EyePoint Pharmaceuticals(EYPT)2024-11-07 21:05Revenue Performance - Product sales, net decreased by $0.2 million (19%) to $0.7 million for Q3 2024 compared to Q3 2023, driven by lower YUTIQ® sales to ANI[115] - License and collaboration agreement revenue decreased by $4.6 million (32%) to $9.6 million for Q3 2024 due to lower recognition of deferred revenue from YUTIQ® licensing to ANI[116] - Total revenues decreased by $4.7 million (31%) to $10.5 million for Q3 2024 compared to Q3 2023[114] - Product sales, net decreased by $11.1 million, or 82%, to $2.4 million for the nine months ended September 30, 2024, driven by the agreement granting YUTIQ® license and rights to ANI[124] - License and collaboration agreement revenue increased by $10.1 million, or 57%, to $27.9 million for the nine months ended September 30, 2024, due to higher recognition of deferred revenue[125] Expenses and Costs - Research and development expenses increased by $12.2 million (70%) to $29.5 million for Q3 2024[114] - Research and development expenses increased by $12.2 million, or 70%, to $29.5 million for the three months ended September 30, 2024, driven by higher clinical trial costs and personnel expenses[119] - Research and development expenses increased by $42.8 million, or 92%, to $89.6 million for the nine months ended September 30, 2024, driven by higher clinical trial costs and personnel expenses[128] - Cost of sales decreased by $0.5 million, or 39%, to $0.7 million for the three months ended September 30, 2024, primarily due to lower commercial product sales[118] - Sales and marketing expenses decreased by $0.5 million, or 95%, for the three months ended September 30, 2024, due to discontinued YUTIQ® promotion and exit from the commercial business[120] - General and administrative expenses increased by $2.4 million, or 23%, to $13.0 million for the three months ended September 30, 2024, primarily due to higher stock-based compensation and personnel costs[121] Net Loss and Financial Performance - Net loss increased by $16.7 million (133%) to $29.4 million for Q3 2024 compared to Q3 2023[114] - Net cash used in operating activities for the nine months ended September 30, 2024 totaled $90.4 million, primarily due to a net loss of $89.5 million, reduced by $25.8 million of non-cash expenses[139] - Operating cash inflows for the nine months ended September 30, 2023 totaled $25.0 million, primarily due to a net loss of $56.7 million reduced by $10.5 million of non-cash expenses[140] Royalty and Interest Income - Royalty income increased by $0.05 million (20%) to $0.3 million for Q3 2024, attributed to higher non-cash Alimera royalties payable to SWK Funding LLC[117] - Interest income increased by $1.6 million, or 90%, to $3.4 million for the three months ended September 30, 2024, due to higher cash and marketable securities[122] - Interest income increased by $6.5 million, or 142%, to $11.1 million for the nine months ended September 30, 2024, due to higher cash and marketable securities and interest rates[131] Clinical Trials and Product Development - DURAVYU™ 2.7mg demonstrated a gain of +8.9 letters in BCVA and CST improvement of 68.1 microns in the Phase 2 VERONA trial for DME[110] - The company expects to report full topline results for the Phase 2 VERONA trial of DURAVYU™ for DME in Q1 2025[110] Financing and Capital Activities - The company completed a $161.0 million public offering in October 2024, selling 14,636,363 shares at $11.00 per share[109] - Net cash provided by financing activities for the nine months ended September 30, 2024 totaled $12.3 million, including $11.8 million from the issuance of Common Stock and $5.4 million from the exercise of stock options[142] - Net cash used in financing activities for the nine months ended September 30, 2023 totaled $31.4 million, including $40.5 million used to pay off the SVB loan[142] Manufacturing and Facilities - The company opened a 40,000 square foot cGMP-compliant manufacturing facility in Northbridge, MA in October 2024[109] Cash and Investments - The company had cash, cash equivalents, and investments in marketable securities of $253.8 million as of September 30, 2024, and expects to fund operations into 2027[135] - Net cash used in investing activities for the nine months ended September 30, 2024 totaled $123.4 million, including $119.7 million for the purchase of marketable securities and $3.7 million for property and equipment[141] Working Capital and Non-Cash Expenses - Changes in working capital for the nine months ended September 30, 2024 included $26.7 million, with $22.1 million related to deferred revenue from the YUTIQ product rights license agreement[139] - Changes in working capital for the nine months ended September 30, 2023 included $71.2 million, with $57.4 million related to deferred revenue from the YUTIQ product rights license agreement[140] - Non-cash expenses for the nine months ended September 30, 2024 included $28.8 million of stock-based compensation[139] - Non-cash expenses for the nine months ended September 30, 2023 included $8.5 million of stock-based compensation and $1.3 million of loss on extinguishment of debt[140] Regulatory and Reporting - The company is a smaller reporting company and is not required to provide quantitative and qualitative disclosures about market risk[143]