On March 15, 2017 Inovio Pharmaceuticals, Inc. (NASDAQ:INO) reported financial results for the fourth quarter and year ended December 31, 2016 (Press release, Inovio, MAR 15, 2017, View Source;and-Year-End-Financial-Results/default.aspx [SID1234518170]).

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Total revenue was $8.5 million and $35.4 million for the quarter and year ended December 31, 2016, as compared to $5.9 million and $40.6 million for the same periods in 2015.

Total operating expenses for the quarter and year and ended December 31, 2016, were $30.9 million and $111.6 million as compared to $20.5 million and $74.9 million for the same periods in 2015.

The net loss attributable to common stockholders for the quarter and year ended December 31, 2016, was $26.2 million, or $0.35 per share, and $73.7 million, or $1.01 per share, compared to a net loss attributable to common stockholders of $18.0 million or $0.25 per share, and $29.2 million, or $0.43 per share, for the quarter and year ended December 31, 2015.

Dr. J. Joseph Kim, President and CEO, said: "In 2016 Inovio made significant progress on all three focuses of its Vision 2020 plan, which are HPV-related precancer, immuno-oncology, and infectious diseases, with notable data, multiple trial completions, progressive clinical study preparations, and multiple valuable collaborations and funding agreements. In 2017 we expect to report immune response data from clinical studies in six different diseases; the initiation of our phase 3 study of cervical dysplasia and two immuno-oncology combination studies, one by MedImmune and one by Inovio; and additional business development steps. We look forward to a highly productive year in advancing our unique immunotherapy platform and products."

Revenue

The decrease in revenue for the year was primarily due to $15.0 million of revenue recognized in 2015 from the up-front payment received from our partnership agreement with MedImmune. Accounting recognition of the remainder of the $27.5 million upfront payment was deferred and will be triggered by future events.

Operating Expenses

Research and development expenses for the quarter and year ended December 31, 2016, were $23.9 million and $88.7 million as compared to $15.6 million and $57.8 million for the same periods in 2015. The increase was primarily related to increased investment in our product development programs – notably the DARPA funded Ebola program and clinical trial preparations for the initiation of the VGX-3100 phase 3 study. General and administrative expenses for the quarter and year ended December 31, 2016, were $7.0 million and $23.9 million, compared to $4.9 million and $18.1 million for the quarter and year ended December 31, 2015. The increase was primarily related to employee non-cash stock-based compensation and employee headcount.

Capital Resources

As of December 31, 2016, cash and cash equivalents and short-term investments were $104.8 million compared with $163.0 million as of December 31, 2015. As of December 31, 2016, the company had 74.1 million shares outstanding and 82.0 million fully diluted.

During the year ended December 31, 2016, the Company sold 658,748 shares of common stock under its ATM common stock sales agreement for net proceeds of $6.3 million, with an average price of $9.75 per share.

Subsequent to year end Inovio announced a collaboration and license agreement providing ApolloBio Corporation (NEEQ:430187) with the exclusive right to develop and commercialize VGX-3100 within Greater China. In this agreement, Inovio will receive a $3 million signing fee and a $12 million milestone upon lifting of the VGX-3100 phase 3 pre-initiation clinical hold by the FDA. ApolloBio will also invest in Inovio common stock subsequent to lifting of the clinical hold at a volume weighted average price encompassing a trading period prior to and following the lifting of the clinical hold. The aggregate investment, expected to be completed in the first half of 2017, will not exceed $35 million and may be a lower amount such that ApolloBio will not be the largest shareholder in Inovio. Further details are provided under Corporate Update, HPV-Related Precancers below.

Inovio’s balance sheet and statement of operations are provided below. Form 10-K providing the complete 2016 annual financial report can be found at: View Source

Corporate Update

HPV-Related Precancers

In 2016 Inovio completed the scaling up of immunotherapy manufacturing to a commercial-scale facility as well as the commercial design and manufacturing process development for its new CELLECTRA 5PSP electroporation delivery device. We submitted a regulatory package to the U.S. Food and Drug Administration (FDA) supporting our proposed initiation of our phase 3 clinical program for VGX-3100 for HPV-related high grade cervical dysplasia. Included in this package was an extensive submission regarding the new device. Prior to the initiation of this study the FDA placed this program on clinical hold and subsequently provided Inovio with comments and questions, including a request for certain stability data relating to the device’s single-use disposable needle array. Inovio is generating the necessary data to prepare a comprehensive response. We aim to begin the phase 3 clinical program in the first half of 2017, subject to the FDA’s review of our response and lifting of the clinical hold. This clinical hold does not affect other Inovio clinical programs.
Inovio is planning to launch a phase 2 clinical study in 2017 for another HPV-related disease, vulvar intraepithelial neoplasia.
Subsequent to year end Inovio announced it entered into a collaboration and license agreement providing ApolloBio Corporation with the exclusive right to develop and commercialize VGX-3100 within Greater China (China, Hong Kong, Macao, Taiwan). The agreement provides for potential inclusion of the Republic of Korea three years following the effective date. Apart from financial terms discussed in Capital Resources above, ApolloBio will pay all clinical development costs within the licensed territory, up to $20 million based upon the achievement of certain regulatory milestones in the US, China and Korea, and double digit royalties on net sales of VGX-3100. The agreements are subject to People’s Republic of China (PRC) corporate and regulatory approvals, and payments are subject to PRC currency approvals. This collaboration encompasses treatment and/or prevention of pre-cancerous HPV infections and HPV-driven dysplasias, and excludes HPV-driven cancers and all combinations of VGX-3100 with other immunostimulants.
Immuno-Oncology

