PMV Pharmaceuticals(PMVP) - 2023 Q3 - Quarterly Report

Financial Performance - The net loss for the three months ended September 30, 2023, was $16.6 million, a decrease of $1.6 million compared to a net loss of $18.2 million for the same period in 2022[101]. - The company incurred a net loss of $53.2 million for the nine months ended September 30, 2023, compared to a net loss of $54.0 million for the same period in 2022, reflecting a decrease of $0.8 million[106]. - The accumulated deficit reached $294.2 million as of September 30, 2023, with cash operating expenditures of $43.6 million for the nine months ended September 30, 2023, compared to $48.4 million in 2022[117]. Research and Development Expenses - Research and development expenses for the three months ended September 30, 2023, were $13.6 million, a slight decrease of $0.1 million from $13.7 million in the same period in 2022[102]. - Research and development expenses for the nine months ended September 30, 2023, totaled $42.5 million, an increase of $5.5 million from $37.0 million in the same period in 2022[107]. - The company expects significant increases in operating expenses as it advances product candidates through clinical development and seeks regulatory approval[90]. Cash and Financial Assets - As of September 30, 2023, total financial assets were $238.1 million, a decrease of $5.4 million from $243.5 million as of December 31, 2022[111]. - The company expects its cash, cash equivalents, and marketable securities as of September 30, 2023, to be sufficient to fund operations at least through 2025[117]. - As of September 30, 2023, the company had cash, cash equivalents, and marketable securities totaling $238.1 million, with restricted cash of $0.8 million[139]. Interest Income - Interest income, net for the three months ended September 30, 2023, was $3.0 million, an increase of $1.9 million compared to $1.1 million for the same period in 2022, driven by higher interest rates[105]. - Interest income, net rose to $8.0 million for the nine months ended September 30, 2023, an increase of $6.2 million compared to the same period in 2022, driven by higher interest rates[109]. Operating Activities - Cash used in operating activities was $43.6 million for the nine months ended September 30, 2023, down from $48.4 million in the same period of 2022[120]. - Total operating expenses for the nine months ended September 30, 2023, were $61.2 million, an increase of $5.4 million compared to $55.9 million for the same period in 2022[106]. Financing Activities - Financing activities generated $35.3 million in cash during the nine months ended September 30, 2023, mainly from the issuance of common stock under the ATM Program[125]. - The company has approximately $113.8 million remaining in gross proceeds available for future issuances of common stock under the ATM Program as of September 30, 2023[113]. Market Risks - The company is exposed to market risks primarily related to interest rate risks in the ordinary course of business[138]. - The company is not currently exposed to significant market risk related to changes in foreign currency exchange rates, but future contracts with foreign vendors may introduce such risks[140]. Stock-Based Compensation - Stock-based compensation expense is recognized on a straight-line basis over the associated service period of the award[132]. - The company uses the Black-Scholes option pricing model to estimate the fair value of stock options on the date of grant[134]. - Expected volatility for stock options is derived from the average historical stock volatility over the expected term of the awards[135]. Other Information - The company has not generated any revenue from product sales to date and does not expect to do so in the foreseeable future[94]. - The company plans to continue using third-party service providers for clinical development and manufacturing, as it does not currently have a sales force[92]. - The company engages vendors, CROs, and CMOs for preclinical development activities and clinical trials[133]. - Recent accounting pronouncements are detailed in Note 2 of the unaudited condensed financial statements for the nine months ended September 30, 2023[137].