NUVB

Key Financial Metrics

Note: Debt figures include the Revenue Interest Financing Agreement liability ($159.8 million) and Long-term borrowings ($47.3 million).

Material Changes vs. Prior Period

• Revenue Surge: Total revenue increased by approximately 2,596% year-over-year, driven primarily by a $58.7 million upfront payment from a new license agreement with Eisai Co., Ltd. and the commencement of U.S. product sales for IBTROZI ($18.5 million).
• Profitability: The company reported a net income of $5.4 million in Q1 2026, a significant turnaround from a net loss of $53.2 million in Q1 2025. This was aided by a $2.9 million non-cash gain from the expiration of warrant liabilities.
• Operating Expenses: Total costs and expenses rose to $79.3 million from $62.1 million. Research and Development (R&D) expenses increased by $10.4 million due to higher third-party clinical trial costs and headcount. Selling, General, and Administrative (SG&A) expenses increased by $2.9 million.
• Warrant Liability: All outstanding warrants expired on February 10, 2026, resulting in the derecognition of the liability and a corresponding gain in the current quarter.

Guidance, Outlook, and Risks

Management Commentary and Outlook

• Liquidity: Management believes existing cash, cash equivalents, and marketable securities ($533.7 million) are sufficient to fund operations for at least the next 12 months.
• Commercialization: The company is actively commercializing IBTROZI in the U.S. and has partnered with Eisai for commercialization in Europe and other territories. The European Medicines Agency (EMA) validated the Marketing Authorisation Application (MAA) for taletrectinib in March 2026.
• Pipeline: Safusidenib is advancing in the SIGMA Phase 3 study for IDH1-mutant astrocytoma. The company plans to present new data at the AACR Annual Meeting in April 2026.

Risks and Contingencies

• Commercial Execution: Success is heavily dependent on the commercial performance of IBTROZI. The company has limited experience as a commercial entity.
• Debt Obligations: The company has significant debt obligations, including a $150 million Revenue Interest Financing Agreement with Sagard (requiring tiered royalty payments on U.S. net sales) and a $100 million senior secured term loan. Failure to meet covenants or generate sufficient revenue could trigger default.
• Regulatory and IP: Risks include potential withdrawal of regulatory approvals, failure to meet post-marketing commitments, and challenges in enforcing intellectual property rights.
• Geopolitical: Operations in China expose the company to trade tensions, tariffs, and evolving data security regulations.

Investor Verification Checklist

• Eisai Agreement Terms: Verify the specific milestones and royalty rates associated with the $58.7 million upfront payment and the $170 million in potential future milestones.
• IBTROZI Sales Trajectory: Monitor quarterly product revenue growth to assess market penetration and the ability to service the Sagard royalty financing.
• Debt Covenants: Review the financial covenants in the Sagard Loan Agreement (e.g., minimum cash balance of $25 million) to ensure compliance.
• Regulatory Milestones: Track the status of the EMA review for taletrectinib and the progress of the SIGMA Phase 3 study for safusidenib.
• Warrant Expiration: Confirm that the $2.9 million gain from warrant expiration is a one-time non-cash event and does not reflect recurring operational performance.