Tango Therapeutics, Inc. — 2022 Form 10-K
Reporting period: Fiscal year ended December 31, 2022. This annual filing does not provide a clear standalone fourth-quarter financial result. Amounts below are for the full year unless noted.
Business context and pipeline
Tango is a clinical-stage precision oncology company developing therapies for genetically defined cancers, primarily using synthetic-lethality and immune-evasion approaches. It had no approved products and no product-sale revenue in 2022.
- TNG908: MTA-cooperative PRMT5 inhibitor for MTAP-deleted tumors; Phase 1/2 trial enrolling. Management expected a dose-escalation, proof-of-mechanism update in Q2 2023.
- TNG462: Next-generation PRMT5 inhibitor. FDA cleared its IND and granted Fast Track designation in Q1 2023; trial initiation was planned for mid-2023. GBM is excluded because the drug is not expected to cross the blood-brain barrier.
- TNG260: CoREST inhibitor for STK11-mutant cancers, planned in combination with pembrolizumab; IND filing planned for the first half of 2023.
- TNG348: USP1 inhibitor for BRCA-mutant and other HRD+ cancers; IND filing planned for mid-2023.
Financial performance and liquidity
| Metric | FY 2022 | FY 2021 |
|---|---|---|
| Collaboration revenue | $24.9 million | $26.0 million |
| License revenue | None | $11.0 million |
| Total revenue | $24.9 million | $37.0 million |
| Research and development expense | $105.9 million | $77.6 million |
| General and administrative expense | $30.0 million | $17.6 million |
| Loss from operations | $(111.1) million | $(58.2) million |
| Net loss | $(108.2) million | $(58.2) million |
| Net loss per share, basic and diluted | $(1.23) | $(0.94) |
| Net cash used in operating activities | $(109.1) million | $(59.5) million |
Revenue was entirely collaboration and license revenue, principally from Gilead; there was no product revenue. Operating expenses rose 43% as research and development and general and administrative costs increased. R&D spending rose mainly with TNG462 and TNG260 development, personnel, and facilities; G&A growth reflected staffing, stock compensation, public-company insurance, and professional fees. The operating loss was approximately 4.5 times total revenue; no product gross margin is reported.
At December 31, 2022, cash and cash equivalents were $60.0 million and marketable securities were $306.2 million, totaling $366.1 million (excluding restricted cash). Current assets were $375.3 million versus current liabilities of $55.5 million. Total liabilities were $187.0 million, including $41.1 million of operating lease liabilities and $123.9 million of deferred revenue; the filing does not identify funded borrowings or debt. Accumulated deficit was $269.5 million.
Cash used in operations increased by $49.6 million year over year. Investing activities provided $26.4 million, primarily reflecting marketable-security transactions, while financing provided $1.6 million. Management said available cash, cash equivalents, and marketable securities were expected to fund operations and capital expenditures at least into 2025, subject to assumptions and potential changes in spending.
Material changes, outlook, and risks
- Total revenue declined $12.2 million, principally because 2021 included an $11.0 million Gilead program license fee; collaboration revenue decreased $1.2 million.
- Net loss widened by $49.9 million, while R&D expense increased $28.3 million and G&A expense increased $12.4 million.
- Gilead collaboration terms allow licensing options on up to 15 targets through August 2027. Tango reported two programs licensed and two option-extended; it may receive up to $410 million per program in potential milestones, plus royalties. These amounts are contingent, not assured revenue.
- The company expects continued significant losses and rising R&D costs. It expects to need substantial additional financing; no external funding was committed. A $100 million at-the-market offering facility was available, but no shares were sold under it in 2022.
- Key risks include clinical failure or delay, slow enrollment and competition for MTAP-deleted patients and trial sites, uncertain biomarker and diagnostic performance, regulatory uncertainty, and reliance on third parties. A single manufacturer supplied clinical drug substance and product, with operations outside the U.S.; the company cited supply-chain, geopolitical, pandemic, and climate exposure.
- In 2022, vendor work was interrupted by the war in Ukraine and reduced-capacity operations in Shanghai; management described the delays as temporary and limited to date. COVID-19 had contributed to slower-than-expected TNG908 enrollment.
- In March 2023, the company reported a brief interruption in access to funds held at Silicon Valley Bank; it stated that access had been restored. It also cited potential liquidity risks if banks holding its funds were to fail.
- The company reported no material pending or threatened litigation, effective disclosure controls, and effective management-assessed internal control over financial reporting. The independent auditor did not provide an internal-control attestation because of the emerging-growth-company exemption.
Important facts for investors to verify
- Latest cash, marketable securities, quarterly cash burn, and whether the stated runway into 2025 remains valid.
- Clinical enrollment, safety, pharmacokinetics, target engagement, and efficacy data for TNG908 and TNG462; confirm whether preliminary data change with follow-up.
- Whether planned trial starts and IND filings for TNG462, TNG260, and TNG348 occurred on schedule, and how program prioritization affects timelines.
- Manufacturing diversification, clinical supply sufficiency, and progress in addressing sole-source and international supply-chain exposure.
- Gilead option exercises, milestone conditions, and the timing of collaboration revenue recognition; potential milestones and royalties are not guaranteed.
- Potential dilution from future equity financing, including use of the ATM facility, and the company’s lease commitments of $61.2 million in undiscounted future payments.