Condensed Consolidated Balance Sheets (Unaudited) Presents the company's financial position, showing a decrease in total assets and shareholders' equity as of March 31, 2025 Key Balance Sheet Items (Unaudited) | Item | As of March 31, 2025 (CHF thousands) | As of December 31, 2024 (CHF thousands) | Change (CHF thousands) | | :-------------------------------- | :------------------------------------- | :-------------------------------------- | :--------------------- | | Total assets | 211,082 | 230,913 | (19,831) | | Total shareholders' equity | 94,798 | 112,270 | (17,472) | | Total liabilities | 116,284 | 118,643 | (2,359) | | Cash and cash equivalents | 19,960 | 36,275 | (16,315) | | Short-term financial assets | 125,654 | 129,214 | (3,560) | | Total non-current assets | 58,948 | 58,919 | 29 | | Total current assets | 152,134 | 171,994 | (19,860) | Condensed Consolidated Statements of Income/(Loss) (Unaudited) Details the company's financial performance, highlighting a significant increase in revenue and a slight improvement in operating loss for Q1 2025 Key Income Statement Items (Unaudited) | Item | For the Three Months Ended March 31, 2025 (CHF thousands) | For the Three Months Ended March 31, 2024 (CHF thousands) | Change (CHF thousands) | | :-------------------------------- | :---------------------------------------------------- | :---------------------------------------------------- | :--------------------- | | Total revenue | 990 | — | 990 | | Operating expenses | (20,360) | (20,068) | (292) | | Operating loss | (19,370) | (20,068) | 698 | | Finance result, net | 341 | 2,206 | (1,865) | | Loss before tax | (19,029) | (17,862) | (1,167) | | Loss for the period | (19,029) | (17,862) | (1,167) | - Total revenue increased significantly to CHF 990 thousand in Q1 2025 from no revenue in the prior comparable period2 - Operating loss improved slightly to CHF (19,370) thousand in Q1 2025 compared to CHF (20,068) thousand in Q1 20242 Condensed Consolidated Statements of Comprehensive Income/(Loss) (Unaudited) Reports the total comprehensive loss for the period, including other comprehensive income, for Q1 2025 and Q1 2024 Key Comprehensive Income Items (Unaudited) | Item | For the Three Months Ended March 31, 2025 (CHF thousands) | For the Three Months Ended March 31, 2024 (CHF thousands) | | :-------------------------------- | :---------------------------------------------------- | :---------------------------------------------------- | | Loss for the period | (19,029) | (17,862) | | Other comprehensive income/(loss) | 4 | 16 | | Total comprehensive loss, net of tax | (19,025) | (17,846) | Condensed Consolidated Statements of Changes in Equity (Unaudited) Outlines the changes in shareholders' equity, primarily reflecting the loss for the period, from January 1 to March 31, 2025 Key Changes in Equity (Unaudited) | Item | Balance as of January 1, 2025 (CHF thousands) | Loss for the period (CHF thousands) | Other comprehensive income (CHF thousands) | Share-based payments (CHF thousands) | Issuance of shares, net (CHF thousands) | Balance as of March 31, 2025 (CHF thousands) | | :-------------------------------- | :------------------------------------------ | :---------------------------------- | :----------------------------------------- | :----------------------------------- | :-------------------------------------- | :------------------------------------------- | | Share capital | 2,226 | — | — | — | 4 | 2,230 | | Share premium | 478,506 | — | — | — | 493 | 478,999 | | Treasury shares | (218) | — | — | — | — | (218) | | Accumulated losses | (368,239) | (19,029) | — | 1,558 | (502) | (386,212) | | Currency translation differences | (5) | — | 4 | — | — | (1) | | Total | 112,270 | (19,029) | 4 | 1,558 | (5) | 94,798 | - Total shareholders' equity decreased from CHF 112,270 thousand at January 1, 2025, to CHF 94,798 thousand at March 31, 2025, primarily due to the loss for the period5 Condensed Consolidated Statements of Cash Flows (Unaudited) Summarizes cash inflows and outflows from operating, investing, and financing activities for the three months ended March 31, 2025 Key Cash Flow Activities (Unaudited) | Activity | For the Three Months Ended March 31, 2025 (CHF thousands) | For the Three Months Ended March 31, 2024 (CHF thousands) | | :-------------------------------- | :---------------------------------------------------- | :---------------------------------------------------- | | Net cash flows provided by/(used in) operating activities | (18,816) | 1,024 | | Net cash flows provided by/(used in) investing activities | 3,028 | (23,561) | | Net cash flows (used in) financing activities | (258) | (688) | | Net (decrease) in cash and cash equivalents | (16,046) | (23,225) | | Cash and cash equivalents at March 31 | 19,960 | 57,009 | - Net cash flows from operating activities shifted from an inflow of CHF 1,024 thousand in Q1 2024 to an outflow of CHF (18,816) thousand in Q1 20257 - Net cash flows from investing activities significantly improved, moving from an outflow of CHF (23,561) thousand in Q1 2024 to an inflow of CHF 3,028 thousand in Q1 2025, primarily due to net