C4 Therapeutics Inc
For the period ended Jun 30, 2024. Filed Aug 1, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 1, 2024
CCCC$3.10+5.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-08.
0001628280-24-021368
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-01.
0001628280-24-033882
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 104 previous paragraphs and 112 current paragraphs.
76 unchanged; 24 reworded; 9 added; 4 removed; 0 previous and 3 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
The $9.3 million increase in revenue in the three months ended June 30, 2024, as compared to the three months ended June 30, 2023 is primarily driven by the $8.0 million milestone earned under the Biogen Agreement for the accepted delivery of a development candidate in an undisclosed indication, a $1.9 million increase as a result of progress made on the MKDG Agreement signed in March 2024, and a $1.1 million increase as a result of the progress made on the Merck Agreement signed in December 2023.
Current report
The $8.6 million increase in revenue in the six months ended in June 30, 2024, as compared to the six months ended June 30, 2023 is primarily driven by the $4.1 million increase from the milestone earned under the Biogen Agreement, a $1.9 million increase under the Roche Agreement as a result of continued progress towards the nominated targets, a $1.9 million increase as a result for the MKDG Agreement signed in March 2024, and a $1.7 million increase as a result of the Merck Agreement signed in December 2023.
Current report
•a $1.1 million decrease in clinical expenses due to the closeout of our C4T8634 program; and
Current report
•a $1.0 million decrease in intellectual property and other expenses.
Current report
The $12.7 million decrease in research and development expense in the six months ended June 30, 2024 as compared to the six months ended June 30, 2024 is primarily driven by:
Current report
•a $1.8 million decrease in intellectual property and other expenses; and
Current report
•a $1.1 million decrease in professional fees.
Current report
The $1.3 million decrease in general and administrative expense in the six months ended June 30, 2024 as compared to the six months ended June 30, 2024 is primarily driven by the $1.2 million decrease in professional fees and other expenses.
Current report
•net loss of $46.1 million;
Removed paragraphs (4)
Previous report
The $0.7 million decrease in revenue in the three months ended March 31, 2024, as compared to the three months ended March 31, 2023 is primarily driven by a $1.5 million decrease in revenue under the Biogen Agreement due to the fact that we completed research activities on the nominated targets under the Biogen Agreement in the three months ended March 31, 2023, This decrease in revenue was partially offset by a $1.1 million increase in revenue recognized under the Roche Agreement resulting from the progress made on the nominated targets under that agreement.
Previous report
•a $0.8 million increase in clinical expenses as a result of the ongoing Phase 1/2 clinical trials of cemsidomide (CFT7455) and and CFT1946, offset by the decrease in clinical expenses from the Company's decision to to stop clinical development of CFT8634.
Previous report
•net loss of $28.4 million;
Previous report
•$1.3 million change in net accretion of discounts on marketable securities.
Reworded paragraphs (24)
Previous wording
We are a clinical-stage biopharmaceutical company dedicated to delivering on the promise of targeted protein degradation, or TPD, science to create a new generation of small-molecule medicines that transform patients’ lives. By leveraging our proprietary TORPEDO platform, we have the capability to efficiently design and optimize small molecule protein degraders that are highly active against their desired targets by harnessing the body’s natural process for destroying unwanted proteins. We believe our novel oral product candidates have the potential to overcome drug resistance often seen with inhibitors, target currently “undruggable” targets and improve patient outcomes. To date, we have successfully designed and advanced several protein degraders into the clinic across a range of target classes and, based on data from our clinical trials, our product candidates have demonstrated robust target degradation.
Current wording
We are a clinical-stage biopharmaceutical company dedicated to delivering on the promise of targeted protein degradation, or TPD, science to create a new generation of small-molecule medicines that transforms patients’ lives. By leveraging our proprietary TORPEDO platform, we have the capability to efficiently design and optimize small molecule protein degraders that are highly active against their desired targets by harnessing the body’s natural process for destroying unwanted proteins. We believe our novel oral product candidates have the potential to overcome drug resistance often seen with inhibitors, target currently “undruggable” targets and improve patient outcomes. To date, we have successfully designed and advanced several protein degraders into the clinic across a range of target classes and, based on data from our clinical trials, our product candidates have demonstrated robust target degradation.
