Atara Biotherapeutics
Aug 7, 2017

Atara Biotherapeutics Announces Second Quarter 2017 Financial Results and Recent Highlights

SOUTH SAN FRANCISCO, Calif., Aug. 07, 2017 (GLOBE NEWSWIRE) -- Atara Biotherapeutics, Inc. (Nasdaq:ATRA), a leading "off-the-shelf" T-cell immunotherapy company developing novel treatments for patients with cancer and multiple sclerosis (MS), today reported financial results for the second quarter of 2017 and recent operational highlights.

"In the second quarter, we made significant progress toward the initiation of two Phase 3 clinical studies for ATA129, anticipated to begin in the second half of 2017," said Isaac Ciechanover, Chief Executive Officer and President of Atara Biotherapeutics. "We also continue to build Atara's commercial capabilities, highlighted by the recent appointment of Dr. Derrell Porter as Global Commercial Head and the establishment of our EU headquarters in Zug, Switzerland.  Looking forward, as we advance our innovative pipeline of T-cell immunotherapies for cancer and multiple sclerosis, we anticipate the opportunity to present new data at major medical conferences this year and throughout 2018."

Recent Highlights and Anticipated Upcoming Milestones

Second Quarter 2017 Financial Results

About EBV-PTLD
Since its discovery as the first human oncovirus, Epstein-Barr virus (EBV) has been implicated in the development of a wide range of lymphoproliferative disorders, including lymphomas and other cancers.  EBV is widespread in all human populations and persists as a lifelong, asymptomatic infection.  In immunocompromised patients, such as those undergoing hematopoietic cell transplants (HCT) or solid organ transplants (SOT), EBV-associated post-transplant lymphoproliferative disorder (EBV-PTLD), represents a life-threatening condition. Median overall survival in EBV-PTLD patients after HCT who have failed rituximab-based first line therapy is 16-56 days.  In EBV-PTLD following SOT, patients failing rituximab experience increased chemotherapy-induced treatment-related mortality compared to other lymphoma patients.  One and two-year survival in high-risk EBV-PTLD patents after SOT is 36% and 0%, respectively.

About ATA129
Atara's most advanced T-cell immunotherapy in development, ATA129, is a potential treatment for cancer patients with rituximab refractory EBV-PTLD as well as other EBV positive hematologic and solid tumors including nasopharyngeal carcinoma (NPC).  In February 2015, FDA granted ATA129 Breakthrough Therapy Designation for EBV-PTLD following allogeneic hematopoietic cell transplant (HCT) and in October 2016, ATA129 was accepted into the EMA Priority Medicines (PRIME) regulatory pathway for the same indication, providing enhanced regulatory support.  In addition, ATA129 also has orphan status in the U.S. and EU.  Phase 3 studies of ATA129 in EBV-PTLD after HCT or solid organ transplant (SOT) are expected to start in 2017, and a Phase 1/2 study in NPC is planned for 2018. ATA129 is also available to eligible patients with EBV-positive tumors through an ongoing multicenter expanded access protocol (EAP) clinical study.  Atara expects to submit ATA129 for conditional marketing authorization in EBV-PTLD following HCT in the EU in 2018.

About Progressive Multiple Sclerosis
Progressive Multiple Sclerosis (PMS) is a severe disease with few therapeutic options. PMS comprises two conditions, both characterized by persistent progression and worsening of MS symptoms and physical disability over time. This is distinct from Relapsing Remitting MS (RRMS) where flares of the disease are followed by periods of recovery and quiescence. Primary Progressive MS (PPMS) occurs when continuous progressive disease is present at diagnosis.  Secondary Progressive MS (SPMS) initially begins as RRMS and develops into a progressive form. There is substantial unmet medical need for new and effective therapies for patients with PPMS and SPMS.  Most treatment options that work well in reducing flares in RRMS have not been shown to be effective in slowing or reversing disability in PMS.

About ATA188
Epstein-Barr Virus (EBV) is associated with a wide range of hematologic malignancies and solid tumors, as well as certain autoimmune conditions such as multiple sclerosis (MS).  ATA188, the Company's next generation T-cell immunotherapy for autoimmune diseases, has the potential to selectively target and eliminate EBV-infected B-cells and plasma cells in the central nervous system that may catalyze autoimmune responses and MS pathophysiology. As reported at the American Academy of Neurology (AAN) meeting in April 2017, the first study to test adoptive immunotherapy in patients with MS showed that autologous ATA188 led to encouraging clinical improvements in MS symptoms that correlated with the EBV reactivity of ATA188 in 3 of 6 patients. No patient in the study experienced progression of disability or worsening in Expanded Disability Status Scale (EDSS). Additional reported results are available at this link. In addition to the ongoing Phase 1 clinical study of autologous ATA188 in progressive forms of MS, a Phase 1 allogeneic ATA188 clinical study is expected to begin in the second half of 2017.

