SEC Filing | Global Blood Therapeutics, Inc.

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10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 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 September 30, 2021

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

For the transition period from to

Commission file number: 001-37539

Global Blood Therapeutics, Inc.

(Exact name of registrant as specified in its charter)

Delaware

27-4825712

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

181 Oyster Point Boulevard

South San Francisco, CA 94080

(Address of principal executive offices)

(650) 741-7700

(Registrant’s telephone number, including area code)

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

GBT

The 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, 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 October 29, 2021, there were 64,445,267 shares of the registrant’s Common Stock, par value $0.001 per share, outstanding.

TABLE OF CONTENTS



		Page
PART I. – FINANCIAL INFORMATION		3

Item 1.	Financial Statements	3
	Condensed Consolidated Balance Sheets as of September 30, 2021 (Unaudited) and December 31, 2020	3
	Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three and Nine Months Ended September 30, 2021 and 2020 (Unaudited)	4
	Condensed Consolidated Statements of Stockholders’ Equity for the Three and Nine Months Ended September 30, 2021 and 2020 (Unaudited)	5
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2021 and 2020 (Unaudited)	7
	Notes to Unaudited Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26
Item 4.	Controls and Procedures	26

PART II. – OTHER INFORMATION		26

Item 1.	Legal Proceedings	26
Item 1A.	Risk Factors	26
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	68
Item 3.	Defaults Upon Senior Securities	68
Item 4.	Mine Safety Disclosures	68
Item 5.	Other Information	68
Item 6.	Exhibits	68

SIGNATURES		70

PART I. – FINANCIAL INFORMATION

Item 1. Financial Statements

GLOBAL BLOOD THERAPEUTICS, INC.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share amounts)


	September 30, 2021			December 31, 2020
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	382,869		$	494,766
Short-term marketable securities		3,205			66,126
Accounts receivable, net		23,894			17,500
Inventories		51,512			40,223
Prepaid expenses and other current assets		27,384			13,548
Total current assets		488,864			632,163
Long-term marketable securities		30,692			—
Property and equipment, net		35,415			37,882
Operating lease right-of-use assets		48,732			50,722
Restricted cash		2,451			2,436
Other assets, noncurrent		1,524			799
Total assets	$	607,678		$	724,002
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	8,642		$	19,078
Accrued liabilities		37,297			31,133
Accrued compensation		22,665			23,985
Operating lease liabilities, current		5,454			4,836
Total current liabilities		74,058			79,032
Long-term debt		149,508			148,815
Operating lease liabilities, noncurrent		74,990			79,176
Other liabilities, noncurrent		822			822
Total liabilities		299,378			307,845
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized as of September 30, 2021 (unaudited) and December 31, 2020; no shares issued and outstanding		—			—
Common stock, $0.001 par value, 150,000,000 shares authorized as of September 30, 2021 (unaudited) and December 31, 2020, respectively; 64,387,670 and 61,898,090 shares issued and outstanding as of September 30, 2021 (unaudited) and December 31, 2020, respectively		64			62
Additional paid-in capital		1,509,994			1,402,262
Accumulated other comprehensive loss		221			302
Accumulated deficit		(1,201,979	)		(986,469	)
Total stockholders’ equity		308,300			416,157
Total liabilities and stockholders’ equity	$	607,678		$	724,002

See accompanying notes to unaudited condensed consolidated financial statements.

GLOBAL BLOOD THERAPEUTICS, INC.

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

(In thousands, except share and per share amounts)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
Product sales, net	$	52,052		$	36,889		$	138,650		$	82,508
Costs and operating expenses:
Cost of sales		830			513			2,162			1,025
Research and development		50,529			40,196			153,170			114,054
Selling, general and administrative		67,987			54,491			188,046			151,227
Total costs and operating expenses		119,346			95,200			343,378			266,306
Loss from operations		(67,294	)		(58,311	)		(204,728	)		(183,798	)
Other income (expense):
Interest income		85			881			578			5,251
Interest expense		(3,709	)		(2,291	)		(11,075	)		(6,887	)
Other expenses, net		(70	)		(160	)		(285	)		(313	)
Total other income (expense), net		(3,694	)		(1,570	)		(10,782	)		(1,949	)
Net loss		(70,988	)		(59,881	)		(215,510	)		(185,747	)
Other comprehensive loss:
Net unrealized gain on marketable securities, net of tax		(42	)		(507	)		(301	)		(35	)
Cumulative translation adjustment		(39	)		—			220			—
Comprehensive loss	$	(71,069	)	$	(60,388	)	$	(215,591	)	$	(185,782	)
Basic and diluted net loss per common share	$	(1.13	)	$	(0.97	)	$	(3.45	)	$	(3.04	)
Weighted-average number of shares used in computing basic and diluted net loss per common share		62,925,081			61,573,877			62,449,207			61,160,984

See accompanying notes to unaudited condensed consolidated financial statements.

