10-Q 1 mrtx-20220930.htm 10-Q mrtx-20220930
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
             QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2022
 or
                  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 Commission File Number: 001-35921
______________________________________________________
Mirati Therapeutics, Inc.
(Exact Name of Registrant as Specified in Its Charter)
______________________________________________________
Delaware46-2693615
(State of Incorporation)(I.R.S. Employer Identification No.)
3545 Cray Court,San Diego,California92121
(Address of Principal Executive Offices)(Zip Code)
(858) 332-3410
(Registrant’s Telephone Number, Including Area Code)
______________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock, par value $0.001 per shareMRTXThe 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 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, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Securities Exchange Act of 1934.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller 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 financing 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 3, 2022, there were 57,586,881 total shares of common stock outstanding.


MIRATI THERAPEUTICS, INC.
FORM 10-Q
 
TABLE OF CONTENTS
 
PART I. FINANCIAL INFORMATION
   
 
 
 
 
   
PART II. OTHER INFORMATION
   
   
SIGNATURES

i

PART I. FINANCIAL INFORMATION
ITEM 1.
Financial Statements
MIRATI THERAPEUTICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for share and per share amounts)

September 30,December 31,
20222021
(Unaudited)
ASSETS  
Current assets  
Cash and cash equivalents$298,843 $413,083 
Short-term investments902,149 1,078,257 
Other current assets24,792 16,643 
Total current assets1,225,784 1,507,983 
Property and equipment, net17,900 15,824 
Long-term investment1,882 8,218 
Right-of-use asset36,460 37,680 
Other long-term assets21,058 19,049 
Total assets$1,303,084 $1,588,754 
LIABILITIES AND SHAREHOLDERS' EQUITY  
Current liabilities  
Accounts payable$19,452 $35,163 
Accrued liabilities107,534 108,495 
Total current liabilities126,986 143,658 
Lease liability44,093 45,879 
Other liabilities2,951 2,179 
Total liabilities174,030 191,716 
Commitments and contingencies (see Note 9)
Shareholders' equity  
Preferred stock, $0.001 par value, 10,000,000 shares authorized; none issued and outstanding at both September 30, 2022 and December 31, 2021
  
Common stock, $0.001 par value; 100,000,000 authorized; 57,568,769 and 55,356,904 issued and outstanding at September 30, 2022 and December 31, 2021, respectively
58 55 
Additional paid-in capital3,385,539 3,099,937 
Accumulated other comprehensive (loss) income(6,129)9,068 
Accumulated deficit(2,250,414)(1,712,022)
Total shareholders' equity1,129,054 1,397,038 
Total liabilities and shareholders' equity$1,303,084 $1,588,754 
See accompanying notes

1

MIRATI THERAPEUTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited, in thousands, except for share and per share amounts)

 
Three Months Ended
September 30,
Nine Months Ended
September 30,
 2022202120222021
Revenue  
License and collaboration revenues$5,431 $71,793 $11,502 $71,793 
Total revenue5,431 71,793 11,502 71,793 
Expenses  
Research and development131,076 116,109 390,391 354,755 
General and administrative60,798 35,183 168,977 93,144 
Total operating expenses191,874 151,292 559,368 447,899 
Loss from operations(186,443)(79,499)(547,866)(376,106)
Other income (expense), net13,136 2,744 9,728 (2,759)
Loss before income taxes(173,307)(76,755)(538,138)(378,865)
Income tax expense254 3,299 254 3,299 
Net loss$(173,561)$(80,054)$(538,392)$(382,164)
Foreign currency translation adjustment(9,485) (9,485) 
Unrealized loss on available-for-sale investments(1)(6)(5,712)(164)
Comprehensive loss$(183,047)$(80,060)$(553,589)$(382,328)
Net loss per share, basic and diluted$(3.09)$(1.55)$(9.66)$(7.45)
Weighted average common shares outstanding, basic and diluted56,219,41651,655,25955,747,20551,305,547


See accompanying notes

2

MIRATI THERAPEUTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited, in thousands, except share data)

Three Months Ended September 30, 2022
 Common StockAdditional
paid-in
capital
Accumulated other comprehensive (loss) incomeAccumulated
deficit
Total
shareholders’
equity
 SharesAmount
Balance at June 30, 2022
55,592,631 $56 $3,185,444 $3,357 $(2,076,853)$1,112,004 
Net loss— — — — (173,561)(173,561)
Issuance of common stock under ATM, net of issuance costs1,880,097 2 155,009 — — 155,011 
Share-based compensation expense— — 42,992 — — 42,992 
Issuance of common stock under equity incentive plans96,041 — 2,094 — — 2,094 
Unrealized loss on investments— — — (1)— (1)
Foreign currency translation adjustment— — — (9,485)— (9,485)
Balance at September 30, 2022
57,568,769 $58 $3,385,539 $(6,129)$(2,250,414)$1,129,054 

Three Months Ended September 30, 2021
 Common StockAdditional
paid-in
capital
Accumulated other comprehensive (loss) incomeAccumulated
deficit
Total
shareholders’
equity
 SharesAmount
Balance at June 30, 2021
51,608,944 $52 $2,551,615 $9,601 $(1,432,348)$1,128,920 
Net loss— — — — (80,054)(80,054)
Share-based compensation expense— — 26,933 — — 26,933 
Issuance of common stock under equity incentive plans158,139  8,232 — — 8,232 
Unrealized loss on investments— — — (6)— (6)
Balance at September 30, 2021
51,767,083 $52 $2,586,780 $9,595 $(1,512,402)$1,084,025 


See accompanying notes
3

MIRATI THERAPEUTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(Unaudited, in thousands, except share data)

