Agenus(US:AGEN)2025-11-10 22:12Financial Performance - Non-cash royalty revenue from GSK increased by $4.5 million to approximately $29.1 million for the three months ended September 30, 2025, compared to $24.7 million for the same period in 2024, due to increased net sales of GSK's vaccines containing the STIMULON QS-21 adjuvant [148]. - Non-cash royalty revenue related to GSK increased $2.5 million to approximately $77.5 million for the nine months ended September 30, 2025, from $75.0 million for the same period in 2024 [153]. - Cash and cash equivalents at September 30, 2025 were $3.5 million, with additional anticipated cash inflows of $91.0 million expected in the first quarter of 2026 [164]. Research and Development - Research and development expense decreased 43% to $23.6 million for the three months ended September 30, 2025, from $41.1 million for the same period in 2024 [149]. - Research and development expense decreased 41% to $71.8 million for the nine months ended September 30, 2025, from $121.8 million for the same period in 2024 [154]. - The company has a diverse pipeline supported by in-house capabilities, including cGMP manufacturing and clinical operations, to advance from target identification to clinical trials [131]. General and Administrative Expenses - General and administrative expenses decreased 37% to $10.9 million for the three months ended September 30, 2025, from $17.3 million for the same period in 2024 [150]. - General and administrative expenses decreased 17% to $42.1 million for the nine months ended September 30, 2025, from $50.9 million for the same period in 2024 [155]. Non-Operating Expenses - Non-operating expense increased to approximately $19.3 million for the three months ended September 30, 2025, from income of $19,000 for the same period in 2024 [151]. - Non-operating expense increased to approximately $19.6 million for the nine months ended September 30, 2025, from income of $6.1 million for the same period in 2024 [157]. Interest Expense - Interest expense, net decreased to approximately $13.2 million for the three months ended September 30, 2025, from $35.7 million for the same period in 2024 [152]. - Interest expense, net decreased to approximately $39.3 million for the nine months ended September 30, 2025, from $96.9 million for the same period in 2024 [158]. Collaborations and Agreements - The collaboration agreement with Incyte allows for potential milestone payments of up to $315 million plus royalties on future sales, although Incyte has terminated the OX40 program effective October 2023 [135]. - The license agreement with Merck includes potential milestone payments of up to $85 million for the ILT4 antibody, currently in a Phase 2 clinical trial [136]. - The company has entered into multiple collaborations, resulting in over a dozen antibody pre-clinical or clinical development programs with partners including BMS, Gilead, and Merck [134]. - The company received a non-refundable upfront payment of $200 million from BMS for the anti-TIGIT bispecific antibody program, AGEN1777, with additional milestones achieved in clinical trials [141]. - The company is eligible to receive approximately $49.4 million in potential development, regulatory, and commercial milestones from Merck after accounting for obligations under various agreements [143]. Strategic Initiatives - The company aims to expand its immuno-oncology portfolio through strategic partnerships and innovative therapies targeting CTLA-4 and PD-1 combined with novel immunomodulatory agents [131]. - The company launched SaponiQx in September 2021 to innovate in adjuvant discovery and vaccine design, focusing on saponin-based adjuvants [144]. Investment Policy - The investment policy aims to preserve principal, maintain liquidity for operating needs, and maximize yields [175]. - The investment policy prohibits investing in structured investment vehicles and asset-backed commercial paper [175]. - The company specifies credit quality standards for investments and limits credit exposure from any single issue, issuer, or type of investment [175]. - The company does not invest in derivative financial instruments, indicating no material market risk exposure from such instruments [175]. Interest Rate and Currency Exposure - There has been no material change to the company's interest rate exposure and approach toward interest rate and foreign currency exchange rate exposures [174].