Alpine Immune Sciences(ALPN) - 2021 Q3 - Quarterly Report

Financial Overview - As of September 30, 2021, the company has raised an aggregate of $378.2 million to fund operations, with $170.7 million from common stock sales, $49.2 million from convertible preferred stock, and $114.2 million from collaboration agreements[57]. - The net loss for the three months ended September 30, 2021, was $13.5 million, compared to $6.1 million for the same period in 2020[57]. - The company had cash, cash equivalents, restricted cash, and investments totaling $219.9 million as of September 30, 2021[57]. - The net loss for the nine months ended September 30, 2021, was $35.2 million, compared to a net loss of $21.6 million in the same period of 2020, indicating an increase in losses of 63%[83]. - The company reported a net cash used in operating activities of $0.5 million for the nine months ended September 30, 2021, compared to a net cash provided of $39.4 million for the same period in 2020[100]. - The net cash used in investing activities was $48.2 million for the nine months ended September 30, 2021, primarily due to purchases and maturities of investments and property and equipment[101]. - The net cash provided by financing activities was $89.9 million for the nine months ended September 30, 2021, mainly from the sale of approximately 6.5 million shares of common stock[102]. Collaboration Agreements - The company has received $105.0 million in upfront and pre-option exercise development milestones from the collaboration agreement with AbbVie[56]. - AbbVie Agreement resulted in a nonrefundable upfront payment of $60.0 million and potential milestone payments totaling up to $450.0 million upon achievement of sales-based milestones[60]. - Revenue recognized from the AbbVie Agreement was $8.5 million for Q3 2021, compared to $1.6 million for Q3 2020, reflecting an increase of $6.6 million[76]. - Collaboration revenue for the nine months ended September 30, 2021, was $18.9 million, a significant increase from $3.7 million in the same period of 2020, representing a growth of 410%[84]. - The collaboration and licensing agreements are expected to generate fluctuating revenue in the future, primarily from milestone payments[59]. Research and Development - The lead oncology program, ALPN-202, demonstrated clinical benefit in 61% of evaluable patients in a Phase 1 study, despite most having tumors considered non-responsive to immunotherapies[56]. - The company plans to initiate patient-based studies for ALPN-303 in the second half of 2022, targeting various autoimmune and inflammatory diseases[56]. - The first-in-human Phase 1 study of ALPN-303 is expected to begin in Q4 2021, with topline results targeted for the first half of 2022[56]. - Research and development expenses increased to $18.3 million in Q3 2021 from $6.2 million in Q3 2020, a rise of $12.2 million[62]. - Research and development expenses for the nine months ended September 30, 2021, totaled $43.4 million, compared to $18.1 million for the same period in 2020[62]. - Research and development expenses increased by $25.3 million, primarily due to clinical trial activities and contract manufacturing, with specific increases of $8.3 million and $7.9 million respectively[85]. Operating Expenses - Total operating expenses for Q3 2021 were $21.8 million, up from $8.9 million in Q3 2020, marking an increase of $12.9 million[76]. - Total operating expenses for the nine months ended September 30, 2021, were $53.4 million, up from $26.0 million in 2020, reflecting an increase of 105%[83]. - General and administrative expenses rose to $3.5 million in Q3 2021 from $2.7 million in Q3 2020, an increase of $0.7 million[79]. - General and administrative expenses rose by $2.2 million, mainly driven by personnel-related expenses and non-cash stock-based compensation[86]. Future Expectations - The company expects to incur significant expenses and operating losses for at least the next several years as it continues clinical trials and research efforts[57]. - The company expects to continue incurring significant expenses and operating losses as it advances its research and development efforts[89]. - The company has incurred operating losses since inception and anticipates the need for potential equity or debt financing in the future[89]. Lease and Other Financial Obligations - The company has a lease for 27,164 square feet of office and laboratory space with an annual base rent of $1.7 million, increasing by 3.0% each year[96]. - The company received a tenant improvement allowance of $5.4 million, with an additional maximum allowance of $1.8 million amortized over the lease term at an annual rate of 8.0%[96]. - The company may incur losses of up to approximately $1.8 million related to credits received for research and development expenditures, subject to review by foreign tax authorities[97]. - The company did not have any off-balance sheet arrangements during the periods presented[104]. - As a smaller reporting company, the company is not required to provide additional information on contractual obligations and contingent liabilities[103].