Repare Therapeutics(US:RPTX)2025-08-08 11:15PART I. FINANCIAL INFORMATION Financial Statements (Unaudited) This section presents Repare Therapeutics Inc.'s unaudited condensed consolidated financial statements, reflecting a corporate restructuring, asset sale, and changes in collaboration revenue Condensed Consolidated Balance Sheets Total assets decreased to $130.5 million from $176.5 million, primarily due to reduced cash and marketable securities, while liabilities and equity also declined Condensed Consolidated Balance Sheet Highlights (in thousands of U.S. dollars) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $130,493 | $176,506 | | Cash and cash equivalents | $67,656 | $84,717 | | Marketable securities | $41,816 | $68,074 | | Total Liabilities | $20,085 | $25,375 | | Total Shareholders' Equity | $110,408 | $151,131 | Condensed Consolidated Statements of Operations and Comprehensive Loss The company reported a Q2 2025 net loss of $16.7 million, an improvement from Q2 2024, driven by lower R&D expenses and a gain on asset sale, though H1 2025 net loss increased due to significantly lower collaboration revenue Statement of Operations Summary (in thousands of U.S. dollars) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Collaboration Revenue | $250 | $1,073 | $250 | $53,477 | | R&D Expenses | $14,283 | $30,075 | $34,553 | $63,045 | | G&A Expenses | $6,029 | $8,317 | $13,681 | $16,935 | | Restructuring Expenses | $3,384 | $— | $6,649 | $— | | Gain on sale of technology | $5,666 | $— | $5,666 | $— | | Net Loss | ($16,744) | ($34,774) | ($46,787) | ($21,612) | | Net Loss Per Share | ($0.39) | ($0.82) | ($1.09) | ($0.51) | Condensed Consolidated Statements of Cash Flows Net cash used in operating activities significantly increased to $45.5 million in H1 2025 due to a non-recurring milestone payment in 2024, while investing activities provided $28.2 million, resulting in a $17.1 million decrease in cash and cash equivalents Cash Flow Summary for Six Months Ended June 30 (in thousands of U.S. dollars) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($45,475) | ($18,582) | | Net cash provided by (used in) investing activities | $28,206 | ($13,198) | | Net cash provided by financing activities | $79 | $375 | | Net Decrease In Cash And Cash Equivalents | ($17,061) | ($31,448) | | Cash and cash equivalents at end of period | $67,656 | $79,820 | Notes to Unaudited Condensed Consolidated Financial Statements The notes detail key accounting events including the out-licensing of discovery platforms, significant restructuring expenses, the termination of the Roche collaboration, and a new licensing agreement for lunresertib - On May 1, 2025, the company out-licensed its early-stage discovery platforms to DCx Biotherapeutics, receiving $1.0 million upfront, $3.0 million in near-term payments, and a 9.99% equity stake, resulting in a recognized gain of $5.7 million3940 - The company incurred $6.6 million in restructuring costs for the six months ended June 30, 2025, related to a phased reorganization plan to reduce its workforce by approximately 75%, including severance benefits and accelerated depreciation5455 - The collaboration agreement with Roche was terminated effective May 7, 2024, leading to Repare regaining global rights for camonsertib and a significant year-over-year decrease in collaboration revenue for 20256870 - Subsequent to the quarter end, on July 15, 2025, the company entered into an exclusive worldwide licensing agreement with Debiopharm for its product candidate lunresertib, receiving a $10 million upfront payment and eligibility for future milestones and royalties95 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the company's strategic shift to focus on Phase 1 clinical programs, supported by restructuring, workforce reductions, and out-licensing, leading to a sharp decline in revenue and decreased R&D expenses, with a projected cash runway through 2027 Overview and Strategic Reprioritization The company has strategically re-prioritized to focus on advancing its Phase 1 clinical programs, RP-3467 and RP-1664, through significant workforce reduction and out-licensing of non-core assets - The company has realigned its clinical portfolio to focus on advancing its Phase 1 programs: RP-3467 (POLAR trial) and RP-1664 (LIONS trial)98 - A phased reorganization plan was approved to reduce the workforce by approximately 75% by Q4 2025 to conserve capital and align with the new strategic focus99 - Key strategic transactions include out-licensing discovery platforms to DCx and entering an exclusive licensing agreement