cnst-10q_20200930.htm
false Q3 CONSTELLATION PHARMACEUTICALS INC 0001434418 --12-31 The Company paid a fee of $0.3 million upon closing and is required to pay a fee of 6.35% of the aggregate amount of advances under the Loan Agreement at maturity. us-gaap:RetirementPlanNameOtherMember 0 0 P10Y P10Y P10Y P8Y4M20D P8Y2M15D P8Y2M15D P7Y5M23D P6Y1M9D P6Y1M6D P6Y14D P6Y10D 0001434418 2020-01-01 2020-09-30 xbrli:shares 0001434418 2020-10-23 iso4217:USD 0001434418 2020-09-30 0001434418 2019-12-31 iso4217:USD xbrli:shares 0001434418 2020-07-01 2020-09-30 0001434418 2019-07-01 2019-09-30 0001434418 2019-01-01 2019-09-30 0001434418 us-gaap:CommonStockMember 2019-12-31 0001434418 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001434418 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001434418 us-gaap:RetainedEarningsMember 2019-12-31 0001434418 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0001434418 2020-01-01 2020-03-31 0001434418 us-gaap:CommonStockMember 2020-01-01 2020-03-31 0001434418 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-03-31 0001434418 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0001434418 us-gaap:CommonStockMember 2020-03-31 0001434418 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0001434418 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0001434418 us-gaap:RetainedEarningsMember 2020-03-31 0001434418 2020-03-31 0001434418 us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0001434418 2020-04-01 2020-06-30 0001434418 us-gaap:CommonStockMember us-gaap:IPOMember 2020-04-01 2020-06-30 0001434418 us-gaap:AdditionalPaidInCapitalMember us-gaap:IPOMember 2020-04-01 2020-06-30 0001434418 us-gaap:IPOMember 2020-04-01 2020-06-30 0001434418 us-gaap:CommonStockMember 2020-04-01 2020-06-30 0001434418 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0001434418 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0001434418 us-gaap:CommonStockMember 2020-06-30 0001434418 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0001434418 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0001434418 us-gaap:RetainedEarningsMember 2020-06-30 0001434418 2020-06-30 0001434418 us-gaap:AdditionalPaidInCapitalMember 2020-07-01 2020-09-30 0001434418 us-gaap:CommonStockMember 2020-07-01 2020-09-30 0001434418 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-07-01 2020-09-30 0001434418 us-gaap:RetainedEarningsMember 2020-07-01 2020-09-30 0001434418 us-gaap:CommonStockMember 2020-09-30 0001434418 us-gaap:AdditionalPaidInCapitalMember 2020-09-30 0001434418 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-09-30 0001434418 us-gaap:RetainedEarningsMember 2020-09-30 0001434418 us-gaap:CommonStockMember 2018-12-31 0001434418 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001434418 us-gaap:RetainedEarningsMember 2018-12-31 0001434418 2018-12-31 0001434418 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0001434418 2019-01-01 2019-03-31 0001434418 us-gaap:CommonStockMember 2019-01-01 2019-03-31 0001434418 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-03-31 0001434418 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0001434418 us-gaap:CommonStockMember 2019-03-31 0001434418 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001434418 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 0001434418 us-gaap:RetainedEarningsMember 2019-03-31 0001434418 2019-03-31 0001434418 us-gaap:AdditionalPaidInCapitalMember 2019-04-01 2019-06-30 0001434418 2019-04-01 2019-06-30 0001434418 us-gaap:CommonStockMember 2019-04-01 2019-06-30 0001434418 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01 2019-06-30 0001434418 us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0001434418 