maturities of short-term financial assets7 Notes to the Interim Condensed Consolidated Financial Statements (Unaudited) Provides detailed explanations and disclosures supporting the interim condensed consolidated financial statements 1. Corporate Information AC Immune SA, founded in 2003, is a clinical-stage biopharmaceutical company focused on discovering and developing novel medicines and diagnostics for neurodegenerative diseases (NDD) like Alzheimer's and Parkinson's, leveraging its SupraAntigen and Morphomer technology platforms - AC Immune SA is a clinical-stage biopharmaceutical company developing novel medicines and diagnostics for neurodegenerative diseases (NDD) such as Alzheimer's disease (AD) and Parkinson's disease (PD)10 - The company utilizes two proprietary technology platforms, SupraAntigen (conformation-specific biologics) and Morphomer (conformation-specific small molecules), to target misfolded proteins10 - AC Immune's corporate strategy is founded upon a three-pillar approach targeting AD, focused non-AD NDD (including Parkinson's disease, ALS, and NeuroOrphan indications), and diagnostics10 2. Basis of Preparation and Accounting Policies The interim financial statements are prepared in accordance with IAS 34, using historical cost convention, and presented in Swiss Francs (CHF). Management makes critical judgments and estimates in areas like revenue recognition and share-based compensation. The company maintains a going concern basis, supported by its cash position and short-term financial assets, despite inherent risks in its clinical-stage business Statement of Compliance Confirms that the interim financial statements adhere to International Accounting Standard 34 (IAS 34) for interim financial reporting - These Interim Condensed Consolidated Financial Statements are prepared in accordance with International Accounting Standard 34 (IAS 34), Interim Financial Reporting12 Basis of Measurement Explains that the financial statements are prepared primarily under the historical cost convention - The financial statements are prepared under the historical cost convention, except for items required to be accounted for at fair value13 Functional and Reporting Currency Outlines the company's functional and reporting currency as Swiss Francs, with its U.S. subsidiary using the U.S. Dollar - The Interim Condensed Consolidated Financial Statements are presented in Swiss Francs (CHF), which is AC Immune SA's functional currency and the Group's reporting currency14 - The Company's U.S. subsidiary has a functional currency of the U.S. Dollar (USD)14 Exchange Rates (CHF/USD) | | For the Three Months Ended March 31, 2025 | For the Three Months Ended March 31, 2024 | Year Ended December 31, 2024 | | :--- | :--- | :--- | :--- | | Closing rate, USD 1 | 0.888 | 0.914 | 0.912 | | Weighted-average exchange rate, USD 1 | 0.908 | 0.883 | 0.889 | Critical Judgments and Accounting Estimates Discusses management's significant judgments and estimates in areas such as revenue recognition and share-based compensation - Management makes critical judgments and estimates in areas such as revenue recognition on Option, Licensing and Collaboration Agreements (OLCAs), clinical development accruals, net employee defined benefit liability, share-based compensation, right-of-use assets and lease liabilities, and IPR&D asset16 Fair Value of Financial Assets and Liabilities States that the fair value of the company's financial instruments approximates their carrying values due to short-term maturity - The fair value of the Company's financial instruments (receivables, short-term financial assets, cash and cash equivalents, trade payables, and lease liabilities) approximates their respective carrying values due to their short-term maturity17 Accounting Policies and New Standards Adopted Confirms consistency of accounting policies with prior annual statements and notes no relevant new IFRS standards effective January 1, 2025 - The accounting policies adopted are consistent with those followed in the preparation of the Company's annual consolidated financial statements for the year ended December 31, 202418 - There are no new IFRS standards, amendments, or interpretations mandatory as of January 1, 2025, that are relevant to the Company18 New Standards Not Yet Effective Identifies IFRS 18 as a new standard effective January 1, 2027, with potential impacts on financial statement presentation - IFRS 18 Presentation and Disclosure in Financial Statements, issued in April 2024 and effective January 1, 2027, will change the structure of the statement of profit or loss and enhance disclosure principles. The Company is currently evaluating its impact19 Going Concern Assesses the company's ability to meet obligations for the next 12 months, supported by its cash and short-term financial assets - The Company believes it will be able to meet all its obligations for at least 12 months from the filing date, supported by a cash position of CHF 20.0 million and short-term financial assets of CHF 125.7 million as of March 31, 202520 - The Company's success depends on its ability to establish and maintain a strong