☒ | 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 |
Bermuda | 98-1173944 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
Suite 1, 3rd Floor 11-12 St. James’s SquareLondon SW1Y 4LB United Kingdom | Not Applicable | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Shares, $0.0000000341740141 per share Redeemable Warrants, each whole warrant exercisable for one Common Share at an exercise price of $11.50 per share | ROIV ROIVW | The Nasdaq Global Market The Nasdaq Global Market |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | Smaller reporting company | ☒ | ||||
Emerging growth company | ☒ |
Page | |||||||
Item 1. | |||||||
43 | |||||||
Item 4. | 44 | ||||||
Item 1. | 45 | ||||||
45 | |||||||
Item 1. | Financial Statements (Unaudited). |
September 30, 2021 | March 31, 2021 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 2,497,330 | $ | 2,055,044 | ||||
Restricted cash | 2,861 | 77,701 | ||||||
Other current assets | 55,563 | 54,250 | ||||||
Total current assets | 2,555,754 | 2,186,995 | ||||||
Property and equipment, net | 16,904 | 14,749 | ||||||
Operating lease right-of-use | 63,198 | 62,279 | ||||||
Restricted cash, net of current portion | 8,933 | 8,931 | ||||||
Investments measured at fair value | 436,780 | 188,978 | ||||||
Long-term investment | 0 | 100,563 | ||||||
Other assets | 21,337 | 27,197 | ||||||
Total assets | $ | 3,102,906 | $ | 2,589,692 | ||||
Liabilities, Redeemable Noncontrolling Interest and Shareholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 77,158 | $ | 20,550 | ||||
Accrued expenses | 104,111 | 76,936 | ||||||
Operating lease liabilities | 11,518 | 12,313 | ||||||
Deferred consideration liability | 100,000 | 100,000 | ||||||
Other current liabilities | 10,657 | 9,162 | ||||||
Total current liabilities | 303,444 | 218,961 | ||||||
Liability instruments measured at fair value | 75,284 | 67,893 | ||||||
Operating lease liabilities, noncurrent | 65,221 | 62,384 | ||||||
Long-term debt (includes $168,200 and $150,100 accounted for under the fair value option at September 30, 2021 and March 31, 2021, respectively) | 199,869 | 170,280 | ||||||
Other liabilities | 8,189 | 8,169 | ||||||
Total liabilities | 652,007 | 527,687 | ||||||
Commitments and contingencies (Note 12) | 0 | 0 | ||||||
Redeemable noncontrolling interest | 22,491 | 22,491 | ||||||
Shareholders’ equity: (1) | ||||||||
Common shares, par value $ 0.0000000341740141 per share, 7,000,000,000 shares authorized and 684,789,169 and 651,576,293 shares issued and outstanding at September 30, 2021 and March 31, 2021, respectively | 0 | 0 | ||||||
Additional paid-in capital | 4,245,860 | 3,814,805 | ||||||
Subscription receivable | 0 | (100,000 | ) | |||||
Accumulated deficit | (2,209,126 | ) | (1,918,462 | ) | ||||
Accumulated other comprehensive income | 1,281 | 1,445 | ||||||
Shareholders’ equity attributable to Roivant Sciences Ltd. | 2,038,015 | 1,797,788 | ||||||
Noncontrolling interests | 390,393 | 241,726 | ||||||
Total shareholders’ equity | 2,428,408 | 2,039,514 | ||||||
Total liabilities, redeemable noncontrolling interest and shareholders’ equity | $ | 3,102,906 | $ | 2,589,692 | ||||
June 30, 2022 | March 31, 2022 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,942,215 | $ | 2,060,400 | ||||
Restricted cash | 3,953 | 3,903 | ||||||
Other current assets | 93,274 | 82,220 | ||||||
Total current assets | 2,039,442 | 2,146,523 | ||||||
Property and equipment, net | 31,689 | 25,905 | ||||||
Operating lease right-of-use | 59,429 | 61,044 | ||||||
Restricted cash, net of current portion | 10,301 | 9,731 | ||||||
Investments measured at fair value | 301,287 | 325,834 | ||||||
Intangible assets, net | 145,430 | — | ||||||
Other assets | 12,820 | 16,092 | ||||||
Total assets | $ | 2,600,398 | $ | 2,585,129 | ||||
Liabilities, Redeemable Noncontrolling Interest and Shareholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 161,304 | $ | 34,583 | ||||
Accrued expenses | 109,354 | 127,531 | ||||||
Operating lease liabilities | 11,858 | 11,398 | ||||||
Current portion of long-term debt (includes $27,300 accounted for under the fair value option at June 30, 2022) | 33,304 | — | ||||||
Deferred revenue | 9,011 | 10,147 | ||||||
Other current liabilities | 4,084 | 708 | ||||||
Total current liabilities | 328,915 | 184,367 | ||||||
Liability instruments measured at fair value | 28,181 | 44,912 | ||||||
Operating lease liabilities, noncurrent | 60,395 | 62,468 | ||||||
Long-term debt, net of current portion (includes $200,700 and $177,400accounted for under the fair value option at June 30, 2022 and March 31, 2022, respectively) | 383,720 | 210,025 | ||||||
Deferred revenue, noncurrent | 13,146 | 13,740 | ||||||
Other liabilities | 8,159 | 8,183 | ||||||
Total liabilities | 822,516 | 523,695 | ||||||
Commitments and contingencies (Note 10) | 0 | 0 | ||||||
Redeemable noncontrolling interest | 22,491 | 22,491 | ||||||
Shareholders’ equity: | ||||||||
Common shares, par value $0.0000000341740141 per share, 7,000,000,000 shares authorized and 701,171,465 and 694,975,965 shares issued and outstanding at June 30, 2022 and March 31, 2022, respectively | — | — | ||||||
Additional paid-in capital | 4,474,624 | 4,421,614 | ||||||
Accumulated deficit | (3,095,533 | ) | (2,763,724 | ) | ||||
Accumulated other comprehensive income (loss) | 5,020 | (946 | ) | |||||
Shareholders’ equity attributable to Roivant Sciences Ltd. | 1,384,111 | 1,656,944 | ||||||
Noncontrolling interests | 371,280 | 381,999 | ||||||
Total shareholders’ equity | 1,755,391 | 2,038,943 | ||||||
Total liabilities, redeemable noncontrolling interest and shareholders’ equity | $ | 2,600,398 | $ | 2,585,129 | ||||
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenue, net | $ | 13,987 | $ | 1,323 | $ | 21,722 | $ | 2,899 | ||||||||
Operating expenses: | ||||||||||||||||
Cost of revenues | 6,381 | 715 | 7,123 | 895 | ||||||||||||
Research and development | 254,259 | 97,409 | 332,885 | 156,143 | ||||||||||||
General and administrative | 437,776 | 59,740 | 520,530 | 116,855 | ||||||||||||
Total operating expenses | 698,416 | 157,864 | 860,538 | 273,893 | ||||||||||||
Loss from operations | (684,429 | ) | (156,541 | ) | (838,816 | ) | (270,994 | ) | ||||||||
Change in fair value of investments | (32,273 | ) | (84,297 | ) | (23,654 | ) | (125,445 | ) | ||||||||
Gain on sale of investment | (443,754 | ) | 0 | (443,754 | ) | 0 | ||||||||||
Change in fair value of debt and liability instruments | 13,145 | 10,148 | 17,730 | 27,273 | ||||||||||||
Gain on termination of Sumitomo Options | 0 | 0 | (66,472 | ) | 0 | |||||||||||
