10-Q 1 gbt-20220331.htm 10-Q 10-Q
--12-310001629137Q1false0001629137us-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001629137gbt:TwoThousandFifteenStockOptionAndIncentivePlanMember2022-01-012022-03-310001629137us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001629137us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001629137gbt:OnePointEightSevenFivePercentConvertibleSeniorNotesDue2028Memberus-gaap:CallOptionMemberus-gaap:ConvertibleDebtMember2022-03-310001629137us-gaap:MoneyMarketFundsMember2021-12-310001629137us-gaap:ShareBasedCompensationAwardTrancheTwoMembergbt:TwoThouasndTwentyMarketConditionRsuAwardsMember2022-03-310001629137us-gaap:ComputerEquipmentMember2022-03-310001629137us-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-12-3100016291372021-03-310001629137srt:MaximumMembergbt:TermLoanMember2022-03-310001629137us-gaap:SecuredDebtMember2022-03-310001629137gbt:MarketConditionAwardsGrantedToEmployeesMembergbt:TwoThousandFifteenStockOptionAndIncentivePlanMember2022-01-012022-03-310001629137us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001629137us-gaap:ConstructionInProgressMember2021-12-310001629137us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001629137us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-3100016291372022-03-012022-03-310001629137gbt:NonConvertibleDebtMember2022-03-310001629137gbt:TwoThousandFifteenStockOptionAndIncentivePlanMembergbt:PatientShareRsuAwardsMember2021-12-310001629137us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001629137us-gaap:LeaseholdImprovementsMember2022-03-310001629137us-gaap:ResearchAndDevelopmentExpenseMember2022-01-012022-03-310001629137us-gaap:LeaseholdImprovementsMember2022-01-012022-03-310001629137us-gaap:CorporateDebtSecuritiesMember2022-01-012022-03-310001629137us-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001629137gbt:OnePointEightSevenFivePercentConvertibleSeniorNotesDue2028Memberus-gaap:CallOptionMemberus-gaap:ConvertibleDebtMember2021-12-310001629137us-gaap:EmployeeStockOptionMember2021-01-012021-03-310001629137us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001629137us-gaap:CertificatesOfDepositMember2022-03-310001629137us-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-3100016291372017-03-012017-03-310001629137us-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001629137us-gaap:USGovernmentDebtSecuritiesMember2021-12-310001629137us-gaap:USGovernmentAgenciesDebtSecuritiesMember2022-01-012022-03-310001629137us-gaap:AdditionalPaidInCapitalMember2020-12-310001629137us-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001629137us-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001629137us-gaap:ConvertibleDebtSecuritiesMember2022-01-012022-03-310001629137gbt:OnePointEightSevenFivePercentConvertibleSeniorNotesDue2028Memberus-gaap:ConvertibleDebtMember2021-01-012021-12-310001629137gbt:TotalShareholderReturnRsuAwardsMembergbt:TwoThousandFifteenStockOptionAndIncentivePlanMember2022-01-012022-03-310001629137us-gaap:SecuredDebtMember2020-11-3000016291372022-03-310001629137us-gaap:MoneyMarketFundsMember2022-01-012022-03-310001629137us-gaap:EquipmentMember2021-12-310001629137us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001629137us-gaap:USGovernmentAgenciesDebtSecuritiesMember2022-03-310001629137gbt:TwoThouasndTwentyMarketConditionRsuAwardsMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2022-03-310001629137us-gaap:USGovernmentAgenciesDebtSecuritiesMember2021-01-012021-12-310001629137gbt:PatientShareBelowOneSixPointTwoPercentageMembergbt:PatientShareRsuAwardsMember2022-01-012022-03-310001629137us-gaap:ComputerEquipmentMember2021-12-310001629137us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001629137gbt:OnePointEightSevenFivePercentConvertibleSeniorNotesDue2028Memberus-gaap:ConvertibleDebtMember2022-03-310001629137us-gaap:AdditionalPaidInCapitalMember2021-12-310001629137us-gaap:MoneyMarketFundsMember2022-03-3100016291372018-08-012018-08-3100016291372020-12-310001629137us-gaap:CommonStockMember2021-03-310001629137us-gaap:USGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001629137us-gaap:ConvertibleDebtMember2021-12-310001629137us-gaap:USTreasuryBillSecuritiesMember2022-01-012022-03-310001629137us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueProductLineMembergbt:TwoMajorCustomersMember2022-01-012022-03-310001629137us-gaap:USTreasuryBillSecuritiesMember2022-03-310001629137gbt:PerformanceBasedRsuAwardsMembergbt:TwoThousandFifteenStockOptionAndIncentivePlanMember2022-03-310001629137us-gaap:USGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-3100016291372021-12-310001629137us-gaap:AccountingStandardsUpdate201602Member2021-01-012021-03-310001629137us-gaap:EmployeeStockOptionMember2021-01-012021-03-310001629137gbt:MarketConditionAwardsGrantedToEmployeesMember2021-01-012021-03-310001629137us-gaap:ConvertibleDebtMember2022-03-310001629137gbt:MarketConditionAwardsGrantedToEmployeesMember2022-03-310001629137us-gaap:CertificatesOfDepositMember2021-01-012021-12-310001629137gbt:MarketConditionAwardsGrantedToEmployeesMembergbt:TwoThousandFifteenStockOptionAndIncentivePlanMember2021-01-012021-12-310001629137us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001629137gbt:TermLoanMember2022-03-310001629137srt:MaximumMembergbt:TotalShareholderReturnRsuAwardsMember2022-01-012022-03-310001629137us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001629137us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001629137gbt:TotalShareholderReturnRsuAwardsMember2021-01-012021-12-310001629137us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-3100016291372021-01-012021-03-310001629137gbt:TotalShareholderReturnRsuAwardsMembergbt:TwoThousandFifteenStockOptionAndIncentivePlanMember2022-03-310001629137gbt:PatientShareOneSixPointTwoZeroPercentageMembergbt:PatientShareRsuAwardsMember2022-01-012022-03-3100016291372022-04-290001629137gbt:OnePointEightSevenFivePercentConvertibleSeniorNotesDue2028Memberus-gaap:ConvertibleDebtMember2022-01-012022-03-310001629137us-gaap:AccountingStandardsUpdate201602Member2022-03-310001629137us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001629137gbt:OnePointEightSevenFivePercentConvertibleSeniorNotesDue2028Memberus-gaap:ConvertibleDebtMember2021-12-310001629137gbt:TwoThousandSeventeenInducementEquityPlanMember2022-03-310001629137us-gaap:LeaseholdImprovementsMember2021-12-310001629137srt:MaximumMember2022-01-012022-03-310001629137gbt:MarketConditionAwardsGrantedToEmployeesMembergbt:TwoThousandFifteenStockOptionAndIncentivePlanMember2022-03-310001629137us-gaap:RetainedEarningsMember2021-01-012021-03-310001629137gbt:TotalShareholderReturnRsuAwardsMember2022-03-3100016291372022-01-012022-03-310001629137srt:MinimumMemberus-gaap:EmployeeStockOptionMember2021-01-012021-03-310001629137us-gaap:CertificatesOfDepositMember2022-01-012022-03-310001629137gbt:PerformanceBasedRsuAwardsMembergbt:TwoThousandFifteenStockOptionAndIncentivePlanMember2022-01-012022-03-310001629137us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001629137us-gaap:USGovernmentDebtSecuritiesMember2021-01-012021-12-310001629137us-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-03-310001629137us-gaap:RetainedEarningsMember2020-12-310001629137us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001629137gbt:TwoThousandFifteenStockOptionAndIncentivePlanMembergbt:PatientShareRsuAwardsMember2021-01-012021-12-310001629137gbt:TwoPointThreeSevenPercentConvertibleSeniorNotesMember2022-01-012022-03-310001629137us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001629137us-gaap:USGovernmentDebtSecuritiesMember2022-01-012022-03-310001629137us-gaap:AccountingStandardsUpdate201602Member2022-01-012022-03-310001629137us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-03-310001629137us-gaap:ConvertibleDebtSecuritiesMember2021-01-012021-03-310001629137us-gaap:EquipmentMember2022-03-310001629137us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001629137us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001629137us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001629137us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001629137gbt:TermLoanMember2022-01-012022-03-310001629137us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001629137us-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001629137us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001629137us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001629137us-gaap:CommonStockMember2020-12-310001629137us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001629137gbt:TwentyFifthPercentileMembergbt:TotalShareholderReturnRsuAwardsMember2022-01-012022-03-310001629137us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001629137us-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001629137gbt:TotalShareholderReturnRsuAwardsMember2021-12-310001629137us-gaap:CommonStockMember2021-01-012021-03-310001629137us-gaap:RetainedEarningsMember2021-03-310001629137us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001629137us-gaap:MoneyMarketFundsMember2021-01-012021-12-310001629137gbt:TwoThousandFifteenStockOptionAndIncentivePlanMembergbt:PatientShareRsuAwardsMember2022-01-012022-03-310001629137us-gaap:USGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001629137us-gaap:CommonStockMember2022-01-012022-03-310001629137us-gaap:AdditionalPaidInCapitalMember2022-03-310001629137us-gaap:SecuredDebtMember2019-12-310