Nine Months Ended September 30, 2022
 Common StockAdditional
paid-in
capital
Accumulated other comprehensive (loss) incomeAccumulated
deficit
Total
shareholders’
equity
 SharesAmount
Balance at December 31, 2021
55,356,904 $55 $3,099,937 $9,068 $(1,712,022)$1,397,038 
Net loss— — — — (538,392)(538,392)
Issuance of common stock under ATM, net of issuance costs1,880,097 2 155,009 — — 155,011 
Share-based compensation expense— — 124,581 — — 124,581 
Issuance of common stock from ESPP29,891 — 995 — — 995 
Issuance of common stock under equity incentive plans301,877 1 5,017 — — 5,018 
Unrealized loss on investments— — — (5,712)— (5,712)
Foreign currency translation adjustment— — — (9,485)— (9,485)
Balance at September 30, 2022
57,568,769 $58 $3,385,539 $(6,129)$(2,250,414)$1,129,054 

Nine Months Ended September 30, 2021
 Common StockAdditional
paid-in
capital
Accumulated other comprehensive (loss) incomeAccumulated
deficit
Total
shareholders'
equity
 SharesAmount
Balance at December 31, 2020
50,439,069 $50 $2,481,218 $9,759 $(1,130,238)$1,360,789 
Net loss— — — — (382,164)(382,164)
Share-based compensation expense— — 79,624 — — 79,624 
Issuance of common stock from ESPP9,029 — 1,214 — — 1,214 
Issuance of common stock under equity incentive plans695,171 1 24,725 — — 24,726 
Net exercise of warrants623,814 1 (1)— —  
Unrealized loss on investments— — — (164)— (164)
Balance at September 30, 2021
51,767,083 $52 $2,586,780 $9,595 $(1,512,402)$1,084,025 


See accompanying notes
4

MIRATI THERAPEUTICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)

 
Nine Months Ended September 30,
 20222021
Operating activities:  
Net loss$(538,392)$(382,164)
Non-cash adjustments reconciling net loss to operating cash flows  
Change in fair value on long-term investment6,336 4,376 
Depreciation of property and equipment2,038 1,219 
Amortization of premium and accretion of discounts on investments(151)3,503 
Share-based compensation expense124,581 79,624 
Loss on disposal of fixed assets294
Foreign currency adjustments(9,485)
Changes in operating assets and liabilities:  
Other current assets(8,149)(3,939)
Other long-term assets(2,009)(9,218)
Right-of-use asset1,220 1,718 
Lease liability4,039 3,927 
Accounts payable, accrued liabilities and other liabilities(22,092)50,139 
Cash flows used in operating activities(441,770)(250,815)
Investing activities:  
Purchases of short-term investments(719,371)(1,059,140)
Sales and maturities of short-term investments889,918 648,223 
Purchases of property and equipment(4,041)(7,146)
Cash flows provided by (used in) investing activities166,506 (418,063)
Financing activities:  
Proceeds from issuance of common stock under ATM, net of issuance costs155,011  
Proceeds from issuance of common stock under equity incentive plans5,018 24,726 
Proceeds from issuances under employee stock purchase plan995 1,214 
Cash flows provided by financing activities161,024 25,940 
Decrease in cash, cash equivalents and restricted cash(114,240)(642,938)
Cash, cash equivalents and restricted cash, beginning of period413,703 886,182 
Cash, cash equivalents and restricted cash, end of period$299,463 $243,244 
Reconciliation of cash, cash equivalents and restricted cash, end of period:
Cash and cash equivalents$298,843 $242,624 
Restricted cash included in other long-term assets620 620 
Total cash, cash equivalents and restricted cash$299,463 $243,244 
Supplemental disclosures of non-cash investing activities:
Accrued capital expenditures$367 $279 

See accompanying notes

5

MIRATI THERAPEUTICS, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
1.    Description of Business

Mirati Therapeutics, Inc. (“Mirati” or the “Company”) is a clinical-stage oncology company developing product candidates to address the genetic and immunological promoters of cancer. The Company was incorporated under the laws of the State of Delaware on April 29, 2013 as Mirati Therapeutics, Inc. and is located in San Diego, California. The Company has a wholly owned subsidiary in the Netherlands, Mirati Therapeutics B.V. (“Mirati B.V.”), and a wholly owned subsidiary in Switzerland, Mirati Therapeutics (Suisse) GmbH (“Mirati Suisse”). The Company's wholly-owned subsidiary in Canada, MethylGene, Inc. (“MethylGene”), was reorganized in August 2022 and is in the process of formally dissolving. As a result of the reorganization, the Company recognized a gain of $9.5 million within other income during the quarter ended September 30, 2022, which represented the cumulative foreign currency translation gain within accumulated other comprehensive income. The Company operates as one business segment, primarily in the United States. The Company’s common stock has been listed on the Nasdaq Global Select Market since June 5, 2018, and was previously listed on the Nasdaq Capital Market since July 15, 2013, under the ticker symbol “MRTX.”

2.    Summary of Significant Accounting Policies

Basis of Presentation

The unaudited condensed consolidated financial statements contained in this Quarterly Report on Form 10-Q have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been omitted.

In the opinion of management, the information reflects all adjustments necessary to make the results of operations for the interim periods a fair statement of such operations. All such adjustments are of a normal recurring nature. Interim results are not necessarily indicative of results for the full year. The condensed consolidated balance sheet as of December 31, 2021 has been derived from the audited consolidated financial statements at that date but does not include all information and footnotes required by U.S. GAAP for complete financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Use of Estimates

The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period.

