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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 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 September 30, 2024

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: 000-50633

 

CYTOKINETICS, INCORPORATED

(Exact name of registrant as specified in its charter)

 

Delaware

94-3291317

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

 

 

350 Oyster Point Blvd.

South San Francisco, California

94080

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (650) 624-3000

 

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

Title of each class

 

Common Stock, $0.001 par value

Trading symbol

 

CYTK

Name of each exchange on which registered

 

The Nasdaq Global Select Market

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 (§232.405 of this chapter) 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

Number of shares of common stock, $0.001 par value, outstanding as of November 5, 2024: 118,014,240

 

 

 


 

CYTOKINETICS, INCORPORATED

TABLE OF CONTENTS FOR FORM 10-Q

FOR THE three and nine months ended September 30, 2024

Page

Glossary of Terms

3

 

 

PART I. FINANCIAL INFORMATION

7

Item 1. Financial Statements (Unaudited)

7

Condensed Consolidated Balance Sheets

7

Condensed Consolidated Statements of Operations and Comprehensive Loss

8

Condensed Consolidated Statements of Stockholders’ (Deficit) Equity

9

Condensed Consolidated Statements of Cash Flows

11

Notes to Condensed Consolidated Financial Statements

12

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

27

Item 3. Quantitative and Qualitative Disclosures About Market Risk

45

Item 4. Controls and Procedures

46

 

 

PART II. OTHER INFORMATION

47

Item 1. Legal Proceedings

47

Item 1A. Risk Factors

47

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

76

Item 3. Defaults Upon Senior Securities

76

Item 4. Mine Safety Disclosures

76

Item 5. Other Information

76

Item 6. Exhibits

77

 

 

SIGNATURES

79

 

2


 

Glossary of Terms

Unless the context requires otherwise, references to “Cytokinetics,” “the Company,” “we,” “us” or “our” in this Quarterly Report on Form 10-Q refer to Cytokinetics, Incorporated and its subsidiaries. References to “Notes” in this Form 10-Q are to the Notes to the Condensed Consolidated Financial Statements in this Form 10-Q. We also have used other specific terms in this Form 10-Q, most of which are explained or defined below:

Term/Abbreviation

 

Definition

2004 Plan

 

Cytokinetics’ Amended and Restated 2004 Equity Incentive Plan

2020 RTW Transactions

 

The transactions contemplated by the RTW Royalty Purchase Agreement, Corxel Aficamten License Agreement and the Common Stock Purchase Agreements, dated July 14, 2020, by and between Cytokinetics and the RTW Investors

2021 RTW Transactions

 

The transactions contemplated by the Corxel OM License Agreement and the Common Stock Purchase Agreements, dated December 20, 2021 by and between Cytokinetics and the RTW Investors

2022 RPI Transactions

 

The transactions contemplated by the RP Multi Tranche Loan Agreement and the RP Aficamten RPA

2024 RPI Transactions

 

The transactions contemplated by the 2024 RP OM Loan Agreement, the RP CK-586 RPA, the RP Stock Purchase Agreement, the 2022 RP Multi Tranche Loan Agreement Amendment and the RP Aficamten RPA Amendment

2026 Notes

 

Cytokinetics’ 4% convertible senior notes due 2026

2027 Indenture

 

Indenture Agreement, dated July 6, 2022, between Cytokinetics and U.S. Bank Trust Company, as trustee

2027 Notes

 

Cytokinetics’ 3.50% convertible senior notes due 2027

ACA

 

Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act

ACACIA-HCM

 

Assessment Comparing Aficamten to Placebo on Cardiac Endpoints In Adults with Non-Obstructive HCM

ACC

 

American College of Cardiology

AHA

 

American Heart Association

ALS

 

amyotrophic lateral sclerosis (also known as Lou Gehrig’s Disease)

ALSFRS-R

 

ALS Functional Rating Scale – Revised

Amended ATM Facility

 

amended and restated Controlled Equity Offering Sales Agreement

Amgen Agreement

 

Collaboration and Option Agreement, dated December 29, 2006, as amended, between Cytokinetics and Amgen

ARR

 

absolute risk reductions

Astellas Agreement

 

License and Collaboration Agreement, dated June 21, 2013, between Cytokinetics and Astellas

Astellas FSRA Agreement

 

Fast Skeletal Regulatory Activator Agreement, dated April 23, 2020 between Cytokinetics and Astellas

Astellas OSSA Agreement

 

License and Collaboration Agreement for Other Skeletal Sarcomere Activators, dated April 23, 2020, as amended, between Cytokinetics and Astellas

cGMP

 

current Good Manufacturing Practice

Cantor

 

Cantor Fitzgerald & Co.

