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condensed Consolidated Financial Statements for the three-month period ended March 31, 2021, included herein, have been prepared in accordance with International Financial Reporting Standards ( IFRS ) as issued by the International
Accounting Standards Board ( IASB ). The Consolidated Financial Statements are presented in euros. All references in this interim report to $, and U.S. dollars mean U.S. dollars and all references to
and euros mean euros, unless otherwise noted.
This interim report, including Management s Discussion and
Analysis of Financial Condition and Results of Operations, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 27A of the Securities Act. All statements other than
present and historical facts and conditions contained in this interim report, including statements regarding our future results of operations and financial position, business strategy, plans and our objectives for future operations, are
forward-looking statements. When used in this interim report, the words anticipate, believe, can, could, estimate, expect, intend, is designed to,
may, might, plan, potential, predict, objective, scheduled, should, will or the negative of these and similar expressions identify
forward-looking statements. Actual results, performance or events may differ materially from those projected in any forward-looking statement. Factors that may cause actual results to differ from those in any forward-looking statement include,
without limitation: the severity and duration of the evolving COVID-19 pandemic and the resulting impact on macro-economic conditions; inconclusive clinical trial results or clinical trials failing to achieve
one or more endpoints, early data not being repeated in ongoing or future clinical trials, failures to secure required regulatory approvals, disruptions from failures by third-parties on whom we rely in connection with our clinical trials, delays or
negative determinations by regulatory authorities, changes or increases in oversight and regulation; increased competition; manufacturing delays or problems, inability to achieve enrollment targets, disagreements with our collaboration partners or
failures of collaboration partners to pursue product candidates, legal challenges, including product liability claims or intellectual property disputes, commercialization factors, including regulatory approval and pricing determinations, disruptions
to access to raw materials or starting material, proliferation and continuous evolution of new technologies; disruptions to Immatics business; management changes; dislocations in the capital markets; and other important factors described under
Risk Factors and Cautionary Note Regarding Forward-Looking Statements in our Annual Report on Form 20-F filed with the Securities and Exchange Commission on March 30, 2021 and under Risk Factors in this interim
report. As a result of these factors, we cannot assure you that the forward-looking statements in this interim report will prove to be accurate. Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material.
In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame
or at all. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
, XPRESIDENT , ACTengine , ACTallo , ACTolog , XCEPTOR , TCER ,
AbsQuant , IMADetect and other trademarks or service marks of Immatics appearing in this interim report are the property of the
company. Solely for convenience, some of the trademarks, service marks, logos and trade names referred to in this interim report are presented without the and symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the rights of the applicable licensors
to these trademarks, service marks and trade names. This interim report contains additional trademarks, service marks and trade names of others. All trademarks, service marks and trade names appearing in this interim report are, to our knowledge,
the property of their respective owners. We do not intend our use or display of other companies trademarks, service marks, copyrights or trade names to imply a relationship with, or endorsement or sponsorship of us by, any other companies.
As used in this interim report, the terms Immatics, we, our, us, the Group and
the Company refer to Immatics N.V. and its subsidiaries, taken as a whole, unless the context otherwise requires. The unaudited condensed consolidated financial statements and Management s Discussion & Analysis of Financial
Condition and Results of Operations in this interim report are related to Immatics N.V. and its German subsidiary Immatics Biotechnologies GmbH as well as its U.S. subsidiary Immatics U.S. Inc.
Unaudited Condensed Consolidated Statement of Financial Position of Immatics N.V.