Gain on deconsolidation of subsidiary and consolidation of unconsolidated entity | 0 | (28,848 | ) | 0 | (115,364 | ) | ||||||||||
Other expense (income), net | 3,692 | (757 | ) | 3,558 | 2,085 | |||||||||||
Loss before income taxes | (225,239 | ) | (52,787 | ) | (326,224 | ) | (59,543 | ) | ||||||||
Income tax expense | 401 | 711 | 494 | 1,932 | ||||||||||||
Net loss | (225,640 | ) | (53,498 | ) | (326,718 | ) | (61,475 | ) | ||||||||
Net loss attributable to noncontrolling interests | (17,159 | ) | (18,100 | ) | (36,054 | ) | (22,834 | ) | ||||||||
Net loss attributable to Roivant Sciences Ltd. | $ | (208,481 | ) | $ | (35,398 | ) | $ | (290,664 | ) | $ | (38,641 | ) | ||||
Net loss per common share—basic and diluted (1) | $ | (0.32 | ) | $ | (0.06 | ) | $ | (0.45 | ) | $ | (0.06 | ) | ||||
Weighted average shares outstanding—basic and diluted (1) | 650,225,764 | 628,779,048 | 650,041,993 | 628,779,048 | ||||||||||||
Three Months Ended June 30, | ||||||||
2022 | 2021 | |||||||
Revenue, net | $ | 4,319 | $ | 7,735 | ||||
Operating expenses: | ||||||||
Cost of revenues | 1,726 | 742 | ||||||
Research (includes $12,243 of share-based compensation expense for the three months ended June 30, 2022 and 2021, respectively) | 135,830 | 78,515 | ||||||
Acquired in-process research and development | — | 111 | ||||||
Selling, general and administrative (includes $60,551 and $17,654 of share-based compensation expense for the three months ended June 30, 2022 and 2021, respectively) | 149,072 | 82,754 | ||||||
Total operating expenses | 286,628 | 162,122 | ||||||
Loss from operations | (282,309 | ) | (154,387 | ) | ||||
Change in fair value of investments | 24,547 | 8,619 | ||||||
Change in fair value of debt and liability instruments | 41,213 | 4,585 | ||||||
Gain on termination of Sumitomo Options | — | (66,472 | ) | |||||
Other expense (income), net | 1,716 | (134 | ) | |||||
Loss before income taxes | (349,785 | ) | (100,985 | ) | ||||
Income tax expense | 3,999 | 93 | ||||||
Net loss | (353,784 | ) | (101,078 | ) | ||||
Net loss attributable to noncontrolling interests | (21,975 | ) | (18,895 | ) | ||||
Net loss attributable to Roivant Sciences Ltd. | $ | (331,809 | ) | $ | (82,183 | ) | ||
Net loss per common share—basic and diluted (1) | $ | (0.48 | ) | $ | (0.13 | ) | ||
Weighted average shares outstanding—basic and diluted (1) | 695,878,859 | 649,856,203 | ||||||
(1) | Retroactively restated for the stock subdivision as described in Note 7. |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net loss | $ | (225,640 | ) | $ | (53,498 | ) | $ | (326,718 | ) | $ | (61,475 | ) | ||||
Other comprehensive income (loss): | ||||||||||||||||
Foreign currency translation adjustment | 2,545 | (1,034 | ) | 106 | (1,854 | ) | ||||||||||
Total other comprehensive income (loss) | 2,545 | (1,034 | ) | 106 | (1,854 | ) | ||||||||||
Comprehensive loss | (223,095 | ) | (54,532 | ) | (326,612 | ) | (63,329 | ) | ||||||||
Comprehensive loss attributable to noncontrolling interests | (17,102 | ) | (18,066 | ) | (35,784 | ) | (22,766 | ) | ||||||||
Comprehensive loss attributable to Roivant Sciences Ltd. | $ | (205,993 | ) | $ | (36,466 | ) | $ | (290,828 | ) | $ | (40,563 | ) | ||||
Three Months Ended June 30, | ||||||||
2022 | 2021 | |||||||
Net loss | $ | (353,784 | ) | $ | (101,078 | ) | ||
Other comprehensive income (loss): | ||||||||
Foreign currency translation adjustment | 5,767 | (2,439 | ) | |||||
Total other comprehensive income (loss) | 5,767 | (2,439 | ) | |||||
Comprehensive loss | (348,017 | ) | (103,517 | ) | ||||
Comprehensive loss attributable to noncontrolling interests | (22,174 | ) | (18,682 | ) | ||||
Comprehensive loss attributable to Roivant Sciences Ltd. | $ | (325,843 | ) | $ | (84,835 | ) | ||
Shareholders’ Equity (1) | ||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interest | Common Stock | Additional Paid-in Capital | Subscription Receivable | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Noncontrolling Interests | Total Shareholders’ Equity | |||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | 22,491 | 651,576,293 | $ | 0 | $ | 3,814,805 | $ | (100,000 | ) | $ | 1,445 | $ | (1,918,462 | ) | $ | 241,726 | $ | 2,039,514 | |||||||||||||||||
Issuance of subsidiary warrants | — | — | — | 2,051 | — | — | — | 24 | 2,075 | |||||||||||||||||||||||||||
Cash contributions to majority-owned subsidiaries | — | — | — | (2,973 | ) | — | — | — | 2,973 | 0 | ||||||||||||||||||||||||||
Share-based compensation | — | — | — | 11,091 | — | — | — | 8,178 | 19,269 | |||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | (2,652 | ) | — | 213 | (2,439 | ) | |||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (82,183 | ) | (18,895 | ) | (101,078 | ) | ||||||||||||||||||||||||
Balance at June 30, 2021 | $ | 22,491 | 651,576,293 | $ | 0 | $ | 3,824,974 | $ | (100,000 | ) | $ | (1,207 | ) | $ | (2,000,645 | ) | $ | 234,219 | $ | 1,957,341 | ||||||||||||||||
Issuance of the Company’s common shares upon closing of Business Combination and PIPE Financing, net of issuance costs | — | 32,372,478 | — | 129,097 | — | — | — | — | 129,097 | |||||||||||||||||||||||||||
Issuance of the Company’s common shares related to settlement of transaction consideration | — | 840,398 | — | — | — | — | — | — | 0 | |||||||||||||||||||||||||||
Issuance of subsidiary preferred shares | — | — | — | — | — | — | — | 70,000 | 70,000 | |||||||||||||||||||||||||||
Issuance of subsidiary common and preferred shares to the Company | — | — | — | (52,189 | ) | — | — | — | 52,189 | 0 | ||||||||||||||||||||||||||
Payment of subscription receivable | — | — | — | (40,000 | ) | 100,000 | — | — | 40,000 | 100,000 | ||||||||||||||||||||||||||
Cash contributions to majority-owned subsidiaries | — | — | — | (2,590 | ) | — | — | — | 2,590 | 0 | ||||||||||||||||||||||||||
Share-based compensation | — | — | — | 386,568 | — | — | — | 10,744 | 397,312 | |||||||||||||||||||||||||||
Repurchase of equity awards | — | — | — | — | — | — | — | (2,247 | ) | (2,247 | ) | |||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | 2,488 | — | 57 | 2,545 | |||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (208,481 | ) | (17,159 | ) | (225,640 | ) | ||||||||||||||||||||||||
Balance at September 30, 2021 | $ | 22,491 | 684,789,169 | $ | 0 | $ | 4,245,860 | $ | 0 | $ | 1,281 | $ | (2,209,126 | ) | $ | 390,393 | $ | 2,428,408 |
Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interest | Common Stock | Additional Paid-in Capital | Subscription Receivable | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Noncontrolling Interests | Total Shareholders’ Equity | |||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | 22,491 | 694,975,965 | $ | — | $ | 4,421,614 | $ | — | $ | (946 | ) | $ | (2,763,724 | ) | $ | 381,999 | $ | 2,038,943 | |||||||||||||||||
