0001679082-22-000071 | 10-K | XBRL Viewer

Loss on extinguishment of debt

^[3]

13,971,000

10,401,000

12,663,000

4,851,000

Interest income

(384,000)

(211,000)

(2,552,000)

Foreign currency transaction gain

(16,176,000)

(1,621,000)

Loss before income taxes

(200,933,000)

(254,798,000)

(288,228,000)

Income tax expense

5,048,000

336,000

761,000

Net loss

$ (205,981,000)

$ (255,134,000)

$ (288,989,000)

Net loss per common share - basic (in dollars per share)

$ (2.22)

$ (2.83)

$ (3.37)

Net loss per common share - diluted (in dollars per share)

$ (2.22)

$ (2.83)

$ (3.37)

Weighted average common share outstanding - basic (in shares)

92,974,887

90,036,459

85,839,303

Weighted average common share outstanding - diluted (in shares)

92,974,887

90,036,459

85,839,303

Product revenue, net

Revenues

$ 94,309,000

$ 3,630,000

$ 0

Cost of revenue

11,510,000

301,000

Richter license and milestone revenue

Revenues

$ 31,667,000

$ 33,333,000

$ 0

[1]	Includes $4,842 and $5,330 of related party expense (inclusive of third-party pass-through costs) for the years ended March 31, 2022 and 2021, respectively
[2]	Includes $58 of related party expense (inclusive of third-party pass-through costs) for the year ended March 31, 2021. There was no related party expense included in research and development expense for the year ended March 31, 2022
[3]	Includes $11,551, $9,766, and $1,441 of interest expense under the Sumitomo Pharma Loan Agreement for the years ended March 31, 2022, 2021, and 2020, respectively

Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Thousands

12 Months Ended

Mar. 31, 2022

Mar. 31, 2021

Mar. 31, 2020

Majority Shareholder | SG&A expense | Sunovion Pharmaceuticals Inc. Market Access Services Agreement

^[1]

$ 13,971

$ 10,401

$ 12,663

Majority Shareholder | MSG | Sunovion Pharmaceuticals Inc. Market Access Services Agreement

4,842

5,330

Majority Shareholder | MSG | SG&A expense | Sunovion Pharmaceuticals Inc. Market Access Services Agreement

3,800

Majority Shareholder | MSG | R&D expense | Sunovion Pharmaceuticals Inc. Market Access Services Agreement

4,800

3,700

Majority Shareholder | Sumitomo Dainippon Pharma Co., Ltd. | Term Loan | Letter Agreement with Sumitomo Dainippon Pharma, Co., Ltd.

$ 11,551

$ 9,766

$ 1,441

[1]	Includes $11,551, $9,766, and $1,441 of interest expense under the Sumitomo Pharma Loan Agreement for the years ended March 31, 2022, 2021, and 2020, respectively

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2020
Statement of Comprehensive Income [Abstract]
Net loss	$ (205,981)	$ (255,134)	$ (288,989)
Other comprehensive loss:
Foreign currency translation adjustment	0	(15,639)	(2,153)
Total other comprehensive loss	0	(15,639)	(2,153)
Comprehensive loss	$ (205,981)	$ (270,773)	$ (291,142)

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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Cash flows from operating activities:

Consolidated Statements of Shareholders' Deficit - USD ($) $ in Thousands	Total	Common Shares	Additional Paid-in Capital	Accumulated Other Comprehensive (Income) Loss	Accumulated Deficit	Private Placement	Private Placement Common Shares	Private Placement Additional Paid-in Capital	Public Offering	Public Offering Common Shares	Public Offering Additional Paid-in Capital
Beginning balance (in shares) at Mar. 31, 2019		72,057,490
Beginning balance at Mar. 31, 2019	$ 4,334	$ 1	$ 505,851	$ 507	$ (502,025)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares issued (in shares)							106,494			17,424,243
Shares issued						$ 2,546		$ 2,546	$ 134,458	$ 1	$ 134,457
Share-based compensation	40,102		40,102
Capital contribution from former majority shareholder — share-based compensation	149		149
Capital contribution from former majority shareholder	334		334
Issuance of shares upon exercise of stock options (in shares)		245,771
Issuance of shares upon exercise of stock options and release of share awards	942		942
Foreign currency translation adjustment	(2,153)			(2,153)
Net loss	(288,989)				(288,989)
Ending balance (in shares) at Mar. 31, 2020		89,833,998
Ending balance at Mar. 31, 2020	(108,277)	$ 2	684,381	(1,646)	(791,014)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	53,676		53,676
Share-based compensation awards reclassified to current liabilities	(17,473)		(17,473)
Share-based compensation liabilities reclassified to equity upon settlement of awards	6,446		6,446
Share-based compensation reclassified to current liabilities	(10,609)		(10,609)
Issuance of shares upon release of share awards, net of shares withheld for taxes (in shares)		261,095
Issuance of shares upon release of share awards, net of shares withheld for taxes	(13,664)
Issuance of shares upon exercise of stock options (in shares)		905,776
Issuance of shares upon exercise of stock options and release of share awards	6,709		6,709
Foreign currency translation adjustment	(15,639)			(15,639)
Net loss	$ (255,134)				(255,134)
Ending balance (in shares) at Mar. 31, 2021	91,000,869	91,000,869
Ending balance at Mar. 31, 2021	$ (353,965)	$ 2	709,466	(17,285)	(1,046,148)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	38,928		38,928
Share-based compensation liabilities reclassified to equity upon settlement of awards	23,335		23,335
Share-based compensation reclassified to current liabilities	$ (1,699)		(1,699)
Issuance of shares upon exercise of stock options (in shares)	2,513,887	3,857,577
Issuance of shares upon exercise of stock options and release of share awards	$ 24,625		24,625
Foreign currency translation adjustment	0
Capital contribution - other	1,280		1,280
Net loss	$ (205,981)				(205,981)
Ending balance (in shares) at Mar. 31, 2022	94,858,446	94,858,446
Ending balance at Mar. 31, 2022	$ (473,477)	$ 2	$ 795,935	$ (17,285)	$ (1,252,129)

Consolidated Statements of Shareholders' Equity (Deficit) (Parenthetical) $ in Thousands	12 Months Ended
	Mar. 31, 2020 USD ($)
Private Placement
Issuance costs	$ 79
Public Offering
Issuance costs	$ 9,292

Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

12 Months Ended

Mar. 31, 2022

Mar. 31, 2021

Mar. 31, 2020

Net loss

$ (205,981)

$ (255,134)

$ (288,989)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

Share-based compensation

38,928

53,676

40,251

Depreciation

1,378

988

673

Non-cash interest expense

^[1]

2,413

635

1,486

Loss on extinguishment of debt

4,851

Foreign currency transaction gain

(16,176)

(1,621)

Amortization of operating lease right-of-use assets

1,694

1,491

1,092

Other

537

(359)

Changes in operating assets and liabilities:

Accounts receivable

(19,726)

(3,570)

Inventories

(4,973)

(2,611)

Prepaid expenses and other current assets

(8,962)

(5,267)

1,925

Amount due from related party

(580)

Income tax receivable

524

Other assets

(6,421)

(1,441)

(10)

Accounts payable

(5,617)

2,457

4,315

Interest payable

(1,077)

Accrued expenses and other current liabilities

23,982

15,552

(24,675)

Deferred revenue

(21,663)

457,933

40,000

Amounts due to Pfizer

30,609

1,954

Cost share advance from Pfizer

(90,457)

121,227

Operating lease liabilities

(1,807)

(1,516)

(882)

Deferred interest payable

(2,273)

Amounts due to related parties

(150)

528

Other liabilities

(1,236)

(635)

3,582

Net cash (used in) provided by operating activities

(268,559)

370,628

(221,172)

Cash flows from investing activities:

Purchases of marketable securities

(118,748)

(63,824)

(32,076)

Maturities of marketable securities

101,700

33,261

29,240

Sales of marketable securities

23,125

Purchases of property and equipment

(974)

(1,773)

(1,099)

Net cash used in investing activities

(18,022)

(9,211)

(3,935)

Cash flows from financing activities:

Capital contribution -other

1,280

Proceeds from issuance of common shares, net of issuance costs paid

137,004

Proceeds from related party debt financing

245,000

113,700

Proceeds from stock option exercises

24,625

6,709

942

Payment of tax withholding on net settlement of share awards

(13,664)

Payment of third-party debt financings and redemption and administration fees

(105,720)

Net cash provided by financing activities

25,905

238,045

145,926

Net change in cash, cash equivalents and restricted cash

(260,676)

599,462

(79,181)

Cash, cash equivalents and restricted cash, beginning of period

677,480

78,018

157,199

Cash, cash equivalents and restricted cash, end of period

416,804

677,480

78,018

Supplemental Disclosure of Non-Cash Financing and Investing Information:

Reclassification of share-based compensation awards from additional paid-in capital to current liabilities

17,473

Change in fair value of share-based awards recorded to additional paid-in capital

1,699

10,609

Reclassification of share-based compensation liabilities to additional paid-in capital upon settlement or maturity of awards

23,335

6,446

Equipment purchases included in accounts payable

Supplemental Disclosure of Cash Flow Information:

Income taxes paid

3,542

513

Interest paid

13,030

Interest (related party) paid

$ 11,551

$ 9,819

$ 1,426

[1]	Includes imputed interest on cost share advance from Pfizer for the years ended March 31, 2022 and 2021. Includes amortization of debt discount and issuance costs for the year ended March 31, 2020.

Description of Business	12 Months Ended
Description of Business	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business Myovant Sciences Ltd. (together with its wholly-owned subsidiaries, the “Company”) is a biopharmaceutical company that aspires to redefine care for women and for men through purpose-driven science, empowering medicines, and transformative advocacy. Founded in 2016, the Company has two FDA-approved products: (1) ORGOVYX® (relugolix 120 mg), which was approved in the U.S. by the U.S. Food and Drug Administration (“FDA”) in December 2020 as the first and only oral gonadotropin-releasing hormone (“GnRH”) receptor antagonist for the treatment of adult patients with advanced prostate cancer; and (2) MYFEMBREE® (relugolix 40 mg, estradiol 1.0 mg, and norethindrone acetate 0.5 mg), which was approved in the U.S. by the FDA in May 2021 as the first and only once-daily oral GnRH treatment for the management of heavy menstrual bleeding associated with uterine fibroids. In July 2021, the European Commission (“EC”), and in August 2021, the United Kingdom (“U.K.”) Medicines and Healthcare products Regulatory Agency (“MHRA”), approved RYEQO® (relugolix 40 mg, estradiol 1.0 mg, and norethindrone acetate 0.5 mg) as the first and only long-term, once-daily oral treatment in the European Union (“EU”) and U.K., respectively, for moderate to severe symptoms of uterine fibroids in adult women of reproductive age. In April 2022, the EC approved ORGOVYX (relugolix 120 mg) as the first and only oral androgen deprivation therapy for advanced hormone-sensitive prostate cancer in Europe. In September 2021, the FDA accepted to review the Company’s supplemental New Drug Application (“sNDA”) for MYFEMBREE for the management of moderate to severe pain associated with endometriosis. On May 6, 2022, the Company and Pfizer announced that the FDA extended the Prescription Drug User Fee Act (“PDUFA”) goal date for this sNDA to August 6, 2022. MYFEMBREE is being evaluated for contraceptive efficacy in women with heavy menstrual bleeding associated with uterine fibroids or endometriosis-associated pain who are 18 to 50 years of age and at risk for pregnancy. The Company is also developing MVT-602, an investigational oligopeptide kisspeptin-1 receptor agonist, which has completed a Phase 2a study for the treatment of female infertility as a part of assisted reproduction. Since its inception, the Company has funded its operations primarily from the issuance and sale of its common shares, from debt financing arrangements, and more recently from the upfront and regulatory milestone payments it has received from its collaboration and commercialization partners, as well as net revenues generated from sales of ORGOVYX and MYFEMBREE in the U.S., and to a lesser extent from revenues generated from sales of product supply to Gedeon Richter Plc. (“Richter”) as well as royalties on net sales of RYEQO in Richter’s Territory. The Company’s majority shareholder is Sumitovant Biopharma Ltd. (“Sumitovant”), a wholly-owned subsidiary of Sumitomo Pharma Co., Ltd. (“Sumitomo Pharma”), the name of which prior to April 1, 2022 was Sumitomo Dainippon Pharma Co., Ltd. As of March 31, 2022, Sumitovant directly, and Sumitomo Pharma indirectly, own 50,041,181, or approximately 52.8%, of the Company’s outstanding common shares.

Summary of Significant Accounting Policies

12 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Basis of Presentation

The Company’s fiscal year ends on March 31, and its first three fiscal quarters end on June 30, September 30 and December 31. The Company manages its operations as a single segment for purposes of assessing performance, making operating decisions, and allocating resources. This one operating and reporting segment primarily focuses on the development and commercialization of innovative medicines in areas of unmet medical need.

The accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). Any reference in these notes to applicable accounting guidance is meant to refer to the authoritative U.S. GAAP included in the Accounting Standards Codification (“ASC”), and Accounting Standards Update (“ASU”) issued by the Financial Accounting Standards Board (“FASB”). The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Liquidity and Capital Resources

As of March 31, 2022, the Company had approximately $434.2 million in cash, cash equivalents, and marketable securities. The Company believes that its existing cash, cash equivalents, and marketable securities will be sufficient to fund its anticipated operating expenses and capital expenditure requirements for at least the next 12 months from the date of issuance of this Annual Report on Form 10-K (“Annual Report”).

In future periods, if the Company’s cash, cash equivalents, marketable securities, and amounts that it expects to generate from product sales and/or third-party collaboration payments are not sufficient to enable the Company to fund its operations, the

Company may need to raise additional funds in the form of equity, debt, or from other sources. There can be no assurances that such funding sources will be available at terms acceptable to the Company, or at all. If the Company has insufficient funding to meet its working capital needs, it could be required to delay, limit, reduce, or terminate its drug development programs, commercialization efforts, and/or limit or cease operations.

As of March 31, 2022, the Company had approximately $41.3 million of borrowing capacity available to it under the Sumitomo Pharma Loan Agreement (see Note 6(A)). As of March 31, 2022, the Company is also eligible to earn up to $3.6 billion and $122.5 million of additional milestone payments from Pfizer and Richter pursuant to the Pfizer Collaboration and License Agreement (see Note 13(B)) and the Richter Development and Commercialization Agreement (see Note 13(A)), respectively, as well as potential royalty payments on net sales under the Richter Development and Commercialization Agreement.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the accompanying notes, and the reported amounts of revenue and expenses during the reported periods. Actual results could differ materially from those estimates.

On an ongoing basis, the Company’s management evaluates its estimates, including those related to valuation of inventories, impairment testing for long-lived-assets, variables used in calculating the fair value of the Company’s equity awards, expected achievement of performance-based vesting criteria for equity awards, variable consideration and other relevant inputs impacting the gross and net revenue recognition, contingent liabilities, recoverability of deferred tax assets, determination of lease term, research and development (“R&D”) expenses and accruals, and effective income tax rates. Management bases estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period, that are not readily apparent from other sources. Estimates and assumptions are periodically reviewed considering changes in circumstances, facts, or experience. Changes in estimates and assumptions are reflected in reported results in the period in which they become known. In addition, management’s assessment of the Company’s ability to continue as a going concern involves the estimation of the amount and timing of future cash inflows and outflows.

The Company has assessed the impact that the COVID-19 pandemic and the conflict in Ukraine has had on its operations and financial results as of March 31, 2022, and through May 11, 2022, the issuance date of these consolidated financial statements. The Company’s analysis was informed by the facts and circumstances as they were known to the Company. Through May 11, 2022, the Company’s results of operations and cash flows have not been significantly impacted by the COVID-19 pandemic or the conflict in Ukraine. The Company is not aware of any specific event or circumstance that would require an update to its estimates, judgments, and assumptions or a revision of the carrying value of the Company’s assets or liabilities as of May 11, 2022.

Reclassifications

Certain reclassifications have been made to the consolidated statements of cash flows for the years ended March 31, 2021, and 2020 to place them on a comparable basis with the year ended March 31, 2022, regarding the presentation of amortization of operating lease right-of-use assets of $1.5 million and $1.1 million, respectively. The reclassifications had no effect on the previously reported results of operations. The reclassifications had no effect on previously reported cash flows from operating activities in the consolidated statements of cash flows.

Risks and Uncertainties

The Company is subject to risks and uncertainties common to companies in the biotechnology and pharmaceutical industries, including, but not limited to, risks of failure or unsatisfactory results of nonclinical and clinical studies, the need for significant capital to fund the development of its product candidates and the commercialization of any product candidates that may obtain marketing approval, the need to obtain marketing approval for its product candidates, the need to successfully commercialize and gain market acceptance of any of its product candidates that obtain regulatory approval, dependence on strategic relationships with collaboration and commercialization partners and on key personnel, securing and protecting proprietary technology, compliance with government regulations, development by competitors of technological innovations, ability to transition from pilot-scale manufacturing to large-scale production of products, and dependence on third-party service providers such as contract research organizations (“CROs”), contract manufacturing organizations (“CMOs”), other suppliers, and third-party logistics providers.

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk include cash, cash equivalents, and marketable securities. The Company is exposed to credit risk in the event of default by the financial institutions holding its cash and the issuers of its cash equivalents and marketable securities. The Company maintains its cash deposits and cash equivalents in highly-rated, federally-insured financial institutions in excess of federally insured limits. The Company has established guidelines relative to diversification and maturities of investments to maintain safety and liquidity. The Company has not historically experienced any significant credit losses related to these financial instruments and does not believe that it is exposed to any significant credit risk related to these instruments.

The Company is also subject to credit risk from accounts receivable from product sales, amount due from its related party, and amounts due from its collaboration and commercialization partners. The Company monitors its exposure and records a reserve against uncollectible amounts as necessary.

For the year ended March 31, 2022, four customers represented 87% of the Company’s ORGOVYX and MYFEMBREE product revenue, net and each of these customers represented 10% or greater of the Company’s ORGOVYX and MYFEMBREE product revenue, net. As of March 31, 2022, three customers represented 82% of the Company’s accounts receivable, and each of these customers represented 10% or greater of the Company’s accounts receivable. For the year ended March 31, 2021, four customers represented 90% of the Company’s product revenue, net and 95% of the Company’s accounts receivable as of March 31, 2021, and each of these customers represented 10% or greater of the Company’s product revenue, net and accounts receivable. The Company had no product sales for the year ended March 31, 2020.

Cash, Cash Equivalents, and Restricted Cash

Cash and cash equivalents include cash deposits in banks and all highly liquid investments that are readily convertible to cash (maturity of three months or less at the time of purchase). Interest income consists of interest earned and the accretion of discounts to maturity for cash equivalents and marketable securities.

Restricted cash consists of funds held or designated to satisfy the requirements of certain agreements that are restricted in their use. As of March 31, 2022, and 2021, restricted cash includes approximately $7.1 million and $1.0 million, respectively, that is held in an escrow fund for use by Sunovion Pharmaceuticals Inc. (“Sunovion”), a subsidiary of Sumitomo Pharma, to manage payments for rebates, chargebacks, and similar fees pursuant to the Market Access Services Agreement (see Note 6(C)).

