Avalanche Biotechnologies Inc (NASDAQ:AAVL), a biopharmaceutical company committed to improving or preserving the sight of people suffering from serious eye diseases with an unmet medical need, today reported financial results for the second quarter ended June 30, 2015.
The company also reported that after further analyses of results from a previously reported Phase 2a trial of AVA-101 for the potential treatment of wet age-related macular degeneration (wet AMD), it will not initiate a Phase 2b clinical trial in the second half of 2015.
Instead, Avalanche will conduct additional preclinical studies to investigate optimal dose and delivery of AVA-101 and AVA-201 versus standard of care anti-VEGF protein therapy to select the best gene therapy product candidate for wet AMD to advance back into the clinic. This decision was based on more detailed analyses of the Phase 2a clinical trial data, which included individual subject-level assessment of anatomic and functional outcomes, treatability of the Phase 2a subjects and product administration.
“These analyses gave us more information about some of the factors, including dosing and administration variability, that may have contributed to the Phase 2a study results,” said Hans Hull, interim chief executive officer of Avalanche. “We are carefully focusing our resources and leveraging our scientific expertise to develop what we believe could be a transformative treatment for wet AMD that will help patients better manage this devastating disease.”
Avalanche remains on track to complete candidate selection for AVA-201 by the end of 2015 and preclinical studies for AVA-322 and AVA-323 are ongoing. The company will also continue to develop its next generation vector technology to enable new therapies for diseases with high unmet need.
Second Quarter 2015 Financial Results
- Cash, cash equivalents and marketable securities as of June 30, 2015 was $279.6 million,compared to $159.4 million as of December 31, 2014. The Company does not expect the burn rate recognized over the past two quarters to change substantially over the next 18 months.
- Revenues, consisting of revenue from collaborative research, was $203,000 for the quarter ended June 30, 2015, compared to $135,000 for the quarter ended June 30, 2014.
- Research and development expenses were $5.1 million for the quarter ended June 30, 2015, compared to $3.1 million for the quarter ended June 30, 2014.
- General and administrative expenses were $5.0 million for the quarter ended June 30, 2015, compared to $1.5 million for the quarter ended June 30, 2014.
- Net loss attributable to common stockholders was $9.8 million, or $0.38 per basic and diluted share, for the quarter ended June 30, 2015, compared to a net loss attributable to common stockholders of $8.3 million, or $2.27 per basic and diluted share, for the quarter ended June 30, 2014. (Original Source)
Shares of Avalanche Biotechnologies opened today at $14.28 and are currently trading down at $13.89. AAVL has a 1-year high of $62.48 and a 1-year low of $13.79. The stock’s 50-day moving average is $15.55 and its 200-day moving average is $31.45.
On the ratings front, Avalanche Biotechnologies has been the subject of a number of recent research reports. In a report issued on August 7, Piper Jaffray analyst Joshua Schimmer reiterated a Buy rating on AAVL, with a price target of $30, which represents a potential upside of 110.1% from where the stock is currently trading. Separately, on July 27, Chardan’s Gbola Amusa MD CFA maintained a Hold rating on the stock and has a price target of $17.50.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Joshua Schimmer and Gbola Amusa MD CFA have a total average return of 7.0% and 9.7% respectively. Schimmer has a success rate of 54.4% and is ranked #525 out of 3734 analysts, while CFA has a success rate of 58.0% and is ranked #771.
Avalanche Biotechnologies Inc is a clinical-stage biotechnology company focused on discovering and developing novel gene therapies to transform the lives of patients with sight-threatening ophthalmic diseases.