Issuance of y | — | — | — | (251 | ) | — | — | — | 251 | — | ||||||||||||||||||||||||||
Stock options exercised and equity instruments vested and settled, net of tax withholding | — | 4,739,781 | — | (8,329 | ) | — | — | — | — | (8,329 | ) | |||||||||||||||||||||||||
Issuance of the Company’s common shares related to settlement of transaction consideration | — | 1,455,719 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Share-based compensation | — | — | — | 61,590 | — | — | — | 11,204 | 72,794 | |||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | 5,966 | — | (199 | ) | 5,767 | ||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (331,809 | ) | (21,975 | ) | (353,784 | ) | ||||||||||||||||||||||||
Balance at June 30, 2022 | $ | 22,491 | 701,171,465 | $ | — | $ | 4,474,624 | $ | — | $ | 5,020 | $ | (3,095,533 | ) | $ | 371,280 | $ | 1,755,391 | ||||||||||||||||||
Shareholders’ Equity (1) | ||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interest | Common Stock | Additional Paid-in Capital | Subscription Receivable | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Noncontrolling Interests | Total Shareholders’ Equity | |||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | 22,491 | 651,576,293 | $ | — | $ | 3,814,805 | $ | (100,000 | ) | $ | 1,445 | $ | (1,918,462 | ) | $ | 241,726 | $ | 2,039,514 | |||||||||||||||||
Issuance of subsidiary warrants | — | — | — | 2,051 | — | — | — | 24 | 2,075 | |||||||||||||||||||||||||||
Cash contribution to majority-owned subsidiaries | — | — | — | (2,973 | ) | — | — | — | 2,973 | — | ||||||||||||||||||||||||||
Share-based compensation | — | — | — | 11,091 | — | — | — | 8,178 | 19,269 | |||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | (2,652 | ) | — | 213 | (2,439 | ) | |||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (82,183 | ) | (18,895 | ) | (101,078 | ) | ||||||||||||||||||||||||
Balance at June 30, 2021 | $ | 22,491 | 651,576,293 | $ | — | $ | 3,824,974 | $ | (100,000 | ) | $ | (1,207 | ) | $ | (2,000,645 | ) | $ | 234,219 | $ | 1,957,341 | ||||||||||||||||
(1) | Retroactively restated for the stock subdivision as described in Note 7. |
Shareholders’ Equity (1) | ||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interest | Common Stock | Additional Paid-in Capital | Subscription Receivable | Accumulated Other Comprehensive Loss | Accumulated Deficit | Noncontrolling Interests | Total Shareholders’ Equity | |||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | $ | 22,491 | 628,779,048 | $ | 0 | $ | 3,143,739 | $ | 0 | $ | (2,349 | ) | $ | (1,109,228 | ) | $ | 54,042 | $ | 2,086,204 | |||||||||||||||||
Issuance of subsidiary common shares, net of issuance costs | — | — | — | 104,581 | — | — | — | 76,599 | 181,180 | |||||||||||||||||||||||||||
Issuance of subsidiary common shares to the Company | — | — | — | (6,342 | ) | — | — | — | 6,342 | 0 | ||||||||||||||||||||||||||
Exercise of subsidiary stock options | — | — | — | 36 | — | — | — | 27 | 63 | |||||||||||||||||||||||||||
Deconsolidation of subsidiary | — | — | — | — | — | — | — | (3,054 | ) | (3,054 | ) | |||||||||||||||||||||||||
Repurchase of equity awards | — | — | — | (113 | ) | — | — | — | — | (113 | ) | |||||||||||||||||||||||||
Cash contribution to majority-owned subsidiaries | — | — | — | (149 | ) | — | — | — | 149 | 0 | ||||||||||||||||||||||||||
Share-based compensation | — | — | — | 9,285 | — | — | — | 4,993 | 14,278 | |||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | (854 | ) | — | 34 | (820 | ) | |||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (3,243 | ) | (4,734 | ) | (7,977 | ) | ||||||||||||||||||||||||
Balance at June 30, 2020 | $ | 22,491 | 628,779,048 | $ | 0 | $ | 3,251,037 | $ | 0 | $ | (3,203 | ) | $ | (1,112,471 | ) | $ | 134,398 | $ | 2,269,761 | |||||||||||||||||
Issuance of subsidiary common shares, net of issuance costs | — | — | — | 101,418 | — | — | — | 74,499 | 175,917 | |||||||||||||||||||||||||||
Issuance of subsidiary common shares to the Company | — | — | — | (5,318 | ) | — | — | — | 5,318 | 0 | ||||||||||||||||||||||||||
Exercise of subsidiary stock options | — | — | — | 69 | — | — | — | 50 | 119 | |||||||||||||||||||||||||||
Consolidation of unconsolidated entity | — | — | — | — | — | — | — | 9,178 | 9,178 | |||||||||||||||||||||||||||
Cash contribution to majority-owned subsidiaries | — | — | — | (124 | ) | — | — | — | 124 | 0 | ||||||||||||||||||||||||||
Transfer (from) to noncontrolling interest | — | — | — | (255 | ) | — | — | — | 255 | 0 | ||||||||||||||||||||||||||
Share-based compensation | — | — | — | 8,208 | — | — | — | 5,706 | 13,914 | |||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | (1,068 | ) | — | 34 | (1,034 | ) | |||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (35,398 | ) | (18,100 | ) | (53,498 | ) | ||||||||||||||||||||||||
Balance at September 30, 2020 | $ | 22,491 | 628,779,048 | $ | 0 | $ | 3,355,035 | $ | 0 | $ | (4,271 | ) | $ | (1,147,869 | ) | $ | 211,462 | $ | 2,414,357 |
Six Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (326,718 | ) | $ | (61,475 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Acquired in-process research and development | 72,107 | 41,779 | ||||||
Share-based compensation | 416,581 | 28,192 | ||||||
Change in fair value of investments | (23,654 | ) | (125,445 | ) | ||||
Gain on sale of investment | (443,754 | ) | 0 | |||||
Change in fair value of debt and liability instruments | 17,730 | 27,273 | ||||||
Gain on deconsolidation of subsidiary and consolidation of unconsolidated entity | 0 | (115,364 | ) | |||||
Gain on termination of Sumitomo Options | (61,472 | ) | 0 | |||||
Loss from equity method investment | 0 | 3,750 | ||||||
Other | 7,274 | 5,754 | ||||||
Changes in assets and liabilities, net of effects from acquisition and divestiture: | ||||||||
Accounts payable | 56,510 | (29 | ) | |||||
Accrued expenses | 18,569 | (12,912 | ) | |||||
Operating lease liabilities | (2,537 | ) | (2,621 | ) | ||||
Other | 7,598 | 1,886 | ||||||
Net cash used in operating activities | (261,766 | ) | (209,212 | ) | ||||
Cash flows from investing activities: | ||||||||
Cash disposed upon deconsolidation of subsidiary | 0 | (19,085 | ) | |||||
Cash acquired upon consolidation of unconsolidated entity | 0 | 21,439 | ||||||
Investments in unconsolidated entities | 0 | (28,250 | ) | |||||
Proceeds from sale of investment | 320,170 | 0 | ||||||
Purchase of property and equipment | (5,100 | ) | (1,609 | ) | ||||
Net cash provided by (used in) investing activities | 315,070 | (27,505 | ) | |||||