China

 

People's Republic of China (including the Hong Kong and Macau SARs)

CMC

 

Chemistry, Manufacturing and Controls

CMO

 

Contract Manufacturing Organizations

Common Stock

 

our common stock, par value $0.001 per share

Compensation Committee

 

Compensation and Talent Committee of Cytokinetics’ Board of Directors

Convertible Notes

 

2026 Notes and 2027 Notes

3


 

COURAGE-ALS

 

Clinical Outcomes Using Reldesemtiv on ALSFRS-R in a Global Evaluation in ALS

CPET

 

cardiopulmonary exercise testing

CRL

 

Complete Response Letter

CRO

 

Contract Research Organization

CV

 

cardiovascular

E.U. or EU

 

European Union

EEA

 

European Economic Area

EMA

 

European Medicines Agency

ESPP

 

employee stock purchase plan

Exchange Act

 

Securities Exchange Act of 1934, as amended

FDA

 

U.S. Food and Drug Administration

Final Payment Amount

 

As defined in Part I, Item 2 (Management’s Discussion and Analysis of Financial Conditions and Results of Operations) of this Quarterly Report on Form 10-Q – Sources and Uses of Cash, Royalty Pharma Transactions

FOREST-HCM

 

Five-Year, Open-Label, Research Evaluation of Sustained Treatment with Aficamten in HCM

FSRA

 

fast skeletal regulatory activator

FSTA

 

fast skeletal muscle troponin activator

Fundamental Change

 

As defined in the 2027 Indenture

GAAP

 

Generally Accepted Accounting Principles in the U.S.

GALACTIC-HF

 

Global Approach to Lowering Adverse Cardiac Outcomes Through Improving Contractility in Heart Failure

GCP

 

Good Clinical Practice

GDPR

 

General Data Protection Regulation ((EU) 2016/679)

HCM

 

hypertrophic cardiomyopathy

HFpEF

 

heart failure with preserved ejection fraction

HFrEF

 

heart failure with reduced ejection fraction

HFSA

 

Heart Failure Society of America

HHS

 

U.S. Department of Health and Human Services

HIPAA

 

The federal Health Insurance Portability and Accountability Act of 1996, as amended by the Health Information Technology for Economic and Clinical Health Act

ICER

 

Institute for Clinical and Economic Review

IND

 

Investigational New Drug

IRA

 

Inflation Reduction Act of 2022

IRB

 

Institutional Review Board

Corxel

 

Corxel Pharmaceuticals Limited (f/k/a JiXing Pharmaceuticals Limited) and/or its affiliates, including Corxel Pharmaceuticals Hong Kong Limited

Corxel Aficamten License Agreement

 

License and Collaboration Agreement, dated July 14, 2020, by and between Cytokinetics and Corxel Pharmaceuticals Limited

Corxel Agreements

 

Corxel Aficamten License Agreement and Corxel OM License Agreement

Corxel OM License Agreement

 

License and Collaboration Agreement, dated December 20, 2021, by and between Cytokinetics and Corxel Pharmaceuticals Limited

KCCQ

 

Kansas City Cardiomyopathy Questionnaire

KCCQ-OSS

 

KCCQ Overall Summary Score

Lenders

 

Silicon Valley Bank and Oxford Finance LLC

4


 

LVEF

 

left ventricular ejection fraction

LVOT

 

left ventricular outflow tract

LVOT-G

 

left ventricular outflow tract gradient

MAA

 

Marketing Authorization Application

MAPLE-HCM

 

Metoprolol vs Aficamten in Patients with LVOT Obstruction on Exercise Endpoints Capacity in HCM

Mavacamten Royalty

 

certain payments on the net sales of products containing the compound mavacamten pursuant to the Research Collaboration Agreement, dated August 24, 2012, between Cytokinetics and MyoKardia, Inc.