Reported amounts and footnote disclosures reflect the overall economic conditions that are most likely to occur and anticipated measures management intends to take. Actual results could differ materially from those estimates. Estimates and assumptions are reviewed quarterly. Any revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

Cash, Cash Equivalents and Short-term Investments

Cash and cash equivalents consist of cash and highly liquid securities with original maturities at the date of acquisition of ninety days or less. Investments with an original maturity of more than ninety days are considered short-term investments and have been classified by management as available-for-sale. These investments are classified as current assets, even though the stated maturity date may be one year or more beyond the current consolidated balance sheet date, which reflects management’s intention to use the proceeds from sales of these securities to fund its operations, as necessary. Such investments are carried at fair value, and the unrealized gains and losses are reported as a component of accumulated other comprehensive income in shareholders’ equity until realized. Realized gains and losses from the sale of available-for-sale securities, if any, are determined on a specific identification basis.    

6

Concentration of Credit Risk

The Company invests its excess cash in accordance with its investment policy. The Company’s investments are comprised primarily of commercial paper and debt instruments of financial institutions, corporations, U.S. government-sponsored agencies and the U.S. Treasury. The Company mitigates credit risk by maintaining a diversified portfolio and limiting the amount of investment exposure as to institution, maturity and investment type. Financial instruments that potentially subject the Company to significant credit risk consist principally of cash equivalents and short-term investments.

Revenue Recognition

The Company recognizes revenue in connection with certain collaboration and license agreements in accordance with the guidance of Revenue From Contracts With Customers, Accounting Standards Codification (“ASC”) Topic 606 (“Topic 606”). Under Topic 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements the Company determines are within the scope of Topic 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer.  At contract inception, once the contract is determined to be within the scope of Topic 606, the Company assesses the goods or services promised within each contract and determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

Leases

The Company determines if an arrangement is a lease at inception. Lease right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. For operating leases with an initial term greater than 12 months, the Company recognizes operating lease right-of-use assets and operating lease liabilities based on the present value of lease payments over the lease term at the commencement date. Operating lease right-of-use assets are comprised of the lease liability plus any lease payments made and excludes lease incentives. Lease terms include options to renew or terminate the lease when the Company is reasonably certain that the renewal option will be exercised or when it is reasonably certain that the termination option will not be exercised. For the Company’s operating leases, if the interest rate used to determine the present value of future lease payments is not readily determinable, the Company estimates its incremental borrowing rate as the discount rate for the lease. The Company’s incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in similar economic environments. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has elected the practical expedient to not separate lease and non-lease components.

Net Loss per Share

Basic net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period, without consideration for common share equivalents as they are anti-dilutive. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and common share equivalents outstanding for the period, as well as certain shares that are contingently issuable. Common share equivalents outstanding, determined using the treasury stock method, are comprised of shares that may be issued under the Company’s stock option and warrant agreements, as well as restricted stock units and performance stock units.

7

The following table presents the weighted-average number of common share equivalents, calculated using the treasury stock method, as well as certain shares that are contingently issuable, not included in the calculation of diluted net loss per share due to the anti-dilutive effect of the securities:
Three Months Ended September 30,
Nine Months Ended September 30,
2022202120222021
Common stock options1,178,854 2,244,669 1,260,178 2,445,016 
Common stock warrants7,605,708 7,605,764 7,605,716 7,749,909 
Unvested restricted stock units and performance stock units1,872,911 658,971 1,399,300 597,542 
Total10,657,473 10,509,404 10,265,194 10,792,467 

Recently Issued and Recently Adopted Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. The Company has evaluated recently issued accounting pronouncements and does not believe any will have a material impact on the Company’s condensed consolidated financial statements or related financial statement disclosures.

3.    Investments

The following tables summarize the Company’s short-term investments (in thousands):
As of September 30, 2022
MaturityAmortized costGross unrealized gainsGross unrealized lossesEstimated fair value
Corporate debt securities
2 years or less
$132,604 $ $(1,470)$131,134 
Commercial paper
1 year or less
521,843 21 (1,472)520,392 
U.S. Agency bonds
2 years or less
40,926  (294)40,632 
U.S. Treasury bills
1 year or less
212,931  (2,940)209,991 
$908,304 $21 $(6,176)$902,149 

As of December 31, 2021
Maturity Amortized costGross unrealized gainsGross unrealized lossesEstimated fair value
Corporate debt securities
2 years or less
$236,170 $36 $(248)$235,958 
Commercial paper
1 year or less
621,947 127 (95)621,979 
U.S. Agency bonds
1 year or less
58,092   58,092 
U.S. Treasury bills
2 years or less
162,500  (272)162,228 
$1,078,709 $163 $(615)$1,078,257 

The Company has classified all of its short-term investments as available-for-sale as the sale of such securities may be required prior to maturity to implement management strategies, and accordingly, these investments are carried at fair value. As of September 30, 2022 and December 31, 2021, the unrealized losses for available-for-sale investments were non-credit related, and the Company does not intend to sell the investments before recovery of their amortized cost basis, which may be at the time of maturity. As of September 30, 2022 and December 31, 2021, no allowance for credit losses was recorded. During the three and nine months ended September 30, 2022 and 2021, the Company did not recognize any impairment losses related to investments.

The long-term investment balance of $1.9 million and $8.2 million as of September 30, 2022 and December 31, 2021, respectively, is comprised of 588,235 shares of ORIC Pharmaceuticals, Inc. (“ORIC”) common stock. As of September 30, 2022 the investment is carried at fair value which is based on the closing price of ORIC’s common stock on the last trading day of the reporting period. The Company recorded a loss of $0.8 million and $6.3 million in other income (expense) for the three and nine months ended September 30, 2022, respectively. The Company recorded a gain of $2.3 million and a loss of $4.4 million in other income (expense) for the three and nine months ended September 30, 2021, respectively. As of December 31,
8

2021, the fair value was based on the last trading day of the reporting period and was adjusted for a discount for lack of marketability due to an eighteen-month lock-up period which expired in February 2022. The Company currently does not intend to sell ORIC shares within 12 months from September 30, 2022. See Note 4 - Fair Value Measurements.