patent position, enter into collaborations, successfully move product candidates through clinical development, attract and retain key personnel, and acquire capital2122 3. Contract Revenue and Other Operating Income AC Immune generated CHF 1.0 million in contract revenue for Q1 2025, primarily from the Takeda agreement, a significant increase from no revenue in the prior comparable period. This revenue is recognized from development, CMC, and regulatory activities under the agreement, with a substantial portion of the upfront payment deferred 3.1 Option, Licensing and Collaboration Agreements Details contract revenue recognition, primarily from the Takeda agreement, and the allocation of upfront payments Contract Revenues | In CHF thousands | For the Three Months Ended March 31, 2025 | For the Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Takeda | 990 | — | | Total contract revenues | 990 | — | - In May 2024, AC Immune entered a worldwide option and license agreement with Takeda Pharmaceuticals for active immunotherapies targeting Abeta, including ACI-24.060 for the treatment of AD27 - Under the Takeda agreement, AC Immune received an upfront payment of USD 100.0 million (CHF 92.3 million) in May 2024 and is eligible for an option exercise fee in the low-to-mid nine-figure USD range and additional potential milestones up to approximately USD 2.1 billion (CHF 1.9 billion)27 - The upfront payment of CHF 92.3 million was allocated, with CHF 80.7 million to the license option (deferred) and CHF 11.6 million to development, CMC, and regulatory activities (recognized over time)3233 - For the three months ended March 31, 2025, the Company recorded CHF 1.0 million in contract revenue reflecting efforts under the Takeda agreement for development, CMC, and regulatory activities34 - As of March 31, 2025, CHF 88.6 million in deferred contract revenue is related to unsatisfied performance obligations under the Takeda agreement35 4. Loss Per Share The basic and diluted loss per share for Q1 2025 increased to CHF (0.19) from CHF (0.18) in Q1 2024, reflecting a higher net loss attributable to equity holders Loss Per Share (EPS) | In CHF thousands except for share and per share data | For the Three Months Ended March 31, 2025 | For the Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net loss attributable to equity holders of the Company | (19,029) | (17,862) | | Weighted-average number of shares outstanding | 100,408,779 | 99,385,471 | | Basic and diluted loss per share | (0.19) | (0.18) | 5. Property, Plant and Equipment The net book value of property, plant and equipment increased to CHF 2,761 thousand as of March 31, 2025, from CHF 2,651 thousand at December 31, 2024, primarily due to additions in lab equipment Property, Plant and Equipment Carrying Amount | In CHF thousands | December 31, 2024 | March 31, 2025 | | :--- | :--- | :--- | | Furniture | 75 | 65 | | IT equipment | 331 | 324 | | Lab equipment | 1,483 | 1,654 | | Leasehold improvements | 762 | 718 | | Assets under construction | — | — | | Total | 2,651 | 2,761 | - Additions to property, plant and equipment totaled CHF 471 thousand for the three months ended March 31, 2025, with lab equipment accounting for CHF 392 thousand37 - Depreciation expense for the period was CHF 361 thousand37 6. Right-of-Use Assets, Long-Term Financial Assets and Lease Liabilities Right-of-use assets decreased slightly to CHF 5,186 thousand as of March 31, 2025, due to depreciation, with no new additions. Total cash outflow for leases increased to CHF 477 thousand in Q1 2025 from CHF 391 thousand in Q1 2024 Right-of-Use Assets Carrying Amount | In CHF thousands | Balance as of December 31, 2024 | Balance as of March 31, 2025 | | :--- | :--- | :--- | | Buildings | 5,320 | 5,076 | | Office equipment | 91 | 85 | | IT equipment | 26 | 25 | | Total | 5,437 | 5,186 | - No additions were recognized for right-of-use of leased assets for the three months ended March 31, 202538 Impact of Leases on Financial Statements | In CHF thousands | For the Three Months Ended March 31, 2025 | For the Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Depreciation of right-of-use assets | 251 | 167 | | Interest expense on lease liabilities | 47 | 30 | | Expense for short-term leases and leases of low value | 177 | 193 | | Total expense | 475 | 390 | | Total cash outflow for leases | 477 | 391 | Contractual Undiscounted Cash Flows for Lease Obligations (As of March 31, 2025) | | In CHF thousands | | :--- | :--- | | Less than one year | 1,198 | | 1-3 years | 2,370 | | 3-5 years | 2,055 | | Total | 5,623 | - Long-term financial assets include deposits in escrow accounts for leases, totaling CHF 0.6 million as of March 31, 2025, up from CHF 0.4 million at December 31, 202441 7. Accrued Expenses Accrued expenses, comprising R&D costs, payroll, and other expenses, decreased to CHF 11.1 million as of March 31, 2025, from CHF 12.1 million at December 31, 2024 Accrued Expenses | In CHF thousands | As of March 31, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Accrued expenses | 11,146 | 12,098 | | Total accrued expenses | 11,146 | 12,098 | - Accrued expenses consist