Cash flows from financing activities: | ||||||||
Proceeds from Business Combination and PIPE Financing | 213,424 | 0 | ||||||
Proceeds from issuance of subsidiary common shares, net of issuance costs paid | 0 | 357,017 | ||||||
Proceeds from payment of subscription receivable | 100,000 | 0 | ||||||
Proceeds from subsidiary debt financings, net of financing costs paid | 36,400 | 0 | ||||||
Repayment of long-term debt by subsidiary | (21,590 | ) | 0 | |||||
Payment of offering and loan origination costs | (11,843 | ) | 0 | |||||
Repurchase of equity awards | (2,247 | ) | (113 | ) | ||||
Proceeds from exercise of subsidiary stock options | 0 | 182 | ||||||
Net cash provided by financing activities | 314,144 | 357,086 | ||||||
Net change in cash, cash equivalents and restricted cash | 367,448 | 120,369 | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 2,141,676 | 2,269,252 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 2,509,124 | $ | 2,389,621 | ||||
Non-cash investing and financing activities: | ||||||||
Operating lease right-of-use | $ | 4,579 | $ | 1,716 | ||||
Offering costs included in accounts payable and accrued expenses | $ | 8,453 | $ | 261 | ||||
Other | $ | 0 | $ | (4,351 | ) |
Three Months Ended June 30, | ||||||||
2022 | 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (353,784 | ) | $ | (101,078 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Share-based compensation | 72,794 | 19,269 | ||||||
Change in fair value of investments | 24,547 | 8,619 | ||||||
Change in fair value of debt and liability instruments | 41,213 | 4,585 | ||||||
Gain on termination of Sumitomo Options | — | (61,472 | ) | |||||
Other | 11,263 | 838 | ||||||
Changes in assets and liabilities, net of effects from acquisition and divestiture: | ||||||||
Accounts payable | (19,451 | ) | (6,343 | ) | ||||
Accrued expenses | (18,177 | ) | (7,340 | ) | ||||
Operating lease liabilities | (2,304 | ) | (1,957 | ) | ||||
Deferred revenue | (1,730 | ) | (2,141 | ) | ||||
Other | (6,453 | ) | 5,850 | |||||
Net cash used in operating activities | (252,082 | ) | (141,170 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchase of property and equipment | (7,459 | ) | (2,339 | ) | ||||
Net cash used in investing activities | (7,459 | ) | (2,339 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from subsidiary debt financings, net of financing costs paid | 159,899 | 36,400 | ||||||
Repayment of debt by subsidiary | (7,344 | ) | (21,590 | ) | ||||
Payment of offering and loan origination costs | (2,250 | ) | (4,600 | ) | ||||
Taxes paid related to net settlement of equity instruments | (8,329 | ) | — | |||||
Net cash provided by financing activities | 141,976 | 10,210 | ||||||
Net change in cash, cash equivalents and restricted cash | (117,565 | ) | (133,299 | ) | ||||
Cash, cash equivalents and restricted cash at beginning of period | 2,074,034 | 2,141,676 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 1,956,469 | $ | 2,008,377 | ||||
Non-cash investing and financing activities: | ||||||||
Offering costs included in accounts payable and accrued expenses | $ | — | $ | 4,999 | ||||
Intangible assets acquired but not paid | $ | 146,172 | $ | — | ||||
Other | $ | 691 | $ | 6,654 |
September 30, 2021 | March 31, 2021 | June 30, 2022 | March 31, 2022 | |||||||||||||
Cash and cash equivalents | $ | 2,497,330 | $ | 2,055,044 | $ | 1,942,215 | $ | 2,060,400 | ||||||||
Restricted cash | 11,794 | 86,632 | 14,254 | 13,634 | ||||||||||||
Cash, cash equivalents and restricted cash | $ | 2,509,124 | $ | 2,141,676 | $ | 1,956,469 | $ | 2,074,034 | ||||||||
a. | Prompt Pay and Cash Pay Discounts: The Company generally provides invoice discounts on product sales to its customers for prompt payment and/or cash payment. The Company estimates the amount of |
b. | Customer Fees: The Company pays fees to its customers for account management, data management, and other administrative services. To the |
c. | Chargebacks: Chargebacks are discounts that occur when contracted customers purchase directly from a wholesaler or specialty distributor. Contracted customers, which currently consist primarily of public health service institutions, federal government entities, pharmaceutical benefit managers, and health maintenance organizations, generally purchase the product at a discounted price. The wholesaler or specialty distributor, in turn, charges back to |
Rebates: Allowances for rebates include mandated discounts under the Medicaid Drug Rebate Program and the Medicare Part D prescription drug benefit as well as contracted discounts with pharmaceutical benefit managers and health maintenance organizations. Rebates are amounts owed after the final dispensing of the product to a benefit plan participant and are based upon contractual agreements with payers or statutory requirements pertaining to Medicaid and Medicare benefit providers. The allowance for rebates is based on contractual or statutory discount rates, estimated payer mix, and expected utilization. The Company’s estimates for expected utilization of rebates are based on historical data received from wholesalers, specialty distributors, and pharmacies since launch, as well as analog data from similar products. The Company monitors sales trends and adjusts the |
e. | Co-payment Assistance: The Company offersco-payment assistance to patients. Co-payment assistance is accrued based on an estimate of the number of co-payment assistance claims and the cost per claim that the Company expects to receive associated with product that has been recognized as revenue but remains in the distribution channel inventories at the end of each reporting period. |
Product Returns: Consistent with industry practice, the Company offers its customers limited product return rights for damages, shipment errors, and expiring product; provided that the return is within a specified period around the product expiration date as set forth in the applicable individual distribution or customer agreement. The |
Weighted Average Estimated Useful Lives | June 30, 2022 | |||||||
Gross amount | 16.5 years | $ | 146,172 | |||||
Less: accumulated amortization | (742 | ) | ||||||
Net book value | $ | 145,430 | ||||||
September 30, 2021 | March 31, 2021 | |||||||
Prepaid expenses | $ | 40,946 | $ | 39,544 | ||||
Trade receivables, net | 9,814 | 11,222 | ||||||
Income tax receivable | 2,502 | 1,803 | ||||||
Other | 2,301 | 1,681 | ||||||
Total other current assets | $ | 55,563 | $ | 54,250 | ||||
June 30, 2022 | March 31, 2022 | |||||||
Research and development expenses | $ | 68,914 | $ | 66,188 | ||||
