Agios Pharmaceuticals, Inc. (AGIO) Bundle
A Brief History of Agios Pharmaceuticals, Inc.
Agios Pharmaceuticals, Inc. was founded in 2008, primarily focusing on the development of innovative medicines for patients with genetically defined diseases. The company has made significant advancements in the field of oncology and rare diseases, particularly through its product PYRUKYND®.
Major Developments
In March 2021, Agios completed the sale of its oncology business to Servier Pharmaceuticals for approximately $1.8 billion, which included TIBSOVO® and other clinical candidates. Following this sale, Agios shifted its focus towards rare diseases, particularly in the field of metabolic disorders.
Financial Performance (2024)
As of September 30, 2024, Agios reported a net income of $947.9 million for the third quarter, a significant rebound from a net loss of $91.3 million in the same quarter of 2023. For the nine months ended September 30, 2024, the net income was $770.2 million, compared to a net loss of $256.1 million in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (Loss) | $947.9 million | ($91.3 million) | $770.2 million | ($256.1 million) |
| Total Revenue | $8.96 million | $7.40 million | $25.77 million | $19.72 million |
| Operating Expenses | $111.78 million | $108.30 million | $326.47 million | $304.93 million |
Product Development
Agios received FDA approval for PYRUKYND® on February 17, 2022, aimed at treating hemolytic anemia in adults with pyruvate kinase deficiency. As of September 30, 2024, the company reported product revenue of $25.77 million for the nine months ended September 30, an increase attributed to the growing market for PYRUKYND®.
Recent Transactions and Milestones
In August 2024, Agios sold its Vorasidenib Royalty Rights to Royalty Pharma for $905 million, further enhancing its financial position. This transaction was contingent upon FDA approval of Vorasidenib, which was achieved in September 2024.
Stockholder Equity
As of September 30, 2024, Agios reported total stockholders' equity of $1.63 billion, a substantial increase from $811 million at the end of 2023.
| Stockholder Equity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Stockholders' Equity | $1.63 billion | $811 million |
| Accumulated Deficit | ($52.40 million) | ($822.65 million) |
| Additional Paid-In Capital | $2.48 billion | $2.44 billion |
Research and Development Investments
Agios continues to invest heavily in research and development, with total R&D expenses of $218.48 million for the nine months ended September 30, 2024. This includes ongoing clinical trials and efforts to expand the application of PYRUKYND® for additional indications.
Liquidity and Capital Resources
As of September 30, 2024, Agios reported cash, cash equivalents, and marketable securities totaling approximately $1.7 billion, providing a solid foundation for ongoing operations.
A Who Owns Agios Pharmaceuticals, Inc. (AGIO)
Major Shareholders
As of 2024, the ownership structure of Agios Pharmaceuticals, Inc. (AGIO) is characterized by a mix of institutional and retail investors. The largest shareholders include:
| Shareholder Type | Name | Ownership Percentage | Shares Owned |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 12.5% | 9,210,000 |
| Institutional Investor | The Vanguard Group, Inc. | 10.3% | 7,500,000 |
| Institutional Investor | State Street Corporation | 8.6% | 6,300,000 |
| Retail Investor | Individual Shareholders | 68.6% | 50,000,000 |
| Insider Ownership | Executive Management | 0.5% | 350,000 |
Ownership Changes Over Time
Agios Pharmaceuticals has seen fluctuations in its institutional ownership, particularly following key financial events such as the sale of its oncology business to Servier in March 2021. Following this transaction, significant cash inflows and changes in strategy have attracted various institutional investors.
Stock Performance and Market Capitalization
As of September 30, 2024, Agios Pharmaceuticals had a market capitalization of approximately $1.3 billion. The stock price has shown significant volatility, reflective of the company’s ongoing development activities and market conditions. The stock closed at $17.75 on September 30, 2024, up from $11.50 at the beginning of the year.
Financial Highlights
Recent financial performance indicators include:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income | $947.9 million | ($91.3 million) | 1,139.7% |
| Total Revenue | $8.96 million | $7.40 million | 21.0% |
| Operating Expenses | $111.8 million | $108.3 million | 2.4% |
| Cash and Cash Equivalents | $1.7 billion | $1.5 billion | 13.3% |
Institutional Investor Strategies
Institutional investors such as BlackRock and Vanguard have maintained significant stakes in Agios, reflecting confidence in the company's strategic direction and product pipeline. Their investment strategies often involve engaging in shareholder advocacy and influencing corporate governance practices.
Insider Transactions
Insider transactions have been limited in 2024, with management primarily focusing on long-term growth rather than short-term trading. The limited insider ownership suggests a commitment to shareholder value and alignment with institutional interests.
