PMV Pharmaceuticals(PMVP) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements (Unaudited) This section presents the unaudited condensed consolidated financial statements, including the balance sheets, statements of operations and comprehensive loss, statements of stockholders' equity, and statements of cash flows, along with detailed notes explaining the company's financial position, performance, and accounting policies Condensed Consolidated Balance Sheets (Unaudited) This statement provides a snapshot of the company's financial position, detailing assets, liabilities, and stockholders' equity at specific points in time Condensed Consolidated Balance Sheet Data | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Assets | | | | Cash and cash equivalents | $44,127 | $40,876 | | Marketable securities, current | $98,147 | $128,578 | | Prepaid expenses and other current assets | $3,037 | $6,204 | | Total current assets | $145,311 | $175,658 | | Property and equipment, net | $287 | $409 | | Marketable securities, noncurrent | $6,032 | $13,843 | | Right-of-use assets | $977 | $1,143 | | Other assets | $248 | $235 | | Total assets | $152,855 | $191,288 | | Liabilities and Stockholders' Equity | | | | Accounts payable | $2,598 | $6,579 | | Accrued expenses | $8,632 | $7,439 | | Operating lease liabilities, current | $377 | $352 | | Total current liabilities | $11,607 | $14,370 | | Operating lease liabilities, noncurrent | $643 | $838 | | Total liabilities | $12,250 | $15,208 | | Additional paid-in capital | $547,942 | $544,653 | | Accumulated deficit | $(407,358) | $(368,712) | | Accumulated other comprehensive income | $21 | $139 | | Total stockholders' equity | $140,605 | $176,080 | | Total liabilities and stockholders' equity | $152,855 | $191,288 | Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) This statement outlines the company's financial performance over specific periods, showing revenues, expenses, and the resulting net loss Condensed Consolidated Statements of Operations Data | Operating Expenses (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Research and development | $18,400 | $14,628 | $35,841 | $27,813 | | General and administrative | $4,479 | $5,542 | $8,600 | $10,578 | | Total operating expenses | $22,879 | $20,170 | $44,441 | $38,391 | | Loss from operations | $(22,879) | $(20,170) | $(44,441) | $(38,391) | | Interest income, net | $1,690 | $2,801 | $3,625 | $5,753 | | Other expense, net | $(16) | $(17) | $(21) | $(18) | | Total other income | $1,674 | $2,784 | $3,604 | $5,735 | | Loss before income taxes | $(21,205) | $(17,386) | $(40,837) | $(32,656) | | Provision (benefit) for income taxes | $5 | $(16,173) | $(2,191) | $(16,173) | | Net loss | $(21,210) | $(1,213) | $(38,646) | $(16,483) | | Net loss per share -- basic and diluted | $(0.41) | $(0.02) | $(0.74) | $(0.32) | | Weighted-average common shares outstanding | 52,010,827 | 51,478,751 | 51,981,607 | 51,462,307 | Condensed Consolidated Statements of Stockholders' Equity (Unaudited) This statement details the changes in the company's equity components, including additional paid-in capital, accumulated deficit, and comprehensive income, over specific periods - Total stockholders' equity decreased from $176,080 thousand at December 31, 2024, to $140,605 thousand at June 30, 2025, primarily due to a net loss of $38,646 thousand for the six months ended June 30, 2025[22] Condensed Consolidated Statements of Cash Flows (Unaudited) This statement summarizes the cash inflows and outflows from operating, investing, and financing activities over specific periods Condensed Consolidated Statements of Cash Flows Data | Cash Flows (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------- | :------------------------------- | :------------------------------- | | Net cash used in operating activities | $(36,568) | $(17,782) | | Net cash provided by (used in) investing activities | $39,700 | $28,489 | | Net cash provided by financing activities | $113 | $141 | | Impact of exchange rates on cash | $6 | $(28) | | Net increase (decrease) in cash and cash equivalents | $3,251 | $10,820 | | Cash, cash equivalents, and restricted cash - beginning of period | $40,876 | $38,528 | | Cash, cash equivalents, and restricted cash - end of period | $44,127 | $49,348 | Notes to Unaudited Condensed Consolidated Financial Statements This section provides detailed explanations and additional information supporting the unaudited condensed consolidated financial statements 1. Formation and Business of the Company This note describes the company's core business as a precision oncology firm and its financial viability - PMV Pharmaceuticals, Inc. is a precision oncology company focused on discovering and developing small molecule, tumor-agnostic therapies targeting p53[28] - The Company has incurred net losses and negative cash flows from operations since inception, with a net loss of $38,646 thousand for the six months ended June 30, 2025, and an accumulated deficit of $407,358 thousand[30] - As of June 30, 2025, cash, cash equivalents, and marketable securities totaled $148,306 thousand, which management believes is adequate to fund operations for the next 12 months[30] 