•

Two Phase 3 clinical studies are ongoing (MATCH and ALLELE) to evaluate tab-cel® for patients with EBV+ PTLD who have failed rituximab following hematopoietic cell transplant (HCT) or solid organ transplant (SOT).

o

Expanded MATCH and ALLELE study sites, with 30 sites available for enrollment in the United States and Australia, and with additional sites expected to open in the United States and other geographies.

•

A Phase 1 clinical study of off-the-shelf, allogeneic ATA188 in patients with progressive MS is ongoing across clinical sites in the United States and Australia.

•

Atara also plans to initiate a randomized autologous ATA190 study in progressive MS patients in the second half of 2019.

•

Licensed worldwide rights to a mesothelin-targeted chimeric antigen receptor T-cell (CAR T) immunotherapy for solid tumors from Memorial Sloan Kettering Cancer Center (MSK).

o

Development with MSK will focus on a next-generation, mesothelin-targeted CAR T using novel 1XX CAR signaling domain and PD-1 dominant negative receptor (DNR) checkpoint inhibition technologies for patients with mesothelin-associated solid tumors.

•

Expect clinical and preclinical results supporting Atara’s next-generation CAR T programs to be presented at the American Association of Cancer Research (AACR) Annual Meeting 2019 to be held March 29 to April 3 in Atlanta, Georgia.

•

First IND submission for Atara’s next-generation CAR T program expected in the fourth quarter of 2019 or first quarter of 2020.

•

Conducting IND-enabling manufacturing process development for ATA621, targeting both JC and BK viruses for patients with progressive multifocal leukoencephalopathy (PML).

•

Atara’s Board of Directors is currently conducting a search for a new Chief Executive Officer following Dr. Ciechanover’s transition plan announced in January.  Dr. Ciechanover will remain in his role as President and CEO until the earlier of the appointment of his successor or June 30, 2019.

•

Cash, cash equivalents and short-term investments as of December 31, 2018 totaled $309.6 million, which we believe will be sufficient to fund planned operations to mid-2020.  The balance excludes the impact of one-time license fees of $12.5 million paid in the first quarter of 2019 for worldwide rights to the next-generation allogeneic CAR T program targeting mesothelin.

•

The Company reported net losses of $80.0 million, or $1.75 per share, and $230.7 million, or $5.27 per share, for the fourth quarter and fiscal year 2018, respectively, as compared to $35.3 million, or $1.15 per share, and $119.5 million, or $4.00 per share, for the same periods in 2017.

•

Total operating expenses include total non-cash expenses of $11.0 million and $37.5 million for the fourth quarter and fiscal year 2018, respectively, as compared to $6.4 million and $24.1 for the same periods in 2017.

•

Research and development expenses were $62.3 million and $167.5 million for the fourth quarter and fiscal year 2018, respectively, as compared to $24.8 million and $81.2 million for the same periods in 2017. The increases in the fourth quarter and fiscal year 2018 were due to costs associated with the Company’s continuing expansion of research and development activities, including:

o

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

o

one-time license fees of $12.5 million incurred in the fourth quarter of 2018 for exclusive rights to a next-generation allogeneic CAR T program targeting mesothelin from MSK;

o

higher employee-related and overhead costs from increased headcount and operations, and

o

an increase in facilities and information technology expenses that are allocated to our research and development function.

•

Research and development expenses include $5.2 million and $16.2 million of non-cash stock-based compensation expenses for the fourth quarter and fiscal year 2018, respectively, as compared to $2.5 million and $8.8 million for the same periods in 2017.

•

General and administrative expenses were $19.6 million and $69.7 million for the fourth quarter and fiscal year 2018, respectively, as compared to $11.0 million and $40.3 million for the same periods in 2017. The increases in the fourth quarter and fiscal year 2018 were primarily due to increases in professional services costs and employee-related costs driven by increased headcount to support the Company’s expanding operations.

•

General and administrative expenses include $4.3 million and $17.6 million of non-cash stock-based compensation expenses for the fourth quarter and fiscal year 2018, respectively, as compared to $3.6 million and $14.3 million for the same periods in 2017.

December 31,

December 31,

2018

2017

Assets

Current assets:

Cash and cash equivalents

$      60,698

$           79,223

Short-term investments

         248,933

              86,873

Restricted cash - short-term

                194

                   194

Prepaid expenses and other current assets

             11,664

                5,900

Total current assets

         321,489

            172,190

Property and equipment, net

           68,576

              44,129

Restricted cash - long-term

             1,200

                1,200

Other assets

                574

                   260

Total assets

$      391,839

$         217,779

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$          3,719

$           14,711

Accrued compensation

             10,636

                5,664

Accrued research and development expenses

             19,210

                4,006

Other current liabilities

             6,414

                3,265

Total current liabilities

           39,979

              27,646

Long-term liabilities

           13,003

              12,269

Total liabilities

           52,982

              39,915

Commitments and contingencies

Stockholders’ equity:

Common stock

                    5

                       3

Additional paid-in capital

         866,541

            474,662

Accumulated other comprehensive loss

               (340)

                 (151)

Accumulated deficit

        (527,349)

          (296,650)

Total stockholders’ equity

         338,857

            177,864

Total liabilities and stockholders’ equity

$      391,839

$         217,779

Three Months Ended December 31,

Year Ended December 31,

2018

2017

2018

2017

Operating expenses:

Research and development

$

         62,255

$

        24,771

$

167,457

$

81,206

General and administrative

           19,561

           11,031

69,654

40,326

Total operating expenses

           81,816

           35,802

237,111

121,532

Loss from operations

      (81,816)

         (35,802)

(237,111

)

(121,532

)

Interest and other income, net

             1,757

                473

6,368

2,027

Loss before income taxes

       (80,059)

         (35,329)

(230,743

)

(119,505

)

Benefit from income taxes

                (47)

                (16)

(44)

(14)

Net loss

$

       (80,012)

$

     (35,313)

$

(230,699

)

$

(119,491

)

Other comprehensive gain (loss):

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

                109

                (63)

(189

)

32

Comprehensive loss

$

       (79,903)

$

     (35,376)

$

(230,888

)

$

(119,459

)

Net loss per common share:

Basic and diluted net loss per common share

$

           (1.75)

$

         (1.15)

$

(5.27

)

$

(4.00

)

Weighted-average shares outstanding used to

   calculate basic and diluted net loss per common share

           45,777

           30,651

43,811

29,863