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Roivant Sciences(ROIV) - 2025 Q1 - Quarterly Report
ROIVRoivant Sciences(ROIV)2024-08-09 20:32
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Revenue and Income - Product revenue for the three months ended June 30, 2024, was 18,367,000,anincreasefrom18,367,000, an increase from 16,659,000 in the same period of 2023, representing a growth of 10.2%[20] - License, milestone, and other revenue surged to 36,765,000forthethreemonthsendedJune30,2024,comparedto36,765,000 for the three months ended June 30, 2024, compared to 4,965,000 in the prior year, marking a significant increase of 639.5%[20] - Total revenue for the quarter reached 55,132,000,upfrom55,132,000, up from 21,624,000 in the same quarter of 2023, reflecting a growth of 155.5%[20] - The net income attributable to Roivant Sciences Ltd. for the quarter was 95,297,000,aturnaroundfromanetlossof95,297,000, a turnaround from a net loss of 291,816,000 in the same quarter of the previous year[20] - Basic net income per common share was 0.13forthethreemonthsendedJune30,2024,comparedtoalossof0.13 for the three months ended June 30, 2024, compared to a loss of 0.38 per share in the same period of 2023[20] - Comprehensive income for the quarter was 43,658,000,comparedtoacomprehensivelossof43,658,000, compared to a comprehensive loss of 331,993,000 in the same quarter of 2023[21] - For the three months ended June 30, 2024, the company reported a net income of approximately 57.5million,comparedtoanetlossofapproximately57.5 million, compared to a net loss of approximately 327.8 million for the same period in 2023[29] Expenses - Operating expenses totaled 285,705,000forthethreemonthsendedJune30,2024,adecreasefrom285,705,000 for the three months ended June 30, 2024, a decrease from 298,037,000 in the same period of 2023, indicating a reduction of 4.1%[20] - Research and development expenses for the quarter were 133,208,000,upfrom133,208,000, up from 125,133,000 in the same period of 2023, reflecting an increase of 6.7%[20] - Selling, general and administrative expenses decreased by 7.7millionto7.7 million to 148.5 million for the three months ended June 30, 2024, compared to 156.2millionforthesameperiodin2023[152]−Theincreaseinresearchanddevelopmentexpenseswasprimarilydrivenbyprogram−specificcosts,share−basedcompensation,andpersonnel−relatedexpenses[149]CashandLiquidity−AsofJune30,2024,thecompanyhadcashandcashequivalentsofapproximately156.2 million for the same period in 2023[152] - The increase in research and development expenses was primarily driven by program-specific costs, share-based compensation, and personnel-related expenses[149] Cash and Liquidity - As of June 30, 2024, the company had cash and cash equivalents of approximately 5.7 billion, with retained earnings of approximately 671.5million[29]−Thecompanyincurrednetcashusedinoperatingactivitiesofapproximately671.5 million[29] - The company incurred net cash used in operating activities of approximately 192.8 million for the three months ended June 30, 2024, compared to 249.9millionforthesameperiodin2023[26]−Thecompany’scash,cashequivalents,andrestrictedcashattheendoftheperiodwereapproximately249.9 million for the same period in 2023[26] - The company’s cash, cash equivalents, and restricted cash at the end of the period were approximately 5.7 billion, down from 6.6billionatthebeginningoftheperiod[26]−Thecompanyexpectsitsexistingcashandcashequivalentstobesufficienttofunditscommittedoperatingexpensesandcapitalexpenditurerequirementsforatleastthenext12months[30]−AsofJune30,2024,thecompanyhadcash,cashequivalents,andrestrictedcashofapproximately6.6 billion at the beginning of the period[26] - The company expects its existing cash and cash equivalents to be sufficient to fund its committed operating expenses and capital expenditure requirements for at least the next 12 months[30] - As of June 30, 2024, the company had cash, cash equivalents, and restricted cash of approximately 5.7 billion, with no material effect on liquidity from a hypothetical 10% change in interest rates[185] Investments and Assets - The fair value of the company's investment in Arbutus was 120.0millionasofJune30,2024,reflectinganunrealizedgainof120.0 million as of June 30, 2024, reflecting an unrealized gain of 19.8 million compared to 100.2millionasofMarch31,2024[50]−Thefairvalueofthecompany′sinvestmentinDatavantwas100.2 million as of March 31, 2024[50] - The fair value of the company's investment in Datavant was 142.9 million as of June 30, 2024, with an unrealized loss of 4.6millionrecognizedduringthesameperiod[51]−Thecompany′sintangibleassetshadanetbookvalueof4.6 million recognized during the same period[51] - The company's intangible assets had a net book value of 136.0 million as of June 30, 2024, with amortization expense recorded at 2.4millionforthethreemonthsendedJune30,2024[56]−TotalassetsatfairvalueasofJune30,2024,were2.4 million for the three months ended June 30, 2024[56] - Total assets at fair value as of June 30, 2024, were 5,646,728,000, a decrease from 5,789,668,000asofMarch31,2024[105]ShareholderActivities−Thecompanyauthorizedasharerepurchaseprogramofupto5,789,668,000 as of March 31, 2024[105] Shareholder Activities - The company authorized a share repurchase program of up to 1.5 billion, with a significant repurchase of 71,251,083 shares from Sumitomo Pharma for approximately 648.4million[79]−ThecompanycompletedthesaleofitsentireequityinterestinTelavantHoldings,Inc.,receivingapproximately648.4 million[79] - The company completed the sale of its entire equity interest in Telavant Holdings, Inc., receiving approximately 5.2 billion in cash[29] - The company completed the sale of its equity interest in Telavant to Roche for approximately 7.1billionincash,receivingabout7.1 billion in cash, receiving about 5.2 billion as its pro rata portion upon closing[58] Future Outlook and Strategy - The company plans to in-license multiple potentially category-leading drugs per year, with ongoing updates on mid/late-stage in-licensing announcements[129] - The company anticipates requiring significant additional capital in the future to continue operations and pursue business opportunities, which may involve dilution of existing shareholders' ownership[173] - The company regularly evaluates new acquisition and in-licensing opportunities as part of its ongoing business strategy[175] Tax and Accounting - The effective tax rate for the three months ended June 30, 2024 was 18.0%, significantly higher than the (0.5)% rate for the same period in 2023[87] - The company has not adopted any material accounting pronouncements during the three months ended June 30, 2024[44] - The company is currently evaluating the impact of recently issued accounting pronouncements on its consolidated financial statements[45][46]