In the fourth quarter we reported interim data showing that INO-3112 generated robust HPV16/18 specific CD8+ T cell responses in peripheral blood in four of five subjects with HPV-related head and neck cancer who also showed increased T cell activation in resected tumor tissue samples. This data suggests the potential of Inovio’s DNA immunotherapies to turn tumors from cold to hot – by dramatically increasing the presence of killer T cells in the tumor, this technology represents an ideal approach to enhance the capabilities of checkpoint inhibitors. Inovio expects its partner, MedImmune, which licensed INO-3112 in 2015, to initiate a phase 1/2 immuno-oncology combination clinical study including INO-3112 in 1H 2017.
Subsequent to year end we reported data indicating that our SynCon WT1 cancer antigen was capable of breaking immune tolerance – a major challenge to researchers striving to develop potent cancer therapies — and induced neo-antigen-like T cell responses to cause tumor regression in pre-clinical studies. The results were published in Molecular Therapy in an article entitled, "A novel DNA vaccine platform enhances neo-antigen-like T-cell responses against WT1 to break tolerance and induce anti-tumor immunity." Inovio previously reported such results for its SynCon hTERT and PSMA cancer antigens. All three antigens are encoded in INO-5401, Inovio’s new universal cancer vaccine. Inovio intends to advance INO-5401 into a phase 1/2 study in combination with a checkpoint inhibitor in 1H 2017.
Completed enrollment of 62 subjects in the phase 1 study of our INO-5150 prostate cancer immunotherapy. We expect to report interim immune response and safety data in 2017.
Infectious Diseases

Subsequent to year end Inovio completed enrollment of its phase 1 study of its hepatitis B DNA immunotherapy (INO-1800). Inovio is independently advancing this program following Roche’s notice in 2016 that it will discontinue its INO-1800 collaboration with Inovio. All of Roche’s rights to INO-1800 have been returned. Inovio expects to report preliminary immune response data in 2H 2017. The study has completed interim safety reviews with a favorable safety profile to date.
Subsequent to year end we reported that in our emerging epidemic infectious disease program our fully enrolled 75-subject phase 1 study of our MERS DNA vaccine GLS-5300 generated high levels of binding antibodies (ELISA) in 92% (57 of 62) of evaluated subjects after three vaccinations (84% after two doses; 44% after one dose). Similarly, in our fully enrolled 40-subject phase 1 Zika study of GLS-5700, high levels of binding antibodies were measured (ELISA) in 100% (39 of 39) of evaluated subjects after three vaccinations; 82% (32 of 39) after two doses; 40% (16 of 40) after one dose. Both vaccines were well tolerated with no significant safety concerns to date. Both programs are being advanced through collaborations between Inovio and GeneOne Life Science Inc. (KSE: 011000).
We announced a collaboration and funding through our collaborator, GeneOne Life Science, with the International Vaccine Institute (IVI), which will provide technical, laboratory and financial support for GLS-5300 (MERS) clinical trials in Korea. This program is part of a grant provided to IVI by the Samsung Foundation.
Inovio and GeneOne initiated a phase 1 Zika DNA vaccine trial in Puerto Rico to test for safety, immune responses and initial evidence of efficacy. The placebo-controlled double-blind trial will assess differences in Zika infection rates in 160 healthy participants given either placebo or vaccine as part of an exploratory endpoint.
We expanded our phase 1 Ebola vaccine trial by fully enrolling an additional 125 subjects in a second stage after generating positive initial safety and immune response data in the first set of 75 healthy volunteers. The study will assess immune response characteristics generated with fewer intradermal administrations, lower doses, and with and without Inovio’s DNA-based IL-12 immune activator.
In 2016 we partnered with the National Cancer Institute and Mayo Clinic to initiate a phase 1 trial of our immunotherapy for hepatitis C (INO-8000). The dose escalation study will enroll patients in the early stages of chronic HCV infection to determine the therapy’s ability to decrease and potentially eliminate HCV viral load, measure HCV specific immune responses and durability of these immune responses, and evaluate safety and tolerability.
Completed enrollment of 94 subjects in the phase 1 study of our PENNVAX-GP HIV immunotherapy. After completing extensive immunogenicity analyses, we expect to report data in 2H 2017.
Other Developments