Compensation-related expenses | 17,845 | 44,262 | ||||||
Other expenses | 22,595 | 17,081 | ||||||
Total accrued expenses | $ | 109,354 | $ | 127,531 | ||||
September 30, 2021 | March 31, 2021 | |||||||
Research and development expenses | $ | 42,780 | $ | 20,755 | ||||
Compensation-related expenses | 20,965 | 38,552 | ||||||
Professional services expenses | 17,325 | 10,267 | ||||||
Other general and administrative expenses | 23,041 | 7,362 | ||||||
Total accrued expenses | $ | 104,111 | $ | 76,936 | ||||
September 30, 2021 | March 31, 2021 | |||||||
Deferred revenue | $ | 4,389 | $ | 5,918 | ||||
Income tax payable | 638 | 207 | ||||||
Other | 5,630 | 3,037 | ||||||
Total other current liabilities | $ | 10,657 | $ | 9,162 | ||||
September 30, 2021 | March 31, 2021 | |||||||
Principal amount | $ | 208,200 | $ | 170,100 | ||||
Exit fee / end of term charge | 5,000 | 1,390 | ||||||
Less: unamortized debt discount and issuance costs | (13,331 | ) | (1,210 | ) | ||||
Total debt, net | 199,869 | 170,280 | ||||||
Less: current portion | 0 | 0 | ||||||
Total long-term debt, net | $ | 199,869 | $ | 170,280 | ||||
June 30, 2022 | March 31, 2022 | |||||||
Fair value of long-term debt | $ | 228,000 | $ | 177,400 | ||||
Less: current portion | (27,300 | ) | — | |||||
Total long-term debt, net | $ | 200,700 | $ | 177,400 | ||||
June 30, 2022 | March 31, 2022 | |||||||
Principal amount | $ | 40,000 | $ | 40,000 | ||||
Exit fee | 5,000 | 5,000 | ||||||
Less: unamortized discount and debt issuance costs | (11,862 | ) | (12,375 | ) | ||||
Total debt, net | 33,138 | 32,625 | ||||||
Less: current portion | — | — | ||||||
Total long-term debt, net | $ | 33,138 | $ | 32,625 | ||||
June 30, 2022 | ||||
Carrying balance | $ | 161,056 | ||
Less: unamortized issuance costs | (5,170 | ) | ||
Total debt, net | 155,886 | |||
Less: current portion | (6,004 | ) | ||
Total long-term debt, net | $ | 149,882 | ||
Number of Stock Options | Weighted Average Exercise Price | |||||||
Stock options outstanding at March 31, 2021 | 27,474,942 | $ | 9.10 | |||||
Granted | 11,115,465 | $ | 10.00 | |||||
Forfeited | (901,325 | ) | $ | 11.59 | ||||
Stock options outstanding at September 30, 2021 | 37,689,082 | $ | 9.30 | |||||
Stock options exercisable at September 30, 2021 | 18,999,834 | $ | 7.96 | |||||
Number of Options | ||||
Options outstanding at March 31, 2022 | 80,364,904 | |||
Granted | 74,165,410 | |||
Forfeited/Canceled | (231,768 | ) | ||
Options outstanding at June 30, 2022 | 154,298,546 | |||
Options exercisable at June 30, 2022 | 47,438,548 | |||
Number of Shares | ||||
Non-vested balance at March 31, | ||||
Granted | ||||
Vested | ( | ) | ||
Forfeited | ( | ) | ||
Non-vested balance at | ||||
Number of Performance Options | Weighted Average Exercise Price | |||||||
Performance Options outstanding at March 31, 2021 | 42,212,366 | $ | 13.30 | |||||
Granted | 0 | $ | 0 | |||||
Forfeited | 0 | $ | 0 | |||||
Performance Options outstanding at September 30, 2021 | 42,212,366 | $ | 13.30 | |||||
Performance Options exercisable at September 30, 2021 | 18,467,931 | $ | 13.30 | |||||
Number of CVARs | ||||
Non-vested balance at March 31, | ||||
Vested | ( | ) | ||
Forfeited | ) | |||
Non-vested balance at | ||||
Performance RSUs | ||||
Restricted Common Stock | ||||
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Share-based compensation expense recognized as: | ||||||||||||||||
R&D expenses | $ | 28,157 | $ | 1,887 | $ | 29,772 | $ | 3,006 | ||||||||
G&A expenses | 369,155 | 12,027 | 386,809 | 25,186 | ||||||||||||
Total | $ | 397,312 | $ | 13,914 | $ | 416,581 | $ | 28,192 | ||||||||
a. | 2,033,591 common shares to Patient Square Capital LLC (the “MAAC Sponsor”) and 10,000 common shares issued to each of MAAC’s independent directors (collectively, the “20% Earn-Out Shares”), which will vest if the closing price of the Company’s common shares is greater than or equal to $15.00 over any twenty out ofthirty trading day period during the Vesting Period (defined below). |
b. | 1,016,796 common shares issued to the MAAC Sponsor and 5,000 common shares issued to each of MAAC’s independent directors (collectively, the “10% Earn-Out Shares” and, together with the 20%Earn-Out Shares, the“Earn-Out Shares”), each in respect of its MAAC Class B Shares, will vest if the closing price of the Company’s common shares is greater than or equal to $20.00 over any twenty out of thirty trading day period during the Vesting Period (as defined below). |
c. | The remaining number of common shares issued to the MAAC Sponsor and each of MAAC’s independent director are not subject to the vesting conditions described above (the “Retained Shares”). |
As of June 30, 2022 | As of March 31, 2022 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Balance as of June 30, 2022 | Level 1 | Level 2 | Level 3 | Balance as of March 31, 2022 | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Money market funds | $ | 976,592 | $ | — | $ | — | $ | 976,592 | $ | 1,297,844 | $ | — | $ | — | $ | 1,297,844 | ||||||||||||||||
Investment in Datavant Class A units | — | — | 186,944 | 186,944 | — | — | 193,963 | 193,963 | ||||||||||||||||||||||||
Investment in Sio common shares | 6,688 | — | — | 6,688 | 12,447 | — | — | 12,447 | ||||||||||||||||||||||||
Investment in Arbutus common shares | 105,277 | — | — | 105,277 | 115,765 | — | — | 115,765 | ||||||||||||||||||||||||
Other investment | 2,378 | — | — | 2,378 | 3,659 | — | — | 3,659 | ||||||||||||||||||||||||
Total assets at fair value | $ | 1,090,935 | $ | — | $ | 186,944 | $ | 1,277,879 | $ | 1,429,715 | $ | — | $ | 193,963 | $ | 1,623,678 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Debt issued by Dermavant to NovaQuest | $ | — | $ | — | $ | 228,000 | $ | 228,000 | $ | — | $ | — | $ | 177,400 | $ | 177,400 | ||||||||||||||||
Liability instruments measured at fair value (1) | 12,286 | — | 15,895 | 28,181 | 18,019 | — | 26,893 | 44,912 | ||||||||||||||||||||||||
Total liabilities at fair value | $ | 12,286 | $ | — | $ | 243,895 | $ | 256,181 | $ | 18,019 | $ | — | $ | 204,293 | $ | 222,312 | ||||||||||||||||
(1) | At June 30, 2022, Level 1 includes the fair value of the Public Warrants of $12.3 million, and Level 3 includes the fair value of the Earn-Out Shares of $7.2 million, Private Placement Warrants of $6.1 million, and other liability instruments issued of $2.6 million. At March 31, 2022, Level 1 includes the fair value of the Public Warrants of $18.0 million, and Level 3 includes the fair value of theEarn-Out Shares of $9.2 million, Private Placement Warrants of $9.1 million, and other liability instruments issued of $8.6 million. |
