Cellectis Reports Financial Results for 3rd Quarter and First Nine Months 2016

NEW YORK–(BUSINESS WIRE)– Regulatory News:

Cellectis S.A. (Paris:ALCLS) (NASDAQ:CLLS) (Alternext: ALCLS – Nasdaq:
CLLS), a biopharmaceutical company focused on developing immunotherapies
based on gene edited CAR T-cells (UCART), today announced its results
for the three-month period ended September 30, 2016 and for the
nine-month period ended September 30, 2016.

Recent Corporate Highlights

UCART19 in collaboration with Servier / Pfizer

• On June 20, 2016, Cellectis announced that the first patient in
  Servier’s UCART19 Phase 1 clinical trial had been dosed. The UCART19
  Phase 1 clinical trial in ALL and CLL patients is conducted at two
  clinical sites in the UK – at the Great Ormond Street Hospital (GOSH),
  part of UCL, for the pediatric arm of the trial, and at Kings College
  London for the adult arm of the study.
• Interim data from the UCART19 Phase 1 clinical trial is expected to be
  announced at a scientific meeting in H1 2017.

UCART123

• On November 15, 2016, Cellectis announced the successful completion of
  large scale production runs of UCART123, according to cGMP standards.
  Cellectis is planning to file an IND for a Phase 1 clinical trial in
  AML and BPDCN patients by YE 2016 in collaboration with the Weill
  Cornell Medical College and the MD Anderson Cancer Center.
• Weill Cornell will present pre-clinical data on UCART123 in an oral
  presentation at the 58th American Society of Hematology (ASH) Annual
  Meeting and Exposition. The meeting will be held from December 3 to 6,
  2016 in San Diego.

Pfizer Partnership

• Cellectis and Pfizer are making advances in their partnered programs.
  Notably, Pfizer will present on the “Preclinical Evaluation of
  Allogeneic Anti-BCMA Chimeric Antigen Receptor T Cells with Safety
  Switch Domains and Lymphodepletion Resistance for the Treatment of
  Multiple Myeloma” in an oral presentation at ASH in December 2016.

IP / Patent Portfolio

• Issuance of U.S. patent 9,458,439 – which claims gene inactivation by
  use of chimeric restriction endonucleases. This patent, granted by the
  USPTO to the Institut Pasteur and Boston Children’s Hospital, naming
  Dr. André Choulika and Pr. Richard C. Mulligan as co-inventors, is
  exclusively licensed to Cellectis.

Award

• Cellectis won EuropaBio’s 2016
  Most Innovative European Biotech SME Award for the healthcare
  category. The Awards program is a unique annual initiative that
  recognizes innovative biotech small- and medium-sized enterprises
  (SMEs) in Europe and the crucial role that they play in answering some
  of society’s greatest challenges through biotechnology.

Conferences

• Cellectis will participate in the upcoming Oppenheimer Life Sciences
  Summit being held in NYC on November 29, 2016 and will be presenting
  at the Piper Jaffray 28th Annual Health Care Conference on November
  30, 2016 in NYC.

Calyxt – Cellectis’ plant science subsidiary

• Calyxt expanded its patent portfolio with U.S. patent 9,458,439, which
  encompasses broad uses of technologies such as CRISPR/Cas9, Zinc
  Finger Nucleases and TAL-effector Nucleases for plant gene editing.
• On October 20, 2016 Cellectis hosted, along with its agricultural
  biotech subsidiary Calyxt, the world’s first dinner made with gene
  edited foods in New York.
• Calyxt has completed the 2016 expansion of its high-oleic/no trans-fat
  soybean variety (CAL1501) in the U.S. with a production of 1,200 tons
  of beans. In Spring 2016, Calyxt planted 942 acres (381 hectares) in
  six U.S. states – Illinois, Iowa, Michigan, Minnesota, South Dakota
  and Wisconsin. To date, the Company has harvested approximately 45,000
  bushels with the intent to use a substantial portion of the harvest
  for its first industrial scale crush.

Financial Results

Cellectis’ consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards, or IFRS, as
issued by the International Accounting Standards Board (“GAAP”).

Third Quarter 2016 Financial Results

Cash: As of September 30, 2016, Cellectis had €264.0 million in
total cash, cash equivalents and current financial assets compared to
€269.7 million as of June 30, 2016. This decrease of €5.7 million
notably reflects (i) the net cash flows used in operating activities of
€1.7 million, which includes €9.2 million of cash receipts in the third
quarter of 2016 in connection with the achievement of two milestones
under our collaboration agreement with Servier that occurred during the
second quarter of 2016, and (ii) capital expenditures of €2.2 million.
The change was also attributable to the unrealized negative translation
effect of exchange rate fluctuations on our U.S. dollar cash, cash
equivalents and current financial assets of €1.6 million.

