Oric(ORIC)2024-11-12 21:20Financial Performance - ORIC Pharmaceuticals reported a net loss of $91.5 million for the nine months ended September 30, 2024, with an accumulated deficit of $526.5 million[44]. - Net loss for Q3 2024 was $34.6 million, compared to a net loss of $25.5 million in Q3 2023, representing an increase of $9.1 million (35.7%)[52]. - Net cash used in operating activities for the nine months ended September 30, 2024, was $84.6 million, compared to $61.4 million in the same period of 2023, an increase of $23.2 million (37.8%)[62]. - Net cash provided by financing activities for the nine months ended September 30, 2024, was $126.0 million, compared to $85.2 million in the same period of 2023, an increase of $40.8 million (47.8%)[64]. - The company has not generated any revenue to date and will require substantial additional capital to fund operations and product development[58]. Research and Development - The company has initiated a Phase 1b trial for ORIC-114, targeting advanced solid tumors with EGFR and HER2 alterations, and expects to report updated data in the first half of 2025[42]. - ORIC-944 demonstrated a clinical half-life of approximately 20 hours and a favorable safety profile in a Phase 1b trial for advanced prostate cancer, with ongoing combination studies initiated in 2024[42]. - ORIC-533 is in a Phase 1b trial for relapsed/refractory multiple myeloma, with initial data reported at the ASH annual meeting in December 2023[42]. - Research and development expenses are expected to increase significantly as the company advances its product candidates through clinical trials[48]. - Research and development expenses for Q3 2024 were $31.2 million, an increase of $8.8 million (39.3%) from $22.4 million in Q3 2023[53]. - For the nine months ended September 30, 2024, research and development expenses totaled $82.1 million, up $21.4 million (35.2%) from $60.7 million in the same period of 2023[53]. - The company expects research and development expenses to increase substantially as it continues to invest in product candidates and clinical trials[54]. General and Administrative Expenses - General and administrative expenses are anticipated to rise substantially due to increased headcount to support ongoing research and development[49]. - General and administrative expenses for Q3 2024 were $7.1 million, an increase of $0.8 million (12.7%) from $6.3 million in Q3 2023[55]. - For the nine months ended September 30, 2024, general and administrative expenses were $21.2 million, up $2.6 million (13.9%) from $18.7 million in the same period of 2023[56]. Capital and Funding - The company raised $125 million through a private placement of 12.5 million shares at $10.00 per share, closing on January 23, 2024[44]. - A previous private placement on June 27, 2023, raised $85 million from the sale of 9.29 million shares at $7.00 per share[44]. - The company has entered into an "at the market" sales agreement to sell up to $200 million of common stock[44]. - Current cash and investments are expected to fund operations into late 2026, but additional funding will be necessary for future commercialization efforts[60]. - The company has cash equivalents and investments totaling $282.4 million as of September 30, 2024, including interest-bearing money market funds and U.S. Treasury securities[67]. Market and Economic Conditions - Inflation has increased costs related to labor, clinical trials, and manufacturing, but the company does not believe it significantly impacted its results of operations[69]. - An immediate 100 basis point change in interest rates would not have a material effect on the fair market value of the company's cash equivalents and investments[67]. - The company invests in high-quality marketable debt instruments with maturity dates generally less than two years to preserve principal and liquidity[67]. Company Classification and Accounting - The company has elected not to use the extended transition period for emerging growth companies, which means its financial statements may not be comparable to others that do[66]. - The company will remain an emerging growth company until it exceeds $1.235 billion in annual revenue or meets other specified criteria[66]. - The company is classified as a smaller reporting company and may continue to take advantage of scaled disclosures as long as certain revenue and stock value thresholds are met[66]. - There have been no significant changes in the company's critical accounting policies since the last annual report[65]. Strategic Focus - ORIC Pharmaceuticals is focused on developing therapies that counter resistance mechanisms in cancer, leveraging expertise in hormone-dependent cancers and precision oncology[41].