Barinthus(US:BRNS)2022-11-09 16:00Financial Performance - The company generated net income of $26.5 million for the nine months ended September 30, 2022, compared to a net loss of $35.9 million for the same period in 2021[107]. - The company incurred a net loss of $35.9 million during the nine months ended September 30, 2021, and had an accumulated deficit of $82.1 million as of September 30, 2022[146]. - For the nine months ended September 30, 2022, the company reported revenue of $38.2 million, a significant increase from $0.2 million in the same period of 2021[185]. - For the three months ended September 30, 2022, the company reported revenue of $6.2 million, a decrease from $19 million in the same period of 2021, reflecting a change of $6.1 million[172]. - The company generated a net income of $26.5 million and used $3.1 million in cash for operating activities during the nine months ended September 30, 2022[146]. - Tax benefits for the nine months ended September 30, 2022, were $2.5 million, compared to $0.06 million in 2021, indicating a substantial increase[198]. - Interest income for the nine months ended September 30, 2022, was $1.8 million, a significant rise from $0.002 million in the same period of 2021[196]. Cash Flow and Liquidity - As of September 30, 2022, the company had $200.1 million in cash and cash equivalents, primarily due to equity issuance and revenues from Vaxzevria[146]. - The accumulated deficit as of September 30, 2022, was $82.1 million, with expectations of continued significant losses and negative cash flows from operations[214]. - The company expects to continue incurring net negative cash flows from operations for at least the next few years as it progresses clinical development[205]. - Net cash used in operating activities for the nine months ended September 30, 2022, was $3.1 million, a decrease from $24.6 million in 2021[207]. - Cash used in investing activities for the nine months ended September 30, 2022, was $5.2 million, mainly for capital expenditures related to the new headquarters in Harwell, UK[210]. - Cash used in financing activities during the nine months ended September 30, 2022, was $0.2 million, resulting from debt repayment of the acquired company Avidea[211]. - The effect of foreign exchange on cash and cash equivalents resulted in losses of $5.5 million for the nine months ended September 30, 2022[212]. - As of September 30, 2022, cash and cash equivalents totaled $200.1 million, primarily held in bank accounts across the UK, US, and Australia[232]. - The net proceeds from the IPO, along with existing cash, are expected to fund operating expenses and capital requirements into the first quarter of 2025[222]. - The company may require substantial additional financing in the future to meet operational needs and capital requirements[216]. Research and Development - The company has a broad pipeline including VTP-300 for chronic hepatitis B, VTP-200 for HPV, and VTP-850 for prostate cancer, among others[101]. - The company expects research and development expenses to increase in the future, as they account for a major portion of operating expenses[128]. - Research and development expenses for the three months ended September 30, 2022, were $9.7 million, up from $4.4 million in 2021, representing an increase of $5.4 million[176]. - The company incurred direct research and development expenses of $6.7 million for the three months ended September 30, 2022, compared to $2.9 million in 2021, indicating a rise of $3.8 million[176]. - Research and development expenses for the nine months ended September 30, 2022, were $30.2 million, up from $13.5 million in 2021, reflecting an increase of $16.7 million[188]. - Personnel-related expenses within research and development increased to $2.6 million in Q3 2022 from $1.4 million in Q3 2021, reflecting a rise of $1.2 million[176]. - The company plans to submit an IND application for HPV-related cancer during the first half of 2023[113]. - The company announced the dosing of the first patient in the Phase 2b clinical trial of VTP-300 on October 31, 2022[114]. Acquisitions and Partnerships - The company acquired Avidea for an upfront amount of $33.3 million, with $12.2 million payable in cash and $21.1 million in American Depositary Shares[167]. - The goodwill recognized as of September 30, 2022, related to the acquisition of Avidea was $12.6 million[169]. - The company is entitled to receive approximately 24% of milestone payments and royalties from AstraZeneca's commercial sales of the COVID-19 vaccine Vaxzevria, with recognized revenue of approximately $6.2 million and $38.2 million for the three and nine months ended September 30, 2022, respectively[103]. - The company is entitled to receive approximately 24% of payments, including royalties and milestones, from OUI related to the license agreement with AstraZeneca[152]. - The company received a payment of $2.4 million from OUI in 2020, recognized as revenue[124]. - For the three and nine months ended September 30, 2022, the company's share of payments from OUI amounted to approximately $6.2 million and $38.2 million respectively[124]. Expenses and Operational Outlook - General and administrative expenses are anticipated to rise as the company expands operations in the UK and US, preparing for manufacturing and commercialization[129]. - The company expects to incur net operating losses for at least the next several years as it advances its product candidates through clinical development[107]. - The company anticipates substantial increases in expenses as it pursues clinical development, hires additional personnel, and expands manufacturing capabilities[214]. - The company may face limitations on claiming research and development tax credits under the SME program due to changes in its qualification status[141]. - The company plans to recognize future amounts as revenue when earned, with a low probability of significant revenue reversal[125].