IDEAYA Biosciences, Inc. Annual Report Summary for Retail Investors

IDEAYA Biosciences, Inc. delivered a transformative year in 2025, marked by significant financial growth and pipeline advancements. This annual report summary provides retail investors with a clear overview of the company's performance, financial health, and strategic direction for the fiscal year ended December 31, 2025.

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1. Business Overview

IDEAYA Biosciences, a clinical-stage oncology company, focuses on developing targeted cancer therapies through precision oncology. This innovative approach creates treatments tailored to the unique genetic characteristics of a patient's tumor. The company specializes in two key areas:

• Synthetic lethality: This strategy targets two genes that are individually harmless but become lethal to cancer cells when both are affected.
• Antibody-drug conjugates (ADCs): These deliver potent chemotherapy directly to cancer cells.

IDEAYA aims to develop groundbreaking, "first-in-class" drugs and deploy them in "rational combinations" earlier in the disease course. Its pipeline features drug candidates for uveal melanoma, MTAP-deleted cancers, and various other solid tumors, all leveraging novel mechanisms of action.

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2. Financial Performance

As a clinical-stage company, IDEAYA currently generates no product revenue. Instead, it derives all income from collaboration agreements.

• Revenue: Total revenue reached $215.3 million in 2025, a significant jump from $52.1 million in 2024. The upfront payment from the Servier partnership in 2025 primarily drove this growth.
• Research & Development (R&D) Expenses: R&D expenses totaled $250.5 million in 2025, a slight decrease from $260.8 million in 2024. This reflects strategic prioritization while the company maintains a robust pipeline.
• General & Administrative (G&A) Expenses: G&A expenses increased to $78.5 million in 2025 from $65.8 million in 2024, reflecting expanded operational scale and infrastructure.
• Net Loss: IDEAYA substantially reduced its net loss, reporting $113.7 million for 2025, a significant improvement from $274.5 million in 2024. Increased collaboration revenue largely drove this reduction.
• Accumulated Deficit: As of December 31, 2025, the company's accumulated deficit (total losses since inception) stood at $736.5 million.

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3. Risk Factors

Investing in a clinical-stage biotechnology company like IDEAYA involves inherent risks, such as:

• Clinical Trial Failures: Drug candidates may fail to demonstrate efficacy or acceptable safety profiles in clinical trials, or they may not meet regulatory approval criteria. This could significantly devalue the company's pipeline.
• Collaboration Terminations: As seen with GSK, partners can terminate agreements, forcing IDEAYA to cover full development costs or abandon programs.
• Intense Competition: The highly competitive oncology market means IDEAYA competes with larger pharmaceutical companies that possess greater resources and established products, as well as other biotechs developing similar therapies. For instance, in the DLL3-targeting ADC space (IDE849), Amgen already has an approved drug, and several other major players are conducting advanced trials.
• Regulatory Hurdles: Obtaining regulatory approvals (e.g., from the FDA) is a lengthy, complex, and uncertain process, with no guarantee of success.
• Funding Risk: Though currently well-capitalized, IDEAYA is not yet profitable and will need substantial additional funding to bring products to market. Future financing rounds could dilute existing shareholders.
• Intellectual Property (IP) Risk: The company's success hinges on its ability to secure, maintain, and enforce patent protection for its drug candidates. Challenges to or expiration of patents could negatively impact its competitive standing.
• Product Liability: If any of its drug candidates gain approval and commercialization, IDEAYA could face significant product liability claims.
• Dependence on Key Personnel: Losing key scientific or management personnel could adversely affect the company's operations and development timelines.
• Market Acceptance: Even if approved, there is no guarantee physicians and patients will adopt IDEAYA's therapies over existing or future treatments.
• Reliance on Third Parties: The company relies on contract research organizations (CROs) and contract manufacturing organizations (CMOs) for clinical trials and drug supply, exposing it to risks from third-party performance.

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4. Management Discussion & Analysis (MD&A) Highlights

This section provides context for IDEAYA's financial condition, operational results, and strategic developments.

• Results of Operations:
  • Revenue: Revenue surged from $52.1 million in 2024 to $215.3 million in 2025. This substantial increase primarily stemmed from recognizing the $210 million upfront payment received in August 2025 from the Servier partnership, which granted commercial rights to darovasertib outside the U.S. This payment significantly strengthened the company's financial position and validated its lead program.
  • Research & Development (R&D) Expenses: R&D expenses saw a slight decrease, from $260.8 million in 2024 to $250.5 million in 2025. This reflects management's strategic prioritization of pipeline programs. While IDEAYA continued significant investment in advancing darovasertib and other key programs, it optimized certain expenditures. The termination of some partnered programs by GSK (IDE705 and IDE275, effective March 2026) will impact future R&D spending, requiring IDEAYA to re-evaluate funding for these programs.
  • General & Administrative (G&A) Expenses: G&A expenses rose from $65.8 million in 2024 to $78.5 million in 2025. This increase reflects the company's expanding operational scale, increased headcount, and infrastructure investments, including new laboratory and office facilities.
  • Net Loss: IDEAYA dramatically reduced its net loss from $274.5 million in 2024 to $113.7 million in 2025. This significant improvement directly resulted from the substantial increase in collaboration revenue, partially offset by higher G&A expenses. It demonstrates improved financial leverage from strategic partnerships.
• Liquidity and Capital Resources: As detailed in the "Financial Health" section, IDEAYA maintains a strong cash position. Net cash used in operating activities improved significantly, dropping from approximately $270.0 million in 2024 to $110.0 million in 2025, reflecting higher collaboration revenue and more efficient cash management. The company primarily funds its operations through equity offerings and upfront payments from strategic collaborations. Management believes its current cash, cash equivalents, and marketable securities will fund planned operations for at least twelve months from the annual report filing date.
• Strategic Developments and Market Environment: The past year brought significant pipeline progress, including completing enrollment for the pivotal Phase 2/3 OptimUM-02 trial for darovasertib. The Servier partnership proved a major win, providing substantial non-dilutive capital and validating darovasertib's potential. Positive early clinical data for IDE397 combined with Trodelvy was encouraging, and multiple FDA clearances (INDs for IDE892, IDE034, IDE574) enabled pipeline expansion. However, GSK's termination of collaborations for IDE705 and IDE275 presents a challenge, requiring IDEAYA to re-evaluate these programs for potential self-funding or new partnerships. The company continues to invest in its internal drug discovery platforms (INQUIRE, HARMONY) and expand its operational footprint. The broader oncology market continues to shift towards precision medicine and ADCs, aligning with IDEAYA's core strategy, and positive regulatory momentum is evidenced by multiple IND clearances.