us-gaap:CommonStockMember 2019-06-30 0001434418 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001434418 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 0001434418 us-gaap:RetainedEarningsMember 2019-06-30 0001434418 2019-06-30 0001434418 us-gaap:CommonStockMember cnst:AtMarketOfferingMember 2019-07-01 2019-09-30 0001434418 us-gaap:AdditionalPaidInCapitalMember cnst:AtMarketOfferingMember 2019-07-01 2019-09-30 0001434418 cnst:AtMarketOfferingMember 2019-07-01 2019-09-30 0001434418 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0001434418 us-gaap:CommonStockMember 2019-07-01 2019-09-30 0001434418 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-01 2019-09-30 0001434418 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-30 0001434418 us-gaap:CommonStockMember 2019-09-30 0001434418 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0001434418 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-30 0001434418 us-gaap:RetainedEarningsMember 2019-09-30 0001434418 2019-09-30 0001434418 us-gaap:CommonStockMember 2020-06-19 2020-06-19 0001434418 2019-01-01 2019-12-31 xbrli:pure 0001434418 srt:MaximumMember 2020-01-01 2020-09-30 0001434418 us-gaap:LetterOfCreditMember 2020-09-30 0001434418 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member 2020-09-30 0001434418 us-gaap:MoneyMarketFundsMember 2020-09-30 0001434418 us-gaap:FairValueInputsLevel1Member 2020-09-30 0001434418 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2020-09-30 0001434418 us-gaap:CorporateDebtSecuritiesMember 2020-09-30 0001434418 us-gaap:FairValueInputsLevel2Member us-gaap:CommercialPaperMember 2020-09-30 0001434418 us-gaap:CommercialPaperMember 2020-09-30 0001434418 us-gaap:FairValueInputsLevel2Member us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember 2020-09-30 0001434418 us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember 2020-09-30 0001434418 us-gaap:FairValueInputsLevel2Member 2020-09-30 0001434418 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member 2019-12-31 0001434418 us-gaap:MoneyMarketFundsMember 2019-12-31 0001434418 us-gaap:FairValueInputsLevel2Member us-gaap:CommercialPaperMember 2019-12-31 0001434418 us-gaap:CommercialPaperMember 2019-12-31 0001434418 us-gaap:CorporateDebtSecuritiesMember us-gaap:FairValueInputsLevel2Member 2019-12-31 0001434418 us-gaap:CorporateDebtSecuritiesMember 2019-12-31 0001434418 us-gaap:FairValueInputsLevel2Member cnst:ReverseRepurchaseAgreementsRRAsMember 2019-12-31 0001434418 cnst:ReverseRepurchaseAgreementsRRAsMember 2019-12-31 0001434418 us-gaap:FairValueInputsLevel1Member 2019-12-31 0001434418 us-gaap:FairValueInputsLevel2Member 2019-12-31 0001434418 us-gaap:FairValueInputsLevel2Member us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember 2019-12-31 0001434418 us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember 2019-12-31 0001434418 us-gaap:MoneyMarketFundsMember 2020-09-30 0001434418 us-gaap:CashAndCashEquivalentsMember 2020-09-30 0001434418 us-gaap:CorporateDebtSecuritiesMember 2020-09-30 0001434418 us-gaap:CommercialPaperMember 2020-09-30 0001434418 us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2020-09-30 0001434418 cnst:MarketableSecuritiesMember 2020-09-30 0001434418 us-gaap:MoneyMarketFundsMember 2019-12-31 0001434418 us-gaap:CorporateDebtSecuritiesMember 2019-12-31 0001434418 cnst:ReverseRepurchaseAgreementsMember 2019-12-31 0001434418 us-gaap:CashAndCashEquivalentsMember 2019-12-31 0001434418 us-gaap:CorporateDebtSecuritiesMember 2019-12-31 0001434418 us-gaap:CommercialPaperMember 2019-12-31 0001434418 us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-12-31 0001434418 cnst:MarketableSecuritiesMember 