Revenues and Other Income: During the quarters ended September
30, 2015 and 2016, we recorded €10.0 million and €11.3 million,
respectively, in revenues and other income. This is mainly due to (i)
the increase of €2.5 million in collaboration revenues, notably due to
the agreement to provide Servier with raw materials and batches of
UCART19 products, partly offset by (ii) the decrease of €0.3 million in
research tax credit and €0.8 million in subsidies.

Total Operating Expenses and Other Operating Income: Total
operating expenses and other operating income for the third quarter of
2016 were €22.9 million, compared to €23.4 million for the third quarter
of 2015. The non-cash stock-based compensation expenses included in
these amounts were €12.1 million and €9.5 million, respectively.

R&D Expenses: For the quarters ended 2015 and 2016, research
and development expenses decreased by €2.3 million from €16.2 million in
2015 to €13.8 million in 2016. Personnel expenses decreased by €1.1
million from €10.3 million in 2015 to €9.2 million in 2016, notably due
to a €2.5 million decrease in social charges on stock options and free
share grants, partly offset by a €0.4 million increase in wages and
salaries, and a €0.9 million increase in non-cash stock based
compensation expense. Purchases and external expenses and other expenses
decreased by €1.2 million from €5.8 million in 2015 to €4.6 million in
2016.

SG&A Expenses: During the quarters ended 2015 and 2016, we
recorded €6.9 million and €8.7 million, respectively, of selling,
general and administrative expenses. The increase of €1.8 million
primarily reflects (i) an increase of €0.9 million in personnel expenses
from €5.7 million to €6.7 million, attributable, among other things, to
an increase of €1.7 million of non-cash stock-based compensation
expense, partly offset by a decrease of €1.0 million of social charges
on stock options and free share grants, and (ii) an increase of €0.9
million in purchases and external expenses and other charges.

Financial Gain (Loss): The financial gain was €0.7 million for
the third quarter of 2015 compared with a financial loss of €1.0 million
for the third quarter of 2016. The change in financial result was
primarily attributable to the effect of exchange rate fluctuations on
our U.S. dollar cash and cash equivalent accounts.

Net Income (Loss) Attributable to Shareholders of Cellectis:
During the three months ended September 30, 2015 and 2016, we recorded a
net loss of €12.8 million (or €0.36 per share on both a basic and a
diluted basis) and net loss of €12.6 million (or €0.36 per share on both
a basic and a diluted basis), respectively. Adjusted loss attributable
to shareholders of Cellectis for the third quarter of 2016 was €0.5
million (€0.01 per share on both a basic and a diluted basis) compared
to adjusted loss attributable to shareholders of Cellectis of €3.3
million (€0.09 per share on both a basic and a diluted basis), for the
third quarter of 2015. Adjusted loss attributable to shareholders of
Cellectis for the third quarter of 2016 and 2015 excludes non-cash
stock-based compensation expense of €12.1 million and €9.5 million,
respectively. Please see « Note Regarding Use of Non-GAAP Financial
Measures » for reconciliation of GAAP net income (loss) attributable to
shareholders of Cellectis to Adjusted income (loss) attributable to
shareholders of Cellectis.

First Nine Months 2016 Financial Results

Cash: As of September 30, 2016, Cellectis had €264.0 million in
total cash, cash equivalents and current financial assets compared to €
314.2 million as of December 31, 2015. This decrease of €50.3 million
was primarily driven by (i) €30.8 million of cash used in operating
activities, notably in connection with the initiation of industrial Good
Manufacturing Practice (“GMP”) production of UCART123, increased
expenses in materials required of GMP production of UCART 123 and other
targets, a payment of €7.2 million of value added taxes related to
proceeds received in the fourth quarter of 2015 from Servier, partly
offset by cash receipts of €9.2 million in connection with the
achievement of two milestones under our collaboration agreement with
Servier that occurred during the second quarter of 2016 and (ii) €11.3
million of cash used in investment activities, primarily through
Calyxt’s land acquisition and greenhouse construction in an aggregate
amount of €8.9 million. The decrease was also partially attributable to
the negative unrealized translation effect of exchange rate fluctuations
on our U.S. dollar cash, cash equivalents and current financial assets
accounts of €7.4 million.

Cellectis expects that its cash, cash equivalents and Current financial
assets of €264.0 million as of September 30, 2016 will be sufficient to
fund its current operations through the end of 2018.