001629137gbt:TwoThouasndTwentyMarketConditionRsuAwardsMemberus-gaap:ShareBasedCompensationAwardTrancheThreeMember2022-03-310001629137gbt:TwoThousandFifteenStockOptionAndIncentivePlanMember2021-09-300001629137gbt:PatientShareRsuAwardsMembergbt:PatientShareOneNinePointEightZeroPercentageMember2022-01-012022-03-310001629137us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001629137us-gaap:USGovernmentDebtSecuritiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001629137gbt:HundredthPercentileOrHigherMembergbt:TotalShareholderReturnRsuAwardsMember2022-01-012022-03-310001629137us-gaap:USGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001629137us-gaap:AccountingStandardsUpdate201602Member2021-03-310001629137us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-03-310001629137gbt:FiftiethPercentileMembergbt:TotalShareholderReturnRsuAwardsMember2022-01-012022-03-310001629137us-gaap:RetainedEarningsMember2022-01-012022-03-310001629137us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001629137us-gaap:EmployeeStockOptionMember2022-01-012022-03-310001629137us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001629137srt:MaximumMembergbt:PatientShareRsuAwardsMember2022-01-012022-03-310001629137gbt:TwoThousandFifteenStockOptionAndIncentivePlanMembergbt:PatientShareRsuAwardsMember2022-03-310001629137us-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMembergbt:TwoMajorCustomersMember2022-01-012022-03-310001629137gbt:TwoPointThreeSevenPercentConvertibleSeniorNotesMember2021-01-012021-03-310001629137us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001629137gbt:TotalShareholderReturnRsuAwardsMember2022-01-012022-03-3100016291372017-03-310001629137gbt:TwoThousandFifteenStockOptionAndIncentivePlanAndTwoThousandSeventeenInducementEquityPlanMemberus-gaap:RestrictedStockUnitsRSUMember2022-01-012022-03-310001629137us-gaap:USGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001629137us-gaap:AdditionalPaidInCapitalMember2021-03-310001629137us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001629137us-gaap:ConstructionInProgressMember2022-03-310001629137us-gaap:CommonStockMember2022-03-310001629137us-gaap:CommonStockMember2021-12-310001629137gbt:TwoThousandFifteenStockOptionAndIncentivePlanAndTwoThousandSeventeenInducementEquityPlanMemberus-gaap:RestrictedStockUnitsRSUMember2022-03-310001629137us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-03-310001629137gbt:TermLoanMembersrt:MinimumMember2022-03-3100016291372021-01-012021-12-310001629137us-gaap:CorporateDebtSecuritiesMember2021-12-310001629137us-gaap:RetainedEarningsMember2021-12-310001629137us-gaap:CertificatesOfDepositMember2021-12-310001629137us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001629137us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001629137us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001629137us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001629137us-gaap:USGovernmentDebtSecuritiesMember2022-03-310001629137us-gaap:CorporateDebtSecuritiesMember2022-03-310001629137srt:MaximumMemberus-gaap:LeaseAgreementsMember2018-08-012018-08-310001629137us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001629137us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001629137us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-01-012022-03-310001629137srt:MaximumMemberus-gaap:EmployeeStockOptionMember2021-01-012021-03-310001629137us-gaap:CorporateDebtSecuritiesMember2021-01-012021-12-310001629137gbt:PatientShareOneEightPercentageMembergbt:PatientShareRsuAwardsMember2022-01-012022-03-310001629137us-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001629137gbt:TwoThousandFifteenStockOptionAndIncentivePlanAndTwoThousandSeventeenInducementEquityPlanMemberus-gaap:RestrictedStockUnitsRSUMember2021-12-310001629137srt:MinimumMembergbt:TotalShareholderReturnRsuAwardsMember2022-01-012022-03-310001629137gbt:MarketConditionAwardsGrantedToEmployeesMember2022-01-012022-03-310001629137us-gaap:EmployeeStockOptionMember2022-01-012022-03-310001629137srt:MinimumMembergbt:PatientShareRsuAwardsMember2022-01-012022-03-310001629137gbt:BelowTwentyFifthPercentileMembergbt:TotalShareholderReturnRsuAwardsMember2022-01-012022-03-310001629137gbt:PatientShareRsuAwardsMember2022-01-012022-03-310001629137gbt:MarketConditionAwardsGrantedToEmployeesMembergbt:TwoThousandFifteenStockOptionAndIncentivePlanMember2021-12-310001629137gbt:OnePointEightSevenFivePercentConvertibleSeniorNotesDue2028Member2022-03-310001629137us-gaap:RetainedEarningsMember2022-03-310001629137us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001629137srt:MinimumMember2022-01-012022-03-31gbt:Daysxbrli:pureutr:sqftxbrli:sharesiso4217:USDxbrli:sharesiso4217:USD

