Nurix Therapeutics(US:NRIX)2024-10-11 20:05Financing and Revenue - The company has received $435.0 million in non-dilutive financing from collaborators to date and is eligible for up to $7.1 billion in potential future fees and milestone payments[86]. - The company recognized collaboration revenue from the Gilead Agreement of $2.4 million and $11.9 million during the three and nine months ended August 31, 2024, respectively[89]. - The Gilead Agreement triggered a $15.0 million payment due to the extension of the research term for certain drug targets[87]. - As of August 31, 2024, there was $13.1 million of deferred revenue related to payments received under the Gilead Agreement[89]. - The company has entered into a strategic collaboration with Sanofi, which includes a $22.0 million payment for expanding the number of targets from three to five[90]. - The Gilead Agreement allows for potential royalties on future product sales, with tiered royalties on annual net sales from any commercial products directed to the optioned collaboration targets[87]. - Sanofi Agreement resulted in an upfront payment of $55.0 million, with an additional $22.0 million paid in January 2021 for target expansion, and $13.0 million received for research milestones by August 31, 2024, with potential total payments of up to $2.0 billion[92]. - Collaboration revenue from the Sanofi Agreement was $5.9 million and $16.2 million for the three and nine months ended August 31, 2024, compared to $6.8 million and $17.1 million for the same periods in 2023[92]. - Pfizer Agreement included an upfront payment of $60.0 million and a $5.0 million milestone payment, with potential contingent payments of up to $3.4 billion based on various milestones[93]. - Collaboration revenue from the Pfizer Agreement was $4.2 million and $13.1 million for the three and nine months ended August 31, 2024, with deferred revenue of $50.2 million as of August 31, 2024[93]. - The company has raised a total of $929.7 million from equity offerings and $435.0 million from collaborations, with no revenue generated from product sales[115]. Clinical Development - The FDA granted Fast Track designation for NX-5948 for the treatment of adult patients with relapsed or refractory chronic lymphocytic leukemia (CLL) or small lymphocytic lymphoma (SLL) after at least two lines of therapy[83]. - The company is currently treating patients in Phase 1a/1b studies for NX-5948 and NX-2127, both targeting relapsed or refractory B-cell malignancies[83]. - NX-1607, an orally bioavailable inhibitor of CBL-B, is currently in a Phase 1a/1b study for various oncology indications and has received an Innovative Passport from the UK Medicines and Healthcare products Regulatory Agency[84]. - Research and development expenses are anticipated to increase significantly as the company advances drug candidates through clinical trials and seeks regulatory approvals[99]. - The increase in research and development expenses was driven by higher clinical, contract manufacturing, and consulting costs as the company accelerated enrollment in clinical trials[110]. Financial Performance - Net losses for the nine months ended August 31, 2024, were $135.0 million, compared to $102.0 million for the same period in 2023, with an accumulated deficit of $680.2 million[95]. - Cash, cash equivalents, and marketable securities totaled $457.5 million as of August 31, 2024, expected to fund operations for at least the next 12 months[95]. - Total revenue for the nine months ended August 31, 2024, was $41.3 million, down $20.6 million (33.3%) from $61.8 million in the same period of 2023[107]. - Collaboration revenue for the three months ended August 31, 2024, was $12.6 million, a decrease of $5.9 million (46.5%) compared to $18.5 million for the same period in 2023[108]. - Net loss for the three months ended August 31, 2024, was $49.0 million, an increase of $12.0 million (32.4%) compared to a net loss of $37.0 million for the same period in 2023[107]. - Total operating expenses for the nine months ended August 31, 2024, were $189.6 million, an increase of $18.1 million (10.6%) from $171.6 million in the same period of 2023[107]. - General and administrative expenses are expected to rise as the company enhances its infrastructure and complies with public company regulations[101]. - General and administrative expenses rose by $1.1 million (10.4%) to $11.7 million for the three months ended August 31, 2024, compared to $10.6 million for the same period in 2023[111]. - License revenue was zero for the three and nine months ended August 31, 2024, compared to $20.0 million for the same periods in 2023[109]. - Interest and other income, net, increased by $2.7 million (89.4%) to $5.7 million for the three months ended August 31, 2024, compared to $3.0 million for the same period in 2023[107]. Cash Flow and Funding - The company reported a net cash used in operating activities of $123.8 million for the nine months ended August 31, 2024, with a net loss of $135.0 million[120]. - Cash provided by financing activities was $285.1 million for the nine months ended August 31, 2024, primarily from the 2024 Public Offering and ATM Financings[122]. - The company expects its existing cash and marketable securities to meet operational needs for at least the next 12 months, but will require substantial additional funding for long-term plans[117]. - In April 2024, the company completed a public offering, issuing 11,916,667 shares at a public offering price of $15.00 per share, resulting in net proceeds of approximately $188.7 million[115]. - The company issued 3,711,770 shares at $21.50 per share in October 2024, generating total net proceeds of $78.4 million[115]. - As of August 31, 2024, the company had $107.1 million of common stock remaining available for sale under the Amended Equity Distribution Agreement[115]. - The company had total operating lease commitments of approximately $37.6 million as of August 31, 2024[117]. - The company has 6,097,560 pre-funded warrants remaining available for exercise from the 2022 Pre-Funded Warrants[115]. Market and Economic Conditions - The company is closely monitoring global business and macroeconomic conditions that may impact its operations and clinical trials[96].