Repare Therapeutics(US:RPTX)2025-05-13 20:11PART I. FINANCIAL INFORMATION This section provides the unaudited condensed consolidated financial statements, management's discussion and analysis, and disclosures on market risk and controls Item 1. Financial Statements (Unaudited) This section presents the unaudited condensed consolidated financial statements, including balance sheets, statements of operations, and cash flows, highlighting the impact of the Roche collaboration termination and restructuring charges Condensed Consolidated Balance Sheets Total assets decreased to $144.0 million from $176.5 million due to reduced cash and marketable securities, while total liabilities also declined Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $140,343 | $171,149 | | Cash and cash equivalents | $84,455 | $84,717 | | Marketable securities | $39,773 | $68,074 | | Total Assets | $144,023 | $176,506 | | Total Current Liabilities | $18,926 | $25,287 | | Total Liabilities | $18,926 | $25,375 | | Total Shareholders' Equity | $125,097 | $151,131 | Condensed Consolidated Statements of Operations and Comprehensive Loss The company reported a $30.0 million net loss in Q1 2025, a significant shift from $13.2 million net income in Q1 2024, primarily due to zero collaboration revenue and a new restructuring charge Q1 2025 vs. Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Collaboration Revenue | $0 | $52,404 | | Research and Development | $20,270 | $32,970 | | General and Administrative | $7,652 | $8,618 | | Restructuring | $3,265 | $0 | | Total Operating Expenses | $31,187 | $41,588 | | (Loss) Income from Operations | ($31,187) | $10,816 | | Net (Loss) Income | ($30,043) | $13,162 | | Basic Net (Loss) Income per Share | ($0.71) | $0.31 | | Diluted Net (Loss) Income per Share | ($0.71) | $0.30 | Condensed Consolidated Statements of Cash Flows Net cash used in operating activities was $29.1 million in Q1 2025, a significant change from $11.9 million provided in Q1 2024, mainly due to the absence of a Roche milestone payment Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($29,133) | $11,932 | | Net cash provided by (used in) investing activities | $28,792 | ($20,316) | | Net cash provided by financing activities | $79 | $375 | | Net Decrease In Cash And Cash Equivalents | ($262) | ($8,051) | Notes to Unaudited Condensed Consolidated Financial Statements Key notes detail the financial impact of the Roche agreement termination, BMS revenue recognition, $3.3 million in restructuring costs, and the subsequent out-licensing of discovery platforms - In February 2024, Roche elected to terminate its collaboration agreement for camonsertib, with the termination becoming effective May 7, 2024. The company regained global rights to the product. Revenue of $49.8 million was recognized in Q1 2024 from this agreement, with no revenue in Q1 20255153 - In March 2024, Bristol-Myers Squibb exercised its final option under the BMS Agreement, leading to the recognition of $2.6 million in revenue in Q1 2024. No revenue was recognized from this agreement in Q1 20255859 - The company initiated a phased reorganization plan in Q1 2025 to reduce its workforce by approximately 75%. This resulted in restructuring costs of $3.3 million for the quarter, consisting of $2.3 million in severance benefits and $0.9 million in accelerated depreciation4445 - Subsequent to the quarter end, on May 1, 2025, the company out-licensed its early-stage discovery platforms to DCx Biotherapeutics. The deal includes $4.0 million in upfront and near-term payments, a 9.99% equity stake in DCx, and potential future milestones and royalties83 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the strategic shift to focus on Phase 1 clinical programs, a $52.4 million revenue decrease, and the sufficiency of $124.2 million cash to fund operations through 2027 Overview and Pipeline Repare re-prioritized its portfolio to focus on Phase 1 programs RP-3467 and RP-1664, involving a 75% workforce reduction and out-licensing discovery platforms, with key data expected in Q3 and Q4 2025 - Strategic re-prioritization announced in January 2025 to focus resources on Phase 1 clinical programs RP-3467 and RP-166487 - A phased workforce reduction of approximately 75% was approved in February 2025, with remaining employees focused on the prioritized clinical programs88 - Upcoming milestones include topline safety and efficacy data for RP-3467 in Q3-2025 and initial data for RP-1664 in Q4-202592100 - On May 1, 2025, the company out-licensed its early-stage discovery platforms to DCx Biotherapeutics100 Results of Operations Revenue declined to zero from $52.4 million due to collaboration terminations, while R&D expenses decreased by $12.7 million, and a new $3.3 million restructuring expense was recorded Comparison of Results of Operations (in thousands) | Line Item | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $0 | $52,404 | ($52,404) | | R&D Expenses | $20,270 | $32,970 | ($12,700) | | G&A Expenses | $7,652 | $8,618 | ($966) | | Restructuring | $3,265 | $0 | $3,265 | | (Loss) Income from Operations | ($31,187) | $10,816 | ($42,003) | - The $52.4 million decrease in revenue was due to a $49.8 million decrease from the terminated Roche agreement and a $2.6 million decrease from the concluded BMS agreement133 - The $12.7 million decrease in R&D expenses was driven by a $3.8 million decrease in lunresertib program costs, a $3.2 million decrease in personnel costs, and a $1.7 million decrease in camonsertib program costs132140 Liquidity and Capital Resources The company held $124.2 million in cash and equivalents, projected to fund operations through 2027, despite a $29.1 million net cash outflow from operations in Q1 2025 - Cash, cash equivalents, and marketable securities totaled $124.2 million as of March 31, 202596142 - The company believes its current cash position is sufficient to fund anticipated operating and capital expenditure requirements through 2027, after accounting for restructuring and other strategic changes96142 - Net cash used in operating activities was $29.1 million for Q1 2025, a $41.0 million decrease in cash flow compared to Q1 2024, primarily due to the $40.0 million milestone payment received from Roche in Q1 2024146149 Item 3. Quantitative and Qualitative Disclosures About Market Risk As a "smaller reporting company," the company is exempt from providing quantitative and qualitative disclosures about market risk - As a "smaller reporting company," Repare Therapeutics is exempt from providing quantitative and qualitative disclosures about market risk157 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 company's management, including the CEO/CFO, concluded that disclosure controls and procedures were effective as of March 31, 2025159 - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls160 PART II. OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, other information, and a list of exhibits filed with the report Item 1. Legal Proceedings The company is not currently a party to any material legal proceedings and is unaware of any pending or threatened actions - The company is not currently involved in any material legal proceedings163 Item 1A. Risk Factors No material changes to risk factors were noted, except for a new risk concerning adverse effects of international trade policies, tariffs, and supply chain disruptions - A new risk factor was added concerning the potential adverse impact of international trade policies, tariffs, and trade barriers on the business165 - The company relies on international suppliers, including from China, for active pharmaceutical ingredients (APIs) and precursor chemicals, making it vulnerable to trade tensions166 - Current or future tariffs could significantly increase manufacturing costs, raise R&D expenses, and cause delays to clinical development timelines166167 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds No unregistered sales of equity securities or issuer purchases of equity securities were reported during Q1 2025 - There were no unregistered sales of equity securities or issuer purchases of equity securities in Q1 2025169170 Item 5. Other Information No directors or officers adopted, terminated, or modified Rule 10b5-1 trading arrangements during Q1 2025 - No directors or officers adopted, terminated, or modified a Rule 10b5-1 trading plan during the first quarter of 2025173 Item 6. Exhibits This section lists exhibits filed with the Form 10-Q, including employment agreements, separation agreements, and required certifications - Exhibits filed include an amendment to an employment agreement, separation agreements, and CEO/CFO certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906177