Ophthotech Reports First Quarter 2017 Financial and Operating Results

NEW YORK–(BUSINESS WIRE)– Ophthotech Corporation (Nasdaq:OPHT) today announced financial and
operating results for the first quarter ended March 31, 2017 and
provided a general business update.

In February 2017, Ophthotech announced that it had initiated a plan to
review its strategic alternatives in order to maximize shareholder
value. The principal focus of the plan, based on the Company’s deep
expertise and experience in ophthalmology, is to actively explore
opportunities to obtain rights to additional products, product
candidates and technologies to treat ophthalmic diseases, particularly
those of the back of the eye. Ophthotech also announced that it engaged
Leerink Partners LLC as its financial advisor to assist management and
the Board in evaluating the Company’s strategic alternatives. This
review does not exclude any strategic option. The Company’s evaluation
of its strategic options by its management and Board of Directors is
ongoing.

Subsequent to the end of the first quarter 2017, on April 24, 2017, the
Company announced that David R. Guyer, M.D., a co-founder, Chief
Executive Officer and Chairman of the Board of Ophthotech, will
transition to the newly created role of Executive Chairman effective
July 1, 2017. Concurrent with this transition, Ophthotech’s Board of
Directors appointed Glenn P. Sblendorio, the Company’s President and
then Chief Financial Officer, as Chief Executive Officer of the Company,
also effective July 1, 2017. Mr. Sblendorio will retain his role as
President and has been nominated as a Class I director for election at
the Company’s upcoming annual meeting of stockholders. The Company also
announced the promotion of David F. Carroll to Chief Financial Officer
and Treasurer, effective immediately. Mr. Carroll was previously Senior
Vice President, Finance, of the Company.

First Quarter 2017 Financial Highlights

• Cash Position: As of March 31, 2017, the Company had $227.6
  million in cash, cash equivalents, and marketable securities. Of this
  balance, approximately $45 million to $55 million is committed to
  implementing a reduction in personnel, the winding-down of the Phase 3
  Fovista^® in combination with Lucentis^® clinical
  trials, the termination of the Fovista^® Expansion Studies,
  cancellation fees related to manufacturing commitments, and obtaining
  initial top-line data in the second half of 2017 for the Phase 3
  Fovista^® in combination with Eylea^®
  (aflibercept) or Avastin^® (bevacizumab) clinical trial. The
  Company expects that its 2017 year end cash balance will be between
  $140 million and $160 million, excluding any potential business
  development activities or any changes to the Company’s current
  clinical development programs.

• Revenues: Collaboration revenue was $1.7 million for the
  quarter ended March 31, 2017, compared to $15.7 million for the same
  period in 2016. Collaboration revenue was in connection with the
  Company’s Licensing and Commercialization Agreement with Novartis
  Pharma AG. Collaboration revenue decreased due to a decrease in
  shipments of Fovista^® API to Novartis.
• R&D Expenses: Research and development expenses were $32
  million for the quarter ended March 31, 2017, compared to $37.8
  million for the same period in 2016. Research and development expenses
  for the first quarter of 2017 include approximately $4.8 million in
  costs related to the Company’s previously announced reduction in
  personnel. Research and development expenses decreased primarily due
  to a decrease in spending on the Company’s Fovista^® Phase 3
  clinical program, including decreased manufacturing expenses.
• G&A Expenses: General and administrative expenses were
  $13.2 million for the quarter ended March 31, 2017, compared to $14.7
  million for the same period in 2016. General and administration
  expenses for the first quarter of 2017 include approximately $3.9
  million in costs related to the Company’s previously announced
  reduction in personnel and its termination of facilities leases.
  General and administrative expenses decreased primarily due to a
  decrease in costs to support the Company’s operations and
  infrastructure.
• Net Loss: The Company reported a net loss for the quarter ended
  March 31, 2017 of $43.1 million, or ($1.20) per diluted share,
  compared to a net loss of $36.3 million, or ($1.03) per diluted share,
  for the same period in 2016.

Conference Call/Web Cast Information

Ophthotech will host a conference call/audio web cast to discuss the
Company’s financial and operating results and provide a general business
update. The call is scheduled for May 3, 2017 at 8:00 a.m. Eastern Time.
To participate in this conference call, dial 888-715-1389 (USA) or
913-312-1522 (International), passcode 6067528. 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 6067528.

About Ophthotech Corporation

Ophthotech is a biopharmaceutical company specializing in the
development of novel therapeutics for diseases of the eye. 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 Ophthotech’s
projected use of cash and cash balances, the timing, progress and
results of the Fovista^® Phase 3 clinical trial
in combination with Avastin or Eylea and Ophthotech’s ongoing Zimura®
clinical development programs and implementation of Ophthotech’s new
strategic plan. 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 wind-down of various clinical trials, the
implementation of a reduction in personnel, the negotiation and
consummation of in-license and/or acquisition transactions, and the
availability of data from clinical trials and other factors discussed in
the “Risk Factors” section contained in the quarterly and annual reports
that Ophthotech files with the Securities and Exchange Commission. 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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