Bicycle Therapeutics PLC 10-Q for FY2022 Q1

Bicycle Therapeutics PLC (BCYC)

10-Q 2022-05-05 For: 2022-03-31

Added on April 06, 2026

About this 10-Q

Bicycle Therapeutics PLC filed this 10-Q on May 5, 2022, covering the quarter ended March 31, 2022 (FY2022 Q1).

Headline figures

Quarter ended March 31, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $3.86M; up 113.5% from $1.81M a year earlier
Net loss: $27.56M; compared with a net loss of $16.19M a year earlier
Diluted EPS: -$0.93; compared with -$0.73 a year earlier

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England and Wales		Not Applicable
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

B900, Babraham Research Campus Cambridge, United Kingdom		CB22 3AT
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Ordinary shares, nominal value £0.01 per share *	n/a	The Nasdaq Stock Market LLC
American Depositary Shares, each representing one ordinary share, nominal value £0.01 per share	BCYC	The Nasdaq Stock Market LLC


Large accelerated filer ⌧	Accelerated filer ◻
Non-accelerated filer ◻	Smaller reporting company ☐
	Emerging growth company ☐


		Page
PART I - FINANCIAL INFORMATION		1

Item 1.	Financial Statements (unaudited)	1
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations and Comprehensive Loss	2
	Condensed Consolidated Statements of Shareholders’ Equity	3
	Condensed Consolidated Statements of Cash Flows	4
	Notes to Condensed Consolidated Financial Statements	5

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30

Item 3.	Quantitative and Qualitative Disclosure About Market Risk	45

Item 4.	Controls and Procedures	46

PART II - OTHER INFORMATION		47

Item 1.	Legal Proceedings	47

Item 1A.	Risk Factors	48

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	105

Item 3.	Defaults Upon Senior Securities	105

Item 4.	Mine Safety Disclosures	105

Item 5.	Other Information	106

Item 6.	Exhibits	106

SIGNATURES		107


	March 31,		December 31,
	2022		2021
Assets
Current assets:
Cash and cash equivalents	$	407,371	$	438,680
Accounts receivable		—		1,000
Prepaid expenses and other current assets		9,067		7,965
Research and development incentives receivable		13,328		10,910
Total current assets		429,766		458,555
Property and equipment, net		8,849		3,123
Operating lease right-of-use assets		16,750		14,666
Other assets		4,198		3,448
Total assets	$	459,563	$	479,792
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	$	3,999	$	2,721
Accrued expenses and other current liabilities		12,265		14,244
Deferred revenue, current portion		19,150		19,273
Total current liabilities		35,414		36,238
Long-term debt, net of discount		30,008		29,873
Operating lease liabilities, net of current portion		14,093		12,081
Deferred revenue, net of current portion		46,428		52,067
Other long‑term liabilities		3,362		3,279
Total liabilities		129,305		133,538
Commitments and contingencies (Note 11)
Shareholders’ equity:
Ordinary shares, £0.01 nominal value; 57,070,181 and 55,295,420 shares authorized at March 31, 2022 and December 31, 2021, respectively; 29,644,438 and 29,579,364 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively		385		384
Additional paid-in capital		578,284		567,637
Accumulated other comprehensive loss		(2,468)		(3,388)
Accumulated deficit		(245,943)		(218,379)
Total shareholders’ equity		330,258		346,254
Total liabilities and shareholders’ equity	$	459,563	$	479,792


	Three Months Ended
	March 31,
	2022		2021
Collaboration revenues	$	3,860	$	1,808
Operating expenses:
Research and development		14,284		9,693
General and administrative		16,959		8,139
Total operating expenses		31,243		17,832
Loss from operations		(27,383)		(16,024)
Other income (expense):
Interest income		218		15
Interest expense		(818)		(522)
Total other income (expense), net		(600)		(507)
Net loss before income tax provision		(27,983)		(16,531)
Benefit from income taxes		(419)		(340)
Net loss	$	(27,564)	$	(16,191)
Net loss per share, basic and diluted	$	(0.93)	$	(0.73)
Weighted average ordinary shares outstanding, basic and diluted		29,605,143		22,100,840

