IDEAYA Biosciences Earnings 2020-09-30

Balance Sheet	Income Statement	Cash Flow

10-Q 1 idya-10q_20200930.htm 10-Q idya-10q_20200930.htm

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 AND EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

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

For the transition period from to

Commission File Number: 001-38915

IDEAYA Biosciences, Inc.

(Exact name of registrant as specified in its charter)

Delaware		47-4268251
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

7000 Shoreline Court, Suite 350 South San Francisco, California		94080
(Address of principal executive offices)		(Zip Code)

(650) 443-6209

(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, $0.0001 par value per share

IDYA

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 November 6, 2020, the registrant had 29,069,719 shares of common stock, $0.0001 par value per share, outstanding.

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts contained in this Form 10-Q, including statements regarding our future results of operations and financial position, business strategy, prospective products, product approvals, research and development costs, timing and likelihood of success, plans and objectives of management for future operations and future results of anticipated products, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of these terms or other similar expressions. The forward-looking statements in this Quarterly Report on Form 10-Q are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. These forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q and are subject to a number of risks, uncertainties and assumptions described under the sections in this Quarterly Report on Form 10-Q entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this Quarterly Report on Form 10-Q. These forward-looking statements are subject to numerous risks, including, without limitation, the following:

•	our status as a development-stage company and our expectation to incur losses in the future;

•	our future capital needs and our need to raise additional funds;

•	our ability to build a pipeline of product candidates and develop and commercialize drugs;

•	our unproven approach to therapeutic intervention;

•	our ability to enroll patients and volunteers in clinical trials, timely and successfully complete those trials and receive necessary regulatory approvals;

•	our ability to establish our own manufacturing facilities and to receive or manufacture sufficient quantities of our product candidates;

•	the success of the collaboration agreement with GSK and our dependence on the development and marketing efforts of GSK for certain of our programs;

•	our expectations about the impact of natural disasters and public health epidemics, such as the COVID-19 pandemic, on our business, results of operations and financial condition;

•	our ability to protect and enforce our intellectual property rights;

•	federal, state, and foreign regulatory requirements, including FDA regulation of our product candidates;

•	the timing of clinical trials and the likelihood of regulatory filings and approvals;

•	our ability to obtain and retain key executives and attract and retain qualified personnel; and

•	our ability to successfully manage our growth.

Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties.

Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and some of which are beyond our control, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not occur or be achieved, and actual results could differ materially from those projected in the forward-looking statements. We qualify all of our forward-looking statements by these cautionary statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.

IDEAYA Biosciences, Inc.

Form 10-Q for Quarterly Period Ended September 30, 2020

Table of Contents


PART I—FINANCIAL INFORMATION	3
Item 1. Financial Statements (Unaudited)	3
Condensed Balance Sheets	3
Condensed Statements of Operations and Comprehensive Loss	4
Condensed Statement of Stockholders’ Equity for Three Months Ended September 30, 2020 and September 30, 2019	5
Condensed Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) for Nine Months Ended September 30, 2020 and September 30, 2019	6
Condensed Statements of Cash Flows	7
Notes to Condensed Financial Statements (Unaudited)	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
Item 3. Quantitative and Qualitative Disclosures About Market Risk	46
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	107
Item 3. Defaults Upon Senior Securities	107
Item 4. Mine Safety Disclosures	107
Item 5. Other information	107
Item 6. Exhibits	108
SIGNATURES	109

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements (UNAUDITED).

IDEAYA Biosciences, Inc.

Condensed Balance Sheets

(in thousands, except share and per share amounts)

(Unaudited)

	September 30,			December 31,
	2020			2019
Assets
Current assets
Cash and cash equivalents	$	81,238		$	34,067
Short-term marketable securities		197,445			64,889
Prepaid expenses and other current assets		2,654			2,698
Total current assets		281,337			101,654
Restricted cash		106			106
Long-term marketable securities		10,158			1,526
Property and equipment, net		4,095			4,642
Right-of-use assets		5,515			5,057
Other non-current assets		173			16
Total assets	$	301,384		$	113,001
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	1,405		$	709
Accrued liabilities		6,390			5,023
Contract liability		44,847			—
Lease liabilities		1,502			1,145
Other current liabilities		29			63
Total current liabilities		54,173			6,940
Long-term contract liability		46,186			—
Long-term lease liabilities		5,584			5,627
Other non-current liabilities		12			34
Total liabilities		105,955			12,601
Commitments and contingencies (Note 6)
Stockholders’ equity
Preferred stock, $0.0001 par value, 10,000,000 shares authorized as of September 30, 2020 and December 31, 2019; no shares issued and outstanding as of September 30, 2020 and December 31, 2019		—			—
Common stock, $0.0001 par value, 300,000,000 shares authorized as of September 30, 2020 and December 31, 2019; 29,066,161 and 20,339,461 shares issued and outstanding as of September 30, 2020 and December 31, 2019		3			2
Additional paid-in capital		317,242			192,824
Accumulated other comprehensive income		35			65
Accumulated deficit		(121,851	)		(92,491	)
Total stockholders’ equity		195,429			100,400
Total liabilities and stockholders’ equity	$	301,384		$	113,001

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

IDEAYA Biosciences, Inc.

