Poseida Therapeutics(US:PSTX)2023-11-09 21:11Financial Performance - Collaboration revenue decreased to $9.4 million for Q3 2023 from $116.3 million in Q3 2022, a decline of $106.9 million [152]. - Collaboration revenue decreased to $39.7 million for the nine months ended September 30, 2023, down from $120.4 million in the same period in 2022, a decline of $80.7 million [160]. - Total operating expenses for the nine months ended September 30, 2023, were $143.3 million, a decrease of $3.9 million compared to $147.2 million in 2022 [159]. - The net loss for the nine months ended September 30, 2023, was $98.1 million, compared to a net loss of $30.7 million for the same period in 2022, an increase of $67.4 million [159]. - Other income, net increased to $12.0 million for the nine months ended September 30, 2023, from $0.7 million in 2022, an increase of $11.3 million [166]. - The company expects to continue incurring net losses and negative cash flows from operations for at least the next several years [167]. - During the nine months ended September 30, 2023, the company reported a net loss of $98.1 million, which was a significant increase from the net loss of $30.7 million in the same period of 2022 [181][182]. Research and Development - The company has not generated any revenue from product sales and is currently in the clinical stage of developing cell and gene therapies for cancer and rare diseases [121]. - P-MUC1C-ALLO1, a fully allogeneic CAR-T product candidate, is currently in a Phase 1 clinical trial, with an initial data update expected in the first half of 2024 [125]. - P-BCMA-ALLO1, targeting relapsed/refractory multiple myeloma, is also in a Phase 1 clinical trial, with Roche covering a majority of future development costs [127]. - The company is developing P-OTC-101 and P-FVIII-101, both liver-directed gene therapies, with P-OTC-101 receiving orphan drug designation from the FDA in July 2023 [128]. - The company expects to dose the first patient with P-CD19CD20-ALLO1 in early 2024, which is a dual CAR-T program targeting B-cell hematological indications [127]. - The company plans to share preclinical data on P-FVIII-101 at the ASH Annual Meeting in December 2023 [128]. - Research and development expenses increased to $37.5 million in Q3 2023 from $35.1 million in Q3 2022, an increase of $2.3 million [155]. - Research and development expenses for clinical stage programs totaled $6.0 million in Q3 2023, down from $8.7 million in Q3 2022, a decrease of $2.7 million [155]. - Personnel-related expenses within research and development increased by $3.4 million due to headcount growth [155]. - Research and development expenses were $114.7 million for the nine months ended September 30, 2023, down from $119.0 million in 2022, a reduction of $4.3 million [163]. Collaboration and Agreements - The Roche Collaboration Agreement includes an upfront payment of $110 million and potential total payments up to $6 billion based on development milestones and product sales [133]. - The collaboration with Roche includes program reimbursements to offset development costs, which are expected to rise due to increased research and development activities [127]. - The company plans to seek new strategic collaborations in gene therapy following the termination of the Takeda Collaboration Agreement [139]. - The company has no current commitments or agreements for new strategic collaborations despite the potential for future partnerships [139]. - The company recognized $8.9 million of previously deferred revenue during the nine months ended September 30, 2023, following the termination of the Takeda Collaboration Agreement [139]. - The company experienced a $22.5 million increase in deferred revenue related to the Astellas strategic rights agreement during the nine months ended September 30, 2023 [181]. Expenses and Cash Flow - General and administrative expenses decreased to $8.1 million in Q3 2023 from $9.4 million in Q3 2022, a decrease of $1.3 million [156]. - Interest expense rose to $2.2 million in Q3 2023 from $1.8 million in Q3 2022, an increase of $0.4 million due to higher interest rates [157]. - Interest expense increased to $6.4 million for the nine months ended September 30, 2023, compared to $4.4 million in 2022, an increase of $2.0 million due to higher interest rates [165]. - For the nine months ended September 30, 2023, net cash used in operating activities was $63.4 million, compared to $29.2 million for the same period in 2022, reflecting a significant increase in cash outflow [181][182]. - Cash used in investing activities for the nine months ended September 30, 2023, was $8.6 million, a decrease from $117.4 million in the same period of 2022, indicating a reduction in investment expenditures [183][184]. - Net cash provided by financing activities was $16.1 million for the nine months ended September 30, 2023, compared to $105.1 million in the same period of 2022, showing a decline in financing inflows [186][187]. - As of September 30, 2023, the company had cash, cash equivalents, and short-term investments totaling $238.8 million, providing a solid liquidity position [199]. - Cash, cash equivalents, and short-term investments as of September 30, 2023, totaled $238.8 million, expected to fund operations for at least the next twelve months [172]. - The company had $60.0 million of borrowings outstanding under the 2022 Loan Agreement, with a variable interest rate starting at 7.94% [200]. Other Financial Information - The company derecognized the liability associated with the P-PSMA-101 program and recorded it as other income during the nine months ended September 30, 2023 [142]. - Non-cash charges for the nine months ended September 30, 2023, included $18.1 million in stock-based compensation and $4.2 million in depreciation and amortization expenses [181]. - The company has not had any significant changes to its contractual obligations and commitments during the nine months ended September 30, 2023 [190]. - Foreign currency transaction gains and losses have not been material to the company's consolidated financial statements, and expenses are primarily denominated in U.S. dollars [201].