NDA

 

New Drug Application

nHCM

 

non-obstructive HCM

NOLs

 

net operating loss carryforward

NYHA

 

New York Heart Association

oHCM

 

obstructive HCM

OLE

 

Open-Label Extension

Ownership Change

 

As defined in Part II, Item 1A (Risk Factors) of this Quarterly Report on Form 10-Q, General Risks

Oxford

 

Oxford Finance LLC

Oyster Point Lease

 

Lease, dated July 24, 2019, by and between Cytokinetics and KR Oyster Point 1, LLC, as amended

Partial Redemption Limitation

 

As defined in the 2027 Indenture

PSU

 

Performance Stock Unit

Radnor Lease

 

As defined in Part I, Item 1 (Financial Statements (Unaudited)), Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q - Note 9 (Commitments and Contingencies) – Operating Leases

REDWOOD-HCM

 

Randomized Evaluation of Dosing With CK-274 in Obstructive Outflow Disease in HCM

REDWOOD-HCM OLE

 

Randomized Evaluation of Dosing With CK-274 in Obstructive Outflow Disease in HCM Open Label Extension

REMS

 

Risk Evaluation and Mitigation Strategy

RP Aficamten RPA

 

Revenue Participation Right Purchase Agreement, dated January 7, 2022, by and between Cytokinetics and Royalty Pharma Investments 2019 ICAV

RP Aficamten RPA Amendment

 

Amendment No. 1, dated May 22, 2024, to Revenue Participation Right Purchase Agreement, dated January 7, 2022, by and between Cytokinetics and Royalty Pharma Investments 2019 ICAV

RP CK-586 RPA

 

CK-586 Revenue Participation Right Purchase Agreement, dated May 22, 2024, by and between Cytokinetics and Royalty Pharma Investments 2019 ICAV

RP Multi Tranche Loan Agreement

 

Development Funding Loan Agreement, dated January 7, 2022, by and among Royalty Pharma Development Funding, LLC and Cytokinetics

RP Multi Tranche Loan Agreement Amendment

 

Third Amendment, dated May 22, 2024, to Development Funding Loan Agreement, dated January 7, 2022, by and among Royalty Pharma Development Funding, LLC and Cytokinetics

RP OM Liability

 

As defined in Part I, Item 1 (Financial Statements (Unaudited)), Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q - Note 6 (Agreements with Royalty Pharma) – 2017 RP Omecamtiv Mecarbil Royalty Purchase Agreement

RP OM Loan Agreement

 

2024 Development Funding Loan Agreement, dated May 22, 2024, by and among Royalty Pharma Development Funding, LLC and Cytokinetics

RP OM RPA

 

Royalty Purchase Agreement, dated February 1, 2017, by and between the Cytokinetics and RPI Finance Trust, as amended by Amendment No. 1, dated January 7, 2022

5


 

RP Stock Purchase Agreement

 

Common Stock Option and Purchase Agreement, dated May 22, 2024, by and between Cytokinetics and Royalty Pharma Investments 2019 ICAV

RPDF

 

Royalty Pharma Development Funding, LLC

RPFT

 

RPI Finance Trust

RPI ICAV

 

Royalty Pharma Investments 2019 ICAV

RSU

 

Restricted Stock Unit

RTW ICAV

 

RTW Investments ICAV for RTW Fund 1

RTW Investors

 

RTW Master Fund, Ltd., RTW Innovation Master Fund, Ltd. and RTW Venture Fund Limited

RTW Royalty Holdings

 

RTW Royalty Holdings Designated Activity Company

RTW Royalty Purchase Agreement

 

Royalty Purchase Agreement, dated July 14, 2020, between Cytokinetics and RTW Royalty Holdings

Section 382

 

Section 382 of the Internal Revenue Code

Securities Act

 

Securities Act of 1933, as amended

SEQUOIA-HCM

 

Safety, Efficacy, and Quantitative Understanding of Obstruction Impact of Aficamten in HCM

SGLT2

 

sodium-glucose cotransporter-2

SMA

 

spinal muscular atrophy

SPA

 

Special Protocol Assessment

Tax Act

 

Tax Cuts and Jobs Act

Term Loan Agreement

 

Loan and Security Agreement, dated as of October 19, 2015, by and among Cytokinetics, Oxford Finance LLC and Silicon Valley Bank and Loan and Security Agreement, dated as of May 17, 2019, by and among Cytokinetics, Oxford Finance LLC and Silicon Valley Bank

U.S. or US

 

United States

This Form 10-Q includes discussion of certain clinical studies relating to various in-line products and/or product candidates. These studies typically are part of a larger body of clinical data relating to such products or product candidates, and the discussion herein should be considered in the context of the larger body of data. In addition, clinical trial data are subject to differing interpretations, and, even when we view data as sufficient to support the safety and/or effectiveness of a product candidate or a new indication for an in-line product, regulatory authorities may not share our views and may require additional data or may deny approval altogether.

