agio-20220331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)


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

For the quarterly period ended March 31, 2022


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

Commission file number: 001-36014

AGIOS PHARMACEUTICALS, INC.

(Exact Name of Registrant as Specified in Its Charter)


Delaware									26-0662915
(State or Other Jurisdiction of Incorporation or Organization)									(I.R.S. Employer Identification No.)

88 Sidney Street, Cambridge, Massachusetts									02139
(Address of Principal Executive Offices)									(Zip Code)

(617) 649-8600

(Registrant’s Telephone Number, Including Area Code)

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, Par Value $0.001 per share	AGIO	Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


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

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of shares of the registrant’s Common Stock, $0.001 par value, outstanding on April 29, 2022: 54,788,927

Table of Contents

AGIOS PHARMACEUTICALS, INC.

FORM 10-Q

FOR THE THREE MONTHS ENDED MARCH 31, 2022

TABLE OF CONTENTS


		Page No.
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	1
	Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021	1
	Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2022 and 2021	2
	Condensed Consolidated Statements of Comprehensive (Loss) Income for the Three Months Ended March 31, 2022 and 2021	3
	Condensed Consolidated Statements of Stockholders' Equity for the Three Months Ended March 31, 2022 and 2021	4
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021	5
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27
Item 4.	Controls and Procedures	27
PART II. OTHER INFORMATION		29
Item 1A.	Risk Factors	29
Item 6.	Exhibits	56
	Signatures	57

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

AGIOS PHARMACEUTICALS, INC.

Condensed Consolidated Balance Sheets

(Unaudited)


(In thousands, except share and per share data)	March 31, 2022		December 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	80,026	$	203,126
Marketable securities	843,503		816,892
Accounts receivable, net	540		—



Other receivable	5,365		4,378
Inventory	2,485		—
Prepaid expenses and other current assets	43,226		39,835

Total current assets	975,145		1,064,231
Marketable securities	255,836		266,375
Operating lease assets	72,688		75,124
Property and equipment, net	29,195		28,923
Financing lease assets	95		183
Other non-current assets	2,900		2,900

Total assets	$	1,335,859	$	1,437,736
Liabilities and stockholders’ equity
Current liabilities:

Accounts payable	$	11,551	$	16,700
Accrued expenses	19,747		31,967

Operating lease liabilities	11,744		10,828
Financing lease liabilities	250		331
Deferred revenue	2,500		—



Total current liabilities	45,792		59,826

Operating lease liabilities, net of current portion	82,338		85,659
Financing lease liabilities, net of current portion	276		276


Total liabilities	128,406		145,761
Stockholders’ equity:
Preferred stock, $0.001 par value; 25,000,000 shares authorized; no shares issued or outstanding at March 31, 2022 and December 31, 2021	—		—
Common stock, $0.001 par value; 125,000,000 shares authorized; 70,993,277 shares issued and 54,776,467 shares outstanding at March 31, 2022, and 70,550,631 shares issued and 54,334,220 shares outstanding at December 31, 2021	71		71
Additional paid-in capital	2,351,147		2,334,348
Accumulated other comprehensive loss	(7,745)		(1,198)
Treasury stock, at cost (16,216,411 shares at March 31, 2022 and December 31, 2021)	(802,486)		(802,486)
Accumulated deficit	(333,534)		(238,760)
Total stockholders’ equity	1,207,453		1,291,975
Total liabilities and stockholders’ equity	$	1,335,859	$	1,437,736

See accompanying Notes to Condensed Consolidated Financial Statements.

Table of Contents

AGIOS PHARMACEUTICALS, INC.

Condensed Consolidated Statements of Operations

(Unaudited)


	Three Months Ended March 31,
(In thousands, except share and per share data)	2022		2021
Revenues:
Product revenue, net	$	832	$	—



Total revenue	832		—
Cost and expenses:
Cost of sales	$	339	$	—
Research and development	70,123		57,667
Selling, general and administrative	31,515		33,550
Total cost and expenses	101,977		91,217
Loss from operations	(101,145)		(91,217)
Royalty income from gain on sale of oncology business	2,704		—
Interest income, net	694		340
Other income, net	2,973		—

Net loss from continuing operations	(94,774)		(90,877)
Net income from discontinued operations, net of tax	—		1,965,202
Net (loss) income	$	(94,774)	$	1,874,325
Net loss from continuing operations per share - basic and diluted	$	(1.74)	$	(1.31)
Net income from discontinued operations per share - basic and diluted	$	—	$	28.26

Net (loss) income per share - basic and diluted	$	(1.74)	$	26.95

Weig

SEC Form 10-Q filed by Agios Pharmaceuticals Inc.