Protagonist Therapeutics, Inc 10-Q for FY2021 Q2

Protagonist Therapeutics, Inc (PTGX)

10-Q 2021-08-04 For: 2021-06-30

Added on April 07, 2026

About this 10-Q

Protagonist Therapeutics, Inc filed this 10-Q on August 4, 2021, covering the quarter ended June 30, 2021 (FY2021 Q2).

Headline figures

Quarter ended June 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net loss: $30.84M; compared with a net loss of $19.42M a year earlier

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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	6
	Notes to Unaudited Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	44
Item 4.	Controls and Procedures	44

PART II	OTHER INFORMATION

Item 1.	Legal Proceedings	45
Item 1A.	Risk Factors	45
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	70
Item 3.	Defaults Upon Senior Securities	70
Item 4.	Mine Safety Disclosure	71
Item 5.	Other Information	71
Item 6.	Exhibits	71
	SIGNATURES	73


	June 30,		December 31,
	2021		2020
Assets
Current assets:
Cash and cash equivalents	$	192,412	$	117,358
Marketable securities		161,868		188,451
Restricted cash - current		—		10
Receivable from collaboration partner and contract asset - related party		7,077		2,426
Research and development tax incentive receivable		2,778		1,084
Prepaid expenses and other current assets		7,683		6,277
Total current assets		371,818		315,606
Marketable securities - noncurrent		26,122		2,000
Property and equipment, net		1,718		1,462
Restricted cash - noncurrent		225		450
Operating lease right-of-use asset		4,349		4,950
Total assets	$	404,232	$	324,468
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	7,905	$	3,075
Payable to collaboration partner - related party		11,396		2,732
Accrued expenses and other payables		20,096		18,498
Deferred revenue - related party		2,009		14,477
Operating lease liability - current		1,567		1,459
Total current liabilities		42,973		40,241
Operating lease liability - noncurrent		3,691		4,500
Other liabilities		121		121
Total liabilities		46,785		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; 47,525,560 and 43,745,465 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively		—		—
Additional paid-in capital		696,157		563,389
Accumulated other comprehensive (loss) gain		(59)		28
Accumulated deficit		(338,651)		(283,811)
Total stockholders’ equity		357,447		279,606
Total liabilities and stockholders’ equity	$	404,232	$	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				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
License and collaboration revenue - related party	$	2,265	$	6,217	$	8,454	$	9,864
Operating expenses:
Research and development		26,432		20,257		50,677		39,025
General and administrative		6,715		4,177		12,680		8,753
Total operating expenses		33,147		24,434		63,357		47,778
Loss from operations		(30,882)		(18,217)		(54,903)		(37,914)
Interest income		97		207		199		733
Interest expense		—		(209)		—		(452)
Loss on early repayment of debt		—		(585)		—		(585)
Other (expense) income, net		(57)		512		(136)		22
Loss before income tax expense		(30,842)		(18,292)		(54,840)		(38,196)
Income tax expense		—		(1,129)		—		(1,305)
Net loss	$	(30,842)	$	(19,421)	$	(54,840)	$	(39,501)
Net loss per share, basic and diluted	$	(0.69)	$	(0.59)	$	(1.23)	$	(1.31)
Weighted-average shares used to compute net loss per share, basic and diluted		44,864,637		32,799,691		44,546,172		30,251,805


						Accumulated
				Additional		Other				Total
	Common			Paid-In		Comprehensive		Accumulated		Stockholders'
	Stock			Capital		(Loss) Gain		Deficit		Equity
Three months ended June 30, 2021	Shares	Amount
Balance at March 31, 2021	43,939,246	$	—	$	567,176	$	(33)	$	(307,809)	$	259,334
Issuance of common stock pursuant to public offering, net of issuance costs	3,503,311		—		123,798		—		—		123,798
Issuance of common stock under equity incentive and employee stock purchase plans	83,003		—		1,247		—		—		1,247
Stock-based compensation expense	—		—		3,936		—		—		3,936
Other comprehensive loss	—		—		—		(26)		—		(26)
Net loss	—		—		—		—		(30,842)		(30,842)
Balance at June 30, 2021	47,525,560	$	—	$	696,157	$	(59)	$	(338,651)	$	357,447