CYTOKINETICS and our C-shaped logo are registered trademarks of Cytokinetics in the U.S. and certain other countries. Other service marks, trademarks and trade names referred to in this report are the property of their respective owners.

The information contained on our website, our Facebook, Instagram, YouTube and LinkedIn pages or our Twitter accounts, or any third-party website, is not incorporated by reference into this Form 10-Q.

6


 

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CYTOKINETICS, INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands) (Unaudited)

 

 

 

September 30, 2024

 

 

December 31, 2023

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

46,888

 

 

$

113,024

 

Short-term investments

 

 

964,804

 

 

 

501,800

 

Accounts receivable

 

 

244

 

 

 

1,283

 

Prepaid expenses and other current assets

 

 

6,665

 

 

 

11,944

 

Total current assets

 

 

1,018,601

 

 

 

628,051

 

Long-term investments

 

 

269,168

 

 

 

40,534

 

Property and equipment, net

 

 

64,222

 

 

 

68,748

 

Operating lease right-of-use assets

 

 

76,344

 

 

 

78,987

 

Other assets

 

 

7,725

 

 

 

7,996

 

Total assets

 

$

1,436,060

 

 

$

824,316

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

11,581

 

 

$

21,507

 

Accrued liabilities

 

 

49,826

 

 

 

42,641

 

Short-term operating lease liabilities

 

 

18,856

 

 

 

17,891

 

Current portion of long-term debt

 

 

11,520

 

 

 

10,080

 

Derivative liabilities measured at fair value

 

 

12,500

 

 

 

 

Other current liabilities

 

 

5,529

 

 

 

10,559

 

Total current liabilities

 

 

109,812

 

 

 

102,678

 

Term loans, net

 

 

93,017

 

 

 

58,384

 

Convertible notes, net

 

 

551,481

 

 

 

548,989

 

Liabilities related to revenue participation right purchase agreements, net

 

 

448,509

 

 

 

379,975

 

Long-term operating lease liabilities

 

 

114,752

 

 

 

120,427

 

Liabilities related to RPI Transactions measured at fair value

 

 

132,400

 

 

 

 

Other non-current liabilities

 

 

 

 

 

186

 

Total liabilities

 

 

1,449,971

 

 

 

1,210,639

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders' deficit

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

Common stock

 

 

118

 

 

 

102

 

Additional paid-in capital

 

 

2,532,328

 

 

 

1,725,823

 

Accumulated other comprehensive income (loss)

 

 

5,387

 

 

 

(10

)

Accumulated deficit

 

 

(2,551,744

)

 

 

(2,112,238

)

Total stockholders' deficit

 

 

(13,911

)

 

 

(386,323

)

Total liabilities and stockholders' deficit

 

$

1,436,060

 

 

$

824,316

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

7


 

CYTOKINETICS, INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In thousands, except per share data) (Unaudited)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2024

 

 

September 30, 2023

 

 

September 30, 2024

 

 

September 30, 2023

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development revenues

 

$

463

 

 

$

378

 

 

$

1,547

 

 

$

3,358

 

Milestone revenues

 

 

 

 

 

 

 

 

 

 

 

2,500

 

Total revenues

 

 

463

 

 

 

378

 

 

 

1,547

 

 

 

5,858

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

84,612

 

 

 

82,532

 

 

 

245,779

 

 

 

245,147

 

General and administrative

 

 

56,652

 

 

 

40,111

 

 

 

152,976

 

 

 

129,498

 

Total operating expenses

 

 

141,264

 

 

 

122,643

 

 

 

398,755

 

 

 

374,645

 

Operating loss

 

 

(140,801

)

 

 

(122,265

)

 

 

(397,208

)

 

 

(368,787

)

Interest expense

 

 

(8,928

)

 

 

(7,136

)

 

 

(28,763

)

 

 

(21,142

)

Non-cash interest expense on liabilities related to revenue participation right purchase agreements

 

 

(13,370

)

 

 

(6,860

)

 

 

(35,155

)

 

 

(19,462

)

Interest and other income, net

 

