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Agenus(AGEN) - 2024 Q3 - Quarterly Report
AGENAgenus(AGEN)2024-11-12 21:58
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Financial Performance - Research and development revenue for Q3 2024 was 0,downfromapproximately0, down from approximately 3.4 million in Q3 2023, primarily due to the absence of deferred revenue recognition from Gilead Collaboration Agreements[101]. - Non-cash royalty revenue from GSK increased by 4.3milliontoapproximately4.3 million to approximately 24.7 million in Q3 2024, compared to 20.4millioninQ32023,drivenbyincreasednetsalesofGSK′svaccines[101].−Researchanddevelopmentexpensesdecreasedby2020.4 million in Q3 2023, driven by increased net sales of GSK's vaccines[101]. - Research and development expenses decreased by 20% to 41.1 million in Q3 2024 from 51.4millioninQ32023,attributedtoreductionsinthird−partyservices,personnel−relatedexpenses,andsubsidiaryactivities[102].−Generalandadministrativeexpensesdecreasedby951.4 million in Q3 2023, attributed to reductions in third-party services, personnel-related expenses, and subsidiary activities[102]. - General and administrative expenses decreased by 9% to 17.3 million in Q3 2024 from 18.9millioninQ32023,mainlyduetolowerpersonnelcostsandprofessionalfees[103].−FortheninemonthsendedSeptember30,2024,researchanddevelopmentrevenuewasapproximately18.9 million in Q3 2023, mainly due to lower personnel costs and professional fees[103]. - For the nine months ended September 30, 2024, research and development revenue was approximately 0.3 million, down from 8.5millioninthesameperiodof2023[104].−Non−cashroyaltyrevenuefortheninemonthsendedSeptember30,2024increasedby8.5 million in the same period of 2023[104]. - Non-cash royalty revenue for the nine months ended September 30, 2024 increased by 13.5 million to approximately 75.0million,comparedto75.0 million, compared to 61.5 million in the same period of 2023[104]. - Research and development expenses for the nine months ended September 30, 2024 decreased by 27% to 121.8millionfrom121.8 million from 167.8 million in the same period of 2023[105]. - General and administrative expenses for the nine months ended September 30, 2024 decreased by 11% to 50.9millionfrom50.9 million from 57.6 million in the same period of 2023[106]. - The company had an accumulated deficit of 2.1billionasofSeptember30,2024,andexpectstoincursignificantlossesoverthenextseveralyears[111].−NetcashusedinoperatingactivitiesfortheninemonthsendedSeptember30,2024,was2.1 billion as of September 30, 2024, and expects to incur significant losses over the next several years[111]. - Net cash used in operating activities for the nine months ended September 30, 2024, was 129.7 million, compared to 183.8millionforthesameperiodin2023[121].StockandFinancing−Thecompanysold1,763,025sharesofcommonstock,generatingnetproceedsofapproximately183.8 million for the same period in 2023[121]. Stock and Financing - The company sold 1,763,025 shares of common stock, generating net proceeds of approximately 7.1 million between October 1, 2024, and November 8, 2024[78]. - The company received a non-refundable upfront cash payment of 200.0millionfromBristol−MyersSquibbfortheexclusiveworldwidelicenseofAGEN1777[92].−Thecompanyiseligibletoreceiveupto200.0 million from Bristol-Myers Squibb for the exclusive worldwide license of AGEN1777[92]. - The company is eligible to receive up to 315.0 million in potential milestone payments plus royalties from Incyte under their collaboration agreement[87]. - The company is eligible to receive up to approximately 136.3million,136.3 million, 49.4 million, and 183.1millioninpotentialdevelopment,regulatory,andcommercialmilestonesfromUroGen,Merck,andIncyte,respectively[94].−Thecompanyreceivedmilestonepaymentsof183.1 million in potential development, regulatory, and commercial milestones from UroGen, Merck, and Incyte, respectively[94]. - The company received milestone payments of 15.1 million and 25.25millionbasedonGSK′svaccinesalesreaching25.25 million based on GSK's vaccine sales reaching 2.0 billion and 2.75billion,respectively[98].ResearchandDevelopment−Theleadprogram,botensilimab,isprogressingthroughmultipleclinicalprograms,withenrollmentcompletedforaPhase1trial(n 150)andarandomizedPhase2trial(n 230)inOctober2023[85].−MiNKTherapeutics,asubsidiary,isexpandingitsclinicalprograms,includingaPhase2trialinsecond−linegastriccancerandarandomizedPhase2studyforviralARDS[100].−Thecompanyhasarobustpipelineofimmunologicalagentstargetingcancer,withafocusoncombinationtherapiestoexpandpatientpopulationsbenefitingfromimmunotherapy[81].−Thecompanyhascollaborationswithseveralfirms,includingBristol−MyersSquibbandMerck,resultinginoveradozenantibodypre−clinicalorclinicaldevelopmentprograms[86].CashManagementandInvestmentPolicy−CashandcashequivalentsatSeptember30,2024,amountedto2.75 billion, respectively[98]. Research and Development - The lead program, botensilimab, is progressing through multiple clinical programs, with enrollment completed for a Phase 1 trial (n~150) and a randomized Phase 2 trial (n~230) in October 2023[85]. - MiNK Therapeutics, a subsidiary, is expanding its clinical programs, including a Phase 2 trial in second-line gastric cancer and a randomized Phase 2 study for viral ARDS[100]. - The company has a robust pipeline of immunological agents targeting cancer, with a focus on combination therapies to expand patient populations benefiting from immunotherapy[81]. - The company has collaborations with several firms, including Bristol-Myers Squibb and Merck, resulting in over a dozen antibody pre-clinical or clinical development programs[86]. Cash Management and Investment Policy - Cash and cash equivalents at September 30, 2024, amounted to 44.8 million, which are exposed to interest rate changes[123]. - The company does not currently employ specific strategies to manage foreign currency exchange rate fluctuations[122]. - The investment policy prohibits investing in structured investment vehicles and asset-backed commercial paper[124]. - The company aims to preserve principal, maintain liquidity, and maximize yields through its investment policy[124]. - There has been no material change to interest rate exposure since the Annual Report for the year ended December 31, 2023[123]. - The company does not invest in derivative financial instruments, indicating no material market risk exposure from such instruments[124]. Future Outlook - Future cash generation will depend on achieving regulatory approval and market acceptance of product candidates[121]. - The company is focused on entering new collaborations to enhance cash generation capabilities[121].