INTELLIA THERAPEUTICS, INC. Forward-looking Information
This Quarterly Report on Form 10-Q contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements may be identified by such forward-looking terminology as "may," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue" or the negative of these terms or other comparable terminology. Our forward-looking statements are based on a series of expectations, assumptions, estimates and projections about our company, are not guarantees of future results or performance and involve substantial risks and uncertainty. We may not actually achieve the plans, intentions or expectations disclosed in these forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in these forward-looking statements. Our business and our forward-looking statements involve substantial known and unknown risks and uncertainties, including the risks and uncertainties inherent in our statements regarding:
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our ability to execute our clinical study strategy for NTLA-2001, our program
for the treatment of transthyretin ("ATTR") amyloidosis, including the ability
to successfully complete our Phase 1 study and determine a recommended dose in
our ongoing Phase 1 study that can be advanced into later-stage studies, or the
success of such program;
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our ability to execute our clinical study strategy for NTLA-2002, our program
for the treatment of hereditary angioedema ("HAE"), including the ability to
successfully complete our Phase 1/2 study and determine a recommended dose that
can be advanced into later-stage studies, or the success of such program;
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the anticipated timing of our Investigational New Drug ("IND") or IND-equivalent filing for NTLA-3001, our program for the treatment of alpha-1 antitrypsin deficiency ("AATD")-associated lung disease, or the success of such program;
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our ability to successfully execute our development plans for our preclinical programs, including NTLA-2003 and NTLA-3001;
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our ability to use a modular platform capability or other strategies to efficiently discover and develop product candidates, including by applying learnings from one program to other programs;
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our ability to research, develop or maintain a pipeline of product candidates, including in vivo and ex vivo product candidates;
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our ability to manufacture or obtain materials for our preclinical and clinical studies, and our product candidates;
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our ability to advance any product candidates into, and successfully complete, clinical studies, including clinical studies necessary for regulatory approval and commercialization, and to demonstrate to the regulators that the product candidates are safe and effective and that their benefits outweigh known and potential risks for the intended patient population;
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our ability to advance our genome editing and therapeutic delivery capabilities;
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the scope of protection we are able to develop, establish and maintain for intellectual property rights, including patents and license rights, covering our product candidates and technology;
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our ability to operate, including commercializing products, without infringing or breaching the proprietary or contractual rights of others;
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the issuance or enforcement of, and compliance with, regulatory requirements and guidance regarding preclinical and clinical studies relevant to genome editing and our product candidates;
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the market acceptance, pricing and reimbursement of our product candidates, if approved;
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estimates of our expenses, future revenues, capital requirements and our needs for additional financing;
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the potential benefits of strategic agreements, such as collaborations, co-development and co-commercialization, acquisitions, dispositions, mergers, joint ventures, and investment agreements, and our ability to establish and maintain strategic arrangements under favorable terms;
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our ability to acquire and maintain relevant intellectual property licenses and rights, and the scope and terms of such rights;
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developments relating to our licensors, licensees, third parties and ventures from which we derive or license rights, as well as collaborators, competitors and our industry; and
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other risks and uncertainties, including those listed under the caption "Risk Factors."
