Tango Therapeutics, Inc. — Q1 2024 Form 10-Q
Reporting period: Three months ended March 31, 2024. Tango is a clinical-stage precision oncology company with no approved products and no product-sale revenue; collaboration revenue is from Gilead.
Financial performance and liquidity
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Collaboration revenue | $6.5 million | $5.8 million |
| Research and development expense | $38.1 million | $28.0 million |
| General and administrative expense | $10.7 million | $8.0 million |
| Operating loss | $42.3 million | $30.3 million |
| Net loss | $37.9 million | $28.0 million |
| Net loss per share, basic and diluted | $0.35 | $0.32 |
| Net cash used in operating activities | $37.9 million | $34.9 million |
At March 31, cash, cash equivalents and marketable securities totaled $343.6 million, versus $336.9 million at December 31, 2023. The company expects these resources to fund operating expenses and capital needs into at least late 2026; management notes this estimate depends on assumptions that may prove incorrect. Current assets were $352.0 million and current liabilities $42.8 million. The filing reports no borrowings or debt balance. Operating lease commitments totaled $54.1 million, including $5.0 million due within one year.
Interest income was $2.2 million and other income, net, was $2.2 million. No product gross margin is reported because the company has not generated product-sale revenue. Cash, cash equivalents and restricted cash decreased $6.1 million during the quarter; this included $41.7 million of net ATM proceeds, while marketable-security purchases and maturities are reflected in investing cash flows.
Changes versus the prior comparable period
Net loss increased $9.9 million year over year as operating expenses rose $12.7 million, partly offset by a $2.1 million increase in other income, net. R&D expense increased $10.0 million, primarily due to clinical-program advancement and higher personnel costs; G&A increased $2.6 million, mainly from personnel-related costs. Operating cash use rose $3.0 million. Collaboration revenue increased $0.7 million. The company raised $41.7 million net through its at-the-market offering in January 2024, issuing 4.0 million shares.
Programs, outlook and risks
- TNG908: Dose expansion began in Q2 2024 in glioblastoma, NSCLC and pancreatic cancer cohorts at 600 mg twice daily. Clinical data were expected in the second half of 2024.
- TNG462: Dose escalation was ongoing, with management describing safety, tolerability and pharmacokinetics as favorable to date. Dose expansion was expected to begin in Q2 2024, with clinical data expected in the second half of 2024.
- TNG260: Dose escalation was ongoing in a Phase 1/2 study with pembrolizumab for STK11-mutated solid tumors. The company reported favorable safety, tolerability and pharmacokinetics to date.
- TNG348: The Phase 1/2 trial began dosing in January 2024; enrollment in dose escalation was ongoing. Management described early single-agent pharmacokinetic, pharmacodynamic, safety and tolerability data as favorable.
- Management expects expenses and operating losses to increase as clinical development advances. The company will need substantial additional funding over time and may seek equity, debt, collaboration, licensing or other financing; further equity funding could dilute stockholders.
- Key risks include clinical and regulatory uncertainty, the possibility of adverse events or trial delays, reliance on third-party manufacturers and trial providers, and dependence on a limited supplier base. The filing identifies a WuXi AppTec affiliate as the sole source of API for clinical trial products and notes proposed U.S. legislation could restrict business with WuXi.
- There were no material changes to the risk factors in the 2023 Form 10-K. No material legal proceedings were pending or threatened, and management reported disclosure controls were effective as of March 31, 2024.
Investor verification priorities
- Verify subsequent clinical-trial updates, including dose expansion, enrollment, safety and efficacy data for TNG908 and TNG462, and progress for TNG260 and TNG348.
- Assess the assumptions behind the stated cash runway into late 2026 against quarterly operating cash use, planned trial spending and available financing.
- Review ATM share issuance and potential dilution, along with the remaining capacity under the $100 million sales agreement.
- Monitor the WuXi supply-chain exposure and any legislative or operational developments that could affect access to clinical drug supply.
- Track Gilead collaboration revenue and deferred revenue: $85.9 million remained deferred at March 31, 2024, with long-term amounts expected to be recognized over an estimated remaining contractual term of about 3.4 years.