Signed collaborative research agreements with the Wistar Institute for preventive and therapeutic DNA-based immunotherapy applications and products for cancers and infectious diseases developed by David B. Weiner, Ph.D., board member and chairman of the scientific advisory board, and his Wistar laboratory. Inovio will have the exclusive right to in-license new intellectual property developed in this collaboration.
Inovio announced the award of a $6.1 million sub-grant through The Wistar Institute to develop a DNA-based monoclonal antibody designed to provide a fast-acting treatment against Zika infection. This program (a total of $8.8 million) is funded by the Bill & Melinda Gates Foundation.
Inovio’s DNA-based monoclonal antibody technology will be used to develop new immunotherapy approaches to treat HIV. This work will be funded by a $23 million grant, called BEAT-HIV: Delaney Collaboratory to Cure HIV-1 Infection by Combination Immunotherapy, from the National Institutes of Health to The Wistar Institute, an Inovio collaborator, and more than 30 of the nation’s leading HIV investigators.
Inovio incorporated a 100%-owned subsidiary, GENEOS Therapeutics, Inc., to develop and commercialize neo-antigen based personalized cancer therapies. GENEOS will exclusively focus on leveraging Inovio’s potent DNA immunotherapy technology platform to advance the emerging field of patient-specific neo-antigen therapies. GENEOS plans to independently raise capital and build a team to execute this complementary business model. Inovio will continue its focus on advancing its universal antigen-specific cancer immunotherapy portfolio.
Received $500,000 grant from the U.S. Army’s Small Business Innovation Research program to advance Inovio’s next generation delivery device capable of administering vaccines via skin-surface, needle-free electroporation.
Inovio completed the acquisition of all of Bioject Medical Technologies Inc.’s assets, including pioneering needle-free jet injection technology, devices, and intellectual property, for $5.5 million in cash and stock. Our goal is to design an integrated needle-free immunotherapy delivery and electroporation device.
Licensed a veterinary vaccine for foot and mouth disease (FMD) to Plumbline Life Sciences, an animal health company headquartered in South Korea. Plumbline will fund all development activities for this FMD vaccine and pay Inovio milestone payments as well as royalties on potential product sales.

On March 15, 2017 Idera Pharmaceuticals, Inc. (NASDAQ:IDRA), a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel nucleic acid-based therapeutics for oncology and rare diseases, reported its financial and operational results for the fourth quarter and year ended December 31, 2016 (Press release, Idera Pharmaceuticals, MAR 15, 2017, View Source [SID1234518167]).

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During 2016, the Company:

Completed enrollment in the dose escalation cohorts of the ipilimumab combination arm of the ongoing Phase 1/2 clinical trial of intratumoral IMO-2125 in PD-1 refractory metastatic melanoma;
– No dose-limiting toxicity reported in studied dose levels; MTD not reached;
– Patients with confirmed clinical responses have been on study past one year; and
– Supplementary patients being added to inform recommended phase 2 dose selection.
Commenced enrollment into the dose escalation cohorts of the pembrolizumab combination arm of the Phase 1/2 clinical trial of intratumoral IMO-2125 in PD-1 refractory metastatic melanoma;
Created 22 specific 3GA compounds targeting 22 genes for potential internal clinical development or partnering opportunities;
Selected the first clinical target for human development from the 3GA technology platform for an undisclosed liver target with expected initiation of clinical development targeted for 2018; IND-enabling activities underway;
Initiated enrollment into the IMO-8400 Phase 2 clinical trial in dermatomyositis which is being conducted at 22 sites both in the U.S. and abroad and is expected to complete enrollment in 2017 with data planned for the first half of 2018;
Planned additional IMO-2125 clinical trials to further understand drug activity as a monotherapy in additional solid tumors as well as exploration of additional combinations and tumor types with both trials anticipated to commence in 2017;
Executed an out-licensing agreement for Idera’s Toll-like Receptor 7, 8 and 9 antagonist IMO-9200 granting Vivelix Pharmaceuticals, Ltd. worldwide rights to develop and market the compound for non-malignant gastrointestinal disorders. Idera received $15 million in upfront payment and is eligible for future development, regulatory and sales milestone payments up to $140 million along with royalties from global net sales;
Generated estimated net proceeds of $49M, after deducting underwriters’ discounts and commissions and estimated offering expenses, from a public offering of common stock;
Presented positive clinical, translational and safety data from the initial cohorts of the phase 1 dose escalation portion of the Company’s ongoing Phase 1/2 clinical trial of intratumoral IMO-2125 in combination with ipilimumab in patients with PD-1 refractory metastatic melanoma at the Society for Immunotherapy of Cancer (SITC) (Free SITC Whitepaper) Annual Meeting in November;
Presented pre-clinical data updates on both novel mechanism of action and selective targeting of single point mutations with 3rd Generation Antisense (3GA) at the Cold Springs Harbor Laboratory Conference on Regulatory & Non-Coding RNAs conference and the Annual Meeting of the Oligonucleotide Therapeutic Society, respectively; and,
Completed registrational development plan for IMO-2125 for PD-1 refractory metastatic melanoma.
“2016 was an incredibly important period for driving Idera’s future direction and opportunities for success,” stated Vincent Milano, Idera’s Chief Executive Officer. “And to that end, I am extremely proud of the contributions of every member of our team throughout 2016 as we now find ourselves exceedingly focused on our core priorities as we enter 2017 which is set up to be a pivotal year for our company, our patients and our shareholders.”

Continued Milano, “As we begin 2017, we are now in position to gain further insight into the potential for IMO-2125 with additional data, clarify the path to registration for IMO-2125 for PD-1 refractory melanoma, commence understanding of IMO-2125’s opportunity beyond melanoma, complete enrollment of the IMO-8400 trial in dermatomyositis and continue to advance the 3GA platform technology towards its first clinical evaluation in 2018. We also along the way, will opportunistically explore collaborations for both IMO-2125 and the 3GA platform technology to maximize the potential value and importantly patient reach for these exciting therapeutic solutions.”