| As of | ||||||||||||
| Notes | March 31, 2021 | December 31, 2020 | ||||||||||
| (Euros in thousands) | ||||||||||||
| Assets | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | 195,333 | 207,530 | ||||||||||
| Other financial assets | 14 | 21,322 | 24,448 | |||||||||
| Accounts receivable | 575 | 1,250 | ||||||||||
| Other current assets | 5 | 4,766 | 5,763 | |||||||||
| Total current assets | 221,996 | 238,991 | ||||||||||
| Non-current assets | ||||||||||||
| Property, plant and equipment | 9 | 7,981 | 7,868 | |||||||||
| Intangible assets | 9 | 920 | 914 | |||||||||
| Right-of-use assets | 9 | 6,286 | 6,149 | |||||||||
| Other non-current assets | 589 | 724 | ||||||||||
| Total non-current assets | 15,776 | 15,655 | ||||||||||
| Total assets | 237,772 | 254,646 | ||||||||||
| Liabilities and shareholders deficit | ||||||||||||
| Current liabilities | ||||||||||||
| Provisions | 10 | 971 | 51 | |||||||||
| Accounts payable | 10,304 | 10,052 | ||||||||||
| Deferred revenue | 6 | 53,334 | 46,600 | |||||||||
| Lease liabilities | 1,978 | 1,881 | ||||||||||
| Other current liabilities | 11 | 1,416 | 2.025 | |||||||||
| Total current liabilities | 68,003 | 60,609 | ||||||||||
| Non-current liabilities | ||||||||||||
| Deferred revenue | 6 | 71,707 | 85,475 | |||||||||
| Lease liabilities | 4,375 | 4,306 | ||||||||||
| Total non-current liabilities | 76,082 | 89,781 | ||||||||||
| Shareholders equity | ||||||||||||
| Share capital | 629 | 629 | ||||||||||
| Share premium | 581,643 | 573,339 | ||||||||||
| Accumulated deficit | (483,851 | ) | (462,253 | ) | ||||||||
| Other reserves | (4,734 | ) | (7,459 | ) | ||||||||
| Total shareholders equity | 93,687 | 104,256 | ||||||||||
| Total liabilities and shareholders equity | 237,772 | 254,646 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
Unaudited Condensed Consolidated Statement of Loss of Immatics N.V.
| Three months ended March 31, | ||||||||||||
| Notes | 2021 | 2020 | ||||||||||
| (Euros in thousands, except share and per share data) | ||||||||||||
| Revenue from collaboration agreements | 6 | 7,403 | 7,040 | |||||||||
| Research and development expenses | (23,049 | ) | (12,246 | ) | ||||||||
| General and administrative expenses | (8,431 | ) | (6,188 | ) | ||||||||
| Other income | 239 | 113 | ||||||||||
| Operating result | (23,838 | ) | (11,281 | ) | ||||||||
| Financial income | 3,464 | 2,730 | ||||||||||
| Financial expenses | (1,224 | ) | (29 | ) | ||||||||
| Financial result | 7 | 2,240 | 2,701 | |||||||||
| Loss before taxes | (21,598 | ) | (8,580 | ) | ||||||||
| Taxes on income | ||||||||||||
| Net loss | (21,598 | ) | (8,580 | ) | ||||||||
| Attributable to: | ||||||||||||
| Equity holders of the parent | (21,598 | ) | (8,306 | ) | ||||||||
| Non-controlling interest | (274 | ) | ||||||||||
| Net loss | (21,598 | ) | (8,580 | ) | ||||||||
| Net loss per share basic and diluted | (0.34 | ) | (0.25 | ) | ||||||||
| Weighted average shares outstanding basic and diluted | 62,908,791 | 33,093,838 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
Unaudited Condensed Consolidated Statement of Comprehensive Loss of Immatics N.V.
| Three months ended March 31, | ||||||||||||
| Notes | 2021 | 2020 | ||||||||||
| (Euros in thousands) | ||||||||||||
| Net Loss | (21,598 | ) | (8,580 | ) | ||||||||
| Other comprehensive loss | ||||||||||||
| Items that may be reclassified subsequently to profit or loss, net of tax | ||||||||||||
| Currency translation differences from foreign operations | 2,725 | (692 | ) | |||||||||
| Total comprehensive loss for the period | (18,873 | ) | (9,272 | ) | ||||||||
| Attributable to: | ||||||||||||
| Equity holders of the parent | (18,873 | ) | (8,998 | ) | ||||||||
| Non-controlling interest | (274 | ) | ||||||||||
| Total comprehensive loss for the period | (18,873 | ) | (9,272 | ) |
The accompanying notes are an integral part of these condensed consolidated financial statements.