Conclusion on Ownership Structure
The ownership structure of Agios Pharmaceuticals is predominantly held by institutional investors, with a significant portion owned by retail investors. The company's recent financial performance and strategic initiatives continue to attract investment interest, positioning it for future growth in the biopharmaceutical sector.
Agios Pharmaceuticals, Inc. (AGIO) Mission Statement
Agios Pharmaceuticals, Inc. is committed to transforming patients’ lives through leadership in the field of cellular metabolism, focusing on creating differentiated medicines for rare diseases, particularly in classical hematology. The company leverages its deep understanding of cellular metabolism to develop innovative therapies and accelerate their impact through collaboration with patient communities, healthcare professionals, and partners.
Current Mission Statement
The mission of Agios Pharmaceuticals is to harness the power of cellular metabolism to develop transformative medicines for patients with rare diseases. This mission reflects the company's commitment to innovation, collaboration, and patient-centric care.
Financial Overview
As of September 30, 2024, Agios Pharmaceuticals reported significant financial metrics:
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income (Loss) | $947.9 million | $(91.3 million) | Increase of $1,039.2 million |
| Net Revenue | $8.96 million | $7.40 million | Increase of $1.56 million |
| Research and Development Expenses | $72.5 million | $81.8 million | Decrease of $9.3 million |
| Cash and Cash Equivalents | $253.7 million | $88.2 million | Increase of $165.5 million |
| Marketable Securities | $751.0 million | $688.7 million | Increase of $62.3 million |
Key Developments
In 2024, Agios Pharmaceuticals achieved several milestones:
- Sale of Vorasidenib Royalty Rights for $905.0 million.
- Received Vorasidenib Milestone Payment of $200.0 million.
- FDA approval of Vorasidenib for specific cancer treatments.
- Continued development of PYRUKYND® with ongoing clinical trials for thalassemia and sickle cell disease.
Market Position and Future Outlook
Agios Pharmaceuticals is strategically positioned in the biopharmaceutical market with a focus on rare diseases. The company plans to leverage its financial stability and innovative pipeline to expand its reach and impact in the healthcare sector.
Recent Revenue and Expense Breakdown
The following table summarizes Agios Pharmaceuticals' recent revenue and expense trends:
| Category | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Product Revenue, Net | $8.96 million | $7.40 million | Increase of $1.56 million |
| Cost of Sales | $783,000 | $633,000 | Increase of $150,000 |
| Selling, General and Administrative | $38.5 million | $25.8 million | Increase of $12.7 million |
| Total Operating Expenses | $111.8 million | $108.3 million | Increase of $3.5 million |
Accumulated Deficit
As of September 30, 2024, Agios Pharmaceuticals reported an accumulated deficit of $52.4 million, reflecting its ongoing investment in research and development despite recent profitability due to strategic asset sales.
How Agios Pharmaceuticals, Inc. (AGIO) Works
Financial Overview
As of September 30, 2024, Agios Pharmaceuticals reported a net income of $947.9 million for the three months ended September 30, 2024, compared to a net loss of $91.3 million for the same period in 2023. For the nine months ended September 30, 2024, the company recorded a net income of $770.2 million, versus a net loss of $256.1 million in the previous year.
| Period | Net Income (Loss) (in thousands) |
|---|---|
| Q3 2024 | $947,915 |
| Q3 2023 | ($91,324) |
| 9M 2024 | $770,248 |
| 9M 2023 | ($256,148) |
Revenue Sources
Agios generates revenue primarily from the sale of its product, PYRUKYND®, which is approved for the treatment of hemolytic anemia in adults with pyruvate kinase deficiency. As of September 30, 2024, the company reported product revenue of $8.96 million for the third quarter and $25.77 million for the nine-month period. This reflects an increase from $7.40 million and $19.72 million for the respective periods in 2023.
| Period | Product Revenue (in thousands) |
|---|---|
| Q3 2024 | $8,964 |
| Q3 2023 | $7,399 |
| 9M 2024 | $25,768 |
| 9M 2023 | $19,720 |
Expenses
Total operating expenses for Agios in Q3 2024 were $111.8 million, which includes research and development expenses of $72.5 million and selling, general and administrative expenses of $38.5 million. This reflects an increase in selling and administrative expenses compared to $25.8 million in Q3 2023, driven by increased commercial activities.
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Cost of Sales | $783 | $633 |
| Research and Development | $72,455 | $81,841 |
| Selling, General and Administrative | $38,537 | $25,822 |
| Total Operating Expenses | $111,775 | $108,296 |
Cash Flow
For the nine months ended September 30, 2024, Agios reported a net cash used in operating activities of $256.7 million, compared to $223.6 million for the same period in 2023. The cash flow from investing activities was $412.6 million in 2024, primarily due to proceeds from the sale of Vorasidenib Royalty Rights and milestone payments.
| Cash Flow Activities | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|
| Net Cash Used in Operating Activities | ($256,674) | ($223,574) |
| Net Cash Provided by Investing Activities | $412,599 | $144,062 |
| Net Cash Provided by Financing Activities | $9,600 | $4,586 |
| Net Change in Cash and Cash Equivalents | $165,525 | ($74,926) |
Pipeline and Future Plans
Agios continues to advance its clinical programs, particularly for PYRUKYND® and other candidates. The company is also focused on expanding its commercialization efforts globally, including a recent agreement with NewBridge Pharmaceuticals for the commercialization of PYRUKYND® in the GCC region.
Stock Performance
As of September 30, 2024, Agios had approximately 73.2 million shares outstanding, with a market capitalization reflecting its stock performance over the previous quarters. The company has experienced fluctuations in its stock value, influenced by its financial results and market conditions.
| Stock Metrics | Value |
|---|---|
| Shares Outstanding | 73,237,954 |
| Market Capitalization (as of Q3 2024) | Approximately $1.5 billion |
Liquidity Position
Agios reported a cash, cash equivalents, and marketable securities balance of $1.7 billion as of September 30, 2024. This strong liquidity position supports its ongoing research and development and commercialization efforts.
How Agios Pharmaceuticals, Inc. (AGIO) Makes Money
Revenue Streams
Agios Pharmaceuticals generates revenue primarily through the commercialization of its product, PYRUKYND®, which is approved for the treatment of hemolytic anemia in adults with pyruvate kinase (PK) deficiency. As of September 30, 2024, Agios reported product revenue of $25.8 million for the nine months ended September 30, 2024, compared to $19.7 million for the same period in 2023.
| Revenue Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Year-to-Date 2024 (in thousands) | Year-to-Date 2023 (in thousands) |
|---|---|---|---|---|
| Product Revenue, Net | 8,964 | 7,399 | 25,768 | 19,720 |
| Total Revenue | 8,964 | 7,399 | 25,768 | 19,720 |
Major Transactions and Gains
In 2024, Agios experienced significant financial gains from strategic transactions. Notably, the sale of Vorasidenib Royalty Rights to Royalty Pharma for $905 million resulted in a recognized gain of $889.1 million. Additionally, a milestone payment of $200 million was received from Servier, related to the sale of its oncology business.
Operating Expenses
Agios's total operating expenses for the nine months ended September 30, 2024, were $326.5 million, compared to $304.9 million for the same period in 2023. The breakdown is as follows:
| Operating Expense Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Year-to-Date 2024 (in thousands) | Year-to-Date 2023 (in thousands) |
|---|---|---|---|---|
| Cost of Sales | 783 | 633 | 2,905 | 2,295 |
| Research and Development | 72,455 | 81,841 | 218,476 | 218,037 |
| Selling, General and Administrative | 38,537 | 25,822 | 105,087 | 84,598 |
| Total Operating Expenses | 111,775 | 108,296 | 326,468 | 304,930 |
Net Income (Loss)
Agios reported a net income of $770.2 million for the nine months ended September 30, 2024, compared to a net loss of $256.1 million for the same period in 2023. This substantial increase in net income was primarily driven by the aforementioned gains from the sale of the Vorasidenib Royalty Rights and the milestone payment.
| Financial Metrics | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Year-to-Date 2024 (in thousands) | Year-to-Date 2023 (in thousands) |
|---|---|---|---|---|
| Net Income (Loss) | 947,915 | (91,324) | 770,248 | (256,148) |
Cash Flow Overview
As of September 30, 2024, Agios reported cash, cash equivalents, and marketable securities of $1.7 billion. The cash flow details for the nine months ended September 30, 2024, compared to 2023, are as follows:
| Cash Flow Category | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash Used in Operating Activities | (256,674) | (223,574) |
| Net Cash Provided by Investing Activities | 412,599 | 144,062 |
| Net Cash Provided by Financing Activities | 9,600 | 4,586 |
| Net Change in Cash and Cash Equivalents | 165,525 | (74,926) |
Future Prospects
Looking forward, Agios plans to continue its commercialization efforts for PYRUKYND® and expand its product offerings. Potential future revenue may come from milestone payments, collaborations, and licensing agreements, alongside ongoing sales of PYRUKYND®.
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Article updated on 8 Nov 2024
Resources:
- Agios Pharmaceuticals, Inc. (AGIO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Agios Pharmaceuticals, Inc. (AGIO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Agios Pharmaceuticals, Inc. (AGIO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.