Tango Therapeutics(TNGX) - 2025 Q2 - Quarterly Results

Executive Summary & Business Highlights This section provides an overview of the company's strategic direction, pipeline advancements, corporate developments, and upcoming key milestones CEO Commentary CEO Barbara Weber emphasized TNG462's potential as a best-in-class PRMT5 inhibitor for MTAP-del cancers, with efficacy data expected this year to inform a registrational study and ongoing combination trials - TNG462 is considered a potentially best-in-class PRMT5 inhibitor for MTAP-del pancreatic and lung cancers[2] - Efficacy and tolerability data from the TNG462 monotherapy Phase 1/2 study are expected later this year, which will guide the initiation of a registrational study in pancreatic cancer next year and development strategy for lung cancer[2] - Enrollment is ongoing for the TNG462 combination clinical trial with Revolution Medicines' RAS(ON) inhibitors, with promising preclinical data supporting its potential for RAS-mut, MTAP-del cancers[2] Pipeline Update Tango Therapeutics updated on key pipeline candidates TNG462, TNG456, and TNG260, detailing trial progress, data expectations, and proof-of-mechanism TNG462 This section details the clinical progress of TNG462, including its combination trial initiation, expected monotherapy data, and favorable tolerability profile - First patient treated in June in a combination trial (NCT06922591) with Revolution Medicines' RAS(ON) inhibitors (daraxonrasib and zoldonrasib)[3] - Clinical data update on the TNG462 Phase 1/2 monotherapy trial is expected in the second half of 2025[3] - TNG462 continues to be very well-tolerated at 250mg once-daily (QD) and below, consistent with a best-in-class profile[3] TNG456 This section outlines the initiation of the Phase 1/2 clinical trial for TNG456, focusing on its evaluation in glioblastoma - First patient treated in May with TNG456 in the dose escalation portion of the Phase 1/2 clinical trial (NCT06810544)[4] - The trial focuses on glioblastoma and is evaluating safety, pharmacokinetics, pharmacodynamics, and antitumor activity as a monotherapy[4] TNG260 This section highlights the establishment of TNG260's proof-of-mechanism and its ongoing dose expansion cohort in STK11-mut/RAS WT lung cancer - Proof-of-mechanism established based on pharmacodynamic data from on-treatment patient biopsies, showing favorable safety, tolerability, and pharmacokinetic profiles at the 80 mg QD expansion dose[7] - The dose expansion cohort of the TNG260 Phase 1/2 trial is ongoing in STK11-mut/RAS WT lung cancer, evaluating TNG260 in combination with pembrolizumab[7] - The Company plans to present TNG260 clinical data in the second half of 2025[7] Corporate Development Tango and Gilead mutually shortened their research collaboration term to five years, ending August 4, 2025, with no financial penalty, preserving all licensed programs, milestones, and royalties - Research term of collaboration and license agreement with Gilead truncated from seven to five years, concluding on August 4, 2025[6] - No financial penalty to Tango, no licensed programs returned, ongoing work at Gilead continues, and future milestones/royalties agreements remain in effect[6] - Remaining unrecognized deferred revenue of $53.8 million as of June 30, 2025, will be recognized in the third quarter of 2025[6] Upcoming Milestones Tango Therapeutics anticipates two key clinical data updates in the second half of 2025: one for TNG462 monotherapy Phase 1/2 clinical data and another for TNG260 clinical data - TNG462 monotherapy Phase 1/2 clinical data update expected in 2H 2025[8] - TNG260 clinical data expected in 2H 2025[8] Financial Results (Q2 2025) This section presents Tango Therapeutics' financial performance for the second quarter of 2025, covering cash position, revenue, operating expenses, and net loss Cash Position As of June 30, 2025, Tango Therapeutics held $180.8 million in cash, cash equivalents, and marketable securities, which is projected to fund operations into the first quarter of 2027 Cash, Cash Equivalents and Marketable Securities | As of Date | Amount (in millions USD) | | :------------ | :----------------------- | | June 30, 2025 | $180.8 | - Expected to fund operations into the first quarter of 2027[7] Revenue Analysis Tango Therapeutics experienced a significant decrease in total revenue for Q2 2025 and the six months ended June 30, 2025, primarily due to lower collaboration revenue and the absence of a one-time license revenue event that occurred in Q2 2024 Revenue Comparison (Q2 2025 vs. Q2 2024) | Revenue Type | Q2 2025 (in thousands USD) | Q2 2024 (in thousands USD) | Change (YoY) | | :-------------- | :------------------------- | :------------------------- | :----------- | | Collaboration | $3,181 | $7,775 | -$4,594 | | License | $0 | $12,100 | -$12,100 | | Total Revenue | $3,181 | $19,875 | -$16,694 | Revenue Comparison (Six Months Ended June 30, 2025 vs. 2024) | Revenue Type | 6M 2025 (in thousands USD) | 6M 2024 (in thousands USD) | Change (YoY) | | :-------------- | :------------------------- | :------------------------- | :----------- | | Collaboration | $8,573 | $14,246 | -$5,673 | | License | $0 | $12,100 | -$12,100 | | Total Revenue | $8,573 | $26,346 | -$17,773 | - Decrease in license revenue is primarily due to licensing a drug discovery program to Gilead for $12.0 million during the second quarter of 2024, which did not recur in 2025[10] Operating Expenses Research and development expenses decreased due to reduced spending on discontinued clinical programs and lower TNG260 and discovery program expenses, partially offset by increased investment in TNG462, TNG456, and TNG961. General and administrative expenses saw a slight increase, mainly due to higher personnel, facilities, and IT-related costs Operating Expenses Comparison (Q2 2025 vs. Q2 2024) | Expense Type | Q2 2025 (in thousands USD) | Q2 2024 (in thousands USD) | Change (YoY) | | :--------------------------- | :------------------------- | :------------------------- | :----------- | | Research and development | $32,807 | $38,654 | -$5,847 | | General and administrative | $11,341 | $10,773 | +$568 | | Total Operating Expenses | $44,148 | $49,427 | -$5,279 | Operating Expenses Comparison (Six Months Ended June 30, 2025 vs. 2024) | Expense Type | 6M 2025 (in thousands USD) | 6M 2024 (in thousands USD) | Change (YoY) | | :--------------------------- | :------------------------- | :------------------------- | :----------- | | Research and development | $69,249 | $76,719 | -$7,470 | | General and administrative | $22,821 | $21,434 | +$1,387 | | Total Operating Expenses | $92,070 | $98,153 | -$6,083 | - R&D decrease due to lower spend on discontinued clinical programs (TNG908 and TNG348) and reduced TNG260 and discovery program expenses, partially offset by increased spend for TNG462, TNG456, and TNG961[11] Net Loss and EPS Tango Therapeutics reported an increased net loss for