10-Q
Q10001300699http://fasb.org/us-gaap/2021-01-31#LongTermDebtAndCapitalLeaseObligationsCurrenthttp://www.athenex.com/20220331#LongTermDebtAndFinanceLeaseObligationsNonCurrenthttp://fasb.org/us-gaap/2021-01-31#PropertyPlantAndEquipmentNetfalse--12-31http://fasb.org/us-gaap/2021-01-31#LongTermDebtAndCapitalLeaseObligationsCurrenthttp://fasb.org/us-gaap/2021-01-31#PropertyPlantAndEquipmentNethttp://www.athenex.com/20220331#LongTermDebtAndFinanceLeaseObligationsNonCurrent0001300699us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001300699atnx:GlobalSupplyChainPlatformMembercountry:USus-gaap:TransferredAtPointInTimeMember2021-01-012021-03-310001300699atnx:PolymedTechnologyMember2021-12-310001300699us-gaap:SalesRevenueNetMemberatnx:CustomerAMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-03-310001300699us-gaap:SellingGeneralAndAdministrativeExpensesMember2022-01-012022-03-310001300699atnx:LicenseAndOtherRevenueMember2022-01-012022-03-310001300699us-gaap:LicensingAgreementsMemberatnx:HanmiPharmaceuticalsCoLtdMember2022-01-012022-03-310001300699us-gaap:RestrictedStockMembersrt:MaximumMember2021-01-012021-03-310001300699atnx:KuurTherapeuticsIncMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-05-040001300699us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMember2021-12-310001300699atnx:CommercialPlatformMemberus-gaap:TransferredAtPointInTimeMember2022-01-012022-03-310001300699us-gaap:EmployeeStockMembersrt:MaximumMember2017-06-140001300699atnx:DunkirkTransactionMember2022-03-310001300699us-gaap:CertificatesOfDepositMemberus-gaap:ShortTermInvestmentsMember2022-03-310001300699atnx:GlobalSupplyChainPlatformMember2022-03-310001300699atnx:SalesAgreementMemberatnx:AtTheMarketSharesMemberatnx:SVBLeerinkLLCMember2021-12-3100013006992022-05-0500013006992020-12-310001300699country:CN2022-01-012022-03-310001300699us-gaap:ParentMember2021-03-310001300699atnx:OncologyInnovationPlatformMember2022-03-310001300699atnx:DunkirkTransactionMember2022-01-012022-03-310001300699atnx:KuurTherapeuticsIncMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001300699atnx:PolymedTechnologyMember2022-03-310001300699us-gaap:SalesRevenueNetMemberatnx:CustomerCMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-03-310001300699country:USatnx:CommercialPlatformMemberus-gaap:TransferredAtPointInTimeMember2021-01-012021-03-310001300699us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-03-310001300699country:CN2021-01-012021-03-3100013006992021-03-310001300699us-gaap:ParentMember2022-01-012022-03-310001300699us-gaap:NonUsMember2022-01-012022-03-310001300699atnx:DunkirkTransactionMemberus-gaap:DebtInstrumentRedemptionPeriodTwoMember2022-03-310001300699atnx:CommercialPlatformMember2022-03-310001300699us-gaap:IntersegmentEliminationMember2021-01-012021-03-310001300699us-gaap:NoncontrollingInterestMember2022-01-012022-03-310001300699atnx:SegmentsDerivingRevenueMember2022-01-012022-03-310001300699srt:MaximumMemberatnx:KuurTherapeuticsIncMemberatnx:MergerAgreementMember2021-05-040001300699atnx:OncologyInnovationPlatformMember2021-12-310001300699us-gaap:EmployeeStockOptionMember2022-03-310001300699atnx:TwoThousandSeventeenOmnibusIncentivePlanMembersrt:MaximumMember2021-04-262021-04-260001300699country:CNatnx:ChongqingMaliuRiversideDevelopmentAndInvestmentCoLTDMember2019-04-012019-06-300001300699atnx:AvalonBioMedicalMember2022-03-310001300699atnx:KuurTherapeuticsIncMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-01-012022-03-310001300699country:CNatnx:CreditAgreementMember2021-05-280001300699us-gaap:SalesRevenueNetMemberatnx:CustomerBMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-03-310001300699us-gaap:TreasuryStockMember2022-03-310001300699us-gaap:TreasuryStockMember2021-12-310001300699us-gaap:CommonStockMember2021-03-310001300699atnx:OncologyInnovationPlatformMemberus-gaap:IntersegmentEliminationMember2022-01-012022-03-310001300699atnx:TrancheCMemberatnx:SeniorCreditAgreementMember2020-06-190001300699atnx:CommercialPlatformMember2021-12-310001300699us-gaap:NoncontrollingInterestMember2021-03-310001300699us-gaap:AvailableforsaleSecuritiesMemberus-gaap:ShortTermInvestmentsMember2022-03-310001300699us-gaap:OperatingSegmentsMemberatnx:GlobalSupplyChainPlatformMember2022-01-012022-03-310001300699atnx:ChongqingMaliuRiversideDevelopmentAndInvestmentCoLTDMember2022-03-310001300699us-gaap:LicensingAgreementsMember2021-12-310001300699atnx:IngenusPharmaceuticalsLLCMemberatnx:LicensingAgreementsAmortizationPeriodOfThreeYearMember2022-01-012022-03-310001300699atnx:SeniorCreditAgreementMember2022-01-192022-01-190001300699atnx:AvalonBioMedicalMemberatnx:InLicensingAgreementMember2021-01-012021-03-310001300699us-gaap:RetainedEarningsMember2021-01-012021-03-310001300699atnx:ShareholderDerivativeLawsuitMember2022-03-310001300699us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