mrtx-20230630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2023

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

Commission File Number: 001-35921

______________________________________________________

Mirati Therapeutics, Inc.

(Exact Name of Registrant as Specified in Its Charter)

______________________________________________________


Delaware			46-2693615
(State of Incorporation)			(I.R.S. Employer Identification No.)

3545 Cray Court,	San Diego,	California	92121
(Address of Principal Executive Offices)			(Zip Code)

(858) 332-3410

(Registrant’s Telephone Number, Including Area Code)

______________________________________________________

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


Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, par value $0.001 per share	MRTX	The Nasdaq Stock Market LLC

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 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 ☒

As of August 1, 2023, there were 58,604,347 total shares of common stock outstanding.

Table of Contents

MIRATI THERAPEUTICS, INC.

FORM 10-Q

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION		1

Item 1.	Condensed Consolidated Financial Statements (Unaudited)	1
	Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022	1
	Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Six Months Ended June 30, 2023 and 2022	2
	Condensed Consolidated Statements of Changes in Shareholders’ Equity for the Three and Six Months Ended June 30, 2023 and 2022	4
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2023 and 2022	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	35
Item 4.	Controls and Procedures	35

PART II. OTHER INFORMATION		36

Item 1.	Legal Proceedings	36
Item 1A.	Risk Factors	36
Item 6.	Exhibits	67

SIGNATURES		68

Table of Contents

PART I. FINANCIAL INFORMATION


ITEM 1.			Financial Statements

MIRATI THERAPEUTICS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share data)


	June 30,		December 31,
	2023		2022
	(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	129,866	$	235,260
Short-term investments	649,568		848,577
Accounts receivable, net	10,523		865
Inventory	8,644		3,020
Other current assets	20,316		21,239
Total current assets	818,917		1,108,961
Property and equipment, net	16,867		17,540
Intangible asset, net	14,397		14,914
Long-term investment	4,565		3,465
Right-of-use asset	35,431		36,122
Other long-term assets	24,866		21,645
Total assets	$	915,043	$	1,202,647
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	32,507	$	38,861
Accrued liabilities	107,483		120,587

Total current liabilities	139,990		159,448
Lease liability	42,722		43,661
Other liabilities	3,380		3,022
Total liabilities	186,092		206,131
Commitments and contingencies (see Note 11)
Shareholders' equity
Preferred stock, $0.001 par value, 10,000,000 shares authorized; none issued and outstanding at both June 30, 2023 and December 31, 2022	—		—
Common stock, $0.001 par value; 100,000,000 authorized; 58,339,232 and 57,854,559 issued and outstanding at June 30, 2023 and December 31, 2022, respectively	58		58
Additional paid-in capital	3,544,996		3,453,066
Accumulated other comprehensive loss	(1,715)		(3,719)
Accumulated deficit	(2,814,388)		(2,452,889)
Total shareholders' equity	728,951		996,516
Total liabilities and shareholders' equity	$	915,043	$	1,202,647

See accompanying notes

Table of Contents

MIRATI THERAPEUTICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited, in thousands, except share and per share data)


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Revenue
Product revenue, net	$	13,365	$	—	$	19,656	$	—
License and collaboration revenues	325		5,362		1,201		6,071
Total revenue	13,690		5,362		20,857		6,071
Operating expenses
Cost of product revenue	1,025		—		1,583		—
Cost of product revenue - intangible asset amortization	258		—		517		—
Research and development	124,187		128,339		250,870		259,315
Selling, general and administrative	75,490		54,228		148,980		108,179
Total operating expenses	200,960		182,567		401,950		367,494
Loss from operations	(187,270)		(177,205)		(381,093)		(361,423)
Other income (expense), net	10,357		760		19,594		(3,408)


Net loss	$	(176,913)	$	(176,445)	$	(361,499)	$	(364,831)
Unrealized gain (loss) on available-for-sale investments	26		(909)		2,069		(5,711)
Foreign currency translation adjustment	(34)		—		(65)		—
Comprehensive loss	$	(176,921)

SEC Form 10-Q filed by Mirati Therapeutics Inc.