Ophthotech Reports Second Quarter 2016 Financial and Operating Results

– Conference Call and Webcast Today, August 3rd,
at 8:00 a.m. ET –

NEW YORK–(BUSINESS WIRE)–Ophthotech Corporation (Nasdaq:OPHT) today announced financial results
for the second quarter ended June 30, 2016 and provided an update on the
Company’s business and product development programs.

“During the second quarter, we reached a significant milestone in our
Fovista® program as we completed patient recruitment in our
third Phase 3 trial of Fovista® in combination with Eylea®
or Avastin®,” 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.”

Programs Highlights

In June 2016, Ophthotech completed recruitment in its Phase 3 trial
investigating Fovista® (pegpleranib) in combination with
either Eylea® (aflibercept) or Avastin®
(bevacizumab) which triggered achievement of the final $30 million
milestone of the $130 million aggregate enrollment-based milestone
payments under the ex-US licensing and commercialization agreement with
Novartis Pharma AG. Additionally, Ophthotech is eligible to receive up
to an aggregate of $300 million upon achievement of specified regulatory
milestones, including marketing approval and reimbursement approval in
certain ex-US territories, and ex-US sales milestones of up to $400
million. Ophthotech is also entitled to receive royalties on ex-US
Fovista® sales. Ophthotech expects initial, topline data from
both pivotal Phase 3 trials of Fovista® in combination with
Lucentis® (ranibizumab) in wet age-related macular
degeneration (AMD) in the fourth quarter of this year. In addition, the
Fovista® Expansion Studies designed to further evaluate the
potential of Fovista® in addressing a variety of unmet needs
in wet AMD are progressing as planned.

Ophthotech continues to enroll patients in its Phase 2/3 trial of Zimura®
in patients with geographic atrophy, an advanced form of dry AMD. In
addition, its Phase 2 trial evaluating the potential role of Zimura®
when administered in combination with anti-VEGF drugs for the treatment
of wet AMD has been activated.

Board and Management Highlights

Ophthotech’s Board of Directors elected Ian F. Smith to its Board of
Directors, effective August 2, 2016. Mr. Smith currently
serves as Executive Vice President and Chief Financial Officer of Vertex
Pharmaceuticals, a global biotechnology company that discovers, develops
and commercializes innovative medicines for serious diseases. Mr. Smith
has experience in various important functions including financial,
business development and investor relations strategy. Mr. Smith was also
elected Chair of Ophthotech’s Audit Committee.

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 after
serving as Dean of the Keck School of Medicine of the University of
Southern California, a position that he held from 2007 to 2016. Dr.
Puliafito is on leave from his position as Professor of Ophthalmology
and Health Management at the USC Roski Eye Institute.

Financial Highlights

  • Cash Position: As of June 30, 2016, the Company had $325.7
    million in cash, cash equivalents, and available for sale securities.
  • Revenues: Collaboration revenue was $28.2 million for the
    quarter ended June 30, 2016, compared to $1.6 million for the same
    period in 2015. Collaboration revenue for the six months ended June
    30, 2016 was $43.9 million, compared to $43.3 million for the same
    period in 2015. Collaboration revenue recognized in the quarter ended
    June 30, 2016 related primarily to the $30.0 million enrollment-based
    milestone the Company achieved in June 2016. The balance of this
    milestone was recorded as deferred revenue. Collaboration revenue
    recognized in the six-month period ended June 30, 2016 also included
    revenue from drug supply shipments the Company completed under the
    Novartis agreement. Collaboration revenue recognized during the
    six-month period ended June 30, 2015 was primarily related to the
    $50.0 million enrollment-based milestone the Company achieved in March
    2015.
  • R&D Expenses: Research and development expenses were $48.3
    million for the quarter ended June 30, 2016, compared to $32.1 million
    for the same period in 2015. Research and development expenses were
    $86.0 million for the six months ended June 30, 2016, compared to
    $56.6 million for the same period in 2015. The increase in research
    and development expense in both the quarter and six-month period ended
    June 30, 2016 was primarily due to increased costs related to Fovista®
    manufacturing activities, the Company’s ongoing 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
    $10.5 million for the quarter ended June 30, 2016, compared to $12.0
    million for the same period in 2015. The decrease in general and
    administrative expenses in the quarter ended June 30, 2016 related
    primarily to a decrease in professional services and consulting fees
    compared to the prior year period. General and administrative expenses
    were $25.2 million for the six-month period ended June 30, 2016,
    compared to $21.5 million for the same period in 2015. The increase
    related primarily to an increase in costs to support the Company’s
    expanded operations and public company infrastructure, including
    additional management, corporate staffing and increased share-based
    compensation expenses.
  • Net Loss: The Company reported a net loss for the quarter ended
    June 30, 2016 of $29.9 million, or ($0.85) per diluted share, compared
    to a net loss of $37.1 million, or ($1.08) per diluted share, for the
    same period in 2015. The Company reported a net loss for the six-month
    period ended June 30, 2016 of $66.2 million, or ($1.88) per diluted
    share, compared to a net loss of $30.5 million, or ($0.89) 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 August 3,
2016 at 8:00 a.m. Eastern Time. To participate in this conference call,
dial 888-438-5519 (USA) or 719-457-2627 (International), passcode
2450854. 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 2450854. 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

               
Ophthotech Corporation
Selected Financial Data (unaudited)
(in thousands, except per share data)
 
Three Months Ended June 30,   Six Months Ended June 30,
2016 2015   2016 2015
 
Statements of Operations Data:
Collaboration revenue $ 28,198 $ 1,597 $ 43,919 $ 43,275
Operating expenses:
Research and development 48,262 32,059 86,032 56,616
General and administrative   10,489     11,959     25,185     21,543  
Total operating expenses   58,751     44,018     111,217     78,159  
Loss from operations (30,553 ) (42,421 ) (67,298 ) (34,884 )
Interest income 446 139 892 264
Other income (loss)   (98 )   79     (68 )   27  
Loss before income tax provision (30,205 ) (42,203 ) (66,474 ) (34,593 )
Income tax benefit   (260 )   (5,072 )   (228 )   (4,098 )
Net loss $ (29,945 ) $ (37,131 ) $ (66,246 ) $ (30,495 )
Net loss per common share:
Basic and diluted $ (0.85 ) $ (1.08 ) $ (1.88 ) $ (0.89 )
Weighted average common shares outstanding:
Basic and diluted   35,392     34,353     35,324     34,254  
 
June 30, 2016 December 31, 2015
(in thousands)
Balance Sheet Data:
Cash, cash equivalents, and marketable securities $ 325,723 $ 391,890
Due from Novartis Pharma AG $ 30,197 $ 4,389
Total assets $ 385,854 $ 428,851
Deferred revenue $ 213,429 $ 213,066
Royalty purchase liability $ 125,000 $ 125,000
Total liabilities $ 371,349 $ 368,904
Additional paid-in capital $ 486,372 $ 465,924
Accumulated deficit $ (471,785 ) $ (405,539 )
Total stockholders’ equity $ 14,505 $ 59,947
 

Contacts

Investors
Ophthotech Corporation
Kathy Galante,
212-845-8231
Vice President, Investor Relations and Corporate
Communications
kathy.galante@ophthotech.com
or
Media
SmithSolve
LLC on behalf of Ophthotech Corporation
Jennifer Devine,
973-442-1555 ext. 102
jennifer.devine@smithsolve.com