2021-12-310001300699us-gaap:OperatingSegmentsMember2021-12-310001300699atnx:ContractManufacturingRevenueMember2021-01-012021-03-310001300699atnx:KuurTherapeuticsIncMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001300699country:CNatnx:ChongqingMaliuRiversideDevelopmentAndInvestmentCoLTDMember2020-12-310001300699atnx:SeniorSecuredLoanMember2022-03-310001300699us-gaap:CertificatesOfDepositMemberus-gaap:ShortTermInvestmentsMember2021-12-310001300699atnx:JanuaryTwoThousandTwentyTwoAmendmentToCreditAgreementMember2022-01-192022-01-190001300699us-gaap:FairValueInputsLevel2Member2021-12-310001300699atnx:AvalonBioMedicalMember2021-12-310001300699atnx:SeniorCreditAgreementMember2020-09-172020-09-170001300699srt:MaximumMemberatnx:KuurTherapeuticsIncMemberatnx:MergerAgreementMember2021-05-032021-05-040001300699us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:USTreasuryAndGovernmentMember2022-03-310001300699atnx:SeniorCreditAgreementMember2020-06-182020-06-190001300699atnx:TwoThousandSeventeenOmnibusIncentivePlanMembersrt:MaximumMember2019-05-222019-05-230001300699atnx:OtherForeignCountriesIncludingAustriaMember2021-01-012021-03-310001300699us-gaap:TreasuryStockMember2020-12-310001300699us-gaap:CommonStockMember2021-01-012021-03-310001300699us-gaap:ResearchAndDevelopmentExpenseMember2022-01-012022-03-3100013006992021-01-012021-03-310001300699us-gaap:OperatingSegmentsMember2022-01-012022-03-310001300699us-gaap:AvailableforsaleSecuritiesMemberus-gaap:ShortTermInvestmentsMember2021-12-3100013006992021-01-012021-12-310001300699atnx:TwoThousandSeventeenOmnibusIncentivePlanAndTwoThousandSeventeenEmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMembersrt:MaximumMember2022-01-012022-03-310001300699srt:MinimumMemberatnx:PolymedMemberatnx:PolymedTechnologyMember2022-01-012022-03-310001300699atnx:CustomerBMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2021-01-012021-12-310001300699atnx:SeniorCreditAgreementMemberatnx:TrancheABAndDMember2020-06-190001300699atnx:SalesAgreementMemberatnx:AtTheMarketSharesMemberatnx:SVBLeerinkLLCMember2021-01-012021-12-310001300699atnx:KeyEmployeesAndIndependentDirectorsMemberatnx:KuurTherapeuticsIncMemberatnx:MergerAgreementMember2021-05-042021-05-040001300699us-gaap:RestrictedStockMember2022-03-310001300699atnx:KuurTherapeuticsIncMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-05-052021-12-310001300699us-gaap:AdditionalPaidInCapitalMember2021-12-310001300699atnx:CustomerBMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2022-01-012022-03-310001300699srt:MaximumMemberatnx:TwoThousandFourAndTwoThousandSevenAndTwoThousandThirteenAndTwoThousandSeventeenCommonStockOptionPlansMember2022-03-310001300699us-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-03-310001300699atnx:SeniorSecuredLoanMember2022-03-310001300699atnx:TrancheBMemberatnx:SeniorCreditAgreementMember2020-06-190001300699atnx:TwoThousandSeventeenOmnibusIncentivePlanAndTwoThousandSeventeenEmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMember2022-01-012022-03-310001300699atnx:CreditAgreementMember2022-03-310001300699us-gaap:RoyaltyMember2022-01-012022-03-310001300699atnx:TwoThousandAndSeventeenAlmirallOutLicenseArrangementInUSMemberus-gaap:TransferredAtPointInTimeMemberatnx:LicensedIPMember2021-01-012021-03-310001300699atnx:CreditAgreementMember2021-05-282021-05-280001300699us-gaap:CashAndCashEquivalentsMemberus-gaap:USTreasuryAndGovernmentMember2022-03-310001300699atnx:SeniorCreditAgreementMember2020-06-190001300699atnx:UnvestedRestrictedCommonSharesMember2021-01-012021-03-310001300699us-gaap:OperatingSegmentsMemberatnx:OncologyInnovationPlatformMember2022-03-310001300699us-gaap:CommonStockMember2021-12-310001300699atnx:CreditAgreementMember2021-05-280001300699srt:MinimumMemberatnx:KuurTherapeuticsIncMemberatnx:MergerAgreementMember2021-05-032021-05-040001300699atnx:KuurTherapeuticsIncMemberus-gaap:FairValueInputsLevel3Member2021-12-310001300699us-gaap:StockCompensationPlanMember2021-01-012021-03-310001300699us-gaap:ParentMember2020-12-310001300699us-gaap:LicenseMember2022-01-012022-03-310001300699us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001300699us-gaap:OperatingSegmentsMemberatnx:CommercialPlatformMember2022-01-012022-03-310001300699atnx:CreditAgreementMember2020-05-150001300699atnx:PharmaEssentiaMember2022-01-012022-03-310001300699country:USatnx:OncologyInnovationPlatformMemberus-gaap:TransferredAtPointInTimeMember2022-01-012022-03-310001300699atnx:KeyEmployeesAndIndependentDirectorsMemberatnx:KuurTherapeuticsIncMemberatnx:MergerAgreementMember2021-05-040001300699us-gaap:CommonStockMember2020-12-310001300699atnx:ActivePharmaceuticalIngredientSalesMember2021-01-012021-03-3100013006992021-01-012021-09-300001300699us-gaap:LicensingAgreementsMember2022-03-310001300699atnx:CDEInProgressResearchAndDevelopmentMember2022-03-310001300699atnx:CDEInProgressResearchAndDevelopmentMember2022-01-012022-03-310001300699country:CN2022-03-310001300699atnx:UnvestedRestrictedCommonSharesMember2022-01-012022-03-3100013006992021-12-310001300699us-gaap:SalesRevenueNetMemberatnx:CustomerBMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-03-310001300699us-gaap:OperatingSegmentsMemberatnx:CommercialPlatformMember2022-03-310001300699atnx:CommercialProductSalesMember2022-01-012022-03-310001300699country:CN2021-12-310001300699country:CNatnx:CreditAgreementMember2020-05-150001300699us-gaap:CashAndCashEquivalentsMemberus-gaap:CommercialPaperMember2021-12-310001300699country:US2021-12-310001300699country:CNatnx:ChongqingMaliuRiversideDevelopmentAndInvestmentCoLTDMember2019-06-300001300699us-gaap:AdditionalPaidInCapitalMember2021-03-310001300699us-gaap:NonUsMember2021-01-012021-03-310001300699atnx:ContractManufacturingRevenueMember2022-01-012022-03-310001300699atnx:CustomerCMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2022-01-012022-03-310001300699atnx:SeniorCreditAgreementMember2022-03-310001300699us-gaap:CostOfSalesMember2022-01-012022-03-310001300699atnx:SalesAgreementMemberatnx:AtTheMarketSharesMemberatnx:SVBLeerinkLLCMember2022-03-310001300699atnx:GlobalSupplyChainPlatformMember2021-12-310001300699us-gaap:LicensingAgreementsMemberatnx:GlandPharmaLtdMember2022-01-012022-03-310001300699us-gaap:ProductMember2022-01-012022-03-310001300699atnx:OncologyInnovationPlatformMember2022-03-310001300699srt:MaximumMemberatnx:SeniorCreditAgreementMember2020-06-182020-06-190001300699atnx:ActivePharmaceuticalIngredientSalesMember2022-01-012022-03-310001300699atnx:CustomerAMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2022-01-012022-03-310001300699atnx:KuurInProgressResearchAndDevelopmentMember2022-03-310001300699atnx:JanuaryTwoThousandTwentyTwoAmendmentToCreditAgreementMember2022-01-190001300699atnx:CommercialPlatformMember2022-01-012022-03-310001300699us-gaap:IntersegmentEliminationMember2022-01-012022-03-310001300699us-gaap:SalesRevenueNetMemberatnx:CustomerAMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-03-310001300699atnx:SeniorCreditAgreementMemberatnx:TrancheABAndDMember2022-03-310001300699us-gaap:SalesRevenueNetMemberatnx:CustomerCMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-03-310001300699us-gaap:EmployeeStockOptionMember2022-01-012022-03-310001300699us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001300699atnx:KuurInProgressResearchAndDevelopmentMember2021-12-310001300699us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMember2021-12-310001300699us-gaap:NoncontrollingInterestMember2021-12-310001300699us-gaap:CashAndCashEquivalentsMemberus-gaap:MoneyMarketFundsMember2021-12-310001300699atnx:LicenseAndOtherRevenueMember2021-01-012021-03-310001300699us-gaap:LicenseMember2021-01-012021-03-310001300699us-gaap:RestrictedStockMember2021-12-310001300699atnx:SeniorCreditAgreementMember2020-06-192020-06-190001300699us-gaap:NoncontrollingInterestMember2020-12-310001300699us-gaap:TransferredAtPointInTimeMemberatnx:LicensedIPMember2022-01-012022-03-310001300699us-gaap:ProductAndServiceOtherMember2022-01-012022-03-310001300699atnx:PolymedCustomerListMember2021-01-012021-12-310001300699atnx:SalesAgreementMemberatnx:AtTheMarketSharesMemberatnx:SVBLeerinkLLCMember2022-01-012022-03-310001300699us-gaap:FairValueInputsLevel3Member2021-12-310001300699atnx:NuwagenLimitedMember2019-06-012019-06-300001300699us-gaap:NoncontrollingInterestMember2022-03-310001300699us-gaap:RestrictedStockMember2022-01-012022-03-310001300699atnx:SeniorSecuredLoanMember2021-12-310001300699us-gaap:FairValueInputsLevel3Member2022-03-310001300699country:US2022-03-310001300699atnx:AxisTherapeuticsLimitedMember2022-03-310001300699atnx:EmployeeStockPurchasePlanMember2022-01-012022-03-310001300699atnx:SeniorCreditAgreementMember2022-01-012022-03-310001300699us-gaap:RetainedEarningsMember2022-01-012022-03-310001300699us-gaap:OperatingSegmentsMemberatnx:OncologyInnovationPlatformMember2021-01-012021-03-310001300699atnx:PharmaEssentiaMember2021-01-012021-03-310001300699us-gaap:CostOfSalesMember2021-01-012021-03-310001300699country:USatnx:CommercialPlatformMemberus-gaap:TransferredAtPointInTimeMember2022-01-012022-03-310001300699atnx:TwoThousandSeventeenOmnibusIncentivePlanAndTwoThousandSeventeenEmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMembersrt:MaximumMember2021-01-012021-03-310001300699atnx:EmployeeStockPurchasePlanMember2021-01-012021-03-310001300699atnx:IngenusPharmaceuticalsLLCMemberus-gaap:LicensingAgreementsMember2022-01-012022-03-310001300699atnx:SeniorCreditAgreementMember2022-01-1900013006992022-03-310001300699atnx:IngenusPharmaceuticalsLLCMemberatnx:LicensingAgreementsAmortizationPeriodOfFiveYearMember2022-01-012022-03-310001300699atnx:NuwagenLimitedMemberatnx:AvalonBioMedicalMember2019-06-300001300699atnx:MAIAPharmaceuticalsIncMemberus-gaap:LicensingAgreementsMember2022-01-012022-03-310001300699country:USatnx:OncologyInnovationPlatformMemberus-gaap:TransferredAtPointInTimeMember2021-01-012021-03-310001300699us-gaap:AdditionalPaidInCapitalMember2020-12-310001300699atnx:OtherForeignCountriesIncludingAustriaMemberatnx:GlobalSupplyChainPlatformMemberus-gaap:TransferredAtPointInTimeMember2021-01-012021-03-310001300699atnx:KuurTherapeuticsIncMemberus-gaap:FairValueInputsLevel3Member2022-03-310001300699atnx:LicensedIPMember2021-01-012021-03-310001300699us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001300699atnx:AxisTherapeuticsLimitedMember2022-01-012022-03-310001300699atnx:KuurTherapeuticsIncMemberatnx:MergerAgreementMember2021-05-042021-05-040001300699atnx:PolymedCustomerListMember2021-12-310001300699us-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMemberus-gaap:ShortTermInvestmentsMember2022-03-310001300699atnx:CDEInProgressResearchAndDevelopmentMember2021-12-310001300699srt:MaximumMemberatnx:AvalonBioMedicalMember2021-01-012021-12-310001300699us-gaap:ParentMember2022-03-310001300699us-gaap:FairValueInputsLevel1Member2022-03-310001300699atnx:InLicensingAgreementMemberatnx:AvalonBioMedicalMember2018-06-012018-06-300001300699us-gaap:TreasuryStockMember2021-03-310001300699atnx:OncologyInnovationPlatformMemberus-gaap:TransferredAtPointInTimeMember2022-01-012022-03-310001300699us-gaap:OperatingSegmentsMemberatnx:CommercialPlatformMember2021-01-012021-03-310001300699atnx:ChongqingMaliuRiversideDevelopmentAndInvestmentCoLTDMember2019-04-012019-06-300001300699srt:MaximumMemberatnx:KuurTherapeuticsIncMemberatnx:MergerAgreementMember2022-01-012022-03-310001300699atnx:AvalonBioMedicalMemberatnx:InLicensingAgreementMember2022-01-012022-03-310001300699atnx:InLicensingAgreementMemberatnx:AvalonBioMedicalMember2021-07-012021-07-310001300699atnx:PolymedTechnologyMember2021-01-012021-12-310001300699us-gaap:FairValueInputsLevel1Membercountry:TWatnx:PharmaEssentiaMemberus-gaap:OverTheCounterMember2021-12-310001300699atnx:OtherForeignCountriesIncludingAustriaMemberatnx:OncologyInnovationPlatformMemberus-gaap:TransferredAtPointInTimeMember2021-01-012021-03-310001300699us-gaap:CommonStockMemberatnx:SeniorCreditAgreementMember2020-06-190001300699us-gaap:IntersegmentEliminationMemberatnx:CommercialPlatformMember2021-01-012021-03-310001300699us-gaap:DiscontinuedOperationsDisposedOfBySaleMemberatnx:ImmunitybioIncorporationMember2022-01-012022-03-310001300699atnx:SeniorCreditAgreementMember2022-03-310001300699country:CNatnx:OncologyInnovationPlatformMemberus-gaap:TransferredAtPointInTimeMember2022-01-012022-03-310001300699atnx:APIFacilityOrSintahoAPIFacilityMembersrt:SubsidiariesMemberatnx:ChongqingInternationalBiologicalCityDevelopmentAndInvestmentCompanyLimitedMember2021-01-052021-01-050001300699us-gaap:CommonStockMember2022-03-310001300699us-gaap:CashAndCashEquivalentsMemberus-gaap:CertificatesOfDepositMember2021-12-310001300699atnx:AmendmentExercisePriceFiftyPercentageOfShareMemberatnx:SeniorCreditAgreementMember2022-01-190001300699us-gaap:FairValueInputsLevel1Member2021-12-310001300699us-gaap:ProductMember2021-01-012021-03-310001300699us-gaap:NoncontrollingInterestMember2021-01-012021-03-310001300699atnx:GlobalSupplyChainPlatformMember2022-03-310001300699atnx:CommercialPlatformMember2021-01-012021-03-310001300699us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001300699srt:MinimumMemberatnx:KuurTherapeuticsIncMemberatnx:MergerAgreementMember2022-01-012022-03-310001300699us-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMemberus-gaap:ShortTermInvestmentsMember2021-12-310001300699country:US2022-01-012022-03-310001300699atnx:LicensedIPMemberus-gaap:TransferredAtPointInTimeMember2021-01-012021-03-310001300699srt:MinimumMemberatnx:SeniorCreditAgreementMember2020-06-182020-06-190001300699atnx:CustomerAMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2021-01-012021-12-310001300699atnx:ChongqingMaliuRiversideDevelopmentAndInvestmentCoLTDMember2021-12-310001300699atnx:KuurTherapeuticsIncMember2022-03-310001300699atnx:CommercialProductSalesMember2021-01-012021-03-310001300699atnx:KuurTherapeuticsIncMemberatnx:MergerAgreementMember2022-01-012022-03-310001300699us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001300699atnx:CreditAgreementMember2020-05-152020-05-150001300699us-gaap:OperatingSegmentsMember2021-01-012021-03-310001300699atnx:GlobalSupplyChainPlatformMemberus-gaap:TransferredAtPointInTimeMember2021-01-012021-03-310001300699us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ShortTermInvestmentsMember2022-03-310001300699srt:MaximumMemberatnx:AvalonBioMedicalMember2022-01-012022-03-310001300699atnx:IngenusPharmaceuticalsLLCMemberatnx:LicensesOfOtherSpecialtyProductsMember2022-01-012022-03-310001300699atnx:JanuaryTwoThousandTwentyTwoAmendmentToCreditAgreementMember2022-01-042022-01-040001300699us-gaap:IntersegmentEliminationMember2021-12-310001300699us-gaap:FairValueInputsLevel1Membercountry:TWatnx:PharmaEssentiaMemberus-gaap:OverTheCounterMember2022-03-310001300699us-gaap:OperatingSegmentsMemberatnx:CommercialPlatformMember2021-12-310001300699atnx:CustomerDMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-03-310001300699srt:MaximumMemberatnx:PolymedMemberatnx:PolymedTechnologyMember2022-01-012022-03-3100013006992022-01-012022-03-310001300699us-gaap:FairValueInputsLevel2Member2022-03-310001300699srt:MaximumMemberus-gaap:CommonStockMemberatnx:SeniorCreditAgreementMember2020-06-190001300699us-gaap:DiscontinuedOperationsDisposedOfBySaleMemberatnx:ImmunitybioIncorporationMember2022-03-310001300699us-gaap:RestrictedStockMember2021-01-012021-03-310001300699atnx:KuurTherapeuticsIncMemberatnx:MergerAgreementMember2021-05-040001300699us-gaap:AdditionalPaidInCapitalMember2022-03-310001300699us-gaap:OperatingSegmentsMemberatnx:OncologyInnovationPlatformMember2022-01-012022-03-310001300699atnx:KuurTherapeuticsIncMember2021-12-310001300699atnx:APIFacilityOrSintahoAPIFacilityMembersrt:SubsidiariesMemberatnx:ChongqingInternationalBiologicalCityDevelopmentAndInvestmentCompanyLimitedMember2021-01-050001300699us-gaap:OperatingSegmentsMemberatnx:GlobalSupplyChainPlatformMember2021-12-310001300699atnx:GlobalSupplyChainPlatformMembercountry:CNus-gaap:TransferredAtPointInTimeMember2022-01-012022-03-310001300699us-gaap:DomesticCountryMember2022-01-012022-03-310001300699us-gaap:ParentMember2021-12-310001300699atnx:CustomerCMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2021-01-012021-12-310001300699us-gaap:EmployeeStockOptionMember2021-01-012021-03-310001300699atnx:GlobalSupplyChainPlatformMemberus-gaap:TransferredAtPointInTimeMember2022-01-012022-03-310001300699atnx:CommercialPlatformMemberus-gaap:TransferredAtPointInTimeMember2021-01-012021-03-310001300699atnx:GlobalSupplyChainPlatformMembercountry:USus-gaap:TransferredAtPointInTimeMember2022-01-012022-03-310001300699atnx:CommercialPlatformMember2021-03-310001300699atnx:AxisTherapeuticsLimitedMember2020-10-012020-12-310001300699atnx:TrancheAMemberatnx:SeniorCreditAgreementMember2020-06-190001300699us-gaap:OperatingSegmentsMemberatnx:OncologyInnovationPlatformMember2021-12-310001300699atnx:LicensedIPMember2022-01-012022-03-310001300699us-gaap:RetainedEarningsMember2022-03-310001300699us-gaap:StockCompensationPlanMember2022-01-012022-03-310001300699atnx:CustomerDMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2021-01-012021-03-310001300699country:CNatnx:OncologyInnovationPlatformMemberus-gaap:TransferredAtPointInTimeMember2021-01-012021-03-310001300699us-gaap:RetainedEarningsMember2021-03-310001300699atnx:SeniorCreditAgreementMember2022-01-012022-03-310001300699country:US2021-01-012021-03-310001300699us-gaap:OperatingSegmentsMember2022-03-310001300699atnx:SalesAgreementMemberatnx:AtTheMarketSharesMemberatnx:SVBLeerinkLLCMember2021-08-200001300699us-gaap:CommonStockMember2022-01-012022-03-310001300699atnx:TrancheCAndEMemberatnx:SeniorCreditAgreementMember2022-03-310001300699us-gaap:ParentMember2021-01-012021-03-310001300699us-gaap:AvailableforsaleSecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ShortTermInvestmentsMember2021-12-310001300699atnx:GlobalSupplyChainPlatformMembercountry:CNus-gaap:TransferredAtPointInTimeMember2021-01-012021-03-310001300699us-gaap:OperatingSegmentsMemberatnx:GlobalSupplyChainPlatformMember2022-03-310001300699us-gaap:OperatingSegmentsMemberatnx:GlobalSupplyChainPlatformMember2021-01-012021-03-310001300699atnx:TwoThousandSeventeenOmnibusIncentivePlanAndTwoThousandSeventeenEmployeeStockPurchasePlanMemberus-gaap:EmployeeStockMember2022-03-310001300699us-gaap:RetainedEarningsMember2020-12-310001300699atnx:SeniorSecuredLoanMember2021-12-310001300699atnx:ChongqingMaliuRiversideDevelopmentAndInvestmentCoLTDMember2022-01-012022-03-310001300699atnx:SeniorCreditAgreementMember2021-12-310001300699us-gaap:DiscontinuedOperationsDisposedOfBySaleMemberatnx:ImmunitybioIncorporationMember2022-01-072022-01-070001300699us-gaap:RetainedEarningsMember2021-12-310001300699us-gaap:ProductAndServiceOtherMember2021-01-012021-03-310001300699atnx:OncologyInnovationPlatformMemberus-gaap:TransferredAtPointInTimeMember2021-01-012021-03-310001300699us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001300699us-gaap:RoyaltyMember2021-01-012021-03-310001300699us-gaap:IntersegmentEliminationMemberatnx:OncologyInnovationPlatformMember2021-01-012021-03-310001300699us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001300699us-gaap:DebtInstrumentRedemptionPeriodOneMemberatnx:DunkirkTransactionMember2022-03-31utr:sqmatnx:Tranchexbrli:pureatnx:Segmentxbrli:sharesatnx:Qtriso4217:CNYatnx:Agreementatnx:Lawsuitiso4217:CNYutr:sqmiso4217:USDxbrli:sharesiso4217:USD