Research and Development Program Updates
IMO-2125 and IMO-8400 are the Company’s lead clinical development drug candidates. IMO-2125 is an oligonucleotide-based agonist of Toll-like receptor (TLR) 9. IMO-8400 is an oligonucleotide-based antagonist of TLRs 7, 8, and 9. The Company also announced, in late 2015, the first two potential development targets from its proprietary 3GA technology platform: NLRP3 (NOD-like receptor family, pyrin domain containing protein 3) and DUX4 (Double Homeobox 4). The Company continues to evaluate these and other potential targets. The Company plans to take the first 3GA candidate into human proof of concept studies in 2017.

Toll-like Receptor (TLR) Agonism
Immuno-Oncology Program
Idera’s development program in immuno-oncology is based on the rationale that intra-tumoral injections of IMO-2125, a TLR9 agonist, will activate dendritic cells and modulate the tumor microenvironment to potentiate the anti-tumor activity of checkpoint inhibitors and other immunotherapies. This rationale is supported by pre-clinical data in multiple tumor types.

Idera is currently conducting a Phase 1/2 clinical trial of intratumoral IMO-2125 in combination with ipilimumab, a CTLA4 antibody, and in a separate arm exploration of the combination of intratumoral IMO-2125 with pembrolizumab, an anti-PD1 antibody. The Phase 1 dose exploration portion of the trial is being conducted at the University of Texas MD Anderson Cancer Center. This trial is being conducted in patients with relapsed or refractory metastatic melanoma who have failed prior PD-1 therapy. In the second half of 2016, the Company announced positive preliminary clinical data from the initial dosing cohorts in the ipilimumab arm of the dose escalation portion of the trial. The company has completed the dose escalation of intratumoral IMO-2125 in the ipilimumab arm of the trial and the combination appears generally well tolerated across all doses explored, without any dose-limiting toxicity and without reaching a maximally tolerated dose. The trial is currently enrolling additional patients with the goal to select the dose and commence the multi-center phase 2 portion of the trial in the second quarter of 2017. The company has also commenced enrollment into the pembrolizumab combination arm of the trial. The Company has requested and expects to conduct an end of phase 1 meeting with the U.S. Food and Drug Administration during the first quarter of 2017 to discuss the plans for registration trials and regulatory pathways for intratumoral IMO-2125 in PD1 refractory metastatic melanoma.

Additionally, in 2017 the company plans to initiate trials exploring IMO-2125 as a monotherapy agent in multiple solid tumor types and exploration of intratumoral IMO-2125 in combination with other checkpoint inhibitors in various solid tumor types.

At the 2017 ASCO (Free ASCO Whitepaper)-SITC Clinical Immuno-Oncology Symposium held February 23 through February 25, in Orlando, FL, Marc Uemura, M.D. of MD Anderson Cancer Center, presented an update of the ongoing IMO-2125 clinical trial in combination with ipilimumab in PD-1 refractory melanoma.

At the upcoming American Association for Cancer Research (AACR) (Free AACR Whitepaper) 2017 Annual Meeting being held April 1-5, in Washington DC, there will be two presentations related to IMO-2125.

On Wednesday, April 5, 2017, Dr. Cara Haymaker of MD Anderson Cancer Center will present an update on the translational data outcomes in a poster presentation entitled, “Translational evidence of reactivated innate and adaptive immunity with intratumoral IMO-2125 in combination with systemic checkpoint inhibitors form a Phase 1/2 study in patients with anti-PD-1 refractory metastatic melanoma.”

Additionally, on the same day, Daqing Wang, Ph.D., Principal Scientist, Idera Pharmaceuticals will present new IMO-2125 pre-clinical data in a poster entitled, “Local treatment with novel TLR9 agonist IMO-2125 demonstrates anti-tumor activity in preclinical models of pancreatic cancer.”

Third Generation Antisense Platform (3GA)
Idera’s proprietary third-generation antisense (3GA) platform technology is focused on silencing the mRNA associated with disease causing genes. Idera has designed 3GA oligonucleotides to overcome specific challenges associated with earlier generation antisense technologies and RNAi technologies such as immunotoxicities and less than optimal therapeutic index.

Over the past two years, Idera has generated 22 unique compounds developed to target specific genes across a wide variety of therapeutic areas such as rare diseases, oncology, autoimmune disorders, metabolic conditions and single point mutations. The company is currently conducting activities ranging from cell culture through IND-enabling toxicology. The current portfolio is designed to create both internal development candidates as well as partnering opportunities for disease areas outside of Idera’s stated focus.

The first partnering endeavor is demonstrated through Idera’s collaboration with GSK developing an undisclosed 3GA gene target for renal conditions. Idera and GSK entered into the collaboration in late 2015 and GSK’s stated goal is to achieve selection of clinical development candidate in the first quarter of 2018.

Additionally, in January of 2017, Idera announced selection of its first internal candidate to enter clinical development. For strategic and competitive purposes, Idera is withholding naming the specific target until the second half of 2017. Idera has selected a well-established liver target, with available, validated pre-clinical animal models, well-understood clinical endpoints, which has the potential for both rare and broader disease applications. Idera is currently conducting the IND-enabling toxicology for this program and expects to file and IND and enter the clinic in 2018.

