Alpine Immune Sciences(ALPN) - 2024 Q1 - Quarterly Results

Company Overview & Strategic Update This section details Alpine Immune Sciences' acquisition by Vertex Pharmaceuticals and provides an overview of Alpine's focus on immunotherapy for autoimmune diseases Acquisition by Vertex Pharmaceuticals Alpine Immune Sciences announced a definitive agreement to be acquired by Vertex Pharmaceuticals for $65 per share in cash, with the transaction anticipated to close in Q2 2024 - Vertex Pharmaceuticals Incorporated will acquire Alpine Immune Sciences for $65 per share in cash[3] - The transaction was unanimously approved by both the Vertex and Alpine Boards of Directors[3] - The acquisition is anticipated to close in the second quarter of 2024[3] About Alpine Immune Sciences Alpine Immune Sciences is a clinical-stage immunotherapy company developing innovative treatments for autoimmune and inflammatory diseases using unique protein engineering technologies - Alpine Immune Sciences is a clinical-stage immunotherapy company focused on developing innovative treatments for autoimmune and inflammatory diseases[2][9] - The company utilizes unique protein engineering technologies to create first- or best-in-class multifunctional immunotherapies[9] - Alpine has strategic collaborations with leading global biopharmaceutical companies and a diverse pipeline of clinical and preclinical candidates[9] First Quarter 2024 Financial Performance This section details Alpine's Q1 2024 financial results, including a widened net loss, cash position, and key balance sheet and income statement data Summary of Financial Results Alpine Immune Sciences reported a net loss of $17.9 million for Q1 2024, driven by higher R&D and G&A expenses, partially offset by increased interest income Cash Position and Runway As of March 31, 2024, Alpine's cash and investments totaled $362.4 million, sufficient to fund planned operations into 2026 | Metric | March 31, 2024 | December 31, 2023 | | :----- | :------------- | :---------------- | | Cash and Investments | $362.4 million | $368.2 million | - The Company anticipates its current cash and investments are sufficient to fund planned operations into 2026[4] Collaboration Revenue Collaboration revenue for Q1 2024 decreased to $7.0 million from $9.4 million in Q1 2023, primarily due to reduced Amgen and AbbVie contributions | Metric | Q1 2024 | Q1 2023 | Change | | :------------------ | :------ | :------ | :----- | | Collaboration Revenue | $7.0 million | $9.4 million | -$2.4 million | - Decrease primarily relates to a $1.8 million decrease in Amgen revenue due to work progressing on research programs nearing completion[5] - AbbVie revenue decreased by $0.2 million primarily due to lower contributed employee hours[5] Research and Development Expense Research and development expense increased by $2.9 million to $22.5 million in Q1 2024, driven by higher povetacicept and personnel costs | Metric | Q1 2024 | Q1 2023 | Change | | :-------------------------- | :------ | :------ | :----- | | Research and Development Expense | $22.5 million | $19.6 million | +$2.9 million | - Increase driven by a $4.8 million rise in povetacicept costs (clinical trial, process development, manufacturing) and a $1.6 million increase in personnel costs[6] - Partially offset by a $2.7 million decrease in acazicolcept costs and a $1.4 million decrease in davoceticept costs due to study closeout[6] General and Administrative Expense General and administrative expense for Q1 2024 increased by $1.9 million to $7.3 million, primarily due to higher personnel costs and professional services | Metric | Q1 2024 | Q1 2023 | Change | | :----------------------------- | :------ | :------ | :----- | | General and Administrative Expense | $7.3 million | $5.4 million | +$1.9 million | - The increase was primarily attributable to increases in personnel costs and professional services[7] Net Loss Alpine's net loss for Q1 2024 widened to $17.9 million, reflecting an overall increase in operating expenses | Metric | Q1 2024 | Q1 2023 | Change | | :------- | :-------- | :-------- | :------- | | Net Loss | $(17.9) million | $(13.3) million | $(4.6) million | | Metric | Q1 2024 | Q1 2023 | | :---------------------------------------- | :------ | :------ | | Basic and diluted net loss per share | $(0.28) | $(0.28) | Selected Condensed Consolidated Balance Sheet Data As of March 31, 2024, Alpine's total assets slightly decreased to $373.6 million, while total stockholders' equity increased to $332.7 million | (In thousands) | March 31, 2024 | December 31, 2023 | | :------------- | :------------- | :---------------- | | Cash and cash equivalents | $33,015 | $43,921 | | Short-term investments | $272,646 | $283,491 | | Total current assets | $308,251 | $330,034 | | Long-term investments | $56,453 | $40,556 | | Total assets | $373,646 | $379,852 | | Total current liabilities | $32,238 | $41,980 | | Total stockholders' equity | $332,703 | $327,941 | | Total liabilities and stockholders' equity | $373,646 | $379,852 | Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) Data For Q1 2024, Alpine reported a net loss of $17.9 million and a comprehensive loss of $18.6 million, driven by increased operating expenses | (In thousands, except share and per share amounts) | 2024 | 2023 | | :---------------------------------------------- | :--- | :--- | | Collaboration revenue | $7,032 | $9,387 | | Operating expenses: | | | | Research and development | $22,457 | $19,581 | | General and administrative | $7,271 | $5,398 | | Total operating expenses | $29,728 | $24,979 | | Loss from operations | $(22,696) | $(15,592) | | Other income (expense): | | | | Interest income | $4,781 | $2,418 | | Interest expense | — | $(70) | | Other, net | $(3) | $(22) | | Net loss | $(17,918) | $(13,266) | | Comprehensive income (loss): | | | | Unrealized (loss) gain on investments | $(551) | $745 | | Unrealized loss on foreign currency translation | $(109) | $(31) | | Comprehensive loss | $(18,578) | $(12,552) | | Weighted-average shares used to compute basic and diluted net loss per share | 64,033,018 | 47,568,149 | | Basic and diluted net loss per share | $(0.28) | $(0.28) | Legal and Investor Information This section provides important disclosures regarding forward-looking statements and guidance on accessing additional investor information for the proposed acquisition Special Note Regarding Forward-Looking Statements This section highlights that the press release contains forward-looking statements subject to risks, uncertainties, and regulatory considerations related to the Vertex acquisition - The press release contains forward-looking statements related to the proposed acquisition of Alpine by Vertex, subject to risks and uncertainties[10] - Risks include uncertainties as to timing, closing conditions, integration difficulties, regulatory approvals, and the inherent risks in drug development[11] - Readers should not place undue reliance on these statements and should review risk factors in SEC filings, including Form 10-K and 10-Q[11] Additional Information and Where to Find It This section advises Alpine's security holders to review Tender Offer Materials and Solicitation/Recommendation Statements filed with the SEC for crucial information on the tender offer - Vertex's acquisition subsidiary has commenced a tender offer for all issued and outstanding shares of Alpine's common stock[12] - Alpine's security holders are urged to read the Tender Offer Materials (Schedule TO) and Solicitation/Recommendation Statement (Schedule 14D-9) for important information[12][13] - These documents are available for free on the SEC's website (www.sec.gov) and Vertex's investor relations website[13] Contact Information This section provides dedicated contact information for investor and media inquiries regarding Alpine Immune Sciences Investor and Media Contact This section provides the dedicated email addresses for investor and media inquiries related to Alpine Immune Sciences - Investor and Media Contact information: ir@alpineimmunesciences.com and media@alpineimmunesciences.com[14]