10-Q 1 ccxi-20220630.htm 10-Q 10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

Form 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

 

Commission File Number: 001-35420

ChemoCentryx, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

Delaware

94-3254365

(State or Other Jurisdiction of

Incorporation or Organization)

(I.R.S. Employer

Identification No.)

 

 

835 Industrial Road, Suite 600

San Carlos, California

94070

(Address of Principal Executive Offices)

(Zip Code)

 

(650) 210-2900

(Registrant’s Telephone Number, Including Area Code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.001 per share

CCXI

The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No ☒

The number of outstanding shares of the registrant’s common stock, par value $0.001 per share, as of July 29, 2022 was 71,355,872.

 

 

 


 

CHEMOCENTRYX, INC.

 

QUARTERLY REPORT ON FORM 10-Q

For the quarterly period ended June 30, 2022

Table of Contents

 

PART I. FINANCIAL INFORMATION

Page

 

 

 

Item 1.

Financial Statements (Unaudited)

3

 

 

 

 

Condensed Consolidated Balance Sheets – June 30, 2022 and December 31, 2021

3

 

 

 

 

Condensed Consolidated Statements of Operations – Three and Six Months Ended June 30, 2022 and 2021

4

 

 

 

 

Condensed Consolidated Statements of Comprehensive Loss – Three and Six Months Ended June 30, 2022 and 2021

5

 

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity – Three and Six Months Ended June 30, 2022 and 2021

6

 

 

 

 

Condensed Consolidated Statements of Cash Flows – Six Months Ended June 30, 2022 and 2021

8

 

 

 

 

Notes to Condensed Consolidated Financial Statements

9

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

22

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

28

 

 

 

Item 4.

Controls and Procedures

29

 

 

PART II. OTHER INFORMATION

 

 

 

 

Item 1.

Legal Proceedings

30

 

 

 

Item 1A.

Risk Factors

30

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

31

 

 

 

Item 3.

Defaults Upon Senior Securities

31

 

 

 

Item 4.

Mine Safety Disclosures

31

 

 

 

Item 5.

Other Information

31

 

 

 

Item 6.

Exhibits

31

 

 

EXHIBIT INDEX

32

 

 

SIGNATURES

33

 

2


 

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CHEMOCENTRYX, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and par value data)

 

 

 

June 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

 

 

(unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

44,396

 

 

$

49,978

 

Short-term investments

 

 

284,219

 

 

 

214,514

 

Accounts receivable, net

 

 

4,759

 

 

 

411

 

Accounts receivable from related party

 

 

187

 

 

 

43

 

Inventory

 

 

5,474

 

 

 

851

 

Prepaid expenses and other current assets

 

 

6,137

 

 

 

3,380

 

Total current assets

 

 

345,172

 

 

 

269,177

 

Property and equipment, net

 

 

30,856

 

 

 

32,269

 

Long-term investments

 

 

17,551

 

 

 

97,856

 

Operating lease right-of-use assets

 

 

24,359

 

 

 

24,806

 

Other assets

 

 

1,452

 

 

 

1,544

 

Total assets

 

$

419,390

 

 

$

425,652

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

7,592

 

 

$

6,746

 

Accrued and other current liabilities

 

 

27,744

 

 

 

26,358

 

Long-term debt, current

 

 

19,720

 

 

 

18,920

 

Deferred revenue from related party

 

 

21,022

 

 

 

10,993

 

Total current liabilities

 

 

76,078

 

 

 

63,017

 

Long-term debt, net

 

 

4,005

 

 

 

4,715

 

Non-current deferred revenue from related party

 

 

57,299

 

 

 

24,772

 

Non-current lease liabilities

 

 

45,243

 

 

 

46,830

 

Other non-current liabilities

 

 

235

 

 

 

198

 

Total liabilities

 

 

182,860

 

 

 

139,532

 

Commitments (Note 7)

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Preferred stock, $0.001 par value, 10,000,000 shares authorized;
   
no shares issued and outstanding

 

 

 

 

 