 

 

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 March 31, 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: 001-37539

 

Global Blood Therapeutics, Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

27-4825712

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

181 Oyster Point Boulevard

South San Francisco, CA 94080

(Address of principal executive offices)

(650) 741-7700

(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

GBT

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, 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

As of April 29, 2022, there were 65,098,164 shares of the registrant’s Common Stock, par value $0.001 per share, outstanding.

 

 

 

 


 

TABLE OF CONTENTS

 

 

 

 

 

 

Page

PART I. – FINANCIAL INFORMATION

3

 

 

 

Item 1.

Financial Statements

3

 

Condensed Consolidated Balance Sheets as of March 31, 2022 (Unaudited) and December 31, 2021

3

 

Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended March 31, 2022, and 2021 (Unaudited)

4

 

Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, 2022, and 2021 (Unaudited)

5

 

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2022, and 2021 (Unaudited)

6

 

Notes to Unaudited Condensed Consolidated Financial Statements

7

Item 2.

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

19

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

25

Item 4.

Controls and Procedures

25

 

 

PART II. – OTHER INFORMATION

26

 

 

 

Item 1.

Legal Proceedings

26

Item 1A.

Risk Factors

26

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

66

Item 3.

Defaults Upon Senior Securities

66

Item 4.

Mine Safety Disclosures

66

Item 5.

Other Information

66

Item 6.

Exhibits

66

 

 

SIGNATURES

68

 

2


 

PART I. – FINANCIAL INFORMATION

Item 1. Financial Statements

GLOBAL BLOOD THERAPEUTICS, INC.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share amounts)

 

 

 

March 31, 2022

 

 

December 31, 2021

 

Assets

 

(Unaudited)

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

391,803

 

 

$

684,717

 

Short-term marketable securities

 

 

161,614

 

 

 

 

Accounts receivable, net

 

 

27,730

 

 

 

28,800

 

Inventories

 

 

61,964

 

 

 

58,202

 

Prepaid expenses and other current assets

 

 

32,537

 

 

 

30,251

 

Total current assets

 

 

675,648

 

 

 

801,970

 

Long-term marketable securities

 

 

108,667

 

 

 

50,057

 

Property and equipment, net

 

 

33,598

 

 

 

34,918

 

Operating lease right-of-use assets

 

 

47,271

 

 

 

48,015

 

Restricted cash

 

 

2,452

 

 

 

2,436

 

Other assets, noncurrent

 

 

1,907

 