2019-12-31 0001434418 cnst:LLSAgreementMember 2020-01-01 2020-09-30 0001434418 cnst:LLSAgreementMember 2019-01-01 2019-12-31 0001434418 cnst:LoanAgreementMember srt:MaximumMember 2019-03-20 0001434418 cnst:LoanAgreementMember 2020-09-30 0001434418 cnst:LoanAgreementMember 2019-03-19 2019-03-20 0001434418 srt:MaximumMember cnst:AtMarketOfferingMember 2020-01-01 2020-09-30 0001434418 us-gaap:CommonStockMember cnst:AtMarketOfferingMember 2020-01-01 2020-09-30 0001434418 us-gaap:CommonStockMember cnst:AtMarketOfferingMember 2020-09-30 0001434418 2020-06-19 2020-06-19 0001434418 cnst:WarrantOneMember us-gaap:CommonStockMember 2020-01-01 2020-09-30 0001434418 cnst:WarrantTwoMember us-gaap:CommonStockMember 2020-01-01 2020-09-30 0001434418 cnst:WarrantThreeMember us-gaap:CommonStockMember 2020-01-01 2020-09-30 0001434418 cnst:WarrantOneMember us-gaap:CommonStockMember 2020-09-30 0001434418 cnst:WarrantTwoMember us-gaap:CommonStockMember 2020-09-30 0001434418 cnst:WarrantThreeMember us-gaap:CommonStockMember 2020-09-30 0001434418 us-gaap:CommonStockMember 2020-09-30 0001434418 cnst:TwoThousandEighteenEquityIncentivePlanMember 2018-06-30 0001434418 cnst:TwoThousandEighteenEquityIncentivePlanMember srt:MaximumMember 2018-06-30 0001434418 cnst:TwoThousandEighteenEquityIncentivePlanMember srt:MaximumMember 2018-06-01 2018-06-30 0001434418 cnst:TwoThousandEighteenEquityIncentivePlanMember 2020-09-30 0001434418 cnst:TwoThousandEighteenEquityIncentivePlanMember 2020-01-01 2020-01-31 0001434418 cnst:TwoThousandEighteenEmployeeStockPurchasePlanMember 2018-06-30 0001434418 srt:MaximumMember cnst:TwoThousandEighteenEmployeeStockPurchasePlanMember 2018-06-30 0001434418 srt:MaximumMember cnst:TwoThousandEighteenEmployeeStockPurchasePlanMember 2018-06-01 2018-06-30 0001434418 cnst:TwoThousandEighteenEmployeeStockPurchasePlanMember 2020-01-01 2020-01-31 0001434418 cnst:TwoThousandEighteenEmployeeStockPurchasePlanMember 2020-09-30 0001434418 us-gaap:EmployeeStockOptionMember 2019-12-31 0001434418 us-gaap:EmployeeStockOptionMember 2020-01-01 2020-09-30 0001434418 us-gaap:EmployeeStockOptionMember 2020-09-30 0001434418 us-gaap:EmployeeStockOptionMember 2019-01-01 2019-12-31 0001434418 us-gaap:ValuationTechniqueOptionPricingModelMember 2020-07-01 2020-09-30 0001434418 us-gaap:ValuationTechniqueOptionPricingModelMember 2019-07-01 2019-09-30 0001434418 us-gaap:ValuationTechniqueOptionPricingModelMember 2020-01-01 2020-09-30 0001434418 us-gaap:ValuationTechniqueOptionPricingModelMember 2019-01-01 2019-09-30 0001434418 us-gaap:ResearchAndDevelopmentExpenseMember 2020-07-01 2020-09-30 0001434418 us-gaap:ResearchAndDevelopmentExpenseMember 2019-07-01 2019-09-30 0001434418 us-gaap:ResearchAndDevelopmentExpenseMember 2020-01-01 2020-09-30 0001434418 us-gaap:ResearchAndDevelopmentExpenseMember 2019-01-01 2019-09-30 0001434418 us-gaap:GeneralAndAdministrativeExpenseMember 2020-07-01 2020-09-30 0001434418 us-gaap:GeneralAndAdministrativeExpenseMember 2019-07-01 2019-09-30 0001434418 us-gaap:GeneralAndAdministrativeExpenseMember 2020-01-01 2020-09-30 0001434418 us-gaap:GeneralAndAdministrativeExpenseMember 2019-01-01 2019-09-30 utr:sqft 0001434418 cnst:TwoThousandNineteenSubleaseMember 2019-06-30 0001434418 cnst:TwoThousandNineteenSubleaseMember 2020-06-19 2020-06-19 0001434418 cnst:TwoThousandNineteenSubleaseMember 2019-06-01 2019-06-30 0001434418 cnst:WarrantsForPurchaseOfCommonStockMember 2020-01-01 2020-09-30 0001434418 cnst:WarrantsForPurchaseOfCommonStockMember 2019-01-01 2019-09-30 0001434418 cnst:OptionsToPurchaseCommonSharesMember 2020-01-01 2020-09-30 0001434418 cnst:OptionsToPurchaseCommonSharesMember 2019-01-01 2019-09-30