The following represents a reconciliation of cash and cash equivalents on the consolidated balance sheets to total cash, cash equivalents and restricted cash in the consolidated statements of cash flows (in thousands):


	March 31,
	2022		2021		2020
Cash and cash equivalents	$	406,704	$	674,493	$	76,644
Restricted cash (included in other assets)	10,100		2,987		1,374
Total cash, cash equivalents and restricted cash	$	416,804	$	677,480	$	78,018

Accounts Receivable, Net

The Company’s accounts receivable consists of amounts due from customers related to product sales and have standard payment terms. For certain customers, the accounts receivable for the customer is net of prompt payment discounts. The Company monitors the financial performance and creditworthiness of its customers so that it can properly assess and respond to changes in their credit profile. The Company reserves against accounts receivable for estimated losses that may arise from a customer’s inability to pay, and any amounts determined to be uncollectible are written off against the reserve when it is probable that the receivable will not be collected. The Company has historically not experienced significant credit losses and no amounts were reserved for estimated losses as of March 31, 2022, and 2021.

Marketable Debt Securities

Investments in marketable debt securities are held in custodial accounts at a financial institution and managed by the Company’s investment advisor based on the Company’s investment guidelines. The Company considers all highly liquid investments in securities with a maturity of greater than three months at the time of purchase to be marketable securities.

The Company classifies its marketable debt securities as available-for-sale at the time of purchase and reevaluates such designation at each balance sheet date. Unrealized gains and losses on available-for-sale securities are excluded from earnings and are recorded in accumulated other comprehensive (loss) income until realized. Any unrealized losses are evaluated for

other-than-temporary impairment at each balance sheet date. Realized gains and losses are determined based on the specific identification method.

The Company does not intend to sell its marketable debt securities that are in an unrealized loss position, and it is unlikely that the Company will be required to sell its marketable debt securities before recovery of their amortized cost basis, which may be maturity. Factors considered in determining whether a loss is temporary include the length of time and extent to which the fair value has been less than the amortized cost basis and whether the Company intends to sell the security or whether it is more likely than not that the Company would be required to sell the marketable debt security before recovery of the amortized cost basis. See Note 4 for additional information.

Fair Value Measurements

The Company utilizes fair value measurement guidance prescribed by accounting standards to value its financial instruments. The guidance establishes a fair value hierarchy for financial instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances.

Fair value is defined as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy contains three levels of inputs that may be used to measure fair value, in accordance with ASC 820, Fair Value Measurement, of which the first two are considered observable and the last is considered unobservable. These levels are as follows:

•Level 1—inputs, which include unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access;

•Level 2—inputs, which include observable inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability; and

•Level 3—inputs, which include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies, or similar valuation techniques, as well as significant management judgment or estimation.

To the extent the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

The recorded amounts of certain financial instruments, including cash, cash equivalents, accounts receivable, accounts payable, accrued liabilities, amounts due to Pfizer, and amounts due to and due from related parties, approximate fair value due to their relatively short maturities. Marketable debt securities that are classified as available-for-sale are recorded at estimated fair value and are included in Level 2 of the fair value hierarchy. The fair value of marketable debt securities is based on market prices from a variety of industry standard data providers and generally represents quoted prices for similar assets in active markets or have been derived from observable market data. Cost share advance from Pfizer is recorded at its estimated fair value and is included in Level 2 of the fair value hierarchy. Share-based compensation liabilities related to stock options are remeasured at fair value on a recurring basis using the Black-Scholes option pricing model and are included in Level 2 of the fair value hierarchy. Share-based compensation liabilities related to common shares are remeasured at fair value on a recurring basis and are included in Level 1 of the fair value hierarchy.

Inventories

The Company values its inventories at the lower-of-cost or net realizable value and determines the cost of inventories using the average-cost method. Net realizable value is the estimated selling prices in the ordinary course of the Company’s business, less reasonably predictable costs of completion, disposal, and transportation. The cost basis of the Company’s inventories is reduced for any products that are considered excessive or obsolete based upon assumptions about future demand and market conditions.

Inventories include the cost for raw materials, the cost to manufacture the raw materials into finished goods, and overhead. Due to the nature of the Company’s supply chain process, inventory that is owned by the Company is physically stored at third-party warehouses, logistics providers and contract manufacturing organizations.

The Company performs an assessment of the recoverability of inventories during each reporting period and writes down any excess and obsolete inventories to their net realizable value in the period in which the impairment is first identified. If they occur, such impairment charges are recorded as a component of cost of goods sold in the consolidated statements of operations.

The Company capitalizes inventory costs associated with products following regulatory approval when based on management’s judgement, future commercialization is considered probable, and the future economic benefit is expected to be realized. As such, the manufacturing costs for product candidates incurred prior to regulatory approval are not capitalized, but rather expensed as R&D expenses when incurred.

Property and Equipment, net

Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, ranging from three to seven years once the asset is installed and placed into service. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the assets. Maintenance and repairs are charged to expense as incurred. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the consolidated balance sheet and any resulting gain or loss is reflected in operations in the period realized.

The Company reviews the recoverability of its long-lived assets, including the related useful lives, whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset might not be recoverable, based on undiscounted cash flows. If such assets are considered to be impaired, an impairment loss is recognized and is measured as the amount by which the carrying amount of the assets exceed their estimated fair value, which is measured based on the projected discounted future net cash flows arising from the assets.

Leases

The Company determines if an arrangement includes a lease at the inception of the agreement. For each of the Company’s lease arrangements, the Company records a right-of-use asset representing the Company’s right to use an underlying asset for the lease term and a lease liability representing the Company’s obligation to make lease payments. Operating lease right-of-use assets and operating lease liabilities are recognized at the lease commencement date based on the net present value of the remaining future minimum lease payments over the lease term. If the interest rate implicit in the Company’s leases is not readily determinable, in determining the weighted-average discount rate used to calculate the net present value of lease payments, the Company utilizes an estimate of its incremental borrowing rate based on market sources including interest rates for companies with similar credit quality for agreements of similar duration, determined by class of underlying asset, to discount the lease payments. Lease expense for the Company’s operating leases is recognized on a straight-line basis over the lease term and variable lease costs are expensed as incurred.

The Company elected the practical expedient not to apply the recognition and measurement requirements to short-term leases, which is any lease with a term of one year or less as of the lease commencement date. The lease may require the Company to pay additional amounts for taxes, insurance, maintenance, and other expenses, which are generally referred to as non-lease components. The Company has elected the practical expedient to combine lease and non-lease components. If a lease includes options to extend the lease term, the Company does not assume the option will be exercised in its initial lease term assessment unless there is reasonable certainty that the Company will renew based on an assessment of economic factors present as of the lease commencement date.

Collaborative Arrangements

The Company may enter into collaboration arrangements with pharmaceutical and biotechnology partners. The Company analyzes its collaboration arrangements to assess whether they are within the scope of ASC 808, Collaborative Arrangements, to determine whether such arrangements involve joint operating activities performed by the parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities. This assessment is performed throughout the life of the arrangement based on changes in responsibilities of all parties in the arrangement. For collaboration arrangements within the scope of ASC 808 that contain multiple units of account, the Company first determines which units of account of the collaboration are deemed to be within the scope of ASC 808 and those that are reflective of a vendor-customer relationship and, therefore, within the scope of ASC 606, Revenue from Contracts with Customers.

While ASC 808 defines collaboration arrangements and provides guidance on income statement presentation, classification, and disclosures related to such arrangements, it does not address recognition and measurement matters, such as (1) determining the appropriate unit of account or (2) when the recognition criteria are met. Therefore, the accounting for these arrangements is either based on an analogy to other accounting literature, such as ASC 606, or an accounting policy election by management. For units of account within collaboration arrangements that are accounted for pursuant to ASC 808, an appropriate revenue recognition method is determined and applied consistently.

The Company evaluates the presentation of amounts due from its collaborative partners associated with activities in the collaborative arrangements based on the nature of each activity. Amounts received prior to satisfying the revenue recognition criteria are recorded as deferred revenue in the Company’s consolidated balance sheets. If the related efforts underlying the deferred revenue are expected to be satisfied within the next twelve months, the deferred revenue is classified in current liabilities, otherwise it is classified as a non-current liability.

Revenue Recognition

For units of account under ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when or as the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract, determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

License, Milestone and Other Revenue

For units of account under ASC 606, the Company applies significant judgment when evaluating whether contractual obligations represent distinct performance obligations, allocating transaction price to performance obligations within a contract, determining when performance obligations have been met, assessing the recognition and future reversal of variable consideration, and determining and applying appropriate methods of measuring progress for performance obligations satisfied over time. These judgments are discussed in more detail below.

•Licenses of intellectual property: If the licenses to intellectual property are determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenues from non-refundable, upfront fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are not distinct from other promises, the Company applies judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, upfront fees. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the related revenue recognition accordingly.

•Milestone payments: At the inception of each arrangement that includes research, development or regulatory milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s control or the licensee, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The transaction price is then allocated to each performance obligation on a relative standalone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price on a cumulative catch-up basis in earnings in the period of the adjustment.

•Royalties and sales-based milestone payments: For arrangements that include sales-based royalties, including sales-based milestone payments based on pre-specified level of sales, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied).

Product Revenue, net

The Company sells its products in the U.S. principally through wholesale and specialty distribution and pharmacy channels (collectively, “customers”). These customers subsequently resell the Company’s products to healthcare providers and patients. In addition to distribution agreements with customers, the Company enters into arrangements with healthcare providers and payors that provide for government-mandated and/or privately-negotiated rebates, chargebacks and discounts with respect to the purchase of the Company’s products. Revenues from product sales are recognized when the customer obtains control of the Company’s products, which occurs at a point in time, typically upon delivery to the customer.

Revenues from product sales are recorded at the net sales price, or “transaction price,” which includes estimates of variable consideration for which reserves are established that result from (a) invoice discounts for prompt payment and specialty distributor and specialty pharmacy service fees, (b) government and private payer rebates, chargebacks, discounts and fees, (c) group purchasing organization (“GPO”) discounts, performance rebates and administrative fees, (d) product returns and (e) costs of co-pay assistance programs for patients. These reserves are based on amounts earned or to be claimed on the related sale and are classified as reductions of accounts receivable (if the amount is payable to the customer) or accrued expenses and other current liabilities (if the amount is payable to a party other than a customer). Where appropriate, the Company utilizes the expected value method to determine the appropriate amount for estimates of variable consideration. The estimates of reserves established for variable consideration reflect current contractual and statutory requirements, the Company’s historical experience, specific known market events and trends, industry data and forecasted customer buying and payment patterns. The amount of variable consideration that is included in the transaction price may be constrained and is included in net product revenues only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results vary from the Company’s estimates, the Company adjusts these estimates in the period such change in estimate becomes known, which could affect net product revenue and earnings in the period of the adjustment.

More specifically, these adjustments include the following:

•Prompt Pay Discounts: The Company generally provides invoice discounts on product sales to its customers for prompt payment. The Company estimates that its customers will earn these discounts and fees, and deducts the full amount of these discounts and fees from its gross product revenues and accounts receivable at the time such revenues are recognized.

•Product Returns: Consistent with industry practice, the Company offers its customers limited product return rights for damages, shipment errors, and expiring product; provided that the return is within a specified period around the product expiration date as set forth in the applicable individual distribution agreement. The Company does not allow product returns for product that has been dispensed to a patient. In arriving at its estimate for product returns, the Company considers historical product returns, the underlying product demand, and industry specific data.

•Chargebacks: Chargebacks are discounts that occur when contracted customers purchase directly from a specialty distributor. Contracted customers, which currently consist primarily of Public Health Service institutions, Federal government entities purchasing via the Federal Supply Schedule, GPOs, and health maintenance organizations, generally purchase the product at a discounted price. The specialty distributor, in turn, charges back to the Company the difference between the price initially paid by the specialty distributor and the discounted price paid to the specialty distributor by the customer. The allowance for chargebacks is based on actual chargebacks received and an estimate of sales to contracted customers.

•Rebates: Allowances for rebates include mandated discounts under the Medicaid Drug Rebate Program and the Medicare Part D prescription drug benefit. Rebates are amounts owed after the final dispensing of the product to a benefit plan participant and are based upon contractual agreements with, or statutory requirements pertaining to, Medicaid and Medicare benefit providers. The allowance for rebates is based on statutory discount rates, estimated payor mix, and expected utilization. The Company’s estimates for expected utilization of rebates are based on historical data received from specialty pharmacies and specialty distributors since launch, as well as analog data from similar products. The Company monitors sales trends and adjusts the allowance on a regular basis to reflect the most recent rebate experience. The Company’s liability for these rebates consists of invoices received, estimates of claims for the current quarter, and estimated future claims that will be made for product that has been recognized as revenue, but remains in the distribution channel inventories at the end of each reporting period.

•Co-payment Assistance: The Company offers co-payment assistance to commercially insured patients meeting certain eligibility requirements. Co-payment assistance is accrued based on actual program participation and estimates of program redemption using data provided by third-party administrators.

•Customer Fees: The Company pays fees to its customers for account management, data management, and other administrative services. To the extent the services received are distinct from sales of products to the customer, the Company records these payments in Selling General and Administrative (“SG&A”) expenses.

Cost of Product Revenue

Cost of product revenue is composed of the cost of goods sold and royalty expense payable to Takeda. Cost of goods sold consists of the cost of raw materials, third-party manufacturing costs to manufacture the raw materials into finished product, freight, and indirect overhead costs associated with sales of ORGOVYX and MYFEMBREE in the U.S. and sales of product supply to Richter. The cost of inventories written down as a result of excess, obsolescence, or other reasons is also charged to cost of goods sold. Royalty expense consists of royalties on net sales of relugolix payable to Takeda pursuant to the terms of the Takeda License Agreement (see Note 14(D)).

As a result of the FDA approvals of ORGOVYX and MYFEMBREE, the Company subsequently began capitalizing inventories manufactured or purchased for each product after its respective approval date. As a result, certain manufacturing costs of ORGOVYX and MYFEMBREE were expensed as R&D expenses prior to FDA approval and, therefore, these costs are not included in cost of goods sold.

Collaboration Expense to Pfizer

Collaboration expense to Pfizer consists of Pfizer’s 50% share of net profits from sales of ORGOVYX and MYFEMBREE in the U.S. (see Note 13(B)).

Research and Development Expenses

R&D expenses consist primarily of employee-related expenses, such as salaries, share-based compensation, benefits and travel expenses for employees engaged in R&D activities, expenses from third parties who conduct R&D activities on behalf of the Company, investigator grants, sponsored research, and fees incurred for regulatory submissions.

R&D costs are expensed as incurred. Clinical study costs are accrued over the service periods specified in the contracts and adjusted as necessary based on an ongoing review of the level of effort and costs actually incurred. The Company expenses in-process R&D projects acquired as asset acquisitions which have not reached technological feasibility, and which have no alternative future use.

The Company considers regulatory approval of product candidates to be uncertain and products manufactured prior to regulatory approval may not be sold unless regulatory approval is obtained. As such, the manufacturing costs for product candidates incurred prior to regulatory approval are not capitalized as inventory, but rather expensed as R&D expenses when incurred.

Promotional and Advertising Expense

Promotional and advertising costs are expensed as incurred, and are included in SG&A expenses in the consolidated statements of operations. Promotional and advertising costs consist primarily of the costs of designing, producing, and distributing materials promoting the Company’s products. Certain promotional and advertising costs are shared with Pfizer pursuant to the Pfizer Collaboration and License Agreement (see Note 13(B)).

Share-Based Compensation

The Company accounts for share-based compensation plans using the fair value recognition and measurement provisions under U.S. GAAP. The Company’s share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award. The Company recognizes forfeitures in the period in which such forfeiture occurs and records share-based compensation as though all awards are expected to vest.

The Company estimates the grant date fair value of stock options, and the resulting share-based compensation, using the Black-Scholes option-pricing model, which requires the use of subjective assumptions. These assumptions include:

•Expected Term. The expected term represents the period that the Company’s share-based awards are expected to be outstanding and is determined using the simplified method in accordance with the Securities and Exchange Commission (“SEC”), Staff Accounting Bulletin (“SAB”) No. 107 and No. 110 (based on the mid-point between the vesting date and the end of the contractual term).

•Expected Volatility. The expected volatility considers the Company’s historical volatility and weighted average measures of volatility of a peer group of companies for a period equal to the expected term of the stock options. The Company’s peer group of publicly traded biopharmaceutical companies was chosen based on their similar size, stage in the life cycle or area of specialty.

•Risk-Free Interest Rate. The risk-free interest rate is based on the U.S. treasury yield curve in effect at the time of grant for the expected term of the stock option.

•Expected Dividend. The Company has never paid, and does not anticipate paying, cash dividends on its common shares. Therefore, the expected dividend yield was assumed to be zero.

The fair value of stock options on the grant date is estimated using the Black-Scholes option-pricing model using the single-option approach. The Black-Scholes option pricing model requires the use of highly subjective and complex assumptions, including the option’s expected term and the price volatility of the underlying stock, to determine the fair value of the award. The Company recognizes the expense associated with options using a single award approach over the requisite service period.

Share-based compensation associated with restricted stock units (“RSU”) and performance share units (“PSU”) is based on the fair value of the Company’s common shares on the grant date, which equals the closing market price of the Company’s common shares on the grant date. The Company recognizes the share-based compensation related to RSUs on a straight-line basis over the requisite service period, which is generally the vesting period of the respective awards. The Company recognizes the share-based compensation related to PSUs if the performance criteria are deemed probable of being met. Share-based compensation liabilities (a current liability) are remeasured at fair value each reporting period until the common share awards are settled or become mature, with the change in fair value recorded as share-based compensation.

No tax benefits for share-based compensation have been recognized in the consolidated statements of shareholders’ deficit or consolidated statements of cash flows. The Company has not recognized, and does not expect to recognize in the near future, any tax benefits related to share-based compensation as a result of its full valuation allowance on net deferred tax assets and net operating loss carryforwards.

Income Taxes

The Company is subject to income taxes in the United States and other foreign jurisdictions. Judgment is required in determining the Company’s expense (benefit) for income taxes and income tax assets and liabilities, including evaluating uncertainties in the application of accounting principles and complex tax laws.

The Company records an expense (benefit) for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, the Company recognizes deferred income tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as for loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The Company recognizes the deferred income tax effects of a change in tax rates in the period of enactment.

The Company records a valuation allowance to reduce the Company’s deferred tax assets to the net amount that the Company believes is more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and results of operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of its net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

The Company recognizes tax benefits from uncertain tax positions if the Company believes that it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position as well as consideration of the available facts and circumstances. Interest and/or penalties related to income tax matters are recognized as a component of income tax expense as incurred.

Net Loss per Common Share

Basic net loss per common share is computed by dividing net loss available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss by the weighted-average number of common shares and potentially dilutive shares of common stock outstanding during the period. Potential dilutive securities outstanding include stock options, restricted stock units, performance stock units, and warrants. During all periods presented, the Company incurred net losses. Accordingly, the effect of any common share

equivalents would have been anti-dilutive during those periods and are not included in the calculation of diluted weighted-average number of common shares outstanding.

The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per common share for the periods indicated because their inclusion would have been anti-dilutive:


	March 31,
	2022	2021	2020
Stock options	6,130,680	8,293,331	7,723,302
Restricted stock awards (unvested)	—	—	634,623
Restricted stock units and performance stock units (unvested)	4,532,619	3,571,235	945,559

Warrants	73,710	73,710	73,710
Total	10,737,009	11,938,276	9,377,194

Change in Functional Currency

Prior to December 1, 2020, the functional currency of the Company’s wholly-owned subsidiary in Switzerland, Myovant Sciences GmbH (“MSG”), was the local currency where the subsidiary is located, the Swiss franc. Transactions in foreign currencies were translated to the functional currency at the rate of exchange at the date of the transaction. Transaction gains and losses were recognized in foreign exchange (gain) loss in the consolidated statements of operations. The results of operations of MSG were translated to the U.S. dollar, the Company’s reporting currency, at the average rates of exchange during the period. The cumulative effect of these exchange rate adjustments was included in a separate component of other comprehensive income (loss) on the consolidated balance sheets.