As of September 30, 2021 | As of March 31, 2021 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Balance as of September 30, 2021 | Level 1 | Level 2 | Level 3 | Balance as of March 31, 2021 | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Money market funds | $ | 1,375,720 | $ | — | $ | — | $ | 1,375,720 | $ | 1,420,597 | $ | — | $ | — | $ | 1,420,597 | ||||||||||||||||
Investment in Datavant Class A units | — | — | 219,975 | 219,975 | — | — | — | — | ||||||||||||||||||||||||
Investment in Sio common shares | 40,313 | — | — | 40,313 | 48,487 | — | — | 48,487 | ||||||||||||||||||||||||
Investment in Arbutus common shares | 68,698 | — | — | 68,698 | 53,325 | — | — | 53,325 | ||||||||||||||||||||||||
Investment in Arbutus convertible preferred shares | — | 97,957 | — | 97,957 | — | 76,037 | — | 76,037 | ||||||||||||||||||||||||
Other investment | 9,837 | — | — | 9,837 | 11,129 | — | — | 11,129 | ||||||||||||||||||||||||
Total assets at fair value | $ | 1,494,568 | $ | 97,957 | $ | 219,975 | $ | 1,812,500 | $ | 1,533,538 | $ | 76,037 | $ | — | $ | 1,609,575 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Debt issued by Dermavant to NovaQuest | $ | — | $ | — | $ | 168,200 | $ | 168,200 | $ | — | $ | — | $ | 150,100 | $ | 150,100 | ||||||||||||||||
Liability instruments measured at fair value | 30,599 | — | 44,685 | 75,284 | — | — | 67,893 | 67,893 | ||||||||||||||||||||||||
Total liabilities at fair value | $ | 30,599 | $ | — | $ | 212,885 | $ | 243,484 | $ | — | $ | — | $ | 217,993 | $ | 217,993 | ||||||||||||||||
Balance at March 31, 2021 | $ | 0 | ||
Fair value of investment in Datavant at recognition date | 224,147 | |||
Changes in fair value of investment in Datavant, included in net loss | (4,172 | ) | ||
Balance at September 30, 2021 | $ | 219,975 | ||
Balance at March 31, 2022 | $ | 193,963 | ||
Changes in fair value of investment in Datavant, included in net loss | (7,019 | ) | ||
Balance at June 30, 2022 | $ | 186,944 | ||
Balance at March 31, 2020 | $ | 191,473 | ||
Changes in fair value of debt and liability instruments, included in net loss | 27,273 | |||
Liability instruments disposed due to deconsolidation of subsidiary | (3,325 | ) | ||
Balance at September 30, 2020 | $ | 215,421 | ||
Balance at March 31, 2021 | $ | 217,993 | ||
Fair value of liability instrument issued | 38,634 | |||
Changes in fair value of debt and liability instruments, included in net loss | 17,730 | |||
Termination of DSP Options | (61,472 | ) | ||
Balance at September 30, 2021 | $ | 212,885 | ||
Balance at March 31, 2021 | $ | 217,993 | ||
Changes in fair value of debt and liability instruments, included in net loss | 4,585 | |||
Termination of DSP Options | (61,472 | ) | ||
Balance at June 30, 2021 | $ | 161,106 | ||
Balance at March 31, 2022 | $ | 204,293 | ||
Payments related to long-term debt | (7,344 | ) | ||
Changes in fair value of debt and liability instruments, included in net loss | 46,946 | |||
Balance at June 30, 2022 | $ | 243,895 | ||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Point Estimate Used | ||||||||
Input | As of June 30, 2022 | As of March 31, 2022 | ||||||
Volatility | 82.1 | % | 82.3 | % | ||||
Risk-free rate | 3.00 | % | 2.43 | % |
Point Estimate Used | |||||||
Input | As of June 30, 2022 | As of March 31, 2022 | |||||
Volatility | 56.0 | % | 56.5 | % | |||
Risk-free rate | 3.00 | % | 2.43 | % | |||
Term (in years) | 4.25 | 4.50 |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Loss from equity method investment | $ | 0 | $ | 0 | $ | 0 | $ | 3,750 | ||||||||
Interest income | (62 | ) | (579 | ) | (133 | ) | (1,200 | ) | ||||||||
Interest expense | 1,552 | 608 | 4,065 | 1,399 | ||||||||||||
Other expense (income) | 2,202 | (786 | ) | (374 | ) | (1,864 | ) | |||||||||
Total | $ | 3,692 | $ | (757 | ) | $ | 3,558 | $ | 2,085 | |||||||
Three Months Ended June 30, | ||||||||
2022 | 2021 | |||||||
Interest income | $ | (1,981 | ) | $ | (71 | ) | ||
Interest expense | 2,612 | 2,513 | ||||||
Other expense (income) | 1,085 | (2,576 | ) | |||||
Total | $ | 1,716 | $ | (134 | ) | |||
September 30, 2021 | September 30, 2020 | |||||||
Stock options | 37,689,082 | 27,788,039 | ||||||
Restricted stock units (non-vested) (1) | 21,539,768 | 5,763,925 | ||||||
Performance stock options | 42,212,366 | 42,212,366 | ||||||
Capped value appreciation rights (2) | 32,447,626 | 32,447,626 | ||||||
Performance restricted stock units (non-vested) | 585,229 | 585,229 | ||||||
Restricted common stock (non-vested) | 1,720,090 | — | ||||||
Earn-Out Shares(non-vested) | 3,080,387 | — | ||||||
Private Placement Warrants | 10,214,365 | — | ||||||
Public Warrants | 20,535,896 | — | ||||||
Other instruments issued | 5,164,558 | 5,470,387 |
June 30, 2022 | June 30, 2021 | |||||||
Stock options and performance stock options | 154,298,546 | 80,491,345 | ||||||
Restricted stock units and performance stock units (non-vested) | 26,423,932 | 24,324,525 | ||||||
March 2020 CVARs (1) | 32,011,996 | 32,447,626 | ||||||
November 2021 CVARs | 4,431,637 | 0— | ||||||
Restricted common stock (non-vested) | 456,426 | 1,720,090 | ||||||
Earn-Out Shares(non-vested) | 3,080,387 | 0— | ||||||
Private Placement Warrants | 10,214,365 | 0— | ||||||
Public Warrants | 20,475,875 | 0— | ||||||
Other instruments issued | 5,067,978 | 5,452,793 |
(1) |
Refer to Note |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Product/Product Candidate | Indication | Vant | Modality | Phase | ||||
VTAMA ® (tapinarof) | Psoriasis | Dermavant | Topical | |||||
VTAMA ® (tapinarof) | Atopic Dermatitis | Dermavant | Topical | Phase 3 | ||||
Brepocitinib | Phase 3 | |||||||
Brepocitinib | Systemic Lupus Erythematosus | Priovant | Small Molecule | Phase 2* | ||||
Brepocitinib | Other Indications | Priovant | Small Molecule | Phase 2 | ||||
Batoclimab | Myasthenia Gravis | Immunovant | Biologic | Phase | ||||
Batoclimab | Thyroid Eye Disease | Immunovant | Biologic | Phase 3 | ||||
Batoclimab | Warm Autoimmune Hemolytic Anemia | Immunovant | Biologic | Phase 2 or 3 | ||||
Batoclimab | Immunovant | Biologic | Phase 2 or 3 | |||||
Namilumab | Sarcoidosis | Kinevant | Biologic | Phase | ||||
RVT-2001 | Patients with Lower-Risk MDS | |||||||
Small Molecule | Phase | |||||||
* | Reflects an ongoing trial that is designed to serve as one of two potentially registrational trials for brepocitinib. |
Roivant Ownership | Roivant Ownership | |||||||||||||||
Vant | Basic 1 | Fully Diluted 2 | Basic 1 | Fully Diluted 2 | ||||||||||||
Dermavant | 100 | % | 85 | % | 100 | % | 83 | % | ||||||||
Immunovant | 64 | % 3 | 59 | % 3 | 63 | % 3 | 57 | % 3 | ||||||||
Aruvant | 88 | % | 79 | % | ||||||||||||