All of our express or implied forward-looking statements are as of the date of this Quarterly Report on Form 10-Q only. In each case, actual results may differ materially from such forward-looking information. We can give no assurance that such expectations or forward-looking statements will prove to be correct. An occurrence of or any material adverse change in one or more of the risk factors or risks and uncertainties referred to in this Quarterly Report on Form 10-Q or included in our other public disclosures or our other periodic reports or other documents or filings filed with or furnished to theSecurities and Exchange Commission (the "SEC") could materially and adversely affect our business, prospects, financial condition and results of operations. Except as required by law, we do not undertake or plan to update or revise any such forward-looking statements to reflect actual results, changes in plans, assumptions, estimates or projections or other circumstances affecting such forward-looking statements occurring after the date of this Quarterly Report on Form 10-Q, even if such results, changes or circumstances make it clear that any forward-looking information will not be realized. Any public statements or disclosures by us following this Quarterly Report on Form 10-Q that modify or impact any of the forward-looking statements contained in this Quarterly Report on Form 10-Q will be deemed to modify or supersede such statements in this Quarterly Report on Form 10-Q. Management OverviewIntellia Therapeutics, Inc. ("we," "us," "our," "Intellia," or the "Company") is a leading clinical-stage genome editing company, focused on developing potentially curative therapeutics using CRISPR/Cas9-based technologies. CRISPR/Cas9, an acronym for Clustered, Regularly Interspaced Short Palindromic Repeats ("CRISPR")/CRISPR associated 9 ("Cas9"), is a technology for genome editing, the process of altering selected sequences of genomic deoxyribonucleic acid ("DNA"). To fully realize the transformative potential of CRISPR/Cas9-based technologies, we are building a full-spectrum genome editing company, by leveraging our modular platform, to advance in vivo and ex vivo therapies for diseases with high unmet need by pursuing two primary approaches. For in vivo applications to address genetic diseases, we deploy CRISPR/Cas9 as the therapy that targets cells within the body. In parallel, we are developing ex vivo applications to address immuno-oncology and autoimmune diseases, where we use CRISPR/Cas9 as the tool to create the engineered cell therapy. Our deep scientific, technical and clinical development experience, along with our robust intellectual property ("IP") portfolio, have enabled us to unlock broad therapeutic applications of CRISPR/Cas9 and related technologies to create new classes of genetic medicine. Our management's discussion and analysis of our financial condition and results of operations are based upon our unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q, which have been prepared by us in accordance with accounting principles generally accepted inthe United States of America ("U.S. GAAP") for interim periods and with Regulation S-X, promulgated under the Securities Exchange Act of 1934, as amended. This discussion and analysis should be read in conjunction with the unaudited condensed consolidated financial statements and the notes thereto included elsewhere in this Quarterly Report on Form 10-Q as well as in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K ("Annual Report") for the year endedDecember 31, 2022 . Treating-and potentially curing-a broad range of severe diseases will require multiple gene editing approaches. With proprietary CRISPR/Cas9-based technology at the core of our platform, we continue to add new capabilities to expand our current solutions for addressing a multitude of life-threatening diseases. These additions include our proprietary base editor and DNA writing technology, as well as novel CRISPR enzymes, which provide us with the capabilities to achieve multiple editing strategies.
We continue to advance our platform's modular solutions and research efforts on genome editing technologies as well as delivery and cell engineering capabilities to generate additional development candidates.
Our mission is to transform the lives of people with severe diseases by developing curative genome editing treatments. We believe we can deliver on our mission and provide long-term benefits for all of our stakeholders by focusing on four key elements:
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Develop curative CRISPR/Cas9-based medicines;
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Advance our science;
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Be the best place to make therapies; and
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Focus on long-term sustainability.
Our strategy is to advance our full-spectrum genome editing company, focused on developing and commercializing curative CRISPR/Cas9-based therapeutics, by leveraging our modular platforms. All of our revenue to date has been collaboration revenue. Since our inception and throughMarch 31, 2023 , we have raised an aggregate of approximately$2,400.1 million to fund our operations through our initial public offering ("IPO") and concurrent private placements, follow-on public offerings, at-the-market offerings, and the sale of convertible preferred stock, as well as through our collaboration agreements. Our lead in vivo candidates, NTLA-2001 for the treatment of transthyretin ("ATTR") amyloidosis and NTLA-2002 for the treatment of hereditary angioedema ("HAE"), are the first CRISPR/Cas9-based therapy candidates to be administered systemically, via intravenous infusion, for precision editing of a gene in a target tissue in humans. In parallel, we are advancing multiple ex vivo programs, wholly owned and in collaboration with partners, for the treatment of immuno-oncology and autoimmune diseases.
Our Pipeline
In Vivo Programs
Our selection criteria include identifying diseases that originate in the liver;
have well-defined mutations that can be addressed by a knockout or insertion
approach; have readily measurable therapeutic endpoints with observable clinical
responses; and for which effective treatments are absent, limited or unduly
burdensome. Our initial in vivo indications target genetic liver diseases,
including our ATTR amyloidosis, HAE and alpha-1 antitrypsin deficiency ("AATD")
development programs. Our current efforts on in vivo delivery focus on the use
of lipid nanoparticles ("LNPs") for delivery of the CRISPR/Cas9 complex to the
liver.