Effective December 1, 2020, as a result of significant changes in economic facts and circumstances in the operations of MSG, the functional currency of MSG was changed from the Swiss franc to the U.S. dollar. The change in the functional currency was accounted for prospectively from December 1, 2020. Therefore, any gains or losses that were previously recorded in accumulated other comprehensive income (loss) remain unchanged.

Pushdown Accounting

In November 2014, the FASB issued ASU 2014-17, Business Combinations (Topic 805): Pushdown Accounting. The ASU provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change in control event occurs. If pushdown accounting is applied to an individual change in control event, that election is irrevocable. The Company elected not to apply pushdown accounting in its consolidated financial statements upon the change in control of the Company on December 27, 2019. See Note 6(A).

Recently Adopted Accounting Standards

In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) (“ASU 2019-12”), that eliminates certain exceptions to the general principles in ASC 740 related to intra-period tax allocation, deferred tax liability and general methodology for calculating income taxes. ASU 2019-12 also simplifies U.S. GAAP by making other changes for matters such as, franchise taxes that are partially based on income, transactions with a government that result in a step up in the tax basis of goodwill, separate financial statements of legal entities that are not subject to tax, and enacted changes in tax laws in interim periods. The Company adopted ASU 2019-12 on April 1, 2021, which did not have a material impact on the Company’s consolidated financial statements and related disclosures.

Recently Issued Accounting Standards Not Yet Adopted

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. These amendments apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. The amendments are effective prospectively for all entities as of March 12, 2020 through December 31, 2022. The Company’s outstanding debt with Sumitomo Pharma bears a variable interest rate that is indexed off of 3-month LIBOR, for which publication is expected to be discontinued on June 30, 2023. In the event that 3-month LIBOR becomes unavailable, the Company and Sumitomo Pharma will negotiate in good faith to select an alternative interest rate in accordance with the

Sumitomo Pharma Loan Agreement. The Company has not yet adopted this guidance and is currently evaluating the potential impact the adoption of this standard will have on its consolidated financial statements and related disclosures.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model that requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses on available-for-sale debt securities to be recorded through an allowance for credit losses instead of as a reduction in the amortized cost basis of the securities. ASU 2016-13 was effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019. Early adoption was permitted, including adoption in any interim period. In February 2020, the FASB issued ASU 2020-02, Financial Instruments-Credit Losses (Topic 326) and Leases (Topic 842) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842), which amended the effective date of the original pronouncement for smaller reporting companies. ASC 2016-13 and its amendments will be effective for annual and interim periods beginning after December 15, 2022 for smaller reporting companies. The Company is currently assessing the impact the adoption of this new standard will have on its consolidated financial statements and related disclosures.

Revenue Components

12 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue Components

The following table provides information about the Company’s revenues (in thousands):


	Year Ended March 31,
	2022		2021		2020
Revenues:
Product revenue, net:
ORGOVYX	$	82,959	$	3,630	$	—
MYFEMBREE	6,355		—		—
Richter product supply and royalties	4,995		—		—
Total product revenue, net	94,309		3,630		—
Pfizer collaboration revenue:
Amortization of upfront payment	83,897		22,354		—
Amortization of regulatory milestone	21,099		—		—
Total Pfizer collaboration revenue	104,996		22,354		—
Richter license and milestone revenue	31,667		33,333		—
Total revenues	$	230,972	$	59,317	$	—

Product Revenue, net

The Company began generating product revenue from sales of ORGOVYX and MYFEMBREE in the U.S. in January 2021 and June 2021, respectively. The Company records product revenue net of estimated discounts, chargebacks, rebates, product returns, and other gross-to-net revenue deductions.

For the year ended March 31, 2022, product revenue, net also includes revenues related to product supply to Richter to support their European launches of RYEQO of $4.7 million, as well as royalties on net sales of RYEQO in Richter’s Territory of $0.3 million. There were no such revenues recorded for the years ended March 31, 2021, and 2020.

Product revenue, net by geography consisted of the following (in thousands):


	Year Ended March 31,
	2022		2021		2020
United States	$	89,314	$	3,630	$	—
Europe	4,995		—		—
Total product revenue, net	$	94,309	$	3,630	$	—

The activities and ending balances for each significant category of discounts and allowances (which constitutes variable consideration) for the years ended March 31, 2022 and 2021 were as follows (in thousands):


	Reserve -government and other incentives		Chargebacks and administrative fees		Returns		Sales Discounts		Total
Balance as of March 31, 2020	$	—	$	—	$	—	$	—	$	—
Provision related to sales in the current year	1,351		363		109		109		1,932
Credits and payments made during the current year	(508)		—		—		(30)		(538)
Balance as of March 31, 2021	843		363		109		79		1,394
Provision related to sales in the current year	38,910		13,384		2,919		2,377		57,590
Adjustments related to prior year sales	(305)		(124)		—		—		(429)
Credits and payments made during the current year	(25,714)		(10,995)		—		(1,970)		(38,679)
Balance as of March 31, 2022	$	13,734	$	2,628	$	3,028	$	486	$	19,876

The total reserves described above are summarized as components of the Company’s consolidated balance sheets as follows (in thousands):


	March 31,
	2022		2021
Reduction of accounts receivable, net	$	486	$	79
Component of accrued expenses and other current liabilities	19,390		1,315
Total revenue-related reserves	$	19,876	$	1,394

Pfizer Collaboration Revenue

For the year ended March 31, 2022, Pfizer collaboration revenue consists of the partial recognition of the upfront payment the Company received from Pfizer upon entering into the Pfizer Collaboration and License Agreement in December 2020 and of the regulatory milestone payment from Pfizer that was triggered upon the FDA approval of MYFEMBREE for the management of heavy menstrual bleeding associated with uterine fibroids on May 26, 2021. For the year ended March 31, 2021, Pfizer collaboration revenue consists of the partial recognition of the upfront payment the Company received from Pfizer in December 2020. There was no Pfizer collaboration revenue for the year ended March 31, 2020. See Note 13(B) for additional information regarding the Pfizer Collaboration and License Agreement.

Richter License and Milestone Revenue

Richter license and milestone revenue for the year ended March 31, 2022 was $31.7 million, consisting of the recognition of a $15.0 million regulatory milestone payment from Richter that was triggered upon the EC approval of RYEQO for the treatment of moderate to severe symptoms of uterine fibroids in adult women of reproductive age and $16.7 million of previously deferred revenue that was recognized upon completion of the Company’s delivery of the remaining substantive relugolix combination tablet data packages to Richter. Richter license and milestone revenue for the year ended March 31, 2021 consists of the recognition of $33.3 million of the upfront and regulatory milestone payments the Company received from Richter in March 2020 and April 2020, respectively. There was no Richter license and milestone revenue for the year ended March 31, 2020. See Note 13(A) for additional information regarding the Richter Development and Commercialization Agreement.

Fair Value Measurements

12 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

Financial Instruments Measured at Fair Value on a Recurring Basis

The preparation of the Company’s consolidated financial statements in accordance with U.S. GAAP requires that certain assets and liabilities be reflected at their fair value. The fair value of these financial instruments is based on valuations that include inputs that can be classified within one of three levels of a hierarchy established by U.S. GAAP (see Note 2). The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis and their respective input levels based on the fair value hierarchy (in thousands):


	Fair Value Measurement Using:
	Level 1		Level 2		Level 3		Total
As of March 31, 2022
Assets:
Money market funds (1)	$	69	$	—	$	—	$	69
Commercial paper (2)	—		219,772		—		219,772
Total assets	$	69	$	219,772	$	—	$	219,841


	Fair Value Measurement Using:
	Level 1		Level 2		Level 3		Total
As of March 31, 2021
Assets:
Money market funds (1)	$	36,903	$	—	$	—	$	36,903
Commercial paper (2)	—		21,689		—		21,689
U.S. agency securities (1)	—		10,000		—		10,000
Municipal bonds (3)	—		1,417		—		1,417
Total assets	$	36,903	$	33,106	$	—	$	70,009
Liabilities:
Share-based compensation liabilities - stock options (4)	$	—	$	12,113	$	—	$	12,113
Share-based compensation liabilities - common shares (5)	9,523		—		—		9,523
Total liabilities	$	9,523	$	12,113	$	—	$	21,636

(1) Included in cash and cash equivalents.

(2) Includes $192.3 million in cash and cash equivalents and $27.5 million in marketable securities as of March 31, 2022. Includes $12.7 million in cash and cash equivalents and $9.0 million in marketable securities as of March 31, 2021.

(3) Included in marketable securities.

(4) Includes 1,281,803 outstanding stock options remeasured using the Black-Scholes option-pricing model (see Note 10(H)).

(5) Includes 462,705 common shares remeasured using the Company’s March 31, 2021 closing market price of $20.58 per common share (see Note 10(H)).

The share-based compensation liabilities were remeasured at fair value at each reporting period end, with the change in fair value recorded as share-based compensation in the Company’s consolidated statements of operations until the stock options were exercised and the common shares sold to Sumitovant, to the market, or otherwise settled, or the Company’s former Principal Executive Officer held the common shares for a period of at least six months (see Note 10(H)). The Company remeasured the share-based compensation liabilities related to outstanding stock options at fair value using the Black-Scholes option pricing model for which all significant inputs were observable, either directly or indirectly, which caused them to be classified as a Level 2 measurement within the fair value hierarchy. The Company remeasured the share-based compensation liabilities related to common shares held for less than six months based on the closing market price of the Company’s common

shares at each reporting period end, which caused them to be classified as a Level 1 measurement within the fair value hierarchy.

The following table includes information regarding the Company’s share-based compensation liabilities (a current liability) for the year ended March 31, 2022 and 2021 (in thousands):


	Year Ended March 31,
	2022		2021
Balance at beginning of year	$	21,636	$	—
Reclassification from additional paid-in capital	—		17,473
Change in fair value	1,699		10,609
Settlements	(23,335)		(6,446)
Balance at end of year	$	—	$	21,636

The fair value of the share-based compensation liabilities related to outstanding stock options was estimated as of March 31, 2021 using the Black-Scholes option-pricing model and the following assumptions:


Expected common share price volatility	72.9	%
Expected risk free interest rate	0.06	%
Expected term, in years	0.78
Expected dividend yield	—	%

There were no share-based compensation liabilities related to outstanding stock options as of March 31, 2022.

Financial Instruments Not Measured at Fair Value on a Recurring Basis

The Company recorded the cost share advance from Pfizer, which is included in Level 2 of the fair value hierarchy, at its estimated fair value of $146.4 million as of the transaction date. As discussed in Note 13(B), on the transaction date, the cost share advance from Pfizer was discounted to fair value using the Company’s estimated incremental borrowing rate over the period in which the cost share advance is expected to be utilized. The recorded amount has been and will continue to be reduced each reporting period by the amount of Allowable Expenses applied to the cost share advance. There were no nonrecurring fair value assets as of March 31, 2022 and 2021.

Other Liabilities Disclosure [Abstract]

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Certain Balance Sheet Components

12 Months Ended

Mar. 31, 2022

Certain Balance Sheet Components

Inventories

Inventories consisted of the following (in thousands):


	March 31,
	2022		2021
Raw materials	$	663	$	1,390
Work in process	3,737		773
Finished goods	3,184		448

Total inventories	$	7,584	$	2,611

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


	March 31,
	2022		2021
Accrued compensation-related expenses	$	26,389	$	20,571
Accrued sales discounts, rebates, and allowances	19,390		1,315
Accrued R&D expenses	6,955		8,544
Accrued commercial expenses	7,196		7,770
Accrued other expenses	4,029		5,014
Accrued royalties payable to Takeda	2,470		301
Accrued professional fees	1,340		935
Deferred product revenue	825		162
Total accrued expenses and other current liabilities	$	68,594	$	44,612

Related Party Transactions

12 Months Ended

Mar. 31, 2022

Related Party Transactions

(A) Sumitomo Pharma

Sumitomo-Roivant Transaction

On December 27, 2019, the Company’s former controlling shareholder, Roivant Sciences Ltd. (“Roivant”), completed a transaction (the “Sumitomo-Roivant Transaction”) in which all of the Company’s outstanding common shares held directly or indirectly by Roivant and not already held by Sumitovant were transferred to Sumitovant, and Roivant transferred all of the outstanding equity of Sumitovant to Sumitomo Pharma, resulting in Sumitovant directly, and Sumitomo Pharma indirectly, owning 45,008,604, or approximately 50.2%, of the Company’s outstanding common shares on December 27, 2019. As of March 31, 2022, Sumitovant directly, and Sumitomo Pharma indirectly, own 50,041,181, or approximately 52.8%, of the Company’s outstanding common shares.

On December 27, 2019, the then existing Information Sharing and Cooperation Agreement between the Company and Roivant, the then existing Services Agreements between the Company and certain of its subsidiaries and Roivant and certain of its subsidiaries, and the then existing Option Agreement between the Company and Roivant were terminated. For the year ended March 31, 2020, the Company paid or reimbursed Roivant approximately $0.6 million under the terms of the then existing Services Agreements.

Sumitomo Pharma Loan Agreement

On December 27, 2019, the Company and one of its subsidiaries, MSG, entered into a Loan Agreement with Sumitomo Pharma (the “Sumitomo Pharma Loan Agreement”). Pursuant to the Sumitomo Pharma Loan Agreement, Sumitomo Pharma agreed to make revolving loans to the Company in an aggregate principal amount of up to $400.0 million. On December 30, 2019, the Company borrowed an initial amount of $113.7 million under the Sumitomo Pharma Loan Agreement, the proceeds of which were used to repay all outstanding obligations of the Company to NovaQuest Capital Management (“NovaQuest”) and Hercules Capital, Inc. (“Hercules”) and to satisfy certain other fees and expenses (see Note 7). Funds may be drawn down by the Company once per calendar quarter, subject to certain terms and conditions, including consent of the Company’s board of directors. The maturity date of the loans under the Sumitomo Pharma Loan Agreement is December 27, 2024 or the date the outstanding principal of the loans is declared due and payable due to an event of default pursuant to the terms of the Sumitomo Pharma Loan Agreement. In addition, if Sumitomo Pharma fails to own at least a majority of the outstanding common shares of the Company, it may become unlawful under Japanese law for Sumitomo Pharma to fund loans to the Company, and in which case the Company would not be able to continue to borrow under the Sumitomo Pharma Loan Agreement. Interest is due and payable quarterly, and the outstanding principal amounts are due and payable in full on the five-year anniversary of the closing date of the Sumitomo Pharma Loan Agreement. Loans under the Sumitomo Pharma Loan Agreement are prepayable at any time without premium or penalty upon 10 business days’ prior written notice.

Loans under the Sumitomo Pharma Loan Agreement bear interest at a variable rate per annum equal to 3-month LIBOR plus a margin of 3% payable on the last day of each calendar quarter. Publication of 3-month LIBOR is currently expected to be discontinued on June 30, 2023. In the event that 3-month LIBOR becomes unavailable, the Company and Sumitomo Pharma will negotiate in good faith to select an alternative interest rate and, if applicable as a result of such alternative interest rate,

margin adjustment that is consistent with industry accepted successor rates for determining a LIBOR replacement. The Company’s obligations under the Sumitomo Pharma Loan Agreement are fully and unconditionally guaranteed by the Company and its subsidiaries. The loans and other obligations are senior unsecured obligations of the Company, MSG, and subsidiary guarantees. The Sumitomo Pharma Loan Agreement includes customary representations and warranties and affirmative and negative covenants.

The Sumitomo Pharma Loan Agreement also includes customary events of default, including payment defaults, breaches of representations and warranties, breaches of covenants following any applicable cure period, cross acceleration to certain other debt, failure to pay certain final judgments, certain events relating to bankruptcy or insolvency, failure of material provisions of the loan documents to remain in full force and effect or any contest thereto by the Company or any of its subsidiaries and certain breaches by the Company under the Investor Rights Agreement. Upon the occurrence of an event of default, a default interest rate of an additional 5.0% will apply to the outstanding principal amount of the loans, Sumitomo Pharma may terminate its obligations to make loans to the Company and declare the principal amount of loans to become immediately due and payable, and Sumitomo Pharma may take such other actions as set forth in the Sumitomo Pharma Loan Agreement. Upon the occurrence of certain bankruptcy and insolvency events, the obligations of Sumitomo Pharma to make loans to the Company would automatically terminate and the principal amount of the loans would automatically become due and payable. In addition, if it becomes unlawful for Sumitomo Pharma to maintain the loans under the Sumitomo Pharma Loan Agreement or within 30 days of a change of control with respect to the Company, the Company would be required to repay the outstanding principal amount of the Loans.

As of March 31, 2022, approximately $41.3 million of borrowing capacity remains available to the Company, subject to the terms of the Sumitomo Pharma Loan Agreement, and the outstanding loan balance of $358.7 million is classified as a long-term liability on the accompanying consolidated balance sheets under the caption long-term debt, less current maturities (related party). Interest expense under the Sumitomo Pharma Loan Agreement was $11.6 million, $9.8 million, and $1.4 million for the years ended March 31, 2022, 2021, and 2020, respectively, and is included in interest expense in the accompanying consolidated statements of operations.

Annual maturities of amounts outstanding as of March 31, 2022, under the Sumitomo Pharma Loan Agreement are as follows (in thousands):


Year Ended March 31,
2023	$	—
2024	—
2025	358,700
Total	$	358,700

Sumitomo Pharma Loan Commitment

On August 5, 2020, the Company obtained a debt commitment letter from Sumitomo Pharma, as amended by a letter dated September 29, 2020, and then further amended by a letter dated December 22, 2020 (the “2020 Commitment Letter”), pursuant to which, subject to the terms and conditions set forth therein, Sumitomo Pharma committed to enter into a new $200.0 million unsecured, low-interest, five-year term loan facility. The 2020 Commitment Letter expired in March 2021.

Investor Rights Agreement

On December 27, 2019, the Company entered into an Investor Rights Agreement with Sumitomo Pharma and Sumitovant (the “Investor Rights Agreement”). Pursuant to the Investor Rights Agreement, among other things, the Company agreed, at the request of Sumitovant, to register for sale, under the Securities Act of 1933, common shares beneficially owned by Sumitovant, subject to specified conditions and limitations. In addition, the Company agreed to periodically provide Sumitovant (i) certain financial statements, projections, capitalization summaries and other information and (ii) access to the Company’s books, records, facilities and employees during the Company’s normal business hours as Sumitovant may reasonably request, subject to specified limitations.

The Investor Rights Agreement also contains certain protections for the Company’s minority shareholders for so long as Sumitomo Pharma or certain of its affiliates beneficially owns more than 50% of the Company’s common shares. These protections include: (i) a requirement that Sumitovant vote its shares for the election of independent directors in accordance with the recommendation of the Company’s board of directors (the “board”) or in the same proportion as the shareholders not affiliated with Sumitovant vote their shares; (ii) a requirement that the audit committee of the Company’s board be composed solely of three independent directors; (iii) a requirement that any transaction proposed by Sumitomo Pharma or certain of its

affiliates that would increase Sumitomo Pharma’s beneficial ownership to over 60% of the outstanding voting power of the Company must be approved by the Company’s audit committee (if occurring prior to December 27, 2022), and be conditioned on the approval of shareholders not affiliated with Sumitovant approving the transaction by a majority of the common shares held by such shareholders; and a requirement that any related person transactions between Sumitomo Pharma or certain of its affiliates and the Company must be approved by the Company’s audit committee.