4.    Fair Value Measurements

The Company has certain financial assets and liabilities recorded at fair value which have been classified as Level 1, 2 or 3 within the fair value hierarchy as described in the accounting standards for fair value measurements.

The authoritative guidance for fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or the most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact. The guidance prioritizes the inputs used in measuring fair value into the following hierarchy:
 
Level 1- Quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2- Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and

Level 3- Unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing.

The following tables summarize the assets measured at fair value on a recurring basis (in thousands):

September 30, 2022
TotalLevel 1Level 2Level 3
Assets
Cash and cash equivalents:
Cash$125,310 $125,310 $ $ 
Money market funds125,656 125,656   
Commercial paper47,877  47,877  
Total cash and cash equivalents298,843 250,966 47,877  
Short-term investments:
U.S. Treasury bills209,991 209,991   
Corporate debt securities131,134  131,134  
Commercial paper520,392  520,392  
U.S. Agency bonds40,632  40,632  
Total short-term investments902,149 209,991 692,158  
Long-term investment:
ORIC Pharmaceuticals, Inc.1,882 1,882   
Total$1,202,874 $462,839 $740,035 $ 

9

December 31, 2021
TotalLevel 1Level 2Level 3
Assets
Cash and cash equivalents:
Cash$19,347 $19,347 $ $ 
Money market funds393,736 393,736   
Total cash and cash equivalents413,083 413,083   
Short-term investments:
U.S. Treasury bills162,228 162,228   
Corporate debt securities235,958  235,958  
Commercial paper621,979  621,979  
U.S. Agency bonds58,092  58,092  
Total short-term investments1,078,257 162,228 916,029  
Long-term investment:
ORIC Pharmaceuticals, Inc.8,218   8,218 
Total$1,499,558 $575,311 $916,029 $8,218 
    
The Company’s investments in Level 1 assets are valued based on publicly available quoted market prices for identical securities as of September 30, 2022 and December 31, 2021. The Company determines the fair value of Level 2 related securities with the aid of valuations provided by third parties using proprietary valuation models and analytical tools. These valuation models and analytical tools use market pricing or prices for similar instruments that are both objective and publicly available, including matrix pricing or reported trades, benchmark yields, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids and/or offers.

The Company’s long-term investment in ORIC as of December 31, 2021 was considered a Level 3 fair value measurement and utilized a combination of the Asian Protective Put Option and Finnerty Put Option fair value techniques with unobservable inputs of 69% volatility and an expected term of 0.1 years to determine the discount for lack of marketability of 5.0%. In February 2022, the eighteen-month lock-up period expired, and because ORIC common stock is quoted in an active market, it meets the criteria of a Level 1 investment. In February 2022, the Company transferred the investment in ORIC from a Level 3 fair value measurement to a Level 1 fair value measurement.

The following table represents the change in estimated fair value of the Company’s Level 3 investment during 2022:
March 31, 2022
Fair value of Level 3 investment - December 31, 2021
$8,218 
Change in fair value during the first quarter of 2022(5,077)
Transfer from Level 3 to Level 1 in February 2022(3,141)
Fair value of Level 3 investment - March 31, 2022$ 

There were no transfers between fair value measurement levels during the three months ended September 30, 2022. There were no transfers between fair value measurement levels during the three and nine months ended September 30, 2021.

10

5.    Other Current Assets and Other Long-Term Assets

Other current assets and other long-term assets consisted of the following (in thousands):
September 30,December 31,
 20222021
Other current assets:
Prepaid expenses$15,700 $11,895 
Deposits and other receivables7,407 2,235 
Interest receivables1,685 2,513 
Total other current assets$24,792 $16,643 
Other long-term assets:
Deposits and prepaid expenses$20,438 $18,429 
Restricted cash620 620 
Total other long-term assets$21,058 $19,049 

6.    Accrued Liabilities and Other Liabilities

Accrued liabilities and other liabilities consisted of the following (in thousands):
September 30,December 31,
 20222021
Accrued liabilities:
Accrued clinical expense$48,003 $29,038 
Accrued manufacturing expense10,763 34,153 
Accrued development expense6,531 10,910 
Accrued compensation and benefits28,563 25,845 
Lease liability (current)7,166 1,341 
Other accrued expenses6,508 7,208 
Total accrued liabilities$107,534 $108,495 
Other liabilities$2,951 $2,179 

7.    License and Collaboration Agreements

BeiGene Agreement

Terms of Agreement

On January 7, 2018, the Company and BeiGene Ltd. (“BeiGene”) entered into a Collaboration and License Agreement (the “BeiGene Agreement”), pursuant to which the Company and BeiGene agreed to collaboratively develop sitravatinib in Asia (excluding Japan and certain other countries), Australia and New Zealand (collectively, the “BeiGene Licensed Territory”). Under the BeiGene Agreement, the Company granted BeiGene an exclusive license to develop, manufacture and commercialize sitravatinib in the BeiGene Licensed Territory, with the Company retaining exclusive rights for the development, manufacture and commercialization of sitravatinib outside the BeiGene Licensed Territory.

As consideration for the rights granted to BeiGene under the BeiGene Agreement, BeiGene paid the Company a non-refundable, non-creditable up-front fee of $10.0 million. BeiGene is also required to make milestone payments to the Company of up to an aggregate of $123.0 million upon the first achievement of specified clinical, regulatory and sales milestones. The BeiGene Agreement additionally provides that BeiGene is obligated to pay the Company royalties at tiered percentage rates ranging from mid-single digits to twenty percent on annual net sales of licensed products in the BeiGene Licensed Territory, subject to reduction under specified circumstances. The BeiGene Agreement also provides that the Company will supply BeiGene with sitravatinib for use in BeiGene’s development activities in the BeiGene Licensed Territory.