Toll-like Receptor (TLR) Antagonism
Dermatomyositis Clinical Development Program
In late 2015, Idera announced the initiation of a Phase 2 clinical trial of IMO-8400 in patients with dermatomyositis, a rare auto-immune condition, which negatively affects skin and may result in debilitating muscle weakness. TLRs have been reported to play an important role in the pathogenesis of the disease. This randomized, double-blind, placebo controlled Phase 2 trial is expected to enroll 36 patients and will be conducted at approximately 22 clinical sites worldwide. The Company plans to complete enrollment of this trial by the end of 2017 and have clinical data available in 2018.

Financial Results
Fourth Quarter Results
Net income applicable to common stockholders for the three months ended December 31, 2016 was $0.8 million, or $0.01 per basic and diluted share, compared to a net loss applicable to common stockholders of $12.0 million, or $0.10 per basic and diluted share, for the same period in 2015. Revenue in the fourth quarter of 2016 was $15.3 million, primarily related to our Vivelix Agreement entered into in November 2016. There was nominal revenue recognized in the fourth quarter of 2015. Research and development expenses for the three months ended December 31, 2016 totaled $11.0 million compared to $8.6 million for the same period in 2015. General and administrative expense for the three months ended December 31, 2016 and December 31, 2015 were $3.5 million and $3.7 million, respectively.

Full Year Results
Net loss applicable to common stockholders for the year ended December 31, 2016 was $38.4 million or $0.30 per basic and diluted share, compared to net loss applicable to common stockholders of $48.6 million, or $0.42 per basic and diluted share, for the same period in 2015. Revenue for the year ended December 31, 2016 was $16.2 million, primarily related to our Vivelix Agreement entered into in November 2016. There was nominal revenue recognized for the year ended December 31, 2015. Research and development expenses for the year ended December 31, 2016 totaled $39.8 million compared to $33.7 million for the same period in 2015. General and administrative expenses for the year ended December 31, 2016 totaled $15.1 million compared to $15.4 million for the same period in 2015.

As of December 31, 2016, our cash, cash equivalents and investments totaled $109.0 million compared to $87.2 million as of December 31, 2015. We currently anticipate our cash position is capable of funding our operations into the second quarter of 2018.

On March 16, 2017 Fortress Biotech, Inc. (NASDAQ: FBIO) ("Fortress"), a biopharmaceutical company dedicated to acquiring, developing and commercializing novel pharmaceutical and biotechnology products, reported financial results and recent corporate highlights for the fourth quarter and full year ended December 31, 2016 (Press release, Fortress Biotech, MAR 15, 2017, View Source [SID1234518161]).

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Dr. Lindsay A. Rosenwald, Fortress’ Chairman, President and Chief Executive Officer, said, "Fortress had another productive year in 2016 and early 2017, with the launch of three additional Fortress Company subsidiaries, Cellvation, Caelum Biosciences, and Cyprium Therapeutics, which broaden our pipeline in cellular therapeutics and rare disease. In addition, we completed a tender offer purchasing a majority of National Holdings Corporation, a full service investment banking and advisory firm, which has a significant presence in biotechnology and the life sciences. National presents multiple opportunities for synergies with our core biotech drug development business. At the same time, our established Fortress Companies have continued to achieve significant milestones, including the publication of a case study in The New England Journal of Medicine in which Mustang Bio’s MB-101 CAR T therapy achieved an unprecedented complete response in a glioblastoma patient. In 2017, we plan to continue to work with our Fortress Companies to advance their pipelines in and toward clinical development, and explore opportunities to strengthen our subsidiary company portfolio."

Financial Results:
As of December 31, 2016, Fortress’ consolidated cash and cash equivalents totaled $88.3 million, compared to $82.5 million as of September 30, 2016, and $98.2 million as of December 31, 2015, an increase of $5.8 million for the fourth quarter and a decrease of $9.9 million year-to-date. These totals exclude restricted cash of $15.9 million as of December 31, 2016 and September 30, 2016, and restricted cash of $14.6 million as of December 31, 2015.

Revenue totaled $16.5 million as of December 31, 2016, compared to $0.9 million as of December 31, 2015. Total revenue as of December 31, 2016 includes $6.2 million of Fortress revenue and $10.3 million of revenue from National Holdings Corporation (includes revenue from the date of the close of the acquisition, September 9, 2016 through September 30, 2016).

Research and development expenses were $29.6 million for the year ended December 31, 2016, of which $22.6 million was related to Fortress Companies. This compares to $18.4 million for 2015, of which $8.4 million was related to Fortress Companies. Noncash stock-based compensation expenses included in research and development were $4.7 million for the year ended December 31, 2016, and $5.8 million for 2015.

Research and development expenses from license acquisitions totaled $5.5 million for the year ended December 31, 2016, compared to $11.4 million for the year ended December 31, 2015.

General and administrative expenses were $34.0 million for the year ended December 31, 2016, of which $15.4 million was related to Fortress Companies. This compares to $21.6 million for 2015, of which $6.7 million was related to Fortress Companies. Noncash stock-based compensation expenses included in general and administrative expenses were $7.4 million for the year ended December 31, 2016, and $8.5 million for 2015.

