Kite Pharmaceuticals, Inc.
Nov 12, 2015

Kite Pharma Reports Third Quarter 2015 Financial Results and Provides Business Update

SANTA MONICA, Calif., Nov. 12, 2015 (GLOBE NEWSWIRE) -- Kite Pharma, Inc. (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 September 30, 2015.

"Over the past few months, we have achieved many significant corporate and clinical development milestones, including the initiation of two pivotal Phase 2 studies of our lead product candidate, KTE-C19," noted Arie Belldegrun, M.D., FACS, Chairman, President, and Chief Executive Officer. "Our ZUMA-1 trial is enrolling patients with aggressive, refractory non-Hodgkin's lymphoma, while our ZUMA-2 trial is enrolling patients with relapsed or refractory mantle cell lymphoma. We also plan to initiate two additional pivotal studies of KTE-C19 in patients with acute lymphoblastic leukemia prior to the end of this year. We look forward to reporting data from these trials in 2016 with the goal of filing our first Biologics License Application by the end of 2016."

Recent Highlights

Third 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 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 timing of initiating two additional pivotal KTE-C19 studies in ALL, the timing and ability to obtain regulatory approval based on the studies of KTE-C19 and to commercially launch KTE-C19, and Kite's 2015 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 September 30, 2015. 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 to discuss its financial results and provide a general business update. The live webcast and subsequent replay may be accessed by visiting the Company's website at ir.kitepharma.com. Please connect to the Company's website at least 5-10 minutes prior to the live webcast to ensure adequate time for any necessary software download. Alternatively, please call (844) 856-8656 (U.S.) or (443) 877-4062 (international) to listen to the live conference call. The conference ID number for the live call is 57896657. Please dial in approximately 10 minutes prior to the call. The webcast will be available on the Company's website for two weeks following the event.

KITE PHARMA, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
     
  SEPTEMBER 30, 2015
(unaudited)
DECEMBER 31,
2014
ASSETS    
Current assets    
Cash, cash equivalents, and marketable securities  $ 368,561  $ 367,040
Prepaid expenses and other current assets 12,911 1,330
Total current assets 381,472 368,370
Property and equipment, net 20,329 2,256
Intangible assets and goodwill, net 38,951
Other assets 10,062 127
Total assets  $ 450,814  $ 370,753
LIABILITIES AND STOCKHOLDERS' EQUITY  
Current liabilities    
Accounts payable  $ 5,148  $ 2,320
Deferred revenue 15,333
Accrued expenses and other current liabilities 8,789 4,405
Total current liabilities 29,270 6,725
Deferred revenue, less current portion 35,884
Contingent consideration 16,383
Other non-current liabilities 6,866 1,439
Total liabilities 88,403 8,164
Total stockholders' equity 362,411 362,589
 Total liabilities and stockholders' equity  $ 450,814  $ 370,753
 
KITE PHARMA, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(unaudited)
         
  THREE MONTHS
ENDED SEPTEMBER 30,
NINE MONTHS
ENDED SEPTEMBER 30,
  2015 2014 2015 2014
         
Revenue:        
Revenue  $ 5,087 $ —   $ 12,371 $ — 
Operating expenses:        
Research and development 21,727 5,716 47,576 15,232
General and administrative 11,135 3,385 30,080 8,172
Total operating expenses 32,862 9,101 77,656 23,404
Loss from operations (27,775) (9,101) (65,285) (23,404)
Other income (expense):        
Interest income 342 61 1,307 129
Interest expense (451) (456) (6,266)
Other income (expense) (49) (11) 521 (10)
Total other income (expense) (158) 50 1,372 (6,147)
Loss before income taxes (27,933) (9,051) (63,913) (29,551)
Benefit from income taxes 491 491
Net loss (27,442) (9,051) (63,422) (29,551)
Series A preferred stock dividend (1,089)
Net loss attributable to common stockholders  $ (27,442)  $ (9,051)  $ (63,422)  $ (30,640)
Net loss per share, basic and diluted  $ (0.63)  $ (0.24)  $ (1.47)  $ (1.76)
Weighted-average shares outstanding, basic and diluted 43,818 38,330 43,172 17,384

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 SEPTEMBER 30,
NINE MONTHS
ENDED SEPTEMBER 30,
  2015 2014 2015 2014
Net loss attributable to common stockholders - GAAP  $ (27,442)  $ (9,051)  $ (63,422)  $ (30,640)
         
Adjustments:        
Non-cash stock-based compensation expense 10,845 3,394 26,903 10,635
Net loss attributable to common stockholders - Non-GAAP  $ (16,597)  $ (5,657)  $ (36,519)  $ (20,005)
         
Net loss per share attributable to common stockholders, basic and diluted - GAAP  $ (0.63)  $ (0.24)  $ (1.47)  $ (1.76)
         
Adjustments:        
Non-cash stock-based compensation per share 0.25 0.09 0.62 0.61
Net loss per share attributable to common stockholders, basic and diluted - Non-GAAP  $ (0.38)  $ (0.15)  $ (0.85)  $ (1.15)
         
Weighted average common shares outstanding, basic and diluted 43,818 38,330 43,172 17,384
CONTACT: Kite Pharma, Inc.

         Cynthia M. Butitta

         Chief Financial Officer and Chief Operating Officer

         310-824-9999

         

         For Media: Justin Jackson

         For Investor Inquiries: Lisa Burns

         Burns McClellan

         212-213-0006

         jjackson@burnsmc.com

         lburns@burnsmc.com