Previous wording
Comparison of the three months ended March 31, 2024 and 2023
Current wording
Comparison of the three and six months ended June 30, 2024 and 2023
Previous wording
Revenue from our collaboration and license agreements consisted of the following for the three months ended March 31, 2024 and 2023 (in thousands):
Current wording
Revenue from our collaboration and license agreements consisted of the following for the three and six months ended June 30, 2024 and 2023 (in thousands):
Previous wording
The following table summarizes our research and development expense for the three months March 31, 2024 and 2023 (in thousands):
Current wording
The following table summarizes our research and development expense for the three and six months June 30, 2024 and 2023 (in thousands):
Previous wording
The $6.5 million decrease in research and development expense in the three months ended March 31, 2024 as compared to the three months ended March 31, 2023 is primarily driven by:
Current wording
The $6.2 million decrease in research and development expense in the three months ended June 30, 2024 as compared to the three months ended June 30, 2023 is primarily driven by:
Previous wording
•a $1.8 million decrease in personnel costs as a result of our restructuring activities; and
Current wording
•a $2.3 million decrease in personnel costs as a result of our restructuring activities;
Previous wording
•a $4.0 million decrease in preclinical expenses as a result of prioritization of our business towards programs that are in clinical stages;
Current wording
•a $1.5 million decrease in preclinical expenses as a result of prioritization of our business towards programs that are in clinical stages;
Previous wording
The following table summarizes our general and administrative expense for the three months ended March 31, 2024 and 2023 (in thousands):
Current wording
The following table summarizes our general and administrative expense for the three and six months ended June 30, 2024 and 2023 (in thousands):
Previous wording
The $0.7 million decrease in general and administrative expense in the three months ended March 31, 2024 as compared to the three months ended March 31, 2023 is primarily driven by a $0.6 million decrease in professional fees and other expenses during the three months ended March 31, 2024.
Current wording
The $0.6 million decrease in general and administrative expense in the three months ended June 30, 2024 as compared to the three months ended June 30, 2023 is primarily driven by a $0.6 million decrease in professional fees and other expenses during the three months ended June 30, 2024.
Previous wording
The $2.4 million increase of restructuring expense in the three months ended March 31, 2024 compared to the three months ended March 31, 2023 is driven by the restructuring plan implemented in January 2024 to better align its workforce with the needs of its business and reduce operating costs that included a reduction in the Company's workforce by 30% or 45 positions.
Current wording
The $2.4 million increase of restructuring expense in the six months ended June 30, 2024 compared to the six months ended June 30, 2023 is driven by the restructuring plan implemented in January 2024 to better align its workforce with the needs of its business and reduce operating costs that included a reduction in the Company's workforce by 30%.
Previous wording
The following table summarizes our other income (expense), net for the three months ended March 31, 2024 and 2023 (in thousands):
Current wording
The following table summarizes our other income (expense), net for the three and six months ended June 30, 2024 and 2023 (in thousands):
Previous wording
The $2.4 million increase in other income (expense), net in the three months ended March 31, 2024 as compared to the three months ended March 31, 2023 is primarily driven by a $2.8 million increase in interest and other income resulting from higher interest earned on our investments during the three months ended March 31, 2024.
Current wording
The $2.1 million increase in other income (expense), net in the three months ended June 30, 2024 as compared to the three months ended June 30, 2023 is primarily driven by a $1.5 million increase in interest and other income resulting from higher interest earned on our investments during the three months ended June 30, 2024, offset be a $0.6 million decrease in interest expense from long-term debt..