Net loss attributable to common stockholders was $55.1 million, or $1.38 per share, for the year ended December 31, 2016, compared to a net loss attributable to common stockholders of $48.4 million, or $1.24 per share, for 2015.

Recent Fortress Biotech and Fortress Company Highlights:

Fortress Biotech, Inc.
Phase 1/2 data demonstrating CNDO-109-activated allogeneic natural-killer cells are safe and well‐ tolerated, and potentially capable of extending complete remissions in high‐risk acute myeloid leukemia patients were presented in May at the Innate Killer Summit 2016.

In September 2016, Fortress, through its subsidiary FBIO Acquisition, Inc., purchased approximately 56 percent of National Holdings Corporation (NASDAQ: NHLD) common stock at a purchase price of $3.25 per share in cash, for an aggregate purchase price of approximately $22.9 million.

Fortress recently launched three new Fortress Companies: Cellvation, to develop cellular therapeutics for the treatment of traumatic brain injury, Caelum Biosciences, to develop therapies for amyloid light chain ("AL") amyloidosis and Cyprium Therapeutics, to develop novel therapies for the treatment of Menkes disease and related copper metabolism disorders.

Avenue Therapeutics, Inc.

In 2016, Avenue completed an end of Phase 2 meeting with the U.S. Food and Drug Administration regarding its lead candidate, intravenous (IV) tramadol, for the management of post-operative pain. Based on the outcome, Avenue anticipates its Phase 3 study will consist of three trials: an efficacy and safety study in an orthopedic model, an efficacy and safety study in a soft tissue model and an openlabel safety study. Initiation of the Phase 3 study is planned for 2017.

In December 2016, Avenue received Notices of Allowance from the U.S. Patent and Trademark Office for two continuation patent applications covering methods of administration for IV Tramadol; issuance of both patents occurred in February 2017.

Caelum Biosciences, Inc.

In January 2017, Caelum entered into an agreement with Columbia University ("Columbia") to secure exclusive worldwide license rights to CAEL-101, a chimeric fibril-reactive monoclonal antibody.

Interim data from the ongoing Phase 1a/1b study of CAEL-101 were presented by Columbia in December 2016 at the American Society of Hematology (ASH) (Free ASH Whitepaper)’s 58th Annual Meeting. These data demonstrate CAEL-101 is safe and well-tolerated, and 67 percent of patients with measurable disease burden showed organ response. Full Phase 1a/1b data are expected mid-2017.

Cellvation, Inc.

On October 31, 2016, Cellvation secured exclusive worldwide rights to three programs for traumatic brain injury (TBI) from The University of Texas Health Science Center at Houston: two Phase 2 programs evaluating CEVA101 cell therapy in adult and pediatric TBI patients, and CEVA-D, a next-generation bioreactor that enhances the anti-inflammatory potency of bone marrow-derived cells without genetic manipulation. Data from the Phase 2 CEVA101 studies are expected in 2019.

Phase 1 data demonstrating CEVA101 is safe and effective in modulating the neuroinflammatory response and reducing secondary injury in adults with TBI were published online in November 2016 in STEM CELLS.

Checkpoint Therapeutics, Inc.

In January 2016, Checkpoint announced it signed a license agreement with Teva Pharmaceutical Industries Ltd. for the exclusive worldwide rights to develop and commercialize CK-102, an oral poly (ADP-ribose) polymerase (PARP) inhibitor in early clinical development for solid tumors. A Phase 1b study is planned to commence in the next 12 months.

In May 2016, Checkpoint entered into an exclusive worldwide license agreement with Jubilant Biosys Ltd. to develop and commercialize novel compounds that inhibit the BET protein BRD4. In connection therewith, Checkpoint sublicensed development and commercialization rights to the compounds in hematological malignancies to TG Therapeutics, Inc. Checkpoint retains development and commercialization rights in solid tumors. Checkpoint plans to submit an Investigational New Drug ("IND") application for a Phase 1 study in the second half of 2017.

In September 2016, following approval of the IND, the first patient was dosed in the Phase 1 doseescalation portion of a Phase 1/2 study of epidermal growth-factor receptor ("EGFR") inhibitor CK-101. Checkpoint expects to initiate the Phase 2 safety and efficacy portion of the study in patients with EGFR T790M mutation‐positive non‐small cell lung cancer in the second half of 2017.

Cyprium Therapeutics, Inc.

In March 2017, Cyprium entered into a Cooperative Research and Development Agreement (CRADA) with the Eunice Kennedy Shriver National Institute of Child Health and Human Development (NICHD), part of the NIH, to advance the clinical development of Phase 3 candidate CUTX-101, a Copper Histidinate injection, for the treatment of Menkes disease. Also effective in March 2017, Cyprium and the NICHD entered into a worldwide, exclusive license agreement to develop and commercialize adenoassociated virus (AAV)-based gene therapy, called AAV-ATP7A, to deliver working copies of the copper transporter that is defective in Menkes patients and to be used in combination with CUTX-101.

Helocyte, Inc.
In February and March 2016, respectively, Helocyte entered into investigator-initiated clinical research support agreements with City of Hope National Medical Center to support two Phase 2 studies of Helocyte’s immunotherapies Triplex and PepVax for cytomegalovirus control in allogeneic hematopoietic stem-cell transplant recipients ("HSCT"). The ongoing Phase 2 studies are also supported by grants from the National Cancer Institute.

