Tango Therapeutics(US:TNGX)2025-11-04 14:09Financial Overview - Tango Therapeutics has raised an aggregate of $166.9 million from preferred shares, $342.1 million from a Business Combination, $237.1 million from a collaboration with Gilead, and $348.0 million from various financing transactions[118]. - As of September 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $152.8 million, which, along with $212.0 million from a recent offering, is expected to fund operations into 2028[119]. - For the nine months ended September 30, 2025, the company reported a net loss of $62.8 million, compared to a net loss of $92.6 million for the same period in 2024, with an accumulated deficit of $564.4 million[119]. - The company has not generated any revenue from product sales and does not expect to do so in the next several years, relying on equity offerings and collaborations for funding[120]. - Total revenue for the nine months ended September 30, 2025, was $62.4 million, up from $25.9 million in 2024, marking a $36.5 million increase[155]. Collaboration Revenue - Tango Therapeutics recognized $53.8 million in collaboration revenue for the three months ended September 30, 2025, compared to $11.6 million for the same period in 2024[128]. - The total collaboration revenue recognized from the Gilead agreements as of September 30, 2025, amounts to $199.0 million, which includes upfront and research option-extension payments[127]. - Collaboration revenue increased to $53.8 million for the three months ended September 30, 2025, compared to $11.6 million for the same period in 2024, reflecting a $42.2 million increase[148]. Clinical Trials and Product Development - The ongoing Phase 1/2 clinical trial of vopimetostat showed an objective response rate (ORR) of 27% and a median progression-free survival (mPFS) of 6.4 months across all MTAP-deleted tumor types[110]. - In the cohort of 29 patients with second-line MTAP-deleted pancreatic cancer, the mPFS was 7.2 months, and the ORR was 25%, significantly higher than historical chemotherapy studies[110]. - TNG260 demonstrated a median progression-free survival of 27 weeks in patients with STK11-mutant, locally advanced or metastatic solid tumors, more than double the standard of care[116]. - The company plans to initiate a pivotal trial in second-line pancreatic cancer in 2026, supported by newly engaged consultants with significant oncology expertise[112]. Expenses and Income - Research and development expenses decreased to $30.8 million for the three months ended September 30, 2025, down from $33.3 million in 2024, a reduction of $2.5 million[149]. - Total operating expenses for the three months ended September 30, 2025, were $39.7 million, a decrease of $4.7 million from $44.5 million in 2024[147]. - Net income for the three months ended September 30, 2025, was $15.9 million, compared to a net loss of $29.2 million in 2024, an improvement of $45.1 million[147]. - Research and development expenses for the nine months ended September 30, 2025, totaled $100.1 million, down from $110.0 million in 2024, a decrease of $9.9 million[157]. - General and administrative expenses for the nine months ended September 30, 2025, were $31.7 million, a slight decrease from $32.7 million in 2024[158]. Cash Flow and Financing Activities - Net cash used in operating activities increased to $109.2 million for the nine months ended September 30, 2025, compared to $94.9 million for the same period in 2024, primarily due to a decrease in operating assets and liabilities[166]. - Net cash provided by investing activities rose to $94.9 million for the nine months ended September 30, 2025, from $34.1 million in 2024, mainly due to a decrease in purchases of marketable securities[167]. - Net cash provided by financing activities was $3.1 million for the nine months ended September 30, 2025, a significant decrease from $46.7 million in the same period of 2024[168]. - The company expects existing cash and net proceeds from the recent offering to fund operating expenses and capital expenditures into 2028, although this estimate is based on assumptions that may prove incorrect[164]. Tax and Other Income - Provision for income taxes was $0.1 million for the nine months ended September 30, 2025, compared to $0.2 million for the same period in 2024, indicating an insignificant tax provision in both periods[161]. - Other income, net decreased to $2.7 million for the nine months ended September 30, 2025, from $6.1 million in the same period of 2024, attributed to lower accretion from investments purchased at a discount[160]. - Interest income for the three months ended September 30, 2025, was $1.1 million, down from $1.8 million in 2024, a decrease of $0.7 million[151]. Accounting and Market Risks - Revenue recognition is based on ASC Topic 606, with revenue recognized when control of promised goods or services is transferred to a customer[175]. - The company estimates accrued research and development expenses based on the level of service performed and associated costs incurred, with adjustments made as necessary[183]. - The company records expenses related to research and development activities based on estimates of services received, considering factors such as progress towards completion and invoicing to date[185]. - There have been no material adjustments to prior estimates of accrued research and development expenses to date[185]. - Recently adopted accounting pronouncements that may impact financial position and cash flows are disclosed in the Quarterly Report on Form 10-Q and the Annual Report on Form 10-K[186]. - There were no material changes to market risks from those described in the Annual Report on Form 10-K for the year ended December 31, 2024[187].