Pursuant to the Investor Rights Agreement, the Company also agreed that at all times that Sumitomo Pharma beneficially owns more than 50% of the Company’s common shares, Sumitomo Pharma, by purchasing common shares in the open market or from the Company in certain specified circumstances, will have the right to maintain its percentage ownership in the Company’s common shares in the event of a financing event or acquisition event conducted by the Company, or specified other events, subject to specific conditions.

(B) Sumitovant

On May 18, 2020, the Company and Sumitovant entered into a consulting agreement, as amended on November 9, 2020, pursuant to which Sumitovant provided consulting services to the Company and its subsidiaries to support commercial planning, commercial launch, and implementation activities. Adele Gulfo, Sumitovant’s Chief Business and Commercial Development Officer and a member of the Company’s board of directors, provided services to the Company on behalf of Sumitovant under this agreement. The term of the consulting agreement with Sumitovant expired on March 31, 2021. For the year ended March 31, 2021, the Company incurred $0.8 million of expense under this consulting agreement, which is included in SG&A expenses in the accompanying consolidated statements of operations.

In addition, for the year ended March 31, 2021, the Company agreed to reimburse Sumitovant for certain other third-party pass-through expenses that it incurred on behalf of the Company. These expenses, totaling $0.7 million, are included in SG&A expense in the accompanying consolidated statements of operations. The Company reimbursed Sumitovant less than $0.1 million of third-party pass-through expenses that it incurred on behalf of the Company for the year ended March 31, 2022.

Market Access Services Agreement

On August 1, 2020, one of the Company’s subsidiaries, MSG, entered into a Market Access Services Agreement, as amended (“Market Access Services Agreement”), with Sunovion. Pursuant to the Market Access Services Agreement, among other things, Sunovion agreed to provide to MSG certain market access services with respect to the distribution and sale of ORGOVYX (“Prostate Cancer Product”) and MYFEMBREE (“Women’s Health Product,” and collectively with Prostate Cancer Product, the “Products”, and each a “Product”), including, among other things: (i) adding the Products to Sunovion’s agreements with its third party logistics providers; (ii) adding the Women’s Health Product to certain of Sunovion’s contracts with wholesalers, group purchasing organizations and integrated delivery networks and negotiating rates for the Products with certain market access customers; (iii) providing order-to-cash services; (iv) providing certain employees to provide market access account director services; (v) performing activities required in connection with supporting and maintaining contracts between the Company and market access customers for the coverage, purchase, or dispensing of the Products; (vi) managing the validation, processing and payment of rebates, chargebacks, and certain administrative, distribution and service fees related to the Products; (vii) providing MSG with price reporting metrics and other information required to allow the Company to comply with applicable government price reporting requirements; (viii) coordinating with MSG and any applicable wholesalers and distributors to address any recalls, investigations, or product holds; (ix) configuring, or causing to be configured, the appropriate software systems to enable Sunovion to perform its obligations under the Market Access Services Agreement; and (x) providing training and certain other ancillary support services to facilitate the foregoing. Pursuant to this agreement, Sunovion will also provide certain services to the Company to enable the Company to comply with its obligations under the State Transparency Laws.

MSG, in turn, appointed Sunovion as the exclusive distributor of the Women’s Health Product and a non-exclusive distributor of the Prostate Cancer Product, each in the United States, including all of its territories and possessions.

In order to facilitate Sunovion’s provision of these services, MSG agreed, among other things, to: (i) grant Sunovion a non-exclusive license under all intellectual property owned or controlled by MSG, solely for Sunovion’s use in connection with its performance of the contemplated services; (ii) provide Sunovion periodic reports of sales projections and estimated volume requirements, as well as such other information as Sunovion reasonably requests or may need to perform the services; (iii) comply with the provisions of any agreements between Sunovion and third parties pursuant to which the Products will be distributed or sold; (iv) cooperate with certain investigations related to orders and audits of MSG’s quality systems solely related, as reasonably determined by Myovant, to Sunovion’s performance of certain regulatory services, at Sunovion’s costs; and (v) promptly notify Sunovion in the event relugolix is recalled.

As consideration for the services, MSG has paid and will continue to pay Sunovion an agreed-upon monthly service charge for each of the first two years of the Market Access Services Agreement term and any agreed regulatory and training service charges. After the second year of the Market Access Services Agreement term, the monthly service charges will be determined by the parties. In addition, MSG also agreed to (x) reimburse Sunovion for any pass-through expenses it incurs while providing the services, and (y) establish an escrow fund for use by Sunovion to manage payments for rebates, chargebacks and similar fees. For the years ended March 31, 2022, and 2021, the Company incurred $4.8 million and $3.8 million, respectively, under this agreement (inclusive of third-party pass-through costs billed to the Company) of which $4.8 million and $3.7 million, are included in SG&A expenses, in the accompanying consolidated statements of operations, and $0.1 million of expenses are included in R&D expenses for the year ended March 31, 2021. There were no expenses included in R&D expenses for the year ended March 31, 2022.

The Market Access Services Agreement also contains customary representations and warranties by the parties and customary provisions related to confidentiality, indemnification and insurance. The initial term of the Market Access Services Agreement is three years. Thereafter, the term will be automatically extended for one-year periods, unless either party provides notice of its intent not to renew the Market Access Services Agreement at least nine (9) months prior to the expiration of the applicable term. Either party may also terminate the Market Access Services Agreement prior to the end of its term in the event of an uncured material breach by the other party, if there are certain changes of law, or if such other party becomes insolvent or undergoes a change of control. MSG may also terminate the Market Access Services Agreement with respect to one or both Products if Sunovion fails to satisfy certain market access milestones or for convenience upon payment of a break-up fee.

(D) Amended and Restated Bye-Laws

On December 22, 2019, the Company’s board of directors approved, subject to the closing of the Sumitomo-Roivant transaction and shareholder approval and certain other conditions, the adoption of the Company’s Fifth Amended and Restated Bye-Laws (the “New Bye-Laws”), which amended and restated the Company’s bye-laws to, among other things, (i) remove the procedures established in June 2019 providing Roivant with the power, under certain circumstances, to appoint a majority of directors on the Company’s board and related powers, (ii) revise certain other aspects of the Company’s corporate governance and (iii) make other minor wording changes and additions, removal and revisions of defined terms. The New Bye-Laws became effective on January 23, 2020.

Extinguishment of Debt	12 Months Ended
Extinguishment of Debt	Mar. 31, 2022
Debt Disclosure [Abstract]
Extinguishment of Debt	Extinguishment of Debt On December 27, 2019, the Company and one of its subsidiaries, MSG, entered into the Sumitomo Pharma Loan Agreement, which is further discussed in Note 6(A). On December 30, 2019, the Company borrowed an initial amount of $113.7 million under the Sumitomo Pharma Loan Agreement, the proceeds of which were used to repay all outstanding obligations to NovaQuest and Hercules and to satisfy certain other fees and expenses, including: •Repayment of all of the Company’s then outstanding obligations to NovaQuest under the NovaQuest Securities Purchase Agreement, including $60.0 million of principal repayment of the notes, accrued and unpaid interest of $7.6 million, and an early redemption fee of $2.4 million. •Repayment of all of the Company’s then outstanding obligations to Hercules under the Hercules Loan Agreement, including $40.0 million of principal repayment of the Term Loans, accrued and unpaid interest of $0.3 million, a prepayment penalty of $0.4 million, and an end of term charge of $2.6 million. The repayments resulted in a loss on extinguishment of debt of $4.9 million, which is included under the caption loss on extinguishment of debt in the accompanying consolidated statements of operations for the year ended March 31, 2020. The loss on extinguishment of debt was calculated as the difference between the carrying amount of the debt and the amounts paid to retire the debt.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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Income Taxes

12 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

The income (loss) before income taxes and the related tax expense are as follows (in thousands):


	Year Ended March 31,
	2022		2021		2020
(Loss) income before income taxes:
United States	$	45,446	$	(40,663)	$	(29,509)
Switzerland	(237,903)		(201,673)		(239,666)
Bermuda	(8,415)		(12,310)		(19,054)
Other(1)	(61)		(152)		1
Total loss before income taxes	$	(200,933)	$	(254,798)	$	(288,228)

Current taxes:
United States	$	5,048	$	335	$	758
Switzerland	—		—		—
Bermuda	—		1		—
Other(1)	—		—		3
Total current tax expense	5,048		336		761
Deferred taxes:
United States	—		—		—
Switzerland	—		—		—
Bermuda	—		—		—
Other(1)	—		—		—
Total deferred tax expense	—		—		—
Total income tax expense	$	5,048	$	336	$	761

(1) Primarily Ireland and United Kingdom activity.

A reconciliation of income tax expense computed at the Bermuda statutory rate to income tax expense reflected in the consolidated statements of operations is as follows (dollars in thousands):


	Year Ended March 31,
	2022				2021				2020
Income tax expense at Bermuda statutory rate	$	—	—	%	$	—	—	%	$	—	—	%
Foreign rate differential(1)	(25,720)		12.80	%	(37,622)		14.77	%	(40,056)		13.90	%
Impact of changes in enacted income tax rates	—		—	%	—		—	%	(27,150)		9.42	%
Currency remeasurement effects on Swiss deferred tax assets	(3,045)		1.52	%	(13,742)		5.39	%	—		—	%
Officer’s non-deductible share-based compensation	—		—	%	9,590		(3.76)	%	—		—	%
R&D tax credits	(2,819)		1.40	%	(3,771)		1.48	%	(1,208)		0.42	%
Share-based compensation deferral adjustment	—		—	%	(4,364)		1.71	%	4,089		(1.42)	%
Valuation allowance	36,331		(18.08)	%	50,333		(19.75)	%	65,193		(22.62)	%

Other	301		(0.15)	%	(88)		0.03	%	(107)		0.04	%
Total income tax expense	$	5,048	(2.51)	%	$	336	(0.13)	%	$	761	(0.26)	%

(1) Primarily related to current tax on United States operations including permanent differences as well as operations in Switzerland and the United Kingdom at rates different than the Bermuda rate.

The Company’s effective tax rate for the years ended March 31, 2022, 2021, and 2020 was (2.51)%, (0.13)%, and (0.26)%, respectively, and is driven by the Company’s jurisdictional earnings by location and a valuation allowance that eliminates the Company’s global net deferred tax assets.

Deferred taxes reflect the tax effects of the differences between the amounts recorded as assets and liabilities for financial reporting purposes and the comparable amounts recorded for income tax purposes. Significant components of the deferred tax assets and liabilities as of March 31, 2022 and 2021 are as follows (in thousands):


	March 31,
	2022		2021
Deferred tax assets:
Research tax credits	$	7,345	$	9,967
Net operating losses	135,916		119,701
Share-based compensation	11,418		12,649
Intangibles	79,231		58,830
Lease liability	2,009		2,317
Other	10,536		7,080
Subtotal	246,455		210,544
Valuation allowance	(244,188)		(207,858)
Deferred tax assets, net of valuation allowance	2,267		2,686
Deferred tax liabilities:
Depreciation	(526)		(651)
Right-of-use assets	(1,741)		(2,035)
Net deferred tax assets	$	—	$	—

The Company assesses the realizability of the deferred tax assets at each balance sheet date based on available positive and negative evidence in order to determine the amount which is more likely than not to be realized and records a valuation allowance as necessary. Due to the Company’s cumulative loss position which provides significant negative evidence, which is difficult to overcome, the Company has recorded a valuation allowance of $244.2 million and $207.9 million as of March 31, 2022 and 2021, respectively, representing the portion of the deferred tax asset that is not more likely than not to be realized. During the year ended March 31, 2022, the total change in the valuation allowance was $36.3 million, which was primarily related to certain tax attributes and intangibles. The amount of the deferred tax asset considered realizable, could be adjusted for future factors that would impact the assessment of the objective and subjective evidence of the Company. The Company will continue to assess the realizability of deferred tax assets at each balance sheet date in order to determine the proper amount, if any, required for a valuation allowance.

There are outside basis differences related to the Company’s investment in subsidiaries for which no deferred taxes have been recorded as these would not be subject to tax on repatriation as Bermuda has no tax regime for Bermuda exempted limited companies, and the United Kingdom tax regime relating to company distributions generally provides for exemption from tax for most overseas profits, subject to certain exceptions.

As of March 31, 2022, the Company’s net operating losses in Switzerland, United Kingdom and Ireland, were $987.1 million, $39.9 million, and $0.1 million, respectively. The Switzerland net operating losses will begin to expire on March 31, 2025. The net operating losses in the United Kingdom and Ireland can be carried forward indefinitely with annual usage limitations where applicable. As of March 31, 2022, the Company has R&D credit carryforwards in the United States in the amount of $5.9 million which will begin to expire on March 31, 2039 and in California in the amount of $6.1 million which can be carried forward indefinitely.

The U.S. tax attributes may be subject to an annual limitation under Section 382 of the Internal Revenue Code of 1986 (the “Code”), and similar state provisions if the Company experiences one or more ownership changes, which would limit the amount of the tax attributes that can be utilized to offset future taxable income. In general, an ownership change as defined by Section 382, results from the transactions increasing ownership of certain stockholders or public groups in the stock of the corporation of more than 50 percentage points over a three-year period. If a change in ownership occurs in the future, the R&D credit carryforwards could be eliminated or restricted. The Company experienced an ownership change for the purposes of Section 382 and 383 of the Code in December 2019 as a result of the Sumitomo-Roivant Transaction (see Note 6(A)). Due to

the existence of the valuation allowance, limitations created by ownership changes, if any, does not materially impact the Company’s effective tax rate.

The Company files income tax returns in the United Kingdom, Switzerland, Ireland, and the United States federal and certain state and local jurisdictions. The Company is subject to U.S. federal and state tax examinations for tax years ended March 31, 2019 and forward, and is subject to tax examinations in non- U.S. jurisdictions for tax years ended March 31, 2018 and forward. Tax audits and examinations can involve complex issues, interpretations and judgments. The resolution of matters may span multiple years particularly if subject to litigation or negotiation. The Company believes it has appropriately recorded its tax position using reasonable estimates and assumptions, however the potential tax benefits may impact the results of operations or cash flows in the period of resolution, settlement or when the statute of limitations expire.

Activity related to unrecognized tax benefits for the years ended March 31, 2022, 2021, and 2020 is as follows (in thousands):


	Year Ended March 31,
	2022		2021		2020
Beginning of period balance	$	4,404	$	3,177	$	—
Gross increases — prior period tax positions	—		—		2,067
Gross decreases — prior period tax positions	(235)		(128)		—
Gross increases — current period tax positions	1,050		1,355		1,110
End of period balance	$	5,219	$	4,404	$	3,177

The Company’s unrecognized tax benefits increased by $0.8 million and $1.2 million for the tax years ended March 31, 2022 and 2021, respectively. As of March 31, 2022, the Company had unrecognized tax benefits of $5.2 million that if recognized would have an immaterial effect on the Company’s effective tax rate. The Company does not expect that there will be a significant change in the unrecognized tax benefits over the next twelve months. Due to the existence of the valuation allowance, future changes in the Company’s unrecognized tax benefits will not materially impact the effective tax rate.

It is the Company’s policy to recognize interest and penalties related to income tax matters in income tax expense and include accrued interest and penalties with the related income tax liability in its consolidated balance sheets. There were no interest and penalties for the years ended March 31, 2022, 2021, and 2020. As of March 31, 2022 and 2021, the Company had no accrued interest and penalties related to uncertain tax positions.

In response to the COVID-19 pandemic, many governments have enacted measures to provide aid and economic stimulus. These measures include deferring the due dates of tax payments and other changes to income and non-income-based-tax laws as well as providing direct government assistance through grants and forgivable loans. On March 27, 2020, the U.S. Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted in response to the COVID-19 pandemic and the negative impacts that it had on the global economy and U.S. companies. The CARES Act includes measures to assist companies, including temporary changes to income and non-income-based tax laws. The Company implemented certain provisions of the CARES Act, such as deferring employer payroll taxes through the end of calendar year 2020.

As of March 31, 2022, the Company has deferred $0.9 million of employer payroll taxes, which is included in accrued expenses and other current liabilities on the consolidated balance sheet. As of March 31, 2021, the Company had deferred $1.8 million of employer payroll taxes, of which $0.9 million was included in accrued expenses and other current liabilities and $0.9 million was included in other liabilities on the consolidated balance sheet.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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Shareholders' Deficit	12 Months Ended
Shareholders' Deficit	Mar. 31, 2022
Equity [Abstract]
Shareholders' Deficit	Shareholders’ Deficit (A) Overview The Company’s Memorandum of Association, filed on February 2, 2016 in Bermuda, authorized the creation of one class of shares. As of March 31, 2022, the Company had 564,111,242 shares authorized with a par value of $0.000017727 per share. (B) Underwritten Public Equity Offering of Common Shares On June 4, 2019, the Company completed an underwritten public equity offering of 17,424,243 of its common shares at a public offering price of $8.25 per common share. After deducting the underwriting discounts and commissions and offering costs paid by the Company, the net proceeds to the Company in connection with the underwritten public equity offering, including from the exercise of the underwriters’ option to purchase additional common shares, were approximately $134.5 million. The Company’s former majority shareholder, Roivant, purchased 2,424,242 of the Company’s common shares in the Company’s June 4, 2019 underwritten public equity offering at the same price offered to the public of $8.25 per common share, for a total purchase price of $20.0 million. (C) At-the-Market Equity Offering Program In April 2018, the Company entered into a sales agreement (the “Sales Agreement”) with Cowen and Company, LLC (“Cowen”), to sell its common shares having an aggregate offering price of up to $100.0 million from time to time through an “at-the-market” equity offering program under which Cowen acted as the Company’s agent. During the year ended March 31, 2020, the Company issued and sold 106,494 of its common shares under the Sales Agreement. The common shares were sold at a weighted-average price of $24.65 per common share for aggregate net proceeds to the Company of approximately $2.5 million after deducting underwriting commissions and offering costs paid by the Company. No shares were sold under the Sales Agreement during the year ended March 31, 2021. The “at-the-market” equity offering program expired in March 2021. (D) Warrants As of March 31, 2022 and 2021, warrants exercisable for an aggregate of 49,800 of the Company’s common shares (exercise price of $15.06 per common share) and warrants exercisable for an aggregate of 23,910 of the Company’s common shares (exercise price of $18.82 per common share), were outstanding and exercisable. The warrants may be exercised on a cashless basis through October 2024 and March 2025, respectively.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496180-112644

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123467817&loc=SL123496158-112644

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Share-based Payment Arrangement [Abstract]

Share-Based Compensation

12 Months Ended

Mar. 31, 2022

Share-Based Compensation

The Company has two share-based compensation plans, the Myovant Sciences Ltd. 2020 Inducement Plan and the Myovant Sciences Ltd. 2016 Equity Incentive Plan (collectively, the “Equity Plans”).

