Vir(VIR) - 2020 Q1 - Quarterly Report

Financial Performance - Total revenue for the three months ended March 31, 2020, was $5.718 million, a 56.3% increase from $3.661 million in the same period of 2019[15] - The net loss for the first quarter of 2020 was $77.240 million, compared to a net loss of $28.670 million in Q1 2019, representing a 169.5% increase in losses[15] - The company reported a comprehensive loss of $76.391 million for the first quarter of 2020, compared to a comprehensive loss of $28.561 million in the same quarter of 2019[18] - For the three months ended March 31, 2020, the company reported a net loss of $77.24 million, compared to a net loss of $28.67 million for the same period in 2019[25] - The company reported net losses of $77.2 million for Q1 2020, compared to $28.7 million for Q1 2019, with an accumulated deficit of $445.8 million as of March 31, 2020[198] Cash and Assets - Cash and cash equivalents as of March 31, 2020, were $168.418 million, an increase from $109.335 million at the end of 2019[13] - The company had cash, cash equivalents, and restricted cash totaling $178.71 million at the end of the period, up from $73.12 million at the end of the same period in 2019[25] - As of March 31, 2020, total financial assets amounted to $366.629 million, including $173.297 million in money market funds and $193.332 million in U.S. government treasuries[69] - The company had a total stockholders' equity of $380.333 million as of March 31, 2020, down from $423.942 million at the end of 2019, a decrease of 10.3%[13] - Total assets decreased to $477.114 million as of March 31, 2020, down from $512.071 million at the end of 2019, reflecting a decline of 6.8%[13] Liabilities and Expenses - Total liabilities increased to $96.781 million, up from $88.129 million at the end of 2019, marking a rise of 9.3%[13] - Research and development expenses increased significantly to $64.979 million, up 151.1% from $25.872 million year-over-year[15] - General and administrative expenses are expected to increase substantially in absolute dollars due to ongoing research and development activities and potential commercialization efforts[210] - Additional expenses are anticipated related to operating as a public company, including audit, legal, regulatory, and tax-related services[210] - Increased insurance expenses and investor relations activities are also expected as part of the administrative costs associated with public company compliance[210] Research and Development - The company expects to incur additional losses in the future to conduct research and development and recognizes the need to raise additional capital[30] - Research and development expenses are expected to increase substantially as the company advances product candidates through clinical trials and seeks regulatory approval[206] - The company has not earned any product revenue since inception and primarily relies on research funding from grants and contract revenue[45] - The company is advancing its lead SARS-CoV-2 monoclonal antibody candidates, VIR-7831 and VIR-7832, into Phase 2 clinical trials pending regulatory review[194] - The company has established its own internal chemistry, manufacturing, and control capabilities and is working with contract development and manufacturing organizations to support early-stage product candidates[199] Investments and Collaborations - The company entered into a collaboration agreement with Alnylam to develop RNAi therapeutics targeting coronaviruses, with potential milestone payments of up to $15 million[181] - The Company entered into an option and license agreement with Brii Biosciences, granting exclusive rights for up to four programs in the China Territory for a fee ranging from mid-single-digit millions to $20 million per program[108] - The Company has been awarded grants from the National Institutes of Health totaling $5.1 million related to TomegaVax's research efforts[104] - The Company entered into a stock purchase agreement with Glaxo Group Limited, selling 6,626,027 shares at $37.73 per share, totaling approximately $250.0 million[187] - The Company is required to pay Alnylam up to $15.0 million for achieving specified development milestones for COV Products[128] Future Outlook - The company anticipates that the ongoing COVID-19 pandemic will impact its clinical development timelines[36] - The company is closely monitoring the impact of the COVID-19 pandemic on its operations and has implemented plans to mitigate potential disruptions[200] - The Company plans to adopt ASU 2016-13 effective January 1, 2023, which will require the measurement and recognition of expected credit losses for financial assets held at amortized cost[66] - The Company has not yet evaluated the impact of adopting ASU 2016-13 on its condensed consolidated financial statements and disclosures[66] - The Company expects to recognize $37.6 million of remaining unamortized stock-based compensation expense related to stock options over an estimated weighted average period of 2.7 years[168]