Epizyme reported financial results for the fourth quarter of and full year 2015.
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Net loss was $132.4 million for the year ended December 31, 2015, compared to a net loss of $55.0 million for the year ended December 31, 2014.
The year-over-year decline was driven by a decrease in collaboration revenue, as well as by the costs associated with reacquiring tazemetostat rights from Eisai.
Cash and cash equivalents as of December 31, 2015 were $208.3 million, compared with $190.1 million as of December 31, 2014. Epizyme's follow-on public offering in January 2016 raised $130.1 million in net proceeds, after underwriting discounts and commissions, upon the sale of 15.3 million common shares.
As this event occurred in fiscal 2016, it is not reflected in the December 31, 2015 cash and cash equivalent balances.
Financial Guidance from Epizyme states that the company believes its cash and cash equivalents of $208.3 million as of December 31, 2015, together with the net proceeds of $130.1 million from the January 2016 follow-on offering, will be sufficient to fund the company's operations through at least the end of 2017, and importantly through many key milestones.
Collaboration revenue was $2.6 million for the year ended December 31, 2015, compared to $41.4 million for the prior year.
The decrease in collaboration revenue primarily reflects the completion of a significant portion of the company's performance obligations under its collaborations during 2014 and achievement of a $3.0 million milestone under its agreement with GSK during 2014.
The company expects to recognize an additional $1.9 million of deferred revenue related to the Celgene agreement through December 31, 2016 as the company completes its pinometostat phase 1 clinical trials.
Research and development (R&D) expenses were $111.2 million for the year ended December 31, 2015 compared to $75.6 million for the year ended December 31, 2014.
Epizyme announced its corporate vision and strategy through 2020. During the next five years, Epizyme will focus on four transformative activities:
- Transitioning to a commercial-stage organization through the global launch of tazemetostat in patients with non-Hodgkin lymphoma (NHL) and in patients with certain genetically defined solid tumors
- Expanding the clinical program for tazemetostat to support its utilization in earlier lines of therapy, in combination regimens, and in at least five new tumor types
- Growing the pipeline, with at least three new oncology product candidates in clinical development and a robust set of preclinical assets behind those
- Further establishing the company's leadership in the field of epigenetics and chromatin remodeling in oncology and beyond to enable long-term, sustainable business growth. ■