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5. Financial Health

IDEAYA maintains a strong financial position, supporting its ongoing operations and pipeline development.

• Cash Position: As of December 31, 2025, IDEAYA held a robust cash position of approximately $1.05 billion in cash, cash equivalents, and marketable securities, including the Servier upfront payment.
• Net Cash Used in Operating Activities: In 2025, net cash used in operating activities totaled approximately $110.0 million, a significant improvement from approximately $270.0 million in 2024. This reflects better cash management and higher collaboration revenue.
• Debt: The company reported no significant long-term debt as of December 31, 2025, indicating a healthy balance sheet.
• Liquidity Runway: Management believes its current cash, cash equivalents, and marketable securities will fund planned operations for at least twelve months from the annual report filing date (February 17, 2026).
• Funding Strategy: The company primarily funds operations through equity offerings and upfront payments from strategic collaborations.
• Dividends: IDEAYA has not paid cash dividends to date and does not anticipate doing so in the foreseeable future, as it reinvests all capital into drug development.
• Shares Outstanding: As of February 13, 2026, approximately 87.8 million shares of common stock were outstanding.

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6. Future Outlook

IDEAYA anticipates a busy and potentially transformative year ahead, with several key milestones expected in 2026 and beyond. The company's core strategy remains consistent: advance darovasertib toward commercialization, strategically progress other promising precision oncology therapies, leverage internal innovation, form strategic partnerships, and ensure targeted therapies reach appropriate patient populations.

• Darovasertib:
  • Early 2026: Release of critical top-line data from the OptimUM-02 trial.
  • Mid-2026: Initiate the OptimUM-11 Phase 3 trial and complete enrollment for OptimUM-01.
  • Mid-2027: Complete enrollment for OptimUM-10.
• ADC/DDR Pathway:
  • Early 2026: First patient dosing for IDE034 in Phase 1.
  • Mid-2026: Initiate a Phase 1 combination trial for IDE161 with IDE849.
  • End of 2026: Aim to initiate a monotherapy registrational trial for IDE849.
  • Ongoing: Conduct preclinical studies for IDE705 to evaluate its potential in ADC/DDR combinations.
• MTAP Pathway:
  • 2026: Release additional data from the IDE397 + Trodelvy combination trial.
  • Early 2026: Initiate Phase 1 trials for IDE892.
  • Mid-2026: Plan combination trials of IDE892 with IDE397.
  • Late 2026: Aim to identify a new drug candidate for CDKN2A (another MTAP-related target).
  • Early 2027: Submit the new CDKN2A candidate for FDA review.
• Next-Gen Therapies:
  • Early 2026: Initiate Phase 1 trials for IDE574.
• IDE275:
  • Post-March 9, 2026: Intends to continue the dose expansion part of the Phase 1 trial independently after GSK's transfer.

IDEAYA remains committed to building a deep pipeline of new, differentiated precision therapies for cancer patients. It leverages its proprietary discovery platforms (INQUIRE, HARMONY) and expands its operational footprint with new facilities in South San Francisco and San Diego.

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7. Competitive Position

IDEAYA aims to differentiate itself by developing "first-in-class" precision oncology therapies, focusing on novel mechanisms and patient populations. However, the company operates in a highly competitive landscape.

• Darovasertib (Uveal Melanoma): While other treatments for metastatic uveal melanoma (UM) exist (e.g., Immunocore's Kimmtrak), IDEAYA is not aware of other companies actively developing drugs that specifically target PKC (darovasertib's mechanism) for solid tumors. This could offer a unique advantage.
• IDE849 (DLL3-targeting ADC): This is a crowded field. Amgen's Tarlatamab is an approved DLL3-targeting drug, and other large pharmaceutical companies like Zai Lab, Roche, Boehringer Ingelheim, and Daiichi Sankyo are developing similar therapies, some in late-stage trials. IDEAYA's partnership with Hengrui Pharma aims to leverage regional expertise and accelerate development in specific markets.
• IDE034 (B7H3 and PTK7 bi-specific ADC): IDEAYA believes its dual-target approach for B7H3 and PTK7 may offer a differentiated profile. The company is not aware of direct competitors employing this specific bispecific ADC strategy, although many companies target B7H3 or PTK7 individually.

Overall, IDEAYA seeks to carve out market niches through its scientific expertise and focus on unique targets. However, it must contend with the significant resources and pipelines of established pharmaceutical companies. The company's strategy involves developing "first-in-class" drugs and using them in "rational combinations" to enhance efficacy and expand patient populations, thereby strengthening its competitive stance.