Workflow
Werewolf Therapeutics(HOWL) - 2022 Q2 - Quarterly Report
HOWLWerewolf Therapeutics(HOWL)2022-08-11 11:04

Revenue and Collaboration Agreements - The company has not generated any revenue from product sales to date, but recognized 4.1millioninrevenuerelatedtoaCollaborationAgreementforthesixmonthsendedJune30,2022[102].−Thecompanyreceivedanupfrontpaymentof4.1 million in revenue related to a Collaboration Agreement for the six months ended June 30, 2022[102]. - The company received an upfront payment of 15.0 million in April 2022 under a collaboration agreement with Jazz Pharmaceuticals, with potential milestone payments of up to 520.0million[94].−Thecompanyreceivedanupfrontpaymentof520.0 million[94]. - The company received an upfront payment of 15.0 million in April 2022 under a Collaboration Agreement with Jazz, with potential additional milestone payments totaling up to 1.26billion[124].−CollaborationrevenueforthethreemonthsendedJune30,2022,was1.26 billion[124]. - Collaboration revenue for the three months ended June 30, 2022, was 4.1 million, unchanged from 2021[112]. Financial Performance and Expenses - As of June 30, 2022, the company had an accumulated deficit of 282.8million,withexpectationsofcontinuedsubstantialandincreasingexpensesandnetlossesintheforeseeablefuture[96].−TotaloperatingexpensesforthethreemonthsendedJune30,2022,increasedto282.8 million, with expectations of continued substantial and increasing expenses and net losses in the foreseeable future[96]. - Total operating expenses for the three months ended June 30, 2022, increased to 19.1 million from 11.0millionin2021,representinganincreaseof11.0 million in 2021, representing an increase of 8.2 million[112]. - Research and development expenses for the three months ended June 30, 2022, were 13.9million,upfrom13.9 million, up from 7.3 million in 2021, an increase of 6.6million[113].−GeneralandadministrativeexpensesforthethreemonthsendedJune30,2022,were6.6 million[113]. - General and administrative expenses for the three months ended June 30, 2022, were 5.2 million, compared to 3.7millionin2021,anincreaseof3.7 million in 2021, an increase of 1.5 million[116]. - Net loss for the three months ended June 30, 2022, was 14.6million,comparedtoanetlossof14.6 million, compared to a net loss of 10.9 million in 2021, an increase of 3.7million[112].−ForthesixmonthsendedJune30,2022,totaloperatingexpenseswere3.7 million[112]. - For the six months ended June 30, 2022, total operating expenses were 34.5 million, up from 18.4millionin2021,anincreaseof18.4 million in 2021, an increase of 16.1 million[118]. - Research and development expenses for the six months ended June 30, 2022, were 24.8million,comparedto24.8 million, compared to 12.1 million in 2021, an increase of 12.8million[119].−GeneralandadministrativeexpensesforthesixmonthsendedJune30,2022,were12.8 million[119]. - General and administrative expenses for the six months ended June 30, 2022, were 9.7 million, compared to 6.3millionin2021,anincreaseof6.3 million in 2021, an increase of 3.3 million[121]. - The company has incurred an accumulated deficit of 282.8millionthroughJune30,2022,andexpectstocontinueincurringsubstantialandincreasingexpensesandnetlossesfortheforeseeablefuture[133].CashFlowandFunding−Existingcashandcashequivalentsof282.8 million through June 30, 2022, and expects to continue incurring substantial and increasing expenses and net losses for the foreseeable future[133]. Cash Flow and Funding - Existing cash and cash equivalents of 145.7 million are expected to fund operations through at least the fourth quarter of 2023, but this estimate is based on assumptions that may prove incorrect[134]. - Net cash used in operating activities for the six months ended June 30, 2022, was 14.3million,adecreaseofapproximately14.3 million, a decrease of approximately 3.5 million compared to 17.8millionforthesameperiodin2021[139].−NetcashprovidedbyfinancingactivitiesforthesixmonthsendedJune30,2022,was17.8 million for the same period in 2021[139]. - Net cash provided by financing activities for the six months ended June 30, 2022, was 3.6 million, a significant decrease of 106.1millioncomparedto106.1 million compared to 109.7 million for the same period in 2021[141]. - The company has financed operations primarily through proceeds from convertible promissory notes and equity securities, raising a total of 109.2millionfromitsIPO[95].−ThecompanywillrequirefurtherfundingtocompletethedevelopmentofWTX−124,WTX−330,oranyotherproductcandidate[136].ResearchandDevelopmentPlans−ThecompanyexpectsresearchanddevelopmentexpensestocontinuetoincreasesubstantiallyasitinitiatesandprogressesclinicaltrialsforWTX−124andWTX−330[106].−ExternaldevelopmentcostsforthesixmonthsendedJune30,2022,totaled109.2 million from its IPO[95]. - The company will require further funding to complete the development of WTX-124, WTX-330, or any other product candidate[136]. Research and Development Plans - The company expects research and development expenses to continue to increase substantially as it initiates and progresses clinical trials for WTX-124 and WTX-330[106]. - External development costs for the six months ended June 30, 2022, totaled 14.3 million, compared to 7.0 million for the same period in 2021, indicating a significant increase in R&D spending[106]. - The company plans to initiate a Phase 1/1b clinical trial for WTX-124 and submit an IND for WTX-330 in the second half of 2022[93]. - The company plans to increase research and development expenses as it continues preclinical and clinical development of product candidates[132]. - The company may consider entering into collaboration arrangements or selectively partnering for clinical development and commercialization[137]. Operational Challenges - The company has not experienced material financial statement impacts from the COVID-19 pandemic to date, but the future impact remains uncertain[100]. - The company expects general and administrative expenses to increase in the future due to an increase in personnel headcount to support research and development activities[109]. - The company expects to face inflationary pressures that could adversely affect its operations in the future[132]. Deferred Revenue and Lease Obligations - As of June 30, 2022, the company had 13.1 million in deferred revenue, classified as current or net of current portion[102]. - Total estimated base rent payments over the remaining term of the lease for office and laboratory space are approximately 18.9million[145].−ThenetcashusedininvestingactivitiesforthesixmonthsendedJune30,2022,was18.9 million[145]. - The net cash used in investing activities for the six months ended June 30, 2022, was 1.1 million, compared to nearly zero for the same period in 2021, primarily due to cash paid for leasehold improvements[140].