11

The BeiGene Agreement will terminate upon the expiration of the last royalty term for the licensed products, which is the latest of (i) the date of expiration of the last valid patent claim related to the licensed products under the BeiGene Agreement, (ii) ten years after the first commercial sale of a licensed product and (iii) the expiration of any regulatory exclusivity as to a licensed product. BeiGene may terminate the BeiGene Agreement at any time by providing 60 days prior written notice to the Company. Either party may terminate the BeiGene Agreement upon a material breach by the other party that remains uncured following 60 days after the date of written notice of such breach or upon certain bankruptcy events. In addition, the Company may terminate the BeiGene Agreement upon written notice to BeiGene under specified circumstances if BeiGene challenges the licensed patent rights.

Revenue Recognition

The Company evaluated the BeiGene Agreement under Topic 606. At the time it entered into the BeiGene Agreement, the Company determined the transaction price was equal to the up-front fee of $10.0 million. The transaction price was allocated to the performance obligations on the basis of the relative stand-alone selling price estimated for each performance obligation. In estimating the stand-alone selling price for each performance obligation, the Company developed assumptions that require judgment and included forecasted revenues, expected development timelines, discount rates, probabilities of technical and regulatory success and costs for manufacturing clinical supplies. As such, of the up-front fee, the Company allocated $9.5 million to the license to the Company’s intellectual property, bundled with the associated know-how, and the remaining $0.5 million to the initial obligation to supply sitravatinib for clinical development in the BeiGene Licensed Territory.

Licenses of Intellectual Property.   The license to the Company’s intellectual property, bundled with the associated know-how, represents a distinct performance obligation and the Company recognized the full revenue amount of $9.5 million related to this performance obligation as license and collaboration revenues in 2018.

Manufacturing Supply Services.  The Company’s initial obligation to supply sitravatinib for clinical development in the BeiGene Licensed Territory represents a distinct performance obligation, and the $0.5 million initial supply obligation was fully recognized as license and collaboration revenues as of December 31, 2020. Although the initial performance obligation was satisfied, BeiGene may request additional sitravatinib in the future for clinical development in the BeiGene Licensed Territory. No revenue was recognized as license and collaboration revenues related to this performance obligation for the three and nine months ended September 30, 2022. The Company recognized $0.1 million as license and collaboration revenues related to this performance obligation for the three and nine months ended September 30, 2021.

Milestone Payments. The Company is entitled to development milestones under the BeiGene Agreement and certain regulatory milestone payments which are paid upon receipt of regulatory approvals within the BeiGene Licensed Territory. No milestone payments were earned during the three and nine months ended September 30, 2022. The Company earned a $5.0 million milestone payment related to the initiation of the first pivotal clinical trial in the BeiGene Licensed Territory during the three and nine months ended September 30, 2021. The Company evaluated whether the remaining milestones are considered probable of being reached and determined that their achievement is highly dependent on factors outside of the Company’s control. Therefore, these payments have been fully constrained and are not included in the transaction price. At the end of each subsequent reporting period, the Company will re-evaluate the probability of achievement of each milestone and any related constraint, and if necessary, adjust its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect the reported amount of license and collaboration revenues in the period of adjustment.

Royalties.  As the license is deemed to be the predominant item to which sales-based royalties relate, the Company will recognize revenue when the related sales occur. No royalty revenue was recognized during the three and nine months ended September 30, 2022 or 2021.

12

Pfizer Agreement

In October 2014, the Company entered into a drug discovery collaboration and option agreement with Array BioPharma, Inc. (“Array,” acquired by Pfizer Inc. (“Pfizer”) in July 2019) whereby Array provided services to facilitate the discovery, optimization and development of small molecule compounds that bind and specifically inhibit KRAS G12C. In June 2017, the two parties entered into a second, separate discovery collaboration and option agreement whereby Array provided services to facilitate the discovery, optimization and development of small molecule compounds that bind and specifically inhibit KRAS G12D. Both agreements established an option mechanism which enabled the Company to elect an exclusive worldwide license under the technology for the development and commercialization of certain products based on these compounds.

Under these agreements, following the joint discovery periods, which have since concluded, the Company exercised its options to retain exclusive worldwide licenses to develop, manufacture and commercialize inhibitors of KRAS G12C and KRAS G12D, including, but not limited to, adagrasib and MRTX1133. Under each agreement, Pfizer is entitled to potential development milestone payments of up to $9.3 million from the Company, and tiered sales milestone payments of up to $337.0 million based upon worldwide net sales, and tiered royalties in the high single digits to mid-teens on worldwide net sales of products arising from the collaborations. Under the agreements, the Company has incurred $9.5 million in development milestone payments from inception through September 30, 2022.

For the three and nine months ended September 30, 2022, the Company did not incur expenses under these agreements. For the three months ended September 30, 2021, the Company did not incur expense under these agreements. For the nine months ended September 30, 2021, the Company incurred expenses under these agreements with Pfizer of $5.0 million related to initiation of the first Phase 3 trial for adagrasib.

The royalty term for each agreement is payable on a country-by-country and product-by-product basis, and separately will terminate at the later of (i) the date of expiration of the last valid patent claim within the collaboration patent rights or the Pfizer background technology covering such product in the country in which such product is sold at the time of such sale, or (ii) ten years after the first commercial sale of such product in such country. The Company may terminate each agreement at any time by providing 60 days prior written notice to Pfizer. Either party may terminate each agreement upon a material breach by the other party that remains uncured following 60 days after the date of written notice of such breach or upon certain bankruptcy events.

