BiondVax Provides Second Quarter 2017 Financial Results and Update

NESS ZIONA, Israel, August 31, 2017 -- BiondVax Pharmaceuticals Ltd. (Nasdaq: BVXV, TASE: BVXV), a clinical stage biopharmaceutical company focused on developing and commercializing M-001, a universal flu vaccine candidate, today announced its financial results for the quarter ended June 30, 2017 and provided a business update.Dr. Ron Babecoff, BiondVax’s CEO, commented, “This quarter’s significant achievements including the €20 million EIB funding and positive Phase 2b clinical trial results enable us continue towards launching our Phase 3 program and constructing our mid-size manufacturing facility towards commercialization.”Second Quarter 2017 Financial SummaryResults are in New Israel Shekels (NIS) and convenience translation to $US is provided using the exchange rate of 3.496 (NIS/$US) as at June 30, 2017.

• Second quarter operating expenses were NIS 2.59m ($742,000) compared with NIS 2.47m for the second quarter of 2016;
• Second quarter R&D expenses amounted to NIS 2.02m ($579,000) compared with NIS 1.48m for the second quarter of 2016;

As of June 30, 2017, BiondVax had cash and cash equivalents, short-term investments and marketable securities of NIS 36.6m ($10.5m) as compared to NIS 34.8m as of March 31, 2017. In the first half of 2017, the Company issued to investors approximately 6.7 million ordinary shares which is equivalent to 167 thousand NASDAQ listed ADSs, raising approximately $1.23 million. Recent Corporate Update

• BiondVax reported statistically significant positive results from the European Phase 2b clinical trial of M-001. Both endpoints, safety and influenza-specific cellular immune responses were achieved. Details: http://www.biondvax.com/2017/07/biondvax-reports-positive-phase-2b-clinical-trial-results-for-its-universal-flu-vaccine/.
• BiondVax signed a significant €20 million (approximately $US 22 million) non-dilutive funding agreement with the European Investment Bank (EIB). Details: http://www.biondvax.com/2017/06/european-investment-bank-eib-supports-late-stage-development-and-production-of-biondvaxs-universal-flu-vaccine-candidate-under-horizon-2020-initiative/.
• Planning for construction of a mid-sized facility, planned to have capacity to annually produce tens of millions of doses of M-001 either in single-dose syringe or in bulk, is ongoing. A lease agreement was recently signed. Details: http://www.biondvax.com/2017/07/biondvax-signs-lease-agreement-for-mid-size-commercial-facility-to-manufacture-universal-flu-vaccine/.
• The Israel Innovation Authority (IIA), formerly known as the Office of the Chief Scientist, agreed to fund up to 40% of a NIS 2.7 million (approximately US$ 750,000) budget towards ongoing development of M-001. Details: http://www.biondvax.com/2017/08/biondvax-receives-additional-grant-funding/.

** Tables to Follow **About BiondVax BiondVax is a biopharmaceutical company developing a universal flu vaccine. The vaccine is designed to provide multi-season protection against most seasonal and pandemic human influenza virus strains. BiondVax’s proprietary technology utilizes a unique combination of conserved and common peptides from influenza virus proteins, activating both arms of the immune system for a cross-protecting and long-lasting effect. BiondVax is traded on NASDAQ: BVXV and TASE: BVXV. For more information, please visit www.biondvax.com.Contact DetailsJoshua PhillipsonBusiness Development+972 8 930 2529j.phillipson@biondvax.comForward Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Litigation Reform Act of 1995. Words such as “expect,” “believe,” “intend,” “plan,” “continue,” “may,” “will,” “anticipate,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve certain risks and uncertainties reflect the management’s current views with respect to certain current and future events and are subject to various risks, uncertainties and assumptions that could cause the results to differ materially from those expected by the management of BiondVax Pharmaceuticals Ltd. risks and uncertainties include, but are not limited to, the risk that drug development involves a lengthy and expensive process with uncertain outcome, the results of the contemplated  Phase 2 & 3 trials, delays or obstacles in launching and/or successfully completing our clinical trials, the impact of the global economic environment on the Company customer target base, the adequacy of available cash resource and the ability to raise capital when needed. More detailed information about the risks and uncertainties affecting the Company is contained under the heading “Risk Factors” in our Annual Report on Form 20-F for the year ended December 31, 2016 filed with the U.S. Securities and Exchange Commission, or SEC, which is available on the SEC’s website, www.sec.gov, and in the Company’s periodic filings with the SEC and the Tel-Aviv Stock Exchange.  