2. Summary of Significant Accounting Policies This note outlines the accounting principles and methods used in preparing the financial statements - The unaudited condensed consolidated financial statements are prepared in accordance with GAAP for interim financial information and include normal recurring adjustments[32] - The Company adopted FASB ASU 2023-07, Segment Reporting, on December 31, 2024, which requires enhanced interim and annual segment disclosures[53] - New accounting pronouncements, ASU No. 2023-09 (Income Taxes) and ASU 2024-03 (Expense Disaggregation), are not yet adopted but are being evaluated for potential impact[54][55] 3. Fair Value Measurements This note details the valuation methodologies and classifications for the company's financial assets Fair Value Measurements of Financial Assets | Financial Assets (in thousands) | Carrying Amount (June 30, 2025) | Fair Value (June 30, 2025) | Level 1 (June 30, 2025) | Level 2 (June 30, 2025) | | :------------------------------ | :------------------------------ | :------------------------- | :---------------------- | :---------------------- | | Money market funds | $34,068 | $34,068 | $34,068 | $— | | Corporate securities | $34,207 | $34,197 | $— | $34,197 | | Government securities | $79,917 | $79,944 | $42,375 | $37,569 | | Total financial assets | $148,192 | $148,209 | $76,443 | $71,766 | - As of June 30, 2025, cash equivalents and marketable securities totaled $148,306 thousand, primarily consisting of money market funds, corporate securities, and government securities[30][59][60] 4. Property and Equipment, Net This note provides information on the company's fixed assets, including their cost, accumulated depreciation, and net book value Property and Equipment, Net Breakdown | Category (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :---------------- | | Machinery & equipment | $1,447 | $1,782 | | Computers | $13 | $13 | | Furniture & fixtures | $23 | $23 | | Leasehold improvements | $66 | $51 | | Total property and equipment | $1,549 | $1,869 | | Less: Accumulated depreciation | $(1,262) | $(1,460) | | Property and equipment, net | $287 | $409 | - Depreciation expense for the three months ended June 30, 2025, was $32 thousand, a decrease from $372 thousand in the prior year, and for the six months, it was $69 thousand, down from $734 thousand[62] 5. Accrued Expenses This note breaks down the components of the company's accrued liabilities Accrued Expenses Breakdown | Accrued Expense (in thousands) | June 30, 2025 | December 31, 2024 | | :----------------------------- | :------------ | :---------------- | | Accrued compensation | $3,056 | $5,005 | | Accrued research and development costs | $5,450 | $2,177 | | Accrued legal and professional services | $126 | $257 | | Total | $8,632 | $7,439 | 6. Commitments and Contingencies This note describes the company's contractual obligations and potential future liabilities, particularly related to leases - The Company terminated the One Research Way Lease in October 2024, resulting in a $4,850 thousand gain on derecognition of lease-related assets/liabilities and a $9,454 thousand write-off of leasehold improvements, leading to a net loss of $6,024 thousand in G&A[67] - New subleases for headquarters (400 Alexander Park Drive) and laboratory space (311 Pennington Rocky Hill Road) commenced in October and September 2024, respectively, with total future payments of $789 thousand and $768 thousand[68][69] Operating Lease Costs | Lease Cost (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Operating lease cost | $118 | $355 | $235 | $709 | | Variable lease cost | $18 | $228 | $34 | $361 | | Total lease cost | $136 | $583 | $269 | $1,070 | 7. Stockholders' Equity This note details the changes in the company's common stock and equity programs - As of June 30, 2025, there were 52,993,238 shares of common stock issued and outstanding, compared to 51,935,134 shares at December 31, 2024[74] - The Company has an At-The-Market (ATM) Program with approximately $113.8 million remaining in gross proceeds available for future common stock issuances as of June 30, 2025[77] 8. Stock Plan This note provides information on the company's equity incentive plans and stock-based compensation expenses - The 2020 Equity Incentive Plan had 4,338,125 shares available for issuance as of June 30, 2025, after an increase of 2,596,638 shares effective January 1, 2025[78] - An Option Exchange completed in August 2024 resulted in the grant of new options covering 2,786,691 shares with a new vesting schedule, leading to incremental stock-based compensation expense of $1,370 thousand[82] Stock-based Compensation Expense | Stock-based Compensation (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Stock options | $1,341 | $1,856 | $2,516 | $4,069 | | Restricted stock units | $281 | $856 | $559 | $1,199 | | Employee stock purchase plan | $46 | $55 | $101 | $109 | | Total stock-based compensation | $1,668 | $2,767 | $3,176 | $5,377 | 9. Income Taxes This note explains the company's income tax provisions, effective tax rates, and deferred tax assets and liabilities - The effective tax rate was 0% for the three months ended June 30, 2025, compared to 