(A) 2020 Inducement Plan

In November 2020, the compensation committee of the Company’s board of directors adopted the Myovant Sciences Ltd. 2020 Inducement Plan (the “2020 Inducement Plan”), which, subject to the adjustment provisions thereof, reserved 1.0 million shares of the Company’s common shares for issuance. The 2020 Inducement Plan was adopted without shareholder approval pursuant to the Listed Company Manual Rule 303A.08 (“Rule 303A.08”) of the New York Stock Exchange (the “NYSE”). The 2020 Inducement Plan provides for the grant of restricted stock units and non-qualified stock options, and contains terms and conditions intended to comply with the inducement award exception under the NYSE rules. In accordance with Rule 303A.08, awards under the 2020 Inducement Plan may only be made to individuals not previously employees of the Company, or being rehired following a bona fide period of interruption of employment, as an inducement material to such individuals’ entering into employment with the Company. An award is a right to receive the Company’s common shares pursuant to the 2020 Inducement Plan pursuant to a restricted stock unit award or a non-qualified stock option award. On March 22, 2022, the compensation committee of the Company’s board of directors adopted the first amendment to the 2020 Inducement Plan, which, subject to the adjustment provisions thereof, increased the authorized shares of the Company’s common shares for issuance from 1.0 million to 2.0 million under the 2020 Inducement Plan. All of the other terms of the 2020 Inducement Plan remained the same. As of March 31, 2022, there were 1.0 million common shares available for future issuance under the 2020 Inducement Plan.

(B) 2016 Equity Incentive Plan

In June 2016, the Company adopted its 2016 Equity Incentive Plan, as amended (the “2016 Plan”), under which 4.5 million common shares were originally reserved for issuance. Pursuant to the “evergreen” provision contained in the 2016 Plan, the number of common shares reserved for issuance under the 2016 Plan automatically increases on April 1 of each year, commencing on (and including) April 1, 2017 and ending on (and including) April 1, 2026, in an amount equal to 4% of the total number of shares of the Company’s capital stock outstanding on March 31 of the preceding fiscal year, or a lesser number of shares as determined by the Company’s board of directors. On April 1, 2021, the number of common shares authorized for issuance under the 2016 Plan increased automatically by 3.6 million shares in accordance with the evergreen provision. As of March 31, 2022, a total of 2.6 million common shares were available for future issuance under the 2016 Plan.

The Company’s employees, directors, officers and consultants are eligible to receive non-qualified and incentive stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, and other share awards under the 2016 Plan.

On August 26, 2019 (the “repricing date”), the Company’s board of directors approved a stock option repricing program (the “repricing”) whereby certain previously granted and still outstanding vested and unvested stock options held by current employees and certain executives were repriced on a one-for-one basis to $7.78 per share, which represented the closing market

price of the Company’s common shares on the repricing date. To be eligible to participate in the stock option repricing program, 735,428 vested stock options to certain executives as of the repricing date were subject to a one-year exercise restriction period beginning from the repricing date. No other terms of the repriced stock options were modified, and the repriced stock options retained their original vesting schedules and expiration dates. As a result of the repricing, 5,095,013 vested and unvested stock options outstanding on the repricing date with original exercise prices ranging from $8.82 to $24.44, and a median exercise price of $17.28 per share, were repriced under this program. The repricing resulted in one-time incremental stock-based compensation expense of $9.2 million, which is being recognized over the remaining term of the repriced stock options.

(D) Stock Options

Each non-qualified stock option has an exercise price equal to the fair market value of the Company’s common shares on the date of grant. Stock options granted to employees generally vest over a four-year period. One fourth of the shares subject to such stock options vest on the first anniversary of the grant date, with the balance of the shares vesting in twelve equal quarterly installments thereafter. Initial stock options granted to non-executive members of the Company’s board of directors vest over a three-year period. One third of the shares subject to such stock options vest on the first anniversary of the grant date, with the balance of the shares vesting in eight equal quarterly installments thereafter. The vesting of stock options is subject to in each case to continued service through each of the vesting dates.

Annual stock options granted to non-executive members of the Company’s board of directors vest in full on the earlier to occur of (i) the first (1st) anniversary of the date of grant and (ii) the day immediately prior to the date of the annual general meeting of shareholders for the year following the year in which the grant is made, subject in each case to continued service through the vesting date.

Each non-qualified stock option award has a maximum term of 10 years from the date of grant, subject to the earlier cancellation prior to vesting upon cessation of service to the Company. Options that are forfeited or expire are available for future grants.

Activity for stock options for the year ended March 31, 2022 is included in the following table:


	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value (in thousands)
Options outstanding at March 31, 2021	8,293,331	$	9.90	6.48	$	90,699
Granted	1,178,625	$	18.93
Exercised	(2,513,887)	$	9.80
Forfeited	(827,389)	$	17.07
Options outstanding at March 31, 2022	6,130,680	$	10.71	6.98	$	26,467
Options vested and expected to vest at March 31, 2022	6,130,680	$	10.71	6.98	$	26,467
Options exercisable at March 31, 2022	3,754,020	$	8.41	6.08	$	20,978

The aggregate intrinsic value of stock options is calculated as the pre-tax difference between the weighted-average exercise price of the stock options and the closing price per share of the Company’s common shares of $13.32 and $20.58 on March 31, 2022 and 2021, respectively. The calculation excludes any stock options with an exercise price higher than the closing price of the Company’s common shares.

As of March 31, 2022, 2021, and 2020, there were 3,754,020, 5,219,403, and 3,009,080 vested stock options outstanding, respectively.

The Company estimated the fair value of each stock option on the date of grant using the Black-Scholes option-pricing model applying the weighted average assumptions in the following table:


	Year Ended March 31,
	2022		2021		2020
Expected common share price volatility	71.9	%	75.7	%	69.5	%
Expected risk free interest rate	1.03	%	0.47	%	2.05	%
Expected term, in years	6.2		6.21		6.17
Expected dividend yield	—	%	—	%	—	%

Additional information regarding stock options is set forth below (in thousands, except per share data).


	Year Ended March 31,
	2022		2021		2020
Intrinsic value of options exercised	$	23,305	$	12,154	$	1,036
Grant date fair value of options vested	$	37,326	$	19,923	$	2,112
Weighted-average grant date fair value per share of options granted	$	12.12	$	7.22	$	11.54

(E) Restricted Stock Awards and Restricted Stock Units

Restricted stock units (“RSU”) and Restricted Stock Awards (“RSA”) are share awards that, upon vesting, will deliver to the holder shares of the Company’s common shares. RSUs generally vest over a four-year period. Activity for RSUs for the year ended March 31, 2022 is included in the following table:


	Number of Shares	Weighted-Average Grant Date Fair Value
Unvested balance at March 31, 2021	3,194,562	$	12.68
Granted	3,376,403	$	18.21
Vested	(1,220,572)	$	11.92
Forfeited	(964,426)	$	15.17
Unvested balance at March 31, 2022	4,385,967	$	16.60

The total fair value of RSUs vested during the years ended March 31, 2022, 2021, and 2020 was $14.5 million, $3.3 million and $0.2 million, respectively. The total fair value of RSAs vested during the years ended March 31, 2021 and 2020 was $8.4 million and $1.4 million, respectively. No RSAs vested during the year ended March 31, 2022.

(F) Performance Share Units

Activity for performance share units (“PSU”) for the year ended March 31, 2022 is included in the following table:


	Number of Shares	Weighted-Average Grant Date Fair Value
Unvested balance at March 31, 2021	376,673	$	7.99
Granted	—	$	—
Vested	(123,118)	$	7.87
Forfeited	(106,903)	$	8.08
Unvested balance at March 31, 2022	146,652	$	8.04

The vesting of PSUs requires that certain performance conditions are achieved during the performance period and is subject to the employee’s continued service requirements. The total fair value of PSUs vested during the years ended March 31, 2022, 2021, and 2020 was $1.0 million, $3.6 million, and $0.8 million, respectively.

(G) Share-Based Compensation

Share-based compensation was as follows (in thousands):


	Year Ended March 31,
		2022		2021		2020
Share-based compensation recognized as:
SG&A expense		$	22,918	$	39,627	$	25,727
R&D expense		16,010		14,049		14,524
Total		$	38,928	$	53,676	$	40,251

Share-based compensation capitalized to inventories was not material during the year ended March 31, 2022. There was no share-based compensation capitalized to inventories for the years ended March 31, 2021 and 2020.

Total unrecognized share-based compensation was approximately $83.0 million as of March 31, 2022 and is expected to be recognized over a weighted-average period of approximately 2.8 years.

Share based compensation included in SG&A for the year ended March 31, 2022 includes $1.7 million related to the settlement and remeasurement of the Company’s former Principal Executive Officer’s equity awards (see Note 10(H)) and $1.3 million of expense related to the accelerated vesting and modification of the post-termination exercise period of the Company’s former Principal Financial Accounting Officer’s equity awards (see Note 10(I)).

Share-based compensation included in SG&A expense for the year ended March 31, 2021 includes $25.7 million of incremental expense as a result of the separation of the Company’s former Principal Executive Officer (see Note 10(H)).

Share-based compensation included in SG&A and R&D expense for the year ended March 31, 2020 includes $10.2 million and $1.8 million, respectively, related to the accelerated vesting of certain share-based payment awards as a result of the change in control of the Company described in Note 6(A).

(H) Separation Agreement with Former Principal Executive Officer

In January 2021, the Company entered into a Separation and General Release Agreement with its former Principal Executive Officer. Pursuant to the terms of this agreement, all of the former Principal Executive Officer’s then outstanding and unvested equity awards became fully vested. In addition, the post-termination period during which the former Principal Executive Officer could exercise her outstanding stock options was extended to 12 months. The former Principal Executive Officer granted Sumitovant or any Sumitovant affiliate a right of first refusal to purchase her common shares of the Company under certain circumstances and provide the Company and its affiliates a general release of claims.

As a result of the repurchase feature described above, the outstanding awards were reclassified from additional paid-in capital to current liabilities. The share-based compensation liabilities were remeasured at fair value each reporting period end, with the change in fair value recorded as share-based compensation within SG&A expense until the stock options were exercised and the common shares sold to Sumitovant, to the market, or otherwise settled, or the former Principal Executive Officer held the common shares for a period of at least six months. As of March 31, 2021, $21.6 million is included in share-based compensation liabilities on the consolidated balance sheet. The former Principal Executive Officer’s outstanding stock options were exercisable through January 11, 2022. On January 11, 2022, 331,265 stock options were canceled and the remaining share-based compensation liability was reclassified to additional paid-in capital.

(I) Separation Agreement with Former Principal Financial and Accounting Officer

In August 2021, the Company entered into a Separation Agreement and General Release with its former Principal Financial and Accounting Officer. Pursuant to the terms of this agreement, 25% of the former Principal Financial and Accounting Officer’s then outstanding and unvested equity awards became fully vested. In addition, the post-termination period during which he could exercise his outstanding stock options was extended to six months.

Defined Contribution Plan	12 Months Ended
Defined Contribution Plan	Mar. 31, 2022
Retirement Benefits [Abstract]
Defined Contribution Plan	Defined Contribution PlanThe Company sponsors a defined contribution plan pursuant to Section 401(k) of the U.S. Internal Revenue Code that allows eligible participating employees to contribute up to 90% of their eligible compensation, subject to maximum deferral limits specified by the Internal Revenue Code. Beginning in February 2020, the Company implemented a discretionary employer matching contribution of $0.50 for every $1.00 contributed by a participating employee up to 6% of the employee’s eligible compensation, which such matching contributions becoming fully vested immediately. For the years ended March 31, 2022, 2021, and 2020, the Company recorded total expense for matching contributions of $3.0 million, $1.6 million, and $0.2 million, respectively.

Leases

12 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

The Company adopted ASU 2016-2, Leases, (Topic 842) as of April 1, 2019 on a modified retrospective basis and did not restate comparative periods as permitted under the transition guidance. The Company elected the practical expedient not to apply the recognition and measurement guidance of Topic 842 to short-term leases.

The Company leases 40,232 square feet of office space located in Brisbane, California pursuant to a lease agreement, as amended, that expires in May 2026. The Company has the option to extend the lease term for an additional seven years but is not reasonably certain that it will exercise the option and has therefore excluded it from the lease term. The lease agreement, as amended, required the Company to deliver an irrevocable standby letter of credit in the amount of $0.5 million to the landlord, the amount of which is subject to reduction to approximately $0.2 million if certain conditions are met.

The Company subleases an additional 20,116 square feet of office space within the same building as its current corporate office space located in Brisbane, California. The sublease term expires in February 2024. The sublease required the Company to deliver an irrevocable standby letter of credit to the sublessor for the duration of the lease in the amount of $0.2 million.

In June 2020, the Company entered into an agreement to lease fleet vehicles along with certain services whereby the Company leases vehicles to be delivered by the lessor from time to time with various monthly costs depending on the vehicles delivered for a term of one year, commencing on each corresponding delivery date. The Company maintains a letter of credit of $1.2 million as collateral in favor of the lessor. The Company recognizes vehicle lease payments as expense in the consolidated statements of operations on a straight-line basis over the lease term and variable lease payments are recognized as they occur in the consolidated statements of operations.

The Company has no other significant operating, financing, or short-term leases.

The Company recognizes rent expense on a straight-line basis over the non-cancelable term of its operating leases. The components of operating lease and short-term lease expenses were as follows (in thousands):


	Year Ended March 31,
	2022		2021		2020
Operating lease cost	$	2,914	$	2,914	$	2,496
Short-term lease cost	1,710		5		—
Variable lease cost (1)	1,171		538		225
Total operating lease cost	$	5,795	$	3,457	$	2,721

(1) Variable lease cost includes common area maintenance and utilities costs that are not included in operating lease liabilities and are expensed as incurred, and maintenance and one-time charges related to the short-term leases.

Certain information related to the Company’s operating lease right-of-use assets and operating lease liabilities was as follows (in thousands):


	Year Ended March 31,
	2022		2021		2020
Cash paid for operating lease liabilities	$	3,028	$	2,939	$	2,289
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities	$	—	$	—	$	12,237

As of March 31, 2022, the Company’s operating leases had a weighted average remaining lease term of 3.8 years and a weighted average discount rate of 12.3%.

As of March 31, 2022, maturities of operating lease liabilities were as follows (in thousands):


Years Ended March 31,
2023	$	3,127
2024	3,053
2025	2,409
2026	2,482
Thereafter	416
Total lease payments	11,487
Less imputed interest (1)	(2,298)
Present value of future minimum lease payments	9,189
Less operating lease liability, current portion	(2,148)
Operating lease liability, long-term portion	$	7,041

(1) The Company’s lease agreements do not provide an implicit rate. The imputed interest was determined using the Company’s incremental borrowing rate, which represents an estimated rate of interest that it would have to pay to borrow equivalent funds on a collateralized basis over a similar term at the lease inception date.

Collaboration and License Agreements

12 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Collaboration and License Agreements

(A) Richter Development and Commercialization Agreement

On March 30, 2020, one of the Company’s subsidiaries, MSG, entered into an exclusive license agreement with Richter for Richter to commercialize relugolix combination tablet for uterine fibroids and endometriosis in Europe, the Commonwealth of Independent States including Russia, Latin America, Australia, and New Zealand (the “Richter Development and Commercialization Agreement”). Under the terms of the Richter Development and Commercialization Agreement, the Company received an upfront payment of $40.0 million on March 31, 2020, is eligible to receive up to $40.0 million in regulatory milestone payments (of which $25.0 million has been received), $107.5 million in sales-related milestones, and tiered royalties on net sales following regulatory approval.

Under the terms of the Richter Development and Commercialization Agreement, the Company continues to lead global development of relugolix combination tablet. The Company also agreed to assist Richter in transferring manufacturing technology from the Company’s CMOs to Richter to enable Richter to manufacture relugolix combination tablet. The Company agreed to supply Richter with quantities of relugolix combination tablet for its territories pursuant to the Company’s agreements with its CMOs. Richter is responsible for local clinical development, manufacturing, and all commercialization activities for its territories. The Company has also granted Richter an option to collaborate with the Company on relugolix combination tablet for future indications in women’s health other than fertility.

The Company determined that the transaction price under the Richter Development and Commercialization Agreement totaled $50.0 million, consisting of the upfront payment of $40.0 million received on March 31, 2020 and a $10.0 million regulatory milestone payment received in April 2020. No other regulatory milestones, sales-related milestones, or royalties on net sales following regulatory approval were included in the transaction price given the substantial uncertainty related to their achievement. The Company concluded that Richter represented a customer and applied relevant guidance from ASC 606. The Company identified one material combined performance obligation to grant a license to Richter to certain of its intellectual property and to deliver certain clinical and regulatory data packages for relugolix combination tablet, the drug used for both potential indications of uterine fibroids and endometriosis. The Company determined that its grant of a license to Richter to certain of its intellectual property was not distinct from the delivery of certain clinical and regulatory data packages pertaining to relugolix combination tablet. In evaluating the appropriate measure for the Company’s performance under the combined performance obligation, the Company determined that revenues should be recognized as data packages are delivered to Richter based on the relative value of the data packages delivered to date compared to the totality of the data packages it is obligated to deliver under the Richter Development and Commercialization Agreement. The Company evaluated the measure of progress each reporting period and, if necessary, adjusted the measure of performance and related revenue recognition. Based upon the Company’s assessment of its progress toward delivering relugolix combination tablet clinical and regulatory data packages to Richter, the Company concluded that as of March 31, 2021, it had satisfied approximately two-thirds of the combined performance obligation and recognized $33.3 million of the transaction price as Richter license and milestone revenue during the year ended March 31, 2021. The Company recognized the remaining $16.7 million of the transaction price as Richter license and milestone revenue during the year ended March 31, 2022, as the Company completed delivery of the remaining

substantive relugolix combination tablet data packages to Richter. There was no such revenue recognized in the year ended March 31, 2020.

On July 16, 2021, the EC approved RYEQO as the first and only long-term, once-daily oral treatment in Europe for moderate to severe symptoms of uterine fibroids in adult women of reproductive age. This approval triggered a $15.0 million regulatory milestone payment from Richter, which the Company recorded as Richter license and milestone revenue during the year ended March 31, 2022.

The term of the Richter Development and Commercialization Agreement shall expire on a country-by-country basis upon expiry of the Royalty Term (as defined in the Richter Development and Commercialization Agreement) for the respective product in a country in the Richter Territory. The Richter Development and Commercialization Agreement may be terminated in its entirety or on a country-by-country basis by mutual consent of the parties, or by either party for the uncured material breach of the other party, for bankruptcy of the other party, and for certain other reasons in accordance with the terms of the Richter Development and Commercialization Agreement.

(B) Pfizer Collaboration and License Agreement

On December 26, 2020, one of the Company’s subsidiaries, MSG, and Pfizer, entered into a collaboration and license agreement (the “Pfizer Collaboration and License Agreement”), pursuant to which the Company and Pfizer collaborate to jointly develop and commercialize relugolix in oncology and women’s health in the U.S. and Canada (the “Co-Promotion Territory”). In addition, Pfizer also received an option to acquire exclusive commercialization and development rights to relugolix in oncology outside the Co-Promotion Territory, excluding certain Asian countries (the “Pfizer Territory”). Pfizer notified the Company on October 22, 2021 of its decision to decline this option.

In the Co-Promotion Territory, the Company and Pfizer equally share profits and certain expenses, including certain pre-launch inventory costs incurred by the Company prior to the effective date of the Pfizer Collaboration and License Agreement (the “Allowable Expenses”). The Company remains responsible for regulatory interactions and drug supply and continues to lead clinical development for MYFEMBREE in the women’s health indications, while development for ORGOVYX is shared equally among the parties.

In the U.S., the Company is the principal on all sales transactions with third parties and recognizes 100% of product sales to third parties as revenue from contracts with customers. The Company concluded that based on the principal versus agent guidance in ASC 606, it has primary responsibility for fulfilling customer orders, controls inventory before it is sold to third party customers, assumes the risk of inventory loss, and maintains discretion in establishing product price.