Condensed Statements of Operations and Comprehensive Loss

(in thousands, except share and per share amounts)

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Collaboration revenue	$	8,967		$	—		$	8,967		$	—
Total revenue		8,967			—			8,967			—
Operating expenses
Research and development		10,025			8,923			27,647			25,778
General and administrative		3,938			2,700			11,384			7,174
Total operating expenses		13,963			11,623			39,031			32,952
Loss from operations		(4,996	)		(11,623	)		(30,064	)		(32,952	)
Interest income and other income (expense), net		70			654			704			1,758
Net loss	$	(4,926	)	$	(10,969	)	$	(29,360	)	$	(31,194	)
Change in unrealized (losses) gains on marketable securities		(22	)		41			(30	)		109
Comprehensive loss	$	(4,948	)	$	(10,928	)	$	(29,390	)	$	(31,085	)
Net loss per common share, basic and diluted	$	(0.17	)	$	(0.54	)	$	(1.26	)	$	(3.15	)
Weighted average number of common shares outstanding used in computing net loss per share, basic and diluted		28,396,670			20,158,223			23,235,218			9,895,574

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

IDEAYA Biosciences, Inc.

Condensed Statements of Stockholders’ Equity

(in thousands, except share amounts)

(Unaudited)

								Accumulated
						Additional		Other						Total
	Common Stock					Paid-In		Comprehensive			Accumulated			Stockholders'
	Shares			Amount		Capital		Income (Loss)			Deficit			Equity
Balances as of June 30, 2020		27,184,824		$	3	$	288,923	$	57		$	(116,925	)	$	172,058
Issuance of common stock upon follow-on public offering, net of issuance costs		500,000			—		7,040		—			—			7,040
Issuance of common stock in private placement, net of issuance costs		1,333,333			—		19,988		—			—			19,988
Issuance of common stock upon exercise of stock options		53,353			—		297		—			—			297
Repurchase of early exercised shares		(5,349	)		—		—		—			—			—
Vesting of early exercised common stock options		—			—		13		—			—			13
Stock-based compensation		—			—		981		—			—			981
Other comprehensive loss		—			—		—		(22	)		—			(22	)
Net loss		—			—		—		—			(4,926	)		(4,926	)
Balances as of September 30, 2020		29,066,161		$	3	$	317,242	$	35		$	(121,851	)	$	195,429

Balances as of June 30, 2019		20,268,103		$	2	$	191,310	$	37		$	(70,741	)	$	120,608
Issuance of common stock upon exercise of stock options		62,501			—		190		—			—			190
Repurchase of early exercised shares		(2,362	)		—		—		—			—			—
Vesting of early exercised common stock options and restricted stock		—			—		18		—			—			18
Stock-based compensation		—			—		518		—			—			518
Other comprehensive income		—			—		—		41			—			41
Net loss		—			—		—		—			(10,969	)		(10,969	)
Balances as of September 30, 2019		20,328,242		$	2	$	192,036	$	78		$	(81,710	)	$	110,406

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

IDEAYA Biosciences, Inc.

Condensed Statements of Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)

(in thousands, except share amounts)

(Unaudited)

														Accumulated						Total
	Redeemable Convertible											Additional		Other						Stockholders'
	Preferred Stock						Common Stock					Paid-In		Comprehensive			Accumulated			Equity
	Shares			Amount			Shares			Amount		Capital		Income (Loss)			Deficit			(Deficit)
Balances as of December 31, 2019		—		$	—			20,339,461		$	2	$	192,824	$	65		$	(92,491	)	$	100,400
Issuance of common stock upon follow-on public offering, net of issuance costs		—			—			7,166,667			1		100,663		—			—			100,664
Issuance of common stock in private placement, net of issuance costs		—			—			1,333,333					19,988		—			—			19,988
Issuance of common stock upon exercise of stock options		—			—			218,724			—		1,028		—			—			1,028
Employee stock purchase plan (ESPP) purchase		—						18,494			—		132		—			—			132
Repurchase of early exercised shares		—			—			(10,518	)		—		—		—			—			—
Vesting of early exercised common stock options		—			—			—			—		44		—			—			44
Stock-based compensation		—			—			—			—		2,563		—			—			2,563
Other comprehensive loss		—			—			—			—		—		(30	)		—			(30	)
Net loss		—			—			—			—		—		—			(29,360	)		(29,360	)
Balances as of September 30, 2020		—		$	—			29,066,161		$	3	$	317,242	$	35		$	(121,851	)	$	195,429