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 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, 2022

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: 001-38112

 

ATHENEX, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Delaware

43-1985966

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer
Identification No.)

 

 

1001 Main Street, Suite 600

Buffalo, NY

14203

(Address of principal executive offices)

(Zip Code)

 

(716) 427-2950

(Registrant’s telephone number, including area code)

 

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, par value $0.001 per share

 

ATNX

 

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, a 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 5, 2022, the registrant had 111,830,484 shares of common stock, $0.001 par value per share, outstanding.

 

 

 


 

Table of Contents

 

 

 

 

 

Page

PART I.

 

FINANCIAL INFORMATION

 

1

Item 1.

 

Financial Statements

 

1

 

 

Condensed Consolidated Balance Sheets (Unaudited)

 

1

 

 

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited)

 

2

 

 

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)

 

3

 

 

Condensed Consolidated Statements of Cash Flows (Unaudited)

 

4

 

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

5

Item 2.

 

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

 

27

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

42

Item 4.

 

Controls and Procedures

 

43

PART II.

 

OTHER INFORMATION

 

44

Item 1.

 

Legal Proceedings

 

44

Item 1A.

 

Risk Factors

 

44

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

45

Item 3.

 

Defaults Upon Senior Securities

 

45

Item 4.

 

Mine Safety Disclosures

 

46

Item 5.

 

Other Information

 

46

Item 6.

 

Exhibits

 

46

Signatures

 

47

 

 

i


 

PART I—FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements.