Comprehensives Loss:
Net loss	$	(27,564)	$	(16,191)
Other comprehensive income (loss):
Foreign currency translation adjustment		920		(58)
Total comprehensive loss	$	(26,644)	$	(16,249)


						Accumulated
				Additional		Other				Total
	Ordinary Shares			Paid‑in		Comprehensive		Accumulated		Shareholders’
	Shares	Amount		Capital		Income (Loss)		Deficit		Equity (Deficit)
Balance at December 31, 2021	29,579,364	$	384	$	567,637	$	(3,388)	$	(218,379)	$	346,254
Issuance of ADSs upon exercise of share options	30,074		1		449		—		—		450
Issuance of ADSs upon vesting of restricted share units	35,000		—		—		—		—		—
Share-based compensation expense	—		—		10,198		—		—		10,198
Foreign currency translation adjustment	—		—		—		920		—		920
Net loss	—		—		—		—		(27,564)		(27,564)
Balance at March 31, 2022	29,644,438	$	385	$	578,284	$	(2,468)	$	(245,943)	$	330,258


Balance at December 31, 2020	21,094,557	$	266	$	249,947	$	(3,193)	$	(151,560)	$	95,460
Issuance of ADSs upon exercise of share options	63,545		1		283		—		—		284
Issuance of ADSs, net of commissions and offering expenses of $1.8 million	2,358,485		33		58,742		—		—		58,775
Share-based compensation expense	—		—		3,821		—		—		3,821
Foreign currency translation adjustment	—		—		—		(58)		—		(58)
Net loss	—		—		—		—		(16,191)		(16,191)
Balance at March 31, 2021	23,516,587	$	300	$	312,793	$	(3,251)	$	(167,751)	$	142,091


	Three Months
	Ended
	March 31,
	2022		2021
Cash flows from operating activities:
Net loss	$	(27,564)	$	(16,191)
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation expense		10,198		3,821
Depreciation and amortization		422		325
Non-cash interest		135		93
Changes in operating assets and liabilities:
Accounts receivable		991		3,520
Research and development incentives receivable		(2,774)		(2,277)
Prepaid expenses and other current assets		(1,341)		(922)
Operating lease right‑of‑use assets		650		(2,434)
Other assets		(748)		(353)
Accounts payable		(255)		(304)
Accrued expenses and other current liabilities		(2,337)		(1,858)
Operating lease liabilities		(105)		2,466
Deferred revenue		(3,850)		236
Other long-term liabilities		178		171
Net cash used in operating activities		(26,400)		(13,707)
Cash used in investing activities:
Purchases of property and equipment		(4,756)		(623)
Net cash used in investing activities		(4,756)		(623)
Cash flows from financing activities:
Proceeds from the issuance of ADSs, net of issuance costs		—		58,775
Proceeds from the exercise of share options and ordinary shares		450		284
Proceeds from issuance of debt		—		15,000
Net cash provided by financing activities		450		74,059
Effect of exchange rate changes on cash and cash equivalents		(603)		182
Net (decrease) increase in cash and cash equivalents		(31,309)		59,911
Cash and cash equivalents at beginning of period		438,680		135,990
Cash and cash equivalents at end of period	$	407,371	$	195,901
Supplemental disclosure of cash flow information
Cash paid for interest		664		429
Cash paid for income taxes		(35)		—
Cash paid for amounts included in the measurement of operating lease liabilities		375		199
Purchases of property and equipment included in accounts payable and accrued expenses		1,630		76
Non-cash impact right-of-use asset and operating lease liabilities		3,120		—



Year Ending December 31,
2022	$	—
2023		—
2024		31,500
Total	$	31,500


	Number of			Weighted
	Shares	Weighted		Average	Aggregate
	Underlying	Average		Contractual	Intrinsic
	Share Options	Exercise Price		Term	Value
				(in years)	(in thousands)
Outstanding as of December 31, 2021	4,603,486	$	14.97	8.13	$	207,009
Granted	899,747		58.96	—		—
Exercised	(30,074)		14.96	—		—
Forfeited	(93,818)		22.39	—		—
Outstanding as of March 31, 2022	5,379,341	$	22.20	8.17	$	130,435
Vested and expected to vest as of March 31, 2022	5,379,341	$	22.20	8.17	$	130,435
Options exercisable as of March 31, 2022	2,750,276	$	12.74	7.47	$	86,689