Balances as of December 31, 2018		13,139,794		$	138,391			1,335,690		$	—	$	1,599	$	(31	)	$	(50,516	)	$	(48,948	)
Conversion of redeemable convertible preferred stock into common stock		(13,139,794	)		(138,391	)		13,139,794			1		138,390		—			—			138,391
Issuance of common stock upon initial public offering, net of issuance costs		—			—			5,750,000			1		50,246		—			—			50,247
Issuance of common stock upon exercise of stock options		—			—			114,890			—		261		—			—			261
Early exercised common stock options		—			—			2,112			—		—								—
Repurchase of early exercised shares		—			—			(14,244	)		—		—		—			—			—
Vesting of early exercised common stock options and restricted stock		—			—			—			—		91		—			—			91
Stock-based compensation		—			—			—			—		1,449		—			—			1,449
Other comprehensive income		—			—			—			—		—		109			—			109
Net loss		—			—			—			—		—		—			(31,194	)		(31,194	)
Balances as of September 30, 2019		—		$	—			20,328,242		$	2	$	192,036	$	78		$	(81,710	)	$	110,406

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

IDEAYA Biosciences, Inc.

Condensed Statements of Cash Flows

(in thousands)

(Unaudited)

	Nine Months Ended September 30,
	2020			2019
Cash flows from operating activities
Net loss	$	(29,360	)	$	(31,194	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation and amortization		1,020			915
Net amortization of premiums and discounts on marketable securities		160			(451	)
Stock-based compensation		2,563			1,449
Loss on sale of property and equipment		2			14
Realized gain on marketable securities		(3	)		(7	)
Changes in assets and liabilities
Prepaid expenses and other assets		(81	)		(2,071	)
Right-of-use assets		(459	)		870
Accounts payable		684			(153	)
Accrued and other liabilities		1,186			1,000
Contract liabilities		91,033			—
Lease liabilities		314			(979	)
Net cash provided by (used in) operating activities		67,059			(30,607	)
Cash flows from investing activities
Purchases of property and equipment, net		(314	)		(1,137	)
Purchases of marketable securities		(214,412	)		(86,117	)
Maturities of marketable securities		73,037			67,538
Sales of marketable securities		—			18,094
Net cash used in investing activities		(141,689	)		(1,622	)
Cash flows from financing activities
Proceeds from issuance of common stock upon public offering, net of issuance costs		100,664			50,321
Proceeds from issuance of common stock in private placement, net of issuance costs		19,988			—
Proceeds from exercise of common stock options, net of repurchases		1,017			251
Proceeds from ESPP purchase		132			—
Net cash provided by financing activities		121,801			50,572
Net increase in cash, cash equivalents and restricted cash		47,171			18,343
Cash, cash equivalents and restricted cash
Cash, cash equivalents and restricted cash, at beginning of period		34,173			20,611
Cash, cash equivalents and restricted cash, at end of period	$	81,344		$	38,954

Price	9.17	EPS	-1
Shares	20	P/E	-9
MCap	186	P/FCF	-18
Net Debt	-109	EBIT	-22
TEV	77	TEV/EBIT	-4
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-09-30	Filed 2020-11-12
10-Q	2020-06-30	Filed 2020-08-12
10-Q	2020-03-31	Filed 2020-05-12
10-K	2019-12-31	Filed 2020-03-24
10-Q	2019-09-30	Filed 2019-11-13
10-Q	2019-06-30	Filed 2019-08-12
S-1	2019-04-26	Public Filing

8-K	2020-11-12
8-K	2020-09-23
8-K	2020-08-12
8-K	2020-08-03
8-K	2020-06-26
8-K	2020-06-17
8-K	2020-06-16
8-K	2020-06-15
8-K	2020-05-12
8-K	2020-04-06
8-K	2020-03-24
8-K	2020-03-11
8-K	2020-03-05
8-K	2020-01-13
8-K	2019-12-17
8-K	2019-11-20
8-K	2019-11-13
8-K	2019-09-30
8-K	2019-08-12
8-K	2019-05-28

EX-10.1	idya-ex101_656.htm
EX-31.1	idya-ex311_8.htm
EX-31.2	idya-ex312_6.htm
EX-32.1	idya-ex321_9.htm

IDYA 10Q Quarterly Report

IDEAYA Biosciences Earnings 2020-09-30