Pursuant to the terms of the Pfizer Collaboration and License Agreement, the Company received an upfront payment of $650.0 million in December 2020, and is eligible to receive up to $3.8 billion of milestone payments, including two regulatory milestones of $100.0 million upon each FDA approval for MYFEMBREE in uterine fibroids and endometriosis ($200.0 million in the aggregate), and tiered sales milestones of up to $3.5 billion upon reaching certain thresholds of annual net sales for oncology and the combined women’s health indications in the Co-Promotion Territory. In July 2021, the Company received a $100.0 million regulatory milestone payment from Pfizer that was triggered upon the FDA approval of MYFEMBREE for the management of heavy menstrual bleeding associated with uterine fibroids on May 26, 2021.

Pursuant to the terms of the Pfizer Collaboration and License Agreement, the Company has and will continue to bear Pfizer’s share of Allowable Expenses, up to a maximum of $100.0 million for calendar year 2021 and up to a maximum of $50.0 million for calendar year 2022. Any unused portion will carry over into the subsequent calendar years until the Company has assumed in aggregate $150.0 million of Pfizer’s share of the Allowable Expenses.

The term of the Pfizer Collaboration and License Agreement continues until no products are sold and all development activities have terminated in the Co-Promotion Territory. The Pfizer Collaboration and License Agreement may be terminated early by either party for the uncured material breach of the other party or for bankruptcy or other insolvency proceeding of the other party. In addition, Pfizer has certain other termination rights and may terminate the Pfizer Collaboration and License Agreement early upon providing written notice to the Company pursuant to the terms of the Pfizer Collaboration and License Agreement.

The Company assessed the Pfizer Collaboration and License Agreement and determined that it meets both criteria to be considered a collaborative agreement within the scope of ASC 808: active participation by both parties and exposures to significant risks and rewards dependent on the commercial success of the activities. Although the Company is lead party and will perform many activities, both development and commercialization responsibilities are assigned between parties and both parties participate on joint steering and other committees overseeing the collaboration activities. Both parties are exposed to significant risks and rewards based on the economic outcomes of the collaboration through cost sharing and profit (loss) sharing provisions. Net payments to/from Pfizer for Pfizer’s share of the net profits and Allowable Expenses will be disaggregated and

presented in the Company’s consolidated statements of operations according to the nature of the expense (e.g., collaboration expense, R&D expenses, or SG&A expenses).

As discussed above, the Company received a $650.0 million upfront payment from Pfizer in December 30, 2020, of which $150.0 million is Pfizer’s advanced reimbursement for Pfizer’s share of Allowable Expenses (up to $100.0 million for calendar year 2021 and up to $50.0 million for calendar year 2022). The Company concluded that the prepayment by Pfizer of its share of Allowable Expenses represents a significant financing component since the Company received the cash flows at the outset of the arrangement, rather than over a two-year period. Accordingly, the Company reduced the amount of the advanced reimbursement by approximately $3.6 million, representing the implied financing costs based on the Company’s incremental borrowing rate that was derived based on the Sumitomo Pharma Loan Agreement, and recorded the discounted value of $146.4 million on the consolidated balance sheet as a deposit liability (cost share advance from Pfizer) as of the transaction date, split between a current and a non-current portion, based on the expected timing of Allowable Expenses subject to cost share. The financing component has been and will continue to be accreted to interest expense utilizing a method that approximates the effective yield method over the period in which the cost share advance is expected to be used. The remainder of the upfront payment was recorded as deferred revenue and has been and will continue to be recognized as Pfizer collaboration revenue on a straight-line basis over the estimated term of the agreement of six years, which was estimated by the Company based upon the terms of the Pfizer Collaboration and License Agreement, including the termination provisions contained therein. The Company determined straight-line amortization to be appropriate because the upfront payment represents payment for Pfizer’s right to participate in the collaboration activities, including both commercialization and development activities, which are expected to be realized evenly over this period.

The achievement of regulatory milestones is outside of the Company’s control and therefore was not deemed probable at contract inception. Amounts associated with the regulatory milestones were not initially recognized. Upon achievement of the related regulatory milestones, cumulative catch-up revenue will be recorded as Pfizer collaboration revenue in the period in which the respective regulatory milestone is achieved, and the remainder will be recognized over the remaining contract term. The Company determined that, conceptually, the regulatory milestone payments represent payment for development activities that will continue to benefit the collaboration as the products move toward commercialization. Accordingly, the recognition of revenue associated with the regulatory milestones follows the same amortization model as the upfront payment described above.

Similar to the regulatory milestones, sales-based milestone payments will not initially be recognized due to the uncertainty associated with the future commercial outcomes of ORGOVYX and MYFEMBREE. Upon achievement, the sales-based milestones will be recognized as revenue immediately in the period when the annual sales thresholds are met as the payments represent consideration for past activities that are completed and culminated in the annual sales thresholds being met.

The amount due to Pfizer as of March 31, 2022 was approximately $32.6 million and consisted of $14.1 million payable to Pfizer for Pfizer’s 50% share of net profits on sales of ORGOVYX and MYFEMBREE in the U.S. and approximately $18.5 million for 50% of Pfizer’s reimbursement of Allowable Expenses. 100% of all expenses related to Pfizer under the Pfizer Collaboration and License Agreement are initially expensed and then the full pool of expenses incurred by both the Company and Pfizer are reduced through application of the cost sharing allowance.

The amounts due to Pfizer as of March 31, 2021 was approximately $1.9 million and consisted of $1.8 million payable to Pfizer for Pfizer’s 50% share of net profits on sales of ORGOVYX in the U.S. and approximately $0.1 million of Pfizer’s reimbursement of Allowable Expenses.

The Company determined that the option exercise fee associated with Pfizer’s option to acquire exclusive commercialization and development rights to relugolix in oncology outside the Co-Promotion Territory, excluding certain Asian countries, did not give rise to a material right since the option fee, coupled with the net royalty payments, reflected its standalone selling price. As such, no separate accounting was required with respect to the option at contract inception. Pfizer notified the Company on October 22, 2021 of its decision to decline this option.

The Company records contract liabilities when cash payments are received or due in advance of the Company’s performance pursuant to license and collaboration agreements. The Company’s contract liabilities consist of deferred revenue and a cost share advance from its collaboration partner, Pfizer.

The following table presents changes in the Company’s contract liabilities during the years ended March 31, 2022 and 2021 (in thousands):


	Balance at March 31, 2021		Additions		Imputed Interest		Deductions		Balance at March 31, 2022
Contract liabilities:
Deferred revenue(1)	$	497,933	$	100,000	$	—	$	(121,663)	$	476,270
Cost share advance from Pfizer(2)	$	121,862	$	—	$	2,413	$	(90,457)	$	33,818


	Balance at March 31, 2020		Additions		Imputed Interest		Deductions		Balance at March 31, 2021
Contract liabilities:
Deferred revenue(1)	$	40,000	$	513,620	$	—	$	(55,687)	$	497,933
Cost share advance from Pfizer(2)	$	—	$	146,384	$	635	$	(25,157)	$	121,862

(1) Includes $100.6 million and $375.7 million presented as current and non-current, respectively, on the consolidated balance sheet as of March 31, 2022. Includes $100.6 million and $397.4 million presented as current and non-current, respectively, on the consolidated balance sheet as of March 31, 2021.

(2) Includes $33.8 million presented as current on the consolidated balance sheet as of March 31, 2022. Includes $92.4 million and $29.4 million presented as current and non-current, respectively, on the consolidated balance sheet as of March 31, 2021.

The Company had no contract assets as of March 31, 2022 and 2021.

During the year ended March 31, 2022, deferred revenue decreased by $21.7 million. The net decrease was the result of the recognition of $105.0 million of Pfizer collaboration revenue and $16.7 million of Richter license and milestone revenue, partially offset by a $100.0 million regulatory milestone from Pfizer that was triggered upon the FDA approval of MYFEMBREE for the management of heavy menstrual bleeding associated with uterine fibroids on May 26, 2021.

During the year ended March 31, 2021, deferred revenue increased by $457.9 million. The increase was the net result of a $503.6 million upfront payment received from Pfizer and a $10.0 million regulatory milestone payment received from Richter, partially offset by the recognition of $33.3 million of license and milestone revenue related to the Richter Development and Commercialization Agreement and the recognition of $22.4 million of collaboration revenue related to the Pfizer Collaboration and License Agreement.

During the year ended March 31, 2022, cost share advance from Pfizer decreased by $88.0 million. The decrease was the net result of the application of 100% of shared Allowable Expenses incurred by the Company and 50% of reimbursement of Allowable Expenses incurred by Pfizer of approximately $90.4 million (consisting of $30.7 million and $59.7 million in reductions to R&D expenses and SG&A expenses, respectively), partially offset by accretion of the implied financing component of $2.4 million.

During the year ended March 31, 2021, cost share advance from Pfizer increased by $121.9 million. The increase was the net result of the cost share advance of $150.0 million (discounted to a present value of $146.4 million) received from Pfizer, partially offset by the application of 100% shared Allowable Expenses incurred by the Company and 50% of reimbursement of Allowable Expenses incurred by Pfizer of $25.2 million (consisting of $14.1 million and $11.1 million in reductions to R&D expenses and SG&A expenses, respectively), and the accretion of the implied financing component of $0.6 million.

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies (A) Legal Contingencies The Company may be, from time to time, a party to various disputes and claims arising from normal business activities. The Company accrues for loss contingencies when available information indicates that it is probable that a liability has been incurred and the amount of such liability can be reasonably estimated. For cases in which the Company believes that a reasonably possible loss exists, the Company discloses the facts and circumstances of the loss contingency, including an estimable range, if possible. The Company is currently not involved in any material legal proceedings. (B) Contract Service Providers In the normal course of business, the Company enters into agreements with contract service providers to assist in the performance of its R&D and clinical and commercial manufacturing activities. Subject to required notice periods and the Company’s obligations under binding purchase orders, the Company can elect to discontinue the work under these agreements at any time. The Company expects to enter into additional collaborative research, contract research, clinical and commercial manufacturing, and supplier agreements in the future, which may require upfront payments and long-term commitments of capital resources. (C) Indemnification Agreements The Company has agreed to indemnify its officers and directors for certain events or occurrences, subject to certain limits, while the officer or director was serving at the Company’s request in such capacity. The maximum amount of potential future indemnification liability is unlimited; however, the Company holds directors’ and officers’ liability insurance which limits the Company’s exposure and may enable it to recover a portion of any future amounts paid. In the normal course of business, the Company also enters into contracts and agreements with service providers and other parties with which it conducts business that contain indemnification provisions pursuant to which the Company has agreed to indemnify the party against certain types of third-party claims. The Company has agreed to indemnify Sumitomo Pharma against certain losses, claims, liabilities and related expenses incurred by Sumitomo Pharma, subject to the terms of the Sumitomo Pharma Loan Agreement and the Investor Rights Agreement. The Company has also agreed to indemnify Sunovion against certain losses, claims, liabilities and related expenses incurred by Sunovion, subject to the terms of the Market Access Services Agreement, as amended. The Company has not experienced any material losses related to these indemnification obligations, and no material claims with respect thereto were outstanding. The Company does not expect significant claims related to these indemnification obligations and, consequently, concluded that the fair value of these obligations is negligible, and no related accruals have been established. (D) Takeda Agreements On April 29, 2016, Takeda Pharmaceuticals International AG (“Takeda”), a subsidiary of Takeda Pharmaceutical Company Limited, the originator of relugolix, granted the Company a worldwide license to develop and commercialize relugolix (excluding Japan and certain other Asian countries) and an exclusive right to develop and commercialize MVT-602 in all countries worldwide. Pursuant to the license agreement (the “Takeda License Agreement”), Takeda granted to the Company an exclusive, royalty-bearing license under certain patents and other intellectual property controlled by Takeda to develop and commercialize relugolix and MVT-602, and products containing these compounds for all human diseases and conditions. Under the Takeda License Agreement, the Company will pay Takeda a fixed, high single-digit royalty on net sales of certain relugolix products, a low single-digit royalty on net sales of certain other relugolix products, and a high single-digit royalty on net sales of MVT-602 products in the Company’s territory, all subject to certain agreed reductions. For the years ended March 31, 2022 and 2021, the Company recorded royalty expense to Takeda of $6.9 million and $0.3 million, respectively, which is included in cost of product revenue on the consolidated statements of operations. No amounts were recorded in the year ended March 31, 2020. As of March 31, 2022 and 2021, the Company recorded royalties payable to Takeda of $2.5 million and $0.3 million, respectively, which are included in the accrued expenses and other current liabilities on the consolidated balance sheets. Takeda will pay the Company a high single-digit royalty on net sales of relugolix products for prostate cancer in the Takeda Territory, subject to certain agreed reductions. Royalties are required to be paid, on a product-by-product and country-by-country basis, until the latest to occur of the expiration of the last to expire valid claim of a licensed patent covering such product in such country, the expiration of regulatory exclusivity for such product in such country, or 10 years after the first commercial sale of such product in such country. Under the Takeda License Agreement, there was no upfront payment and there are no payments upon the achievement of clinical development or marketing approval milestones. If the Takeda License Agreement is terminated in its entirety or with respect to relugolix for prostate cancer, other than for safety reasons or by the Company for Takeda’s uncured material breach, prior to receipt of the first regulatory approval of relugolix for prostate cancer in Japan, then the Company must either reimburse Takeda for its out of pocket costs and expenses directly incurred in connection with Takeda’s completion of the relugolix development for prostate cancer, up to an agreed upon cap, or complete by itself the conduct of any clinical studies of relugolix for prostate cancer that are ongoing as of the effective date of such termination, at its cost and expense. In May 2018, the Company entered into a Commercial Manufacturing and Supply Agreement with Takeda (the “Takeda Commercial Supply Agreement”) pursuant to which Takeda agreed to supply the Company and the Company agreed to obtain from Takeda certain quantities of relugolix drug substance according to agreed-upon quality specifications. The initial term of the Takeda Commercial Supply Agreement began on May 30, 2018 and will continue for five years. At the end of the initial term, the Takeda Commercial Supply Agreement will automatically renew for successive one-year terms, unless either party gives notice of termination to the other at least 12 months prior to the end of the then-current term. The Takeda Commercial Supply Agreement may be terminated by either party upon 90 days’ notice of an uncured material breach of its terms by the other party, or immediately upon notice to the other party of a party’s bankruptcy. Each party will also have the right to terminate the Takeda Commercial Supply Agreement, in whole or in part, for any reason upon 180 days’ prior written notice to the other party, provided that any then-open purchase orders will remain in effect and be binding on both parties. The Takeda Commercial Supply Agreement, including any then-open purchase orders thereunder, will terminate immediately upon the termination of the Takeda License Agreement in accordance with its terms.