with Debiopharm for lunresertib99 Results of Operations Q2 2025 revenue decreased to $0.3 million due to the terminated Roche agreement, while R&D expenses fell by $15.8 million; H1 2025 saw revenue plummet to $0.3 million, resulting in a net loss of $46.8 million Comparison of Operations for the Three Months Ended June 30 (in thousands of U.S. dollars) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $250 | $1,073 | ($823) | | R&D Expenses | $14,283 | $30,075 | ($15,792) | | G&A Expenses | $6,029 | $8,317 | ($2,288) | | Restructuring | $3,384 | $— | $3,384 | | Gain on sale of assets | $5,666 | $— | $5,666 | | Net Loss | ($16,744) | ($34,774) | $18,030 | Comparison of Operations for the Six Months Ended June 30 (in thousands of U.S. dollars) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $250 | $53,477 | ($53,227) | | R&D Expenses | $34,553 | $63,045 | ($28,492) | | G&A Expenses | $13,681 | $16,935 | ($3,254) | | Restructuring | $6,649 | $— | $6,649 | | Gain on sale of assets | $5,666 | $— | $5,666 | | Net Loss | ($46,787) | ($21,612) | ($25,175) | - The decrease in R&D expenses was primarily driven by lower personnel-related costs and reduced external costs for the lunresertib and camonsertib programs following trial terminations and strategic shifts144153 Liquidity and Capital Resources As of June 30, 2025, the company held $109.5 million in cash, cash equivalents, and marketable securities, projected to fund operations through 2027, despite $45.5 million net cash used in operating activities for H1 2025 - The company had cash, cash equivalents, and marketable securities of $109.5 million as of June 30, 2025107163 - Management projects its current cash position is sufficient to fund operations and capital expenditure requirements through 2027, factoring in recent restructuring and out-licensing transactions163 - Net cash used in operating activities for the six months ended June 30, 2025, was $45.5 million, compared to $18.6 million in the same period of 2024, with the increase primarily due to the non-recurrence of a $40.0 million milestone payment from Roche received in 2024167168170 Quantitative and Qualitative Disclosures About Market Risk As a 'smaller reporting company,' Repare Therapeutics is exempt from providing quantitative and qualitative disclosures about market risk - As a 'smaller reporting company,' Repare Therapeutics is exempt from the requirement to provide information on market risk178 Controls and Procedures Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025180 - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting181 PART II. OTHER INFORMATION Legal Proceedings The company is not currently involved in any material legal proceedings and is unaware of any pending or threatened actions that could materially impact its business - As of the report date, the company is not involved in any material legal proceedings184 Risk Factors This section highlights new or updated risks, including potential adverse effects from international trade policies, impacts from enacted and future healthcare legislation, and changes to U.S. tax laws - The company identifies new risks related to international trade policies, particularly tariffs and sanctions affecting its global supply chain, with reliance on foreign manufacturers including those in China186187 - Updates to healthcare legislation, including the Inflation Reduction Act (IRA) and the newly enacted 'One Big Beautiful Bill Act' (OBBBA), could increase costs, affect drug pricing, and create difficulty in obtaining marketing approval190191192 - Changes to tax laws, such as the Tax Cuts and Jobs Act (TCJA) and the OBBBA, could materially affect the company's financial position, tax rates, and the complexity of tax compliance196197198 Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales or purchases of its equity securities during the period - There were no unregistered sales of equity securities or issuer purchases of equity securities in the reported period201 Other Information No directors or officers adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the second quarter of 2025 - No directors or officers adopted, terminated, or modified Rule 10b5-1 trading arrangements during the second quarter of 2025203 Exhibits This section lists filed exhibits, including an employment agreement, an amendment to the Bristol-Myers Squibb collaboration, and officer certifications - Exhibits filed include an employment agreement with Sandra Alves, the sixth amendment to the Bristol-Myers Squibb agreement, and officer certifications required by the Sarbanes-Oxley Act207