iTeos Therapeutics(US:ITOS)2025-04-28 20:36Financial Performance - The net loss for the three months ended March 31, 2025, was $34,613,000, compared to a net loss of $38,216,000 for the same period in 2024, indicating an improvement of about 7%[20]. - The company reported a basic net loss per common share of $0.80 for Q1 2025, an improvement from $1.07 in Q1 2024[20]. - For the three months ended March 31, 2025, the net loss attributable to common stockholders was $34,613,000, compared to a net loss of $38,216,000 for the same period in 2024, representing a 6.9% improvement[121]. - The consolidated net loss for the three months ended March 31, 2025, was $34,613,000, down from $38,216,000 in 2024, indicating a reduction of 9.3%[126]. - The effective tax rate for Q1 2025 was (3.3)%, compared to (6.1)% in Q1 2024, with a loss before income tax expense of $33.513 million[105]. Assets and Liabilities - As of March 31, 2025, total assets decreased to $658,871,000 from $686,976,000 as of December 31, 2024, representing a decline of approximately 4%[18]. - The total stockholders' equity decreased to $563,424,000 as of March 31, 2025, down from $590,294,000 at the end of 2024, a decline of about 5%[18]. - The company’s total current liabilities decreased to $37,999,000 as of March 31, 2025, from $40,360,000 at the end of 2024, a reduction of approximately 6%[18]. - As of March 31, 2025, the company had an accumulated deficit of $44.4 million and retained earnings of $86.4 million[39]. - The total fair value of the Company's financial instruments as of March 31, 2025, was $587.463 million, with $478.241 million classified as Level 1[51]. Cash Flow and Investments - Cash and cash equivalents increased to $156,544,000 as of March 31, 2025, from $142,131,000 at the end of 2024, marking an increase of approximately 10%[18]. - The company’s cash used in operating activities for Q1 2025 was $33,764,000, compared to $32,400,000 in Q1 2024, indicating a slight increase in cash outflow[25]. - The company reported a net cash used in operating activities of $33.7 million for the three months ended March 31, 2025, an increase of $1.4 million compared to the same period in 2024[174]. - Net cash provided by investing activities changed from a cash outflow of $69.6 million in Q1 2024 to a cash inflow of $47.7 million in Q1 2025, a change of $117.2 million[175]. - As of March 31, 2025, the company had $156.5 million in cash and cash equivalents and $467.7 million in available-for-sale securities[180]. Research and Development - Research and development expenses for Q1 2025 were $29,039,000, down from $34,529,000 in Q1 2024, reflecting a decrease of approximately 16%[20]. - The total expenses for R&D activities in the first quarter of 2025 amounted to $29,855,000, compared to $32,188,000 in the same period of 2024, reflecting a decrease of 7.2%[126]. - The company is advancing its innovative pipeline, including belrestotug, which is currently in multiple active clinical trials, with the first patient dosed in the GALAXIES Lung-301 trial triggering a $35 million milestone payment from GSK[133]. - The company has multiple active clinical trials in partnership with GSK, including the GALAXIES Lung-301 trial, which triggered $35 million in milestone payments upon dosing the first patient[32]. - EOS-215, a potential best-in-class monoclonal antibody, has initiated patient dosing in a Phase 1/1b trial assessing its efficacy in advanced solid tumors[35]. Collaboration and Funding - Under the GSK Collaboration Agreement, the Company received an upfront nonrefundable payment of $625 million and is eligible for up to $1.45 billion in milestone payments[64]. - The total expected costs for the Global Development Plan with GSK is $900 million, with GSK responsible for 60% of the costs[68]. - The Company has received grants totaling $11.5 million from the Walloon Region and the European Union to fund qualifying research and development expenses, reimbursing 55-100% of actual expenditures[78]. - The Company raised $120 million through a Securities Purchase Agreement, selling a pre-funded warrant and common stock to RA Capital and Boxer Capital[88]. - The company has agreements for government grant funding that may require repayment of up to twice the amount of funding received, contingent on commercial development decisions[191]. Clinical Trials and Risks - The company faces risks related to clinical trial results, regulatory approvals, and market acceptance of its product candidates[41]. - The company has experienced challenges in clinical trials, including potential delays and the need for additional studies due to negative or inconclusive results[213]. - Delays in patient recruitment may lead to increased costs and hinder regulatory approval processes for potential products[216]. - The overall business, financial condition, and stock price may be materially harmed by delays in clinical trials and regulatory approvals[214]. - Challenges in enrolling patients for clinical trials could delay or prevent their completion, affecting product candidate timelines[215]. Stock and Compensation - Total stock-based compensation expense for Q1 2025 was $6.635 million, a decrease of 8.7% from $7.263 million in Q1 2024[100]. - Stock options granted in Q1 2025 totaled 1,162,913 shares with a weighted average exercise price of $7.05, compared to 9,784,580 shares outstanding at the end of 2024 with an average price of $16.39[101]. - As of March 31, 2025, the number of shares reserved for issuance under the Amended 2020 Stock Option and Incentive Plan was 12,513,308[97]. - The 2020 Employee Stock Purchase Plan has 546,943 shares reserved for issuance as of March 31, 2025, with no shares issued during the three months ended March 31, 2025[99]. - As of March 31, 2025, the company had $39.0 million of unrecognized employee compensation costs related to non-vested stock options, expected to be recognized over 2.5 years[101].