ATHENEX, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(unaudited)

(In thousands, except share and per share data)

 

 

 

March 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

27,224

 

 

$

35,202

 

Restricted cash

 

 

13,750

 

 

 

16,500

 

Short-term investments

 

 

10,235

 

 

 

10,207

 

Accounts receivable, net of chargebacks and other deductions of $20,546 and
   $
22,868, respectively, and provision for credit losses of $9,244 and $9,306,
   respectively

 

 

29,605

 

 

 

26,637

 

Inventories

 

 

41,253

 

 

 

34,685

 

Prepaid expenses and other current assets

 

 

9,521

 

 

 

8,885

 

Discontinued operations, current portion

 

 

 

 

 

1,280

 

Total current assets

 

 

131,588

 

 

 

133,396

 

Property and equipment, net

 

 

26,863

 

 

 

27,978

 

Intangible assets, net

 

 

71,567

 

 

 

71,896

 

Operating lease right-of-use assets, net

 

 

5,796

 

 

 

6,243

 

Other assets

 

 

1,048

 

 

 

1,087

 

Discontinued operations, non-current portion

 

 

 

 

 

26,848

 

Total assets

 

$

236,862

 

 

$

267,448

 

Liabilities and stockholders' equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

16,605

 

 

$

16,742

 

Accrued expenses

 

 

36,958

 

 

 

24,453

 

Current portion of operating lease liabilities

 

 

2,541

 

 

 

2,909

 

Current portion of long-term debt and finance lease obligations

 

 

24,680

 

 

 

46,881

 

Discontinued operations, current portion

 

 

 

 

 

5,062

 

Total current liabilities

 

 

80,784

 

 

 

96,047

 

Long-term liabilities:

 

 

 

 

 

 

Long-term operating lease liabilities

 

 

4,283

 

 

 

4,494

 

Long-term debt and finance lease obligations

 

 

102,231

 

 

 

103,456

 

Deferred tax liabilities

 

 

1,751

 

 

 

1,751

 

Contingent consideration

 

 

24,147

 

 

 

24,076

 

Other long-term liabilities

 

 

2,867

 

 

 

3,046

 

Discontinued operations, non-current portion

 

 

 

 

 

126

 

Total liabilities

 

 

216,063

 

 

 

232,996

 

Commitments and contingencies (See Note 18)

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

Common stock, par value $0.001 per share, 250,000,000 shares authorized at March 31,
   2022 and December 31, 2021;
113,448,994 and 111,802,968 shares issued at March 31,
   2022 and December 31, 2021, respectively;
111,776,074 and 110,130,048 shares
   outstanding at March 31, 2022 and December 31, 2021, respectively

 

 

113

 

 

 

111

 

Additional paid-in capital

 

 

976,119

 

 

 

972,404

 

Accumulated other comprehensive income (loss)

 

 

75

 

 

 

(487

)

Accumulated deficit

 

 

(930,832

)

 

 

(913,412

)

Less: treasury stock, at cost; 1,672,920 shares at March 31, 2022 and
   December 31, 2021

 

 

(7,485

)

 

 

(7,485

)

Total Athenex, Inc. stockholders' equity

 

 

37,990

 

 

 

51,131

 

Non-controlling interests

 

 

(17,191

)

 

 

(16,679

)

Total stockholders' equity

 

 

20,799

 

 

 

34,452

 

Total liabilities and stockholders' equity

 

$

236,862

 

 

$

267,448

 

 

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

1


 

ATHENEX, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations and Comprehensive Loss

(unaudited)

(In thousands, except share and per share data)

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Revenue:

 

 

 

 

 

 

Product sales, net

 

$

28,950

 

 

$

20,360

 

License and other revenue

 

 

774

 

 

 

20,665

 

Total revenue

 

 

29,724

 

 

 

41,025

 

Cost of sales

 

 

23,295

 

 

 

16,405

 

Gross Profit

 

 

6,429

 

 

 

24,620

 

Operating expenses:

 

 

 

 

 

 

Research and development expenses

 

 

13,990

 

 

 

23,070

 

Selling, general, and administrative expenses

 

 

14,935

 

 

 

20,736

 

Total operating expenses

 

 

28,925

 

 

 

43,806

 

Operating loss

 

 

(22,496

)

 

 

(19,186

)

Interest income

 

 

77

 

 

 

29

 

Interest expense

 

 

4,521

 

 

 

4,908

 

Loss on partial extinguishment of debt

 

 

3,501

 

 

 

 

Loss before income tax expense

 

 

(30,441

)

 

 

(24,065

)

Income tax expense

 

 

28

 

 

 

154

 

Net loss from continuing operations

 

 

(30,469

)

 

 

(24,219

)

(Gain) loss from discontinued operations (Note 4)

 

 

(12,537

)

 

 

1,384

 

Net loss

 

 

(17,932

)

 

 

(25,603

)

Less: net loss attributable to non-controlling interests

 

 

(512

)

 

 

(553

)

Net loss attributable to Athenex, Inc.

 

$

(17,420

)

 

$

(25,050

)

Unrealized gain on investment, net of income taxes

 

 

27

 

 

 

16

 

Foreign currency translation adjustment, net of income taxes

 

 

535

 

 

 

277

 

Comprehensive loss

 

$

(16,858

)

 

$

(24,757

)

Basic and diluted loss per Athenex, Inc. common share (Note 15):

 

 

 

 

 

 

Net loss from continuing operations

 

$

(0.27

)

 

$

(0.25

)

Net loss from discontinued operations

 

 

0.11

 

 

 

(0.02

)

Net loss per share attributable to Athenex, Inc. common
   stockholders, basic and diluted (See Note 15)

 

$

(0.16

)

 

$

(0.27

)

Weighted-average shares used in computing net loss per share
   attributable to Athenex, Inc. common stockholders, basic
   and diluted (See Note 15)

 

 

110,504,076

 

 

 

93,429,935

 

 

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

2


 

ATHENEX, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Stockholders’ Equity

(unaudited)

(In thousands, except share data)

 

 

 

Common Stock

 

 

Additional

 

 

 

 

 

Accumulated
other

 

 

Treasury Stock

 

 

Total
Athenex,
Inc.