From June to November 2016, Helocyte closed on sales of convertible promissory notes raising aggregate gross proceeds of approximately $4.4 million.

Phase 1 data demonstrating Triplex is safe, well-tolerated and highly immunogenic at multiple dose levels in healthy volunteers were published in December 2016 online in Blood. These data supported the initiation of the Phase 2 study of Triplex in HSCT patients, which is expected to be fully enrolled by the second half of 2017.
Journey Medical Corporation (JMC)

In January 2016, JMC entered into two licensing agreements with third parties for the distribution of the first two products in the company’s dermatology franchise: Luxamend, a prescription wound cream, and Ceracade, an emollient for the treatment of various types of dermatitis. Sales commenced for Luxamend and Ceracade in April 2016 and June 2016, respectively.

U.S. sales commenced in October 2016 for JMC’s Targadox brand of oral antibiotic, indicated for the treatment of severe acne.

Mustang Bio, Inc.

A case study demonstrating Mustang’s MB-101 (IL13Rα2-specific CAR T cells) achieved a complete response in a glioblastoma patient enrolled in the Phase 1 study was published in the December 29 edition of The New England Journal of Medicine. Additional preclinical and Phase 1 data on MB-101 were presented at the American Society of Gene and Cell Therapy 19th Annual Meeting in May 2016, and the 21st Annual Meeting and Education Day of the Society for Neuro-Oncology in November 2016.

From October 2016 to January 2017, Mustang closed on a total of approximately $94.5 million in a private placement financing, prior to fees and expenses.

On March 15, 2017 Aeterna Zentaris Inc. (NASDAQ, TSX: AEZS) (the "Company"), a specialty biopharmaceutical company engaged in developing and commercializing novel treatments in oncology and endocrinology, reported financial and operating results for the fourth quarter and year ended December 31, 2016 (Press release, AEterna Zentaris, MAR 15, 2017, View Source [SID1234518148]).

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Commenting on recent key developments, David A. Dodd, President and Chief Executive Officer of the Company, stated, "During the fourth quarter and the first few weeks of 2017, we made substantial progress with our development programs. On January 30, 2017 we announced the conclusion of the clinical phase of our development of Zoptrex. The following day we had a successful pre-NDA meeting with the FDA. We anticipate reporting top-line results in April. This is a very exciting and anxious time for us, as we approach the culmination of highly dedicated and successful work by many throughout our Company. I would like to thank our R&D team for their hard work in bringing Zoptrex to this point."

Mr. Dodd continued his commentary with an update on the development of Macrilen. "On January 4, 2017, we reported the top-line results from our confirmatory Phase 3 study of Macrilen for the evaluation of adult growth hormone deficiency ("AGHD"). We reported that the top-line results indicated that macimorelin did not meet one of the pre-defined criteria required to demonstrate equivalence to the Insulin Tolerance Test ("ITT") as a means of diagnosing AGHD. Following this announcement, we conducted a thorough evaluation of the study data, including external statistical expertise and independent review by leading endocrinologists in both the U.S. and Europe. We were highly encouraged by the results and input received from these experts. As we announced on February 13, 2017, we concluded that Macrilen demonstrated performance supportive of achieving registration with the U.S. Food and Drug Administration, despite its failure to meet one of the pre-defined equivalence criteria. We explained the reasons for our conclusion in our February 13 release. Briefly, we concluded that Macrilen demonstrated more consistent and reproducible results than the ITT. Moreover, Macrilen stimulated the pituitary gland more powerfully than the ITT and demonstrated good specificity and sensitivity in this study, thus reproducing the results of our previous study. We demonstrated that Macrilen achieves a high degree of correlation with the ITT, which could be further optimized when a higher cut-off point, such as the ITT cut-off point, is used for the Macrilen test. We believe that such an increased cut-off point would be justified by the more powerful stimulation of Macrilen as compared to the ITT. We are scheduled to meet with the FDA at the end of Q1 to discuss our rationale for proceeding with Macrilen."

Fourth Quarter and Full Year Financial Highlights
Revenues
Sales commission and other were $94,000 and $414,000 for the three and twelve months ended December 31, 2016, respectively, and $41,000 and $297,000, for the same periods in 2015, respectively. The quarter-over-quarter and year-over-year increases were attributable to our sales team exceeding pre-established unit sales baseline thresholds under our co-promotion agreements to sell Saizen and to our promotion of APIFINY, which did not begin until the first quarter of 2016. In the corresponding periods of 2015, sales commission and other revenues were mainly related to EstroGel, which we no longer promote.
License fees were $210,000 and $497,000 for the three and twelve months ended December 31, 2016, respectively, as compared to $61,000 and $248,000 for the same periods in 2015. The increase is explained by the out-licensing agreements that we entered into in 2016 for Zoptrex with respect to certain territories outside our core areas of interest.