of accrued R&D costs, accrued payroll expenses, and other accrued expenses42 8. Intangible Assets The Company's intangible asset, an acquired In-Process Research & Development (IPR&D) asset for Parkinson's disease, remains at a net book value of CHF 50,416 thousand as of March 31, 2025, and is not amortized as it is not yet ready for use. No impairment triggering events were identified - The intangible asset is an acquired IPR&D asset, a clinically-validated active vaccine candidate for the treatment of Parkinson's disease43 - The IPR&D asset is not yet ready for use and is therefore not currently being amortized43 Intangible Assets (Net Book Value) | In CHF thousands | As of March 31, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Acquired IPR&D asset | 50,416 | 50,416 | | Total intangible assets | 50,416 | 50,416 | - No triggering events that could result in an impairment of the IPR&D asset were identified as of March 31, 202544 9. Prepaid Expenses Prepaid expenses, including R&D costs, administrative costs, and employee social obligations, decreased to CHF 3.6 million as of March 31, 2025, from CHF 4.3 million at December 31, 2024 - Prepaid expenses totaled CHF 3.6 million as of March 31, 2025, down from CHF 4.3 million at December 31, 202445 - These expenses include prepaid R&D costs, administrative costs, and employee social obligations45 10. Cash and Cash Equivalents and Short-Term Financial Assets Cash and cash equivalents decreased to CHF 19.96 million as of March 31, 2025, from CHF 36.275 million at December 31, 2024. Short-term financial assets also saw a slight decrease Cash and Cash Equivalents and Short-Term Financial Assets | In CHF thousands | As of March 31, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | 19,960 | 36,275 | | Short-term financial assets | 125,654 | 129,214 | - Net proceeds from the maturity of investments in short-term financial assets amounted to CHF 3.6 million for the three months ended March 31, 2025, compared to net investments of CHF 23.3 million in the prior comparable period46 11. Treasury Shares The Company held 10,899,773 treasury shares as of March 31, 2025, consistent with the number held at December 31, 2024 - As of March 31, 2025, and December 31, 2024, the Company had 10,899,773 treasury shares remaining47 12. Share-Based Compensation Share-based compensation expense decreased to CHF 1.6 million in Q1 2025 from CHF 1.9 million in Q1 2024. The number of outstanding share options increased, while non-vested restricted share awards also increased significantly Share-Based Option Awards Summarizes activity related to share option awards, including grants, forfeitures, and outstanding options - The Company grants equity-based instruments under its 2016 Share Option and Incentive Plan (SOIP)49 Share Option Activity | | Outstanding at January 1, 2025 | Granted during the period | Forfeited during the period | Expired during the period | Outstanding at March 31, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | | Number of options | 5,010,827 | 369,231 | (50,987) | (1,908) | 5,327,163 | | Weighted-average exercise price (CHF) | 4.50 | 2.63 | 3.37 | 3.68 | 4.38 | - The weighted-average remaining term for outstanding options at March 31, 2025, was 6.5 years50 Restricted Share Awards Presents the activity and status of non-vested restricted share awards, including grants and vested shares Restricted Share Awards Activity | | Non-vested at December 31, 2024 | Granted during the period | Forfeited during the period | Exercised during the period | Vested during the period | Non-vested at March 31, 2025 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Number of shares | 822,740 | 1,295,331 | (32,518) | (40,269) | (212,039) | 1,875,994 | | Weighted-average grant date fair value (CHF) | 3.12 | 2.44 | 4.01 | 2.65 | 2.43 | 2.71 | - Share-based compensation expense charged against the income statement was CHF 1.6 million for the three months ended March 31, 2025, compared to CHF 1.9 million for the prior comparable period51 13. Finance Result, Net Net financial gains significantly decreased to CHF 0.3 million in Q1 2025 from CHF 2.2 million in Q1 2024, primarily due to unfavorable foreign currency exchange differences, particularly related to the U.S. Dollar Finance Result, Net | In CHF thousands | For the Three Months Ended March 31, 2025 | For the Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Finance result, net | 341 | 2,206 | - The decrease in net financial gains is primarily related to unfavorable foreign currency exchange differences, predominantly due to movements in the CHF versus the U.S. Dollar, compared with the preceding year-end rate5253 14. Subsequent Events Management has evaluated subsequent events through the issuance date of these interim financial statements and determined that no other events warrant disclosure or recognition - Management has evaluated subsequent events after the balance sheet date through the issuance of these Interim Condensed Consolidated Financial Statements and determined that no other such events warrant disclosure or recognition54
AC Immune(ACIU) - 2025 Q1 - Quarterly Report