GLOBAL BLOOD THERAPEUTICS, INC.

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)

(In thousands, except share amounts)


								Accumulated
					Additional			Other						Total
	Common Stock				Paid-			Comprehensive			Accumulated			Stockholders'
	Shares		Amount		In Capital			Income			Deficit			Equity
Balance at December 31, 2020		61,898,090	$	62	$	1,402,262		$	302		$	(986,469	)	$	416,157
Issuance of common stock upon exercise of stock options		47,763		—		1,110			—			—			1,110
Issuance of common stock upon vesting of restricted share units, net of shares withheld for employee taxes		229,087		—		(1,897	)		—			—			(1,897	)
Issuance of common stock pursuant to ESPP purchases		65,110		—		2,558			—			—			2,558
Stock-based compensation		—		—		20,378			—			—			20,378
Net unrealized gain on marketable securities		—		—		—			(181	)		—			(181	)
Net loss		—		—		—			—			(74,930	)		(74,930	)
Balance at March 31, 2021		62,240,050	$	62	$	1,424,411		$	121		$	(1,061,399	)	$	363,195
Issuance of common stock upon exercise of stock options		28,575		—		403			—			—			403
Issuance of common stock upon vesting of restricted share units, net of shares withheld for employee taxes		110,493		—		(65	)		—			—			(65	)
Stock-based compensation		—		—		21,644			—			—			21,644
Net unrealized loss on marketable securities		—		—		—			(78	)		—			(78	)
Cumulative translation adjustment		—		—		—			259			—			259
Net loss		—		—		—			—			(69,592	)		(69,592	)
Balance at June 30, 2021		62,379,118	$	62	$	1,446,393		$	302		$	(1,130,991	)	$	315,766
Issuance of common stock upon exercise of stock options		21,553		—		429			—			—			429
Issuance of common stock upon vesting of restricted share units, net of shares withheld for employee taxes		315,627		—		(1,094	)		—			—			(1,094	)
Issuance of common stock pursuant to ESPP purchases		69,488		—		1,695			—			—			1,695
Issuance of common stock upon at-the-market financing		1,601,884		2		44,071			—			—			44,073
Stock-based compensation		—		—		18,500			—			—			18,500
Net unrealized loss on marketable securities		—		—		—			(42	)		—			(42	)
Cumulative translation adjustment		—		—		—			(39	)		—			(39	)
Net loss		—		—		—			—			(70,988	)		(70,988	)
Balance at September 30, 2021		64,387,670	$	64	$	1,509,994		$	221		$	(1,201,979	)	$	308,300


								Accumulated
					Additional			Other						Total
	Common Stock				Paid-			Comprehensive			Accumulated			Stockholders'
	Shares		Amount		In Capital			Income			Deficit			Equity
Balance at December 31, 2019		60,644,380	$	61	$	1,316,795		$	754		$	(738,916	)	$	578,694
Issuance of common stock upon exercise of stock options		33,937		—		967			—			—			967
Issuance of common stock upon vesting of restricted share units, net of shares withheld for employee taxes		160,594		—		(2,099	)		—			—			(2,099	)
Issuance of common stock pursuant to ESPP purchases		47,460		—		1,870			—			—			1,870
Stock-based compensation		—		—		16,705			—			—			16,705
Net unrealized gain on marketable securities		—		—		—			461			—			461
Net loss		—		—		—			—			(73,026	)		(73,026	)
Balance at March 31, 2020		60,886,371	$	61	$	1,334,238		$	1,215		$	(811,942	)	$	523,572
Issuance of common stock upon exercise of stock options		334,454		—		8,018			—			—			8,018
Issuance of common stock upon vesting of restricted share units, net of shares withheld for employee taxes		110,162		—		(74	)		—			—			(74	)
Stock-based compensation		—		—		17,128			—			—			17,128
Net unrealized gain on marketable securities		—		—		—			12			—			12
Net loss		—		—		—			—			(52,840	)		(52,840	)
Balance at June 30, 2020		61,330,987	$	61	$	1,359,310		$	1,227		$	(864,782	)	$	495,816
Issuance of common stock upon exercise of stock options		121,619		—		3,312			—			—			3,312
Issuance of common stock upon vesting of restricted share units, net of shares withheld for employee taxes		253,447		—		(2,990	)		—			—			(2,990	)
Issuance of common stock pursuant to ESPP purchases		50,605		—		2,266			—			—			2,266
Stock-based compensation		—		—		19,639			—			—			19,639
Net unrealized loss on marketable securities		—		—		—			(507	)		—			(507	)
Net loss		—		—		—