92.6% for the same period in 2024[91] - The Company recorded a full valuation allowance on federal and state net deferred tax assets due to not forecasting a taxable position in the near future[92] - For the six months ended June 30, 2025, the Company received an income tax benefit of $2,196 thousand from the sale of New Jersey NOL carryforwards and R&D tax credits, reaching the program's sale limit[93] 10. Net Loss per Share This note details the calculation of basic and diluted net loss per share and the common stock equivalents excluded from dilution Common Stock Equivalents Excluded from Diluted EPS | Common Stock Equivalents Excluded from Diluted EPS | As of June 30, 2025 | As of June 30, 2024 | | :----------------------------------------------- | :------------------ | :------------------ | | Options to purchase common stock | 12,211,331 | 8,742,868 | | Unvested restricted stock units | — | 1,136,411 | | Expected shares to be purchased under 2020 ESPP | 6,845 | 21,744 | | Total | 12,218,176 | 9,901,023 | 11. Related Parties This note discloses transactions and relationships with related parties - Total consulting fees paid to three board members were $50 thousand for the three months ended June 30, 2025, and $100 thousand for the six months ended June 30, 2025[96] 12. Restructuring This note describes the company's restructuring plan, including workforce reductions and associated costs - In January 2024, the Company implemented a restructuring plan, reducing its workforce by approximately 30% to streamline operations and preserve capital[97] - A non-recurring charge of $597 thousand, primarily for employee severance and benefits, was incurred and paid in full during fiscal year 2024, recorded in research and development expenses[98] 13. Segment Information This note provides financial information about the company's operating segments and the breakdown of expenses - The Company operates and manages its business as a single operating and reporting segment, with the CEO serving as the Chief Operating Decision-Maker (CODM)[100] Operating Expenses by Category | Expense Category (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------ | :------------------------------- | :------------------------------- | | Research and Development | | | | Research | $2,571 | $2,627 | | Development | $24,875 | $15,528 | | Personnel related | $7,018 | $7,422 | | Stock-based compensation | $1,377 | $2,236 | | Total research and development | $35,841 | $27,813 | | General and Administration | | | | Personnel related | $2,896 | $2,744 | | Stock-based compensation | $1,799 | $3,139 | | External | $3,905 | $4,695 | | Total general and administrative | $8,600 | $10,578 | | Loss from Operations | $44,441 | $38,391 | 14. Subsequent Event This note discloses events that occurred after the balance sheet date but before the financial statements were issued - The Company evaluated subsequent events through August 7, 2025, and determined there were no events requiring adjustment or disclosure in the financial statements[103] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on the company's financial condition and operational results, highlighting its strategic focus on precision oncology, the progress of its lead product candidate, rezatapopt, through clinical trials, and the financial performance for the three and six months ended June 30, 2025, compared to the prior year. It also discusses liquidity, capital resources, and critical accounting policies Overview This section provides a high-level summary of the company's business, strategic focus, and recent financial performance - PMV Pharmaceuticals is a precision oncology company developing small molecule, tumor-agnostic therapies targeting p53 mutations, found in approximately half of all cancers[108] - The lead product candidate, rezatapopt, is in a pivotal Phase 2 monotherapy portion of the PYNNACLE clinical trial, with interim data expected by early September 2025[109] - The Company incurred net losses of $21.2 million and $38.6 million for the three and six months ended June 30, 2025, respectively, with an accumulated deficit of $407.4 million[109] Components of Results of Operations This section explains the key drivers and categories of the company's financial results, including revenue and expense recognition - The Company has not generated any revenue from product sales to date and does not expect to in the foreseeable future[114] - Research and development expenses, which are expensed as incurred and not allocated by product candidate, are expected to increase significantly as product candidates advance through clinical trials[115][116][117] - General and administrative expenses, including personnel and professional services, are also expected to increase with the advancement of product candidates and public company obligations[118] Results of Operations This section analyzes the company's financial performance over specific periods, comparing current results to prior periods Comparison of the Three Months ended June 30, 2025 and 2024 This section compares the company's financial performance for the three-month periods ended June 30, 2025, and 2024 Operating Expenses and Net Loss (Three