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Exploring Spark Therapeutics’ Cash Flows

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Cash flows

Spark Therapeutics (ONCE) spent $154.5 million on operating activities in 2017 compared to $80.4 million in 2016. This spending consisted of a net loss of $253.5 million, a depreciation and amortization expense of $4.9 million, and a stock-based compensation expense of $41.4 million.

In 2017, Spark Therapeutics’ other receivables fell by $8.9 million driven by a $15 million payment it received from Pfizer. Spark’s accounts payable rose by $13 million due to an increase in accruals related to bonuses and an increase in its head count.

The company used $207.7 million in investing activities in 2017 compared to $285.5 million in 2016. This amount consisted of purchases of marketable securities worth $189.9 million, purchases of property and equipment worth $9.6 million, and $8.2 million in payments related to license agreements.

In 2017, Spark Therapeutics raised $400.2 million from financing activities compared to $131.3 million in 2016. This increase was mainly attributable to the follow-on public offering by the company in August 2017.

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Outstanding shares

Spark’s number of outstanding shares increased from 28.8 million in 2016 to 33.2 million in 2017. In 2015, this figure was 22.7 million. Until December 2017, Spark Therapeutics had raised net proceeds of $858.2 million from the sales of its equity securities. In August 2017, the company raised $379.9 million through a follow-on public offering of 5.3 million common shares at $76 per share.

In 2016, Spark Therapeutics raised $127.6 million by offering 3 million common shares in a follow-on public offering.

Stock performance

In the past three months, the share price of Spark Therapeutics has risen 51% from $50 on January 17, 2018, to $77 on April 16, 2018. In comparison, the share prices of its peers Pfizer (PFE), Achaogen (AKAO), and Regeneron (REGN) have fallen -0.19%, -5.5%, and -14%, respectively.

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