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 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, 2020

OR

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: 001-38584

 

CONSTELLATION PHARMACEUTICALS, INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware

26-1741721

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification Number)

 

 

215 First Street, Suite 200

Cambridge, Massachusetts

02142

(Address of principal executive offices)

(Zip code)

(617714-0555

(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, $0.0001 par value per share

 

CNST

 

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, 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 October 23, 2020, the registrant had 47,575,521 shares of common stock, $0.0001 par value per share, outstanding.

 

 


FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements, which reflect our current views with respect to, among other things, our operations and financial performance. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plan, objectives of management and expected market growth are forward-looking statements. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include but are not limited to those described under “Risk Factors” and include, among other things:

 

our ongoing clinical trials, including our Phase 2 clinical trial of CPI-0610, MANIFEST, our Phase 1b/2 clinical trial of CPI-1205 and our Phase 1/2 clinical trial of CPI-0209;

 

our plans to advance our clinical-stage product candidates into later stage trials, including our plans to conduct a Phase 3 trial of CPI-0610, MANIFEST-2;

 

the initiation, timing, progress and results of our current and future preclinical studies and clinical trials and our research and development programs;

 

our plans to develop and, if approved, subsequently commercialize CPI-0610, CPI-0209 and any other product candidates, including in combination with other drugs and therapies;

 

the timing of and our ability to submit applications for, obtain and maintain regulatory approvals for CPI-0610, CPI-0209 and other product candidates;

 

our expectations regarding our ability to fund our operating expenses and capital expenditure requirements with our cash, cash equivalents and marketable securities;

 

the potential advantages of our product candidates;

 

our estimates regarding the potential market opportunity for our product candidates;

 

our manufacturing, commercialization and marketing capabilities and strategy;

 

our intellectual property position;

 

our ability to identify products, product candidates or technologies with significant commercial potential that are consistent with our commercial objectives;

 

our estimates regarding expenses, future revenue, timing of any future revenue, capital requirements and needs for additional financing;

 

the impact of government laws and regulations;

 

our competitive position;

 

developments relating to our competitors and our industry;

 

our ability to maintain and establish collaborations or obtain additional funding; and

 

the impact of the COVID-19 pandemic on our ability to enroll and monitor patients in our clinical trials, collect data, secure needed supplies, initiate new clinical trials, meet our current milestones and timeline, and continue to successfully execute on our plans and operations.

We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. We have included important factors in the cautionary statements included in this Quarterly Report on Form 10-Q, particularly in the “Risk Factors” section, that we believe could cause actual results or events to differ materially from the forward-looking statements that we make. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, collaborations, joint ventures or investments we may make or enter into.

You should read this Quarterly Report on Form 10-Q and the documents that we have filed as exhibits to this Quarterly Report on Form 10-Q completely and with the understanding that our actual future results may be materially different from what we expect. The forward-looking statements contained in this Quarterly Report on Form 10-Q are made as of the date of this Quarterly Report on Form 10-Q, and we do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

2


Constellation Pharmaceuticals, Inc.

Table of Contents

 

 

 

 

 

Page

 

 

PART I – FINANCIAL INFORMATION

 

 

 

 

 

 

 

Item 1.

 

Condensed Consolidated Financial Statements (Unaudited)

 

4

 

 

Condensed Consolidated Balance Sheets (Unaudited) as of September 30, 2020 and December 31, 2019

 

4

 

 

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) For the Three and Nine Months Ended September 30, 2020 and 2019

 

5

 

 

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) For the Three and Nine Months Ended September 30, 2020 and 2019

                  

6

 

 

Condensed Consolidated Statements of Cash Flows (Unaudited) For the Nine Months Ended September 30, 2020 and 2019

 

8

 

 

Notes to Unaudited Condensed Consolidated Financial Statements

 

9

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

19

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

30

Item 4.

 

Controls and Procedures

 

30

 

 

 

 

 

 

 

PART II – OTHER INFORMATION

 

 

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

32

Item 1A.

 

Risk Factors

 

32

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

72

Item 6.

 

Exhibits

 

73

 

 

 

 

 

Signatures

 

74

 

 

3


PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

CONSTELLATION PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and per share amounts)

(Unaudited)

 

 

 

September 30, 2020

 

 

December 31, 2019

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

116,996

 

 

$

334,332

 

Marketable securities

 

 

372,358

 

 

 

49,602

 

Prepaid expenses and other current assets

 

 

5,112

 

 

 

3,055

 

Total current assets

 

 

494,466

 

 

 

386,989

 

Property and equipment, net

 

 

1,395

 

 

 

971

 

Restricted cash

 

 

425

 

 

 

425

 

Operating lease, right-of-use assets

 

 

8,710

 

 

 

10,745

 

Other assets

 

 

453

 

 

 

 

Total assets

 

$

505,449

 

 

$

399,130

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

5,371

 

 

$

7,278

 

Accrued expenses and other current liabilities

 

 

17,190

 

 

 

12,915

 

Current portion of long-term debt, net of discount

 

 

5,670

 

 

 

 

Current portion of lease liabilities - operating lease

 

