01—Abstract
Summary
Summary of the 10-Q filed August 14, 2023. Cited figures are marked; the original filing is the authoritative source.
Roivant Sciences Ltd. reported its quarter ended June 30, 2023 with product revenue, net of $16.7 milliona from VTAMA (tapinarof), up from $0.1 million a year earlier, and total revenue, net of $21.6 million.
Net loss attributable to Roivant Sciences Ltd. was $291.8 millionb, compared with $331.8 million in the prior-year quarter. Research and development expenses were $125.1 million and selling, general and administrative expenses were $156.2 million, the latter reflecting the commercial launch of VTAMA at Dermavant. Cash, cash equivalents and restricted cash totaled approximately $1.4 billion at June 30, 2023, and the company stated this supports cash runway into the second half of calendar year 2025.
The balance sheet shows total assets of $2.14 billionc and total liabilities of $802.5 million, with an accumulated deficit of $4.06 billion. Management states that the company expects to incur additional losses and needs to raise additional capital, and that existing cash will fund committed operating expenses for at least the next 12 months from the issuance of the financial statements. Debt includes NovaQuest funding tied to VTAMA, a $40.0 million XYQ Luxco credit facility, and a revenue interest purchase and sale agreement carried at a balance of $184.1 million.
Subsequent events include the planned redemption of all outstanding warrants at $0.10d per warrant on a Notice of Redemption dated August 2, 2023, with a redemption date of September 1, 2023, and the sale of Roivant's shares in Proteovant Sciences to SK Biopharmaceuticals for $47.5 million. The filing also notes that Acuitas voluntarily dismissed its action in the Southern District of New York and re-filed in New Jersey, and that Genevant and Arbutus intend to continue defending the case.
02—Key points
Key Highlights
- VTAMA product revenue, net rose to $16.7 million for the quarter ended June 30, 2023, from $0.1 million a year earlier, following the May 2022 FDA approval for plaque psoriasis.
- Net loss attributable to Roivant Sciences Ltd. was $291.8 million, compared with $331.8 million for the prior-year quarter.
- Cash, cash equivalents and restricted cash were approximately $1.4 billion at June 30, 2023, which the company expects to support cash runway into the second half of calendar year 2025.
- Accumulated deficit reached approximately $4.1 billion at June 30, 2023, and the company states it expects to incur additional losses and will need to raise additional capital.
- Interest income rose to $16.7 million from $2.0 million, which the company attributes to higher interest rates on invested cash.
- The company announced a warrant redemption at $0.10 per warrant, with the redemption date set for September 1, 2023, and sold its Proteovant Sciences shares to SK Biopharmaceuticals for $47.5 million in August 2023.
- At June 30, 2023 the company had $400.0 million of remaining capacity under its at-the-market equity offering program with Cowen.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed August 14, 2023Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $21.62M$4.32M | +400.7% |
| R&D Expenses | $125.13M$135.83M | −7.9% |
| SG&A Expenses | $156.19M$149.07M | +4.8% |
| Operating Expenses | $298.04M$286.63M | +4.0% |
| Operating Income | -$276.41M-$282.31M | +2.1% |
| Interest Expense | $8.91M$2.61M | +241.2% |
| Net Income | -$291.82M-$331.81M | +12.1% |
| EPS (Basic) | $-0.38$-0.48 | +20.8% |
| EPS (Diluted) | $-0.38$-0.48 | +20.8% |
| Shares Outstanding (Basic) | 759.27M695.88M | +9.1% |
| Shares Outstanding (Diluted) | 759.27M695.88M | +9.1% |
05—Questions
Frequently Asked Questions
How much revenue did Roivant generate from VTAMA this quarter?
The filing reports product revenue, net of $16.7 million for the three months ended June 30, 2023, compared with $0.1 million for the same period in 2022, reflecting the VTAMA launch following FDA approval in May 2022. Total revenue, net was $21.6 million, including $5.0 million of license, milestone and other revenue.
Is Roivant's cash position sufficient to fund operations?
The company had cash, cash equivalents and restricted cash of approximately $1.4 billion at June 30, 2023, which it expects to support into the second half of calendar year 2025. The filing also states that management expects additional losses and needs to raise additional capital to fully implement its business plan, and that financing may be dilutive to shareholders.
What drove the change in net loss compared with the prior year?
Net loss attributable to Roivant Sciences Ltd. narrowed to $291.8 million from $331.8 million. Research and development expenses decreased by $10.7 million, primarily from lower program-specific costs and share-based compensation, while selling, general and administrative expenses rose by $7.1 million, mainly due to Dermavant's commercial launch costs for VTAMA and partially offset by lower share-based compensation. Interest income also increased by $14.7 million.
What are the warrant redemption terms?
On August 2, 2023, the company issued a notice to redeem all outstanding warrants at $0.10 per warrant. Warrants remain exercisable until 5:00 p.m. New York City Time on September 1, 2023, and holders may elect a cashless make-whole exercise, which is capped at 0.361 common shares per warrant.
06—Continue