•

Two Phase 3 clinical studies are ongoing (MATCH and ALLELE) to evaluate tab-cel™ (tabelecleucel) in patients with Epstein-Barr virus associated post-transplant lymphoproliferative disorder (EBV+ PTLD) who have failed rituximab following hematopoietic cell transplant (HCT) or solid organ transplant (SOT).

o

11 clinical sites for the MATCH and 13 for the ALLELE studies are now open for enrollment in the U.S. with additional sites expected to open in the U.S. and other geographies.

•

Presented positive long-term outcomes including durable remissions and encouraging safety findings from two Phase 2 studies of tab-cel™ in EBV+ PTLD at the 23rd Congress of the European Hematology Association (EHA).

o

One- and three-year overall survival (OS) for tab-cel™ treated patients with EBV+ PTLD following HCT who failed rituximab (n=35) was 68% and 55%, respectively. Median OS was not reached after a median of 23.3 months of follow-up in this patient group.

o

In patients with EBV+ PTLD following SOT who failed rituximab, the one- and three-year OS after treatment with tab-cel™ (n=14) was 64% and 43%, respectively. Median survival in this patient group was 21.3 months.

o

None of the EBV+ PTLD patients who had complete or partial responses (CR or PR) after treatment with tab-cel™ died of EBV+ PTLD.  Two-year OS for these responding patients was 83% and 86% following HCT (n=24) and SOT (n=7), respectively.

o

Tab-cel™ was associated with durable objective response rate (CR plus PR) of 69% and 50% in patients with EBV+ PTLD following HCT and SOT, respectively, who have failed rituximab.

•

U.S. Food and Drug Administration (FDA) accepted IND to initiate a Phase 1/2 clinical study of tab-cel™ in combination with Merck's anti-PD-1 (programmed death receptor-1) therapy, KEYTRUDA® (pembrolizumab), in patients with platinum-resistant or recurrent EBV-associated nasopharyngeal carcinoma (NPC) that Atara plans to initiate in the second half of 2018.

•

Expect to present updated tab-cel™ results in patients with EBV+ cancers in the second half of 2018.

•

Announced publication of new research findings advancing the understanding of Epstein-Barr Virus (EBV) infection in the MS-affected brain.

o

The findings were reported in an article online and published in the July 2018 print issue of Neurology: Neuroimmunology & Neuroinflammation, an official journal of the American Academy of Neurology.

•

A Phase 1 clinical study to evaluate off-the-shelf, allogeneic ATA188 in patients with progressive MS is also underway across clinical sites in the U.S. and Australia.

o

The primary objective of the Phase 1 study is to assess the safety of ATA188 in patients followed for at least one year after the first dose. Key secondary endpoints in the study include measures of clinical improvement such as expanded disability status scale (EDSS) and annualized relapse rate (ARR), as well as MRI imaging.

o

The first results from the ongoing ATA188 Phase 1 study in patients with progressive MS are expected in the first half of 2019.

o

Plan to initiate a randomized autologous ATA190 study in progressive MS patients in 2019.

•

Plan to rapidly advance novel gene-edited CAR T development programs from recently expanded T-cell immunotherapy collaboration with Memorial Sloan Kettering Cancer Center (MSK), leveraging our existing off-the-shelf T-cell immunotherapy technology platform, manufacturing expertise and research and development capabilities.

•

Expect to start Phase 1 study for ATA621 targeting both JC and BK viruses in 2019.

•

Commenced operations at Atara T Cell Operations & Manufacturing (ATOM) facility in the second quarter of 2018, with completion to support clinical production expected in 2019.

•

Appointed Utpal Koppikar as Chief Financial Officer. Utpal has an accomplished track record in global biotechnology financial operations.

•

In June 2018 we exercised our option under a license agreement with QIMR Berghofer to an exclusive, worldwide license to develop and commercialize additional T-cell immunotherapy programs including ATA190, as well as the option to license additional technology.