Transthyretin ("ATTR") Amyloidosis Program
NTLA-2001 is the first investigational CRISPR-based therapy to be systemically
delivered to edit genes inside the human body and has the potential to be the
first single-dose treatment for ATTR amyloidosis. Delivered with our in vivo LNP
technology, NTLA-2001 offers the possibility of halting and reversing the
disease by driving a deep, consistent and potentially lifelong reduction in
transthyretin ("TTR") protein after a single dose. NTLA-2001 is being evaluated
in a Phase 1, two-part, open-label study in adults with hereditary transthyretin
amyloidosis. The trial consists of two arms; one arm to evaluate NTLA-2001 for
ATTR with cardiomyopathy ("ATTR-CM") and the other arm for ATTR with
polyneuropathy ("ATTRv-PN").
In the ATTR-CM arm, we plan to submit an Investigational New Drug ("IND")
application in mid-2023. Subject to regulatory feedback, we plan to initiate a
global pivotal trial for ATTR-CM by the end of 2023. We plan to present
additional data from the ATTR-CM arm of the Phase 1 study in 2023, including
longer-term safety and durability data, as well as emerging clinical endpoints.
In the ATTRv-PN arm, in the first quarter of 2023, the planned enrollment of the
dose-expansion portion of the ATTRv-PN arm in the Phase 1 study was completed to
inform a pivotal study. We are preparing for a global pivotal study, which
includes discussions with regulatory authorities. We recently began redosing
patients in the 0.1 mg/kg cohort (n=3), the initial cohort and lowest dose
tested in the dose-escalation portion of the Phase 1 study, with the 55 mg dose
selected for the dose-expansion cohort. We plan to present additional clinical
data from the ATTRv-PN arm of the Phase 1 study in 2023.
NTLA-2001 is the subject of a co-development and co-promotion ("Co/Co")
agreement directed to our first collaboration target with Regeneron
Pharmaceuticals, Inc. ("Regeneron"), ATTR (the "ATTR Co/Co"), for which we are
the clinical and commercial lead party and Regeneron is the participating party.
Regeneron shares in approximately 25% of worldwide development costs and
commercial profits for the ATTR program. For more information regarding our
collaboration with Regeneron, see Note 7, "Collaborations and Other
Arrangements" of our condensed consolidated financial statements appearing
elsewhere in this Quarterly Report on Form 10-Q.
Hereditary Angioedema ("HAE") Program
NTLA-2002 is our wholly owned candidate for the treatment of HAE. NTLA-2002 is
designed to knock out the kallikrein B1 ("KLKB1") gene in the liver, with the
potential to permanently reduce total plasma kallikrein protein and activity, a
key mediator of HAE. This investigational approach aims to prevent attacks for
people living with HAE by providing continuous reduction of
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plasma kallikrein activity, following a single dose. It also aims to eliminate
the significant treatment burden associated with currently available HAE
therapies. NTLA-2002 is being evaluated in a Phase 1/2 study in adults with Type
I or Type II HAE.
On May 4, 2023 , we announced that the first patient has been dosed in the global
Phase 2 portion of our Phase 1/2 clinical trial of NTLA-2002. Based on
encouraging study interest from both investigators and patients, we expect to
complete enrollment (n=25) in the second half of 2023. In March, we announced
that the U.S. Food and Drug Administration ("FDA") cleared our NTLA-2002 Phase 2
IND application. Additionally, the FDA granted Regenerative Medicine Advanced
Therapy ("RMAT") designation to NTLA-2002 for the treatment of HAE. In January
2023 , we were awarded the Innovation Passport for NTLA-2002 by the U.K.
Medicines and Healthcare products Regulatory Agency ("MHRA"). We plan to present
additional clinical data from the Phase 1 portion of the first-in-human study in
2023. Data expected to be presented include updated safety, durability of
pharmacodynamic effect and attack-rate measures from all three patient cohorts.