Priovant | 75 | % | 70 | % | ||||||||||||
Proteovant | 60 | % | 60 | % | 60 | % | 54 | % | ||||||||
Lysovant | 100 | % | 99 | % | ||||||||||||
Genevant | 83 | % | 67 | % | ||||||||||||
Kinevant | 88 | % | 88 | % | 88 | % | 81 | % | ||||||||
Hemavant | 100 | % | 100 | % | ||||||||||||
Affivant | 100 | % | 99 | % | 100 | % | 99 | % | ||||||||
Cytovant | 72 | % | 68 | % | ||||||||||||
Arbutus | 29 | % 3 | 27 | % 3 | 26 | % 3 | 24 | % 3 | ||||||||
Sio Gene Therapies | 25 | % 3 | 24 | % 3 | ||||||||||||
Genevant | 83 | % | 67 | % | ||||||||||||
Lokavant | 90 | % | 84 | % | 90 | % | 84 | % | ||||||||
Datavant | * | * | * | * | ||||||||||||
Alyvant | 97 | % | 95 | % |
Basic ownership |
2. | Fully diluted ownership refers to Roivant’s percentage ownership of all outstanding equity interests of the entity, including unvested RSUs as well as options and warrants, in each case whether vested or |
3. | Denotes entities that are publicly traded. |
* | As of June 30, 2022, the Company’s minority equity interest in Datavant represented approximately 17% of the outstanding Class A units. Datavant’s capital structure includes several classes of preferred units that, among other features, have liquidation preferences and conversion features. Upon conversion of such preferred units into Class A units, the Company’s ownership interest would be diluted. For more information on Roivant’s ownership interest in Datavant, please refer to Note 3 to Roivant’s unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q. |
Vant | Catalyst | Expected Timing | ||||
VTAMA ® (tapinarof) | Dermavant | |||||
Roivant pipeline growth | New mid/late-stage in-licensing announcements | Ongoing | ||||
LNP platform | Genevant | Updates to LNP patent litigation | Ongoing | |||
Roivant Discovery | Roivant | Updates on QUAISAR platform and degrader discovery | Ongoing | |||
Batoclimab | Immunovant | Initiate two additional pivotal programs, including TED | 2H | |||
VTAMA ® (tapinarof) | ||||||
Dermavant | Topline data from | 1H 2023 | ||||
Brepocitinib | ||||||
trial in | ||||||
2H | ||||||
RVT-2001 | Data from RVT-2001 Phase 1/2 trial in lower-risk MDS | 2H | ||||
Namilumab | ||||||
Kinevant | 1H | |||||
Batoclimab | ||||||
Note: References are to calendar years. All catalyst timings are based on current expectations and, where applicable, contingent on FDA feedback, and may be subject to change. |
Three Months Ended September 30, | ||||||||||||
2021 | 2020 | Change | ||||||||||
(in thousands) | ||||||||||||
Revenue, net | $ | 13,987 | $ | 1,323 | $ | 12,664 | ||||||
Operating expenses: | ||||||||||||
Cost of revenues | 6,381 | 715 | 5,666 | |||||||||
Research and development | 254,259 | 97,409 | 156,850 | |||||||||
General and administrative | 437,776 | 59,740 | 378,036 | |||||||||
Total operating expenses | 698,416 | 157,864 | 540,552 | |||||||||
Loss from operations | (684,429 | ) | (156,541 | ) | (527,888 | ) | ||||||
Change in fair value of investments | (32,273 | ) | (84,297 | ) | 52,024 | |||||||
Gain on sale of investment | (443,754 | ) | — | (443,754 | ) | |||||||
Change in fair value of debt and liability instruments | 13,145 | 10,148 | 2,997 | |||||||||
Gain on consolidation of unconsolidated entity | — | (28,848 | ) | 28,848 | ||||||||
Other expense (income), net | 3,692 | (757 | ) | 4,449 | ||||||||
Loss before income taxes | (225,239 | ) | (52,787 | ) | (172,452 | ) | ||||||
Income tax expense | 401 | 711 | (310 | ) | ||||||||
Net loss | (225,640 | ) | (53,498 | ) | (172,142 | ) | ||||||
Net loss attributable to noncontrolling interests | (17,159 | ) | (18,100 | ) | 941 | |||||||
Net loss attributable to Roivant Sciences Ltd. | $ | (208,481 | ) | $ | (35,398 | ) | $ | (173,083 | ) | |||
Six Months Ended September 30, | Three Months Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | Change | 2022 | 2021 | Change | |||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Revenue, net | $ | 21,722 | $ | 2,899 | $ | 18,823 | $ | 4,319 | $ | 7,735 | $ | (3,416 | ) | |||||||||||
Operating expenses: | ||||||||||||||||||||||||
Cost of revenues | 7,123 | 895 | 6,228 | 1,726 | 742 | 984 | ||||||||||||||||||
Research and development | 332,885 | 156,143 | 176,742 | 135,830 | 78,515 | 57,315 | ||||||||||||||||||
General and administrative | 520,530 | 116,855 | 403,675 | |||||||||||||||||||||
Acquired in-process research and development | — | 111 | (111 | ) | ||||||||||||||||||||
Selling, general and administrative | 149,072 | 82,754 | 66,318 | |||||||||||||||||||||
Total operating expenses | 860,538 | 273,893 | 586,645 | 286,628 | 162,122 | 124,506 | ||||||||||||||||||
Loss from operations | (838,816 | ) | (270,994 | ) | (567,822 | ) | (282,309 | ) | (154,387 | ) | (127,922 | ) | ||||||||||||
Change in fair value of investments | (23,654 | ) | (125,445 | ) | 101,791 | 24,547 | 8,619 | 15,928 | ||||||||||||||||
Gain on sale of investment | (443,754 | ) | — | (443,754 | ) | |||||||||||||||||||
Change in fair value of debt and liability instruments | 17,730 | 27,273 | (9,543 | ) | 41,213 | 4,585 | 36,628 | |||||||||||||||||
Gain on termination of Sumitomo Options | (66,472 | ) | — | (66,472 | ) | — | (66,472 | ) | 66,472 | |||||||||||||||
Gain on deconsolidation of subsidiary and consolidation of unconsolidated entity | — | (115,364 | ) | 115,364 | ||||||||||||||||||||
Other expense, net | 3,558 | 2,085 | 1,473 | |||||||||||||||||||||
Other expense (income), net | 1,716 | (134 | ) | 1,850 | ||||||||||||||||||||
Loss before income taxes | (326,224 | ) | (59,543 | ) | (266,681 | ) | (349,785 | ) | (100,985 | ) | (248,800 | ) | ||||||||||||
Income tax expense | 494 | 1,932 | (1,438 | ) | 3,999 | 93 | 3,906 | |||||||||||||||||
Net loss | (326,718 | ) | (61,475 | ) | (265,243 | ) | (353,784 | ) | (101,078 | ) | (252,706 | ) | ||||||||||||
Net loss attributable to noncontrolling interests | (36,054 | ) | (22,834 | ) | (13,220 | ) | (21,975 | ) | (18,895 | ) | (3,080 | ) | ||||||||||||
Net loss attributable to Roivant Sciences Ltd. | $ | (290,664 | ) | $ | (38,641 | ) | $ | (252,023 | ) | $ | (331,809 | ) | $ | (82,183 | ) | $ | (249,626 | ) | ||||||
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Revenue, net | $ | 13,987 | $ | 1,323 | $ | 12,664 | $ | 21,722 | $ | 2,899 | $ | 18,823 |
Three Months Ended June 30, | ||||||||||||
2022 | 2021 | Change | ||||||||||
(in thousands) | ||||||||||||
Revenue, net | $ | 4,319 | $ | 7,735 | $ | (3,416 | ) |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Cost of revenues | $ | 6,381 | $ | 715 | $ | 5,666 | $ | 7,123 | $ | 895 | $ | 6,228 |
Three Months Ended June 30, | ||||||||||||
2022 | 2021 | Change | ||||||||||