 

 

1,812

 

Total assets

 

$

869,543

 

 

$

939,208

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

5,422

 

 

$

15,097

 

Accrued liabilities

 

 

45,844

 

 

 

39,297

 

Accrued compensation

 

 

20,309

 

 

 

27,712

 

Other liabilities, current

 

 

7,730

 

 

 

5,892

 

Total current liabilities

 

 

79,305

 

 

 

87,998

 

Long-term debt, net

 

 

246,738

 

 

 

246,352

 

Convertible debt, net

 

 

334,451

 

 

 

334,089

 

Operating lease liabilities, noncurrent

 

 

71,971

 

 

 

73,506

 

Other liabilities, noncurrent

 

 

3,076

 

 

 

853

 

Total liabilities

 

 

735,541

 

 

 

742,798

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Preferred stock, $0.001 par value, 5,000,000 shares authorized as of March 31, 2022 (unaudited) and December 31, 2021; no shares issued and outstanding

 

 

 

 

 

 

Common stock, $0.001 par value, 150,000,000 shares authorized as of March 31, 2022 (unaudited) and December 31, 2021, respectively; 65,055,462 and 64,636,641 shares issued and outstanding as of March 31, 2022 (unaudited) and December 31, 2021, respectively

 

 

65

 

 

 

65

 

Additional paid-in capital

 

 

1,506,882

 

 

 

1,485,805

 

Accumulated other comprehensive income

 

 

(1,962

)

 

 

100

 

Accumulated deficit

 

 

(1,370,983

)

 

 

(1,289,560

)

Total stockholders’ equity

 

 

134,002

 

 

 

196,410

 

Total liabilities and stockholders’ equity

 

$

869,543

 

 

$

939,208

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

3


 

GLOBAL BLOOD THERAPEUTICS, INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

(In thousands, except share and per share amounts)

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Product sales, net

 

$

55,160

 

 

$

39,043

 

Costs and operating expenses:

 

 

 

 

 

 

Cost of sales

 

 

1,055

 

 

 

584

 

Research and development

 

 

52,833

 

 

 

50,857

 

Selling, general and administrative

 

 

74,533

 

 

 

58,966

 

Total costs and operating expenses

 

 

128,421

 

 

 

110,407

 

Loss from operations

 

 

(73,261

)

 

 

(71,364

)

Other income (expense):

 

 

 

 

 

 

Interest income

 

 

500

 

 

 

329

 

Interest expense

 

 

(8,205

)

 

 

(3,689

)

Other expenses, net

 

 

(286

)

 

 

(83

)

Total other expense, net

 

 

(7,991

)

 

 

(3,443

)

Loss before income taxes

 

 

(81,252

)

 

 

(74,807

)

Provision for income taxes

 

 

171

 

 

 

123

 

Net loss

 

 

(81,423

)

 

 

(74,930

)

Other comprehensive expense:

 

 

 

 

 

 

Net unrealized loss on marketable securities, net of tax

 

 

(1,915

)

 

 

(181

)

Cumulative translation adjustment

 

 

(147

)

 

 

 

Total other comprehensive expense, net

 

 

(2,062

)

 

 

(181

)

Comprehensive loss

 

$

(83,485

)

 

$

(75,111

)

Basic and diluted net loss per common share

 

$

(1.26

)

 

$

(1.21

)

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

 

 

64,842,086

 

 

 

62,101,070

 

See accompanying notes to unaudited condensed consolidated financial statements.

4


 

GLOBAL BLOOD THERAPEUTICS, INC.

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)

(In thousands, except share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

Total

 

 

 

Common Stock

 

 

Paid-In

 

 

Comprehensive

 

 

Accumulated

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income (Loss)

 

 

Deficit

 

 

Equity

 

Balance at December 31, 2021

 

 

64,636,641

 

 

$

65

 

 

$

1,485,805

 

 

$

100

 

 

$

(1,289,560

)

 

$

196,410

 

Issuance of common stock upon exercise of stock options

 

 

21,653

 

 

 

 

 

 

324

 

 

 

 

 

 

 

 

 

324

 

Issuance of common stock upon vesting of restricted share units, net of shares withheld for employee taxes

