GlobeNewswire Inc | Aug 12, 2021 08:00AM EDT

August 12, 2021

OXFORD, United Kingdom, Aug. 12, 2021 (GLOBE NEWSWIRE) -- Vaccitech plc (NASDAQ: VACC) today announced its financial results for the second quarter, ended June 30, 2021, and provided an overview of the Companys recent corporate developments. Vaccitech is a clinical-stage biopharmaceutical company engaged in the discovery and development of novel immunotherapeutics and vaccines for the treatment and prevention of infectious diseases and cancer.

The second quarter of 2021 was our first as a public company following our initial public offering that closed in May, said Bill Enright, CEO of Vaccitech. Capital raised by that transaction as well as from a Series B private round earlier this year is being applied to our chronic infectious disease and oncology programs. We continue to make significant progress across all of our ongoing programs, including the recent announcement of our clinical collaboration with Arbutus.

Second Quarter and Recent Corporate Developments

-- Closed an initial public offering of American Depository Shares for total gross proceeds of $110.5 million. -- Signed a clinical trial collaboration agreement with Arbutus Biopharma Corporation to evaluate an innovative therapeutic combination for the treatment of subjects with chronic hepatitis B virus (HBV) infection (CHB) who are already receiving standard-of-care nucleoside or nucleotide analog (NA) therapy. The Phase 2a clinical trial will evaluate the safety, pharmacokinetics, immunogenicity, and antiviral activity of Arbutuss RNAi therapeutic, AB-729, followed by the Companys immunotherapy candidate, VTP-300, in NA-suppressed subjects with CHB.

Upcoming Milestones

-- In the fourth quarter of 2021, the Company expects to announce topline safety and immunogenicity data from the Phase 1 trial of VTP-300, HBV001, in healthy volunteers and patients with chronic HBV infection. -- In the same quarter, the Company expects to initiate dosing in the Phase 1/2a trial of VTP-600 in patients with non-small cell lung cancer in combination with a checkpoint inhibitor and chemotherapy. -- In the first quarter of 2022, the Company intends to conduct an interim efficacy review, of HBV002, the Phase 1/2a clinical trial of VTP-300 in patients with chronic HBV infection. -- In the second quarter of 2022, the Company intends to conduct an interim efficacy review of HPV001, the Phase 1/2a clinical trial of VTP-200 in patients with high-risk and persistent HPV infection.

Second Quarter 2021 Financial Highlights:

-- Cash position: As of June 30, 2021, cash and cash equivalents were $243.6 million, compared to $43.3 million as of December 31, 2021. The increase was primarily due to completion of the Series B financing in the first quarter of 2021, which raised a further $125.3 million, and to the initial public offering in the second quarter, which raised gross proceeds of $110.5 million. The Company believes its cash and cash equivalents are sufficient to fund operations into the first half of 2024. -- Research and development (R&D) expenses: Research and development expenses were $4.5 million for the second quarter of 2021 compared to $3.9 million for the comparable period of the prior year. The increase in R&D expenses was primarily due to increased spending on progressing the development of VTP-300 and VTP-850. -- General and administrative expenses: General and administrative expenses were $12.4 million for the second quarter of 2021 compared to $1.0 million for the comparable period of the prior year. The increase was primarily attributable to higher personnel costs, reflecting mainly an increase in the Companys headcount over the prior period and vesting of certain share awards upon IPO, and higher insurance costs associated with operating as a public company. -- Net loss: The Company generated a net loss attributable to shareholders of $15.9 million, or $0.64 per share on both basic and fully diluted bases, for the second quarter of 2021 compared to a net loss of $3.6 million, or $0.45 per share on both basic and fully diluted bases, for the same period of the prior year.

About Vaccitech

Vaccitech is a clinical-stage biopharmaceutical company engaged in the discovery and development of novel immunotherapeutics and vaccines for the treatment and prevention of infectious diseases and cancer. The Companys proprietary platform comprises proprietary modified simian adenoviral vectors, known as ChAdOx1 and ChAdOx2, as well as the well-validated Modified Vaccinia Ankara, or MVA, boost vector, both with demonstrable tolerability profiles and without the ability to replicate in humans. The combination of a ChAdOx prime treatment with subsequent MVA boost has consistently generated significantly higher magnitudes of CD8+ T cells compared with other technologies and approaches. The company has a broad pipeline of both clinical and preclinical stage therapeutic programs in solid tumors and viral infections and prophylactic viral vaccine programs. Vaccitech co-invented a COVID-19 vaccine with the University of Oxford, now approved for use in many territories and exclusively licensed worldwide to AstraZeneca plc through Oxford University Innovation, or OUI. Vaccitech is entitled to receive a share of the milestones and royalty income received by OUI from AstraZeneca plc.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, statements regarding the timing and advancement of the Companys programs, including the clinical trials of VTP-200, VTP-300 and VTP-600 and the Companys cash runway The words may, will, could, would, should, expect, plan, anticipate, intend, believe, estimate, predict, project, potential, continue and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any forward-looking statements in this press release are based on managements current expectations and beliefs and are subject to numerous risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation: the success, cost and timing of the Companys product development activities and planned and ongoing clinical trials, the Companys ability to execute on its strategy, regulatory developments, the Companys ability to fund its operations and the impact that the current COVID-19 pandemic will have on the Companys clinical trials and preclinical studies and other risks identified in the Companys filings with the Securities and Exchange Commission (the SEC), including its Quarterly Report on Form 10-Q for the first quarter of 2021 and subsequent filings with the SEC. The Company cautions you not to place undue reliance on any forward-looking statements, which speak only as of the date they are made. The Company expressly disclaims any obligation to publicly update or revise any such statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.

