and other matters with respect to its products and product candidates; PTC's strategy, future operations, future financial position, future revenues, projected costs; the extent, timing and financial aspects of our strategic pipeline prioritization and reductions in workforce; and the objectives of management. Other forward-looking statements may be identified by the words, "guidance", "plan," "anticipate," "believe," "estimate," "expect," "intend," "may," "target," "potential," "will," "would," "could," "should," "continue," and similar expressions.
PTC's actual results, performance or achievements could differ materially from those expressed or implied by forward-looking statements it makes as a result of a variety of risks and uncertainties, including those related to: the outcome of pricing, coverage and reimbursement negotiations with third party payors for PTC's products or product candidates that PTC commercializes or may commercialize in the future; PTC's ability to maintain its marketing authorization of Translarna for the treatment of nmDMD in Brazil, Russia, the European Economic Area (EEA) and other regions, including whether the European Commission adopts the negative opinion from the Committee for Medicinal Products for Human Use (CHMP) for the conditional marketing authorization for Translarna in the EEA, or PTC's ability to identify other potential mechanisms by which it may provide Translarna to nmDMD patients in the EEA; PTC's ability to use the clinical data from its international drug registry study and real-world evidence concerning Translarna's benefits to support a continued marketing authorization for Translarna for the treatment of nmDMD in the EEA; PTC's ability to use the results of Study 041, a randomized, 18-month, placebo-controlled clinical trial of Translarna for the treatment of nmDMD followed by an 18-month open-label extension, and from its international drug registry study to support a marketing approval for Translarna for the treatment of nmDMD in the United States; whether investigators agree with PTC's interpretation of the results of clinical trials and the totality of clinical data from its trials in Translarna; expectations with respect to Upstaza, including any regulatory submissions and potential approvals, commercialization, manufacturing capabilities, the potential achievement of development, regulatory and sales milestones and contingent payments that PTC may be obligated to make; expectations with respect to sepiapterin, including any regulatory submissions and potential approvals, commercialization, the potential achievement of development, regulatory and sales milestones and contingent payments that PTC may be obligated to make; expectations with respect to the commercialization of Evrysdi under PTC's SMA collaboration; expectations with respect to the commercialization of Tegsedi and Waylivra; the timing of and actual expenses incurred in connection with the discontinuation of PTC's preclinical and early research programs in gene therapy and reductions in workforce, which may be in different periods and may be materially higher than estimated; the savings that may result from the discontinuation of PTC's strategic pipeline prioritization and reductions in workforce, which may be materially less than expected; significant business effects, including the effects of industry, market, economic, political or regulatory conditions; changes in tax and other laws, regulations, rates and policies; the eligible patient base and commercial potential of PTC's products and product candidates; PTC's scientific approach and general development progress; PTC's ability to satisfy its obligations under the terms of its lease agreements; the sufficiency of PTC's cash resources and its ability to obtain adequate financing in the future for its foreseeable and unforeseeable operating expenses and capital expenditures; and the factors discussed in the "Risk Factors" section of PTC's most recent Annual Report on Form 10-K, as well as any updates to these risk factors filed from time to time in PTC's other filings with the SEC. You are urged to carefully consider all such factors.
As with any pharmaceutical under development, there are significant risks in the development, regulatory approval and commercialization of new products. There are no guarantees that any product will receive or maintain regulatory approval in any territory, or prove to be commercially successful, including Translarna, Emflaza, Upstaza, Evrysdi, Tegsedi, Waylivra or sepiapterin.
The forward-looking statements contained herein represent PTC's views only as of the date of this press release and PTC does not undertake or plan to update or revise any such forward-looking statements to reflect actual results or changes in plans, prospects, assumptions, estimates or projections, or other circumstances occurring after the date of this press release except as required by law.
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