PMV Pharmaceuticals(PMVP) - 2025 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements (Unaudited) Presents PMV Pharmaceuticals' unaudited condensed consolidated financial statements for Q1 2025 and 2024, detailing financial position, performance, and significant accounting policies Condensed Consolidated Balance Sheets (Unaudited) Details the company's financial position, including assets, liabilities, and equity, as of March 31, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets (Unaudited) | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Cash and cash equivalents | $51,341 | $40,876 | | Marketable securities, current | $109,047 | $128,578 | | Total current assets | $163,499 | $175,658 | | Total assets | $170,608 | $191,288 | | Total current liabilities | $9,759 | $14,370 | | Total liabilities | $10,501 | $15,208 | | Total stockholders' equity | $160,107 | $176,080 | | Accumulated deficit | $(386,148) | $(368,712) | Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) Presents the company's financial performance, including revenues, expenses, and net loss, for the three months ended March 31, 2025, and 2024 Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Research and development | $17,441 | $13,186 | | General and administrative | $4,123 | $5,035 | | Total operating expenses | $21,564 | $18,221 | | Loss from operations | $(21,564) | $(18,221) | | Interest income, net | $1,935 | $2,952 | | Net loss | $(17,436) | $(15,270) | | Net loss per share -- basic and diluted | $(0.34) | $(0.30) | Condensed Consolidated Statements of Stockholders' Equity (Unaudited) Details changes in the company's equity, including common stock, additional paid-in capital, and accumulated deficit, for the periods presented Condensed Consolidated Statements of Stockholders' Equity (Unaudited) | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Additional Paid-in Capital | $546,171 | $544,653 | | Accumulated Deficit | $(386,148) | $(368,712) | | Total Stockholders' Equity | $160,107 | $176,080 | | Common Stock Shares Outstanding | 51,954,135 | 51,935,134 | - The company's accumulated deficit increased from $(368,712) thousand at December 31, 2024, to $(386,148) thousand at March 31, 2025, reflecting the net loss incurred during the quarter[22] Condensed Consolidated Statements of Cash Flows (Unaudited) Summarizes the company's cash inflows and outflows from operating, investing, and financing activities for the three months ended March 31, 2025, and 2024 Condensed Consolidated Statements of Cash Flows (Unaudited) | Cash Flow Activity | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :----------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net cash used in operating activities | $(18,266) | $(16,184) | | Net cash provided by investing activities | $28,714 | $26,166 | | Net cash provided by financing activities | $10 | $0 | | Net increase in cash and cash equivalents | $10,465 | $9,948 | | Cash, cash equivalents, and restricted cash - end of period | $51,341 | $48,476 | Notes to Unaudited Condensed Consolidated Financial Statements Provides detailed explanations and disclosures regarding the company's financial position, performance, and significant accounting policies 1. Formation and Business of the Company PMV Pharmaceuticals is a precision oncology company developing p53-targeting therapies, with significant losses and negative cash flows, requiring future financing - PMV Pharmaceuticals, Inc. is a precision oncology company pioneering the discovery and development of small molecule, tumor-agnostic therapies targeting p53[28] - The Company incurred a net loss of $17,436 thousand for the three months ended March 31, 2025, and used $18,266 thousand of cash for operations during the same period[30] March 31, 2025 (in thousands) | Metric | March 31, 2025 (in thousands) | | :------------------------------------ | :----------------------------- | | Accumulated deficit | $386,148 | | Cash, cash equivalents, and marketable securities | $165,823 | 2. Summary of Significant Accounting Policies Outlines the company's significant accounting policies, including GAAP basis, use of estimates, fair value measurements, cash, leases, property, and recent ASU adoptions - The unaudited condensed consolidated financial statements are prepared in accordance with GAAP for interim financial information and include all normal recurring adjustments[32] - The Company adopted FASB ASU 2023-07, Segment Reporting, on December 31, 2024, which is disclosure-related and did not impact financial position or results of operations[51][53] - Marketable debt securities are classified as available-for-sale and carried at fair value, with unrealized gains and losses reported in accumulated other comprehensive loss[38] 3. Fair Value Measurements Financial instruments, including money market funds and debt securities, are measured at fair value using Level 1 and Level 2 inputs, with no Level 3 assets or liabilities Financial Assets Fair Value as of March 31, 2025 (in thousands): | Asset Type | Carrying Amount | Fair Value | Level 1 | Level 2 | | :------------------ | :-------------- | :--------- | :------ | :------ | | Money market funds | $51,261 | $51,261 | $51,261 | $0 | | Corporate securities | $37,503 | $37,501 | $1,698 | $35,803 | | Government securities | $76,901 | $76,981 | $57,665 | $19,316 | | Total | $165,665 | $165,743 | $110,624 | $55,119 | Financial Assets Fair Value as of December 31, 2024 (in thousands): | Asset Type | Carrying Amount | Fair Value | Level 1 | Level 2 | | :------------------ | :-------------- | :--------- | :------ | :------ | | Money market funds | $40,790 | $40,790 | $40,790 | $0 | | Corporate securities | $32,941 | $32,949 | $2,148 | $30,801 | | Government securities | $109,341 | $109,472 | $73,339 | $36,133 | | Total | $183,072 | $183,211 | $116,277 | $66,934 | - As of March 31, 2025, and December 31, 2024, aggregated gross unrealized losses of available-for-sale investments were not material[59] 4. Property and Equipment, Net Net property and equipment decreased to $376 thousand by March 31, 2025, due to depreciation and leasehold improvement write-offs from a lease termination Property and Equipment, Net | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------- | :----------------------------- | :----------------------------- | | Total property and equipment | $1,667 | $1,869 | | Less: Accumulated depreciation | $(1,291) | $(1,460) | | Property and equipment, net | $376 | $409 | - Depreciation expense for the three months ended March 31, 2025, was $37 thousand, significantly lower than $362 thousand for the same period in 2024[60] 5. Accrued Expenses Total accrued expenses decreased to $5,802 thousand by March 31, 2025, primarily due to a reduction in accrued compensation Accrued Expenses | Accrued Expense Type | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--------------------------- | :----------------------------- | :----------------------------- | | Accrued compensation | $2,777 | $5,005 | | Accrued research and development costs | $2,857 | $2,177 | | Accrued legal and professional services | $168 | $257 | | Total | $5,802 | $7,439 | 6. Commitments and Contingencies The company terminated its prior lease, incurring a $6,024 thousand loss, and entered new subleases, resulting in lower Q1 2025 lease costs of $135 thousand - The Company terminated its One Research Way lease in October 2024, paying a $1,420 thousand termination fee and writing off $9,454 thousand in leasehold improvements, resulting in a net loss of $6,024 thousand[63][65] - New subleases were signed in August and September 2024 for a new headquarters (400 Alexander Sublease, extending to Feb 2027) and laboratory space (311 Pennington Sublease, extending to Dec 2029)[66][67] Lease Metric | Lease Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :-------------------- | :--------------------------------------------- | :--------------------------------------------- | | Operating lease cost | $118 | $355 | | Variable lease cost | $17 | $133 | | Total lease cost | $135 | $488 | Operating Lease Liabilities (in thousands): | Metric | March 31, 2025 | December 31, 2024 | | :-------------------------- | :------------- | :---------------- | | Right-of-use assets, operating leases | $1,061 | $1,143 | | Total operating lease liabilities | $1,106 | $1,190 | | Weighted-average remaining lease term (years) | 3.27 | 3.47 | | Weighted-average discount rate | 13.70% | 13.70% | 7. Stockholders' Equity As of March 31, 2025, 51,954,135 common shares were outstanding, with $113.8 million remaining under the ATM Program for future issuances - As of March 31, 2025, the Company had 51,954,135 shares of common stock issued and outstanding[72] - The Company has approximately $113.8 million remaining in gross proceeds available for future issuances of common stock under the ATM Program as of March 31, 2025[74] 8. Stock Plan Details equity awards under the 2020 plans, including a 2025 share increase and a 2024 stock option exchange that generated $1,370 thousand in incremental compensation - For 2025, the number of shares reserved for issuance under the 2020 Equity Incentive Plan increased by 2,596,638 shares, effective January 1, 2025[75] - A stock option exchange in August 2024 granted new options at an exercise price of $1.48, resulting in incremental stock-based compensation expense of $1,370 thousand over a three or four-year vesting period[80] Stock-based Compensation Expense (in thousands): | Category | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Research and development | $637 | $975 | | General and administrative | $871 | $1,635 | | Total | $1,508 | $2,610 | Stock-based Compensation Expense by Award Type (in thousands): | Award Type | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Stock options | $1,149 | $2,214 | | Restricted stock units | $278 | $342 | | Employee stock purchase plan | $81 | $54 | | Total | $1,508 | $2,610 | 9. Income Taxes The company recorded a $2,196 thousand income tax benefit in Q1 2025 from NOL and R&D tax credit sales, with an 11% effective tax rate and a full valuation allowance on deferred tax assets - The Company's effective tax rates were 