ORIC Pharmaceuticals Agreement

Terms of Agreement

On August 3, 2020, the Company entered into a license agreement with ORIC Pharmaceuticals, Inc. (“ORIC”) pursuant to which the Company granted to ORIC an exclusive, worldwide license to develop and commercialize the Company’s allosteric polycomb repressive complex 2 (“PRC2”) inhibitors for all indications (the “ORIC Agreement”). In accordance with the terms of the ORIC Agreement, in exchange for such license, ORIC issued 588,235 shares of its common stock (the “Shares”) to the Company on August 3, 2020. The Shares were issued under a stock issuance agreement entered into between ORIC and the Company, dated August 3, 2020. During the eighteen-month period following the date of the stock issuance agreement, the Company was subject to certain transfer restrictions. ORIC is not obligated to pay the Company milestone payments or royalty payments under the ORIC Agreement.

Unless terminated earlier, the ORIC Agreement will continue in effect on a country-by-country and licensed product-by-licensed product basis until the later (a) the expiration of the last valid claim of a licensed patent covering such licensed product in such country or (b) ten years after the first commercial sale of such licensed product in such country. Following the expiration of the ORIC Agreement, ORIC will retain its licenses under the intellectual property the Company licensed to ORIC on a royalty-free basis. The Company and ORIC may each terminate the ORIC Agreement if the other party materially breaches the terms of such agreement, subject to specified notice and cure provisions, or enters into bankruptcy or insolvency proceedings. The Company may terminate this agreement if ORIC challenges any of the patent rights licensed to ORIC by the Company or if ORIC discontinues development of licensed products for a specified period of time. ORIC also has the right to terminate the ORIC Agreement without cause by providing prior written notice to the Company.

13

Revenue Recognition

The Company accounted for the ORIC Agreement under Topic 606 and identified the granting of an exclusive, worldwide license to develop and commercialize the Company’s allosteric PRC2 inhibitors for all indications as a distinct performance obligation since ORIC can benefit from the license on its own by developing and commercializing the underlying product using its own resources.

In determining the transaction price, the Company received the Shares as non-cash consideration. The Company allocated the entire transaction price to the distinct performance obligation described above, and the license and related know-how was transferred to ORIC during the third quarter of 2020. Therefore, the Company recognized the entire transaction price of $11.4 million during 2020 and classified the amount as license and collaboration revenues in its condensed consolidated statements of operations and comprehensive loss.

The Shares are carried at fair value and are recorded on the condensed consolidated balance sheet as a long-term investment. Any change in fair value is recorded within other income (expense), net on the condensed consolidated statements of operations and comprehensive loss.

Zai Agreement

Terms of Agreement

On May 28, 2021, the Company and Zai Lab Ltd. (“Zai”) entered into a Collaboration and License Agreement (the “Zai Agreement”), pursuant to which the Company and Zai agreed to collaboratively develop adagrasib in China, Hong Kong, Macau and Taiwan (collectively, the “Zai Licensed Territory”). Under the Zai Agreement, the Company granted Zai the rights to research, develop, manufacture and exclusively commercialize adagrasib in all indications in the Zai Licensed Territory, with the Company retaining exclusive rights for the development, manufacture and commercialization of adagrasib outside the Zai Licensed Territory and certain co-commercialization, manufacture, and development rights in the Zai Licensed Territory. Zai is obligated to participate in selected global, registration-enabling clinical trials and enroll patients in the Zai Licensed Territory at Zai’s expense.

As consideration for the rights granted to Zai under the Zai Agreement, Zai agreed to pay the Company a non-refundable, non-creditable up-front fee of $65.0 million. Under the Zai Agreement, the Company is entitled to potential development and regulatory-based milestone payments of up to $93.0 million, and tiered sales milestone payments of up to $180.0 million based on net sales in the Zai Licensed Territory. The Zai Agreement additionally provides that Zai is obligated to pay to the Company royalties at tiered percentage rates ranging from the high-teens to the low-twenties on annual net sales of licensed products in the Zai Licensed Territory, subject to reduction under specified circumstances. The Zai Agreement also provides that the Company will supply Zai with adagrasib for use in Zai’s development activities in the Zai Licensed Territory at Zai's expense.

The Zai Agreement will terminate on a licensed product-by-licensed product basis and on a region-by-region basis in the Zai Licensed Territory, upon the later to occur of (i) the date of expiration of the last valid claim covering such licensed product in such region, (ii) the date that is ten years after the date of the first commercial sale in such region and (iii) the expiration date of any regulatory exclusivity for such licensed product in such region, or for a co-commercialized product on the date the parties agree to terminate such co-commercialization, or in its entirety upon the expiration of all payment obligations under the Zai Agreement. Zai may terminate the Zai Agreement at any time by providing 12 months’ notice to the Company. Either party may terminate the Zai Agreement upon a material breach by the other party that remains uncured or upon certain bankruptcy events. In addition, the Company may terminate the Zai Agreement if Zai challenges the licensed patent rights.

Revenue Recognition

The Company evaluated the Zai Agreement under Topic 606. The Company determined that two performance obligations existed: (1) the license to intellectual property, bundled with the associated know-how and (2) the Company's initial obligation to supply adagrasib for clinical development in the Zai Licensed Territory. At the time it entered into the Zai Agreement, the Company determined the transaction price was equal to $66.6 million, which includes the up-front fee and other incidental amounts. In estimating the stand-alone selling price for each performance obligation, the Company developed assumptions that require judgment and included forecasted revenues, expected development timelines, discount rates, probabilities of technical and regulatory success, forecasted costs for manufacturing clinical supplies and cost savings related to Zai's participation in selected trials. The Company allocated the full transaction price to the license to the Company’s
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intellectual property, bundled with the associated know-how. The Company concluded the variable payments related to the Company’s initial obligation to supply adagrasib for clinical development in the Zai Licensed Territory relate specifically to the Company’s efforts to satisfy this performance obligation and the obligation to provide the initial clinical supply approximates the stand-alone selling price. Payments under the Zai Agreement are subject to foreign tax withholdings.

