MeiraGTx(US:MGTX)2022-03-10 21:55Financial Position - As of December 31, 2021, the company had cash and cash equivalents of $137.7 million, a decrease from $209.5 million as of December 31, 2020[651]. - Total current assets decreased to $183.2 million in 2021 from $272.6 million in 2020[661]. - The company reported an accumulated deficit of $340.6 million as of December 31, 2021, compared to $261.0 million in 2020, indicating ongoing financial losses[661]. - Total liabilities increased to $134.8 million in 2021 from $125.1 million in 2020[661]. - The net loss for 2021 was $79.6 million, compared to a net loss of $58.0 million in 2020, reflecting a 37% increase in losses[663]. - The company reported a basic and diluted net loss per ordinary share of $1.80 for 2021, compared to $1.54 in 2020[663]. - Cash and cash equivalents at the end of 2021 were $137.7 million, down from $209.5 million at the end of 2020, indicating a decrease of 34%[666]. - The accumulated deficit as of December 31, 2021, totaled $340.6 million, indicating significant ongoing financial challenges[672]. - The company used $10.5 million in cash flows from operations during 2021, with no assurance of generating positive cash flows in the future[672]. Revenue and Expenses - License revenue from related parties increased to $37.7 million in 2021, up from $15.6 million in 2020, representing a growth of 142%[663]. - Total operating expenses rose to $110.9 million in 2021, compared to $78.1 million in 2020, marking an increase of 42%[663]. - The Company recorded reductions to research and development expenses of $5.4 million and $5.3 million for the years ended December 31, 2021 and 2020, respectively, related to UK tax incentive programs[684]. - The Company recognized collaboration revenue of $37.7 million and $15.6 million for the years ended December 31, 2021 and 2020, respectively, related to license revenue[812]. - The Company recorded a total lease cost of $6.98 million for the year ended December 31, 2021, compared to $4.66 million for 2020[832]. Acquisitions and Collaborations - MeiraGTx Holdings acquired Bullseye Therapeutics, Inc. on October 4, 2021, to enhance its capabilities in retinal drug delivery[668]. - The company acquired Bullseye Therapeutics, Inc. for a total consideration of $1.5 million, which included 80,276 ordinary shares and $0.5 million in assumed liabilities[751]. - The acquisition of Bullseye resulted in an immediate charge of $1.5 million to research and development expense due to the lack of alternative use for the acquired in-process research and development[752]. - The company acquired Emrys Bio Inc. for a total consideration of $7.7 million, which included 580,000 ordinary shares[758]. - The acquisition of Emrys also resulted in an immediate charge of $7.7 million to research and development expense[759]. - The Company entered into a Collaboration Agreement with Janssen Pharmaceuticals, receiving a non-refundable upfront fee of $100 million for gene therapy development[800]. - The Company is eligible to receive up to $340 million in additional development and commercialization milestones from Janssen, with the first milestone payment of $30 million received in December 2021[805]. - Janssen will cover 100% of clinical and commercialization costs for the products developed under the Collaboration Agreement, with the Company receiving royalties on net sales[806]. Research and Development - The company has six programs in clinical development and a broad pipeline of preclinical and research programs, focusing on ocular and neurodegenerative diseases[667]. - Research and development costs are incurred with Janssen responsible for up to 100% of the costs, which are recorded as research and development expenses[737]. - The company recognized research and development expenses of $0.01 million related to its share of Visiogene's losses during the year ended December 31, 2021[765]. - The company accounted for the Visiogene License Agreement and Unit Agreement as a basket transaction, expensing $1.0 million as acquired in-process research and development[764]. Tax and Regulatory Matters - The Company recorded deferred tax assets of $100.3 million as of December 31, 2021, up from $61.5 million in 2020, primarily due to increased net operating loss carryforwards[794]. - The UK corporation tax rate is set to increase from 19% to 25% effective April 1, 2023, impacting future accounting periods[795]. - The company recorded unrecognized tax positions of $0.7 million and $0.5 million as of December 31, 2021 and 2020, respectively[742]. Asset Management - The company's non-current assets increased to $136.9 million in 2021 from $91.1 million in 2020, with significant growth in the European Union[748]. - Property, plant and equipment, net increased to $75.86 million in 2021 from $44.04 million in 2020, representing a 72% growth[767]. - Intangible assets decreased to $1.79 million in 2021 from $2.12 million in 2020, reflecting a 15.6% decline due to accumulated amortization[770]. - The balance of asset retirement obligations increased from $1,814,000 in 2021 to $2,081,000 in 2022, reflecting a growth of 14.7%[708]. - The company utilizes an estimated discount rate of 8% for calculating asset retirement obligations, which may significantly impact future measurements[706]. Market and Competitive Environment - The company anticipates continued losses for the foreseeable future and may never achieve profitability[17]. - The company is heavily dependent on the success of its Most Advanced Product Candidates, which are still in development[17]. - The company faces significant competition in a rapidly changing technological environment, which may impact its financial condition[17]. - The company has proprietary technology licensed from others, and losing these licenses could hinder product development[24]. COVID-19 Impact - The Company continues to monitor the impact of the COVID-19 pandemic on its financial condition and operations, with uncertainties affecting future predictions[676]. - The Company has made estimates regarding the impact of the COVID-19 pandemic within its consolidated financial statements, which may change in future periods[681].