•

Cash, cash equivalents and short-term investments as of June 30, 2018 totaled $417.0 million, which we believe will enable us to expand our near-term pipeline and accelerate pre-commercial activities as well as fund our previously planned operations to mid-2020.  In the second quarter of 2018, we sold approximately 1.0 million shares of common stock pursuant to our “at-the-market” (ATM) facility for net proceeds of $47.6 million, after deducting commissions and other offering expenses.

•

We reported net losses of $50.9 million, or $1.15 per share, for the second quarter of 2018, as compared to $27.4 million, or $0.94 per share, for the same period in 2017.

•

Research and development expenses were $33.4 million for the second quarter of 2018, as compared to $18.3 million for the same period in 2017. The increase in the second quarter of 2018 was due to costs associated with our continuing expansion of research and development activities, including:

o

clinical trial, manufacturing and outside service costs related to the two Phase 3 clinical trials of tab-cel™ in patients with EBV+ PTLD and the Phase 1 clinical trial of allogeneic ATA188 in patients with MS;

o

higher payroll and related costs from increased headcount, and

o

an increase in allocated facilities and information technology expenses.

•

Research and development expenses include $3.4 million and $2.0 million of non-cash stock-based compensation expenses in the second quarters of 2018 and 2017, respectively.

•

General and administrative expenses were $19.2 million for the second quarter of 2018, as compared to $9.6 million for the same period in 2017. The increase in the second quarter of 2018 was primarily due to increases in professional services costs and payroll and related costs driven by increased headcount to support the Company’s expanding operations. General and administrative expenses include $4.6 million and $3.7 million of non-cash stock-based compensation expenses in the second quarters of 2018 and 2017, respectively.

June 30,

December 31,

2018

2017

Assets

Current assets:

Cash and cash equivalents

$

103,203

$

79,223

Short-term investments

313,812

86,873

Restricted cash - short-term

194

194

Prepaid expenses and other current assets

7,861

5,900

Total current assets

425,070

172,190

Property and equipment, net

66,075

44,129

Restricted cash - long-term

1,200

1,200

Other assets

362

260

Total assets

$

492,707

$

217,779

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$

6,545

$

14,711

Accrued compensation

5,276

5,664

Accrued research and development expenses

6,661

4,006

Other current liabilities

8,752

3,265

Total current liabilities

27,234

27,646

Long-term liabilities

12,974

12,269

Total liabilities

40,208

39,915

Commitments and contingencies

Stockholders’ equity:

Common stock

5

3

Additional paid-in capital

841,975

474,662

Accumulated other comprehensive loss

(505

)

(151

)

Accumulated deficit

(388,976

)

(296,650

)

Total stockholders’ equity

452,499

177,864

Total liabilities and stockholders’ equity

$

492,707

$

217,779

Three Months Ended June 30,

Six Months Ended June 30,

2018

2017

2018

2017

Operating expenses:

Research and development

$

33,387

$

18,296

$

61,847

$

35,837

General and administrative

19,236

9,613

33,228

18,233

Total operating expenses

52,623

27,909

95,075

54,070

Loss from operations

(52,623

)

(27,909

)

(95,075

)

(54,070

)

Interest and other income, net

1,743

481

2,752

990

Loss before provision for income taxes

(50,880

)

(27,428

)

(92,323

)

(53,080

)

Provision for income taxes

3

—

3

2

Net loss

$

(50,883

)

$

(27,428

)

$

(92,326

)

$

(53,082

)

Other comprehensive loss:

Unrealized gain (loss) on available-for-sale securities

19

38

(354

)

69

Comprehensive loss

$

(50,864

)

$

(27,390

)

$

(92,680

)

$

(53,013

)

Net loss per common share:

Basic and diluted net loss per common share

$

(1.15

)

$

(0.94

)

$

(2.20

)

$

(1.82

)

Weighted-average shares outstanding used

   to calculate basic and diluted net loss per common share

44,379

29,247

42,001

29,152