Subsequent Event	12 Months Ended
Subsequent Event	Mar. 31, 2022
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event On May 5, 2022, one of the Company’s subsidiaries, MSG, entered into an exclusive license agreement (the “Accord License Agreement”) with Accord Healthcare, Ltd. (“Accord”) and Intas Pharmaceuticals, Ltd., parent entity of Accord, for Accord to commercialize relugolix for the treatment of advanced hormone-sensitive prostate cancer under the trade name ORGOVYX® (relugolix 120 mg) in the European Economic Area, U.K., Switzerland, and Turkey, with the right of first negotiation if the Company decides to enter into licensing arrangements in countries in the Middle East, Africa, and India. Under the terms of the Accord License Agreement, the Company is entitled to receive an upfront payment of $50.0 million, which it expects to receive in the three months ending June 30, 2022. The Company is also eligible to receive up to $90.5 million in commercial launch, sales-based, and other milestones, as well as tiered royalties from the high-teens to mid-twenties on net sales of ORGOVYX in Accord’s territories. Under the terms of the Accord License Agreement, the Company retains all rights to relugolix in the U.S. with its collaboration partner, Pfizer, as well as rights to relugolix in other therapeutic areas outside of prostate cancer, uterine fibroids, and endometriosis in Europe. The Company will continue to lead the global development of relugolix and provide initial product supply to Accord. Accord will be responsible for certain local clinical development and all commercialization for its territories, and has the option to manufacture relugolix in the future. The term of the Accord License Agreement shall expire on a country-by-country basis upon expiry of the Royalty Term (as defined in the Accord License Agreement). The Accord License Agreement may be terminated in its entirety or on a country-by-country basis by either party for the uncured material breach or bankruptcy of the other party, and for certain other reasons in accordance with the terms of the Accord License Agreement.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Company’s fiscal year ends on March 31, and its first three fiscal quarters end on June 30, September 30 and December 31. The Company manages its operations as a single segment for purposes of assessing performance, making operating decisions, and allocating resources. This one operating and reporting segment primarily focuses on the development and commercialization of innovative medicines in areas of unmet medical need. The accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). Any reference in these notes to applicable accounting guidance is meant to refer to the authoritative U.S. GAAP included in the Accounting Standards Codification (“ASC”), and Accounting Standards Update (“ASU”) issued by the Financial Accounting Standards Board (“FASB”). The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Liquidity and Capital Resources	Liquidity and Capital Resources As of March 31, 2022, the Company had approximately $434.2 million in cash, cash equivalents, and marketable securities. The Company believes that its existing cash, cash equivalents, and marketable securities will be sufficient to fund its anticipated operating expenses and capital expenditure requirements for at least the next 12 months from the date of issuance of this Annual Report on Form 10-K (“Annual Report”). In future periods, if the Company’s cash, cash equivalents, marketable securities, and amounts that it expects to generate from product sales and/or third-party collaboration payments are not sufficient to enable the Company to fund its operations, the Company may need to raise additional funds in the form of equity, debt, or from other sources. There can be no assurances that such funding sources will be available at terms acceptable to the Company, or at all. If the Company has insufficient funding to meet its working capital needs, it could be required to delay, limit, reduce, or terminate its drug development programs, commercialization efforts, and/or limit or cease operations.As of March 31, 2022, the Company had approximately $41.3 million of borrowing capacity available to it under the Sumitomo Pharma Loan Agreement (see Note 6(A)). As of March 31, 2022, the Company is also eligible to earn up to $3.6 billion and $122.5 million of additional milestone payments from Pfizer and Richter pursuant to the Pfizer Collaboration and License Agreement (see Note 13(B)) and the Richter Development and Commercialization Agreement (see Note 13(A)), respectively, as well as potential royalty payments on net sales under the Richter Development and Commercialization Agreement.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the accompanying notes, and the reported amounts of revenue and expenses during the reported periods. Actual results could differ materially from those estimates. On an ongoing basis, the Company’s management evaluates its estimates, including those related to valuation of inventories, impairment testing for long-lived-assets, variables used in calculating the fair value of the Company’s equity awards, expected achievement of performance-based vesting criteria for equity awards, variable consideration and other relevant inputs impacting the gross and net revenue recognition, contingent liabilities, recoverability of deferred tax assets, determination of lease term, research and development (“R&D”) expenses and accruals, and effective income tax rates. Management bases estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period, that are not readily apparent from other sources. Estimates and assumptions are periodically reviewed considering changes in circumstances, facts, or experience. Changes in estimates and assumptions are reflected in reported results in the period in which they become known. In addition, management’s assessment of the Company’s ability to continue as a going concern involves the estimation of the amount and timing of future cash inflows and outflows. The Company has assessed the impact that the COVID-19 pandemic and the conflict in Ukraine has had on its operations and financial results as of March 31, 2022, and through May 11, 2022, the issuance date of these consolidated financial statements. The Company’s analysis was informed by the facts and circumstances as they were known to the Company. Through May 11, 2022, the Company’s results of operations and cash flows have not been significantly impacted by the COVID-19 pandemic or the conflict in Ukraine. The Company is not aware of any specific event or circumstance that would require an update to its estimates, judgments, and assumptions or a revision of the carrying value of the Company’s assets or liabilities as of May 11, 2022.
Reclassification	Reclassifications Certain reclassifications have been made to the consolidated statements of cash flows for the years ended March 31, 2021, and 2020 to place them on a comparable basis with the year ended March 31, 2022, regarding the presentation of amortization of operating lease right-of-use assets of $1.5 million and $1.1 million, respectively. The reclassifications had no effect on the previously reported results of operations. The reclassifications had no effect on previously reported cash flows from operating activities in the consolidated statements of cash flows.
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk include cash, cash equivalents, and marketable securities. The Company is exposed to credit risk in the event of default by the financial institutions holding its cash and the issuers of its cash equivalents and marketable securities. The Company maintains its cash deposits and cash equivalents in highly-rated, federally-insured financial institutions in excess of federally insured limits. The Company has established guidelines relative to diversification and maturities of investments to maintain safety and liquidity. The Company has not historically experienced any significant credit losses related to these financial instruments and does not believe that it is exposed to any significant credit risk related to these instruments. The Company is also subject to credit risk from accounts receivable from product sales, amount due from its related party, and amounts due from its collaboration and commercialization partners. The Company monitors its exposure and records a reserve against uncollectible amounts as necessary.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents include cash deposits in banks and all highly liquid investments that are readily convertible to cash (maturity of three months or less at the time of purchase). Interest income consists of interest earned and the accretion of discounts to maturity for cash equivalents and marketable securities. Restricted cash consists of funds held or designated to satisfy the requirements of certain agreements that are restricted in their use. As of March 31, 2022, and 2021, restricted cash includes approximately $7.1 million and $1.0 million, respectively, that is held in an escrow fund for use by Sunovion Pharmaceuticals Inc. (“Sunovion”), a subsidiary of Sumitomo Pharma, to manage payments for rebates, chargebacks, and similar fees pursuant to the Market Access Services Agreement (see Note 6(C)).
Accounts Receivable, Net	Accounts Receivable, Net The Company’s accounts receivable consists of amounts due from customers related to product sales and have standard payment terms. For certain customers, the accounts receivable for the customer is net of prompt payment discounts. The Company monitors the financial performance and creditworthiness of its customers so that it can properly assess and respond to changes in their credit profile. The Company reserves against accounts receivable for estimated losses that may arise from a customer’s inability to pay, and any amounts determined to be uncollectible are written off against the reserve when it is probable that the receivable will not be collected. The Company has historically not experienced significant credit losses and no amounts were reserved for estimated losses as of March 31, 2022, and 2021.
Marketable Debt Securities	Marketable Debt Securities Investments in marketable debt securities are held in custodial accounts at a financial institution and managed by the Company’s investment advisor based on the Company’s investment guidelines. The Company considers all highly liquid investments in securities with a maturity of greater than three months at the time of purchase to be marketable securities. The Company classifies its marketable debt securities as available-for-sale at the time of purchase and reevaluates such designation at each balance sheet date. Unrealized gains and losses on available-for-sale securities are excluded from earnings and are recorded in accumulated other comprehensive (loss) income until realized. Any unrealized losses are evaluated for other-than-temporary impairment at each balance sheet date. Realized gains and losses are determined based on the specific identification method. The Company does not intend to sell its marketable debt securities that are in an unrealized loss position, and it is unlikely that the Company will be required to sell its marketable debt securities before recovery of their amortized cost basis, which may be maturity. Factors considered in determining whether a loss is temporary include the length of time and extent to which the fair value has been less than the amortized cost basis and whether the Company intends to sell the security or whether it is more likely than not that the Company would be required to sell the marketable debt security before recovery of the amortized cost basis. See Note 4 for additional information.
Fair Value Measurements	Fair Value Measurements The Company utilizes fair value measurement guidance prescribed by accounting standards to value its financial instruments. The guidance establishes a fair value hierarchy for financial instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s own assumptions (unobservable inputs). Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. Fair value is defined as the exchange price, or exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy contains three levels of inputs that may be used to measure fair value, in accordance with ASC 820, Fair Value Measurement, of which the first two are considered observable and the last is considered unobservable. These levels are as follows: •Level 1—inputs, which include unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access; •Level 2—inputs, which include observable inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability; and •Level 3—inputs, which include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies, or similar valuation techniques, as well as significant management judgment or estimation. To the extent the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The recorded amounts of certain financial instruments, including cash, cash equivalents, accounts receivable, accounts payable, accrued liabilities, amounts due to Pfizer, and amounts due to and due from related parties, approximate fair value due to their relatively short maturities. Marketable debt securities that are classified as available-for-sale are recorded at estimated fair value and are included in Level 2 of the fair value hierarchy. The fair value of marketable debt securities is based on market prices from a variety of industry standard data providers and generally represents quoted prices for similar assets in active markets or have been derived from observable market data. Cost share advance from Pfizer is recorded at its estimated fair value and is included in Level 2 of the fair value hierarchy. Share-based compensation liabilities related to stock options are remeasured at fair value on a recurring basis using the Black-Scholes option pricing model and are included in Level 2 of the fair value hierarchy. Share-based compensation liabilities related to common shares are remeasured at fair value on a recurring basis and are included in Level 1 of the fair value hierarchy.
Inventories	Inventories The Company values its inventories at the lower-of-cost or net realizable value and determines the cost of inventories using the average-cost method. Net realizable value is the estimated selling prices in the ordinary course of the Company’s business, less reasonably predictable costs of completion, disposal, and transportation. The cost basis of the Company’s inventories is reduced for any products that are considered excessive or obsolete based upon assumptions about future demand and market conditions. Inventories include the cost for raw materials, the cost to manufacture the raw materials into finished goods, and overhead. Due to the nature of the Company’s supply chain process, inventory that is owned by the Company is physically stored at third-party warehouses, logistics providers and contract manufacturing organizations. The Company performs an assessment of the recoverability of inventories during each reporting period and writes down any excess and obsolete inventories to their net realizable value in the period in which the impairment is first identified. If they occur, such impairment charges are recorded as a component of cost of goods sold in the consolidated statements of operations. The Company capitalizes inventory costs associated with products following regulatory approval when based on management’s judgement, future commercialization is considered probable, and the future economic benefit is expected to be realized. As such, the manufacturing costs for product candidates incurred prior to regulatory approval are not capitalized, but rather expensed as R&D expenses when incurred.
Property and Equipment, net	Property and Equipment, net Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, ranging from three to seven years once the asset is installed and placed into service. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful lives of the assets. Maintenance and repairs are charged to expense as incurred. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the consolidated balance sheet and any resulting gain or loss is reflected in operations in the period realized. The Company reviews the recoverability of its long-lived assets, including the related useful lives, whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset might not be recoverable, based on undiscounted cash flows. If such assets are considered to be impaired, an impairment loss is recognized and is measured as the amount by which the carrying amount of the assets exceed their estimated fair value, which is measured based on the projected discounted future net cash flows arising from the assets.
Leases	Leases The Company determines if an arrangement includes a lease at the inception of the agreement. For each of the Company’s lease arrangements, the Company records a right-of-use asset representing the Company’s right to use an underlying asset for the lease term and a lease liability representing the Company’s obligation to make lease payments. Operating lease right-of-use assets and operating lease liabilities are recognized at the lease commencement date based on the net present value of the remaining future minimum lease payments over the lease term. If the interest rate implicit in the Company’s leases is not readily determinable, in determining the weighted-average discount rate used to calculate the net present value of lease payments, the Company utilizes an estimate of its incremental borrowing rate based on market sources including interest rates for companies with similar credit quality for agreements of similar duration, determined by class of underlying asset, to discount the lease payments. Lease expense for the Company’s operating leases is recognized on a straight-line basis over the lease term and variable lease costs are expensed as incurred. The Company elected the practical expedient not to apply the recognition and measurement requirements to short-term leases, which is any lease with a term of one year or less as of the lease commencement date. The lease may require the Company to pay additional amounts for taxes, insurance, maintenance, and other expenses, which are generally referred to as non-lease components. The Company has elected the practical expedient to combine lease and non-lease components. If a lease includes options to extend the lease term, the Company does not assume the option will be exercised in its initial lease term assessment unless there is reasonable certainty that the Company will renew based on an assessment of economic factors present as of the lease commencement date.
Collaborative Arrangements	Collaborative Arrangements The Company may enter into collaboration arrangements with pharmaceutical and biotechnology partners. The Company analyzes its collaboration arrangements to assess whether they are within the scope of ASC 808, Collaborative Arrangements, to determine whether such arrangements involve joint operating activities performed by the parties that are both active participants in the activities and exposed to significant risks and rewards dependent on the commercial success of such activities. This assessment is performed throughout the life of the arrangement based on changes in responsibilities of all parties in the arrangement. For collaboration arrangements within the scope of ASC 808 that contain multiple units of account, the Company first determines which units of account of the collaboration are deemed to be within the scope of ASC 808 and those that are reflective of a vendor-customer relationship and, therefore, within the scope of ASC 606, Revenue from Contracts with Customers. While ASC 808 defines collaboration arrangements and provides guidance on income statement presentation, classification, and disclosures related to such arrangements, it does not address recognition and measurement matters, such as (1) determining the appropriate unit of account or (2) when the recognition criteria are met. Therefore, the accounting for these arrangements is either based on an analogy to other accounting literature, such as ASC 606, or an accounting policy election by management. For units of account within collaboration arrangements that are accounted for pursuant to ASC 808, an appropriate revenue recognition method is determined and applied consistently. The Company evaluates the presentation of amounts due from its collaborative partners associated with activities in the collaborative arrangements based on the nature of each activity. Amounts received prior to satisfying the revenue recognition criteria are recorded as deferred revenue in the Company’s consolidated balance sheets. If the related efforts underlying the deferred revenue are expected to be satisfied within the next twelve months, the deferred revenue is classified in current liabilities, otherwise it is classified as a non-current liability.
Revenue Recognition	Revenue Recognition For units of account under ASC 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of ASC 606, the Company performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when or as the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within each contract, determines those that are performance obligations, and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. License, Milestone and Other Revenue For units of account under ASC 606, the Company applies significant judgment when evaluating whether contractual obligations represent distinct performance obligations, allocating transaction price to performance obligations within a contract, determining when performance obligations have been met, assessing the recognition and future reversal of variable consideration, and determining and applying appropriate methods of measuring progress for performance obligations satisfied over time. These judgments are discussed in more detail below. •Licenses of intellectual property: If the licenses to intellectual property are determined to be distinct from the other performance obligations identified in the arrangement, the Company recognizes revenues from non-refundable, upfront fees allocated to the license when the license is transferred to the licensee and the licensee is able to use and benefit from the license. For licenses that are not distinct from other promises, the Company applies judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time and, if over time, the appropriate method of measuring progress for purposes of recognizing revenue from non-refundable, upfront fees. The Company evaluates the measure of progress each reporting period and, if necessary, adjusts the related revenue recognition accordingly. •Milestone payments: At the inception of each arrangement that includes research, development or regulatory milestone payments, the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method. If it is probable that a significant revenue reversal would not occur, the associated milestone value is included in the transaction price. Milestone payments that are not within the Company’s control or the licensee, such as regulatory approvals, are not considered probable of being achieved until those approvals are received. The transaction price is then allocated to each performance obligation on a relative standalone selling price basis, for which the Company recognizes revenue as or when the performance obligations under the contract are satisfied. At the end of each subsequent reporting period, the Company re-evaluates the probability of achievement of such milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price on a cumulative catch-up basis in earnings in the period of the adjustment. •Royalties and sales-based milestone payments: For arrangements that include sales-based royalties, including sales-based milestone payments based on pre-specified level of sales, the Company recognizes revenue at the later of (i) when the related sales occur, or (ii) when the performance obligation to which some or all of the royalty has been allocated has been satisfied (or partially satisfied). Product Revenue, net The Company sells its products in the U.S. principally through wholesale and specialty distribution and pharmacy channels (collectively, “customers”). These customers subsequently resell the Company’s products to healthcare providers and patients. In addition to distribution agreements with customers, the Company enters into arrangements with healthcare providers and payors that provide for government-mandated and/or privately-negotiated rebates, chargebacks and discounts with respect to the purchase of the Company’s products. Revenues from product sales are recognized when the customer obtains control of the Company’s products, which occurs at a point in time, typically upon delivery to the customer. Revenues from product sales are recorded at the net sales price, or “transaction price,” which includes estimates of variable consideration for which reserves are established that result from (a) invoice discounts for prompt payment and specialty distributor and specialty pharmacy service fees, (b) government and private payer rebates, chargebacks, discounts and fees, (c) group purchasing organization (“GPO”) discounts, performance rebates and administrative fees, (d) product returns and (e) costs of co-pay assistance programs for patients. These reserves are based on amounts earned or to be claimed on the related sale and are classified as reductions of accounts receivable (if the amount is payable to the customer) or accrued expenses and other current liabilities (if the amount is payable to a party other than a customer). Where appropriate, the Company utilizes the expected value method to determine the appropriate amount for estimates of variable consideration. The estimates of reserves established for variable consideration reflect current contractual and statutory requirements, the Company’s historical experience, specific known market events and trends, industry data and forecasted customer buying and payment patterns. The amount of variable consideration that is included in the transaction price may be constrained and is included in net product revenues only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Actual amounts of consideration ultimately received may differ from the Company’s estimates. If actual results vary from the Company’s estimates, the Company adjusts these estimates in the period such change in estimate becomes known, which could affect net product revenue and earnings in the period of the adjustment. More specifically, these adjustments include the following: •Prompt Pay Discounts: The Company generally provides invoice discounts on product sales to its customers for prompt payment. The Company estimates that its customers will earn these discounts and fees, and deducts the full amount of these discounts and fees from its gross product revenues and accounts receivable at the time such revenues are recognized. •Product Returns: Consistent with industry practice, the Company offers its customers limited product return rights for damages, shipment errors, and expiring product; provided that the return is within a specified period around the product expiration date as set forth in the applicable individual distribution agreement. The Company does not allow product returns for product that has been dispensed to a patient. In arriving at its estimate for product returns, the Company considers historical product returns, the underlying product demand, and industry specific data. •Chargebacks: Chargebacks are discounts that occur when contracted customers purchase directly from a specialty distributor. Contracted customers, which currently consist primarily of Public Health Service institutions, Federal government entities purchasing via the Federal Supply Schedule, GPOs, and health maintenance organizations, generally purchase the product at a discounted price. The specialty distributor, in turn, charges back to the Company the difference between the price initially paid by the specialty distributor and the discounted price paid to the specialty distributor by the customer. The allowance for chargebacks is based on actual chargebacks received and an estimate of sales to contracted customers. •Rebates: Allowances for rebates include mandated discounts under the Medicaid Drug Rebate Program and the Medicare Part D prescription drug benefit. Rebates are amounts owed after the final dispensing of the product to a benefit plan participant and are based upon contractual agreements with, or statutory requirements pertaining to, Medicaid and Medicare benefit providers. The allowance for rebates is based on statutory discount rates, estimated payor mix, and expected utilization. The Company’s estimates for expected utilization of rebates are based on historical data received from specialty pharmacies and specialty distributors since launch, as well as analog data from similar products. The Company monitors sales trends and adjusts the allowance on a regular basis to reflect the most recent rebate experience. The Company’s liability for these rebates consists of invoices received, estimates of claims for the current quarter, and estimated future claims that will be made for product that has been recognized as revenue, but remains in the distribution channel inventories at the end of each reporting period. •Co-payment Assistance: The Company offers co-payment assistance to commercially insured patients meeting certain eligibility requirements. Co-payment assistance is accrued based on actual program participation and estimates of program redemption using data provided by third-party administrators. •Customer Fees: The Company pays fees to its customers for account management, data management, and other administrative services. To the extent the services received are distinct from sales of products to the customer, the Company records these payments in Selling General and Administrative (“SG&A”) expenses.
Cost of Product Revenue	Cost of Product Revenue Cost of product revenue is composed of the cost of goods sold and royalty expense payable to Takeda. Cost of goods sold consists of the cost of raw materials, third-party manufacturing costs to manufacture the raw materials into finished product, freight, and indirect overhead costs associated with sales of ORGOVYX and MYFEMBREE in the U.S. and sales of product supply to Richter. The cost of inventories written down as a result of excess, obsolescence, or other reasons is also charged to cost of goods sold. Royalty expense consists of royalties on net sales of relugolix payable to Takeda pursuant to the terms of the Takeda License Agreement (see Note 14(D)). As a result of the FDA approvals of ORGOVYX and MYFEMBREE, the Company subsequently began capitalizing inventories manufactured or purchased for each product after its respective approval date. As a result, certain manufacturing costs of ORGOVYX and MYFEMBREE were expensed as R&D expenses prior to FDA approval and, therefore, these costs are not included in cost of goods sold. Collaboration Expense to Pfizer Collaboration expense to Pfizer consists of Pfizer’s 50% share of net profits from sales of ORGOVYX and MYFEMBREE in the U.S. (see Note 13(B)).
Research and Development Expenses	Research and Development Expenses R&D expenses consist primarily of employee-related expenses, such as salaries, share-based compensation, benefits and travel expenses for employees engaged in R&D activities, expenses from third parties who conduct R&D activities on behalf of the Company, investigator grants, sponsored research, and fees incurred for regulatory submissions. R&D costs are expensed as incurred. Clinical study costs are accrued over the service periods specified in the contracts and adjusted as necessary based on an ongoing review of the level of effort and costs actually incurred. The Company expenses in-process R&D projects acquired as asset acquisitions which have not reached technological feasibility, and which have no alternative future use. The Company considers regulatory approval of product candidates to be uncertain and products manufactured prior to regulatory approval may not be sold unless regulatory approval is obtained. As such, the manufacturing costs for product candidates incurred prior to regulatory approval are not capitalized as inventory, but rather expensed as R&D expenses when incurred.
Promotional and Advertising Expense	Promotional and Advertising ExpensePromotional and advertising costs are expensed as incurred, and are included in SG&A expenses in the consolidated statements of operations. Promotional and advertising costs consist primarily of the costs of designing, producing, and distributing materials promoting the Company’s products. Certain promotional and advertising costs are shared with Pfizer pursuant to the Pfizer Collaboration and License Agreement (see Note 13(B)).
Share-Based Compensation	Share-Based Compensation The Company accounts for share-based compensation plans using the fair value recognition and measurement provisions under U.S. GAAP. The Company’s share-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense on a straight-line basis over the requisite service period, which is generally the vesting period of the respective award. The Company recognizes forfeitures in the period in which such forfeiture occurs and records share-based compensation as though all awards are expected to vest. The Company estimates the grant date fair value of stock options, and the resulting share-based compensation, using the Black-Scholes option-pricing model, which requires the use of subjective assumptions. These assumptions include: •Expected Term. The expected term represents the period that the Company’s share-based awards are expected to be outstanding and is determined using the simplified method in accordance with the Securities and Exchange Commission (“SEC”), Staff Accounting Bulletin (“SAB”) No. 107 and No. 110 (based on the mid-point between the vesting date and the end of the contractual term). •Expected Volatility. The expected volatility considers the Company’s historical volatility and weighted average measures of volatility of a peer group of companies for a period equal to the expected term of the stock options. The Company’s peer group of publicly traded biopharmaceutical companies was chosen based on their similar size, stage in the life cycle or area of specialty. •Risk-Free Interest Rate. The risk-free interest rate is based on the U.S. treasury yield curve in effect at the time of grant for the expected term of the stock option. •Expected Dividend. The Company has never paid, and does not anticipate paying, cash dividends on its common shares. Therefore, the expected dividend yield was assumed to be zero. The fair value of stock options on the grant date is estimated using the Black-Scholes option-pricing model using the single-option approach. The Black-Scholes option pricing model requires the use of highly subjective and complex assumptions, including the option’s expected term and the price volatility of the underlying stock, to determine the fair value of the award. The Company recognizes the expense associated with options using a single award approach over the requisite service period. Share-based compensation associated with restricted stock units (“RSU”) and performance share units (“PSU”) is based on the fair value of the Company’s common shares on the grant date, which equals the closing market price of the Company’s common shares on the grant date. The Company recognizes the share-based compensation related to RSUs on a straight-line basis over the requisite service period, which is generally the vesting period of the respective awards. The Company recognizes the share-based compensation related to PSUs if the performance criteria are deemed probable of being met. Share-based compensation liabilities (a current liability) are remeasured at fair value each reporting period until the common share awards are settled or become mature, with the change in fair value recorded as share-based compensation. No tax benefits for share-based compensation have been recognized in the consolidated statements of shareholders’ deficit or consolidated statements of cash flows. The Company has not recognized, and does not expect to recognize in the near future, any tax benefits related to share-based compensation as a result of its full valuation allowance on net deferred tax assets and net operating loss carryforwards.
Income Taxes	Income Taxes The Company is subject to income taxes in the United States and other foreign jurisdictions. Judgment is required in determining the Company’s expense (benefit) for income taxes and income tax assets and liabilities, including evaluating uncertainties in the application of accounting principles and complex tax laws. The Company records an expense (benefit) for income taxes for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, the Company recognizes deferred income tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as for loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. The Company recognizes the deferred income tax effects of a change in tax rates in the period of enactment. The Company records a valuation allowance to reduce the Company’s deferred tax assets to the net amount that the Company believes is more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and results of operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of its net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company recognizes tax benefits from uncertain tax positions if the Company believes that it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position as well as consideration of the available facts and circumstances. Interest and/or penalties related to income tax matters are recognized as a component of income tax expense as incurred.
Net Loss Per Common Share	Net Loss per Common Share Basic net loss per common share is computed by dividing net loss available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss by the weighted-average number of common shares and potentially dilutive shares of common stock outstanding during the period. Potential dilutive securities outstanding include stock options, restricted stock units, performance stock units, and warrants. During all periods presented, the Company incurred net losses. Accordingly, the effect of any common share equivalents would have been anti-dilutive during those periods and are not included in the calculation of diluted weighted-average number of common shares outstanding.
Change in Functional Currency	Change in Functional Currency Prior to December 1, 2020, the functional currency of the Company’s wholly-owned subsidiary in Switzerland, Myovant Sciences GmbH (“MSG”), was the local currency where the subsidiary is located, the Swiss franc. Transactions in foreign currencies were translated to the functional currency at the rate of exchange at the date of the transaction. Transaction gains and losses were recognized in foreign exchange (gain) loss in the consolidated statements of operations. The results of operations of MSG were translated to the U.S. dollar, the Company’s reporting currency, at the average rates of exchange during the period. The cumulative effect of these exchange rate adjustments was included in a separate component of other comprehensive income (loss) on the consolidated balance sheets. Effective December 1, 2020, as a result of significant changes in economic facts and circumstances in the operations of MSG, the functional currency of MSG was changed from the Swiss franc to the U.S. dollar. The change in the functional currency was accounted for prospectively from December 1, 2020. Therefore, any gains or losses that were previously recorded in accumulated other comprehensive income (loss) remain unchanged.
Pushdown Accounting	Pushdown AccountingIn November 2014, the FASB issued ASU 2014-17, Business Combinations (Topic 805): Pushdown Accounting. The ASU provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change in control event occurs. If pushdown accounting is applied to an individual change in control event, that election is irrevocable. The Company elected not to apply pushdown accounting in its consolidated financial statements upon the change in control of the Company on December 27, 2019.
Recently Adopted and Issued Accounting Pronouncements	Recently Adopted Accounting Standards In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) (“ASU 2019-12”), that eliminates certain exceptions to the general principles in ASC 740 related to intra-period tax allocation, deferred tax liability and general methodology for calculating income taxes. ASU 2019-12 also simplifies U.S. GAAP by making other changes for matters such as, franchise taxes that are partially based on income, transactions with a government that result in a step up in the tax basis of goodwill, separate financial statements of legal entities that are not subject to tax, and enacted changes in tax laws in interim periods. The Company adopted ASU 2019-12 on April 1, 2021, which did not have a material impact on the Company’s consolidated financial statements and related disclosures. Recently Issued Accounting Standards Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. These amendments apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued because of reference rate reform. The amendments are effective prospectively for all entities as of March 12, 2020 through December 31, 2022. The Company’s outstanding debt with Sumitomo Pharma bears a variable interest rate that is indexed off of 3-month LIBOR, for which publication is expected to be discontinued on June 30, 2023. In the event that 3-month LIBOR becomes unavailable, the Company and Sumitomo Pharma will negotiate in good faith to select an alternative interest rate in accordance with the Sumitomo Pharma Loan Agreement. The Company has not yet adopted this guidance and is currently evaluating the potential impact the adoption of this standard will have on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model that requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses on available-for-sale debt securities to be recorded through an allowance for credit losses instead of as a reduction in the amortized cost basis of the securities. ASU 2016-13 was effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019. Early adoption was permitted, including adoption in any interim period. In February 2020, the FASB issued ASU 2020-02, Financial Instruments-Credit Losses (Topic 326) and Leases (Topic 842) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 119 and Update to SEC Section on Effective Date Related to Accounting Standards Update No. 2016-02, Leases (Topic 842), which amended the effective date of the original pronouncement for smaller reporting companies. ASC 2016-13 and its amendments will be effective for annual and interim periods beginning after December 15, 2022 for smaller reporting companies. The Company is currently assessing the impact the adoption of this new standard will have on its consolidated financial statements and related disclosures. The Company adopted ASU 2016-2, Leases, (Topic 842) as of April 1, 2019 on a modified retrospective basis and did not restate comparative periods as permitted under the transition guidance. The Company elected the practical expedient not to apply the recognition and measurement guidance of Topic 842 to short-term leases.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Schedule of Cash, Cash Equivalents and Restricted Cash


