Y-mAbs(YMAB) - 2025 Q2 - Quarterly Results

Report Overview and Key Developments Y-mAbs reported strong Q2 2025 revenues and announced its acquisition by SERB Pharmaceuticals for $412.0 million Second Quarter 2025 Highlights Y-mAbs exceeded Q2 2025 revenue guidance with $19.5 million and announced a $412.0 million acquisition by SERB Pharmaceuticals Key Financial Metrics | Metric | Value | | :--- | :--- | | Total Revenues Q2 2025 | $19.5 million | | Cash and Cash Equivalents (as of June 30, 2025) | $62.3 million | - SERB Pharmaceuticals has agreed to acquire Y-mAbs in a transaction valued at $412.0 million, which is expected to close by the fourth quarter of 2025[7][8] - Due to the pending acquisition, Y-mAbs will not host a conference call to discuss its Q2 2025 financial results[7] Acquisition by SERB Pharmaceuticals SERB Pharmaceuticals will acquire Y-mAbs for $412.0 million, or $8.60 per share, representing a 105% premium, expected to close by Q4 2025 - SERB Pharmaceuticals will acquire Y-mAbs for $8.60 per share in cash, representing a total equity value of $412.0 million[8] - The offer price represents a 105% premium to Y-mAbs' closing share price on the last full trading day before the announcement[8] - The acquisition is expected to be completed by the fourth quarter of 2025, contingent upon the successful completion of a tender offer and satisfaction of other customary conditions, including HSR Act clearance[8] Financial Results The company's Q2 2025 financial performance showed decreased revenues but improved net loss due to reduced operating expenses Revenues Total revenues for Q2 2025 decreased by 14% to $19.5 million, primarily due to a decline in DANYELZA® net product revenues Revenue Breakdown | Revenue Breakdown (in millions) | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | $19.5 | $22.8 | -14% | | DANYELZA Net Product Revenues | $19.0 | $22.8 | -17% | | - U.S. DANYELZA | $14.3 | $15.2 (calculated) | -6% | | - Ex-U.S. DANYELZA | $4.7 | $7.6 (calculated) | -38% | | License Revenue | $0.5 | $0.0 | N/A | - The decline in U.S. DANYELZA revenue was attributed to lower patient volume resulting from enrollments in clinical studies and increased competition[6] - Ex-U.S. revenue decreased due to the absence of large stocking orders from Western Europe and Eastern Asia that occurred in 2024, partially offset by a $2.0 million increase in sales in Western Asia following a new program launch in Turkey[10] Cost of Goods Sold and Gross Profit Cost of goods sold slightly decreased, resulting in a gross profit of $16.8 million and a stable gross margin of 86% for Q2 2025 Cost of Goods Sold and Gross Profit | Metric (in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Cost of Goods Sold | $2.7 | $3.0 | | Gross Profit | $16.8 | $19.8 | | Gross Margin | 86% | 87% | Operating Costs and Expenses Total operating expenses significantly decreased in Q2 2025, driven by lower R&D and SG&A costs, particularly reduced litigation expenses Research and Development (R&D) R&D expenses decreased by $1.2 million in Q2 2025, mainly due to reduced personnel and stock-based compensation costs from business realignment R&D Expenses | Expense (in millions) | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | R&D Expenses | $11.1 | $12.3 | -$1.2 | - The primary driver for the decrease in R&D expenses was a $0.9 million reduction in personnel and stock-based compensation costs related to the January 2025 business realignment[16] Selling, General, and Administrative (SG&A) SG&A expenses saw a substantial $5.9 million decrease in Q2 2025, primarily due to the absence of prior-year litigation settlements and lower legal costs SG&A Expenses | Expense (in millions) | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | SG&A Expenses | $11.3 | $17.2 | -$5.9 | - The decrease was mainly attributable to a $3.8 million impact from litigation settlements in Q2 2024 and a $1.7 million reduction in legal expenses[18][20] Other Income and Net Loss Y-mAbs significantly improved its net loss to $3.2 million in Q2 2025, driven by lower operating expenses and foreign currency gains Other Income and Net Loss | Metric (in millions, except per share) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Interest and Other Income | $2.3 | $0.6 | | Net Loss | $(3.2) | $(9.2) | | Net Loss Per Share (basic and diluted) | $(0.07) | $(0.21) | - The improvement in net loss was driven by the absence of $3.8 million in litigation settlements from Q2 2024 and a favorable impact of $2.0 million from foreign currency transaction gains in Q2 2025[23] Cash Position As of June 30, 2025, Y-mAbs maintained a cash and cash equivalents balance of $62.3 million, reflecting capital efficiency - The company's cash and cash equivalents balance was $62.3 million as of June 30, 2025[24] Consolidated Financial Statements The consolidated financial statements provide a detailed overview of the company's balance sheet, income, and cash flow positions Consolidated Balance Sheets As of June 30, 2025, total assets were $117.2 million, with cash and cash equivalents at $62.3 million, and total stockholders' equity at $87.5 million Consolidated Balance Sheet Summary | Balance Sheet Items (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $62,293 | $67,234 | | Total current assets | $91,787 | $98,509 | | TOTAL ASSETS | $117,211 | $119,904 | | Total current liabilities | $22,945 | $23,698 | | TOTAL LIABILITIES | $29,718 | $27,900 | | TOTAL STOCKHOLDERS' EQUITY | $87,493 | $92,004 | Consolidated Statements of Net Loss and Comprehensive Loss For Q2 2025, total revenues were $19.5 million, resulting in a net loss of $3.2 million, an improvement from the prior year Consolidated Statements of Net Loss | Income Statement (in thousands) | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | Total revenues | $19,525 | $40,429 | | Gross profit | $16,863 | $34,766 | | Loss from operations | $(5,604) | $(12,147) | | NET LOSS | $(3,239) | $(8,436) | Consolidated Statements of Cash Flows Net cash used in operating activities for the first half of 2025 was $5.3 million, contributing to a $4.9 million net decrease in cash Consolidated Statements of Cash Flows | Cash Flow Activities (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(5,260) | $(3,179) | | Net cash used in investing activities | $(127) | $0 | | Net cash provided by financing activities | $446 | $2,346 | | Net decrease in cash and cash equivalents | $(4,941) | $(831) | Segment Information Segment analysis reveals DANYELZA's operational profitability and the RIT segment's ongoing investment in research and development Segment Performance Analysis The DANYELZA segment generated $7.5 million in operating profit in Q2 2025, while the pre-revenue RIT segment incurred a $5.7 million operating loss Segment Profit/(Loss) from Operations (Q2) | Segment Profit/(Loss) from Operations (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | DANYELZA | $7,504 | $9,394 | | RIT (Radioimmunotherapy) | $(5,656) | $(5,835) | Segment Profit/(Loss) from Operations (H1) | Segment Profit/(Loss) from Operations (in thousands) | H1 2025 | H1 2024 | | :--- | :--- | :--- | | DANYELZA | $16,325 | $18,070 | | RIT (Radioimmunotherapy) | $(11,763) | $(11,876) |