SEC Filing | BridgeBio Pharma

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10-Q

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, 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: 001-38959

BridgeBio Pharma, Inc.

(Exact Name of Registrant as Specified in its Charter)


Delaware		84-1850815
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
421 Kipling Street Palo Alto, CA		94301
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (650) 391-9740

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

BBIO

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, the registrant had 147,166,573 shares of common stock, $0.001 par value per share, outstanding.

Table of Contents


		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations	4
	Condensed Consolidated Statements of Comprehensive Loss	5
	Condensed Consolidated Statements of Redeemable Convertible Noncontrolling Interests and Stockholders’ Equity (Deficit)	6
	Condensed Consolidated Statements of Cash Flows	8
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	39
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	52
Item 4.	Controls and Procedures	52
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	53
Item 1A.	Risk Factors	53
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	53
Item 3.	Defaults Upon Senior Securities	54
Item 4.	Mine Safety Disclosures	54
Item 5.	Other Information	54
Item 6.	Exhibits	55
Signatures		57

BRIDGEBIO PHARMA, INC.

Condensed Consolidated Balance Sheets

(in thousands, except shares and per share amounts)


	September 30,			December 31,
	2021			2020
	(Unaudited)			(1)
Assets
Current assets:
Cash and cash equivalents	$	180,347		$	356,082
Short-term marketable securities		419,264			251,011
Receivable from licensing and collaboration agreements		7,710			—
Receivable from a related party		462			—
Prepaid expenses and other current assets		31,927			35,731
Total current assets		639,710			642,824
Investment in equity securities		17,707			—
Property and equipment, net		27,741			20,325
Operating lease right-of-use assets		17,108			16,508
Intangible assets, net		46,204			—
Other assets		33,054			23,931
Total assets	$	781,524		$	703,588
Liabilities, Redeemable Convertible Noncontrolling Interests and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable	$	12,035		$	8,945
Accrued compensation and benefits		21,560			29,682
Accrued research and development liabilities		37,645			27,290
Accrued professional services		4,976			5,579
LEO call option liability		—			5,550
Operating lease liabilities, current portion		4,999			3,795
Term loans, current portion		—			1,458
Other accrued liabilities		14,608			13,349
Total current liabilities		95,823			95,648
2029 Notes, net		732,659			—
2027 Notes, net		539,517			383,436
Term loans, net of current portion		103,138			92,421
Operating lease liabilities, net of current portion		18,683			14,677
Other long-term liabilities		27,578			9,520
Total liabilities		1,517,398			595,702
Commitments and contingencies (Note 8)
Redeemable convertible noncontrolling interests		2,967			1,630
Stockholders’ equity (deficit):
Undesignated preferred stock, $0.001 par value; 25,000,000 shares authorized; no shares issued and outstanding		—			—
Common stock, $0.001 par value; 500,000,000 shares authorized; 153,279,652 shares issued and 147,087,891 shares outstanding as of September 30, 2021, 125,264,070 shares issued and 122,849,389 shares outstanding as of December 31, 2020		153			125
Treasury stock, at cost; 6,191,761 shares as of September 30, 2021, 2,414,681 shares as of December 31, 2020		(275,000	)		(75,000	)
Additional paid-in capital		821,220			1,021,344
Accumulated other comprehensive income		19			192
Accumulated deficit		(1,289,789	)		(888,755	)
Total BridgeBio stockholders’ equity (deficit)		(743,397	)		57,906
Noncontrolling interests		4,556			48,350
Total stockholders’ equity (deficit)		(738,841	)		106,256
Total liabilities, redeemable convertible noncontrolling interests and stockholders’ equity (deficit)	$	781,524		$	703,588

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

(1)

The condensed consolidated balance sheet as of December 31, 2020 is derived from the audited consolidated financial statements as of that date.

BRIDGEBIO PHARMA, INC.

