Reneo Pharmaceuticals Files Q2 2024 10-Q

TL;DR

Reneo's Q2 10-Q is in, showing stock plans and VTV Therapeutics updates. No major financial bombs dropped.

AI Summary

Reneo Pharmaceuticals, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported on its financial condition and operations, including details on its At-The-Market Facility and various stock-based compensation plans. Specific mentions include VTV Therapeutics LLC and Jennifer P. Lam, with financial data points related to fair value measurements and accumulated other comprehensive income.

Why It Matters

This filing provides investors with an update on Reneo Pharmaceuticals' financial health and operational activities for the second quarter of 2024, crucial for understanding the company's current standing and future prospects.

Risk Assessment

Risk Level: medium — As a pharmaceutical company, Reneo faces inherent risks related to drug development, regulatory approvals, and market competition, which are reflected in its financial reporting.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial information is provided.)
• 20240813 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Reneo Pharmaceuticals, Inc. (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• VTV Therapeutics LLC (company) — Mentioned in relation to financial reporting periods
• Jennifer P. Lam (person) — Mentioned in relation to financial reporting period
• 0000950170-24-096411 (other) — Accession Number for the filing

FAQ

Key Financial Figures

• $0.0001 — ch registered Common Stock, par value $0.0001 per share RPHM The Nasdaq Stock Mar

Filing Documents

• rphm-20240630.htm (10-Q) — 1515KB
• rphm-ex10_2.htm (EX-10.2) — 47KB
• rphm-ex10_3.htm (EX-10.3) — 52KB
• rphm-ex10_4.htm (EX-10.4) — 49KB
• rphm-ex10_5.htm (EX-10.5) — 47KB
• rphm-ex31_1.htm (EX-31.1) — 16KB
• rphm-ex31_2.htm (EX-31.2) — 16KB
• rphm-ex32_1.htm (EX-32.1) — 14KB
• img28451501_0.jpg (GRAPHIC) — 11KB
• 0000950170-24-096411.txt ( ) — 6341KB
• rphm-20240630.xsd (EX-101.SCH) — 993KB
• rphm-20240630_htm.xml (XML) — 917KB

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 8 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 26 Item 4.

Controls and Procedures

Controls and Procedures 26 Part II Other Information 27 Item 1.

Legal Proceedings

Legal Proceedings 27 Item 1A.

Risk Factors

Risk Factors 27 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 54 Item 3. Defaults Upon Senior Securities 54 Item 4. Mine Safety Disclosures 54 Item 5. Other Information 54 Item 6. Exhibits 55

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements RENEO PHARMACEUTICALS, INC. Consolidated Balance Sheets (In thousands, except share and par value data) June 30, 2024 December 31, 2023 (Unaudited) Assets Current assets: Cash and cash equivalents $ 35,970 $ 27,632 Short-term investments 40,704 75,331 Prepaid expenses and other current assets 1,316 3,659 Total current assets 77,990 106,622 Property and equipment, net 81 134 Right-of-use assets 493 599 Other non-current assets 153 81 Total assets $ 78,717 $ 107,436 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 64 $ 8,717 Accrued expenses 953 9,129 Operating lease liabilities, current portion 331 331 Total current liabilities 1,348 18,177 Operating lease liabilities, less current portion 492 642 Performance award 8 7 Total liabilities 1,848 18,826 Commitments and contingencies Stockholders' equity: Common stock, $ 0.0001 par value; 200,000,000 shares authorized at June 30, 2024 and December 31, 2023; 33,420,808 shares issued and outstanding at June 30, 2024 and December 31, 2023 3 3 Additional paid-in capital 309,140 307,073 Accumulated deficit ( 232,261 ) ( 218,474 ) Accumulated other comprehensive (loss) income ( 13 ) 8 Total stockholders' equity 76,869 88,610 Total liabilities and stockholders' equity $ 78,717 $ 107,436 The accompanying notes are an integral part of these consolidated financial statements. 3 RENEO PHARMACEUTICALS, INC. Consolidated Statements of Operations and Comprehensive Loss (In thousands, except share and per share data) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating expenses: Research and development $ 590 $ 14,400 $ 5,533 $ 25,389 General and administrative 5,774 6,639 10,396 11,771 Total operating expenses 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) 1. Organization and Business Organization Reneo Pharmaceuticals, Inc. (Reneo or the Company) is a pharmaceutical company historically focused on the development and commercialization of therapies for patients with rare genetic mitochondrial diseases, which are often associated with the inability of mitochondria to produce adenosine triphosphate. The Company's only product candidate, mavodelpar, is a potent and selective agonist of the peroxisome proliferator-activated receptor delta (PPAR). Mavodelpar has been shown to increase transcription of genes involved in mitochondrial function and increase fatty acid oxidation , and may increase production of new mitochondria. On December 14, 2023, the Company announced that its pivotal STRIDE study, a global, randomized, double-blind, placebo-controlled Phase 2b trial of mavodelpar in adult patients with primary mitochondria myopathy due to mitochondrial DNA defects, did not meet its primary or secondary efficacy endpoints. As a result, the Company suspended the development activities for mavodelpar and implemented cash preservation activities, including a substantial workforce reduction. The Company implemented a reduction in workforce in December 2023 and February 2024, and currently has eight full-time employees remaining. In January 2024, the Company's Board of Directors retained an independent financial advisor to initiate a formal process to evaluate potential strategic alternatives focused on maximizing stockholder value, including, but not limited to, a merger, sale, other business combination, a strategic partnership with one or more parties, or the licensing, sale or divestiture of its assets. The Company is no longer pursuing further clinical development of mavodelpar at this time. On May 10, 2024, the Company entered into an Agreement and Plan of Merger (Merger Agreement and the transactions contemplated thereby, Proposed Transactions) with Rad

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View this 10-Q filing on SEC EDGAR