Fulcrum Therapeutics, Inc. (ticker: FULC), a biotechnology company focused on developing treatments for genetically defined diseases, has recently released its annual financial report for the year ended December 31, 2022. The company’s collaboration revenue from various agreements has grown significantly over the past year, particularly due to the MyoKardia Collaboration Agreement.
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In July 2020, Fulcrum entered into an agreement with MyoKardia, Inc., a subsidiary of Bristol Myers Squibb.
Under the terms of this agreement, Fulcrum granted MyoKardia an exclusive worldwide license for certain intellectual property rights, allowing the company to research, develop, manufacture, and commercialize products for the treatment of genetically defined cardiomyopathies. This agreement involves significant additional payments to Fulcrum upon achieving various development and sales milestones.
According to the company’s annual financial report, Fulcrum recognized $5.3 million of collaboration revenue associated with the MyoKardia Collaboration Agreement during the year ended December 31, 2022. This includes $3.2 million of revenue recognized that was included in deferred revenue as of December 31, 2021. The company has also recorded deferred revenue of $0.9 million as of December 31, 2022, which is expected to be recognized over time as the research services are rendered.
Additionally, Fulcrum received $5.6 million of cost reimbursement payments under the MyoKardia Collaboration Agreement, as well as $2.5 million associated with the achievement of a preclinical milestone. Fulcrum recorded unbilled accounts receivable of $0.2 million related to reimbursable research and development costs under the MyoKardia Collaboration Agreement for activities performed during the three months ended December 31, 2022.
The Acceleron Collaboration Agreement also contributed to Fulcrum’s collaboration revenue growth, with the company recognizing $1.0 million of collaboration revenue associated with this agreement during the year ended December 31, 2022.
Fulcrum received $4.9 million of cost reimbursement payments under the Acceleron Collaboration Agreement and $2.0 million associated with the achievement of specified research milestones.
In addition to the collaboration agreements, Fulcrum entered into a Right of Reference and License Agreement with subsidiaries of GlaxoSmithKline plc (GSK) in February 2019, which granted Fulcrum an exclusive worldwide license to develop and commercialize losmapimod.
Fulcrum is obligated to use commercially reasonable efforts to develop and commercialize losmapimod at its sole cost. Fulcrum achieved a $5.0 million milestone during the second quarter of 2022 related to this agreement, which was recorded as research and development expense in the consolidated statement of operations and comprehensive loss for the year ended December 31, 2022.
Collaborations in the biotechnology industry significantly contribute to revenue growth, as companies like Fulcrum Therapeutics leverage these partnerships to develop novel therapies for various diseases. The growth in collaboration revenue during the year ended December 31, 2022, demonstrates the company’s ongoing commitment to advancing its research and development efforts through strategic partnerships. Investors and industry experts will be closely watching Fulcrum’s progress, as its collaboration agreements continue to contribute to its financial successes and potentially bring new treatments to market in the future.
Income Statement
Financials in millions USD. Fiscal year is January – December. source
| Year | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|
| 0 | Revenue | 6.34 | 19.16 | 8.82 | 0 | 0 | 0 |
| 1 | Revenue Growth (YoY) | -66.90% | 117.19% | – | – | – | – |
| 2 | Gross Profit | 6.34 | 19.16 | 8.82 | 0 | 0 | 0 |
| 3 | Selling, General & Admin | 41.69 | 30.52 | 21.39 | 13.15 | 8.31 | 4.5 |
| 4 | Research & Development | 76.78 | 69.7 | 59.04 | 71.07 | 25.18 | 18.49 |
| 5 | Other Operating Expenses | 0.43 | 0 | 0 | 0 | 0 | 0 |
| 6 | Operating Expenses | 118.9 | 100.22 | 80.43 | 84.22 | 33.5 | 22.99 |
| 7 | Operating Income | -112.56 | -81.05 | -71.61 | -84.22 | -33.5 | -22.99 |
| 8 | Other Expense / Income | -2.69 | -0.21 | -0.79 | -1.54 | -0.91 | -0.03 |
| 9 | Pretax Income | -109.87 | -80.85 | -70.82 | -82.68 | -32.59 | -22.96 |
| 10 | Net Income | -109.87 | -80.85 | -70.82 | -82.68 | -32.59 | -22.96 |
| 11 | Preferred Dividends | 0 | 0 | 0 | 7.13 | 6.56 | 2.41 |
| 12 | Net Income Common | -109.87 | -80.85 | -70.82 | -89.81 | -39.15 | -25.37 |
| 13 | Shares Outstanding (Basic) | 45 | 35 | 25 | 11 | 1 | 1 |
| 14 | Shares Outstanding (Diluted) | 45 | 35 | 25 | 11 | 1 | 1 |
| 15 | Shares Change | 27.23% | 39.47% | 129.53% | 778.76% | 76.79% | – |
| 16 | EPS (Basic) | -2.44 | -2.29 | -2.79 | -8.13 | -31.14 | -35.68 |
| 17 | EPS (Diluted) | -2.44 | -2.29 | -2.79 | -8.13 | -31.14 | -35.68 |
| 18 | Free Cash Flow Per Share | -2.20 | -2.27 | -2.17 | -3.65 | -25.09 | -30.92 |
| 19 | Gross Margin | 100.00% | 100.00% | 100.00% | – | – | – |
| 20 | Operating Margin | -1774.85% | -422.97% | -811.64% | – | – | – |
| 21 | Profit Margin | -1732.43% | -421.89% | -802.66% | – | – | – |
| 22 | Free Cash Flow Margin | -1561.23% | -418.47% | -623.34% | – | – | – |
| 23 | EBITDA | -107.46 | -78.33 | -68.44 | -80.62 | -31.24 | -22.25 |
| 24 | EBITDA Margin | -1694.37% | -408.77% | -775.70% | – | – | – |
| 25 | Depreciation & Amortization | 2.41 | 2.52 | 2.38 | 2.05 | 1.35 | 0.72 |
| 26 | EBIT | -109.87 | -80.85 | -70.82 | -82.68 | -32.59 | -22.96 |
| 27 | EBIT Margin | -1732.43% | -421.89% | -802.66% | – | – | – |
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