PMV Pharmaceuticals, Inc. — Q3 2023 Form 10-Q
Reporting period: Three and nine months ended September 30, 2023. Unaudited interim financial statements. PMV is a clinical-stage precision oncology company developing small-molecule therapies targeting mutant p53; it has no approved products and has generated no revenue.
Financial results and liquidity
| Metric | Q3 2023 | Q3 2022 | Nine months 2023 | Nine months 2022 |
|---|---|---|---|---|
| Revenue | $0 | $0 | $0 | $0 |
| Research and development expense | $13.6m | $13.7m | $42.5m | $37.0m |
| General and administrative expense | $6.0m | $5.7m | $18.7m | $18.9m |
| Total operating expenses | $19.6m | $19.4m | $61.2m | $55.9m |
| Net loss | $16.6m | $18.2m | $53.2m | $54.0m |
| Net loss per share, basic and diluted | $0.34 | $0.40 | $1.13 | $1.18 |
| Net cash used in operating activities | Not separately stated | Not separately stated | $43.6m | $48.4m |
At September 30, cash, cash equivalents and marketable securities totaled $238.1m, versus $243.5m at December 31, 2022. Working capital was $194.6m. Total liabilities were $23.4m, including $12.7m of operating lease liabilities; the filing reports no borrowings or other debt. No operating margin is meaningful because the company has no revenue.
Changes and financing
- Q3 operating expenses rose $0.3m year over year, while net loss narrowed $1.6m, principally reflecting $1.9m higher net interest income. Interest income benefited from higher rates and investment balances.
- Nine-month R&D expense increased $5.5m, mainly from development costs for PC14586, increased personnel costs and stock-based compensation. Nine-month operating cash use decreased $4.9m year over year.
- Investing activities used $48.0m in the first nine months, largely reflecting purchases of marketable securities, net of maturities. Financing activities provided $35.3m, principally from ATM stock sales.
- Through the ATM program, PMV sold 5.15m shares in the first nine months for $35.1m net proceeds; approximately $113.8m in gross issuance capacity remained at September 30. Shares outstanding increased from 45.77m at year-end 2022 to 51.16m at September 30, 2023.
Outlook, risks and other notable items
- Management expects substantial additional losses and increased investment in operations in the remainder of 2023 and 2024. It states in MD&A that available cash and investments should fund operations at least through 2025, but the liquidity note says funds are adequate for the next 12 months from issuance of the financial statements. These runway statements warrant reconciliation.
- PC14586 is the lead candidate and is in a Phase 1/2 trial. PMV reports FDA Fast Track designation and says its July 2023 End-of-Phase 1 meeting aligned on the recommended Phase 2 dose and key elements of the registrational Phase 2 portion of the PYNNACLE study. Updated Phase 1 data were presented in October 2023; this filing does not provide the data results.
- Management cannot reliably estimate the timing or cost of completing development, regulatory approval or commercialization. Funding may require additional equity, debt or collaborations; equity issuance could dilute shareholders, while debt or partnering may impose restrictions or require relinquishing rights.
- The Princeton headquarters lease runs through 2032. Future lease payments were reported at $16.45m on a present-value basis of $12.70m, net of stated reimbursements.
- The company reported no material litigation, no material changes to previously disclosed risk factors, effective disclosure controls, and no material change in internal control over financial reporting.
Investor facts to verify
- Clarify the difference between the stated runway through at least 2025 and the note’s 12-month liquidity assessment.
- Review the underlying October 2023 PC14586 clinical data and subsequent Phase 2 trial timing, enrollment and costs.
- Track cash burn, investment balances, and future use of the remaining ATM capacity, including dilution and share count.
- Assess whether planned development spending or clinical outcomes alter financing needs and the stated runway.