Alpha-1 Antitrypsin Deficiency ("AATD") Program
NTLA-3001 for associated lung disease:
NTLA-3001 is our wholly owned, first-in-class CRISPR-mediated in vivo targeted
gene insertion development candidate for the treatment of AATD-associated lung
disease. It is designed to precisely insert a healthy copy of the SERPINA1 gene,
which encodes the alpha-1 antitrypsin ("A1AT") protein, with the potential to
restore permanent expression of functional A1AT protein to therapeutic levels
after a single dose. Our approach seeks to improve patient outcomes, including
eliminating the need for weekly intravenous infusions of A1AT augmentation
therapy or lung transplant in severe cases. We are conducting IND-enabling
activities for NTLA-3001 and we plan to submit an IND or IND-equivalent
application in the second half of 2023.
NTLA-2003 for associated liver disease:
NTLA-2003 is our wholly owned, in vivo knockout development candidate for the treatment of AATD-associated liver disease. It is designed to inactivate the SERPINA1 gene responsible for the production of abnormal A1AT protein in the liver. This approach aims to halt the progression of liver disease and eliminate the need for liver transplant in severe cases. We plan to complete the ongoing IND-enabling activities for NTLA-2003 by the end of 2023.
In Vivo Research Programs
We continue to work on various liver-focused programs, such as hemophilia A and
hemophilia B, which we are co-developing with Regeneron, as well as other liver
targets, which we are working on both independently and in partnership with
Regeneron, that would leverage our capabilities to knockout, insert and make
consecutive edits to the genome.
We are further investigating delivery strategies that target tissues outside of
the liver. For example, we have presented preclinical data establishing
proof-of-concept for non-viral genome editing of bone marrow and hematopoietic
stem cells ("HSCs") in mice. This represented our first demonstration of
systemic in vivo genome editing in bone marrow using our proprietary non-viral
delivery platform. We believe these results extend our modular in vivo
capabilities to treat inherited blood disorders such as sickle cell disease. In
addition, we are collaborating with SparingVision SAS ("SparingVision") to
develop novel genomic medicines utilizing CRISPR/Cas9 technology for the
treatment of ocular diseases.
Ex Vivo Programs
We are advancing multiple preclinical programs, wholly owned and in
collaboration with partners, utilizing our allogeneic platform for the treatment
of immuno-oncology and autoimmune diseases. Our proprietary allogeneic cell
engineering platform is designed to avoid both T cell- and natural killer ("NK")
cell-mediated rejection, a key unsolved challenge with other investigational
allogeneic approaches.
Collaborations and Other Arrangements
To accelerate the development and commercialization of CRISPR/Cas9-based products in multiple therapeutic areas, we have formed, and intend to seek other opportunities to form, strategic alliances with collaborators who can augment our leadership in CRISPR/Cas9 therapeutic development. We have existing collaboration agreements with Regeneron,AvenCell Therapeutics, Inc. , SparingVision,Kyverna Therapeutics, Inc. ("Kyverna"), andONK Therapeutics, Ltd ("ONK"). See Note 7, "Collaborations and Other Arrangements" of our condensed consolidated financial statements of this Quarterly Report on Form 10-Q for additional information related to the terms of the agreements between us and our collaborators. 23
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Financial Overview
Collaboration Revenue
Our revenue consists of collaboration revenue, including amounts recognized related to upfront technology access payments for licenses, technology access fees, research materials shipped, research funding and milestone payments earned under our collaboration and license agreements.
Research and Development
Research and development expenses consist of expenses incurred in performing research and development activities, such as compensation and benefits, which includes equity-based compensation, for full-time research and development employees, allocated facility-related expenses, overhead expenses, license and milestone fees, contract research, development and manufacturing services, clinical trial costs and other related costs.
General and Administrative
General and administrative expenses consist primarily of compensation and benefits, including equity-based compensation, for our executive, finance, legal, human resources, business development and support functions. Also included in general and administrative expenses are allocated facility-related costs not otherwise included in research and development expenses, travel expenses and professional fees for auditing, tax and legal services, including IP-related legal services, and other consulting fees and expenses.