 

Common stock, $0.001 par value, 200,000,000 shares authorized;
   
71,344,838 and 70,357,557 shares issued and outstanding at
   June 30, 2022 and December 31, 2021, respectively

 

 

71

 

 

 

70

 

Additional paid-in capital

 

 

926,141

 

 

 

903,646

 

Note receivable

 

 

(16

)

 

 

(16

)

Accumulated other comprehensive loss

 

 

(2,310

)

 

 

(483

)

Accumulated deficit

 

 

(687,356

)

 

 

(617,097

)

Total stockholders’ equity

 

 

236,530

 

 

 

286,120

 

Total liabilities and stockholders’ equity

 

$

419,390

 

 

$

425,652

 

 

See accompanying notes.

3


 

CHEMOCENTRYX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Product sales, net

 

$

9,093

 

 

$

 

 

$

14,446

 

 

$

 

Product supply sales to related party

 

 

866

 

 

 

 

 

$

866

 

 

 

 

Collaboration and license revenue from related party

 

 

1,804

 

 

 

1,699

 

 

 

1,910

 

 

 

11,922

 

Grant revenue

 

 

 

 

 

114

 

 

 

 

 

 

244

 

Total revenue

 

 

11,763

 

 

 

1,813

 

 

 

17,222

 

 

 

12,166

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

803

 

 

 

 

 

 

1,008

 

 

 

 

Research and development

 

 

14,355

 

 

 

20,853

 

 

 

31,831

 

 

 

44,271

 

Selling, general and administrative

 

 

28,179

 

 

 

19,698

 

 

 

54,190

 

 

 

35,960

 

Total operating expenses

 

 

43,337

 

 

 

40,551

 

 

 

87,029

 

 

 

80,231

 

Loss from operations

 

 

(31,574

)

 

 

(38,738

)

 

 

(69,807

)

 

 

(68,065

)

Other expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

509

 

 

 

224

 

 

 

731

 

 

 

529

 

Interest expense

 

 

(586

)

 

 

(695

)

 

 

(1,183

)

 

 

(1,384

)

Total other expense, net

 

 

(77

)

 

 

(471

)

 

 

(452

)

 

 

(855

)

Net loss

 

$

(31,651

)

 

$

(39,209

)

 

$

(70,259

)

 

$

(68,920

)

Net loss per common share

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted net loss per common share

 

$

(0.44

)

 

$

(0.56

)

 

$

(0.99

)

 

$

(0.99

)

Shares used to compute basic and diluted net loss per common share

 

 

71,234

 

 

 

69,788

 

 

 

71,035

 

 

 

69,698

 

 

See accompanying notes.

4


 

CHEMOCENTRYX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

 

(in thousands)

(unaudited)

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net loss

 

$

(31,651

)

 

$

(39,209

)

 

$

(70,259

)

 

$

(68,920

)

Unrealized loss on available-for-sale securities

 

 

(455

)

 

 

(67

)

 

 

(1,827

)

 

 

(195

)

Comprehensive loss

 

$

(32,106

)

 

$

(39,276

)

 

$

(72,086

)

 

$

(69,115

)

 

See accompanying notes.

5


 

CHEMOCENTRYX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

 

(in thousands, except share data)

(unaudited)

 

 

Common Stock

 

 

Additional
Paid-In

 

 

Note

 

 

Accumulated
Other
Comprehensive

 

 

Accumulated

 

 

Total
Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Receivable

 

 

Income (Loss)

 

 

Deficit

 

 

Equity

 

Balance as of March 31, 2022

 

 

71,142,102

 

 

$

71

 

 

$

916,224

 

 

$

(16

)

 

$

(1,855

)

 

$

(655,705

)

 

$

258,719

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(31,651

)

 

 

(31,651

)

Unrealized loss on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(455

)

 

 

 

 

 

(455

)

Issuance of common stock under
   equity incentive and employee
   stock purchase plans

 

 

202,736

 

 

 

 

 

 

1,782

 

 

 

 

 

 

 

