Roivant Sciences(ROIV) - 2023 Q4 - Annual Report

Financial Performance - Total revenue for the year ended March 31, 2023, was $61.28 million, an increase from $55.29 million in 2022, representing an increase of 10.3%[911] - Product revenue for the year was $28.01 million, with license, milestone, and other revenue totaling $33.27 million, down from $55.29 million in the previous year[911] - The net loss for the year was $1.12 billion, compared to a net loss of $924.12 million in 2022, reflecting an increase in losses of about 21.5%[911] - The company reported a comprehensive loss of $1.12 billion for 2023, compared to $926.39 million in 2022, reflecting an increase of approximately 20.9%[915] - The net loss for the year ended March 31, 2023, was $1,115,463, compared to a net loss of $924,116 for the previous year, representing a 20.7% increase in losses[922] - Cash used in operating activities was $843,393 for the year ended March 31, 2023, up from $677,729 in the prior year, indicating a 24.5% increase in cash outflow[922] Cash and Assets - Cash and cash equivalents decreased to $1.68 billion as of March 31, 2023, down from $2.06 billion in 2022, a decline of 18.6%[908] - Total assets decreased to $2.39 billion in 2023 from $2.59 billion in 2022, a reduction of approximately 7.5%[908] - Shareholders' equity attributable to Roivant Sciences Ltd. decreased to $1.16 billion in 2023 from $1.66 billion in 2022, a decline of approximately 30.1%[908] - The company had cash and cash equivalents of approximately $1.7 billion and an accumulated deficit of approximately $3.8 billion as of March 31, 2023[927] Operating Expenses - Total operating expenses decreased to $1.24 billion in 2023 from $1.41 billion in 2022, a reduction of approximately 12%[911] - Share-based compensation expenses decreased to $217,781 from $564,956, a reduction of 61.5% year-over-year[922] Capital and Financing - The company raised $311,981 from the issuance of common shares, net of issuance costs, during the year[922] - The total cash provided by financing activities was $499,462, compared to $306,792 in the previous year, marking an increase of 62.6%[922] - The Company has an aggregate offering price of up to $400.0 million available under the ATM Facility as of March 31, 2023[1058] - In November 2022, the Company completed a public offering of 30,000,000 common shares at $5.00 per share, generating net proceeds of approximately $94.7 million[1060] - In February 2023, the Company completed another public offering of 30,666,665 common shares at $7.50 per share, resulting in net proceeds of approximately $216.9 million[1062] Product Development and Revenue Recognition - The company is actively pursuing new product candidates and aims to enhance its product pipeline through discovery efforts[25] - The company launched its first commercial product, VTAMA®, following FDA approval in May 2022[925] - The Company began recognizing product revenues from VTAMA after FDA approval in May 2022[970] - Revenues from product sales are recorded at the net sales price, which includes estimates of variable consideration such as discounts, rebates, and returns[972] - The Company recognizes revenue from non-refundable upfront fees for licenses of intellectual property when the license is transferred and usable by the licensee[975] Regulatory and Operational Risks - The company acknowledges the unpredictability of regulatory approval processes for new drugs, which could delay commercialization[25] - The company is subject to risks common in the biopharmaceutical industry, including uncertainties related to product commercialization and regulatory approvals[928] - The company anticipates potential difficulties in enrolling and retaining patients for clinical trials, which may affect product development timelines[25] Shareholder and Governance - The company has a significant percentage of its shares controlled by major shareholders, which may influence corporate governance[31] - The company emphasizes the importance of effective communication with investors through various channels, including its investor relations website[28] Research and Development - Research and development costs are expensed as incurred, primarily consisting of preclinical studies and clinical trials[952] - The company has incurred significant losses and negative cash flows from operations since its inception[927] Debt and Liabilities - Total liabilities increased to $782.02 million in 2023, up from $523.70 million in 2022, an increase of about 49.3%[908] - Dermavant's total long-term debt net as of March 31, 2023, was $180.7 million, compared to $177.4 million in the previous year[1042] Investments and Fair Value - The company's equity method investments in Datavant and Arbutus had fair values of $178.6 million and $117.7 million, respectively, as of March 31, 2023[991] - Unrealized losses on investments for Datavant and Arbutus were $15.4 million and $(1.9) million, respectively, for the year ended March 31, 2023[993]