Ophthotech Reports First Quarter 2016 Financial and Operating Results

NEW YORK–(BUSINESS WIRE)– Ophthotech Corporation (Nasdaq:OPHT) today announced financial results
for the first quarter ended March 31, 2016 and provided an update on the
Company’s business and product development programs.

“During the first quarter, we continued to prepare for the exciting
opportunities that lie ahead in 2016,” said David R. Guyer, M.D., Chief
Executive Officer and Chairman of the Board of Ophthotech. “We look
forward to providing initial, topline data from our two pivotal Phase 3
trials of Fovista^® in combination with Lucentis^®
in the fourth quarter of this year, completing patient recruitment of
the Phase 3 Fovista^® in combination with Eylea^® or
Avastin^® trial, continuing progress in our Fovista^®
Expansion Studies, and advancing our Zimura^® programs.
Recently, we had the privilege of welcoming Dr. Carmen Puliafito as
Chief of Strategic Development to Ophthotech. As one of the world’s
leading experts in ophthalmology and health management, we are delighted
to have Carmen join our company during this exciting period for
Ophthotech.”

Highlights

• Initial, topline data from both pivotal Phase 3 trials of Fovista^®
  (pegpleranib) in combination with Lucentis^® (ranibizumab)
  in wet age-related macular degeneration (AMD) is expected in the
  fourth quarter of this year. A third Phase 3 trial, which is
  investigating Fovista^® in combination with either Eylea^®
  (aflibercept) or Avastin^® (bevacizumab), continues to
  enroll patients and remains on track to complete enrollment in 2016. A
  final payment of $30 million of the $130 million enrollment-based
  milestone payments under the ex-US licensing and commercialization
  agreement with Novartis will be earned when the final Fovista^®
  Phase 3 study completes enrollment.
• In April, Carmen A. Puliafito, M.D., M.B.A., one of the world’s
  leading experts in ophthalmology and health management, was appointed
  Chief of Strategic Development at Ophthotech. Dr. Puliafito joined the
  Company from the Keck School of Medicine of the University of Southern
  California where he most recently served as Dean, a position that he
  held from 2007 to 2016. Prior to USC, Dr. Puliafito served as Chair
  and Professor of the Department of Ophthalmology at the Bascom Palmer
  Eye Institute of the University of Miami Miller School of Medicine.
  Prior to his leadership at Bascom Palmer, he served as founding
  director of the New England Eye Center and Chair and Professor of the
  Department of Ophthalmology at Tufts University. Dr. Puliafito has
  also been at the forefront of clinical innovation, including the
  introduction of Avastin^® (bevacizumab) for the treatment of
  retinal disorders. Dr. Puliafito is on leave from his position as
  Professor of Ophthalmology and Health Management at the USC Roski Eye
  Institute.
• The Fovista^® Expansion Studies are designed to further
  evaluate the potential of Fovista^® in addressing a variety
  of unmet needs in wet AMD including investigating the potential role
  of Fovista^® in combination with multiple anti-VEGF agents
  to reduce sub-retinal fibrosis and the potential role of Fovista^®
  combination therapy to reduce the treatment burden for wet AMD
  patients. These studies are progressing well.
• During the first quarter of 2016, the first patient was dosed in a
  Phase 2/3 clinical trial of Zimura^® (avacincaptad pegol
  sodium), an inhibitor of complement factor C5, in patients with
  geographic atrophy, an advanced form of dry AMD. The Phase 2 trial
  evaluating the potential role of Zimura^® when administered
  in combination with anti-VEGF drugs for the treatment of wet AMD is
  on-going.
• The Company had one oral presentation and two poster presentations
  during the Association for Research in Vision and Ophthalmology (ARVO)
  Annual Meeting from May 1-5, 2016. Complete abstracts are available on
  the ARVO website at: http://www.arvo.org/online_planner
  (Abstract 1347 – search Rezaei, Abstract 3343, Abstract 4418).

