AnaptysBio(ANAB) - 2021 Q2 - Quarterly Report

Clinical Trials and Research - Imsidolimab achieved a primary endpoint improvement in the clinical global impression scale (CGI) for 6 of 8 (75%) patients in the GALLOP clinical trial[75]. - The modified Japanese Dermatology Association Severity Index (mJDA-SI) score decreased by an average of 29% on Day 8 and 54% on Day 29 in the GALLOP clinical trial[75]. - The company plans to initiate Phase 3 registrational trials for imsidolimab for GPP, called GEMINI-1 and GEMINI-2, in Q3 2021[76]. - The RADIANCE study is a global registry of GPP patients aimed at improving understanding of the patient journey and assisting in future clinical trial enrollment[77]. - A Phase 2 clinical trial of imsidolimab for moderate-to-severe acne (ACORN) will involve 120 patients, with top-line data expected in H1 2022[78]. - A Phase 2 clinical trial of imsidolimab for hidradenitis suppurativa (HARP) will also involve 120 patients, with top-line data anticipated in H2 2022[79]. Financial Performance and Revenue - The company has received approximately $205.3 million in cash receipts from collaborations, including a$20.0 million milestone payment for the FDA approval of JEMPERLI[84]. - JEMPERLI is projected to have peak year annual sales estimates of £1-£2 billion according to GSK[84]. - The company amended its collaboration with GSK to increase royalties on global net sales of JEMPERLI to 8% on sales below $1 billion and 12-25$1 billion[84]. - The company anticipates additional milestone payments of $15.0 million and$165.0 million upon achieving certain regulatory and commercial milestones for JEMPERLI[84]. - Collaboration revenue for Q2 2021 was $30.0 million, compared to$0 million in Q2 2020, primarily from milestone payments related to JEMPERLI[97]. - Milestone revenue for the six months ended June 30, 2021, was $40.0 million, compared to$15.0 million in the same period of 2020[97]. Expenses and Cash Flow - Research and development expenses increased to $25.3 million in Q2 2021 from$17.9 million in Q2 2020, driven by a $4.5 million rise in clinical expenses[98]. - Total research and development expenses for the six months ended June 30, 2021, were$49.5 million, up from $38.9 million in the same period of 2020, reflecting a$10.6 million increase[98]. - General and administrative expenses rose to $5.2 million in Q2 2021 from$4.7 million in Q2 2020, mainly due to increased personnel costs[100]. - Interest income decreased to $0.1 million in Q2 2021 from$1.1 million in Q2 2020, attributed to lower interest rates and reduced investment balances[101]. - As of June 30, 2021, the company had $396.3 million in cash, cash equivalents, and investments[103]. - Net cash used in operating activities for the six months ended June 30, 2021, was$13.6 million, compared to $34.7 million for the same period in 2020[107]. - Net cash provided by investing activities during the six months ended June 30, 2021, was$94.7 million, an increase from $86.1 million in 2020[110]. - The net cash provided by financing activities during the six months ended June 30, 2021, was$0.7 million, related to the issuance of common stock upon the exercise of stock options[111]. - Net cash used in operating activities was primarily due to a net loss of $18.6 million for the six months ended June 30, 2021[107]. Future Outlook and Financing - The company expects research and development expenses to remain high as it advances product candidates into larger clinical trials[91]. - The company anticipates an increase in general and administrative expenses due to costs associated with being a publicly traded company[100]. - The company expects its existing cash resources to fund its current operating plan at least into 2024[106]. - The company may seek additional financing through equity or debt financings or collaborations in the future[106]. - There have been no material changes in market risk, including interest rate risk and foreign currency exchange risk, as of June 30, 2021[115]. - The company has contractual obligations with vendors for goods and services, which may require payments for cancellation or early termination[112].