 

17,054

 

 

 

6,839

 

 

 

36,520

 

 

 

20,043

 

Change in fair value of derivative liabilities

 

 

700

 

 

 

 

 

 

100

 

 

 

 

Change in fair value of liabilities related to RPI Transactions

 

 

(15,200

)

 

 

 

 

 

(15,000

)

 

 

 

Net loss

 

$

(160,545

)

 

$

(129,422

)

 

$

(439,506

)

 

$

(389,348

)

Net loss per share — basic and diluted

 

$

(1.36

)

 

$

(1.35

)

 

$

(4.00

)

 

$

(4.07

)

Weighted-average number of shares used in computing net loss per share — basic and diluted

 

 

117,685

 

 

 

96,071

 

 

 

109,932

 

 

 

95,666

 

Other comprehensive (loss) gain:

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on available-for-sale securities, net

 

 

6,535

 

 

 

584

 

 

 

5,480

 

 

 

2,716

 

Foreign currency translation adjustments

 

 

(126

)

 

 

 

 

 

(83

)

 

 

 

Comprehensive loss

 

$

(154,136

)

 

$

(128,838

)

 

$

(434,109

)

 

$

(386,632

)

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

8


 

CYTOKINETICS, INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ (Deficit) EQUITY

(In thousands, except share data) (Unaudited)

 

 

Common Stock

 

 

Additional
Paid-In

 

 

Accumulated
Other
Comprehensive

 

 

Accumulated

 

 

Total
Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income (Loss)

 

 

Deficit

 

 

(Deficit) Equity

 

Balance, December 31, 2023

 

 

101,637,922

 

 

$

102

 

 

$

1,725,823

 

 

$

(10

)

 

$

(2,112,238

)

 

$

(386,323

)

Exercise of stock options

 

 

1,466,359

 

 

 

2

 

 

 

29,530

 

 

 

 

 

 

 

 

 

29,532

 

Vesting of restricted stock units

 

 

695,140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares withheld related to net share settlement of equity awards

 

 

(274,256

)

 

 

 

 

 

(18,449

)

 

 

 

 

 

 

 

 

(18,449

)

Issuance of common stock under at-the-market offering, net of issuance costs

 

 

1,237,460

 

 

 

1

 

 

 

93,639

 

 

 

 

 

 

 

 

 

93,640

 

Exercise of warrants, net

 

 

11,335

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

21,612

 

 

 

 

 

 

 

 

 

21,612

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(529

)

 

 

 

 

 

(529

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(135,643

)

 

 

(135,643

)

Balance, March 31, 2024

 

 

104,773,960

 

 

 

105

 

 

 

1,852,155

 

 

 

(539

)

 

 

(2,247,881

)

 

 

(396,160

)

Exercise of stock options

 

 

356,281

 

 

 

 

 

 

8,007

 

 

 

 

 

 

 

 

 

8,007

 

Vesting of restricted stock units

 

 

46,034

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock under
   Employee Stock Purchase Plan

 

 

93,857

 

 

 

 

 

 

2,678

 

 

 

 

 

 

 

 

 

2,678

 

Issuance of common stock in public offering, net of issuance costs

 

 

11,274,510

 

 

 

11

 

 

 

563,193

 

 

 

 

 

 

 

 

 

563,204

 

Issuance of common stock in private placement, net of issuance costs

 

 

980,392

 

 

 

1

 

 

 

49,999

 

 

 

 

 

 

 

 

 

50,000

 

Stock-based compensation

 

 

 

 

 

 

 

 

24,622

 

 

 

 

 

 

 

 

 

24,622

 

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

(483

)

 

 

 

 

 

(483

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(143,318

)

 

 

(143,318

)

Balance, June 30, 2024

 

 

117,525,034

 

 

 

117

 

 

 

2,500,654

 

 

 

(1,022

)

 

 

(2,391,199

)

 

 

108,550

 

Exercise of stock options

 

 

362,431

 

 

 

1

 

 

 

6,318

 

 

 

 

 

 

 

 

 

6,319

 

Vesting of restricted stock units

 

 

1,154

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

25,356

 

 

 

 

 

 

 

 

 

25,356

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

6,409

 

 

 

 

 

 

6,409

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(160,545

)

 

 

(160,545

)

Balance, September 30, 2024

 

 

117,888,619

 

 

$

118

 

 

$

2,532,328

 

