Tango Therapeutics, Inc. — Q1 2023 Form 10-Q
Reporting period: Three months ended March 31, 2023. Unaudited results; comparisons are with the three months ended March 31, 2022 unless otherwise stated. Tango is a pre-commercial precision oncology company and reported no product sales.
Financial results and liquidity
| Metric | Q1 2023 | Q1 2022 / comparison |
|---|---|---|
| Collaboration revenue | $5.8 million | $5.8 million |
| Research and development expense | $28.0 million | $24.3 million |
| General and administrative expense | $8.0 million | $6.8 million |
| Total operating expenses | $36.1 million | $31.1 million |
| Operating loss | $30.3 million | $25.4 million |
| Net loss | $28.0 million; $0.32 per share | $25.2 million; $0.29 per share |
| Operating cash flow | $(34.9) million | $(29.7) million |
Q1 2023 collaboration revenue came from the Gilead agreements. The filing reports no product revenue and no gross margin measure. Interest income was $1.1 million versus $0.2 million; total other income was $2.3 million versus $0.2 million, helping offset operating losses.
At March 31, 2023, cash and cash equivalents were $57.3 million and marketable securities were $276.4 million, or $333.6 million combined. Restricted cash was $3.4 million. Total assets were $403.8 million; total liabilities were $176.5 million, including operating lease liabilities and deferred revenue. No borrowings are reported in the presented balance sheet. Accumulated deficit was $297.5 million. Management said available cash, cash equivalents and marketable securities were expected to fund operating and capital needs at least into 2026; this is an estimate based on assumptions, not a guarantee.
Material changes versus prior period
- Net loss increased $2.8 million as operating expenses rose $4.9 million, partly offset by higher other income.
- R&D expense increased $3.7 million, primarily from personnel costs, including stock-based compensation, and higher facility costs. G&A increased $1.2 million, mainly from personnel-related costs.
- Operating cash use increased $5.2 million. Cash, cash equivalents and restricted cash decreased $3.3 million during the quarter; investing cash flow was a net source of $31.6 million, chiefly from securities sales and maturities exceeding purchases.
- Cash, cash equivalents and marketable securities declined from $366.1 million at December 31, 2022 to $333.6 million at quarter-end. The accumulated deficit increased from $269.5 million to $297.5 million.
Pipeline, outlook and risks
- TNG908: Phase 1/2 enrollment was ongoing. Management reported proof-of-mechanism in early dose-escalation data and no dose-limiting toxicities or related adverse events above Grade 2 observed to date. Additional clinical data were expected in 2024.
- TNG462: The IND had cleared in January 2023; first-patient dosing was expected in mid-2023. The planned Phase 1/2 trial was expected to exclude glioblastoma.
- TNG260: The FDA cleared the IND in Q1 2023; a Phase 1/2 trial with pembrolizumab was planned for the second half of 2023.
- TNG348: An IND filing was expected in mid-2023. The program remained preclinical at the reporting date.
- Management expected expenses and operating losses to continue increasing as programs advance. The company has no approved products, has never completed a clinical trial, and expects to need substantial additional funding over time; financing may be unavailable or dilutive or may require restricting operations or licensing rights.
- Key risks include clinical and regulatory uncertainty, trial enrollment and safety, manufacturing and sole-source supply dependence, reliance on collaborators and third parties, intellectual-property protection, and the possibility that preclinical results will not translate into clinical benefit. The filing reported no material changes to the risk factors in the 2022 Form 10-K.
- Operating lease commitments totaled $60.1 million, including $5.5 million due within one year. The company reported no material pending or threatened legal proceedings. Its investment portfolio had $2.3 million of gross unrealized losses at quarter-end; management said it did not intend to sell the securities before recovery and recorded no impairment or credit-loss reserve.
Important facts for investors to verify
- Whether the stated cash runway into 2026 remains supportable as clinical development spending and cash burn evolve.
- Clinical progress, safety, enrollment and subsequent data for TNG908, and whether stated timelines for TNG462, TNG260 and TNG348 are met.
- Future R&D spending, operating cash use, financing needs and potential dilution; Q1 operating cash use was $34.9 million.
- Gilead collaboration terms and revenue recognition: $199.0 million was the reported transaction price, with $80.9 million recognized cumulatively and $118.1 million in deferred revenue at March 31, 2023.
- Potential effects of marketable-security valuations, lease obligations, stock-based compensation and future collaboration or milestone receipts.