bbio-10q_20200331.htm

 

 

 

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 March 31, 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: 001-38959

 

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 May 8, 2020 the registrant had 121,369,992 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

 

6

 

 

Condensed Consolidated Statements of Cash Flows

 

7

 

 

Notes to Condensed Consolidated Financial Statements

 

8

Item 2.

 

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

 

37

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

46

Item 4.

 

Controls and Procedures

 

46

PART II.

 

OTHER INFORMATION

 

 

Item 1.

 

Legal Proceedings

 

48

Item 1A.

 

Risk Factors

 

48

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

102

Item 3.

 

Defaults Upon Senior Securities

 

102

Item 4.

 

Mine Safety Disclosures

 

102

Item 5.

 

Other Information

 

102

Item 6.

 

Exhibits

 

103

Signatures

 

105

 

 

 

 

 

2


 

BRIDGEBIO PHARMA, INC.

Condensed Consolidated Balance Sheets

(in thousands, except shares and per share amounts)

 

 

 

March 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

 

(Unaudited)

 

 

(1)

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

757,049

 

 

$

363,773

 

Short-term marketable securities

 

 

148,126

 

 

 

182,220

 

Prepaid expenses and other current assets

 

 

19,782

 

 

 

22,629

 

Total current assets

 

 

924,957

 

 

 

568,622

 

Property and equipment, net

 

 

15,755

 

 

 

5,625

 

Operating lease right-of-use assets, net

 

 

8,855

 

 

 

 

Long-term marketable securities

 

 

23,210

 

 

 

31,144

 

Other assets

 

 

17,022

 

 

 

26,288

 

Total assets

 

$

989,799

 

 

$

631,679

 

Liabilities, Redeemable Convertible Noncontrolling Interests and

   Stockholders’ Equity

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

13,086

 

 

$

8,852

 

Accrued compensation and benefits

 

 

5,647

 

 

 

13,317

 

Accrued research and development liabilities

 

 

29,522

 

 

 

20,896

 

Accrued professional services

 

 

3,145

 

 

 

2,222

 

LEO call option liability

 

 

3,539

 

 

 

4,078

 

Build-to-suit lease obligation

 

 

 

 

 

8,000

 

Operating lease liabilities, current portion

 

 

2,510

 

 

 

 

Other accrued liabilities

 

 

7,465

 

 

 

3,020

 

Total current liabilities

 

 

64,914

 

 

 

60,385

 

Term loans, noncurrent

 

 

92,416

 

 

 

91,791

 

2027 Notes

 

 

368,923

 

 

 

 

Operating lease liabilities, net of current portion

 

 

8,678

 

 

 

 

Other liabilities

 

 

2,797

 

 

 

3,527

 

Total liabilities

 

 

537,728

 

 

 

155,703

 

Commitments and contingencies (Note 8)

 

 

 

 

 

 

 

 

Redeemable convertible noncontrolling interests

 

 

3,053

 

 

 

2,243

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

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;

   123,774,536 shares issued and 121,359,855 shares outstanding as of

   March 31, 2020, 123,658,287 shares issued and outstanding as of

   December 31, 2019

 

 

124

 

 

 

124

 

Treasury stock, at cost; 2,414,681 shares as of March 31, 2020

 

 

(75,000

)

 

 

 

Additional paid-in capital

 

 

986,746

 

 

 

848,107

 

Accumulated other comprehensive income

 

 

726

 

 

 

254

 

Accumulated deficit

 

 

(531,881

)

 

 

(440,031

)

Total BridgeBio stockholders' equity

 

 

380,715

 

 

 

408,454

 

Noncontrolling interests

 

 

68,303

 

 

 

65,279

 

Total stockholders' equity

 

 

449,018

 

 

 

473,733

 

Total liabilities, redeemable convertible noncontrolling interests and

   stockholders’ equity

 

$

989,799

 

 

$

631,679

 

 

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

 

(1)

The condensed consolidated balance sheet as of December 31, 2019 is derived from the audited consolidated financial statements as of that date.