About Atara Biotherapeutics, Inc.
Atara Biotherapeutics, Inc. (@Atarabio) is a leading cell therapy company developing novel treatments for patients with cancer and multiple sclerosis (MS). The Company's "off-the-shelf", or allogeneic, T-cells are engineered from donors with healthy immune function and allow for rapid delivery from inventory to patients without a requirement for pretreatment. Atara's T-cell immunotherapies are designed to precisely recognize and eliminate cancerous or diseased cells without affecting normal, healthy cells. Atara's most advanced T-cell immunotherapy in development, ATA129, is being developed for the treatment of cancer patients with rituximab refractory Epstein-Barr virus (EBV) associated post-transplant lymphoproliferative disorder (EBV-PTLD), as well as other EBV positive hematologic and solid tumors including nasopharyngeal carcinoma (NPC). ATA188, the Company's next generation T-cell immunotherapy for autoimmune diseases, selectively targets specific EBV antigens believed to be important for the potential treatment of multiple sclerosis (MS). A Phase 1 clinical study of autologous ATA188 in progressive forms of MS is ongoing, and a Phase 1 allogeneic ATA188 clinical study is expected to begin in the second half of 2017. Atara's clinical pipeline also includes ATA520 targeting Wilms Tumor 1 (WT1) and ATA230 directed against cytomegalovirus (CMV).

Forward-Looking Statements
This press release contains or may imply "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. For example, forward-looking statements include statements regarding: the Company's expected initiation of two Phase 3 clinical trials in the second half of 2017 following completion of comparability testing and submission of the comparability data to FDA; the Company's belief that it has been successful in producing ATA129 drug product to support its Phase 3 clinical studies and that it is generating comparability data using the Company's refined assays and its CMO's produced cell lines; the Company's expectation of providing additional details on the Phase 3 clinical study designs at the time of initiation of the trials; the Company's expected submission of a conditional marketing authorization application in the EU in 2018 for ATA129; the Company's belief that it is moving towards the potential commercialization of ATA129 and the build out of commercial capabilities; the Company's expected commencement of a Phase 1/2 trial with ATA129 and Merck's KEYTRUDA® in 2018; the Company's belief that it will expand clinical development of autologous and allogeneic ATA188 in MS, including a planned Phase I allogeneic ATA188 clinical study expected to initiate in the second half of 2017; the Company's belief that it and its collaborating partners will have the opportunity to present new data at major medical conferences this year and throughout 2018, including data from the Company's multicenter EAP clinical study; and the Company's belief that its cash and investments as of June 30, 2017 will be sufficient to fund its planned operations into the first quarter of 2019.  Because such statements deal with future events and are based on Atara Biotherapeutics' current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of Atara Biotherapeutics could differ materially from those described in or implied by the statements in this press release. These forward-looking statements are subject to risks and uncertainties, including those discussed under the heading "Risk Factors" in Atara Biotherapeutics' quarterly report on Form 10-Q filed with the Securities and Exchange Commission (SEC) on May 4, 2017, including the documents incorporated by reference therein, and subsequent filings with the SEC. Except as otherwise required by law, Atara Biotherapeutics disclaims any intention or obligation to update or revise any forward-looking statements, which speak only as of the date hereof, whether as a result of new information, future events or circumstances or otherwise.

 
Atara Biotherapeutics, Inc. 
Condensed Consolidated Balance Sheets
(Unaudited) 
(In thousands)
 
  June 30, December 31,
   2017   2016 
Assets    
Current assets:    
Cash and cash equivalents $64,237  $47,968 
Short-term investments  152,659   207,714 
Restricted cash - short-term  194   194 
Prepaid expenses and other current assets  5,402   4,677 
Total current assets  222,492   260,553 
Property and equipment, net  20,287   3,259 
Restricted cash - long-term  1,200    
Other assets  176   102 
Total assets $244,155  $263,914 
     
Liabilities and stockholders' equity     
Current liabilities:    
Accounts payable $5,243  $2,778 
Accrued compensation  3,262   3,745 
Accrued research and development expenses  2,071   2,408 
Other accrued liabilities  905   744 
Total current liabilities  11,481   9,675 
Long-term liabilities  11,530   503 
Total liabilities  23,011   10,178 
     
Commitments and contingencies    
     
Stockholders' equity:    
Common stock  3   3 
Additional paid-in capital  451,496   431,075 
Accumulated other comprehensive loss  (114)   (183) 
Accumulated deficit  (230,241)   (177,159) 
Total stockholders' equity  221,144   253,736 
Total liabilities and stockholders' equity $244,155  $263,914 
         


Atara Biotherapeutics, Inc. 
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)
 
   Three Months Ended June 30,  Six Months Ended June 30,
   2017   2016   2017   2016 
Operating expenses:        
Research and development $18,296  $12,991  $35,837  $24,238 
General and administrative  9,613   6,494   18,233   12,308 
Total operating expenses  27,909   19,485   54,070   36,546 
Loss from operations  (27,909)   (19,485)   (54,070)   (36,546) 
Interest and other income, net  481   605   990   1,108 
Loss before provision for income taxes  (27,428)   (18,880)   (53,080)   (35,438) 
Less: Provision for income taxes        2   3 
Net loss $(27,428)  $(18,880)  $(53,082)  $(35,441) 
Other comprehensive loss:        
Unrealized gain on available-for-sale securities  38   142   69   711 
Comprehensive loss $(27,390)  $(18,738)  $(53,013)  $(34,730) 
Net loss per common share:        
Basic and diluted net loss per common share $(0.94)  $(0.66)  $(1.82)  $(1.24) 
         
Weighted-average shares outstanding used to calculate basic and diluted net loss per common share  29,247   28,665   29,152   28,603 
                 


INVESTOR & MEDIA CONTACTS:

Investors:
John Craighead, Atara Biotherapeutics
650-491-5806
jcraighead@atarabio.com

Steve Klass, Burns McClellan
212-213-0006 x331
sklass@burnsmc.com

Media:
Justin Jackson, Burns McClellan
212-213-0006 x327
jjackson@burnsmc.com