First Quarter 2016 Financial Highlights

• Cash Position: As of March 31, 2016, the Company had $356.1
  million in cash, cash equivalents, and available for sale securities.
• Revenues: Collaboration revenue was $15.7 million for the
  quarter ended March 31, 2016, compared to $41.7 million for the same
  period in 2015. Collaboration revenue recognized in the first quarter
  of 2015 related primarily to drug supply shipments the Company
  completed under the Novartis agreement. Revenue recognized in the
  prior year period related primarily to license fees attributable to
  the $50.0 million enrollment-based milestone the Company achieved in
  March 2015 under the same agreement. The balance of the milestone
  earned in the first quarter of 2015 was recorded as deferred revenue.
• R&D Expenses: Research and development expenses were $37.8
  million for the quarter ended March 31, 2016, compared to $24.6
  million for the same period in 2015. The increase in research and
  development expense in the quarter ended March 31, 2016 was primarily
  due to the Company’s Fovista^® Phase 3 clinical program and
  Fovista^® Expansion Studies, as well as increased personnel
  costs associated with additional management and research and
  development staffing, including share-based compensation expense.
• G&A Expenses: General and administrative expenses were
  $14.7 million for the quarter ended March 31, 2016 compared to $9.6
  million for the same period in 2015. The increase in general and
  administrative expenses in the quarter ended March 31, 2016 relates
  primarily to an increase in costs to support the Company’s expanded
  operations and public company infrastructure, including additional
  management, corporate staffing, pre-launch commercial activities,
  professional services and consulting fees, and increased share-based
  compensation.
• Net Loss: The Company reported a net loss for the quarter ended
  March 31, 2016 of $36.3 million, or ($1.03) per diluted share,
  compared to net income of $6.6 million, or $0.19 per diluted share,
  for the same period in 2015.

Conference Call/Web Cast Information

Ophthotech will host a conference call/audio web cast to discuss the
Company’s financial and operating results, its development programs and
provide a general business update. The call is scheduled for May 4, 2016
at 8:00 a.m. Eastern Time. To participate in this conference call, dial
888-359-3624 (USA) or 719-785-1765 (International), passcode 2126947. A
live, listen-only audio webcast of the conference call can be accessed
on the Investor Relations section of the Ophthotech website at: www.ophthotech.com.
A replay will be available approximately two hours following the live
call for two weeks. The replay number is (888) 203-1112 (USA Toll Free),
passcode 2126947. The audio webcast can be accessed at: www.ophthotech.com.

About Ophthotech Corporation

Ophthotech is a biopharmaceutical company specializing in the
development of novel therapeutics to treat back of the eye diseases,
with a focus on developing innovative therapies for age-related macular
degeneration (AMD). Ophthotech’s most advanced product candidate, Fovista^®
anti-PDGF therapy, is in Phase 3 clinical trials for use in combination
with anti-VEGF therapy that represents the current standard of care for
the treatment of wet AMD. Ophthotech’s second product candidate, Zimura^®,
an inhibitor of complement factor C5, is being developed for the
treatment of geographic atrophy, a form of dry AMD, and in combination
with anti-VEGF therapy in wet AMD patients. For more information, please
visit www.ophthotech.com.

Forward-looking Statements

Any statements in this press release about Ophthotech’s future
expectations, plans and prospects constitute forward-looking statements
for purposes of the safe harbor provisions under the Private Securities
Litigation Reform Act of 1995. Forward-looking statements include any
statements about Ophthotech’s strategy, future operations and future
expectations and plans and prospects for Ophthotech, and any other
statements containing the words “anticipate,” “believe,” “estimate,”
“expect,” “intend”, “goal,” “may”, “might,” “plan,” “predict,”
“project,” “target,” “potential,” “will,” “would,” “could,” “should,”
“continue,” and similar expressions. In this press release, Ophthotech’s
forward looking statements include statements about the timing and
progress of the Fovista^® Phase 3 clinical
program, the Fovista^® Expansion Studies, and
Ophthotech’s Zimura^® development programs for
geographic atrophy and, in combination with anti-VEGF drugs, for wet
AMD. Such forward-looking statements involve substantial risks and
uncertainties that could cause Ophthotech’s clinical development
programs, future results, performance or achievements to differ
significantly from those expressed or implied by the forward-looking
statements. Such risks and uncertainties include, among others, those
related to the initiation and conduct of clinical trials, availability
of data from clinical trials and expectations for regulatory approvals
or other actions and other factors discussed in the “Risk Factors”
section contained in the quarterly and annual reports that Ophthotech
files with the SEC. Any forward-looking statements represent
Ophthotech’s views only as of the date of this press release. Ophthotech
anticipates that subsequent events and developments will cause its views
to change. While Ophthotech may elect to update these forward-looking
statements at some point in the future, Ophthotech specifically
disclaims any obligation to do so except as required by law.

OPHT-G

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