Altimmune, Inc. — Q1 2022 Form 10-Q
Reporting period: Three months ended March 31, 2022; filed May 12, 2022. Financial statements are unaudited. Altimmune is a clinical-stage biopharmaceutical company developing treatments for obesity and liver diseases, including pemvidutide and HepTcell. It has not generated product-sales revenue.
Key financial metrics
Amounts in millions, except per-share data.
| Metric | Q1 2022 | Q1 2021 / prior date |
|---|---|---|
| Revenue | $0.032 | $0.838 |
| Research and development expense | $15.104 | $11.878 |
| General and administrative expense | $4.427 | $3.821 |
| Total operating expenses | $19.531 | $15.699 |
| Operating loss | $(19.499) | $(14.861) |
| Net loss | $(19.430) | $(14.864) |
| Net loss per share, basic and diluted | $(0.44) | $(0.38) |
| Net cash used in operating activities | $(13.526) | $(19.569) |
| Cash, cash equivalents and restricted cash | $179.981 at Mar. 31, 2022 | $190.335 at Dec. 31, 2021 |
| Total assets / total liabilities | $205.660 / $20.792 | $218.865 / $19.730 at Dec. 31, 2021 |
There was no product-sales revenue. The small amount recorded in Q1 2022 was grant-related. No interest-bearing debt balance is presented; reported liabilities include $1.437 million of operating lease obligations and $4.310 million of contingent consideration. No gross-margin figure is meaningful or reported.
Material changes versus the prior comparable period
- Revenue declined $0.806 million, or 96%, mainly because prior-year MTEC grant revenue was not repeated and T-COVID development had been discontinued. BARDA did not extend its NasoShield contract beyond December 2021.
- R&D expense rose $3.226 million, or 27%. Higher pemvidutide development costs (including ongoing NAFLD studies and preparation/initiation of the obesity trial) and HepTcell costs were partly offset by lower COVID-program costs and a reduction in the fair value of contingent consideration.
- G&A expense increased $0.606 million, or 16%, primarily due to higher stock-based compensation. Net loss widened by $4.566 million.
- Operating cash use was lower than in Q1 2021. Investing cash flow was nearly zero versus $19.165 million provided in Q1 2021, when short-term investment maturities and sales generated cash. Financing provided $3.181 million, mainly from ATM share sales, versus $34.419 million in the prior-year quarter.
Liquidity, outlook, risks and unusual items
- Management stated that cash on hand at March 31, together with expected income-tax refunds and R&D incentives, was sufficient to fund planned operations for at least 12 months from the financial statements’ issuance date. The company has an accumulated deficit of $312.6 million and expects to need additional capital over the longer term; it may pursue equity or debt financing, government funding, partnerships or asset sales.
- The ATM program had $55.0 million of remaining capacity at March 31. Altimmune sold 335,485 shares for approximately $3.0 million net during the quarter. The company also reported 869,566 unexercised pre-funded warrants at quarter-end.
- On April 26, 2022, the first patient was dosed in the Phase 2 MOMENTUM obesity trial, triggering the $3.0 million Phase 2 milestone obligation to former Spitfire shareholders. The milestone is payable in common stock under the merger agreement; it is a subsequent event, not a Q1-period achievement.
- Management cited clinical-development execution, the need for future funding, and possible COVID-related trial, supply-chain or cost disruptions. It reported no material COVID-19 impact in Q1 and did not expect a material effect on regulatory timelines based on information then available. The Russia-Ukraine conflict had no direct company exposure and was not then expected to materially affect operations, but broader economic, supply-chain, currency, interest-rate and cybersecurity effects remained possible.
- A plaintiff’s lawsuit was refiled in Maryland; Altimmune said it considered the allegations meritless and intended to defend itself. The filing states that other ordinary-course matters were not reasonably possible or probable to result in material loss. The company reported no material changes to its previously disclosed risk factors.
- Disclosure controls were assessed as effective, with no material change in internal control over financial reporting during the quarter.
Important facts for investors to verify
- Whether clinical progress and spending for pemvidutide and HepTcell remain consistent with management’s plans and cash-runway assumptions.
- The timing and share count used to settle the Phase 2 milestone triggered after quarter-end, and the resulting dilution.
- Future ATM issuance, remaining program capacity, and the potential dilution from outstanding warrants, options and restricted stock units.
- Whether expected tax refunds and R&D incentives are received as anticipated, and whether additional financing or partnerships become necessary.
- Developments in the Maryland litigation and any material changes to clinical, regulatory, supply-chain or other disclosed risks.