 

 

 

 

 

1,782

 

Employee stock-based compensation

 

 

 

 

 

 

 

 

7,872

 

 

 

 

 

 

 

 

 

 

 

 

7,872

 

Compensation expense related to
    options granted to consultants

 

 

 

 

 

 

 

 

263

 

 

 

 

 

 

 

 

 

 

 

 

263

 

Balance as of June 30, 2022

 

 

71,344,838

 

 

$

71

 

 

$

926,141

 

 

$

(16

)

 

$

(2,310

)

 

$

(687,356

)

 

$

236,530

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Additional
Paid-In

 

 

Note

 

 

Accumulated
Other
Comprehensive

 

 

Accumulated

 

 

Total
Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Receivable

 

 

Income (Loss)

 

 

Deficit

 

 

Equity

 

Balance as of December 31, 2021

 

 

70,357,557

 

 

$

70

 

 

$

903,646

 

 

$

(16

)

 

$

(483

)

 

$

(617,097

)

 

$

286,120

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(70,259

)

 

 

(70,259

)

Unrealized loss on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,827

)

 

 

 

 

 

(1,827

)

Issuance of common stock upon net exercise of warrant

 

 

66,833

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock under
   equity incentive and employee
   stock purchase plans

 

 

1,006,303

 

 

 

1

 

 

 

8,060

 

 

 

 

 

 

 

 

 

 

 

 

8,061

 

Repurchased shares upon vesting of
    restricted stock units for tax
    withholdings

 

 

(85,855

)

 

 

 

 

 

(3,126

)

 

 

 

 

 

 

 

 

 

 

 

(3,126

)

Employee stock-based compensation

 

 

 

 

 

 

 

 

17,054

 

 

 

 

 

 

 

 

 

 

 

 

17,054

 

Compensation expense related to
    options granted to consultants

 

 

 

 

 

 

 

 

507

 

 

 

 

 

 

 

 

 

 

 

 

507

 

Balance as of June 30, 2022

 

 

71,344,838

 

 

$

71

 

 

$

926,141

 

 

$

(16

)

 

$

(2,310

)

 

$

(687,356

)

 

$

236,530

 

 

See accompanying notes.

 

 

6


 

CHEMOCENTRYX, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

 

(in thousands, except share data)

(unaudited)

 

 

 

Common Stock

 

 

Additional
Paid-In

 

 

Note

 

 

Accumulated
Other
Comprehensive

 

 

Accumulated

 

 

Total
Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Receivable

 

 

Income (Loss)

 

 

Deficit

 

 

Equity

 

Balance as of March 31, 2021

 

 

69,742,493

 

 

$

70

 

 

$

876,017

 

 

$

(16

)

 

$

(14

)

 

$

(515,053

)

 

$

361,004

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(39,209

)

 

 

(39,209

)

Unrealized loss on investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(67

)

 

 

 

 

 

(67

)

Issuance of common stock under
    equity incentive plans

 

 

148,865

 

 

 

 

 

 

1,099

 

 

 

 

 

 

 

 

 

 

 

 

1,099

 

Repurchased shares upon vesting of
    restricted stock units for tax
    withholdings

 

 

(5,383

)

 

 

 

 

 

(260

)

 

 

 

 

 

 

 

 

 

 

 

(260

)

Employee stock-based compensation

 

 

 

 

 

 

 

 

7,454

 

 

 

 

 

 

 

 

 

 

 

 

7,454

 

Compensation expense related
   to options granted to
   consultants

 

 

 

 

 

 

 

 

249

 

 

 

 

 

 

 

 

 

 

 

 

249

 

Balance as of June 30, 2021

 

 

69,885,975

 

 

$

70

 

 

$

884,559

 

 

$

(16

)

 

$

(81

)

 

$

(554,262

)

 

$

330,270

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Additional
Paid-In

 

 

Note

 

 

Accumulated
Other
Comprehensive

 

 

Accumulated

 

 

Total
Stockholders'

 

 

 

Shares

 

 

Amount