Other Income (Expense), Net
Other income (expense) consists of interest income earned on our cash, cash equivalents, restricted cash equivalents and marketable securities, loss from equity method investment and change in fair value of contingent consideration.
Results of Operations
The following discussion of the financial condition and results of operations should be read in conjunction with the accompanying condensed consolidated financial statements and the related footnotes thereto.
Comparison of Three Months Ended
The following table summarizes our results of operations for the three months
ended
Three Months Ended March 31, Period-to-
2023 2022 Period Change
(In thousands)
Collaboration revenue $ 12,606 $ 11,252 $ 1,354
Operating expenses:
Research and development 97,116 133,095 (35,979 )
General and administrative 27,448 22,403 5,045
Total operating expenses 124,564 155,498 (30,934 )
Operating loss (111,958 ) (144,246 ) 32,288
Other income (expense), net:
Interest income 11,980 540 11,440
Loss from equity method investment (3,048 ) (2,745 ) (303 )
Change in fair value of contingent
consideration (100 ) (421 ) 321
Total other income (expense), net 8,832 (2,626 ) 11,458
Net loss $ (103,126 ) $ (146,872 ) $ 43,746 Collaboration Revenue
Collaboration revenue increased by$1.4 million to$12.6 million during the three months endedMarch 31, 2023 , as compared to$11.3 million during the three months endedMarch 31, 2022 . The increase in collaboration revenue during the three months endedMarch 31, 2023 is primarily due to revenue from our license and collaboration agreements with Kyverna and SparingVision. See Note 7, "Collaborations and Other Arrangements" of our condensed consolidated financial statements appearing elsewhere in this Quarterly Report on Form 10-Q for further details. 24
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Research and Development
Research and development expenses decreased by
The following table summarizes our research and development expenses for the three months endedMarch 31, 2023 and 2022, together with the changes in those items in dollars and the respective percentages of change: Three Months Ended March 31, Period-to- Percent 2023 2022 Period Change Change (In thousands) External development expenses by program: NTLA-2001$ 9,730 $ 8,572 $ 1,158 14 % NTLA-2002 4,154 1,700 2,454 144 % NTLA-3001 3,937 1,574 2,363 150 % NTLA-5001 - 5,122 (5,122 ) -100 % Unallocated research and development expenses: Employee-related expenses 35,069 24,712 10,357 42 % Research materials and contracted services 11,809 16,055 (4,246 ) -26 % In-process research and development - 55,990 (55,990 ) -100 % Rewrite research milestone 874 - 874 - Facility-related expenses 13,351 8,525 4,826 57 % Stock-based compensation 16,931 10,274 6,657 65 % Other 1,261 571 690 121 % Total research and development expenses$ 97,116 $ 133,095 $ (35,979 ) -27 % The decrease in research and development expenses for the three months endedMarch 31, 2023 compared to the three months endedMarch 31, 2022 was primarily attributable to:
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a$4.2 million decrease in research materials and contracted services primarily driven by a decrease in drug component expenses, partially offset by an increase in contracted services to support our pipeline;
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General and Administrative
General and administrative expenses increased by$5.0 million to$27.4 million during the three months endedMarch 31, 2023 , compared to$22.4 million during the three months endedMarch 31, 2022 . This increase was primarily related to employee-related expenses, including an increase in stock-based compensation of$2.1 million , driven by our larger workforce. 25
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Other Income (Expense), Net
The increase in other income (expense) of
Liquidity and Capital Resources
Since our inception throughMarch 31, 2023 , we have raised an aggregate of approximately$2,400.1 million to fund our operations through our collaboration agreements, our initial public offering and concurrent private placements, follow-on public offerings, at-the-market offerings and the sale of convertible preferred stock.
As of
We are eligible to earn a significant amount of milestone payments and royalties, in each case, on a per-product basis under our collaborations withNovartis Institutes for BioMedical Research, Inc. ("Novartis"), SparingVision and ONK, on a per-target basis under our collaboration with Regeneron and upon achievement of certain events under our collaboration with Kyverna. Our ability to earn these milestone payments and the timing of achieving these milestones is dependent upon the outcome of our research and development activities and is uncertain at this time. Our rights to payments under our collaboration agreements are our only committed external source of funds.
