ImmunoGen(US:IMGN)2022-08-01 20:07Financial Performance - Total revenues for the three months ended June 30, 2022, were $14.2 million, a decrease of 16.4% compared to $16.9 million for the same period in 2021[15]. - The net loss for the six months ended June 30, 2022, was $86.2 million, compared to a net loss of $64.8 million for the same period in 2021, indicating an increase in losses of approximately 32.9%[15]. - The basic and diluted net loss per common share for the three months ended June 30, 2022, was $0.24, compared to $0.15 for the same period in 2021[15]. - The company reported a net loss of $62,021,000 for the three months ended June 30, 2022, compared to a net loss of $30,741,000 for the same period in 2021, indicating an increase in loss of approximately 102.5%[15]. - The company reported a net loss of $86.2 million for the six months ended June 30, 2022, compared to a net loss of $64.8 million for the same period in 2021[21]. Assets and Liabilities - As of June 30, 2022, total assets decreased to $422.3 million from $525.8 million as of December 31, 2021, representing a decline of approximately 19.6%[13]. - Total current liabilities decreased to $87.1 million as of June 30, 2022, from $100.9 million as of December 31, 2021, a reduction of approximately 13.7%[13]. - The total shareholders' equity decreased to $249.8 million as of June 30, 2022, from $325.6 million at the end of 2021, a decline of approximately 23.2%[13]. - The company’s accumulated deficit increased to $1,557,309,000 as of June 30, 2022, compared to $1,471,143,000 as of December 31, 2021, indicating an increase of approximately 5.8%[13]. Cash Flow - The company reported cash and cash equivalents of $373.9 million as of June 30, 2022, down from $478.8 million at the end of 2021, a decrease of 22%[13]. - The company had net cash used for operating activities of $105.4 million for the six months ended June 30, 2022, compared to $88.5 million for the same period in 2021[21]. - Cash and cash equivalents as of June 30, 2022, were $373.9 million, down from $478.8 million as of December 31, 2021[129]. Research and Development - Research and development expenses for the three months ended June 30, 2022, were $51.4 million, up 48.7% from $34.6 million in the same period of 2021[15]. - The company anticipates continued investment in research and development to support future product candidates and business strategies[8]. - The company expects to continue incurring substantial operating losses in the near term due to significant expenses related to research and development[21]. - Total research and development expenses rose to $51.4 million for the six months ended June 30, 2022, an increase of $16.8 million compared to $34.6 million in 2021[119]. Revenue Recognition - The company expects to recognize revenue on approximately 26%, 62%, and 12% of remaining performance obligations over the next 12 months, 13 to 60 months, and 61 to 120 months, respectively[27]. - The aggregate amount of deferred revenue as of June 30, 2022, was $59.2 million, reflecting a decrease from $92.1 million at the end of 2021[28]. - The company recognized $36.6 million in revenue from amounts included in contract liabilities at the beginning of the period for the six months ended June 30, 2022[28]. - License and milestone fee revenue increased by $6.7 million and $37.5 million for the three and six months ended June 30, 2022, respectively, compared to the same periods in 2021[116]. Strategic Initiatives - The company plans to explore market expansion opportunities and potential strategic partnerships to enhance growth prospects[8]. - The company plans to raise additional funds through equity, debt, or other financings to support its operational activities[22]. - The company has selectively licensed its ADC platform technology to other companies, which may provide upfront fees, milestone payments, and royalties on sales[106]. Stock and Compensation - Stock compensation expense related to stock options and restricted stock unit awards was $4.8 million and $9.0 million for the three and six months ended June 30, 2022, respectively, compared to $3.6 million and $7.3 million for the same periods in 2021[51]. - The estimated fair value of unvested employee awards, excluding performance awards, was $50.1 million as of June 30, 2022, with a weighted-average remaining vesting period of approximately three years[51]. - The Company had 29,528 options outstanding as of June 30, 2022, compared to 21,681 options in the same period of 2021[44]. Collaborations and Agreements - The Company received a non-refundable upfront payment of $13.0 million from Eli Lilly under a license agreement, with potential additional fees of $32.5 million and up to $1.7 billion in milestone payments[55]. - The collaboration with Huadong includes a $40.0 million upfront payment and potential milestone payments of approximately $265.0 million[65]. - The license agreement with Viridian includes potential milestone payments of up to $143.0 million plus royalties on commercial sales[67].