 

 

Non-

 

 

Total

 

 

 

Shares

 

 

Amount

 

 

paid-in
capital

 

 

Accumulated
deficit

 

 

comprehensive
loss

 

 

Shares

 

 

Amount

 

 

stockholders'
equity

 

 

controlling
interests

 

 

stockholders'
equity

 

Balance at January 1, 2021

 

 

95,066,195

 

 

$

95

 

 

$

901,864

 

 

$

(713,644

)

 

$

(1,134

)

 

 

(1,672,920

)

 

$

(7,406

)

 

$

179,775

 

 

$

(14,427

)

 

$

165,348

 

Stock-based compensation cost

 

 

 

 

 

 

 

 

2,205

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,205

 

 

 

 

 

 

2,205

 

Restricted stock expense

 

 

 

 

 

 

 

 

29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29

 

 

 

 

 

 

29

 

Stock options exercised

 

 

119,425

 

 

 

 

 

 

852

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

852

 

 

 

 

 

 

852

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(25,050

)

 

 

 

 

 

 

 

 

 

 

 

(25,050

)

 

 

(553

)

 

 

(25,603

)

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

293

 

 

 

 

 

 

 

 

 

293

 

 

 

 

 

 

293

 

Balance at March 31, 2021 (unaudited)

 

 

95,185,620

 

 

$

95

 

 

$

904,950

 

 

$

(738,694

)

 

$

(841

)

 

 

(1,672,920

)

 

$

(7,406

)

 

$

158,104

 

 

$

(14,980

)

 

$

143,124

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Additional

 

 

 

 

 

Accumulated
other

 

 

Treasury Stock

 

 

Total
Athenex,
Inc.

 

 

Non-

 

 

Total

 

 

 

Shares

 

 

Amount

 

 

paid-in
capital

 

 

Accumulated
deficit

 

 

comprehensive
(loss) income

 

 

Shares

 

 

Amount

 

 

stockholders'
equity

 

 

controlling
interests

 

 

stockholders'
equity

 

Balance at January 1, 2022

 

 

111,802,968

 

 

$

111

 

 

$

972,404

 

 

$

(913,412

)

 

$

(487

)

 

 

(1,672,920

)

 

$

(7,485

)

 

$

51,131

 

 

$

(16,679

)

 

$

34,452

 

Sale of common stock through ATM, net of costs of $52

 

 

1,646,026

 

 

 

2

 

 

 

1,693

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,695

 

 

 

 

 

 

1,695

 

Stock-based compensation cost

 

 

 

 

 

 

 

 

1,623

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,623

 

 

 

 

 

 

1,623

 

Restricted stock expense

 

 

 

 

 

 

 

 

251

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

251

 

 

 

 

 

 

251

 

Issuance of warrant

 

 

 

 

 

 

 

 

148

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

148

 

 

 

 

 

 

148

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(17,420

)

 

 

 

 

 

 

 

 

 

 

 

(17,420

)

 

 

(512

)

 

 

(17,932

)

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

562

 

 

 

 

 

 

 

 

 

562

 

 

 

 

 

 

562

 

Balance at March 31, 2022 (unaudited)

 

 

113,448,994

 

 

$

113

 

 

$

976,119

 

 

$

(930,832

)

 

$

75

 

 

 

(1,672,920

)

 

$

(7,485

)

 

$

37,990

 

 

$

(17,191

)

 

$

20,799

 

 

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

3


 

ATHENEX, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(unaudited)

(In thousands)

 

 

 

Three Months Ended March 31,

 

 

 

2022

 

 

2021

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss from continuing operations

 

$

(30,469

)

 

$

(24,219

)

Net gain (loss) from discontinued operations

 

 

12,537

 

 

 

(1,384

)

Adjustments to reconcile net loss to net cash used in operating activities of continuing operations:

 

 

 

 

 

 

Depreciation and amortization

 

 

872

 

 

 

1,259

 

Stock-based compensation expense

 

 

1,874

 

 

 

2,234

 

Amortization of debt discount

 

 

643

 

 

 

779

 

Change in fair value of contingent consideration

 

 

71

 

 

 

 

Loss on disposal of assets and impairment charges

 

 

78

 

 

 

 

Loss on partial extinguishment of debt

 

 

3,501

 

 

 

 

Deferred income taxes

 

 

 

 

 

2

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Receivables, net

 

 

(2,968

)

 

 

3,414

 

Prepaid expenses and other assets

 

 

(596

)

 

 

(2,234

)

Inventories

 

 

(6,568

)

 

 

2,523

 

Accounts payable and accrued expenses

 

 

15,096

 

 

 

(13,446

)

Net cash used in operating activities of continuing operations

 

 

(18,466

)