At-the-Market Offering Programs
InAugust 2019 , we entered into an Open Market Sale Agreement (the "2019 Sale Agreement") withJefferies LLC ("Jefferies"), under which Jefferies was able to offer and sell, from time to time in "at-the-market" offerings, shares of our common stock having aggregate gross proceeds of up to$150.0 million . We agreed to pay to Jefferies cash commissions of 3.0% of the gross proceeds of sales of common stock under the 2019 Sale Agreement. During the first quarter of 2022, we issued 579,788 shares of our common stock in a series of sales at an average price of$69.43 per share in accordance with the 2019 Sale Agreement, for aggregate net proceeds of$38.9 million after payment of cash commissions to Jefferies and approximately$0.2 million related to legal, accounting and other fees in connection with the sales. The 2019 Sale Agreement expired in the third quarter of 2022. InMarch 2022 , we entered into an Open Market Sale Agreement (the "2022 Sale Agreement") with Jefferies, under which Jefferies is able to offer and sell, from time to time in "at-the-market" offerings, shares of our common stock having aggregate gross proceeds of up to$400.0 million . We agreed to pay to Jefferies cash commissions of 3.0% of the gross proceeds of sales of common stock under the 2022 Sale Agreement. During the year endedDecember 31, 2022 , we issued 3,395,339 shares of our common stock, in a series of sales, at an average price of$57.43 per share, in accordance with the 2022 Sale Agreement for aggregate net proceeds of$189.0 million , after payment of cash commissions to Jefferies and approximately$0.1 million related to legal, accounting and other fees in connection with the sales. During the quarter endedMarch 31, 2023 , we issued 35,349 shares of our common stock, in a series of sales, at an average price of$44.58 per share, in accordance with the 2022 Sale Agreement for aggregate net proceeds of$1.5 million , after payment of cash commissions to Jefferies and approximately$0.1 million related to legal, accounting and other fees in connection with the sales. As ofMarch 31, 2023 ,$203.4 million in shares of common stock remain eligible for sale under the 2022 Sale Agreement.
Funding Requirements
Our primary uses of capital are, and we expect will continue to be, research and
development research materials and contracted services, clinical trial costs,
compensation and related expenses, laboratory and office facilities, research
supplies, legal and regulatory expenses, patent prosecution filing and
maintenance costs for our licensed IP, milestone and royalty payments and
general overhead costs. During 2023, we expect our expenses to increase compared
to prior periods in connection with our ongoing activities as we continue to
grow our research and development team, develop our clinical programs and
advance additional programs into clinical development.
Because our lead programs are still in the early clinical stage and the outcome
of these efforts is uncertain, we cannot estimate the actual amounts necessary
to successfully complete the development and commercialization of any future
product candidates or whether, or when, we may achieve profitability. Until such
time as we can generate substantial product revenues, if ever, we
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expect to finance our ongoing cash needs through equity financings and
collaboration arrangements. We receive cost reimbursements from Regeneron for
the ATTR and hemophilia programs. Additionally, we are eligible to earn
milestone payments and royalties, in each case, on a per-product basis under our
collaborations with Novartis, SparingVision and ONK, on a per-target basis under
our collaboration with Regeneron, and upon achievement of certain events with
Kyverna, subject to the provisions of our agreements with each of them. Except
for these sources of funding, we will not have any committed external source of
liquidity. To the extent that we raise additional capital through the future
sale of equity, the ownership interest of our stockholders will be diluted, and
the terms of these securities may include liquidation or other preferences that
adversely affect the rights of our existing stockholders. If we raise additional
funds through collaboration arrangements in the future, we may have to
relinquish valuable rights to our technologies, future revenue streams or
product candidates or grant licenses on terms that may not be favorable to us.
If we are unable to raise additional funds through equity financings when
needed, we may be required to delay, limit, reduce or terminate our product
development or future commercialization efforts or grant rights to develop and
market product candidates that we would otherwise prefer to develop and market
ourselves.
