Protagonist Therapeutics, Inc 10-Q for FY2021 Q1

Protagonist Therapeutics, Inc (PTGX)

10-Q 2021-05-04 For: 2021-03-31

Added on April 07, 2026

About this 10-Q

Protagonist Therapeutics, Inc filed this 10-Q on May 4, 2021, covering the quarter ended March 31, 2021 (FY2021 Q1).

Headline figures

Quarter ended March 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net loss: $24M; compared with a net loss of $20.08M a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →

Delaware		98-0505495
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

7707 Gateway Boulevard, Suite 140 Newark, California 94560-1160		(510) 474-0170
(Address, including zip code, of registrant’s principal executive offices)		(Telephone number, including area code, of registrant’s principal executive offices)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.00001	PTGX	The Nasdaq Stock Market, LLC



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


		Page

PART I	FINANCIAL INFORMATION

Item 1.	Condensed Consolidated Financial Statements (unaudited)
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations	2
	Condensed Consolidated Statements of Comprehensive Loss	3
	Condensed Consolidated Statements of Stockholders’ Equity	4
	Condensed Consolidated Statements of Cash Flows	5
	Notes to Unaudited Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	38
Item 4.	Controls and Procedures	38

PART II	OTHER INFORMATION

Item 1.	Legal Proceedings	39
Item 1A.	Risk Factors	39
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	64
Item 3.	Defaults Upon Senior Securities	64
Item 4.	Mine Safety Disclosure	65
Item 5.	Other Information	65
Item 6.	Exhibits	65
	SIGNATURES	67


	March 31,		December 31,
	2021		2020
Assets
Current assets:
Cash and cash equivalents	$	83,000	$	117,358
Marketable securities		190,476		188,451
Restricted cash - current		—		10
Receivable from collaboration partner and contract asset - related party		3,996		2,426
Research and development tax incentive receivable		1,823		1,084
Prepaid expenses and other current assets		6,213		6,277
Total current assets		285,508		315,606
Marketable securities - noncurrent		6,254		2,000
Property and equipment, net		1,432		1,462
Restricted cash - noncurrent		225		450
Operating lease right-of-use asset		4,653		4,950
Total assets	$	298,072	$	324,468
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	2,732	$	3,075
Payable to collaboration partner - related party		6,823		2,732
Accrued expenses and other payables		17,680		18,498
Deferred revenue - related party - current		5,768		14,477
Operating lease liability - current		1,512		1,459
Total current liabilities		34,515		40,241
Operating lease liability - noncurrent		4,102		4,500
Other liabilities		121		121
Total liabilities		38,738		44,862
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.00001 par value, 10,000,000 shares authorized; no shares issued and outstanding		—		—
Common stock, $0.00001 par value, 90,000,000 shares authorized; 43,939,246 and 43,745,465 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively		—		—
Additional paid-in capital		567,176		563,389
Accumulated other comprehensive (loss) gain		(33)		28
Accumulated deficit		(307,809)		(283,811)
Total stockholders’ equity		259,334		279,606
Total liabilities and stockholders’ equity	$	298,072	$	324,468


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


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



	Three Months Ended March 31,
	2021		2020
License and collaboration revenue - related party	$	6,189	$	3,647
Operating expenses:
Research and development		24,245		18,768
General and administrative		5,965		4,576
Total operating expenses		30,210		23,344
Loss from operations		(24,021)		(19,697)
Interest income		102		526
Interest expense		—		(243)
Other expense, net		(79)		(490)
Loss before income tax expense		(23,998)		(19,904)
Income tax expense		—		(176)
Net loss	$	(23,998)	$	(20,080)
Net loss per share, basic and diluted	$	(0.54)	$	(0.72)
Weighted-average shares used to compute net loss per share, basic and diluted		44,224,169		27,703,918


						Accumulated
				Additional		Other				Total
	Common			Paid-In		Comprehensive		Accumulated		Stockholders'
	Stock			Capital		Gain (Loss)		Deficit		Equity
Three months ended March 31, 2021	Shares	Amount
Balance at December 31, 2020	43,745,465	$	—	$	563,389	$	28	$	(283,811)	$	279,606
Issuance of common stock under equity incentive and employee stock purchase plans	200,841		—		1,316		—		—		1,316
Shares withheld for net settlement of tax withholding upon vesting of restricted stock units	(7,060)		—		(189)		—		—		(189)
Stock-based compensation expense	—		—		2,660		—		—		2,660
Other comprehensive loss	—		—		—		(61)		—		(61)
Net loss	—		—		—		—		(23,998)		(23,998)
Balance at March 31, 2021	43,939,246	$	—	$	567,176	$	(33)	$	(307,809)	$	259,334


	Balance at						Balance at
	Beginning of						End of
Three Months Ended March 31, 2021	Period		Additions		Deductions		Period
Contract assets:
Receivable from collaboration partner - related party	$	2,426	$	1,570	$	—	$	3,996
Contract liabilities:
Deferred revenue - related party	$	14,477	$	1,017	$	(9,726)	$	5,768
Payable to collaboration partner - related party	$	2,732	$	4,091	$	—	$	6,823

