Biomea Fusion(BMEA) - 2021 Q3 - Quarterly Report

Financial Performance - As of September 30, 2021, the company had an accumulated deficit of $35.0 million and incurred net losses of $12.6 million and $26.9 million for the three and nine months ended September 30, 2021, respectively[97]. - The company expects to continue incurring significant losses for the foreseeable future as it advances its research and development efforts and seeks regulatory approvals[99]. - Net cash used in operating activities was $19.5 million for the nine months ended September 30, 2021, primarily due to a net loss of $26.9 million[118]. - The impact of the COVID-19 pandemic may exacerbate the company's funding requirements and operational challenges[114]. Research and Development - Research and development expenses were $7.9 million for the three months ended September 30, 2021, compared to $0.8 million for the same period in 2020, representing an increase of $7.1 million[108]. - Research and development expenses for the nine months ended September 30, 2021, were $16.9 million, compared to $1.3 million for the same period in 2020, reflecting increased preclinical development costs[108]. - The company is developing its lead product candidate, BMF-219, for the treatment of liquid and solid tumors, with FDA clearance for its first Phase I trial announced in September 2021[96]. - The company has initiated preclinical work to assess the potential of the menin pathway in type 2 diabetes and expects to report findings in the first quarter of 2022[97]. Operating Expenses - Total operating expenses for the three months ended September 30, 2021, were $12.6 million, an increase of $11.5 million compared to $1.1 million for the same period in 2020[107]. - The company anticipates that general and administrative expenses will increase substantially due to staff expansion and costs associated with being a public company[105]. - General and administrative expenses increased to $4.8 million for the three months ended September 30, 2021, from $0.3 million in the same period of 2020, primarily due to increased personnel-related expenses and corporate costs[110]. Capital and Financing - The company completed its initial public offering in April 2021, issuing 9,000,000 shares at a price of $17.00 per share, raising approximately $152.8 million net of underwriting discounts and commissions[99]. - Net cash provided by financing activities was $152.9 million for the nine months ended September 30, 2021, primarily from the IPO proceeds[121]. - The company anticipates needing to raise substantial additional capital to fund product development and operations, with requirements depending on various factors including clinical trials and regulatory reviews[112]. Cash Position - As of September 30, 2021, the company had cash, cash equivalents, restricted cash, and investments totaling $191.9 million, with an accumulated deficit of $35.0 million[111]. - The company held $191.9 million in cash and cash equivalents as of September 30, 2021, with no interest-bearing liabilities[126]. Lease Obligations - Monthly lease payments for new lab space in San Carlos, California, are $57,638 with annual increases of 3%[122].