Months) | Operating Expenses (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change | | :-------------------------------- | :------------------------------- | :------------------------------- | :----- | | Research and development | $18,400 | $14,628 | $3,772 | | General and administrative | $4,479 | $5,542 | $(1,063) | | Total operating expenses | $22,879 | $20,170 | $2,709 | | Loss from operations | $(22,879) | $(20,170) | $(2,709) | | Interest income, net | $1,690 | $2,801 | $(1,111) | | Other expense, net | $(16) | $(17) | $1 | | Total other income | $1,674 | $2,784 | $(1,110) | | Loss before income taxes | $(21,205) | $(17,386) | $(3,819) | | Provision (benefit) for income taxes | $5 | $(16,173) | $16,178 | | Net loss | $(21,210) | $(1,213) | $(19,997) | - Research and development expenses increased by $3.8 million, primarily due to higher development and personnel-related expenses for advancing rezatapopt in Phase 2 clinical trials, offset by decreased research and stock-based compensation expenses[123][126] - General and administrative expenses decreased by $1.0 million, mainly due to lower personnel expenses (stock-based compensation), reduced facility and equipment expenses from lease expirations, and decreased director and officer insurance fees[123] - Net interest income decreased by $1.1 million due to lower interest rates on cash and marketable securities[124] Comparison of the Six Months ended June 30, 2025 and 2024 This section compares the company's financial performance for the six-month periods ended June 30, 2025, and 2024 Operating Expenses and Net Loss (Six Months) | Operating Expenses (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change | | :-------------------------------- | :------------------------------- | :------------------------------- | :----- | | Research and development | $35,841 | $27,813 | $8,028 | | General and administrative | $8,600 | $10,578 | $(1,978) | | Total operating expenses | $44,441 | $38,391 | $6,050 | | Loss from operations | $(44,441) | $(38,391) | $(6,050) | | Interest income, net | $3,625 | $5,753 | $(2,128) | | Other expense, net | $(21) | $(18) | $(3) | | Total other income | $3,604 | $5,735 | $(2,131) | | Loss before income taxes | $(40,837) | $(32,656) | $(8,181) | | Provision (benefit) for income taxes | $(2,191) | $(16,173) | $13,982 | | Net loss | $(38,646) | $(16,483) | $(22,163) | - Research and development expenses increased by $8.1 million, primarily driven by a $9.3 million increase in development expenses due to higher CRO costs for the Phase 2 clinical trial of rezatapopt, partially offset by a $1.3 million decrease in personnel-related costs and stock-based compensation[127][131] - General and administrative expenses decreased by $2.0 million, mainly due to a $1.2 million decrease in personnel expenses (headcount reduction) and a $0.7 million decrease in facility and equipment expenses following the termination of the One Research Way Lease[128] - Interest income, net, decreased by $2.2 million due to decreased interest rates on cash and marketable securities[129] - The Company recognized a $2.2 million income tax benefit from the New Jersey Technology Business Tax Certificate Program for NOL and R&D tax credit sales, reaching the program's limit as of March 31, 2025[130] Liquidity and Capital Resources This section discusses the company's ability to meet its short-term and long-term financial obligations and its sources of funding Liquidity and Capital Resources Summary | Financial Metric (in thousands) | As of June 30, 2025 | As of December 31, 2024 | Change | | :------------------------------ | :------------------ | :---------------------- | :----- | | Cash and cash equivalents | $44,127 | $40,876 | $3,251 | | Marketable securities – current | $98,147 | $128,578 | $(30,431) | | Marketable securities – noncurrent | $6,032 | $13,843 | $(7,811) | | Total financial assets | $148,306 | $183,297 | $(34,991) | | Current assets | $145,311 | $175,658 | $(30,347) | | Current liabilities | $11,607 | $14,370 | $(2,763) | | Total working capital | $133,704 | $161,288 | $(27,584) | - As of June 30, 2025, the Company had $148.3 million in cash, cash equivalents, and marketable securities, and an accumulated deficit of $407.4 million[134] - The Company has approximately $113.8 million remaining under its At-The-Market (ATM) equity offering program for future common stock issuances[135] - Based on current plans, existing cash, cash equivalents, and marketable securities are expected to fund operations until the end of 2026[140] Cash Flows This section analyzes the company's cash generation and usage from operating, investing, and financing activities Cash Flow Summary | Cash Flows (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------- | :------------------------------- | :------------------------------- | | Cash used in operating activities | $(36,568) | $(17,782) | | Cash provided by (used in) investing activities | $39,700 | $28,489 | | Cash provided by financing activities | $113 | $141 | | Impact of exchange rates on cash | $6 | $(28) | | Net increase (decrease) in cash and cash equivalents | $3,251 | $10,820 | - Net cash used in operating activities increased