BALANCE SHEETS
In thousands, except per share data
								Conveniencetranslation
		December 31,		June 30,				June 30,
		2016		2016		2017		2017
		Audited		Unaudited				Unaudited
		N I S						U.S. dollars
CURRENT ASSETS:
Cash and cash equivalents		15,705		15,084		31,334			8,963
Marketable securities		2,017		2,017		4,067			1,163
Short-term deposits		7,602		11,503		1,200			343
Other receivables		815		3,188		2,812			804
		26,139		31,792		39,413			11,273
LONG‑TERM ASSETS:
Marketable securities		2,050		2,049		-			-
Property, plant and equipment		1,443		1,746		1,233			353
Other long term assets		478		490		505			144
		3,971		4,285		1,738			497
		30,110		36,077		41,151			11,770
CURRENT LIABILITIES:
Trade payables		686		457		1,188			340
Other payables		689		697		664			190
		1,375		1,154		1,852			530
LONG‑TERM LIABILITIES:
Options		3,043		4,923		18,231			5,215
Severance pay liability, net		76		72		79			22
		3,119		4,995		18,310			5,237
SHAREHOLDERS' EQUITY (DEFICIT):
Ordinary shares of NIS 0.0000001 par value:
Authorized: 391,000,000 shares as ofJune 30, 2017, 2016 (unaudited) andDecember 31, 2016; Issued andOutstanding: 179,595,199, 135,097,367and 135,097,367 shares respectively		*) -		*) -		*) -			*) -
Share premium		113,041		111,458		132,824			37,993
Options		1,435		2,536		533			152
Other comprehensive income		6		7		2			*) -
Accumulated deficit		(88,866)		(84,073)		(112,370)			(32,142)
		25,616		29,928		20,989			6,003
		30,110		36,077		41,151			11,770
*) Represents an amount lower than NIS 1.

STATEMENTS OF COMPREHENSIVE INCOME
In thousands, except per share data
																		Convenience
																		translation
																		(Note 2)
		Year ended				Three months ended						Six months ended						Six months ended
		December 31,				June 30						June 30						June 30
		2016				2016			2017			2016			2017			2017
						Unaudited												Unaudited
		N I S																U.S. dollars
		(In thousands, except per share data)
Operating expenses:
Research and development, net of participations		7,794				1,478			2,022				3,541			3,896		1,114
Marketing, general and administrative		4,106				999			569				1,770			1,663		476
Total operating expenses		11,900				2,477			2,591				5,311			5,559		1,590
Operating loss		(11,900)				(2,477)			(2,591)				(5,311)			(5,559)		(1,590)
Financial income		75				252			5				49			13		4
Financial expense		(303)				(6)			(930)				(200)			(1,997)		(571)
Financial income (expenses) due to revaluation of options		2,944				(383)			(8,156)				1,071			(15,961)		(4,566)
Total finance (expense) income, net		2,716				(138)			(9,081)				920			(17,945)		(5,133)
Net loss		(9,184)				(2,615)			(11,672)				(4,39(1			(23,504)		(6,723)
Other comprehensive income (loss):
Items to be reclassified to profit or loss in subsequent periods:
Gain (loss) from available-for-sale financial assets		(6)				(7)			(4)				(5)			(4)		(1)
Total comprehensive loss		(9,190)				(2,622)			(11,676)				(4,396)			(23,508)		(6,724)
Basic and diluted net loss per share (NIS)		(0.07)				(0.02)			(0.07)				(0.03)			(0.14)		(0.04)
Weighted average number of sharesoutstanding used to compute basicand diluted loss per share		135,097,367				135,097,367			175,809,413				135,097,367			169,182,101		169,182,101

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