 

3,043

 

 

 

2,562

 

Total current liabilities

 

 

31,274

 

 

 

22,755

 

Long-term debt, net of current portion and discount

 

 

24,088

 

 

 

29,642

 

Operating lease liabilities, net of current portion

 

 

6,438

 

 

 

8,759

 

Other long-term liabilities

 

 

879

 

 

 

390

 

Total liabilities

 

 

62,679

 

 

 

61,546

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued

   or outstanding at September 30, 2020 and December 31, 2019, respectively

 

 

 

 

 

 

Common stock, $0.0001 par value; 200,000,000 shares authorized

   at September 30, 2020 and December 31, 2019, respectively; 47,573,249

   and 41,719,039 shares issued and outstanding at September 30, 2020 and

   December 31, 2019, respectively

 

 

5

 

 

 

4

 

Additional paid-in capital

 

 

850,991

 

 

 

656,973

 

Accumulated other comprehensive gain (loss)

 

 

134

 

 

 

(6

)

Accumulated deficit

 

 

(408,360

)

 

 

(319,387

)

Total stockholders' equity

 

 

442,770

 

 

 

337,584

 

Total liabilities and stockholders' equity

 

$

505,449

 

 

$

399,130

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

4


CONSTELLATION PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In thousands, except share and per share amounts)

(Unaudited)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

$

25,443

 

 

$

16,241

 

 

$

68,145

 

 

$

47,873

 

General and administrative

 

 

7,935

 

 

 

4,810

 

 

 

20,803

 

 

 

14,125

 

Total operating expenses

 

 

33,378

 

 

 

21,051

 

 

 

88,948

 

 

 

61,998

 

Loss from operations

 

 

(33,378

)

 

 

(21,051

)

 

 

(88,948

)

 

 

(61,998

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

459

 

 

 

507

 

 

 

2,549

 

 

 

1,914

 

Gain on disposal of equipment

 

 

 

 

 

 

 

 

29

 

 

 

 

Interest expense

 

 

(857

)

 

 

(605

)

 

 

(2,564

)

 

 

(1,258

)

Total other income (expense), net

 

 

(398

)

 

 

(98

)

 

 

14

 

 

 

656

 

Loss before income taxes

 

 

(33,776

)

 

 

(21,149

)

 

 

(88,934

)

 

 

(61,342

)

Income tax expense

 

 

 

 

 

 

 

 

39

 

 

 

 

Net loss

 

$

(33,776

)

 

$

(21,149

)

 

$

(88,973

)

 

$

(61,342

)

Net loss per share attributable to common stockholders, basic

   and diluted

 

$

(0.71

)

 

$

(0.82

)

 

$

(2.02

)

 

$

(2.38

)

Weighted average number of common shares used in net loss

   per share attributable to common stockholders, basic

   and diluted

 

 

47,534,964

 

 

 

25,829,105

 

 

 

43,976,371

 

 

 

25,814,593

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(33,776

)

 

$

(21,149

)

 

$

(88,973

)

 

$

(61,342

)

Other comprehensive gain (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain (loss) on marketable securities

 

 

(121

)

 

 

(10

)

 

 

140

 

 

 

1

 

Total other comprehensive gain (loss)

 

$

(121

)

 

$

(10

)

 

$

140

 

 

$

1

 

Comprehensive loss

 

$

(33,897

)

 

$

(21,159

)

 

$

(88,833

)

 

$

(61,341

)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5


CONSTELLATION PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands, except share and per share amounts)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

 

 

 

Total

 

 

 

Common Stock

 

 

Paid-in

 

 

Comprehensive

 

 

Accumulated

 

 

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Gain (Loss)

 

 

Deficit

 

 

 

 

Equity

 

Balances at December 31, 2019

 

 

41,719,039

 

 

$

4

 

 

$

656,973

 

 

$

(6

)

 

$

(319,387

)

 

 

 

$

337,584

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

2,559

 

 

 

 

 

 

 

 

 

 

 

2,559

 

Stock option exercises

 

 

103,025

 

 

 

 

 

 

911

 

 

 

 

 

 

 

 

 

 

 

911

 

Unrealized loss on marketable securities

 

 

 

 

 

 

 

 

 

 

 

(84

)

 

 

 

 

 

 

 

(84

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(25,444

)

 

 

 

 

(25,444

)

Balances at March 31, 2020

 

 

41,822,064

 

 

$

4

 

 

$

660,443

 

 

$

(90

)

