Human Resource and Organizational Updates
Added Key Talent – On May 3, 2016, the Company announced the appointment of Paul Firuta as Chief Commercial Officer. Mr. Firuta, who held similar positions at NPS Pharmaceuticals (NPSP) and ViroPharma, will oversee global commercial and portfolio planning and program management, as well as will work closely with the Company's cross-functional teams in building relationships with patient advocacy groups and key opinion leaders.
Entered Lease for New Amsterdam Facility – On March 1, 2016, the Company entered into a lease contract for a new 9,200 square meter facility in Amsterdam designed to meet the needs of its fully-integrated gene therapy operations and expanding product pipeline. The Company has commenced the refurbishment of the space and intends to initiate the consolidation of its current three Amsterdam sites into the new facility by the end of the year.
Proposed Corporate Governance Changes – On May 9, 2016, the Company announced the nomination of Jack Kaye to the Board of Directors. Mr. Kaye, a seasoned financial executive with over 40 years of diversified experience, will also chair the Company's Audit Committee. Additionally, the Company announced its intention to transition from the current two-tier Supervisory Board and Management Board structure to a single Board of Directors with executive and non-executive members. As part of the governance transition, Ferdinand Verdonck and Joseph Fezcko plan to retire from the Supervisory Board and Mr. Soland and Matthew Kapusta, Chief Financial Officer, will stand for election to the single Board as executive directors.
Corporate Finance and Other Updates
Lowered Cost and Expanded Flexibility of Venture Debt Agreement – On May 6, 2016, the Company executed a second amended and restated loan agreement with Hercules Technology Growth Capital, Inc. (Hercules). The loan agreement includes a total commitment from Hercules of up to $40 million, of which $20 million is currently outstanding. The Company has not drawn down any additional loan amounts. The interest rate will be reduced from 10.25% to 8.25% per annum with a backend fee of 4.85% and facility fee of 0.75% of the outstanding loan amounts. The interest-only payment period is initially set at 18 months from May 6, 2016, but can be extended to 36 months under certain conditions. The maturity date of the loan facility was also extended from June 30, 2017 to March 1, 2020.
Established Stock Purchase Plan for Chief Executive Officer – On April 18, 2016, Mr. Soland established a pre-arranged personal stock purchase plan to acquire up to 100,000 ordinary shares of the Company's stock. The plan is intended to comply with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The transactions under this purchasing plan will commence no earlier than June 13, 2016.
Financial Highlights
As of March 31, 2016, the Company held cash and cash equivalents of €184.6 million, compared with of €203.5 million, as of December 31, 2015, a decrease of €18.9 million. The decrease includes €16.0 million of cash used in operating, investing and financing activities during the three months ended March 31, 2016, in addition to a €2.9 million loss related to foreign currency effects on U.S. dollar-denominated deposits.
Licensing and collaboration revenues for the three months ended March 31, 2016 were €3.9 million, compared with €1.1 million for the comparable period in 2015. The change was primarily due to the amortization of upfront payments and target designation fees received from BMS in the second and third quarters of 2015, and the increase of research activities associated with S100A1 for heart failure, which are fully reimbursed by BMS in accordance with our collaboration agreement.
Research and development expenses were €15.1 million for the three months ended March 31, 2016, compared with €10.1 million for the comparable period in 2015. The increase is mainly due to the initiation of our Phase I/II clinical study of AMT-060 in hemophilia B, an increase in activities in support of our collaboration agreement with BMS, which closed in May 2015, and the continued progression of our various research programs, including our collaboration with 4D and preclinical product candidates for hemophilia A and Huntington's disease.
Selling, general and administrative expenses were €6.6 million for the three months ended March 31, 2016, compared with €4.2 million for the comparable period in 2015. The change primarily related to increases in the numbers of employees, contractors and consultants, as well as increases in professional fees and expenses associated with the Glybera global registry and Phase IV study, which are currently classified as selling, general and administrative expenses, but were previously capitalized in the same period in 2015, prior to the commencement of Glybera commercialization.