Protagonist Therapeutics(US:PTGX)2020-08-06 20:28Financial Performance - The net loss for the three and six months ended June 30, 2020, was $19.4 million and $39.5 million, respectively, compared to $29.2 million and $43.3 million for the same periods in 2019[137][138]. - The net loss for the six months ended June 30, 2020, was $39.5 million, a decrease of $3.8 million, or 9%, from a net loss of $43.3 million in 2019[186]. - Net loss decreased by $9.8 million, or 33%, from $29.2 million in Q2 2019 to $19.4 million in Q2 2020[161]. - The company does not anticipate achieving sustained profitability in the foreseeable future, continuing to incur significant losses related to ongoing operations and product development[139]. Cash and Capital - As of June 30, 2020, the company had $208.7 million in cash, cash equivalents, and marketable securities, with an accumulated deficit of $257.2 million[186]. - Cash used in operating activities for the six months ended June 30, 2020 was $37.3 million, compared to $13.0 million for the same period in 2019[201][202]. - Cash provided by financing activities for the six months ended June 30, 2020 was $113.0 million, primarily from a public offering of common stock totaling $105.7 million[207]. - The company anticipates needing to raise substantial additional capital to advance product candidates and fund operations[196]. - The company completed a public offering of 7,000,000 shares at $14.00 per share in May 2020, generating net proceeds of $105.3 million[192]. Research and Development - PTG-300, the most advanced clinical asset, is in Phase 2 studies for polycythemia vera and hereditary hemochromatosis, with preliminary results showing the ability to control hematocrit levels below 45%[128]. - PTG-200 is in a global Phase 2 clinical study for moderate-to-severe Crohn's disease, with a milestone payment of $5.0 million received for the nomination of a second-generation development candidate[130][132]. - PN-943, an orally delivered integrin antagonist, completed Phase 1 studies and is expected to initiate a Phase 2 proof of concept study in ulcerative colitis, pending conditions for safe patient accrual[133]. - Research and development expenses increased by $0.9 million, or 5%, from $19.4 million in Q2 2019 to $20.3 million in Q2 2020[165]. - Research and development expenses rose by $7.2 million, or 23%, from $31.8 million in 2019 to $39.0 million in 2020, driven by increased pre-clinical and clinical trial costs[178]. - The proprietary technology platform enables the development of novel peptide-based drugs, addressing significant unmet medical needs in various therapeutic areas[126][134]. - The company is discontinuing the development of PTG-300 for beta-thalassemia and myelodysplastic syndromes, focusing efforts on polycythemia vera and hereditary hemochromatosis[128]. Revenue and Expenses - License and collaboration revenue increased by $14.4 million, or 176%, from a loss of $8.2 million in Q2 2019 to $6.2 million in Q2 2020[163]. - License and collaboration revenue increased by $16.5 million, or 249%, from a loss of $6.6 million in 2019 to $9.9 million in 2020[176]. - Total operating expenses rose by $1.2 million, or 5%, from $23.2 million in Q2 2019 to $24.4 million in Q2 2020[161]. - General and administrative expenses increased by $0.3 million, or 8%, from $3.9 million in Q2 2019 to $4.2 million in Q2 2020[166]. - General and administrative expenses increased by $1.1 million, or 15%, from $7.6 million in 2019 to $8.8 million in 2020, primarily due to higher insurance and salary costs[179]. - Interest income decreased by $0.4 million, or 68%, from $0.6 million in Q2 2019 to $0.2 million in Q2 2020[167]. - Interest income decreased by $0.6 million, or 47%, from $1.4 million in 2019 to $0.7 million in 2020, attributed to a declining interest rate environment[180]. - Income tax expense increased by $2.8 million, or 169%, from a tax benefit of $1.6 million in Q2 2019 to an expense of $1.1 million in Q2 2020[172]. - Income tax expense increased by $2.8 million, or 190%, from a benefit of $1.4 million in 2019 to an expense of $1.3 million in 2020[185]. Impact of COVID-19 - The impact of the COVID-19 pandemic has introduced significant uncertainties, potentially affecting clinical trials, patient recruitment, and overall business operations[135][136]. Collaboration and Agreements - The company has received a total of $75.0 million in non-refundable cash payments from Janssen under the collaboration agreement, including $50.0 million upfront and $25.0 million upon the execution of the First Amendment[140]. - The transaction price of the initial performance obligation under the Janssen License and Collaboration Agreement was $113.9 million as of June 30, 2020, an increase of $0.3 million from March 31, 2020[164]. - The transaction price of the initial performance obligation under the Janssen License and Collaboration Agreement was $113.9 million as of June 30, 2020, an increase of $1.0 million from December 31, 2019[177]. - The company had a decrease of $7.5 million in deferred revenue related to the Janssen License and Collaboration Agreement during the first half of 2020[201]. Debt and Financial Obligations - Loss on early repayment of debt was $0.6 million for Q2 2020, reflecting fees related to the repayment of a term loan[170]. - The company prepaid a $10.0 million term loan in June 2020, incurring a loss of $0.6 million on early repayment[184]. Off-Balance Sheet Arrangements - The company has not entered into any off-balance sheet arrangements as defined under SEC rules[210].