 

 

308,118

 

 

 

 

 

 

(981

)

 

 

 

 

 

 

 

 

(981

)

Issuance of common stock pursuant to ESPP purchases

 

 

89,050

 

 

 

 

 

 

2,259

 

 

 

 

 

 

 

 

 

2,259

 

Stock-based compensation expenses

 

 

 

 

 

 

 

 

19,475

 

 

 

 

 

 

 

 

 

19,475

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

(2,062

)

 

 

 

 

 

(2,062

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(81,423

)

 

 

(81,423

)

Balance at March 31, 2022

 

 

65,055,462

 

 

$

65

 

 

$

1,506,882

 

 

$

(1,962

)

 

$

(1,370,983

)

 

$

134,002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

Total

 

 

 

Common Stock

 

 

Paid-In

 

 

Comprehensive

 

 

Accumulated

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income (Loss)

 

 

Deficit

 

 

Equity

 

Balance at December 31, 2020

 

 

61,898,090

 

 

$

62

 

 

$

1,402,262

 

 

$

302

 

 

$

(986,469

)

 

$

416,157

 

Issuance of common stock upon exercise of stock options

 

 

47,763

 

 

 

 

 

 

1,110

 

 

 

 

 

 

 

 

 

1,110

 

Issuance of common stock upon vesting of restricted share units, net of shares withheld for employee taxes

 

 

229,087

 

 

 

 

 

 

(1,897

)

 

 

 

 

 

 

 

 

(1,897

)

Issuance of common stock pursuant to ESPP purchases

 

 

65,110

 

 

 

 

 

 

2,558

 

 

 

 

 

 

 

 

 

2,558

 

Stock-based compensation expenses

 

 

 

 

 

 

 

 

20,378

 

 

 

 

 

 

 

 

 

20,378

 

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

(181

)

 

 

 

 

 

(181

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(74,930

)

 

 

(74,930

)

Balance at March 31, 2021

 

 

62,240,050

 

 

$

62

 

 

$

1,424,411

 

 

$

121

 

 

$

(1,061,399

)

 

$

363,195

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

5


 

GLOBAL BLOOD THERAPEUTICS, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net loss

 

$

(81,423

)

 

$

(74,930

)

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

 

 

 

 

 

 

Depreciation and amortization

 

 

1,521

 

 

 

1,404

 

Amortization of premium on marketable securities

 

 

107

 

 

 

75

 

Non-cash interest expense

 

 

2,366

 

 

 

237

 

Amortization of operating lease right-of-use assets

 

 

744

 

 

 

637

 

Stock-based compensation

 

 

19,142

 

 

 

19,948

 

Loss on disposal of fixed assets

 

 

15

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivables

 

 

1,070

 

 

 

(765

)

Inventories

 

 

(3,390

)

 

 

(1,569

)

Prepaid expenses and other assets, current

 

 

(2,287

)

 

 

(2,041

)

Other assets, non-current

 

 

(96

)

 

 

(415

)

Accounts payable

 

 

(9,675

)

 

 

(8,544

)

Accrued liabilities

 

 

6,547

 

 

 

(2,904

)

Accrued compensation

 

 

(7,403

)

 

 

(9,276

)

Operating lease liabilities

 

 

(1,314

)

 

 

(1,113

)

Other liabilities, noncurrent

 

 

2,223

 

 

 

 

Net cash used in operating activities

 

 

(71,853

)

 

 

(79,256

)

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(252

)

 

 

(1,130

)

Purchases of marketable securities

 

 

(222,248

)

 

 

 

Maturities of marketable securities

 

 

 

 

 

29,134

 

Net cash provided by (used in) investing activities

 

 

(222,500

)

 

 

28,004

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Proceeds from issuance of common stock in settlement of employee stock purchase plan and exercise of stock options

 

 

2,583

 

 

 

3,703

 

Taxes paid related to net share settlement of equity awards

 

 

(981

)

 

 

(1,897

)

Payment of debt issuance costs

 

 

 

 

 

(26

)

Net cash provided by financing activities

 

 

1,602

 

 

 

1,780

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(147

)

 

 

 

Net decrease in cash, cash equivalents and restricted cash

 

