Ophthotech Reports Second Quarter 2017 Financial and Operating Results

NEW YORK–(BUSINESS WIRE)– Ophthotech Corporation (Nasdaq:OPHT) today announced financial and
operating results for the second quarter ended June 30, 2017 and
provided a business update on its strategic plan.

The Company also announced today that it is pursuing a strategy to
leverage its clinical experience and retina expertise to identify and
develop therapies to treat multiple orphan ophthalmic diseases for which
there are limited or no treatment options available. In parallel, the
Company is continuing its on-going age-related retinal programs and its
business development efforts to obtain rights to additional products,
product candidates and technologies to treat ophthalmic diseases,
particularly those of the back of the eye. Please refer to Ophthotech’s
press release issued earlier today and the call-in and webcast
information below for a discussion of the Company’s financial and
operating results and a business update.

“We believe that with our strategic plan we will be well positioned as a
company with multiple ongoing or planned clinical programs in both
orphan retinal diseases as well as in back of the eye indications,”
stated Glenn P. Sblendorio, Chief Executive Officer and President of
Ophthotech. “We are also continuing our business development efforts
with the goal of broadening and advancing our pipeline. We are committed
to developing treatments for patients with devastating ophthalmic
diseases and to maximizing value for our shareholders.”

Initial, top-line data from the Company’s Fovista^® OPH1004
trial, its remaining Phase 3 clinical trial, are expected in the third
quarter of 2017. The Company believes the failure of two previous Phase
3 Fovista clinical trials and the failure of a competitor’s Phase 2
clinical trial investigating the combination of a PDGF inhibitor and a
VEGF inhibitor may be indicative of a low likelihood of success for
OPH1004. The Company expects that its strategy for the Fovista^®
development program for the treatment of wet AMD will be primarily
determined by the data from OPH1004, and in the context of the negative
data from the Company’s previous Phase 3 Fovista clinical trials.

Second Quarter 2017 Financial Highlights

• Cash Position: As of June 30, 2017, the Company had $196.4
  million in cash, cash equivalents, and marketable securities. The
  Company expects a 2017 year end cash balance of between $145 million
  and $160 million, excluding any potential business development
  activities, and after accounting for the approximately $20 million to
  $35 million that remains 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, and obtaining initial, top-line data
  for OPH1004.
• Revenues: Collaboration revenue was $1.7 million for the
  quarter ended June 30, 2017, compared to $28.2 million for the same
  period in 2016. In June 2016, the Company earned $28.2 million from
  the achievement of the final enrollment based clinical milestone under
  the Company’s licensing and commercialization agreement with Novartis
  Pharma AG. For the six months ended June 30, 2017, collaboration
  revenue was $3.3 million, compared to $43.9 million for the same
  period in 2016. Collaboration revenue decreased in both the quarter
  and six months ended June 30, 2017 due to lower revenue from clinical
  drug supply shipments and due to the inclusion of the final
  enrollment-based clinical milestone under the Company’s agreement with
  Novartis Pharma AG in 2016.
• R&D Expenses: Research and development expenses were $15.7
  million for the quarter ended June 30, 2017, compared to $48.3 million
  for the same period in 2016. For the quarter ended June 30, 2017,
  research and development expenses include approximately $1.1 million
  in costs related to the Company’s previously announced reduction in
  personnel. For the six months ended June 30, 2017, research and
  development expenses were $47.6 million, compared to $86 million for
  the same period in 2016. For the six months ended June 30, 2017,
  research and development expenses include approximately $5.9 million
  in costs related to the Company’s previously announced reduction in
  personnel. Research and development expenses decreased in both the
  quarter and six months ended June 30, 2017 primarily due to a decrease
  in expenses related to the Company’s Fovista^® Phase 3
  clinical program, including manufacturing activities.

• G&A Expenses: General and administrative expenses were $8.6
  million for the quarter ended June 30, 2017, compared to $10.5 million
  for the same period in 2016. For the quarter ended June 30, 2017,
  general and administrative expenses include approximately $0.7 million
  in costs related to the Company’s previously announced reduction in
  personnel. For the six months ended June 30, 2017, general and
  administrative expenses were $21.7 million, compared to $25.2 million
  for the same period in 2016. For the six months ended June 30, 2017,
  general and administrative expenses include approximately $4.6 million
  in costs related to the Company’s previously announced reduction in
  personnel and its termination of facilities leases. General and
  administrative expenses decreased in both the quarter and six months
  ended June 30, 2017 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
  June 30, 2017 of $22.2 million, or ($0.62) per diluted share, compared
  to a net loss of $29.9 million, or ($0.85) per diluted share, for the
  same period in 2016. For the six months ended June 30, 2017, the
  Company reported a net loss of $65.3 million, or ($1.82) per diluted
  share, compared to a net loss of $66.2 million, or ($1.88) per diluted
  share, for the same period in 2016.

Conference Call/Web Cast Information

Ophthotech will host a conference call/webcast to discuss the Company’s
financial and operating results and provide a business update. The call
is scheduled for July 26, 2017 at 8:00 a.m. Eastern Time. To participate
in this conference call, dial 888-280-4443 (USA) or 719-457-2603
(International), passcode 8248330. 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 8248330. A supplemental slide presentation is available in the
“Investor” section of the Ophthotech website prior to the start of the
call / webcast.

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 the implementation
of its strategic plan, Ophthotech’s projected use of cash and cash
balances, the timing, progress and results of clinical trials and other
development activities, the potential utility or
commercialization of any of Ophthotech’s product candidates and its
business development strategy, including any potential in-license or
acquisition opportunities. 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, expectations for
regulatory matters, need for additional financing and negotiation and
consummation of in-license and/or acquisition transactions 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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