Full Press Release Details
Roivant Sciences Reports Financial Results for the Quarter Ended September 30, 2021 and Provides Business Update
BASEL, Switzerland and LONDON and NEW YORK and BOSTON, Nov. 15, 2021 Roivant Sciences Ltd. (Nasdaq: ROIV), a next-generation biopharmaceutical company
dedicated to improving the delivery of healthcare to patients, today reported its financial results for the second fiscal quarter ended September 30, 2021 and provided an update on the Company s operations.
Roivant s Chief Executive Officer, Matt Gline, noted: We are looking forward to this new phase of growth as we prepare to launch potential
blockbuster tapinarof in psoriasis, with registrational studies in atopic dermatitis also underway. In addition to the studies underway at Dermavant, we expect at least four other programs will enter Phase 2 or Phase 3 trials in 2022, and we are
excited to continue advancing our protein degrader programs towards the clinic, as well.
Quarter Ended September 30, 2021 Financial Summary
As of September 30, 2021, we had cash and cash equivalents of approximately $2.5 billion. The increase from cash and cash equivalents of
approximately $2.0 billion as of June 30, 2021 reflects net cash proceeds of $213.4 million received at the closing of the business combination with MAAC and concurrent PIPE financing, approximately $320 million in cash proceeds
from Datavant s merger with Ciox Health (the Datavant Merger ) and funding of the second $100.0 million payment to Proteovant Sciences under a subscription agreement entered into with SK, Inc. in December 2020.
Research and Development Expenses
Research and development (R&D) expenses were $254.3 million for the three months ended September 30, 2021 compared to $97.4 million for the
three months ended September 30, 2020. The increase was primarily due to an increase in program-specific costs relating to our product candidates, one-time consideration for the purchase of in-process R&D related to an asset acquisition, and an increase in share-based compensation expense due to the achievement of the liquidity event vesting condition for restricted stock units, performance options
and capped value appreciation rights upon the closing of the business combination with MAAC, resulting in the recognition of a one-time catch-up expense of
$22.9 million. Non-GAAP R&D expenses were $103.9 million for the three months ended September 30, 2021 compared to $50.2 million for the three months ended September 30, 2020.
General and Administrative Expenses
administrative (G&A) expenses were $437.8 million for the three months ended September 30, 2021 compared to $59.7 million for the three months ended September 30, 2020. The increase was largely due to an increase in
share-based compensation expense, primarily as a result of the achievement of the liquidity event vesting condition for restricted stock units, performance options and capped value appreciation rights upon the closing of the business combination
with MAAC, resulting in the recognition of a one-time catch-up expense of $350.0 million. Non-GAAP G&A expenses were
$68.6 million for the three months ended September 30, 2021 compared to $47.7 million for the three months ended September 30, 2020.
Gain on Sale of Investment
investment resulted from the Datavant Merger in July 2021. At closing of the Datavant Merger, we received approximately $320 million in cash and a minority equity interest in the combined company, which resulted in a gain of
the three months ended September 30, 2021 was $225.6 million compared to $53.5 million for three months ended September 30, 2020. On a per common share basis, net loss was $0.32 and $0.06 for the three months ended
September 30, 2021 and 2020, respectively. Non-GAAP net loss was $169.2 million for the three months ended September 30, 2021 compared to $96.9 million for the three months ended
ROIVANT SCIENCES LTD.
Selected Balance Sheet Data
(unaudited, in thousands)
| September 30, 2021 | March 31, 2021 | |||||||
| Cash, cash equivalents and restricted cash | $ | 2,509,124 | $ | 2,141,676 | ||||
| Total assets | 3,102,906 | 2,589,692 | ||||||
| Total liabilities | 652,007 | 527,687 | ||||||
| Total shareholders equity | 2,428,408 | 2,039,514 | ||||||
| Total liabilities, redeemable noncontrolling interest and shareholders equity | 3,102,906 | 2,589,692 |
ROIVANT SCIENCES LTD.
Condensed Consolidated Statements of Operations
(unaudited, in thousands, except share and per share amounts)
| 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 | ) | (443,754 | ) | ||||||||||||
| Change in fair value of debt and liability instruments | 13,145 | 10,148 | 17,730 | 27,273 | ||||||||||||
| Gain on termination of Sumitomo Options | (66,472 | ) | ||||||||||||||
| Gain on deconsolidation of subsidiary and consolidation of unconsolidated entity | (28,848 | ) | (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 | $ | (0.32 | ) | $ | (0.06 | ) | $ | (0.45 | ) | $ | (0.06 | ) | ||||
| Weighted average shares outstanding basic and diluted | 650,225,764 | 628,779,048 | 650,041,993 | 628,779,048 |
ROIVANT SCIENCES LTD.
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited, in thousands)
| Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||
| Note | 2021 | 2020 | 2021 | 2020 | ||||||||||||||
| Net loss | $ | (225,640 | ) | $ | (53,498 | ) | $ | (326,718 | ) | $ | (61,475 | ) | ||||||
| Adjustments: | ||||||||||||||||||
| Research and development: | ||||||||||||||||||
| Share-based compensation | (1) | 28,157 | 1,887 | 29,772 | 3,006 | |||||||||||||
| Milestone payments | (2) | 40,054 | 40,165 | 3,216 | ||||||||||||||
| In-process research and development | (3) | 82,107 | 45,339 | 82,107 | 45,339 | |||||||||||||
| General and administrative: | ||||||||||||||||||
| Share-based compensation | (1) | 369,155 | 12,027 | 386,809 | 25,186 | |||||||||||||
| Other: | ||||||||||||||||||
| Gain on sale of investment | (4) | (443,754 | ) | (443,754 | ) | |||||||||||||
| Change in fair value of investments | (5) | (32,273 | ) | (84,297 | ) | (23,654 | ) | (125,445 | ) | |||||||||
| Change in fair value of debt and liability instruments | (6) | 13,145 | 10,148 | 17,730 | 27,273 | |||||||||||||
| Gain on sale of Sumitomo Options | (7) | (66,472 | ) | |||||||||||||||
| Gain on deconsolidation of subsidiary and consolidation of unconsolidated entity | (8) | (28,848 | ) | (115,364 | ) | |||||||||||||
| Estimated income tax impact from adjustments | (9) | (156 | ) | 302 | 60 | 1,511 | ||||||||||||
| Adjusted net loss (Non-GAAP) | $ | (169,205 | ) | $ | (96,940 | ) | $ | (303,955 | ) | $ | (196,753 | ) | ||||||
| Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||
| Note | 2021 | 2020 | 2021 | 2020 | ||||||||||||||
| Research and development expenses | $ | 254,259 | $ | 97,409 | $ | 332,885 | $ | 156,143 | ||||||||||
| Less Adjustments: | ||||||||||||||||||
| Share-based compensation | (1) | 28,157 | 1,887 | 29,772 | 3,006 | |||||||||||||
| Milestone payments | (2) | 40,054 | 40,165 | 3,216 | ||||||||||||||
| In-process research and development | (3) | 82,107 | 45,339 | 82,107 | 45,339 | |||||||||||||
| Adjusted research and development expenses (Non-GAAP) | $ | 103,941 | $ | 50,183 | $ | 180,841 | $ | 104,582 | ||||||||||
| Three Months Ended September 30, | Six Months Ended September 30, | |||||||||||||||||
| Note | 2021 | 2020 | 2021 | 2020 | ||||||||||||||
| General and administrative expenses | $ | 437,776 | $ | 59,740 | $ | 520,530 | $ | 116,855 | ||||||||||
| Less Adjustments: | ||||||||||||||||||
| Share-based compensation | (1) | 369,155 | 12,027 | 386,809 | 25,186 | |||||||||||||
| Adjusted general and administrative expenses (Non-GAAP) | $ | 68,621 | $ | 47,713 | $ | 133,721 | $ | 91,669 |
Notes to non-GAAP measures:
The information presented in this document has been prepared in accordance with U.S. generally accepted
accounting principles ( GAAP ), unless otherwise noted as non-GAAP. Roivant believes that its presentation of non-GAAP financial measures provides useful
supplementary information to and facilitates additional analysis by investors. Management uses certain non-GAAP information internally for its operating, budgeting and financial planning purposes. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of Roivant s operating results as reported under GAAP. Non-GAAP financial information generally excludes (i) non-cash items, including share-based compensation expense and the change in fair value of debt and liability
instruments, (ii) consideration for the purchase of in-process research and development through asset acquisitions and license agreements, including upfront cash payments, the fair value of equity
liability instruments issued, and the fair value of certain future contingent consideration payments, and (iii) other items that are considered unusual or not representative of underlying trends of Roivant s business. Non-GAAP measures may be defined and calculated differently by other companies in the same industry. Reconciliations of the non-GAAP financial measures to the most directly
comparable GAAP financial measures are provided in the tables above.
Investor Conference Call Information
Roivant will host a live conference call and webcast at 8:00 a.m. ET on Monday, November 15, 2021 to report its second quarter 2021 financial results, and
provide a corporate update.
To access the live conference call, please dial +1-844-224-1923 (domestic) or +1-214-989-7105 (international) and use conference
ID 3545615. A webcast of the call will also be available under Events & Presentations in the Investors section of the Roivant website at https://investor.roivant.com/news-events/events. The archived webcast will
be available on Roivant s website after the conference call.
Upcoming Investor Events
About Roivant Sciences
Roivant s mission is to improve the delivery of healthcare to patients by treating every inefficiency as an opportunity. Roivant develops transformative
medicines faster by building technologies and developing talent in creative ways, leveraging the Roivant platform to launch Vants nimble and focused biopharmaceutical and health technology companies. For more information, please
visit www.roivant.com.
Roivant Sciences Forward-Looking Statements
This press release contains forward-looking statements. Statements in this press release may include statements that are not historical facts and are
considered forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act ), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act ),
which are usually identified by the use of words such as anticipate, believe, continue, could, estimate, expect, intends, may, might,
plan, possible, potential, predict, project, should, would and variations of such words or similar expressions. The words may identify forward-looking statements,
but the absence of these words does not mean that a statement is not forward-looking. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the
Securities Act and Section 21E of the Exchange Act.
Our forward-looking statements include, but are not limited to, statements regarding our or our
management team s expectations, hopes, beliefs, intentions or strategies regarding the future, and statements that are not historical facts, including statements about the clinical and therapeutic potential of our product candidates, the
availability and success of topline results from our ongoing clinical trials and any commercial potential of our product candidates. In addition, any statements that refer to projections, forecasts or other characterizations of future events or
circumstances, including any underlying assumptions, are forward-looking statements. All product candidates referenced in this press release are investigational and subject to health authority approval.
Although we believe that our plans, intentions, expectations and strategies as reflected in or suggested by those forward-looking statements are reasonable,
we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a number
of risks, uncertainties and assumptions, including, but not limited to, those risks set forth in the Risk Factors section of our filings with the U.S. Securities and Exchange Commission. Moreover, we operate in a very competitive and rapidly
changing environment in which new risks emerge from time to time. These forward-looking statements are based upon the current expectations and beliefs of our management as of the date of this press release, and are subject to certain risks and
uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Except as required by applicable law, we assume no obligation to update publicly any forward-looking statements, whether as a
result of new information, future events or otherwise.
Roivant Investor Relations