to $36.6 million for the six months ended June 30, 2025, from $17.8 million in the prior year, primarily due to a higher net loss[144][145] - Net cash provided by investing activities increased to $39.7 million for the six months ended June 30, 2025, from $28.5 million in the prior year, driven by maturities of marketable securities exceeding purchases[146][147] Critical Accounting Policies and Estimates This section highlights the accounting policies that require significant judgment and the use of estimates - Critical accounting policies involve significant judgment and complexity, particularly regarding research and development costs, accrued R&D costs, and related prepaid expenses[151][152] - Estimates for accrued R&D expenses are based on reviewing open contracts, purchase orders, and communications with personnel, with periodic confirmations and adjustments[153] - No material changes to critical accounting policies were reported during the six-month period ended June 30, 2025, from those described in the 2024 Annual Report on Form 10-K[151] Item 3. Quantitative and Qualitative Disclosures About Market Risk This section outlines the company's exposure to market risks, primarily focusing on interest rate risk and noting the current immateriality of foreign currency exchange rate risk - The Company's primary market risk exposure relates to interest rate risks, given its holdings of $148.3 million in cash, cash equivalents, and marketable securities as of June 30, 2025[155][156] - Interest rate risk is considered immaterial due to the nature and amount of money-market funds and marketable securities[156] - Currently, the Company is not exposed to significant market risk from foreign currency exchange rates, though this may change with future international vendor contracts[157] Item 4. Controls and Procedures This section confirms the effectiveness of the company's disclosure controls and procedures and reports no material changes in internal control over financial reporting during the most recent fiscal quarter - 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 June 30, 2025[161] - There have been no material changes in the Company's internal control over financial reporting during the most recent fiscal quarter[162] PART II. OTHER INFORMATION Item 1. Legal Proceedings This section states that the company is not currently involved in any legal proceedings that are expected to have a material adverse effect on its business - The Company is not currently involved in any litigation or legal proceedings that are likely to have a material adverse effect[165] Item 1A. Risk Factors This section refers to previously disclosed risk factors and updates them with new information regarding potential impacts from changes in tax laws, such as the OBBB Act, and geopolitical tensions affecting manufacturing and supply chains, particularly in China - No material changes to risk factors were reported other than those described, which supplement the Annual Report on Form 10-K[166] - The recently enacted One Big Beautiful Bill Act (OBBB Act) permanently suspends the requirement to capitalize and amortize domestic R&D expenditures, allowing current deductions, with the full impact still being evaluated[167] - Increased tariffs and trade policy changes by the U.S. and China, including additional tariffs on imports from China and potential tariffs on pharmaceutical products, could materially adversely affect the Company's business, financial condition, and results of operations due to reliance on third-party manufacturers in China[168][169][170] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This section confirms that there were no unregistered sales of equity securities and no material changes in the planned use of proceeds from the company's initial public offering - There were no unregistered sales of equity securities during the period[171] - There has been no material change in the planned use of proceeds from the initial public offering[172] Item 3. Defaults Upon Senior Securities This section reports that the company has not defaulted on any senior securities - There were no defaults upon senior securities[174] Item 4. Mine Safety Disclosures This section states that mine safety disclosures are not applicable to the company's operations - Mine Safety Disclosures are not applicable to the Company[175] Item 5. Other Information This section indicates that there is no other information to report - No other information is applicable for this item[176] Item 6. Exhibits This section lists all exhibits filed as part of the Form 10-Q, including corporate documents, certifications, and XBRL data files - The report includes various exhibits such as the Amended and Restated Certificate of Incorporation, Bylaws, certifications from executive officers (31.1, 31.2, 32.1, 32.2), and Inline XBRL documents[178] Signatures This section contains the required signatures from the company's principal executive officer and principal financial and accounting officer, certifying the report - The report is signed by David H. Mack, Ph.D., President, Chief Executive Officer, and Director, and Michael Carulli, Chief Financial Officer, on August 7, 2025[183]