	Balance at						Balance at
	Beginning of						End of
Three Months Ended March 31, 2020	Period		Additions		Deductions		Period
Contract assets:
Receivable from collaboration partner - related party	$	5,955	$	1,509	$	(5,012)	$	2,452
Contract asset - related party	$	800	$	342	$	—	$	1,142
Contract liabilities:
Deferred revenue - related party	$	41,530	$	1,850	$	(4,335)	$	39,045
Payable to collaboration partner - related party	$	1,262	$	676	$	(822)	$	1,116


	March 31, 2021
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	34,945	$	—	$	—	$	34,945
Commercial paper		—		98,652		—		98,652
U.S. Treasury and agency securities				69,234		—		69,234
Corporate debt securities				66,991		—		66,991
Supranational and sovereign government securities		—		6,059		—		6,059
Total financial assets	$	34,945	$	240,936	$	—	$	275,881


	December 31, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	27,481	$	—	$	—	$	27,481
Commercial paper		—		65,863		—		65,863
U.S. Treasury and agency securities		—		183,210		—		183,210
Corporate debt securities		—		27,590		—		27,590
Total financial assets	$	27,481	$	276,663	$	—	$	304,144


	March 31, 2021
	Amortized		Gross Unrealized
	Cost		Gains		Losses		Fair Value
Money market funds	$	34,945	$	—	$	—	$	34,945
Commercial paper		98,656		—		(4)		98,652
U.S. Treasury and agency securities		69,228		6		—		69,234
Corporate debt securities		67,017		3		(29)		66,991
Supranational and sovereign government securities		6,061		—		(2)		6,059
Total cash equivalents and marketable securities	$	275,907	$	9	$	(35)	$	275,881
Classified as:
Cash equivalents							$	79,151
Marketable securities - current								190,476
Marketable securities - noncurrent								6,254
Total cash equivalents and marketable securities							$	275,881



		Weighted-		Weighted-
		Average		Average
		Exercise		Remaining	Aggregate
	Options	Price Per		Contractual	Intrinsic
	Outstanding	Share		Life (years)	Value (1)
					(in millions)
Balances at December 31, 2020	4,648,120	$	11.87	7.61	$	40.0
Options granted	1,158,840		23.41
Options exercised	(94,149)		8.46
Options forfeited	(14,647)		14.08
Balances at March 31, 2021	5,698,164	$	14.27	7.90	$	66.3
Options exercisable – March 31, 2021	2,730,013	$	12.22	6.57	$	37.3
Options vested and expected to vest – March 31, 2021	5,698,164	$	14.27	7.90	$	66.3


		Weighted
		Average
	Number of	Grant Date
	Shares	Fair Value
Unvested at December 31, 2020	244,545	$	9.31
Granted	287,250		23.57
Vested	(78,165)		10.13
Forfeited	(5,250)		16.81
Unvested at March 31, 2021	448,380	$	19.28


	Three Months Ended March 31,
	2021	2020
Expected term (in years)	5.27- 6.08	5.27 - 6.08
Expected volatility	89.8% - 90.2%	72.1% - 73.8%
Risk-free interest rate	0.11% - 0.97%	0.59% - 1.44%
Dividend yield	—	—

Th
	Three Months Ended March 31,				Dollar		%
	2021		2020		Change		Change

	(Dollars in thousands)
Clinical and development expense — rusfertide (PTG-300)	$	10,079	$	6,806	$	3,273	48
Clinical and development expense — PN-943		7,724		7,018		706	10
Clinical and development expense — PN-235		1,799		—		1,799	100
Clinical and development expense — PTG-200		1		885		(884)	(100)
Clinical and development expense — PTG-100		109		181		(72)	(40)
Preclinical and drug discovery research expense		5,361		4,283		1,078	25
Grants and tax incentive expense reimbursement, net		(828)		(405)		(423)	104
Total research and development expenses	$	24,245	$	18,768	$	5,477	29


Exhibit		Incorporation By Reference
Number	Exhibit Description	Form	SEC File No.	Exhibit	Filing Date
3.1	Amended and Restated Certificate of Incorporation	8-K	001-37852	3.1	8/16/2016
3.2	Amended and Restated Bylaws	S-1/A	333-212476	3.2	8/1/2016
31.1+	Certification of Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2+	Certification of Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1+**	Certification of Chief Executive Officer and Chief Financial Officer, as required by Rule 13a-14(b) or Rule 15d-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. §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+	XBRL Taxonomy Extension Schema Document
101.CAL+	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF+	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB+	XBRL Taxonomy Extension Labels Linkbase Document
101.PRE+	XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File - The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

	PROTAGONIST THERAPEUTICS, INC.


Date: May 4, 2021	By:
`		Dinesh V. Patel, Ph.D.
		President, Chief Executive Officer and Director
		(Principal Executive Officer)

Date: May 4, 2021	By:
		Don Kalkofen
		Chief Financial Officer
		(Principal Financial and Accounting Officer)