Licenses of Intellectual Property.   The license to the Company’s intellectual property, bundled with the associated know-how, represents a distinct performance obligation. The license and associated know-how was transferred to Zai during the three months ended September 30, 2021 and, therefore during 2021, the Company recognized the full revenue amount of $66.6 million as license and collaboration revenues and $3.3 million as income tax expense in its condensed consolidated statements of operations and comprehensive loss.

Manufacturing Supply Services.  The Company’s initial obligation to supply adagrasib for clinical development in the Zai Licensed Territory represents a distinct performance obligation. As such, the Company will recognize revenue when Zai obtains control of the goods. The Company recognized $0.3 million and $1.4 million of revenue related to this performance obligation for the three and nine months ended September 30, 2022, respectively. No revenue related to this performance obligation was recognized for the three and nine months ended September 30, 2021. The Company may also become responsible for manufacturing adagrasib for commercial supply and will receive reimbursement that approximates stand-alone selling prices.

Milestone Payments. The Company is entitled to development milestone payments and certain regulatory and sales milestone payments which are paid upon achievement of the development milestones, upon receipt of regulatory approvals and annual net sales thresholds within the Zai Licensed Territory under the Zai Agreement. The Company earned a $5.0 million milestone payment related to the initiation of the first pivotal clinical trial of adagrasib for the second indication in China and recognized $0.3 million as income tax expense during the three months ended September 30, 2022. The Company earned a $5.0 million milestone payment related to the initiation of the first pivotal clinical trial of adagrasib for the first indication in China and a $5.0 million milestone payment related to the initiation of the first pivotal clinical trial of adagrasib for the second indication in China and recognized $0.3 million as income tax expense during the nine months ended September 30, 2022. No milestone payments were earned during the same period in 2021. The Company evaluated whether or not the milestones are considered probable of being reached and determined that their achievement is highly dependent on factors outside of the Company’s control. These payments have been fully constrained and therefore are not included in the transaction price. At the end of each subsequent reporting period, the Company will re-evaluate the probability of achievement of each milestone and any related constraint and, if necessary, adjust its estimate of the overall transaction price. Any such adjustments will be recorded on a cumulative catch-up basis, which would affect the reported amount of license and collaboration revenues in the period of adjustment.

Royalties.  As the license is deemed to be the predominant item to which sales-based royalties relate, the Company will recognize revenue when the related sales occur. No royalty revenue was recognized during the three and nine months ended September 30, 2022 or 2021.

8.    Warrants

As of September 30, 2022, the following warrants for common stock were issued and outstanding:
Issue dateExpiration dateExercise price Number of warrants outstanding
January 11, 2017None$0.001 3,578,036 
November 20, 2017None$0.001 3,669,360 
June 11, 2018None$0.001 358,415 
7,605,811 

During the three and nine months ended September 30, 2022, no warrants were exercised. During the three months ended September 30, 2021, no warrants were exercised. During the nine months ended September 30, 2021, 623,821 warrants for shares of the Company’s common stock were exercised via cashless exercise, resulting in the issuance of 623,814 shares of common stock.

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9.    Commitments and Contingencies

On June 30, 2020, the Company entered into an amended and restated lease agreement (the “Amended and Restated Lease”) for office and laboratory space located in San Diego, California, for the Company’s corporate headquarters. The Amended and Restated Lease supersedes in its entirety the original lease agreement for the Company’s future corporate headquarters dated as of August 22, 2019. The Amended and Restated Lease has a lease term of 12 years (“Lease Term”), unless terminated earlier. The Lease Term has an initial abatement period, and the initial base rent payable will be approximately $0.6 million per month following the abatement period, which amount will increase by 3% per year over the Lease Term. The Company also received incentives from the landlord for tenant improvements. During 2020, the underlying asset was available for use by the Company to construct tenant improvements and therefore, the Lease Term was considered to have commenced.

The Amended and Restated Lease is considered to be an operating lease, and the Company used a discount rate of 12% to calculate the value of its lease payments over the Lease Term. As of September 30, 2022, the condensed consolidated balance sheet includes an operating right-of-use asset of $36.5 million and a total operating lease liability of $51.3 million, of which $7.2 million is a current lease liability and included in other accrued expenses, and $44.1 million is included in non-current lease liability. As of December 31, 2021, the consolidated balance sheet includes an operating right-of-use asset of $37.7 million and an operating lease liability of $47.2 million, of which $1.3 million is a current lease liability and included in other accrued expenses, and $45.9 million is included in non-current lease liability. For the three and nine months ended September 30, 2022, the Company recorded $2.0 million and $5.7 million in operating lease expense, respectively. For the three and nine months ended September 30, 2021, the Company recorded $1.9 million and $5.9 million in operating lease expense, respectively.

As of September 30, 2022, the approximate future minimum lease payments under the Amended and Restated Lease are as follows (in thousands):
Operating Lease
2022 - remainder
$1,298 
20237,844 
20248,080 
20258,322 
20268,572 
Thereafter59,685 
Total operating lease payments(†)
93,801 
Less: Amount representing interest(42,541)
Total lease liability$51,260 
____________________
The Company has an early termination right in 2028 in which the total contractual obligation would be reduced by $41.1 million.

