ImmunoGen(IMGN) - 2022 Q1 - Quarterly Report

Financial Performance - Total revenues for the three months ended March 31, 2022, were $38,078,000, a significant increase from $15,706,000 in the same period of 2021, representing a growth of 142%[14] - The net loss for the three months ended March 31, 2022, was $24,145,000, compared to a net loss of $34,051,000 for the same period in 2021, indicating a reduction in losses by approximately 29%[14] - The company reported a basic and diluted net loss per common share of $0.10 for the three months ended March 31, 2022, compared to $0.17 for the same period in 2021[14] - The total shareholders' equity as of March 31, 2022, was $306,468,000, down from $325,586,000 at the end of 2021, a decrease of approximately 6%[13] - The company incurred a net loss of $24.1 million for the three months ended March 31, 2022, with an accumulated deficit of approximately $1.5 billion[21] Cash and Liabilities - Cash and cash equivalents decreased to $437,661,000 as of March 31, 2022, down from $478,750,000 at the end of 2021, a decline of approximately 9%[13] - Total current liabilities decreased to $84,118,000 as of March 31, 2022, from $100,945,000 at the end of 2021, a reduction of about 17%[13] - As of March 31, 2022, the company had no marketable securities, and its cash equivalents primarily consisted of money market funds[31] Research and Development - Research and development expenses increased to $44,282,000 for the three months ended March 31, 2022, up from $34,413,000 in the prior year, reflecting a rise of 29%[14] - The company anticipates continued growth in revenues driven by new product developments and market expansion strategies[8] - The management highlighted ongoing investments in research and development to support future product candidates and business strategies[9] - ImmunoGen, Inc. expects to continue incurring substantial operating losses in the near term due to significant research and development expenses[21] Revenue Recognition - The aggregate amount of deferred revenue as of March 31, 2022, was $70.1 million, with expected revenue recognition of approximately 33% in the next 12 months[27] - During the three months ended March 31, 2022, the company recognized $21.6 million in license and milestone fee revenue from a collaboration with Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd.[28] - The company received an upfront payment of $13.0 million from Eli Lilly and Company, with $9.2 million recognized as revenue during the same period[28] - The company recognized $4.1 million of previously deferred non-cash royalty revenue related to KADCYLA® royalties during the three months ended March 31, 2022[28] - The company expects to recognize revenue on approximately 33%, 55%, and 12% of the remaining performance obligations over the next 12 months, 13 to 60 months, and 61 to 120 months, respectively, from a deferred revenue balance of $70.1 million[27] Risks and Uncertainties - The management's discussion highlighted ongoing risks and uncertainties that may affect future performance, emphasizing the need for cautious investment considerations[10] - The company is subject to common risks in the biotechnology industry, including competition and dependence on key personnel[23] - The company plans to address known and unknown risks that may impact future performance as outlined in the "Risk Factors" section of the report[10] Stock and Compensation - As of March 31, 2022, the Company had 26,937 stock options outstanding with a weighted average exercise price of $6.08, an increase from 21,219 options at December 31, 2021[46] - Stock compensation expense for stock options and restricted stock unit awards was $4.2 million for the three months ended March 31, 2022, compared to $3.7 million for the same period in 2021[48] - The estimated fair value of unvested employee awards, excluding performance awards, was $46.9 million as of March 31, 2022, with a weighted-average remaining vesting period of approximately three years[48] Future Financing - The company may raise additional funds through equity, debt, or other financings, but there is no assurance that it will be able to do so on acceptable terms[22] - The Company has noncancelable manufacturing commitments totaling $18.3 million for in-process and future manufacturing of antibody and drug substances as of March 31, 2022[84] Other Financial Metrics - The weighted average discount rate for the operating lease liability is approximately 11%, with total lease liabilities amounting to $18.025 million[79] - The Company recorded $1.2 million in sublease income for each of the three months ended March 31, 2022, and 2021[81] - The Company expects a significant decrease in its 2022 tax loss due to the capitalization of research and development expenses as per the Tax Cuts and Jobs Act of 2017[69]