 

$

5,387

 

 

$

(2,551,744

)

 

$

(13,911

)

 

9


 

 

 

Common Stock

 

 

Additional
Paid-In

 

 

Accumulated
Other
Comprehensive

 

 

Accumulated

 

 

Total
Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Loss

 

 

Deficit

 

 

Deficit

 

Balance, December 31, 2022

 

 

94,833,975

 

 

$

94

 

 

$

1,481,590

 

 

$

(3,590

)

 

$

(1,585,994

)

 

$

(107,900

)

Exercise of stock options

 

 

369,298

 

 

 

 

 

 

3,547

 

 

 

 

 

 

 

 

 

3,547

 

Vesting of restricted stock units

 

 

668,835

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares withheld related to net share settlement of equity awards

 

 

(262,829

)

 

 

 

 

 

(10,517

)

 

 

 

 

 

 

 

 

(10,517

)

Stock-based compensation

 

 

 

 

 

 

 

 

15,194

 

 

 

 

 

 

 

 

 

15,194

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

1,945

 

 

 

 

 

 

1,945

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(131,289

)

 

 

(131,289

)

Balance, March 31, 2023

 

 

95,609,279

 

 

 

94

 

 

 

1,489,814

 

 

 

(1,645

)

 

 

(1,717,283

)

 

 

(229,020

)

Exercise of stock options

 

 

206,605

 

 

 

 

 

 

3,286

 

 

 

 

 

 

 

 

 

3,286

 

Vesting of restricted stock units

 

 

46,989

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock under
   Employee Stock Purchase Plan

 

 

74,937

 

 

 

 

 

 

2,401

 

 

 

 

 

 

 

 

 

2,401

 

Stock-based compensation

 

 

 

 

 

 

 

 

18,668

 

 

 

 

 

 

 

 

 

18,668

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

187

 

 

 

 

 

 

187

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(128,637

)

 

 

(128,637

)

Balance, June 30, 2023

 

 

95,937,810

 

 

 

94

 

 

 

1,514,169

 

 

 

(1,458

)

 

 

(1,845,920

)

 

 

(333,115

)

Exercise of stock options

 

 

273,149

 

 

 

 

 

 

3,124

 

 

 

 

 

 

 

 

 

3,124

 

Vesting of restricted stock units

 

 

2,454

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock under at-the-market offering, net of issuance costs

 

 

38,431

 

 

 

 

 

 

1,312

 

 

 

 

 

 

 

 

 

1,312

 

Stock-based compensation

 

 

 

 

 

 

 

 

18,716

 

 

 

 

 

 

 

 

 

18,716

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

584

 

 

 

 

 

 

584

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(129,422

)

 

 

(129,422

)

Balance, September 30, 2023

 

 

96,251,844

 

 

$

94

 

 

$

1,537,321

 

 

$

(874

)

 

$

(1,975,342

)

 

$

(438,801

)

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

10


 

CYTOKINETICS, INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands) (Unaudited)

 

 

Nine Months Ended

 

 

 

September 30, 2024

 

 

September 30, 2023

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(439,506

)

 

$

(389,348

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

Non-cash interest expense on liabilities related to revenue participation right purchase agreements

 

 

35,233

 

 

 

19,548

 

Stock-based compensation expense

 

 

71,590

 

 

 

52,578

 

Non-cash lease expense

 

 

3,152

 

 

 

2,808

 

Depreciation of property and equipment

 

 

7,148

 

 

 

5,557

 

Change in fair value of derivative liabilities

 

 

(100

)

 

 

 

Change in fair value of liabilities related to RPI Transactions

 

 

15,000

 

 

 

 

Realized gain on investment, net

 

 

 

 

 

35

 

Interest receivable and amortization on investments

 

 

(24,814

)

 

 

(10,634

)

Non-cash interest expense related to debt

 

 

8,027

 

 

 

20,950

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

1,039

 

 

 

(2,352

)

Prepaid and other assets

 

 

6,006

 

 

 

(6,937

)

Accounts payable

 

 

(10,388

)

 

 

(11,194

)

Accrued and other liabilities

 

 

4,105

 

 

 

(15,026

)

Operating lease liabilities

 

 

(5,219

)

 

 

(272

)

Other non-current liabilities

 

 

(1,593

)

 

 

(6,009

)

Net cash used in operating activities

 

 

(330,320

)