	Balance at						Balance at
	Beginning of						End of
Six Months Ended June 30, 2021	Period		Additions		Deductions		Period
Contract assets:
Receivable from collaboration partner - related party	$	2,426	$	4,651	$	—	$	7,077
Contract liabilities:
Deferred revenue - related party	$	14,477	$	3,924	$	(16,392)	$	2,009
Payable to collaboration partner - related party	$	2,732	$	8,664	$	—	$	11,396

	Balance at						Balance at
	Beginning of						End of
Six Months Ended June 30, 2020	Period		Additions		Deductions		Period
Contract assets:
Receivable from collaboration partner - related party	$	5,955	$	4,202	$	(7,160)	$	2,997
Contract asset - related party	$	800	$	342	$	(1,142)	$	—
Contract liabilities:
Deferred revenue - related party	$	41,530	$	2,977	$	(10,493)	$	34,014
Payable to collaboration partner - related party	$	1,262	$	1,040	$	(1,299)	$	1,003


	June 30, 2021
	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	123,006	$	—	$	—	$	123,006
Commercial paper		—		141,440		—		141,440
Corporate debt securities		—		70,410		—		70,410
U.S. Treasury and agency securities		—		32,090		—		32,090
Supranational and sovereign government securities		—		6,044		—		6,044
Total financial assets	$	123,006	$	249,984	$	—	$	372,990


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


	June 30, 2021
	Amortized		Gross Unrealized
	Cost		Gains		Losses		Fair Value
Money market funds	$	123,006	$	—	$	—	$	123,006
Commercial paper		141,443		1		(4)		141,440
Corporate debt securities		70,418		5		(13)		70,410
U.S. Treasury and agency securities		32,096		2		(8)		32,090
Supranational and sovereign government securities		6,045		—		(1)		6,044
Total cash equivalents and marketable securities	$	373,008	$	8	$	(26)	$	372,990
Classified as:
Cash equivalents							$	185,000
Marketable securities - current								161,868
Marketable securities - noncurrent								26,122
Total cash equivalents and marketable securities							$	372,990



		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	1,597,040		26.97
Options exercised	(177,152)		11.54
Options forfeited	(106,672)		16.66
Balances at June 30, 2021	5,961,336	$	15.84	7.77	$	173.1
Options exercisable – June 30, 2021	2,980,187	$	12.39	6.46	$	96.8
Options vested and expected to vest – June 30, 2021	5,961,336	$	15.84	7.77	$	173.1


		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	(30,126)		18.28
Unvested at June 30, 2021	423,504	$	19.31


	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2021	2020	2021	2020
Expected term (in years)	5.27 - 6.08	5.50 - 6.08	5.27 - 6.08	5.27- 6.08
Expected volatility	88.0% - 88.8%	74.3% - 74.5%	88.0% - 90.2%	72.1% - 74.5%
Risk-free interest rate	0.85% - 1.11%	0.39% - 0.42%	0.11% - 1.11%	0.39% - 1.44%
Dividend yield	—	—	—	—


	Three Months Ended
	June 30,				Dollar		%
	2021		2020		Change		Change

	(Dollars in thousands)
License and collaboration revenue - related party	$	2,265	$	6,217	$	(3,952)	(64)
Operating expenses:
Research and development ⁽¹⁾		26,432		20,257		6,175	30
General and administrative ⁽²⁾		6,715		4,177		2,538	61
Total operating expenses		33,147		24,434		8,713	36
Loss from operations		(30,882)		(18,217)		(12,665)	70
Interest income		97		207		(110)	(53)
Interest expense		—		(209)		209	(100)
Loss on early repayment of debt		—		(585)		585	(100)
Other (expense) income, net		(57)		512		(569)	(111)
Loss before income tax expense		(30,842)		(18,292)		(12,550)	69
Income tax expense		—		(1,129)		1,129	(100)
Net loss	$	(30,842)	$	(19,421)	$	(11,421)	59


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
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	PROTAGONIST THERAPEUTICS, INC.


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

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