		Weighted-Average
	Number of Shares Underlying RSUs	Grant Date Fair Value
Unvested at December 31, 2021	—	$	—
Granted	222,725		60.86
Vested	(35,000)		60.86
Unvested at March 31, 2022	187,725	$	60.86


	Allocation of
Performance Obligations	Transaction Price
Combined licenses and research and discovery performance obligation	$	34,100
Four material rights associated with credits for IND Acceptance fees		3,900
	$	38,000


	Beginning Balance						Impact of		Ending Balance
	January 1,						Exchange		March 31,
	2022		Additions		Deductions		Rates		2022
Contract liabilities:
Deferred revenue
Ionis collaboration deferred revenue	$	34,115	$	—	$	(2,314)	$	(906)	$	30,895
Genentech collaboration deferred revenue		34,436		—		(1,474)		(920)		32,042
DDF collaboration deferred revenue		428		—		(72)		(10)		346
AstraZeneca collaboration deferred revenue		2,361		—		—		(66)		2,295
Total deferred revenue	$	71,340	$	—	$	(3,860)	$	(1,902)	$	65,578


Year Ending December 31,
2022	$	2,999
2023		4,245
2024		4,267
2025		4,289
2026		3,441
2027		821
Present value adjustment		(2,973)
Total lease liabilities		17,089
Less: current lease liabilities		(2,996)
Long term lease liabilities	$	14,093


	March 31,		December 31,
	2022		2021
Laboratory equipment	$	6,934	$	6,746
Leasehold improvements		6,379		809
Computer equipment and software		222		143
Furniture and office equipment		296		225
		13,831		7,923
Less: Accumulated depreciation and amortization		(4,982)		(4,800)
	$	8,849	$	3,123



	Three Months Ended March 31,
	2022		2021		Change

	(in thousands)
BT1718 (MT1)	$	187	$	172	$	15
BT5528 (EphA2)		1,402		1,338		64
BT8009 (Nectin‑4)		1,214		1,626		(412)
Bicycle tumor-targeted immune cell agonist		1,523		1,240		283
Other discovery and platform related expense		4,439		3,280		1,159
Employee and contractor related expenses		5,582		3,882		1,700
Share-based compensation		2,364		1,211		1,153
Facility expenses		790		170		620
Research and development incentives		(3,217)		(3,226)		9
Total research and development expenses	$	14,284	$	9,693	$	4,591


	Payments due by period
			Less than				More than
	Total		1 year		1 to 3 years		3 years to 5 years

	(in thousands)
Operating lease commitments (1)	$	16,190	$	3,878	$	7,030	$	5,282
Debt obligations (2)		37,581		2,692		34,889		—
Total	$	53,771	$	6,570	$	41,919	$	5,282


Exhibit Number		Description

3.1		Articles of Association (incorporated by reference to Exhibit 3.2 to Amendment No. 1 to the Registration Statement on Form S-1 (File No. 333-231076), filed with the Securities and Exchange Commission on May 13, 2019).

31.1*		Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*		Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1#		Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS		XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH		Inline XBRL Taxonomy Extension Schema Document

101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document

104		Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document (included in Exhibit 101)


	BICYCLE THERAPEUTICS PLC

Date: May 5, 2022	By:	/s/ Kevin Lee
		Kevin Lee, Ph.D., MBA
		Chief Executive Officer

		(Principal Executive Officer)

Date: May 5, 2022	By:	/s/ Lee Kalowski
		Lee Kalowski, MBA
		Chief Financial Officer and President

		(Principal Financial and Accounting Officer)


Date: May 5, 2022	By:	/s/ Kevin Lee
		Kevin Lee, Ph.D., MBA
		Chief Executive Officer


Date: May 5, 2022	By:	/s/ Lee Kalowski
		Lee Kalowski, MBA
		Chief Financial Officer and President