 

3


 

BRIDGEBIO PHARMA, INC.

Condensed Consolidated Statements of Operations

(Unaudited)

(in thousands, except shares and per share amounts)

 

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

 

$

68,225

 

 

$

44,853

 

General and administrative

 

 

34,262

 

 

 

18,899

 

Total operating expenses

 

 

102,487

 

 

 

63,752

 

Loss from operations

 

 

(102,487

)

 

 

(63,752

)

Other income (expense), net:

 

 

 

 

 

 

 

 

Interest income

 

 

1,941

 

 

 

2,107

 

Interest expense

 

 

(4,010

)

 

 

(1,671

)

Share in net loss of an equity method investment

 

 

 

 

 

(4,599

)

Other income (expense)

 

 

474

 

 

 

(1,521

)

Total other income (expense), net

 

 

(1,595

)

 

 

(5,684

)

Net loss

 

 

(104,082

)

 

 

(69,436

)

Net loss attributable to redeemable convertible

   noncontrolling interests and noncontrolling

   interests

 

 

12,232

 

 

 

8,251

 

Net loss attributable to common stockholders

   of BridgeBio

 

$

(91,850

)

 

$

(61,185

)

Net loss per share, basic and diluted

 

$

(0.78

)

 

$

(0.66

)

Weighted-average shares used in computing net loss

   per share, basic and diluted (2)

 

 

117,803,438

 

 

 

92,330,072

 

 

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

 

(2)

The weighted-average shares used in computing net loss per share, basic and diluted for the three months ended March 31, 2019 were retroactively adjusted as a result of the 2019 Reorganization. See Note 13 to the condensed consolidated financial statements for additional details.

4


 

BRIDGEBIO PHARMA, INC.

Condensed Consolidated Statements of Comprehensive Loss

(Unaudited)

(in thousands)

 

 

 

Three Months Ended March 31,

 

 

 

2020

 

 

2019

 

Net loss

 

$

(104,082

)

 

$

(69,436

)

Other comprehensive income:

 

 

 

 

 

 

 

 

Unrealized gain on available-for-sale securities

 

 

472

 

 

 

 

Comprehensive loss

 

 

(103,610

)

 

 

(69,436

)

Comprehensive loss attributable to redeemable convertible

   noncontrolling interests and noncontrolling

   interests

 

 

12,232

 

 

 

8,251

 

Comprehensive loss attributable to common stockholders

   of BridgeBio

 

$

(91,378

)

 

$

(61,185

)

 

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

 

 

5


 

BRIDGEBIO PHARMA, INC.

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

(Unaudited)

(in thousands, except shares and per share amounts)

 

 

 

Three Months Ended March 31, 2020

 

 

 

Redeemable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

Convertible

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

 

BridgeBio

 

 

Noncontro-

 

 

Total

 

 

 

Noncontrolling

 

 

 

Common Stock

 

 

Treasury Stock

 

 

Paid-In

 

 

Comprehensive

 

 

Accumulated

 

 

Stockholders'

 

 

lling

 

 

Stockholders’

 

 

 

Interests

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income

 

 

Deficit

 

 

Equity

 

 

Interests

 

 

Equity

 

Balances as of December 31, 2019 (3)

 

$

2,243

 

 

 

 

123,658,287

 

 

$

124

 

 

 

 

 

$

 

 

$

848,107

 

 

$

254

 

 

$

(440,031

)

 

$

408,454

 

 

$

65,279

 

 

$

473,733

 

Issuance of shares under equity

   compensation plans

 

 

 

 

 

 

116,249

 

 

 

 

 

 

 

 

 

 

 

 

529

 

 

 

 

 

 

 

 

 

529

 

 

 

 

 

 

529

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8,063

 

 

 

 

 

 

 

 

 

8,063

 

 

 

 

 

 

8,063

 

Equity component of 2027 Notes, net of

   issuance costs and deferred tax liability

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

167,726

 

 

 

 

 

 

 

 

 

167,726

 

 

 

 

 