VACCITECH PLC. CONDENSED CONSOLIDATED BALANCE SHEETS(IN THOUSANDS, EXCEPT NUMBER OF SHARES AND PER SHARE AMOUNTS)(UNAUDITED)

June 30, December 31, 2021 2020ASSETSCurrent assets: Cash and cash equivalents $ 243,619 $ 43,266 Accounts receivable 37 518 Research and development incentives receivable 4,558 2,708 Prepaid expenses and other current assets 8,514 1,409 Total current assets 256,728 47,901 Property and equipment, net 1,038 629 Right of use assets, net 2,040 2,136 Deferred tax assets 32 - Total assets $ 259,838 $ 50,666 LIABILITIES, REDEEMABLE PREFERRED SHARES AND SHAREHOLDERS? DEFICIT Current liabilities: Accounts payable $ 4,683 $ 4,667 Accrued expenses and other current liabilities 3,441 2,537 Deferred revenue 217 245 Current portion of lease liability 202 192 Total current liabilities 8,543 7,641 Convertible loan notes ? non current - 44,700 Lease liability ? non current 1,384 1,472 Total liabilities $ 9,927 $ 53,813 Commitments and contingencies Series A redeemable convertible preferred shares(Series A shares); 0.10 nominal value; no shares $ - $ 33,765 issued and outstanding; (December 31, 2020: issuedand outstanding: 22,065)Series B redeemable convertible preferred shares(Series B shares); 0.10 nominal value; no shares $ - $ - issued and outstanding; (December 31, 2020: issuedand outstanding: no shares issued or outstanding)Shareholders? equity (deficit): Ordinary shares, 0.000025 nominal value; 34,328,231shares authorized, issued and outstanding (December 1 0^1 31, 2020: authorized, issued and outstanding:7,960,458)Deferred A shares, 1 nominal value; 63,443 sharesauthorized, issued and outstanding (December 31, 86 - 2020: no shares issued or outstanding)Deferred B shares, 1 nominal value; 570,987 sharesauthorized, issued and outstanding (December 31, 8 - 2020: no shares issued or outstanding)Deferred C shares, 0,000007 nominal value,27,828,231 shares authorized, issued and outstanding 0^1 0^1 (December 31, 2020: authorized, issued andoutstanding: 7,960,458)Additional paid-in capital 340,793 21,660 Accumulated deficit (88,915 ) (57,720 )Accumulated other comprehensive loss ? foreign (2,580 ) (1,243 )currency translation adjustmentsNoncontrolling interest 518 391 Total shareholders? equity (deficit) $ 249,911 $ (36,912 )Total liabilities, redeemable convertible preferred $ 259,838 $ 50,666 shares and shareholders? equity

^1 indicates amount less than thousand

VACCITECH PLC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS(IN THOUSANDS, EXCEPT NUMBER OF SHARES AND PER SHARE AMOUNTS)(UNAUDITED)

Three months ended Six months ended June 30, June 30, June 30, June 30, 2021 2020 2021 2020License revenue $ 16 $ 39 32 42 Service revenue - 97 21 316 Research grants and 19 375 197 858 contractsTotal revenue 35 511 250 1,216 Operating expenses Research and 4,509 3,877 9,119 8,119 developmentGeneral and 12,371 970 14,148 2,082 administrativeTotal operating 16,880 4,847 23,267 10,201 expensesLoss from operations (16,845 ) (4,336 ) (23,017 ) (8,985 )Other income (expense):Change in fair value - - 5,994 - of derivativesUnrealized exchangegain on convertible - - 209 - loan notesLoss onextinguishment of - - (13,789 ) - convertible loannotesInterest income - - 2 - Interest expense - - (2,650 ) - Research anddevelopment 875 679 1,830 1,377 incentivesOther (3 ) - (3 ) - Total other (expense) 872 679 (8,407 ) 1,377 incomeTax (expense)/ (12 ) - 53 - (benefit)Net loss (15,985 ) (3,657 ) (31,371 ) (7,608 )Net loss attributableto noncontrolling 58 69 176 199 interestNet loss attributableto Vaccitech Plc. (15,927 ) (3,588 ) (31,195 ) (7,409 )shareholders Weighted-averageordinary shares 24,897,665 7,904,838 16,523,961 7,860,760 outstanding, basicand dilutedNet loss per shareattributable toordinary $ (0.64 ) $ (0.45 ) (1.89 ) (0.94 )shareholders, basicand diluted Net loss $ (15,985 ) $ (3,657 ) (31,371 ) (7,608 )Other comprehensiveincome/ (loss) ?foreign currency 86 (144 ) (1,330 ) (827 )translationadjustmentsComprehensive loss (15,899 ) (3,801 ) (32,701 ) (8,435 )Comprehensive lossattributable to 55 70 169 218 noncontrollinginterestComprehensive lossattributable to $ (15,844 ) $ (3,731 ) (32,532 ) (8,217 )Vaccitech Plc.shareholders

Investors: Vaccitech Investor Relations Email:ir@vaccitech.co.uk

Vaccitech Media Contacts:Katja Stout, Scius Communications (EU)Direct: +44 (0) 7789435990Email: katja@sciuscommunications.com

Robert Flamm, Ph.D. / Harrison Wong, Burns McClellan, Inc.(US)212-213-0006 ext. 364 / 316Email: rflamm@burnsmc.com / hwong@burnsmc.com

Henry Hodge, Vaccitech (EU)Email: henry.hodge@vaccitech.co.uk