Revenues and Other Income: During the nine-month periods ended
September 30, 2015 and 2016, we recorded €27.2 million and €38.9
million, respectively, in revenues and other income. This is mainly due
to the increase of (i) €9.6 million in collaboration revenues mainly due
to both the agreement to provide Servier with raw materials and
additional batches of UCART19 products and the achievement of two
milestones (totaling €11.7 million) under our collaboration agreement
with Servier and (ii) €3.1 million in research tax credit, partly offset
by a decrease of €0.9 million in research subsidies, resulting from the
termination of research programs.

Total Operating Expenses and Other Operating Income: Total
operating expenses and other operating income for the nine-month period
ended September 30, 2016 were €80.9 million, compared to €56.3 million
for the nine months ended September 30, 2015. The non-cash stock-based
compensation expenses included in these amounts were €39.9 million and
€17.5 million, respectively.

R&D Expenses: For the nine months ended September 30, 2015
and 2016, research and development expenses increased by €15.8 million
from €36.4 million in 2015 to €52.2 million in 2016. Personnel expenses
increased by €8.4 million from €24.3 million in 2015 to €32.7 million in
2016, notably due to a €1.9 million increase in wages and salaries, and
a €12.6 million increase in non-cash stock based compensation expense,
partly offset by a €6.1 million decrease in social charges on stock
options and free share grants. Purchases and external expenses increased
by €7.6 million from €11.0 million in 2015 to €18.6 million in 2016, due
to increased expenses related to innovation and platform development,
including payments to third parties participating in product
development, purchases of biological raw materials and expenses
associated with the use of laboratories and other facilities.

SG&A Expenses: During the nine months ended September 30,
2015 and 2016, we recorded €19.1 million and €27.8 million,
respectively, of selling, general and administrative expenses. The
increase of €8.7 million primarily reflects (i) an increase of
€7.4 million in personnel expenses from €14.0 million to €21.4 million,
attributable, among other things, to a €0.5 million increase in wages
and salaries, and an increase of €9.9 million of non-cash stock-based
compensation expense, partly offset by a decrease of €3.0 million of
social charges on stock options and free share grants, and (ii) an
increase of €1.0 million in purchases and external expenses.

Financial Gain (Loss): The financial gain was €0.5 million for
the nine months ended September 30, 2015 compared with financial loss of
€6.3 million for the nine months ended September 30, 2016. The change in
financial result was primarily attributable to the effect of exchange
rate fluctuations on our U.S. dollar cash and cash equivalent accounts.

Net Income (Loss) Attributable to Shareholders of Cellectis:
During the nine months ended September 30, 2015 and 2016, we recorded a
net loss of €28.8 million (or € 0.85 per share on both a basic and a
diluted basis) and a net loss of €48.3 million (or €1.37 per share on
both a basic and diluted basis), respectively. Adjusted loss
attributable to shareholders of Cellectis for the nine months ended
September 30, 2016 was €8.4 million (€0.24 per share on both a basic and
a diluted basis) compared to adjusted loss attributable to shareholders
of Cellectis of € 11.3 million (€0.33 per share on both a basic and a
diluted basis), for the nine months ended September 30, 2015. Adjusted
loss attributable to shareholders of Cellectis for the nine months ended
September 30, 2016 and 2015 excludes a non-cash stock-based compensation
expense of €39.9 million and €17.5 million, respectively. Please see
« Note Regarding Use of Non-GAAP Financial Measures » for a reconciliation
of GAAP net income (loss) attributable to shareholders of Cellectis to
Adjusted income (loss) attributable to shareholders of Cellectis.

___________________

(1) Cellectis reclassified certain expenses related to the year ended
December 31, 2015 from SG&A expenses to R&D expenses in the fourth
quarter of 2015. This reclassification is effective starting in 2015,
and is due to the increased level of efforts towards our R&D activities
in order to develop product candidates and work toward clinical phases.
Starting in 2015, we classify personnel and other costs related to
information technology, human resources, business development, legal,
intellectual property and general management in Research and development
expense based on the time that employees spent contributing to research
and development activities versus general and administrative activities.
We approved the reclassification in Q4 2015 and assess the performance
of the consolidated company based on this new classification.

___________________

(1) Cellectis reclassified certain expenses related to the year ended
December 31, 2015 from SG&A expenses to R&D expenses in the fourth
quarter of 2015. This reclassification is effective starting in 2015,
and is due to the increased level of efforts towards our R&D activities
in order to develop product candidates and work toward clinical phases.
Starting in 2015, we classify personnel and other costs related to
information technology, human resources, business development, legal,
intellectual property and general management in Research and development
expense based on the time that employees spent contributing to research
and development activities versus general and administrative activities.
We approved the reclassification in Q4 2015 and assess the performance
of the consolidated company based on this new classification.