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands, except shares and per share amounts)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Revenue:
License revenue	$	1,585		$	8,127		$	55,084		$	8,127
Product sales		759			—			1,746			—
Total revenue		2,344			8,127			56,830			8,127
Operating costs and expenses:
Cost of products sold		1,454			—			1,563			—
Research and development		104,305			92,050			328,824			246,873
Selling, general and administrative		46,084			36,016			137,461			108,247
Total operating costs and expenses		151,843			128,066			467,848			355,120
Loss from operations		(149,499	)		(119,939	)		(411,018	)		(346,993	)
Other income (expense), net:
Interest income		234			692			951			3,567
Interest expense		(11,067	)		(10,929	)		(31,644	)		(25,693	)
Other income (expense), net		(684	)		9			7,539			(1,344	)
Total other income (expense), net		(11,517	)		(10,228	)		(23,154	)		(23,470	)
Net loss		(161,016	)		(130,167	)		(434,172	)		(370,463	)
Net loss attributable to redeemable convertible noncontrolling interests and noncontrolling interests		5,081			14,308			18,810			41,720
Net loss attributable to common stockholders of BridgeBio	$	(155,935	)	$	(115,859	)	$	(415,362	)	$	(328,743	)
Net loss per share, basic and diluted	$	(1.06	)	$	(0.98	)	$	(2.88	)	$	(2.79	)
Weighted-average shares used in computing net loss per share, basic and diluted		146,662,756			118,168,063			144,044,360			117,663,038

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

BRIDGEBIO PHARMA, INC.

Condensed Consolidated Statements of Comprehensive Loss

(Unaudited)

(in thousands)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Net loss	$	(161,016	)	$	(130,167	)	$	(434,172	)	$	(370,463	)
Other comprehensive income (loss):
Unrealized gains (losses) on available-for-sale securities		(17	)		(397	)		(173	)		207
Comprehensive loss		(161,033	)		(130,564	)		(434,345	)		(370,256	)
Comprehensive loss attributable to redeemable convertible noncontrolling interests and noncontrolling interests		5,081			14,308			18,810			41,720
Comprehensive loss attributable to common stockholders of BridgeBio	$	(155,952	)	$	(116,256	)	$	(415,535	)	$	(328,536	)

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

BRIDGEBIO PHARMA, INC.

Condensed Consolidated Statements of Redeemable Convertible Noncontrolling Interests and Stockholders’ Equity (Deficit)

(Unaudited)

(in thousands, except shares and per share amounts)


	Nine Months Ended September 30, 2021
																					Total
	Redeemable															Accumulated					BridgeBio						Total
	Convertible												Additional			Other					Stockholders'			Noncontrol-			Stockholders’
	Noncontrolling		Common Stock					Treasury Stock					Paid-In			Comprehensive		Accumulated			Equity			ling			Equity
	Interests		Shares			Amount		Shares		Amount			Capital			Income (Loss)		Deficit			(Deficit)			Interests			(Deficit)
Balances as of December 31, 2020 (2)	$	1,630		122,849,389		$	125		2,414,681	$	(75,000	)	$	1,021,344		$	192	$	(888,755	)	$	57,906		$	48,350		$	106,256
Cumulative effect of ASU 2020-06 adoption		—		—			—		—		—			(168,078	)		—		14,328			(153,750	)		—			(153,750	)
Issuance of shares under equity compensation plans		—		819,113			1		—		—			6,841			—		—			6,842			—			6,842
Stock-based compensation		—		—			—		—		—			19,841			—		—			19,841			—			19,841
Purchase of capped calls		—		—			—		—		—			(61,295	)		—		—			(61,295	)		—			(61,295	)
Repurchase of common stock		—		(759,993	)		—		759,993		(50,000	)		—			—		—			(50,000	)		—			(50,000	)
Issuance of common stock under ESPP		—		65,298			—		—		—			1,651			—		—			1,651			—			1,651
Repurchase of common stock to satisfy tax withholding		—		(15,653	)		—		—		—			(1,021	)		—		—			(1,021	)		—			(1,021	)
Repurchase of Eidos noncontrolling interests for cash and shares, including transaction costs of $70,734		—		26,156,446			26		—		—			(53,856	)		—		—			(53,830	)		(38,167	)		(91,997	)
Issuance of noncontrolling interests		—		—			—		—		—			—			—		—			—			5,080			5,080
Transfers from (to) noncontrolling interests		517		—			—