Kite Pharma, Inc.
May 9, 2016

Kite Pharma Reports First Quarter 2016 Financial Results

Durable Treatment Effect of KTE-C19 Supported by Updated Patient Follow-up in ZUMA-1 Trial Presented at Annual Meeting of the American Association of Cancer Research (AACR)

Interim Results from Pivotal Phase 2 Portion of KTE-C19 ZUMA-1 Trial Expected in Second Half of 2016, to Support Planned BLA Filing in Late 2016 and Product Launch in 2017

SANTA MONICA, Calif.--(BUSINESS WIRE)-- Kite Pharma, Inc. (Nasdaq: KITE), a clinical-stage biopharmaceutical company focused on developing engineered autologous cell therapy (eACT™) products for the treatment of cancer, today provided a corporate update and reported first quarter 2016 financial results for the period ended March 31, 2016.

"Our ZUMA-1 update at AACR last month highlighted the potential of KTE-C19, our breakthrough immunotherapy candidate, to put patients with chemorefractory aggressive non-Hodgkin lymphoma (NHL), a patient population burdened with a short life expectancy and limited treatment options, into a durable complete remission," noted Arie Belldegrun, M.D., FACS, Chairman, President, and Chief Executive Officer. "We remain on track to provide interim data from the pivotal phase 2 portion of ZUMA-1 later this year and plan to submit the KTE-C19 registration filing to the U.S. Food and Drug Administration (FDA) by the end of 2016."

"Our commitment to delivering a breakthrough personalized cell therapy to cancer patients now extends fully to our manufacturing and market planning areas. Validation and qualification activities at our state-of-the-art commercial manufacturing facility are underway. The commercial team is actively evaluating a broad range of market and payor strategies for making KTE-C19 available to patients with a significant unmet need."

First Quarter 2016 and Recent Highlights

First Quarter 2016 Financial Results

About Kite Pharma
Kite Pharma, Inc., is a clinical-stage biopharmaceutical company engaged in the development of novel cancer immunotherapy products, with a primary focus on engineered autologous cell therapy (eACT™) designed to restore the immune system's ability to recognize and eradicate tumors. Kite is based in Santa Monica, CA. For more information on Kite Pharma, please visit www.kitepharma.com. Sign up to follow @KitePharma on Twitter at http://www.twitter.com/kitepharma.

Kite Pharma, Inc. Forward-Looking Statements
This press release contains forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The press release may, in some cases, use terms such as "predicts," "believes," "potential," "proposed," "continue," "estimates," "anticipates," "expects," "plans," "intends," "may," "could," "might," "will," "should" or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Forward-looking statements include statements regarding intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things: the ability and timing of obtaining interim KTE-C19 data, filing a Biologics License Application with the FDA, obtaining regulatory approval based on the studies of KTE-C19, commercially launching KTE-C19, initiating the Phase 1b/2 combination study and filing an IND application for a TCR product candidate that targets a MAGE-A3 antigen, expectations regarding the clinical effectiveness and safety of KTE-C19, the ability and willingness of the NCI to continue research and development activities pursuant to the CRADAs, and Kite's 2016 financial guidance. Various factors may cause differences between Kite's expectations and actual results as discussed in greater detail in Kite's filings with the Securities and Exchange Commission, including without limitation in its Form 10-Q for the quarter ended March 31, 2016. Any forward-looking statements that are made in this press release speak only as of the date of this press release. Kite assumes no obligation to update the forward-looking statements whether as a result of new information, future events or otherwise, after the date of this press release.

Conference Call and Webcast Details
Kite will host a live conference call and webcast today at 4:30PM Eastern Time (1:30PM Pacific Time) to discuss financial results and provide a business update. To access the live conference call by telephone, please dial (877) 301-8565 (U.S.) or (678) 562-4240 (International). The conference ID number for the live call is 89570152. The webcast will be made available on the Company's website at www.kitepharma.com under the Investors tab in the Events and Presentations section. Following the live audio webcast, a replay will be available on the Company's website for approximately 30 days.

 

KITE PHARMA, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

      MARCH 31, 2016         DECEMBER 31,
(unaudited) 2015
ASSETS
Current assets
Cash, cash equivalents, and marketable securities $ 577,421 $ 614,722
Prepaid expenses and other current assets   15,066   16,371
Total current assets 592,487 631,093
Property and equipment, net 40,462 30,116
Intangible assets and goodwill, net 37,167 36,740
Other assets   9,135   10,014
Total assets $ 679,251 $ 707,963
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 9,614

$

8,049

Deferred revenue 16,250 16,333
Accrued expenses and other current liabilities   11,272   11,787
Total current liabilities 37,136 36,169
Deferred revenue, less current portion 28,900 32,176
Contingent consideration 16,869 16,080
Other non-current liabilities   6,950   7,778
Total liabilities   89,855   92,203
Total stockholders' equity   589,396   615,760
Total liabilities and stockholders' equity $ 679,251 $ 707,963
 
     

KITE PHARMA, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

(unaudited)

 
THREE MONTHS ENDED
MARCH 31,
  2016             2015  
Revenue:
Revenue $ 5,127 $ 2,881
Operating expenses:
Research and development

 

34,414 9,260
General and administrative

 

16,494     9,171  
Total operating expenses

 

50,908     18,431  
Loss from operations

 

(45,781 ) (15,550 )
Other income (expense):
Interest income

 

816 466
Interest expense

 

(126 ) (4 )
Other expense

 

(34 )   -  
Total other income

 

656     462  
Benefit from income taxes

 

1,209     -  
Net loss $ (43,916 ) $ (15,088 )
Net loss per share, basic and diluted $ (0.90 ) $ (0.36 )
Weighted-average shares outstanding, basic and diluted

 

48,832     42,466  
 

Note Regarding Use of Non-GAAP Financial Measures
Kite provides non-GAAP net loss and non-GAAP net loss per share that include adjustments to GAAP figures. These adjustments to GAAP net loss exclude non-cash stock-based compensation expense. Kite believes that these non-GAAP financial measures, when considered together with the GAAP figures, can enhance an overall understanding of Kite's financial performance. The non-GAAP financial measures are included with the intent of providing investors with a more complete understanding of Kite's operating results. In addition, these non-GAAP financial measures are among the indicators Kite's management uses for planning purposes and measuring Kite's performance. These non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The non-GAAP financial measures used by Kite may be calculated differently from, and therefore may not be comparable to, non-GAAP financial measures used by other companies. Please refer below for a reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures.

     

KITE PHARMA, INC.

Reconciliation of GAAP to Non-GAAP Net Loss

(In thousands, except per share amounts)

(unaudited)

 
THREE MONTHS ENDED
MARCH 31,
  2016             2015  
Net loss - GAAP $ (43,916 ) $ (15,088 )
Adjustments:
Non-cash stock-based compensation expense   14,864     6,677  
Net loss - Non-GAAP $ (29,052 ) $ (8,411 )
 
Net loss per share, basic and diluted - GAAP $ (0.90 ) $ (0.36 )
Adjustments:
Non-cash stock-based compensation expense per share   0.30     0.16  

Net loss per share, basic and diluted - Non-GAAP

$ (0.60 ) $ (0.20 )
Weighted average common shares outstanding, basic and diluted   48,832     42,466  
 

Kite Pharma, Inc.
Cynthia M. Butitta
Chief Financial Officer & Chief Operating Officer
310-824-9999
or
Greg Mann
VP, Investor Relations
gmann@kitepharma.com
or
For Media:
Burns McClellan
Justin Jackson, 212-213-0006
jjackson@burnsmc.com

Source: Kite Pharma, Inc.

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