 

(292,898

)

 

 

(49,472

)

Cash, cash equivalents and restricted cash at beginning of period

 

 

687,153

 

 

 

497,202

 

Cash, cash equivalents and restricted cash at end of period

 

$

394,255

 

 

$

447,730

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

 

 

 

 

 

 

Cash paid for interest

 

$

5,625

 

 

$

3,375

 

SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION:

 

 

 

 

 

 

Accrued issuance costs

 

$

 

 

$

(26

)

Accrued purchase of property and equipment

 

$

 

 

$

484

 

RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

Cash, cash equivalents

 

$

391,803

 

 

$

445,310

 

Restricted cash

 

$

2,452

 

 

 

2,420

 

Total cash and cash equivalents and restricted cash

 

$

394,255

 

 

$

447,730

 

 

See accompanying notes to unaudited condensed consolidated financial statements.

6


 

GLOBAL BLOOD THERAPEUTICS, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

1. Organization

Global Blood Therapeutics, Inc., or the Company, we, us, or our, was incorporated in Delaware in February 2011 and commenced operations in May 2012. We are a biopharmaceutical company dedicated to the discovery, development and delivery of life-changing treatments that provide hope to underserved patient communities. In November 2019, we received U.S. Food and Drug Administration, or FDA, accelerated approval for our first medicine, Oxbryta® (voxelotor) tablets for the treatment of sickle cell disease, or SCD, in adults and children 12 years of age and older, and we began to make Oxbryta available to patients through our specialty pharmacy partner network in December 2019. We have since received additional regulatory approvals of Oxbryta in and outside of the United States, including the accelerated approval we received from the FDA in December 2021 to expand Oxbryta’s indication for the treatment of SCD to children ages 4 to less than 12 years. In addition, in February 2022, we received Marketing Authorization from the European Commission for the use of Oxbryta for the treatment of hemolytic anemia (which is low hemoglobin due to red blood cell destruction) due to SCD in adult and pediatric patients 12 years of age and older as monotherapy or in combination with hydroxycarbamide (hydroxyurea). Our principal operations are based in South San Francisco, California.

Liquidity

We have incurred significant operating losses since inception and have cumulative net losses of $1.371 billion. Our ultimate success depends on the outcome of our commercialization of Oxbryta and research and development activities. We expect to incur additional losses for the foreseeable future to commercialize Oxbryta and conduct product research and development. If needed, we intend to raise additional capital through borrowings, the issuance of additional equity, and potentially through strategic alliances with partner companies or other transactions. However, if such financing is not available at adequate levels, we will need to re-evaluate our operating plans. We believe that our existing cash and cash equivalents and investments of $662.1 million as of March 31, 2022 will be sufficient to fund our cash requirements for at least twelve months subsequent to the issuance of these financial statements.

2. Summary of Significant Accounting Policies

Basis of Preparation and Presentation of Financial Information

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP, and applicable rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP have been condensed or omitted, and, accordingly, the balance sheet as of December 31, 2021, has been derived from audited consolidated financial statements at that date but does not include all of the information required by U.S. GAAP for complete financial statements. These unaudited interim condensed consolidated financial statements have been prepared on the same basis as our annual consolidated financial statements and, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments) that are necessary for a fair presentation of our financial information. Certain reclassifications have been made to prior period financials to conform to the current year presentation. These reclassifications have no impact on previous reported total assets, total liabilities, net loss, stockholders’ equity or operating cash flows. The results of operations for the three months ended March 31, 2022, are not necessarily indicative of the results to be expected for the year ending December 31, 2022, or for any other interim period or for any other future year.

The accompanying unaudited interim condensed consolidated financial statements and related financial information should be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2021, included in the Annual Report on Form 10-K we filed with the SEC on February 23, 2022.

Use of Estimates

The preparation of the accompanying unaudited interim condensed consolidated financial statements in accordance with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of variable consideration and costs and expenses during the reporting period. We base our estimates and assumptions on historical experience when available and on various factors that we believe to be reasonable under the circumstances. We evaluate our estimates and assumptions on an ongoing basis. Our actual results could differ from these estimates under different assumptions or conditions.