 

$

(344,831

)

 

 

 

$

315,526

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

3,635

 

 

 

 

 

 

 

 

 

 

 

3,635

 

Issuance of common stock from public offering, net

   of underwriting discounts and commissions

 

 

5,500,000

 

 

 

1

 

 

 

180,726

 

 

 

 

 

 

 

 

 

 

 

180,727

 

Stock option exercises

 

 

177,968

 

 

 

 

 

 

1,501

 

 

 

 

 

 

 

 

 

 

 

1,501

 

Unrealized gain on marketable securities

 

 

 

 

 

 

 

 

 

 

 

345

 

 

 

 

 

 

 

 

345

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(29,753

)

 

 

 

 

(29,753

)

Balances at June 30, 2020

 

 

47,500,032

 

 

$

5

 

 

$

846,305

 

 

$

255

 

 

$

(374,584

)

 

 

 

$

471,981

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

4,219

 

 

 

 

 

 

 

 

 

 

 

4,219

 

Stock option exercises

 

 

73,217

 

 

 

 

 

 

467

 

 

 

 

 

 

 

 

 

 

 

467

 

Unrealized loss on marketable securities

 

 

 

 

 

 

 

 

 

 

 

(121

)

 

 

 

 

 

 

 

(121

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(33,776

)

 

 

 

 

(33,776

)

Balances at September 30, 2020

 

 

47,573,249

 

 

$

5

 

 

$

850,991

 

 

$

134

 

 

$

(408,360

)

 

 

 

$

442,770

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6


CONSTELLATION PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (CONTINUED)

(In thousands, except share and per share amounts)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

 

 

 

Total

 

 

 

Common Stock

 

 

Paid-in

 

 

Comprehensive

 

 

Accumulated

 

 

 

 

Stockholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Gain

 

 

Deficit

 

 

 

 

Equity

 

Balances at December 31, 2018

 

 

25,803,135

 

 

$

3

 

 

$

337,992

 

 

$

 

 

$

(233,837

)

 

 

 

$

104,158

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

1,313

 

 

 

 

 

 

 

 

 

 

 

1,313

 

Vesting of common stock issued upon early

   exercise of unvested options

 

 

85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock option exercises

 

 

3,754

 

 

 

 

 

 

21

 

 

 

 

 

 

 

 

 

 

 

21

 

Unrealized gain on marketable securities

 

 

 

 

 

 

 

 

 

 

 

9

 

 

 

 

 

 

 

 

9

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(19,426

)

 

 

 

 

(19,426

)

Balances at March 31, 2019

 

 

25,806,974

 

 

$

3

 

 

$

339,326

 

 

$

9

 

 

$

(253,263

)

 

 

 

$

86,075

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

1,797

 

 

 

 

 

 

 

 

 

 

 

1,797

 

Vesting of common stock issued upon early

   exercise of unvested options

 

 

85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock option exercises

 

 

12,364

 

 

 

 

 

 

77

 

 

 

 

 

 

 

 

 

 

 

77

 

Unrealized gain on marketable securities

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

2

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(20,767

)

 

 

 

 

(20,767

)

Balances at June 30, 2019

 

 

25,819,423

 

 

$

3

 

 

$

341,200

 

 

$

11

 

 

$

(274,030

)

 

 

 

$

67,184

 

Issuance of common stock from the Open

   Market Sales Agreement (net of issuance costs,

   $0.2 million)

 

 

39,506

 

 

 

 

 

 

145

 

 

 

 

 

 

 

 

 

 

 

145

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

1,948

 

 

 

 

 

 

 

 

 

 

 

1,948

 

Vesting of common stock issued upon early

   exercise of unvested options

 

 

85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercise of common stock warrant

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock option exercises

 

 

7,533

 

 

 

 

 

 

34

 

 

 

 

 

 

 

 

 

 

 

34

 

Unrealized loss on marketable securities

 

 

 

 

 

 

 

 

 

 

 

(10

)

 

 

 

 

 

 

 

(10

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(21,149

)

 

 

 

 

(21,149

)

Balances at September 30, 2019

 

 

25,866,547

 

 

$

3

 

 

$

343,327

 

 

$

1

 

 

$

(295,179

)

 

 

 

$

48,152

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

7


CONSTELLATION PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(88,973

)

 

$

(61,342

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

 

434

 

 

 

564

 

Stock-based compensation expense

 

 

10,413

 

 

 

5,058

 

Non-cash interest expense