Note Regarding Use of Non-GAAP Financial Measures

Cellectis S.A. presents Adjusted Income (Loss) attributable to
shareholders of Cellectis in this press release. Adjusted Income (Loss)
attributable to shareholders of Cellectis is not a measure calculated in
accordance with IFRS. We have included in this press release a
reconciliation of this figure to Net Income (Loss) attributable to
shareholders of Cellectis, the most directly comparable financial
measure calculated in accordance with IFRS. Because Adjusted Income
(Loss) attributable to shareholders of Cellectis excludes Non-cash
stock-based compensation expense—a non-cash expense, we believe that
this financial measure, when considered together with our IFRS financial
statements, can enhance an overall understanding of Cellectis’ financial
performance. Moreover, our management views the Company’s operations,
and manages its business, based, in part, on this financial measure. In
particular, we believe that the elimination of Non-cash stock-based
expenses from Net Income (Loss) attributable to shareholders of
Cellectis can provide a useful measure for period-to-period comparisons
of our core businesses. Our use of Adjusted Income (Loss) attributable
to shareholders of Cellectis has limitations as an analytical tool, and
you should not consider it in isolation or as a substitute for analysis
of our financial results as reported under IFRS. Some of these
limitations are: (a) other companies, including companies in our
industry which use similar stock-based compensation, may address the
impact of Non-cash stock-based compensation expense differently; and (b)
other companies may report Adjusted Income (Loss) attributable to
shareholders or similarly titled measures but calculate them
differently, which reduces their usefulness as a comparative measure.
Because of these and other limitations, you should consider Adjusted
Income (Loss) attributable to shareholders of Cellectis alongside our
IFRS financial results, including Net Income (Loss) attributable to
shareholders of Cellectis.

As a foreign private issuer, we are not required under the Exchange Act
to file periodic reports and financial statements with the SEC as
frequently or as promptly as United States companies whose securities
are registered under the Exchange Act. Notwithstanding the foregoing, we
currently provide quarterly interim consolidated financial data to the
SEC, and commencing with our first quarter interim report for the 2017
fiscal year, we intend to file our periodic reports within the deadlines
applicable to domestic reporting companies.

About Cellectis

Cellectis is a biopharmaceutical company focused on developing
immunotherapies based on gene edited CAR T-cells (UCART). The company’s
mission is to develop a new generation of cancer therapies based on
engineered T-cells. Cellectis capitalizes on its 16 years of expertise
in genome engineering – based on its flagship TALEN^® products
and meganucleases and pioneering electroporation PulseAgile technology –
to create a new generation of immunotherapies. CAR technologies are
designed to target surface antigens expressed on cells. Using its
life-science-focused, pioneering genome-engineering technologies,
Cellectis’ goal is to create innovative products in multiple fields and
with various target markets. Cellectis is listed on the Nasdaq market
(ticker: CLLS) and on the NYSE Alternext market (ticker: ALCLS). To find
out more about us, visit our website: www.cellectis.com

Talking about gene editing? We do it.
TALEN^® is a
registered trademark owned by the Cellectis Group.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain “forward – looking statements”
within the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements may be identified by words such as
“anticipate,” “believe,” “can,” “could,” “estimate,” “expect,” “intend,”
“is designed to,” “may,” “might,” “plan,” “potential,” “predict,”
“objective,” “should,” or the negative of these and similar expressions
and include, but are not limited to, statements regarding the outlook
for Cellectis’ future business and financial performance.
Forward-looking statements are based on management’s current
expectations and assumptions, which are subject to inherent
uncertainties, risks and changes in circumstances, many of which are
beyond Cellectis’ control. Actual outcomes and results may differ
materially due to global political, economic, business, competitive,
market, regulatory and other factors and risks. Cellectis expressly
disclaims any obligation to update or revise any of these
forward-looking statements, whether because of future events, new
information, a change in its views or expectations, or otherwise.

¹ Cash position amounted €264 million and was converted to
Dollars using Euro-US Dollar exchange rate as of September 30, 2016:
1.1161
² Converted from Euro to Dollars using Euro-US
Dollar average exchange rate for the 3^rd quarter of 2016:
1.1166
³ See the section related to the reconciliation
of Gaap to non-Gaap net income. GAAP Net Loss attributable to
shareholders amounted to $15 million (€13 million) in the 3^rd
quarter of 2016

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