Research and Development ("R&D") costs
R&D costs were $4.6 million and $16.5 million for the three and twelve months ended December 31, 2016, respectively, compared to $4.2 million and $17.2 million for the same periods in 2015. The increase in our R&D costs for the three months ended December 31, 2016, as compared to the same period in 2015, was mainly attributable to higher comparative third-party costs in connection with the confirmatory Phase 3 clinical trial of Macrilen, which was initiated late in 2015 with the enrollment of the first patient in the fourth quarter of 2015. Patient recruitment was completed in the fourth quarter of 2016. The decrease in our R&D costs for the twelve months ended December 31, 2016, as compared to the same period in 2015, was mainly attributable to the realization of cost savings in connection with our ongoing efforts to streamline our R&D activities and to increase our commercial operations and flexibility by reducing our R&D staff, which was started in 2014.
General and Administrative ("G&A") Expenses

G&A expenses were $1.8 million and $7.1 million for the three and twelve months ended December 31, 2016, respectively, as compared to $4.0 million and $11.3 million for the same periods in 2015. The decrease in our G&A expenses for the three months and twelve months ended December 31, 2016, as compared to the same periods in 2015, is mainly due to the recording in the fourth quarter of 2015 of a provision related to the restructuring of our finance and accounting function and the closure of our office in Quebec City, as well as the realization of cost savings in connection with the restructuring. The comparative decrease for the twelve-month period is also explained by certain transaction costs allocated to warrants in connection with the completion of share issuances in March and December 2015.

Selling Expenses
Selling expenses were $1.5 million and $6.7 million for the three and twelve months ended December 31, 2016, respectively, as compared to $1.8 million and $6.9 million for the same periods in 2015. Selling expenses for the three and twelve months ended December 31, 2016 and 2015 represent mainly the costs of our contracted sales force related to our co-promotion activities as well as our internal sales management team. Selling expenses remained relatively stable during 2016.

Net Finance (Costs) Income
Net finance (costs) income were $(622,000) and $4.5 million for the three and twelve months ended December 31, 2016, as compared to $(185,000) and $(15.3) million, for the same periods in 2015. The increases in finance income or decreases in finance costs were mainly attributable to the change in fair value recorded in connection with our warrant liability. Such change in fair value results from the periodic "mark-to-market" revaluation, via the application of option pricing models, of outstanding share purchase warrants. During 2016, the "mark-to-market" warrant valuation was impacted by the expiration of the remaining Series B Warrants. During 2015, the change in assumptions that were applied to determine the fair value of the alternate cashless feature included in the Series B Warrants significantly impacted the "mark-to-market" valuation. Furthermore, the closing price of our common shares, which, on the NASDAQ, fluctuated from $3.25 to $4.94 during the three-month period and $2.67 to $4.94 during the twelve-month period ended December 31, 2016, respectively, compared to $4.00 to $11.43 and $4.00 to $84.20 during the same periods in 2015, also had a direct impact on the change in fair value of warrant liability. In addition, with specific reference to 2015, finance costs were also impacted by the warrant exercise inducement fee paid to certain holders of the Series B Warrants.

Net Loss
Net loss for the three and twelve months ended December 31, 2016 was $(8.2) million and $(25.0) million, or $(0.71) and $(2.41) per basic and diluted share, as compared to a net loss of $(10.0) million and $(50.1) million, or $(1.46) and $(18.14) per basic and diluted share, for the same periods in 2015. The decrease in net loss for the three months ended December 31, 2016, as compared to the same period in 2015, is due largely to lower G&A expenses, as presented above. The decrease in net loss for the twelve months ended December 31, 2016, as compared to the same period in 2015, is due largely to lower operating expenses and higher comparative net finance income, as presented above.

Liquidity
Cash and cash equivalents were $22.0 million as at December 31, 2016, as compared to $41.5 million as at December 31, 2015. The decrease in cash and cash equivalents as at December 31, 2016, as compared to December 31, 2015, is mainly due to the net cash used in operating activities. The decrease was partially offset by the net proceeds generated by the sale and issuance of common shares and warrants during 2016.

On March 15, 2017 Prima BioMed Ltd (ASX: PRR; NASDAQ: PBMD) ("Prima" or the "Company") reported that the second cohort comprising six patients has now been fully recruited for its TACTI-mel (Two ACTive Immunotherapeutics in melanoma) clinical trial being conducted in Australia (Press release, Prima Biomed, MAR 15, 2017, View Source [SID1234518142]). Patients with unresectable or metastatic melanoma that have had a suboptimal response to KEYTRUDA were dosed with the higher 6 mg dose of IMP321 in combination with KEYTRUDA.

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Prima’s Chief Medical & Scientific Officer, Dr Frédéric Triebel, will be presenting the TACTI-mel clinical trial at the Immune Checkpoint Inhibitors conference at the Sheraton Hotel Boston, Massachusetts, held on March 15-16, 2017.
The presentation will be delivered at 1:30pm on Thursday 16 March, 2017 EDT.
A copy of these presentation slides will be made available on the Prima BioMed website.
Further information on the conference can be found at http://immune-checkpoint.com/about/about

About IMP321
IMP321, a first-in-class Antigen Presenting Cell (APC) activator based on the immune checkpoint LAG-3, represents one of the first proposed active immunotherapy drugs in which the patient’s own immune system is harnessed to respond to tumour antigenic debris created by chemotherapy. As an APC activator IMP321 boosts the network of dendritic cells in the body that can respond to tumour antigens for a better anti-tumour CD8 T cell response.