Unaudited Condensed Consolidated Statement of Cash Flows of Immatics N.V.
| Three months ended March 31, | ||||||||
| 2021 | 2020 | |||||||
| (Euros in thousands) | ||||||||
| Cash flows from operating activities | ||||||||
| Loss before taxation | (21,598 | ) | (8,580 | ) | ||||
| Adjustments for: | ||||||||
| Interest income | (49 | ) | (319 | ) | ||||
| Depreciation and amortization | 1,094 | 1,048 | ||||||
| Interest expense | 70 | 28 | ||||||
| Equity settled share-based payment | 8,304 | 39 | ||||||
| MD Anderson compensation expense | 37 | |||||||
| Increase in other liabilities resulting from share appreciation rights | 689 | |||||||
| Net foreign exchange differences | 318 | (786 | ) | |||||
| Changes in working capital | ||||||||
| Decrease in accounts receivable | 676 | 625 | ||||||
| (Increase) decrease in other assets | 1,207 | (372 | ) | |||||
| (Increase) in accounts payable and other current liabilities | (6,645 | ) | (3,990 | ) | ||||
| Interest received | 36 | 159 | ||||||
| Interest paid | (70 | ) | (28 | ) | ||||
| Net cash provided by/(used in) operating activities | (16,657 | ) | (11,450 | ) | ||||
| Cash flows from investing activities | ||||||||
| Payments for property, plant and equipment | (565 | ) | (2,382 | ) | ||||
| Cash paid for investments classified in Other financial assets | (21,322 | ) | (32,859 | ) | ||||
| Cash received from maturity of investments classified in Other financial assets | 24,448 | 16,023 | ||||||
| Payments for intangible assets | (6 | ) | (5 | ) | ||||
| Proceeds from disposal of property, plant and equipment | 4 | |||||||
| Net cash provided by/(used in) investing activities | 2,559 | (19,223 | ) | |||||
| Cash flows from financing activities | ||||||||
| Payments for leases | (482 | ) | (611 | ) | ||||
| Net cash provided by/(used in) financing activities | (482 | ) | (611 | ) | ||||
| Net decrease in cash and cash equivalents | (14,580 | ) | (31,284 | ) | ||||
| Cash and cash equivalents at beginning of period | 207,530 | 103,353 | ||||||
| Effects of exchange rate changes on cash and cash equivalents | 2,383 | 133 | ||||||
| Cash and cash equivalents at end of period | 195,333 | 72,202 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
Unaudited Condensed Consolidated Statement of Changes in Shareholders equity (deficit) of Immatics
| (Euros in thousands) | Notes | Share capital | Share premium | Accumulated deficit | Other reserves | Total equity (deficit) attributable to shareholders of the parent | Non-controlling interest | Total share- holders equity (deficit) | ||||||||||||||||||||||||
| Balance as of January 1, 2020 | 1,164 | 190,945 | (233,194 | ) | (770 | ) | (41,855 | ) | 1,020 | (40,835) | ||||||||||||||||||||||
| Other comprehensive loss | (692 | ) | (692 | ) | (692) | |||||||||||||||||||||||||||
| Net loss | (8,306 | ) | (8,306 | ) | (274 | ) | (8,580) | |||||||||||||||||||||||||
| Comprehensive loss for the year | (8,306 | ) | (692 | ) | (8,998 | ) | (274 | ) | (9,272) | |||||||||||||||||||||||
| Equity-settled tandem awards | 12 | 39 | 39 | 39 | ||||||||||||||||||||||||||||
| MD Anderson milestone compensation expense | 37 | 37 | ||||||||||||||||||||||||||||||
| Balance as of March 31, 2020 | 1,164 | 190,984 | (241,500 | ) | (1,462 | ) | (50,814 | ) | 783 | (50,031) | ||||||||||||||||||||||
| Balance as of January 1, 2021 | 629 | 573,339 | (462,253 | ) | (7,459 | ) | 104,256 | 104,256 | ||||||||||||||||||||||||
| Other comprehensive loss | 2,725 | 2,725 | 2,725 | |||||||||||||||||||||||||||||
| Net loss | (21,598 | ) | (21,598 | ) | (21,598) | |||||||||||||||||||||||||||
| Comprehensive loss for the year | (21,598 | ) | 2,725 | (18,873 | ) | (18,873) | ||||||||||||||||||||||||||
| Equity-settled share-based compensation | 12 | 8,304 | 8,304 | 8,304 | ||||||||||||||||||||||||||||
| Balance as of March 31, 2021 | 629 | 581,643 | (483,851 | ) | (4,734 | ) | 93,687 | 93,687 |
The accompanying notes are an integral part of these condensed consolidated financial statements.
