Altimmune, Inc. — Q3 2023 Form 10-Q
Reporting period: Three and nine months ended September 30, 2023; filed November 7, 2023. Altimmune is a clinical-stage biopharmaceutical company developing pemvidutide for obesity and liver disease and HepTcell for chronic hepatitis B. It has not generated product-sale revenue.
Financial results and liquidity
| Metric | Q3 2023 | Q3 2022 | Nine months 2023 | Nine months 2022 |
|---|---|---|---|---|
| Revenue | $0.36 million | $0.002 million | $0.39 million | $0.04 million |
| Research and development expense | $18.39 million | $20.26 million | $48.89 million | $51.36 million |
| General and administrative expense | $4.51 million | $4.49 million | $13.81 million | $13.33 million |
| Operating loss | $22.54 million | $24.75 million | $62.31 million | $64.65 million |
| Net loss | $20.67 million | $23.52 million | $56.81 million | $63.05 million |
| Basic and diluted loss per share | $0.39 | $0.48 | $1.10 | $1.37 |
Revenue reflects grant/contract-related adjustments, not product sales. For the nine-month period, operating cash use was $59.3 million, compared with $45.3 million a year earlier. Investing activities provided $21.7 million, largely from investment maturities and sales; financing activities provided $13.4 million, mainly from at-the-market (ATM) stock sales.
At September 30, 2023, cash, cash equivalents and restricted cash totaled $86.9 million and short-term investments were $53.9 million, or $140.8 million combined. Current assets were $153.0 million and current liabilities $11.9 million. Total liabilities were $16.2 million; the filing does not report material conventional debt. Accumulated deficit was $434.7 million. Management stated available resources, together with expected tax refunds and R&D incentives, were sufficient for at least 12 months from the financial statements’ issuance date.
Changes, outlook and material items
- Nine-month net loss improved by $6.2 million year over year, while operating cash use increased by $14.0 million. Lower costs from completed earlier pemvidutide studies were partly offset by IMPACT trial startup, MOMENTUM trial and manufacturing costs, and higher non-project R&D spending.
- Interest income rose to $5.4 million for the nine months, from $1.4 million, helping reduce net loss; this is investment income rather than operating revenue.
- Altimmune sold 3.54 million shares under its 2023 ATM program for approximately $13.9 million net proceeds during the nine months. $135.7 million remained available under the program at September 30. Shares outstanding were 52.86 million at quarter-end, versus 49.20 million at December 31, 2022.
- Management gave no financial revenue or earnings guidance. MOMENTUM Phase 2 obesity-trial topline results were expected in Q4 2023; the Phase 2b NASH IMPACT trial topline results were expected in Q1 2025. HepTcell Phase 2 data were planned for Q1 2024. The FDA granted pemvidutide Fast Track designation for NASH on October 24, 2023.
- The filing reports that litigation claims were not reasonably possible or probable of material loss and that there were no material changes to previously disclosed risk factors. A potential Spitfire sales-milestone obligation of up to $80 million is contingent on specified product sales following FDA approval.
- After quarter-end, holders net-cashlessly exercised 869,566 pre-funded warrants, receiving 869,530 shares. This increased the share count without material cash proceeds.
Important facts for investors to verify
- Whether MOMENTUM results and subsequent clinical updates support the company’s development plans and anticipated timelines.
- Cash burn, expected R&D incentive and tax-refund receipts, and whether management’s stated runway remains adequate as trial spending evolves.
- Future ATM sales, share issuance and other potential dilution, including the post-quarter warrant exercise.
- That reported revenue remains non-product revenue and that commercialization timing and future product revenue are uncertain.
- Potential clinical, regulatory, funding and contingent-payment risks, including the Spitfire milestone terms.