IGM Biosciences(IGMS) - 2024 Q2 - Quarterly Report

Financial Performance - Net losses for the six months ended June 30, 2024 and 2023 were $97.7 million and $123.7 million, respectively, with an accumulated deficit of $919.0 million as of June 30, 2024[79] - Net loss improved by $26.0 million to $97.7 million for the six months ended June 30, 2024[93] - Cash, cash equivalents, and marketable securities totaled $256.4 million as of June 30, 2024, with an accumulated deficit of $919.0 million[97] - Net cash used in operating activities was $79.8 million, primarily due to a net loss of $97.7 million and a net change of $3.9 million in operating assets and liabilities[101] - Net cash provided by investing activities was $33.2 million, driven by $153.9 million in maturities of marketable securities[102] - Net cash provided by financing activities was $0.8 million, primarily from employee stock purchase plans and stock option exercises[103] Collaboration and Revenue - Collaboration revenue for the three months ended June 30, 2024 increased by $0.8 million to $1.3 million, primarily due to a cumulative catch-up adjustment related to the Sanofi Refocusing[89] - Collaboration revenue increased by $0.8 million to $1.8 million for the six months ended June 30, 2024, primarily due to a cumulative catch-up adjustment related to the Sanofi Refocusing[94] - The company expects to receive up to $1.065 billion in aggregate development, regulatory, and commercial milestones per immunology target from Sanofi, along with tiered royalties on global net sales[82] - Potential future milestone and royalty payments related to license agreements could total up to $361.9 million, contingent on achieving certain milestones[104] Research and Development Expenses - Research and development expenses decreased by $13.7 million to $42.0 million for the three months ended June 30, 2024, driven by lower personnel and program expenses[90] - Clinical stage direct program expenses decreased by $4.0 million, primarily due to the wind down of deprioritized clinical programs[90] - Preclinical stage program expenses decreased by $4.1 million, primarily due to reduced research activities and professional services[90] - Personnel-related expenses decreased by $5.7 million due to the Strategic Refocusing[90] - Research and development expenses decreased by $20.8 million to $85.8 million, driven by lower personnel, preclinical, and clinical stage program expenses[95] General and Administrative Expenses - General and administrative expenses decreased by $2.4 million to $10.6 million for the three months ended June 30, 2024, driven by lower personnel costs[90] - General and administrative expenses decreased by $4.8 million to $21.2 million, primarily due to reduced headcount[96] Interest Income and Other Financials - Interest income decreased by $0.4 million to $3.5 million for the three months ended June 30, 2024, due to lower invested capital[91] - Future minimum lease commitments for facilities totaled $59.9 million as of June 30, 2024[104] Accounting and Reporting - The company's condensed consolidated financial statements are prepared in accordance with U.S. GAAP, requiring estimates and assumptions that affect reported amounts of assets, liabilities, revenue, and expenses[107] - No material changes were made to the company's critical accounting policies during the six months ended June 30, 2024[107] - The company is classified as a "smaller reporting company" and is not required to provide quantitative and qualitative disclosures about market risk[109] Strategic Plans and Investments - The company plans to continue investing in its IgM antibody technology platform, expand its pipeline, and build out in-house manufacturing capabilities[79]