Outlook
Based on our research and development plans and our expectations related to the
progress of our programs, we expect that our cash, cash equivalents and
marketable securities as of March 31, 2023 , as well as research and cost
reimbursement funding from our collaboration agreements, will enable us to fund
our ongoing operating expenses and capital expenditure requirements beyond the
next 24 months, excluding any potential milestone payments or extension fees
that could be earned and distributed under our collaboration agreements or any
strategic use of capital not currently in the base case planning assumptions. We
have based this estimate on current assumptions that may prove to be wrong, and
we could use our capital resources sooner than we expect.
Our ability to generate revenue and achieve profitability depends significantly
on our success in many areas, including: developing our delivery technologies
and our CRISPR/Cas9 technology platform; selecting appropriate product
candidates to develop; completing research and preclinical and clinical
development of selected product candidates; obtaining regulatory approvals and
marketing authorizations for product candidates for which we complete clinical
trials; developing a sustainable and scalable manufacturing process for product
candidates; launching and commercializing product candidates for which we obtain
regulatory approvals and marketing authorizations, either directly or with a
collaborator or distributor; obtaining market acceptance of our product
candidates; addressing any competing technological and market developments;
negotiating favorable terms in any collaboration, licensing, or other
arrangements into which we may enter; maintaining good relationships with our
collaborators and licensors; maintaining, protecting, and expanding our
portfolio of IP rights, including patents, trade secrets, and know-how; and
attracting, hiring, and retaining qualified personnel.
Cash Flows
The following is a summary of cash flows for the three months endedMarch 31, 2023 and 2022: March 31, 2023 2022 (In millions) Net cash used in operating activities$ (109.3 ) $ (79.8 )
Net cash (used in) provided by investing activities (122.2 ) 47.5 Net cash provided by financing activities
2.2 47.3
Net cash used in operating activities
Net cash used in operating activities of$109.3 million during the three months endedMarch 31, 2023 primarily reflects the increased spend in our research and development activities, offset in part by the receipt of$3.4 million in payments from our collaboration partners during that period. Net cash used in operating activities of$79.8 million during the three months endedMarch 31, 2022 primarily reflects the increased spend in our research and development activities, offset in part by the receipt of$2.0 million in payments from our collaboration partners during that period. 27
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Net cash (used in) provided by investing activities
During the three months endedMarch 31, 2023 , our investing activities used cash of$122.2 million . The decrease in the three months endedMarch 31, 2023 is primarily due to$382.0 million in marketable securities purchased, offset in part by$263.6 million of marketable securities maturing, and$3.8 million in cash for the purchase of property and equipment. Cash provided by investing activities in the three months endedMarch 31, 2022 is primarily due to$93.7 million in marketable securities maturing, offset in part by$44.8 million in net cash for the acquisition of Rewrite and$1.4 million in cash for the purchase of property and equipment.
Net cash provided by financing activities
Net cash provided by financing activities of$2.2 million during the three months endedMarch 31, 2023 includes$1.5 million in net proceeds from at-the-market offerings and$0.8 million in cash received from the exercise of stock options. Net cash provided by financing activities of$47.3 million during the three months endedMarch 31, 2022 includes$38.9 million in net proceeds from at-the-market offerings and$8.4 million in cash received from the exercise of stock options. Critical Accounting Policies Our critical accounting policies require the most significant judgments and estimates in the preparation of our condensed consolidated financial statements. Management has determined that our most critical accounting policies are those relating to revenue recognition, accrued research and development expenses, contingent consideration and equity-based compensation. There have been no changes to our critical accounting policies from those which were discussed in our Annual Report for the year endedDecember 31, 2022 .
Recent Accounting Pronouncements
Please read Note 2, "Summary of Significant Accounting Policies", to our condensed consolidated financial statements included in Part I, Item 1, "Notes to Condensed Consolidated Financial Statements," of this Quarterly Report on Form 10-Q for a description of recent accounting pronouncements applicable to our business. Contractual Obligations There were no material changes to our contractual obligations during the three months endedMarch 31, 2023 . For a complete discussion of our contractual obligations, please refer to our Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report for the year endedDecember 31, 2022 .
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