Notes to the Unaudited Condensed Consolidated Financial Statements of Immatics N.V.
1. Group information
Immatics N.V, together with its
German subsidiary Immatics Biotechnologies GmbH and its U.S. subsidiary, Immatics US Inc., ( Immatics or the Group ) is a biotechnology group that is primarily engaged in the research and development of T cell redirecting
immunotherapies for the treatment of cancer. Immatics N.V., a Dutch public limited liability company, was converted on July 1, 2020 from Immatics B.V., a Dutch company with limited liability. Immatics Biotechnologies GmbH and Immatics US Inc.
became subsidiaries of Immatics N.V. as part of the ARYA Merger on July 1, 2020. Immatics N.V is registered with the commercial register at the Netherlands Chamber of Commerce under RSIN 861058926 with a corporate seat in Amsterdam and is
located at Paul-Ehrlich Str. 15 in 72076 T bingen, Germany. Prior to July 1, 2020, Immatics N.V. was a shell company with no active trade or business or subsidiaries and all relevant assets and liabilities as well as income and expenses
were borne by Immatics Biotechnologies GmbH and its U.S. subsidiary Immatics US, Inc. Therefore, the comparable financial results for the three months ended March 31, 2020 represent consolidated financial results of Immatics Biotechnologies
These interim condensed consolidated financial statements of the Group for the three months ended March 31, 2021 were authorized for issue by
the Management Board of Immatics N.V. on May 18, 2021.
2. Significant events and changes in the current reporting period
The Group was affected by the following events or transactions during the three months ended March 31, 2021.
December 2019, a novel strain of coronavirus ( COVID-19 ) emerged in Wuhan, China. While initially concentrated in China, spread of the outbreak is now worldwide. On January 30, 2020, the World
Health Organization declared the outbreak a pandemic and a global emergency. In response, many countries and businesses still institute travel restrictions, quarantines, and office closures. The extent of the pandemic and governmental responses may
impact our ability to obtain raw materials and equipment used for research and development, obtain sufficient additional funds to finance our operations, and conduct clinical trials, any of which could materially and adversely affect our business.
Management continues to monitor the situation and enacted significant measures to protect the Group s supply chain, employees, and the execution of
clinical trials. To date, the pandemic has resulted in a slowdown in activities related to the Group s laboratory operations and at some of its suppliers. The ongoing spread of COVID-19 may also
negatively impact the Group s ability to conduct clinical trials, including potential delays and restrictions on the Group s ability to recruit and retain patients, and the availability of principal investigators and healthcare employees. COVID-19 could also affect the operations of contract research organizations, which may also result in delays or disruptions in the supply of product candidates. Immatics continues to expand its clinical programs
with additional clinical trial sites opening in the U.S. and in Europe. Given the ongoing vaccination programs both in the U.S. and in Europe we currently do not expect significant negative impacts on the Group s activities in the future.
3. Significant accounting policies
The interim condensed consolidated financial statements of the Group as of March 31, 2021 and for the three months ended
March 31, 2021 and 2020 have been prepared in accordance with International Accounting Standard 34 ( Interim Financial Reporting ), as issued by the International Accounting Standards Board ( IASB ).