Previous wording
Since inception, we have incurred significant operating losses. We expect to incur significant expenses and operating losses for the foreseeable future as we advance the preclinical programs and our product candidates through clinical development. We do not currently have any approved products and have never generated any revenue from product sales. To date, we have financed our operations primarily through the sale of preferred stock, public offerings of our common stock, private placements of our common stock, and through payments from collaboration partners. As of March 31, 2024, we had cash, cash equivalents and marketable securities of approximately $299.2 million.
Current wording
Since inception, we have incurred significant operating losses. We expect to incur significant expenses and operating losses for the foreseeable future as we advance the preclinical programs and our product candidates through clinical development. We do not currently have any approved products and have never generated any revenue from product sales. To date, we have financed our operations primarily through the sale of preferred stock, public offerings of our common stock, private placements of our common stock, and through payments from collaboration partners. As of June 30, 2024, we had cash, cash equivalents and marketable securities of approximately $295.7 million.
Previous wording
Net cash used in operating activities for the three months ended March 31, 2024 was driven primarily by the following uses of cash:
Current wording
Net cash used in operating activities for the six months ended June 30, 2024 was driven primarily by the following uses of cash:
Previous wording
•$7.7 million change in accrued expenses and other current liabilities;
Current wording
•$9.4 million change in accrued expenses and other current liabilities;
Previous wording
•$4.7 million change in prepaid expenses and other current and long-term assets;
Current wording
•$5.1 million change in prepaid expenses and other current and long-term assets; and
Previous wording
•$1.3 million change in our operating lease liability; and
Current wording
•$2.6 million change in our operating lease liability.
Previous wording
•$18.6 million change in deferred revenue due to the upfront payment related to the MKDG agreement and the allocated transaction price that remains unsatisfied related to the Betta Pharma License Agreement, partially offset by the recognition of revenue under our collaboration agreements; and
Current wording
•$16.2 million change in deferred revenue due to the upfront payment related to the MKDG agreement and the allocated transaction price that remains unsatisfied related to the Betta Pharma License Agreement, partially offset by the recognition of revenue under our collaboration agreements;
Previous wording
•$1.8 million change in accounts receivable;
Current wording
•$10.6 million change in accounts receivable, primarily a result of the Merck upfront payment; and
Previous wording
•non-cash expenses of $7.0 million, which primarily consisted of stock-based compensation expense of $6.2 million.
Current wording
•non-cash expenses of $13.7 million, which primarily consisted of stock-based compensation expense of $12.6 million.
Previous wording
Net cash used in investing activities for the three months ended March 31, 2024 was driven primarily by $53.4 million of purchases of marketable securities, net of maturities.
Current wording
Net cash used in investing activities for the six months ended June 30, 2024 was driven primarily by $64.9 million of purchases of marketable securities, net of maturities.
Previous wording
Net cash provided by financing activities for the three months ended March 31, 2024 was driven primarily by:
Current wording
Net cash provided by financing activities for the six months ended June 30, 2024 was driven primarily by:
Previous wording
•$14.1 million in net proceeds from our at-the-market offering arrangement.
Current wording
•$14.1 million in net proceeds from our at-the-market equity program.
Previous wording
During the three months ended March 31, 2024, except for the minimum rental commitments disclosed in Note 6, Leases, to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q, there were no significant changes to our contractual obligations and commitments described under "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2023.
Current wording
During the six months ended June 30, 2024, except for the minimum rental commitments disclosed in Note 6, Leases, to the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q, there were no significant changes to our contractual obligations and commitments described under "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2023.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
•a $5.5 million decrease in preclinical expenses as a result of prioritization of our business towards programs that are in clinical stages;
Current report — wording carried from elsewhere
•a $4.2 million decrease in personnel costs as a result of our restructuring activities;
Current report — wording carried from elsewhere
The $4.5 million increase in other income (expense), net in the six months ended June 30, 2024 as compared to the six months ended June 30, 2023 is primarily driven by a $3.3 million increase in interest and other income resulting from higher interest earned on our investments during the three months ended June 30, 2024, offset by a $1.2 million decrease in interest expense from long-term debt.