 

167,726

 

Purchase of capped calls

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(49,280

)

 

 

 

 

 

 

 

 

(49,280

)

 

 

 

 

 

(49,280

)

Repurchase of common stock

 

 

 

 

 

 

(2,414,681

)

 

 

 

 

 

2,414,681

 

 

 

(75,000

)

 

 

 

 

 

 

 

 

 

 

 

(75,000

)

 

 

 

 

 

(75,000

)

Issuance of noncontrolling interest

 

 

1,102

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26,565

 

 

 

26,565

 

Transfers from (to) noncontrolling

    interest

 

 

574

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11,601

 

 

 

 

 

 

 

 

 

11,601

 

 

 

(12,175

)

 

 

(574

)

Unrealized gains on available-for-sale

   securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

472

 

 

 

 

 

 

472

 

 

 

 

 

 

472

 

Net loss

 

 

(866

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(91,850

)

 

 

(91,850

)

 

 

(11,366

)

 

 

(103,216

)

Balances as of March 31, 2020

 

$

3,053

 

 

 

 

121,359,855

 

 

$

124

 

 

 

2,414,681

 

 

$

(75,000

)

 

$

986,746

 

 

$

726

 

 

$

(531,881

)

 

$

380,715

 

 

$

68,303

 

 

$

449,018

 

 

 

 

Three Months Ended March 31, 2019

 

 

 

Redeemable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

Convertible

 

 

 

 

 

 

Additional

 

 

 

 

 

 

BridgeBio

 

 

Noncontro-

 

 

Total

 

 

 

Noncontrolling

 

 

 

Common Stock

 

 

Paid-In

 

 

Accumulated

 

 

Stockholders'

 

 

lling

 

 

Stockholders’

 

 

 

Interests

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Equity

 

 

Interests

 

 

Equity

 

Balances as of December 31, 2018 (3)

 

$

122

 

 

 

 

92,057,704

 

 

$

92

 

 

$

494,231

 

 

$

(179,444

)

 

$

314,879

 

 

$

62,361

 

 

$

377,240

 

Issuance of shares under equity compensation plans

 

 

 

 

 

 

518,511

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

1,236

 

 

 

 

 

 

1,236

 

 

 

 

 

 

1,236

 

Repayment of nonrecourse notes

 

 

 

 

 

 

 

 

 

 

 

 

179

 

 

 

 

 

 

179

 

 

 

 

 

 

179

 

Issuance of noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,320

 

 

 

1,320

 

Transfers from (to) noncontrolling interest

 

 

870

 

 

 

 

 

 

 

 

 

 

(2,968

)

 

 

 

 

 

(2,968

)

 

 

2,098

 

 

 

(870

)

Net loss

 

 

(790

)

 

 

 

 

 

 

 

 

 

 

 

 

(61,185

)

 

 

(61,185

)

 

 

(7,461

)

 

 

(68,646

)

Balances as of March 31, 2019

 

$

202

 

 

 

 

92,576,215

 

 

$

92

 

 

$

492,678

 

 

$

(240,629

)

 

$

252,141

 

 

$

58,318

 

 

$

310,459

 

 

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

 

(3)

The consolidated balances as of December 31, 2019 and 2018 are derived from the audited consolidated financial statements as of that date. The consolidated balances as of December 31, 2018 were retroactively adjusted, including shares and per share amounts, as a result of the 2019 Reorganization. See Note 13 to the condensed consolidated financial statements for additional details.

 

 

 

6


 

BRIDGEBIO PHARMA, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

 

 

 

Three Months Ended March 31,

 

Operating activities:

 

2020

 

 

2019

 

Net loss

 

$

(104,082

)

 

$

(69,436

)

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

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

10,222

 

 

 

2,232

 

Share in net loss of equity method investments

 

 

 

 

 

4,599

 

Accretion of 2027 Notes and term loans

 

 

1,761

 

 

 

354

 

Acquired in-process research and development assets

 

 

 

 

 

2,000

 

LEO call option expense (income)

 

 

(539

)

 

 

1,514

 

Other noncash adjustments

 

 

1,034

 

 

 

339

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Prepaid expenses and other current assets

 

 

2,846

 

 

 

(309

)

Other assets

 

 

(734

)

 

 

(1,852

)

Accounts payable

 

 

4,234

 

 

 

(1,952

)

Accrued compensation and benefits

 

 

(7,670

)

 

 

(432

)

Accrued research and development liabilities

 

 

8,626

 

 

 

1,710

 

Accrued professional services

 

 

923

 

 

 

1,370

 

Operating lease liabilities

 

 

(556

)

 

 

 

Other accrued and other liabilities

 

 

15

 

 

 

723

 

Net cash used in operating activities

 

 

(83,920

)

 

 

(59,140

)

Investing activities

 

 

 

 

 

 

 

 

Maturities of marketable securities

 

 

42,500

 

 

 

 

Cash paid for in-process research and development assets acquired

 

 

 

 

 

(2,000

)

Purchases of property and equipment

 

 

(4,477

)

 

 

(427

)

Net cash provided by (used in) investing activities

 

 

38,023

 

 

 

(2,427

)

Financing activities

 

 

 

 

 

 

 

 

Proceeds from issuance of 2027 Notes

 

 

550,000

 

 

 

 

Issuance costs and discounts associated with issuance of 2027 Notes

 

 

(12,375

)

 

 

 

Purchase of capped calls

 

 

(49,280

)

 

 

 

Repurchase of common stock

 

 

(75,000

)

 

 

 

Proceeds from repayment of nonrecourse notes

 

 

 

 

 

179

 

Proceeds from at-the-market issuance of noncontrolling interest by Eidos, net

 

 

24,094

 

 

 

 

Proceeds from issuance of redeemable convertible noncontrolling interests to third-party investors

 

 

1,000

 

 

 

 

MyoKardia distributions

 

 

 

 

 

(997

)

Payment of deferred offering costs

 

 

 

 

 

(936

)

Proceeds from stock option exercises, net of repurchases

 

 

734

 

 

 

103

 

Net cash provided by (used in) financing activities

 

 

439,173

 

 

 

(1,651

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

393,276

 

 

 

(63,218

)

Cash, cash equivalents and restricted cash at beginning of period

 

 

364,197

 

 

 

436,245

 

Cash, cash equivalents and restricted cash at end of period

 

$

757,473

 

 

$

373,027

 

Supplemental Disclosures of Cash Flow Information:

 

 

 

 

 

 

 

 

Cash paid for interest

 

$

2,054

 

 

$

1,176

 

Supplemental Disclosures of Non-Cash Investing and Financing Information:

 

 

 

 

 

 

 

 

Issuance costs associated with issuance of 2027 Notes included in other accrued

  and other liabilities

 

$

664

 

 

$

 

Recognition of property and equipment previously classified in other assets

 

$

10,000

 

 

$

 

Operating lease right-of-use assets obtained in exchange for operating lease obligations

 

$

9,395

 

 

$

 

Transfers from (to) noncontrolling interest (Note 6)

 

$

11,601

 

 

$

(2,968

)

 

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

 

7


 

BRIDGEBIO PHARMA, INC.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1.

Organization and Description of Business

BridgeBio Pharma, Inc. (“BridgeBio”) was established to identify and advance transformative medicines to treat patients who suffer from Mendelian diseases, which are diseases that arise from defects in a single gene, and cancers with clear genetic drivers. BridgeBio’s pipeline of programs spans early discovery to late-stage development.

On July 1, 2019, BridgeBio completed the 2019 Reorganization and closed the Initial Public Offering (“IPO”) of its common stock (see Note 13). Since inception, BridgeBio has either created wholly-owned subsidiaries or has made investments in certain controlled entities, including partially-owned subsidiaries for which BridgeBio has a majority voting interest, and variable interest entities (“VIEs”) for which BridgeBio is the primary beneficiary (collectively, “we”, “our”, “us”). Our condensed consolidated financial statements include the accounts of our majority-owned affiliate, Eidos Therapeutics, Inc. (“Eidos”), which completed an IPO in June 2018. BridgeBio is headquartered in Palo Alto, California.

The results of operations and cash flows prior to the IPO closing on July 1, 2019 relate to BridgeBio Pharma LLC (“BBP LLC”), its subsidiaries and controlled entities. Subsequent to the IPO closing, the information relates to BridgeBio, its subsidiaries and controlled entities. All share and per share amounts in these condensed consolidated financial statements and related notes have been retroactively adjusted, where applicable, for the comparable periods presented to give effect to the exchange ratio applied in connection with the 2019 Reorganization.

  

       

2.Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The condensed consolidated financial statements include the accounts of BridgeBio Pharma, Inc., its wholly owned subsidiaries and controlled entities, all of which are denominated in U.S. dollars. All intercompany balances and transactions have been eliminated in consolidation.

The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of SEC regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019 filed with the Securities and Exchange Commission (“SEC”).

The condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of our financial position, our results of operations and comprehensive loss, and our cash flows for the periods presented. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020 or for any other future annual or interim periods.

The condensed consolidated balance sheet as of March 31, 2020, the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive loss, the condensed consolidated statements of redeemable convertible noncontrolling interests and stockholders’ equity and the condensed consolidated statements of cash flows for the three months ended March 31, 2020 and 2019 are unaudited. The financial data and the other financial information contained in these notes to the condensed consolidated financial statements related to the three-month periods are also unaudited.

Variable Interest Entities and Voting Interest Entities

BridgeBio consolidates those entities in which it has a direct or indirect controlling financial interest based on either the VIE model or the Voting Interest Entity (“VOE”) model.

 

 

8


BRIDGEBIO PHARMA, INC.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

 

 

At the VIE’s inception, BridgeBio determines whether it is the primary beneficiary and if the VIE should be consolidated based on the facts and circumstances. BridgeBio then performs on-going reassessments of the VIE based on reconsideration events and reevaluates whether a change to the consolidation conclusion is required each reporting period. Refer to Note 6.

Entities that do not qualify as a VIE are assessed for consolidation under the VOE model. Under the VOE model, BridgeBio consolidates the entity if it determines that it, directly or indirectly, has greater than 50% of the voting shares and that other equity holders do not have substantive voting, participating or liquidation rights. Refer to Note 6.

We have either created or made investments in entities that are either wholly or partially-owned subsidiaries and VIEs. The following are the VIEs as of March 31, 2020 and December 31, 2019:

 

Variable Interest Entities

 

Relationship as of

March 31, 2020

 

Date Control

First Acquired

 

Ownership %

as of

March 31,

2020

 

 

Ownership %

as of

December 31,

2019

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

Fortify Therapeutics, Inc. (“Fortify”)

 

Controlled VIE

 

June 2018

 

 

99.7

%

 

 

99.7

%

Calcilytix Therapeutics, Inc. (“Calcilytix”)

 

Controlled VIE

 

December 2018

 

 

98.9

%

 

 

98.9

%

Audition Therapeutics, Inc. (“Audition”)

 

Controlled VIE

 

May 2019

 

 

64.5

%

 

 

64.5

%

Molecular Skin Therapeutics, Inc. (“MOST”)

 

Controlled VIE

 

July 2016

 

 

64.1

%

 

 

64.8

%

TheRas, Inc. (“Theras”)

 

Controlled VIE

 

August 2016

 

 

99.6

%

 

 

99.6

%

Quartz Therapeutics, Inc. (“Quartz”)

 

Controlled VIE

 

October 2016

 

 

89.0

%

 

 

89.0

%

PellePharm, Inc. (“PellePharm”)(1)

 

VIE

 

December 2016

 

 

43.3

%

 

 

43.3

%

Navire Pharma, Inc. (“Navire”)

 

Controlled VIE

 

February 2017

 

 

78.1

%

 

 

78.6

%

CoA Therapeutics, Inc. (“CoA”)

 

Controlled VIE

 

February 2017

 

 

98.8

%

 

 

99.5

%

Dermecular Therapeutics, Inc. (“Dermecular”)

 

Controlled VIE

 

April 2017

 

 

87.6

%

 

 

87.6

%

Phoenix Tissue Repair, Inc. (“PTR”)

 

Controlled VIE

 

July 2017

 

 

65.3

%

 

 

65.5

%

QED Therapeutics, Inc. (“QED”)

 

Controlled VIE

 

January 2018

 

 

98.0

%

 

 

97.8

%

Adrenas Therapeutics, Inc. (“Adrenas”)

 

Controlled VIE

 

January 2018

 

 

90.7

%

 

 

90.1

%

Orfan Biotech, Inc. (“Orfan”)

 

Controlled VIE

 

January 2018

 

 

91.7

%

 

 

91.7

%

Ferro Therapeutics, Inc. (“Ferro”)

 

Controlled VIE

 

March 2018

 

 

90.6

%

 

 

90.9

%

Origin Biosciences, Inc. (“Origin”)

 

Controlled VIE

 

April 2018

 

 

99.7

%

 

 

99.6

%

Venthera, Inc. (“Venthera”)

 

Controlled VIE

 

April 2018

 

 

86.9

%

 

 

83.2

%

Aspa Therapeutics, Inc. (“Aspa”)

 

Controlled VIE

 

June 2018

 

 

93.0

%

 

 

91.0

%

ML Bio Solutions, Inc. (“ML Bio”)

 

Controlled VIE

 

July 2019

 

 

63.3

%

 

 

50.6

%

Shift Therapeutics, Inc. (“Shift”) (2)

 

Controlled VIE

 

January 2019

 

 

83.1

%

 

 

 

 

(1)

Subsequent to the execution of a series of agreements (the “LEO Agreement”) with LEO Pharma A/S and LEO Spiny Merger Sub, Inc. (“LEO”) in November 2018, BridgeBio determined that it is no longer the primary beneficiary of PellePharm and deconsolidated PellePharm. Refer to Note 8.

(2)

Shift had no shares issued and outstanding from the date of incorporation through December 31, 2019.

Not included in the above list is Eidos, which is a partially-owned subsidiary that we consolidate under the VOE model.

Risks and Uncertainties

In light of recent developments relating to the global outbreak of SARS-CoV-2, the novel strain of coronavirus that causes Coronavirus disease 19 (COVID-19), the focus of healthcare providers and hospitals on fighting the virus, and consistent with the U.S. Food and Drug Administration’s updated industry guidance for conducting clinical trials issued on March 18, 2020, we are experiencing delays in or temporary suspension of the enrollment of patients in our subsidiaries’ ongoing clinical trials. We additionally expect to experience delays in certain ongoing key program activities, including commencement of planned clinical trials, as well as non-clinical experiments and investigational new drug application-enabling good laboratory practice toxicology studies. The exact timing of delays and overall impact is currently unknown.

9


BRIDGEBIO PHARMA, INC.

Notes to Condensed Consolidated Financial Statements

(unaudited)

 

Cash, Cash Equivalents and Restricted Cash

We consider all highly liquid investments purchased with original maturities of 90 days or less from the purchase date to be cash equivalents. Cash equivalents consist primarily of amounts invested in money market instruments, such as money market funds and repurchase agreements collateralized with securities issued by the U.S. government or its agencies.

  Our restricted cash balance relates to cash and cash equivalents that we have pledged as collateral under certain lease agreements and letters of credit.

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the amounts shown in the condensed consolidated statements of cash flows:

 

 

 

March 31,

2020

 

 

March 31,

2019

 

 

 

(in thousands)

 

Cash and cash equivalents

 

$

757,049

 

 

$

373,027

 

Restricted cash

 

 

424

 

 

 

 

Total cash, cash equivalents and restricted cash

   shown in the condensed consolidated statements

   of cash flows

 

$

757,473

 

 

$

373,027