KalVista Pharmaceuticals(KALV) - 2025 Q2 - Quarterly Report

Clinical Development - The Phase 3 KONFIDENT clinical trial for sebetralstat enrolled 136 patients across 66 sites in 20 countries, meeting all primary and key secondary endpoints with a safety profile similar to placebo [70]. - A New Drug Application (NDA) for sebetralstat was filed with the FDA in June 2024, with a PDUFA notification date set for June 17, 2025 [71]. - The European Medicines Agency (EMA) is currently reviewing the Marketing Authorization Application (MAA) for sebetralstat, which aims for broad availability across 27 EU member states [72]. - The company initiated a pediatric clinical trial for an orally disintegrating tablet formulation of sebetralstat, targeting patients aged 2 to 11 years [76]. Financial Performance - General and administrative expenses increased by $18.5 million to $29.2 million for the three months ended October 31, 2024, primarily due to increases in personnel costs and commercial expenses [98]. - General and administrative expenses increased by $26.4 million to $46.8 million for the six months ended October 31, 2024, primarily due to increases in commercial strategy expenses and personnel costs [104]. - Research and development expenses decreased by $2.5 million to $16.6 million for the three months ended October 31, 2024, compared to $19.1 million in the same period in 2023 [94]. - Research and development expenses increased by $4.8 million to $43.2 million for the six months ended October 31, 2024, compared to $38.4 million in the same period in 2023 [101]. - Net cash used in operating activities was $79.9 million for the six months ended October 31, 2024, compared to $46.6 million in the same period in 2023 [112]. - Net cash provided by investing activities was $85.8 million for the six months ended October 31, 2024, compared to $48.2 million in the same period in 2023 [113]. Funding and Capital Structure - The subsidiary received an upfront payment of $100 million from DRI Healthcare Acquisitions LP in exchange for tiered payments on future worldwide net sales of sebetralstat [80]. - The tiered payment structure includes 5% on annual net sales up to $500 million, 1.1% on sales between $500 million and $750 million, and 0.25% on sales above $750 million [80]. - In November 2024, the company entered into a royalty purchase agreement for $100.0 million in exchange for tiered royalty payments on worldwide net sales of sebetralstat [111]. - The company anticipates sufficient funding to operate for at least the next twelve months based on current capital resources [119]. - The company expects to finance cash needs through equity and debt financings, collaborations, strategic partnerships, and licensing arrangements [120]. - Existing stockholders may face dilution if additional capital is raised through stock or convertible debt securities [120]. - Debt financing may involve increased fixed payment obligations and covenants that could restrict business operations [120]. - The company entered into an underwriting agreement to issue 5,500,000 shares at $10.00 per share, netting approximately $51.3 million [82]. Tax and Regulatory Considerations - The company has incurred net losses historically and has no corporation tax liabilities, benefiting from research and development tax credits in the UK [91]. - Financial statements are prepared in accordance with U.S. GAAP, requiring estimates and assumptions that may affect reported amounts [122]. - Actual results may differ from estimates based on various factors, impacting the carrying value of assets and liabilities [122]. - Recent accounting pronouncements and their expected effects on operations and financial condition are detailed in the Interim Financial Statements [124]. - The company qualifies as a smaller reporting company and is not required to provide certain market risk disclosures [125]. Operational Considerations - The company expects to continue significant investment in research and development activities, particularly for clinical development and manufacturing [87]. - The company is party to several operating leases for office and laboratory space as of October 31, 2024 [121]. - Other income increased by $1.5 million, primarily due to an increase in foreign currency exchange rate gains of $1.4 million [99].