Kite Pharmaceuticals, Inc.
May 15, 2015

Kite Pharma Reports First Quarter 2015 Financial Results

SANTA MONICA, Calif., May 15, 2015 (GLOBE NEWSWIRE) -- Kite Pharma, Inc. (Kite) (Nasdaq:KITE), a clinical-stage biopharmaceutical company focused on developing engineered autologous T cell therapy (eACT™) products for the treatment of cancer, today reported financial results for the quarter ended March 31, 2015.

"We're very pleased with our accomplishments this year, which have significantly expanded our platform for discovering and advancing both chimeric antigen receptor (CAR) and T cell receptor (TCR) product candidates," said Arie Belldegrun, M.D., FACS, Chairman, President and Chief Executive Officer. "We've entered into a broadly enabling CAR collaboration with Amgen and acquired new TCR assets with the acquisition of TCF™ in the Netherlands. Further, we are excited to have secured new facilities for clinical and commercial manufacturing, and we have expanded our leadership team with key hires."

Dr. Belldegrun continued, "We have built the foundation which we believe will enable us to continue delivering on our plan to advance KTE-C19 into development and continue to expand our product pipeline. We also have a poster presentation at the upcoming 2015 American Society of Clinical Oncology annual meeting, and we are excited to announce our first Investor Day that will take place on June 23rd in New York, for which we will convene key thought leaders and also plan to webcast the event."

Highlights of Developments in First Quarter 2015

First Quarter 2015 Financial Results

About Kite Pharma, Inc.

Kite Pharma, Inc., is a clinical-stage biopharmaceutical company engaged in the development of novel cancer immunotherapy products, with a primary focus on eACT™ designed to restore the immune system's ability to recognize and eradicate tumors. Kite is based in Santa Monica, CA.

Cautionary Note on 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. Kite 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 Kite's intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things: the ability of Kite to deliver on its plan to advance KTE-C19 into development; the ability of Kite's new facilities to support clinical trials and commercial launch; the ability to expand Kite's pipeline of TCR-based product candidates through the acquisition of TCF™ and of CAR-based product candidates through the Amgen collaboration and the agreement with the Tel Aviv Sourasky Medical Center; and Kite's 2015 financial guidance. Various factors may cause differences between Kite's expectations and actual results as discussed in greater detail under the heading "Risk Factors" in the Form 10-Q for the quarter ended March 31, 2015. Any forward-looking statements that Kite makes in this press release speak only as of the date of this press release. Kite assumes no obligation to update its forward-looking statements whether as a result of new information, future events or otherwise, after the date of this press release.

KITE PHARMA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
     
  MARCH 31, 2015 DECEMBER 31,
  (unaudited) 2014
ASSETS    
Current assets    
Cash, cash equivalents, and marketable securities $ 428,526 $ 367,040
Prepaid expenses and other current assets 6,436 1,330
Total current assets 434,962 368,370
Property and equipment, net 4,330 2,256
Intangible assets and goodwill, net 39,907 --
Other assets 11,482 127
Total assets $ 490,681 $ 370,753
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities    
Accounts payable and accrued liabilities $ 11,438 $ 6,725
Contingent consideration 16,622 --
Deferred revenue 15,000 --
License obligations 13,800 --
Total current liabilities 56,860 6,725
Deferred revenue - non-current  42,445 --
Other non-current liabilities 5,205 1,439
Total liabilities 104,510 8,164
Total stockholders' equity 386,171 362,589
Total liabilities and stockholders' equity $ 490,681 $ 370,753
 
KITE PHARMA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(unaudited)
     
  THREE MONTHS
  ENDED MARCH 31,
  2015 2014
Revenue:    
Collaboration revenue $ 2,881 $ --
Total revenue 2,881 --
Operating expenses:    
Research and development $ 9,260 $ 2,092
General and administrative 9,171 1,070
Total operating expenses 18,431 3,162
Loss from operations (15,550)  (3,162)
Other income (expense):    
Interest income 466 21
Interest expense (4) --
Total other income (expense) 462 21
Net loss (15,088) (3,141)
Series A preferred stock dividend -- (557)
Net loss attributable to common stockholders $ (15,088) $ (3,698)
Net loss per share, basic and diluted $ (0.36) $ (0.66)
Weighted-average shares outstanding, basic and diluted 42,466 5,571

Note Regarding Use of Non-GAAP Financial Measures

Kite provides non-GAAP net loss and non-GAAP net loss per share measures that include adjustments to U.S. generally accepted accounting principles (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,
  2015
Net loss attributable to common stockholders - GAAP $ (15,088)
Adjustments:  
Non-cash stock-based compensation expense 6,677
Net loss attributable to common stockholders - Non-GAAP $ (8,411)
   
Net loss per share attributable to common stockholders, basic and diluted - GAAP $ (0.36)
Adjustments:  
Non-cash stock-based compensation expense per share 0.16
Net loss per share attributable to common stockholders, basic and diluted - Non-GAAP $ (0.20)
Weighted average common shares outstanding, basic and diluted 42,466
CONTACT: Kite Pharma

         Cynthia M. Butitta

         Chief Financial Officer and Chief Operating Officer

         310-824-9999



         For Media: Justin Jackson

         For Investor Inquiries: Lisa Burns and Carol Werther

         Burns McClellan

         212-213-0006

         jjackson@burnsmc.com

         lburns@burnsmc.com

         cwerther@burnsmc.com

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Source: Kite Pharma, Inc.

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