(in thousands) | ||||||||||||
Cost of revenues | $ | 1,726 | $ | 742 | $ | 984 |
Three Months Ended September 30, | Three Months Ended June 30, | |||||||||||||||||||||||
2021 | 2020 | Change | 2022 | 2021 | Change | |||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Program-specific costs: | ||||||||||||||||||||||||
Tapinarof (Dermavant Sciences Ltd.) | $ | 67,656 | $ | 8,905 | $ | 58,751 | ||||||||||||||||||
Batoclimab (Immunovant, Inc.) | 13,479 | 8,465 | 5,014 | |||||||||||||||||||||
ARU-1801 (Aruvant Sciences Ltd.) | 7,362 | 8,187 | (825 | ) | ||||||||||||||||||||
Gimsilumab (Kinevant Sciences Ltd.) | 1,384 | 7,178 | (5,794 | ) | ||||||||||||||||||||
Batoclimab | $ | 17,077 | $ | 13,688 | $ | 3,389 | ||||||||||||||||||
Brepocitinib | 12,302 | — | 12,302 | |||||||||||||||||||||
Tapinarof | 10,440 | 9,757 | 683 | |||||||||||||||||||||
ARU-1801 | 9,847 | 2,278 | 7,569 | |||||||||||||||||||||
LSVT-1701 | 6,088 | 1,366 | 4,722 | |||||||||||||||||||||
ARU-2801 | 3,456 | 1,302 | 2,154 | |||||||||||||||||||||
AFVT-2101 | 3,312 | 4,751 | (1,439 | ) | ||||||||||||||||||||
Other program-specific costs | 22,665 | 5,714 | 16,951 | 17,981 | 14,762 | 3,219 | ||||||||||||||||||
Total program-specific costs | 112,546 | 38,449 | 74,097 | 80,503 | 47,904 | 32,599 | ||||||||||||||||||
Consideration for the purchase of IPR&D through asset acquisitions and license agreements | 82,107 | 45,339 | 36,768 | |||||||||||||||||||||
Unallocated internal costs: | ||||||||||||||||||||||||
Share-based compensation | 28,157 | 1,887 | 26,270 | 12,243 | 1,615 | 10,628 | ||||||||||||||||||
Personnel-related expenses | 23,760 | 11,386 | 12,374 | 34,447 | 22,092 | 12,355 | ||||||||||||||||||
Other expenses | 7,689 | 348 | 7,341 | 8,637 | 6,904 | 1,733 | ||||||||||||||||||
Total research and development expenses | $ | 254,259 | $ | 97,409 | $ | 156,850 | $ | 135,830 | $ | 78,515 | $ | 57,315 | ||||||||||||
Six Months Ended September 30, | ||||||||||||
2021 | 2020 | Change | ||||||||||
(in thousands) | ||||||||||||
Program-specific costs: | ||||||||||||
Tapinarof (Dermavant Sciences Ltd.) | $ | 77,413 | $ | 17,319 | $ | 60,094 | ||||||
Batoclimab (Immunovant, Inc.) | 27,167 | 22,858 | 4,309 | |||||||||
ARU-1801 (Aruvant Sciences Ltd.) | 9,751 | 11,540 | (1,789 | ) | ||||||||
Gimsilumab (Kinevant Sciences Ltd.) | 3,453 | 19,503 | (16,050 | ) | ||||||||
Other program-specific costs | 42,777 | 14,811 | 27,966 | |||||||||
Total program-specific costs | 160,561 | 86,031 | 74,530 | |||||||||
Consideration for the purchase of IPR&D through asset acquisitions and license agreements | 82,107 | 45,339 | 36,768 | |||||||||
Unallocated internal costs: | ||||||||||||
Share-based compensation | 29,772 | 3,006 | 26,766 | |||||||||
Personnel-related expenses | 45,852 | 20,153 | 25,699 | |||||||||
Other expenses | 14,593 | 1,614 | 12,979 | |||||||||
Total research and development expenses | $ | 332,885 | $ | 156,143 | $ | 176,742 | ||||||
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
General and administrative | $ | 437,776 | $ | 59,740 | $ | 378,036 | $ | 520,530 | $ | 116,855 | $ | 403,675 |
Three Months Ended June 30, | ||||||||||||
2022 | 2021 | Change | ||||||||||
(in thousands) | ||||||||||||
Selling, general and administrative | $ | 149,072 | $ | 82,754 | $ | 66,318 |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Change in fair value of investments | $ | (32,273 | ) | $ | (84,297 | ) | $ | 52,024 | $ | (23,654 | ) | $ | (125,445 | ) | $ | 101,791 |
Three Months Ended June 30, | ||||||||||||
2022 | 2021 | Change | ||||||||||
(in thousands) | ||||||||||||
Change in fair value of investments | $ | 24,547 | $ | 8,619 | $ | 15,928 |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Gain on sale of investment | $ | (443,754 | ) | $ | — | $ | (443,754 | ) | $ | (443,754 | ) | $ | — | $ | (443,754 | ) |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Change in fair value of debt and liability instruments | $ | 13,145 | $ | 10,148 | $ | 2,997 | $ | 17,730 | $ | 27,273 | $ | (9,543 | ) |
Three Months Ended June 30, | ||||||||||||
2022 | 2021 | Change | ||||||||||
(in thousands) | ||||||||||||
Change in fair value of debt and liability instruments | $ | 41,213 | $ | 4,585 | $ | 36,628 |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Gain on termination of Sumitomo Options | $ | — | $ | — | $ | — | $ | (66,472 | ) | $ | — | $ | (66,472 | ) |
Three Months Ended June 30, | ||||||||||||
2022 | 2021 | Change | ||||||||||
(in thousands) | ||||||||||||
Gain on termination of Sumitomo Options | $ | — | $ | (66,472 | ) | $ | 66,472 |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Gain on deconsolidation of subsidiary and consolidation of unconsolidated entity | $ | — | $ | (28,848 | ) | $ | 28,848 | $ | — | $ | (115,364 | ) | $ | 115,364 |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Other expense (income), net | $ | 3,692 | $ | (757 | ) | $ | 4,449 | $ | 3,558 | $ | 2,085 | $ | 1,473 |
Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Income tax expense | $ | 401 | $ | 711 | $ | (310 | ) | $ | 494 | $ | 1,932 | $ | (1,438 | ) |
Six Months Ended September 30, | Three Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Net cash used in operating activities | $ | (261,766 | ) | $ | (209,212 | ) | $ | (252,082 | ) | $ | (141,170 | ) | ||||
Net cash provided by (used in) investing activities | $ | 315,070 | $ | (27,505 | ) | |||||||||||
Net cash used in investing activities | $ | (7,459 | ) | $ | (2,339 | ) | ||||||||||
Net cash provided by financing activities | $ | 314,144 | $ | 357,086 | $ | 141,976 | $ | 10,210 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
Item 4. | Controls and Procedures. |
Item 1. | Legal Proceedings. |
Item 1A. | Risk Factors. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
Item 3. | Defaults Upon Senior Securities. |
Item 4. | Mine Safety Disclosures. |
Item 5. | Other Information. |
Item 6. | Exhibits. |
# | Portions of this exhibit have been omitted because they are both (i) not material and (ii) would likely cause competitive harm to Roivant Sciences Ltd. if publicly disclosed. |
† | Certain exhibits and schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The registrant hereby undertakes to furnish supplementally a copy of any omitted exhibit or schedule upon request by the Securities and Exchange Commission. |
* | Previously filed. |
ROIVANT SCIENCES LTD. | ||
By: | /s/ Matthew Gline | |
Name: Matthew Gline | ||
Title: Principal Executive Officer | ||
By: | /s/ Richard Pulik | |
Name: Richard Pulik | ||
Title: Principal Financial Officer | ||
By: | /s/ Matt Maisak | |
Name: Matt Maisak | ||
Title: Authorized Signatory |