11% for the three months ended March 31, 2025, and 0% for the three months ended March 31, 2024[89] - A benefit for income taxes of $2,196 thousand was received for the three months ended March 31, 2025, from the sale of New Jersey NOL and R&D tax credits, reaching the program's sale limit[91] - A full valuation allowance is recorded on federal and state net deferred tax assets as management does not forecast the Company to be in a taxable position in the near future[90] 10. Net Loss per Share All outstanding stock options and RSU awards were excluded from diluted net loss per share calculations due to their anti-dilutive effect Common Stock Equivalents Excluded from Diluted Net Loss Per Share Calculation: | Item | As of March 31, 2025 | As of March 31, 2024 | | :------------------------------------ | :------------------- | :------------------- | | Options to purchase common stock | 11,947,135 | 9,065,479 | | Unvested restricted common stock units | 907,666 | 1,136,411 | | Expected shares to be purchased under 2020 ESPP | 18,898 | 11,405 | | Total | 12,873,699 | 10,213,295 | 11. Related Parties Consulting fees paid to board members increased to $50 thousand in Q1 2025 from $37 thousand in Q1 2024 Total consulting fees paid | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :-------------------- | :--------------------------------------------- | :--------------------------------------------- | | Total consulting fees paid | $50 | $37 | 12. Restructuring A January 2024 restructuring reduced the workforce by 30%, incurring a $0.6 million non-recurring charge for severance and benefits in R&D expenses - On January 18, 2024, the Company announced a restructuring plan involving a workforce reduction of approximately 30% of its employees[95] - A non-recurring charge of $0.6 million, primarily for employee severance and benefit costs, was incurred and recorded in research and development expenses[96] 13. Segment Information The company operates as a single operating and reporting segment, with the CEO reviewing significant expenses, primarily research and development - The Company views its operations and manages its business as one operating and reporting segment[98] Significant Segment Expenses (in thousands): | Expense Category | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Research and Development | $17,441 | $13,186 | | General and Administration | $4,123 | $5,035 | | Loss from Operations | $21,564 | $18,221 | Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the company's financial condition, operations, business strategy, rezatapopt progress, liquidity, capital resources, and critical accounting policies for Q1 2025 versus 2024 Overview PMV Pharmaceuticals, a precision oncology company, reports a $17.4 million net loss in Q1 2025 and a $386.1 million accumulated deficit, with lead candidate rezatapopt in Phase 2 trials and increasing expenses requiring future funding - PMV Pharmaceuticals is a precision oncology company focused on small molecule, tumor-agnostic therapies targeting p53, a tumor suppressor protein[103] - The company incurred net losses of $17.4 million for the three months ended March 31, 2025, and had an accumulated deficit of $386.1 million as of the same date[104] - The lead product candidate, rezatapopt, is in a pivotal Phase 2 monotherapy portion of the PYNNACLE study, with interim data expected by mid-2025, and also in a Phase 1b study for AML/MDS[104] Components of Results of Operations Details the components of the company's financial results, including revenue, R&D expenses, G&A expenses, and interest income Revenue The company has not generated any revenue to date and does not anticipate doing so in the foreseeable future, with future revenue contingent on product development and regulatory approval - The Company has not generated any revenue from product sales or any other sources since inception[109] Operating Expenses Discusses the nature and expected trends of the company's research and development and general and administrative expenses Research and Development Expenses R&D expenses cover product candidate discovery and development, primarily for rezatapopt, expensed as incurred, and are expected to increase significantly as clinical trials advance - Research and development expenses consist primarily of personnel costs, third-party contractor services, laboratory materials, and depreciation of research equipment[110] - Substantially all research and development costs are associated with the lead product candidate, rezatapopt, which is in a registrational, tumor-agnostic PYNNACLE Phase 2 trial[111] - Research and development expenses are expected to increase substantially in absolute dollars in the future as product candidates advance through clinical trials and regulatory approval[112] General and Administrative Expenses G&A expenses include personnel, professional services, and facility costs, expected to increase as product candidates advance and public company obligations are met - General and administrative expenses include personnel costs, expenses for outside professional services (legal, accounting, audit, consulting), and allocated facility expenses[114] - The Company expects to increase general and administrative expenses as product candidates advance and compliance with SEC and exchange rules continues[114] Interest Income, Net Net interest income is derived from interest-bearing cash, cash equivalents, and marketable securities, adjusted for accretion and amortization - Interest income, net, primarily consists of interest income from interest-bearing cash, cash equivalents, and marketable securities, and interest costs related to accretion and amortization of discounts and premiums[115] Results of Operations Compares the company's financial performance for Q1 2025 versus 2024, highlighting changes in operating expenses, interest income, and the income tax benefit Comparison of the Three Months ended March 31, 2025 and 2024 Provides a detailed comparison of key financial metrics for the three months ended March 31, 2025, and 2024 Results of Operations (in thousands): | Statement of Operations Data | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | | :------------------------------------ | :-------------------------------- | :-------------------------------- | :----- | | Research and development | $17,441 | $13,186 | $4,255 | | General and administrative | $4,123 | $5,035 | $(912) | | Total operating expenses | $21,564 | $18,221 | $3,343 | | Loss from operations | $(21,564) | $(18,221) | $(3,343) | | Interest income, net | $1,935 | $2,952 | $(1,017) | | (Benefit) provision for income taxes | $(2,197) | $0 | $(2,197) | | Net loss | $(17,436) | $(15,270) | $(2,166) | Research and Development Expenses R&D expenses increased by $4.2 million to $17.4 million in Q1 2025, driven by higher rezatapopt program costs, partially offset by reduced personnel expenses - Research and development expenses increased by $4.2 million to $17.4 million for the three months ended March 31, 2025, compared to $13.2 million for the same period in 2024[118] - The increase was primarily due to a $5.2 million increase in contractual research organization costs for the rezatapopt program, offset by a $1.0 million decrease in personnel-related costs and stock-based compensation due to the 2024 reduction in force[118][123] General and Administrative Expenses G&A expenses decreased by $0.9 million to $4.1 million in Q1 2025, primarily due to reduced personnel and facility expenses - General and administrative expenses decreased by $0.9 million to $4.1 million for the three months ended March 31, 2025, compared to $5.0 million for the same period in 2024[119] - This decrease was primarily due to an $0.8 million decrease in personnel expenses from reduced headcount and a $0.1 million decrease in facility and equipment expenses due to lower lease costs[119] Interest Income, Net Net interest income decreased by $1.1 million to $1.9 million in Q1 2025, driven by lower interest rates on cash and marketable securities - Interest income, net, decreased by $1.1 million to $1.9 million for the three months ended March 31, 2025, compared to $3.0 million for the same period in 2024[120] - The decrease was driven by lower interest rates from cash and investments in marketable securities and U.S. treasuries[120] Income Tax Benefit A $2.2 million income tax benefit was recognized in Q1 2025 from the sale of New Jersey NOL and R&D tax credits, reaching the program's sale limit - The Company received a benefit for income taxes of $2.2 million for the three months ended March 31, 2025, from the sale of New Jersey NOL and R&D tax credits[121] - As of March 31, 2025, the Company had reached the sale limit established by the New Jersey Technology Business Tax Certificate Program[121] Liquidity and Capital Resources As of March 31, 2025, the company had $165.8 million in cash and marketable securities, an accumulated deficit of $386.1 million, and expects funds to last through 2026, relying on future financing Financial Condition (in thousands): | Metric | As of March 31, 2025 | As of December 31, 2024 | Change | | :-------------------------- | :------------------- | :---------------------- | :----- | | Cash and cash equivalents | $51,341 | $40,876 | $10,465 | | Marketable securities – current | $109,047 | $128,578 | $(19,531) | | Marketable securities – noncurrent | $5,435 | $13,843 | $(8,408) | | Total financial assets | $165,823 | $183,297 | $(17,474) | | Total working capital | $153,740 | $161,288 | $(7,548) | - As of March 31, 2025, the Company had cash, cash equivalents, and marketable securities of $165.8 million and an accumulated deficit of $386.1 million[125] - The Company expects its cash, cash equivalents, and marketable securities as of March 31, 2025, to be sufficient to fund planned operations at least through the end of 2026[132] Cash Flows Q1 2025 cash flows show $18.3 million used in operations, $28.7 million provided by investing, and $10 thousand from financing, resulting in a $10.5 million net increase in cash Cash Flows (in thousands): | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Cash used in operating activities | $(18,266) | $(16,184) | | Cash provided by investing activities | $28,714 | $26,166 | | Cash provided by financing activities | $10 | $0 | | Net increase in cash and cash equivalents | $10,465 | $9,948 | Operating Activities Net cash used in operating activities was $18.3 million in Q1 2025, primarily due to a $17.4 million net loss, partially offset by non-cash charges - Net cash used in operating activities for Q1 2025 was $18.3 million, primarily due to a net loss of $17.4 million[136] - Non-cash charges included $1.5 million in stock-based compensation and $0.8 million in accretion of discounts on marketable securities[136] Investing Activities Investing activities provided $28.7 million in Q1 2025, mainly from marketable securities maturities, partially offset by new purchases - Investing activities provided $28.7 million of cash in Q1 2025, primarily from $44.4 million in maturities of marketable securities[138] - This was partially offset by $15.7 million in purchases of marketable securities[138] Financing Activities Net cash provided by financing activities was $10 thousand in Q1 2025, primarily from stock option exercises - Net cash provided by financing activities was $10 thousand for the three months ended March 31, 2025, from the exercise of stock options[25][140] Critical Accounting Policies and Estimates Critical accounting policies involve significant judgment, especially for R&D costs and accrued expenses, with no material changes during Q1 2025 - No material changes occurred to the critical accounting policies during the three-month period ended March 31, 2025[143] - Key policies involve significant judgment in estimating research and development costs and accrued research and development expenses, which are expensed as incurred[144][145] Item 3. Quantitative and Qualitative Disclosures About Market Risk The company's market risk exposure to interest rate fluctuations is not material, but future foreign vendor contracts could introduce foreign currency exchange rate risks - The Company's exposure to changes in interest rates is not material due to the nature and amount of its money-market funds and marketable securities[150] - The Company is not currently exposed to significant market risk related to changes in foreign currency exchange rates but may be in the future if it contracts with foreign vendors[151] Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective at the reasonable assurance level as of March 31, 2025[153] - There have been no material changes in the internal control over financial reporting during the most recent fiscal quarter[154] PART II. OTHER INFORMATION Item 1. Legal Proceedings The company is not currently involved in any litigation or legal proceedings with a material adverse effect - The Company is not currently involved in any litigation or legal proceedings that are likely to have any material adverse effect[157] Item 1A. Risk Factors Updates risk factors, highlighting new risks from reliance on Chinese manufacturers, including potential disruptions, trade wars, tariffs, political unrest, and economic instability - New risk factors include potential adverse effects on business, financial condition, and results of operations due to reliance on third-party manufacturers in China[159] - Risks from China include disruptions in operations, trade wars, political unrest, unstable economic conditions, and tariffs (e.g., 10% in Feb 2025, 20% in March 2025, and 125% on a large proportion of imports)[159] - Changes in U.S. trade policy, including potential limitations on U.S. biotechnology companies using Chinese equipment or services, could materially adversely affect the company[160][161] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds No unregistered sales of equity securities or material changes in the planned use of IPO proceeds are reported - There have been no unregistered sales of equity securities[162] - There has been no material change in the planned use of proceeds from the initial public offering[163] Item 3. Defaults Upon Senior Securities No defaults upon senior securities are reported - There are no defaults upon senior securities[165] Item 4. Mine Safety Disclosures This item is not applicable to the company - Mine Safety Disclosures are not applicable[166] Item 5. Other Information This item is not applicable to the company - Other Information is not applicable[167] Item 6. Exhibits Lists exhibits filed as part of the Form 10-Q, including corporate governance documents, compensation policies, and certifications - Exhibits include the Amended and Restated Certificate of Incorporation, Bylaws, Amended Outside Director Compensation Policy, Offer Letter Agreement, Change in Control and Severance Policy Participation Agreement, and various certifications[169] Signatures The report is signed by David H. Mack, Ph.D. (CEO) and Michael Carulli (CFO) on behalf of PMV Pharmaceuticals, Inc. on May 9, 2025 - The report was signed by David H. Mack, Ph.D., President, Chief Executive Officer, and Director, and Michael Carulli, Chief Financial Officer, on May 9, 2025[173][174]