The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and
should be read in conjunction with the Group s annual financial statements for the year ended December 31, 2020, which have been prepared in accordance with International Financial Reporting Standards ( IFRS ) as issued by the
IASB, taking into account the recommendations of the International Financial Reporting Standards Interpretations Committee ( IFRS IC ).
The interim condensed consolidated financial statements are presented in Euros. Amounts are stated in
thousands of Euros, unless otherwise indicated.
The accounting policies adopted in the preparation of the interim condensed consolidated financial
statements are consistent with those followed in the preparation of the Group s annual consolidated financial statements for the year ended December 31, 2020. The new and amended standards and interpretations applied for the first time as
of January 1, 2021, as disclosed in the notes to the consolidated financial statements for the year ended December 31, 2020, had no impact on the interim condensed consolidated financial statements of the Group for the three months ended
as of March 31, 2021.
The Group had a non-controlling interest, representing approximately 3.96% of the
Group s Immatics US, Inc. subsidiary as of March 31, 2020 held by MD Anderson. On July 1, 2020 and as part of the ARYA Merger, this non-controlling interest in Immatics US, Inc. was exchanged
for ordinary shares in Immatics N.V.
4. Segment information
The Group manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The Group s focus is on the
research and development of T cell redirecting immunotherapies for the treatment of cancer. The Chief Executive Officer is the chief operating decision maker who regularly reviews the consolidated operating results and makes decisions about the
allocation of the Group s resources.
5. Other current assets
| As of | ||||||||
| March 31, 2021 | December 31, 2020 | |||||||
| (Euros in thousands) | ||||||||
| Grant receivable | 736 | 875 | ||||||
| Prepaid expenses | 2,318 | 2,389 | ||||||
| Positive market value forward contract | 914 | |||||||
| Value added tax receivable | 863 | 798 | ||||||
| Other assets | 849 | 787 | ||||||
| Other current assets | 4,766 | 5,763 |
The Group recognizes receivables for government grants, when it is reasonably assured that the grant will be received, and all
contractual conditions have been complied with. As of March 31, 2021, and December 31, 2020, no receivables were considered impaired.
expenses include prepaid insurance expenses of 0.6 million as of March 31, 2021 and 1.0 million as of December 31, 2020. The Group paid 0.5 million as of March 31, 2021 and 0.5 million as of
December 31, 2020 of incremental cost for the successful arrangement of the Celgene Switzerland LLC ( BMS ) and Genmab A/S ( Genmab ) collaboration agreements.
Additionally, prepaid expenses include expenses for licenses and software of 0.6 million as of March 31, 2021 and 0.6 million as of
December 31, 2020. The remaining amount is related to prepaid maintenance expenses.
Other assets include receivables from capital gains tax of
0.5 million as of March 31, 2021 and 0.4 million as of December 31, 2020. The remaining amount is related to deposits.
6. Revenue from collaboration agreements
The Group earns revenue through strategic collaboration agreements with third party pharmaceutical and biotechnology companies. As of March 31, 2021, the
Group had four strategic collaboration agreements in place. All collaboration agreements are still at pre-clinical stage. During the three months ended March 31, 2021, the Group did not enter into any new
collaboration agreements.
The Group earned revenue from collaboration agreements from the following collaborators during the three months ended
March 31, 2021 and 2020:
| Three months ended March 31, | ||||||||
| 2021 | 2020 | |||||||
| (Euros in thousands) | ||||||||
| Amgen | 257 | 2,150 | ||||||
| Genmab | 2,236 | 2,015 | ||||||
| BMS | 3,293 | 2,422 | ||||||
| GSK | 1,617 | 453 | ||||||
| Total | 7,403 | 7,040 |
As of March 31, 2021, the Group has not recognized any royalty or milestone revenue under the collaboration agreements,
due to the scientific uncertainty of achieving the milestones or the successful commercialization of a product. As of March 31, 2021, Immatics had not received any milestone or royalty payments in connection with the collaboration agreements.
The Group plans to recognize the remaining deferred revenue balance into revenue as it performs the related performance obligations under each contract. Deferred revenue related to the collaboration agreements consists of the following as of
March 31, 2021 and December 31, 2020: