Sep 30, 2021

Atea Q3 2021 Earnings Report

Atea reported financial results for the third quarter of 2021 and provided a clinical and corporate update.

Key Takeaways

Atea Pharmaceuticals reported a net loss of $28.2 million for Q3 2021, with collaboration revenue of $32.8 million driven by the Roche License Agreement. The company is focusing on the development of AT-527, with ongoing Phase 3 trials and protocol amendments to improve trial outcomes. New data supports AT-527's antiviral activity against COVID-19 variants.

Atea is amending the Phase 3 MORNINGSKY trial protocol to include a new primary endpoint, refined patient population, and increased dosage.

Exploratory analyses from the Phase 2 MOONSONG trial indicate potent antiviral activity of AT-527, reducing viral load in COVID-19 patients.

In vitro data show AT-511 (free base of AT-527) is active against COVID-19 variants of concern, including Delta.

Atea's collaboration revenue for the quarter was $32.8 million, derived from the Roche License Agreement.

Total Revenue
$32.8M
EPS
-$0.34
Previous year: -$1.74
-80.5%
Gross Profit
-$10.2M
Cash and Equivalents
$840M
Previous year: $105M
+696.8%
Total Assets
$844M
Previous year: $110M
+666.1%

Atea

Atea

Atea Revenue by Segment

Forward Guidance

Atea Pharmaceuticals is working to deliver AT-527 as an oral antiviral treatment for COVID-19. The company plans to initiate a Phase 2 trial for AT-752 during the first half of 2022.

Positive Outlook

  • AT-527 shows rapid and potent antiviral activity against COVID-19.
  • AT-511 is active against variants of concern, including Delta.
  • Atea is enhancing the MORNINGSKY trial infrastructure to accelerate enrollment.
  • AT-527 has dual targets against a key viral enzyme.
  • Phase 3 MORNINGSKY data are anticipated in the second half of 2022.

Challenges Ahead

  • The global Phase 2 MOONSONG trial evaluating AT-527 in the outpatient setting did not meet the primary endpoint.
  • Net loss for the quarter ended September 30, 2021 increased by $10.6 million from the quarter ended September 30, 2020.
  • There are risks and uncertainties associated with the development of AT-527 as a potential treatment for COVID-19.
  • Atea has a limited operating history and significant losses since inception.
  • Atea is dependent on the success of its most advanced product candidates.