On June 24, 2014, the Company entered into a lease agreement for office and laboratory space located in San Diego, California. The office space under the lease was the Company’s corporate headquarters. The initial monthly rent was $24,100 per month and was subject to a 3% annual rent increase. In addition to such base monthly rent, the Company was obligated to pay certain customary amounts for its share of operating expenses and facility amenities. The original lease provided for expiration on January 31, 2018, and the Company entered into subsequent amendments to the original lease to extend the lease term to July 2021. All other terms and covenants from the original lease agreement remained unchanged.

10.    Shareholders’ Equity

Sale of Common Stock    

In November 2021, the Company sold 3,448,275 shares of its common stock at a public offering price of $145.00 per share. After deducting underwriter discounts, commissions and estimated offering expenses, the Company received net proceeds from the transaction of $474.7 million.

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At the Market Facility

On July 2, 2020, the Company entered into a sales agreement pursuant to which the Company may, from time to time, sell shares of the Company's common stock, par value $0.001 per share, having an aggregate offering price of up to $200.0 million. On July 2, 2021, the Company entered into an amended and restated sales agreement pursuant to which the Company may, from time to time, sell shares of the Company’s common stock, par value $0.001 per share, having an aggregate offering price of up to $500.0 million. During the three and nine months ended September 30, 2022, the Company sold 1,880,097 shares of common stock under this sales agreement generating net proceeds of $155.0 million. As of September 30, 2022, the Company has sold 1,880,097 shares of common stock under this sales agreement. As of September 30, 2021, no shares of common stock were sold pursuant to this agreement.

Share-based Compensation

Total share-based compensation expense by statement of operations and comprehensive loss classification is presented below (in thousands):
Three Months Ended September 30,
Nine Months Ended September 30,
2022202120222021
Research and development expense$28,276 $15,701 $77,343 $46,704 
General and administrative expense14,716 11,232 47,238 32,920 
$42,992 $26,933 $124,581 $79,624 
    
During the three and nine months ended September 30, 2022, 96,041 and 301,877 shares of common stock were issued under the Company’s equity incentive plans, generating net proceeds of $2.1 million and $5.0 million, respectively. During the three and nine months ended September 30, 2021, 158,139 and 695,171 shares of common stock were issued under the Company’s equity incentive plans, generating net proceeds of $8.2 million and $24.7 million, respectively.

During the nine months ended September 30, 2022, 29,891 shares of common stock were issued under the Company's ESPP, generating net proceeds of $1.0 million. During the nine months ended September 30, 2021, 9,029 shares of common stock were issued under the Company's ESPP, generating net proceeds of $1.2 million.
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ITEM 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited financial statements and related notes included in this Quarterly Report on Form 1O-Q and the audited financial statements and notes thereto as of and for the year ended December 31, 2021 and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations, both of which are contained in our Annual Report on Form 10-K filed by us with the Securities and Exchange Commission (“SEC”).

This Quarterly Report on Form 10-Q may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Such forward-looking statements, which represent our intent, belief, or current expectations, involve risks and uncertainties. We use words such as “may,” “will,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “predict,” “potential,” “believe,” “should” and similar expressions to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Such statements may include, but are not limited to, statements concerning projections about our accounting and finances, plans and objectives for the future, future operating and economic performance and other statements regarding future performance.  Although we believe the expectations reflected in these forward-looking statements are reasonable, such statements are inherently subject to risk and we can give no assurances that our expectations will prove to be correct. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this Quarterly Report on Form 10-Q. As a result of many factors, including without limitation those set forth under “Risk Factors” under Item 1A of Part II below, and elsewhere in this Quarterly Report on Form 10-Q, our actual results may differ materially from those anticipated in these forward-looking statements. We undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date of this report or to reflect actual outcomes.

References in the following discussion to “we,” “our,” “us,” or “Mirati” refer to Mirati Therapeutics, Inc. and its subsidiaries. 

Overview

Mirati Therapeutics, Inc. is a clinical-stage oncology company developing novel therapeutics to address the genetic and immunological promoters of cancer.

We have multiple KRAS inhibitor programs. Adagrasib is an investigational, selective, specific, potent and orally available KRAS G12C inhibitor in clinical development as a monotherapy and in combination with other agents. MRTX1133 is an investigational, selective, specific and potent KRAS G12D inhibitor in preclinical development.

Sitravatinib is an investigational spectrum-selective kinase inhibitor designed to potently inhibit receptor tyrosine kinases (“RTK”s) and enhance immune responses through the inhibition of immunosuppressive signaling.

MRTX1719 is an investigational synthetic lethal PRMT5 inhibitor designed to specifically target the PRMT5/methylthioadenosine (MTA) complex in clinical development.

MRTX0902 is a potent, selective SOS1 inhibitor, designed to improve anti-tumor efficacy in combination with targeted mitogen-activated protein kinase (MAPK)-pathway inhibitors, and is in preclinical development. In July 2022, we filed an investigational new drug application (“IND”) with the U.S. Food and Drug Administration (“FDA”) for MRTX0902 and received Notice to Proceed authorization from FDA in August 2022.

The Company also has additional preclinical programs of potentially first-in-class and best-in-class product candidates specifically designed to address mutations and tumors where few treatment options exist. We approach all of our programs with a singular focus: to translate our deep understanding of the molecular drivers of cancer into better therapies and better outcomes for patients.

KRAS Inhibitor Programs
    
The RAS family of genes is the most commonly mutated oncogene, and mutations in this gene family occur in up to approximately 25% of all human cancers. Among the RAS family members, mutations most frequently occur in KRAS (approximately 85% of all RAS family mutations). Tumors characterized by KRAS mutations are commonly associated with
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