Concentration of Risk

Credit Risk

We invest in a variety of financial instruments and, by our Board approved investment policy, limit the amount of credit exposure with any one issuer, industry or geographic area for investments other than instruments backed by the U.S. federal government.

7


 

Major Customers

We have entered into agreements with certain limited specialty pharmacies and specialty distributors for the distribution of Oxbryta in the United States. For the three months ended March 31, 2022, our three largest customers represented approximately 99% of our product revenue and approximately 96% of our accounts receivable balance at March 31, 2022.

Major Suppliers

We do not currently have any of our own manufacturing facilities, and, therefore, depend on an outsourced manufacturing strategy for the production of Oxbryta for commercial use and for the production of Oxbryta and our product candidates for clinical trials. We have contracts in place with third-party manufacturers that are approved for the commercial production of Oxbryta and third-party suppliers that are approved for Oxbryta’s active pharmaceutical ingredient. Although there are potential sources of supply other than our existing manufacturers and suppliers, any new supplier would be required to qualify under applicable regulatory requirements.

Principles of Consolidation

The accompanying unaudited interim condensed consolidated financial statements include the accounts of the Company and our wholly owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation.

Significant Accounting Policies

Except as noted below, there have been no material revisions in our significant accounting policies described in Note 2 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021.

Stock-Based Compensation

We measure and recognize stock-based compensation expense, including employee and non-employee equity awards, based on fair value at the grant date. We use the Black-Scholes-Merton option-pricing model to calculate grant date fair value. For performance-based awards that do not include market-based conditions, we record share-based compensation expense only when the performance-based award is deemed probable of achievement. We utilize both quantitative and qualitative criteria to judge whether the awards are probable of achievement. For awards with market-based performance conditions, we use a Monte-Carlo simulation model to estimate grant date fair value and we recognize the share-based compensation expense of the award over the derived service period regardless of whether the underlying performance condition is met. Stock-based compensation expense recognized in the consolidated statements of operations is based on stock awards ultimately vested, taking into consideration actual forfeitures.

Accounting Pronouncement Issued But Not Yet Adopted

In March 2020, Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, ASU, No. 2020-04, Reference Rate Reform (Topic 848). The guidance contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives, and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. We continue to evaluate the impact of the guidance and may apply the elections as applicable as changes occur.

3. Fair Value Measurements

Fair value accounting is applied for all financial assets and liabilities that are recognized or disclosed at fair value in the interim condensed consolidated financial statements on a recurring basis (at least annually). Our financial instruments consist of cash and cash equivalents, marketable securities, accounts receivables, accounts payable, accrued liabilities, convertible debt and long-term debt. Long-term debt and convertible debt are reported at amortized cost on our interim condensed consolidated balance sheets. Cash and cash equivalents, marketable securities and restricted cash are reported at their respective fair values on our interim condensed consolidated balance sheets. The remaining financial instruments are reported on our interim condensed consolidated balance sheets at cost that approximate current fair values due to their relatively short maturities.

Assets and liabilities recorded at fair value on a recurring basis in the interim condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

In accordance with ASC 820-10, Fair Value Measurements and Disclosures, we determine the fair value of financial and non-financial assets liabilities using the three-tier fair value hierarchy for disclosure of fair value measurements as follows:

Level 1 – Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;

8


 

Level 2 – Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and

Level 3 – Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.

The following table summarizes our financial assets measured at fair value on a recurring basis (in thousands):

 

 

 

March 31, 2022

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

363,672

 

 

$

363,672

 

 

$

 

 

$

 

Corporate debt securities

 

 

41,665

 

 

 

 

 

 

41,665

 

 

 

 

U.S. government agency securities

 

 

40,381

 

 

 

 

 

 

40,381

 

 

 

 

Certificates of deposits

 

 

240

 

 

 

 

 

 

240

 

 

 

 

U.S. government securities

 

 

102,330

 

 

 

 

 

 

102,330

 

 

 

 

U.S. treasury bills

 

$

95,660

 

 

 

95,660

 

 

 

 

 

 

 

Total financial assets

 

$

643,948

 

 

$

459,332

 

 

$

184,616

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Financial Assets: