Mirati Therapeutics, Inc. (MRTX): history, ownership, mission, how it works & makes money

A Brief History of Mirati Therapeutics, Inc.

Company Overview

Mirati Therapeutics, Inc. (NASDAQ: MRTX) is a biotechnology company focused on developing targeted therapies for cancer patients. As of 2024, the company's primary product, KRAZATI (adagrasib), is a treatment for KRAS G12C-mutated cancers.

Financial Performance

For the third quarter of 2023, Mirati reported product revenue of $16.4 million, up from $5.4 million in the same quarter of 2022. Total revenue for the nine months ended September 30, 2023, was $37.3 million, compared to $11.5 million for the same period in 2022.

Operating expenses for Q3 2023 were $188.5 million, leading to a net loss of $161.9 million for the quarter. The accumulated deficit as of September 30, 2023, was approximately $3.0 billion.

Key Developments

In August 2023, Mirati completed a public offering generating net proceeds of $332.5 million. They had $976.4 million in cash, cash equivalents, and short-term investments as of September 30, 2023, down from $1.1 billion at the end of 2022.

The company is also in the process of a proposed merger with Bristol Myers Squibb (BMS), which could significantly impact its financial resources and operational capabilities.

Research and Development Focus

Mirati's R&D expenses for Q3 2023 were $114.8 million, a slight decrease from $131.1 million in Q3 2022. The company continues to invest heavily in late-stage clinical trials for its drug candidates, particularly KRAZATI, which was launched in the U.S. in December 2022.

Market Position and Future Outlook

Mirati Therapeutics is positioned as a key player in the oncology space, particularly in targeting mutations in cancer cells. The approval and commercialization of KRAZATI have marked significant milestones for the company, but ongoing financial losses and the need for additional capital remain pressing challenges.

As of early 2024, the success of the proposed merger with BMS and the continued development of its drug pipeline will be critical for Mirati's future growth and sustainability in the competitive biotech landscape.

A Who Owns Mirati Therapeutics, Inc. (MRTX)

Major Shareholders

As of September 30, 2023, the shareholders and their affiliates owning more than 5% of Mirati Therapeutics, Inc. (MRTX) collectively owned 51.1% of the outstanding common stock.

Institutional Ownership

Institutional investors play a significant role in the ownership structure of Mirati Therapeutics. As of the latest data, institutional ownership stands at approximately 70.3%.

Recent Developments

On October 8, 2023, Mirati Therapeutics announced a merger agreement with Bristol Myers Squibb (BMS). Under this agreement, shareholders will receive cash consideration of $58.00 per share, along with a contingent value right (CVR) of $12.00 based on achieving specific milestones .

The merger is subject to customary closing conditions and is expected to significantly impact the ownership structure of the company .

Stock Performance

As of the end of September 2023, the stock price of Mirati Therapeutics was approximately $27.80 following a public offering . The company has a market capitalization of around $1.95 billion at this price level.

Ownership Dynamics

Boxer Capital and Baker Brothers, as major shareholders, hold significant influence over corporate governance, including the election and removal of directors. Their collective actions could impact strategic decisions, including potential mergers and acquisitions .

The company’s bylaws establish that certain disputes will be resolved in Delaware courts, which may affect shareholder litigation .

Mirati Therapeutics, Inc. (MRTX) Mission Statement

Company Overview

Mirati Therapeutics, Inc. is a commercial-stage oncology company focused on discovering, designing, and delivering breakthrough therapies that address areas of high unmet need, particularly in lung cancer. The company's strategy emphasizes advancing product candidates targeting the genetic and immunological drivers of cancer.

Mission Statement

As of 2024, Mirati Therapeutics aims to:

• Transform Cancer Treatment: Develop innovative therapies that improve patient outcomes.
• Focus on Unmet Needs: Target areas of high unmet medical need in oncology.
• Utilize Cutting-edge Science: Leverage advanced research to create targeted treatments.

Financial Overview

In the third quarter of 2023, Mirati reported:

Product Portfolio

Mirati's lead product, KRAZATI (adagrasib), was approved by the FDA in December 2022 and targets KRAS G12C mutations in non-small cell lung cancer (NSCLC). As of September 30, 2023, the company reported:

Market Position

Mirati operates in a highly competitive oncology market. The company’s strategic focus on genetic mutations allows it to position its products effectively against competitors. As of September 30, 2023, the company's total assets were valued at:

Future Outlook

Mirati is positioned for growth through ongoing clinical trials and the commercialization of its products. With a focus on innovative treatments and a robust pipeline, the company aims to enhance its market presence significantly.

How Mirati Therapeutics, Inc. (MRTX) Works

Company Overview

Mirati Therapeutics, Inc. (MRTX) is a biotechnology company focused on developing innovative therapies for cancer. The company is primarily engaged in the discovery, development, and commercialization of targeted therapeutics for genetically defined cancers.

Financial Performance

As of September 30, 2023, Mirati reported a net loss of $161.9 million for the quarter and $523.4 million for the nine months ended September 30, 2023. This reflects a slight decrease compared to a net loss of $173.6 million and $538.4 million for the same periods in 2022, respectively.

Revenue Generation

Mirati's product revenue, primarily from KRAZATI, was $16.4 million for the three months ended September 30, 2023, and $36.1 million for the nine months ended September 30, 2023. The company recognized $1.3 million and $3.0 million of product revenue from sales to a third-party customer for clinical trials during the same periods.

Expenses

Operating expenses for the three and nine months ended September 30, 2023, were $188.5 million and $590.4 million, respectively. This includes:

• Research and development expenses: $114.8 million (Q3 2023) and $365.6 million (YTD 2023)
• Selling, general and administrative expenses: $72.0 million (Q3 2023) and $221.0 million (YTD 2023)

Research and development expenses decreased from $131.1 million in Q3 2022 to $114.8 million in Q3 2023.

Balance Sheet Highlights

As of September 30, 2023, Mirati had total assets of $1.1 billion, with total liabilities of $183.2 million and total shareholders' equity of $946.5 million.

Funding and Liquidity

Mirati's liquidity position as of September 30, 2023, included $976.4 million in cash, cash equivalents, and short-term investments, down from $1.1 billion at the end of 2022. The company completed a public offering in August 2023, generating net proceeds of $332.5 million.

Research and Development Pipeline

Mirati's pipeline includes several clinical programs, with a focus on targeted therapies for cancer. The company has made significant investments in research and development, reflecting its commitment to advancing its clinical programs.

Recent Developments

On October 8, 2023, Mirati announced a merger agreement with Bristol-Myers Squibb (BMS), with the transaction expected to close subject to customary conditions. The closing consideration for shareholders is set at $58.00 per share, plus contingent value rights.

How Mirati Therapeutics, Inc. (MRTX) Makes Money

Product Revenue

Mirati Therapeutics generates product revenue primarily through the sale of its FDA-approved drug, KRAZATI, which was launched commercially in December 2022. For the three months ended September 30, 2023, the company reported product revenue, net of $16.4 million. For the nine months ended September 30, 2023, the total product revenue was $36.1 million.

Cost of Product Revenue

The cost associated with generating product revenue includes manufacturing and distribution costs, as well as royalties owed to collaborative partners. In Q3 2023, the cost of product revenue was $1.4 million, resulting in a gross profit of $15 million for the quarter. The total cost of product revenue for the nine months ended September 30, 2023, was $3.0 million.

License and Collaboration Revenue

Mirati also earns revenue through license and collaboration agreements. For the nine months ended September 30, 2023, the company reported license and collaboration revenue of $1.2 million, down from $11.5 million in the same period in 2022. This decrease was primarily due to the absence of milestone payments during the current reporting period.

Research and Development Expenses

Research and development (R&D) expenses are a significant portion of Mirati's operational costs. For the three months ended September 30, 2023, R&D expenses amounted to $114.8 million, compared to $131.1 million in the same quarter of 2022. For the nine months ended September 30, 2023, R&D expenses totaled $365.6 million, down from $390.4 million in the comparable period of 2022.

Selling, General and Administrative Expenses

For the same periods, selling, general, and administrative (SG&A) expenses were $72.0 million for Q3 2023 and $221.0 million for the nine months ended September 30, 2023, reflecting an increase from $60.8 million and $169.0 million in the respective periods of 2022. The increase is attributed to higher headcount-related costs and expenses associated with the commercialization of KRAZATI.

Net Loss

Mirati reported a net loss of $161.9 million for Q3 2023, compared to a net loss of $173.6 million for Q3 2022. For the nine months ended September 30, 2023, the net loss was $523.4 million, a slight improvement from $538.4 million in the same period of the previous year.

Funding and Capital Structure

In August 2023, Mirati raised $332.5 million through the issuance of 11,288,336 shares of common stock at a public offering price of $27.80 per share. As of September 30, 2023, the company had total shareholders' equity of $946.5 million, down from $996.5 million at the end of 2022.

Future Revenue Potential

Mirati's future revenue potential is closely tied to the success of its product pipeline, particularly KRAZATI and other investigational therapies. The company is also positioned to benefit from milestone payments and royalties from its collaboration agreements with partners such as BeiGene and Pfizer.