On November 13, 2023, Y-mAbs Therapeutics Inc (YMAB, Financial) released its 8-K filing, announcing third-quarter financial results and recent corporate developments. The company reported a significant increase in net product revenues for its DANYELZA® (naxitamab-gqgk) product, with a 59% year-over-year growth to $20.0 million in Q3 2023. This growth is attributed to the successful penetration of high-volume Children’s Oncology Group (COG) sites and increased traction in Europe and China.
Financial Performance Overview
Y-mAbs Therapeutics Inc (YMAB, Financial) showcased a solid financial performance in the third quarter of 2023. The company's total revenues for the quarter reached $20.5 million, a 63% increase from the same period in 2022. This includes $0.5 million of license revenue recognized from the marketing authorization for DANYELZA in Mexico. The company's cost of goods sold was slightly up at $2.6 million, compared to $2.5 million in Q3 2022, while gross margin saw a marginal decrease due to an increase in lower-margin ex-U.S. revenues.
Research and development expenses decreased by 32% to $15.4 million, reflecting a strategic reduction in spending on deprioritized programs. Selling, general, and administrative expenses also saw a reduction of 25% to $10.2 million, primarily due to decreased commercialization expenses.
Net Loss and Cash Position
The net loss for Q3 2023 was $7.7 million, or ($0.18) per basic and diluted share, a notable improvement from a net loss of $27.5 million, or ($0.63) per basic and diluted share, in Q3 2022. This decrease in net loss is primarily due to increased product revenues and reduced operating costs.
Y-mAbs Therapeutics Inc (YMAB, Financial) reported a strong cash and cash equivalents balance of $86.6 million as of September 30, 2023. The company's prudent financial management has extended its cash runway into 2027, providing a stable foundation for continued operations and development.
Updated Financial Guidance
The company has updated its full-year 2023 financial guidance, reiterating its anticipated DANYELZA net product revenues of between $80 million and $85 million. It has also lowered its anticipated operating expenses to between $110 million and $115 million, down from the previous guidance of between $115 million and $120 million. The anticipated total annual cash burn has been reduced to between $27 million and $32 million, compared to the previous guidance of between $40 million and $50 million.
Corporate Developments and Future Outlook
Y-mAbs Therapeutics Inc (YMAB, Financial) has made significant strides in its corporate development. The appointment of Mr. Rossi as President and CEO, the FDA clearance of the IND for CD38-SADA, and the marketing authorization for DANYELZA in Mexico are key milestones that underline the company's progress. The company's SADA radioimmunotherapy platform continues to advance, with the Phase 1 GD2-SADA trial ongoing and the recent IND clearance for CD38-SADA.
Value investors and potential GuruFocus.com members may find Y-mAbs Therapeutics Inc (YMAB, Financial)'s robust revenue growth, reduced operating expenses, and extended cash runway particularly appealing. The company's strategic focus on its novel SADA radioimmunotherapy platform and the growing commercial success of DANYELZA position it well for potential long-term growth and transformation in cancer treatment.
For further details and to access the full earnings report, please visit the investor relations section of Y-mAbs Therapeutics Inc (YMAB, Financial)'s website at www.ymabs.com. The company will also host a conference call on November 14, 2023, to discuss the quarterly earnings and provide additional insights into its operations and outlook.
Explore the complete 8-K earnings release (here) from Y-mAbs Therapeutics Inc for further details.
