Intellia Therapeutics(NTLA) - 2025 Q4 - Annual Report

Financial Performance - Collaboration revenue increased by $9.8 million to $67.7 million for the year ended December 31, 2025, compared to $57.9 million in 2024, driven by a $23.7 million increase in cost reimbursements from Regeneron and $9.0 million from the termination of a collaboration agreement with SparingVision [425]. - Net loss improved by $106.3 million to $412.7 million in 2025 from $519.0 million in 2024 [424]. - Total other income increased by $13.1 million to $28.3 million in 2025, primarily due to a $31.7 million change in unrealized losses on investments [429]. Expenses - Research and development expenses decreased by $77.5 million to $388.9 million in 2025, a 17% reduction from $466.3 million in 2024, primarily due to a decrease in employee-related expenses and stock-based compensation [426]. - General and administrative expenses decreased by $6.0 million to $119.8 million in 2025, compared to $125.8 million in 2024, mainly due to reduced stock-based compensation [428]. - Research and development expenses for 2026 are expected to decrease as resources are focused on high-value programs, although this will be offset by increased expenses related to commercial infrastructure [434]. - Stock-based compensation expense for the year ended December 31, 2025, included $80.2 million, reflecting the company's share-based compensation programs [439]. Cash Flow - Net cash used in operating activities for the year ended December 31, 2025, was $394.7 million, primarily due to a net loss of $412.7 million [439]. - Net cash provided by investing activities for the year ended December 31, 2025, was $228.0 million, mainly from $229.2 million in matured marketable securities [441]. - Net cash provided by financing activities for the year ended December 31, 2025, was $131.5 million, including $128.2 million from at-the-market offerings [443]. - Net cash used in operating activities for the year ended December 31, 2024, was $348.9 million, primarily due to a net loss of $519.0 million [440]. Assets and Funding - As of December 31, 2025, the company had $605.1 million in cash, cash equivalents, and marketable securities [431]. - As of December 31, 2025, the company had cash equivalents, restricted cash equivalents, and marketable securities totaling $541.9 million [464]. - The company expects to fund ongoing operating expenses and capital requirements into the second half of 2027 based on current cash and collaboration funding [436]. - The company has issued 11,790,624 shares of common stock in 2025 under its at-the-market offering program, generating net proceeds of $128.2 million [432]. Lease Commitments - Total undiscounted future minimum lease payments for property leases that have commenced as of December 31, 2025, were $111.2 million [446]. - The company has committed to making at least $195.1 million in rental payments over a lease term of 147 months for a new office and laboratory space starting in the second half of 2026 [447]. Market Conditions - The company does not believe that an immediate change of 100 basis points would materially affect the fair market value of its investment portfolio [465]. - Inflation did not have a material effect on the company's results of operations during the year ended December 31, 2025 [466]. Future Developments - The planned commercial launch of lonvoguran ziclumeran (lonvo-z) is anticipated in the first half of 2027, with both lonvo-z and nexiguran ziclumeran (nex-z) currently in Phase 3 clinical development [418].