	March 31,
	2022		2021		2020
Cash and cash equivalents	$	406,704	$	674,493	$	76,644
Restricted cash (included in other assets)	10,100		2,987		1,374
Total cash, cash equivalents and restricted cash	$	416,804	$	677,480	$	78,018

Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Common Share


	March 31,
	2022	2021	2020
Stock options	6,130,680	8,293,331	7,723,302
Restricted stock awards (unvested)	—	—	634,623
Restricted stock units and performance stock units (unvested)	4,532,619	3,571,235	945,559

Warrants	73,710	73,710	73,710
Total	10,737,009	11,938,276	9,377,194

Revenue Components (Tables)

12 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table provides information about the Company’s revenues (in thousands):


	Year Ended March 31,
	2022		2021		2020
Revenues:
Product revenue, net:
ORGOVYX	$	82,959	$	3,630	$	—
MYFEMBREE	6,355		—		—
Richter product supply and royalties	4,995		—		—
Total product revenue, net	94,309		3,630		—
Pfizer collaboration revenue:
Amortization of upfront payment	83,897		22,354		—
Amortization of regulatory milestone	21,099		—		—
Total Pfizer collaboration revenue	104,996		22,354		—
Richter license and milestone revenue	31,667		33,333		—
Total revenues	$	230,972	$	59,317	$	—

Revenue from External Customers by Geographic Areas

Product revenue, net by geography consisted of the following (in thousands):


	Year Ended March 31,
	2022		2021		2020
United States	$	89,314	$	3,630	$	—
Europe	4,995		—		—
Total product revenue, net	$	94,309	$	3,630	$	—

Summary Of Categories Of Discounts And Allowances


	Reserve -government and other incentives		Chargebacks and administrative fees		Returns		Sales Discounts		Total
Balance as of March 31, 2020	$	—	$	—	$	—	$	—	$	—
Provision related to sales in the current year	1,351		363		109		109		1,932
Credits and payments made during the current year	(508)		—		—		(30)		(538)
Balance as of March 31, 2021	843		363		109		79		1,394
Provision related to sales in the current year	38,910		13,384		2,919		2,377		57,590
Adjustments related to prior year sales	(305)		(124)		—		—		(429)
Credits and payments made during the current year	(25,714)		(10,995)		—		(1,970)		(38,679)
Balance as of March 31, 2022	$	13,734	$	2,628	$	3,028	$	486	$	19,876

The total reserves described above are summarized as components of the Company’s consolidated balance sheets as follows (in thousands):


	March 31,
	2022		2021
Reduction of accounts receivable, net	$	486	$	79
Component of accrued expenses and other current liabilities	19,390		1,315
Total revenue-related reserves	$	19,876	$	1,394

Fair Value Measurements (Tables)

12 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis and their respective input levels based on the fair value hierarchy (in thousands):


	Fair Value Measurement Using:
	Level 1		Level 2		Level 3		Total
As of March 31, 2022
Assets:
Money market funds (1)	$	69	$	—	$	—	$	69
Commercial paper (2)	—		219,772		—		219,772
Total assets	$	69	$	219,772	$	—	$	219,841


	Fair Value Measurement Using:
	Level 1		Level 2		Level 3		Total
As of March 31, 2021
Assets:
Money market funds (1)	$	36,903	$	—	$	—	$	36,903
Commercial paper (2)	—		21,689		—		21,689
U.S. agency securities (1)	—		10,000		—		10,000
Municipal bonds (3)	—		1,417		—		1,417
Total assets	$	36,903	$	33,106	$	—	$	70,009
Liabilities:
Share-based compensation liabilities - stock options (4)	$	—	$	12,113	$	—	$	12,113
Share-based compensation liabilities - common shares (5)	9,523		—		—		9,523
Total liabilities	$	9,523	$	12,113	$	—	$	21,636

(1) Included in cash and cash equivalents.

(3) Included in marketable securities.

(4) Includes 1,281,803 outstanding stock options remeasured using the Black-Scholes option-pricing model (see Note 10(H)).

(5) Includes 462,705 common shares remeasured using the Company’s March 31, 2021 closing market price of $20.58 per common share (see Note 10(H)).

Summary of Changes in Fair Value

The following table includes information regarding the Company’s share-based compensation liabilities (a current liability) for the year ended March 31, 2022 and 2021 (in thousands):


	Year Ended March 31,
	2022		2021
Balance at beginning of year	$	21,636	$	—
Reclassification from additional paid-in capital	—		17,473
Change in fair value	1,699		10,609
Settlements	(23,335)		(6,446)
Balance at end of year	$	—	$	21,636

Fair Value of Share-based Compensation Liabilities Related to Stock Options


Expected common share price volatility	72.9	%
Expected risk free interest rate	0.06	%
Expected term, in years	0.78
Expected dividend yield	—	%

Certain Balance Sheet Components (Tables)

12 Months Ended

Mar. 31, 2022

Other Liabilities Disclosure [Abstract]

Schedule of Inventory

Inventories consisted of the following (in thousands):


	March 31,
	2022		2021
Raw materials	$	663	$	1,390
Work in process	3,737		773
Finished goods	3,184		448

Total inventories	$	7,584	$	2,611

Schedule of Accrued Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


	March 31,
	2022		2021
Accrued compensation-related expenses	$	26,389	$	20,571
Accrued sales discounts, rebates, and allowances	19,390		1,315
Accrued R&D expenses	6,955		8,544
Accrued commercial expenses	7,196		7,770
Accrued other expenses	4,029		5,014
Accrued royalties payable to Takeda	2,470		301
Accrued professional fees	1,340		935
Deferred product revenue	825		162
Total accrued expenses and other current liabilities	$	68,594	$	44,612

Related Party Disclosures (Tables)

12 Months Ended

Mar. 31, 2022

Schedule of Maturities of Long-term Debt

Annual maturities of amounts outstanding as of March 31, 2022, under the Sumitomo Pharma Loan Agreement are as follows (in thousands):


Year Ended March 31,
2023	$	—
2024	—
2025	358,700
Total	$	358,700

Income Taxes (Tables)

12 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Loss Before Income Taxes and Related Tax Benefit

The income (loss) before income taxes and the related tax expense are as follows (in thousands):


	Year Ended March 31,
	2022		2021		2020
(Loss) income before income taxes:
United States	$	45,446	$	(40,663)	$	(29,509)
Switzerland	(237,903)		(201,673)		(239,666)
Bermuda	(8,415)		(12,310)		(19,054)
Other(1)	(61)		(152)		1
Total loss before income taxes	$	(200,933)	$	(254,798)	$	(288,228)

Current taxes:
United States	$	5,048	$	335	$	758
Switzerland	—		—		—
Bermuda	—		1		—
Other(1)	—		—		3
Total current tax expense	5,048		336		761
Deferred taxes:
United States	—		—		—
Switzerland	—		—		—
Bermuda	—		—		—
Other(1)	—		—		—
Total deferred tax expense	—		—		—
Total income tax expense	$	5,048	$	336	$	761

(1) Primarily Ireland and United Kingdom activity.

Schedule of Effective Income Tax Reconciliation

A reconciliation of income tax expense computed at the Bermuda statutory rate to income tax expense reflected in the consolidated statements of operations is as follows (dollars in thousands):


	Year Ended March 31,
	2022				2021				2020
Income tax expense at Bermuda statutory rate	$	—	—	%	$	—	—	%	$	—	—	%
Foreign rate differential(1)	(25,720)		12.80	%	(37,622)		14.77	%	(40,056)		13.90	%
Impact of changes in enacted income tax rates	—		—	%	—		—	%	(27,150)		9.42	%
Currency remeasurement effects on Swiss deferred tax assets	(3,045)		1.52	%	(13,742)		5.39	%	—		—	%
Officer’s non-deductible share-based compensation	—		—	%	9,590		(3.76)	%	—		—	%
R&D tax credits	(2,819)		1.40	%	(3,771)		1.48	%	(1,208)		0.42	%
Share-based compensation deferral adjustment	—		—	%	(4,364)		1.71	%	4,089		(1.42)	%
Valuation allowance	36,331		(18.08)	%	50,333		(19.75)	%	65,193		(22.62)	%

Other	301		(0.15)	%	(88)		0.03	%	(107)		0.04	%
Total income tax expense	$	5,048	(2.51)	%	$	336	(0.13)	%	$	761	(0.26)	%

(1) Primarily related to current tax on United States operations including permanent differences as well as operations in Switzerland and the United Kingdom at rates different than the Bermuda rate.

Schedule of Deferred Taxes

Significant components of the deferred tax assets and liabilities as of March 31, 2022 and 2021 are as follows (in thousands):


	March 31,
	2022		2021
Deferred tax assets:
Research tax credits	$	7,345	$	9,967
Net operating losses	135,916		119,701
Share-based compensation	11,418		12,649
Intangibles	79,231		58,830
Lease liability	2,009		2,317
Other	10,536		7,080
Subtotal	246,455		210,544
Valuation allowance	(244,188)		(207,858)
Deferred tax assets, net of valuation allowance	2,267		2,686
Deferred tax liabilities:
Depreciation	(526)		(651)
Right-of-use assets	(1,741)		(2,035)
Net deferred tax assets	$	—	$	—

Schedule of Unrecognized Tax Benefits Roll Forward

Activity related to unrecognized tax benefits for the years ended March 31, 2022, 2021, and 2020 is as follows (in thousands):


	Year Ended March 31,
	2022		2021		2020
Beginning of period balance	$	4,404	$	3,177	$	—
Gross increases — prior period tax positions	—		—		2,067
Gross decreases — prior period tax positions	(235)		(128)		—
Gross increases — current period tax positions	1,050		1,355		1,110
End of period balance	$	5,219	$	4,404	$	3,177

Share-Based Compensation (Tables)

12 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Summary of Stock Option Activity

Activity for stock options for the year ended March 31, 2022 is included in the following table:


	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in years)	Aggregate Intrinsic Value (in thousands)
Options outstanding at March 31, 2021	8,293,331	$	9.90	6.48	$	90,699
Granted	1,178,625	$	18.93
Exercised	(2,513,887)	$	9.80
Forfeited	(827,389)	$	17.07
Options outstanding at March 31, 2022	6,130,680	$	10.71	6.98	$	26,467
Options vested and expected to vest at March 31, 2022	6,130,680	$	10.71	6.98	$	26,467
Options exercisable at March 31, 2022	3,754,020	$	8.41	6.08	$	20,978

Additional information regarding stock options is set forth below (in thousands, except per share data).


	Year Ended March 31,
	2022		2021		2020
Intrinsic value of options exercised	$	23,305	$	12,154	$	1,036
Grant date fair value of options vested	$	37,326	$	19,923	$	2,112
Weighted-average grant date fair value per share of options granted	$	12.12	$	7.22	$	11.54

Schedule of Weighted Average Fair Value Assumptions

The Company estimated the fair value of each stock option on the date of grant using the Black-Scholes option-pricing model applying the weighted average assumptions in the following table:


	Year Ended March 31,
	2022		2021		2020
Expected common share price volatility	71.9	%	75.7	%	69.5	%
Expected risk free interest rate	1.03	%	0.47	%	2.05	%
Expected term, in years	6.2		6.21		6.17
Expected dividend yield	—	%	—	%	—	%

Summary of Restricted Share Awards and Restricted Stock Units Activity

Activity for RSUs for the year ended March 31, 2022 is included in the following table:


	Number of Shares	Weighted-Average Grant Date Fair Value
Unvested balance at March 31, 2021	3,194,562	$	12.68
Granted	3,376,403	$	18.21
Vested	(1,220,572)	$	11.92
Forfeited	(964,426)	$	15.17
Unvested balance at March 31, 2022	4,385,967	$	16.60

Share-based Payment Arrangement, Performance Shares, Activity

Activity for performance share units (“PSU”) for the year ended March 31, 2022 is included in the following table:


	Number of Shares	Weighted-Average Grant Date Fair Value
Unvested balance at March 31, 2021	376,673	$	7.99
Granted	—	$	—
Vested	(123,118)	$	7.87
Forfeited	(106,903)	$	8.08
Unvested balance at March 31, 2022	146,652	$	8.04

Schedule of Share-based Compensation

Share-based compensation was as follows (in thousands):


	Year Ended March 31,
		2022		2021		2020
Share-based compensation recognized as:
SG&A expense		$	22,918	$	39,627	$	25,727
R&D expense		16,010		14,049		14,524
Total		$	38,928	$	53,676	$	40,251

Leases (Tables)

12 Months Ended

Mar. 31, 2022

Leases [Abstract]

Operating Lease Expense


	Year Ended March 31,
	2022		2021		2020
Operating lease cost	$	2,914	$	2,914	$	2,496
Short-term lease cost	1,710		5		—
Variable lease cost (1)	1,171		538		225
Total operating lease cost	$	5,795	$	3,457	$	2,721

Certain information related to the Company’s operating lease right-of-use assets and operating lease liabilities was as follows (in thousands):


	Year Ended March 31,
	2022		2021		2020
Cash paid for operating lease liabilities	$	3,028	$	2,939	$	2,289
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities	$	—	$	—	$	12,237

Maturities of Operating Lease Liabilities

As of March 31, 2022, maturities of operating lease liabilities were as follows (in thousands):


Years Ended March 31,
2023	$	3,127
2024	3,053
2025	2,409
2026	2,482
Thereafter	416
Total lease payments	11,487
Less imputed interest (1)	(2,298)
Present value of future minimum lease payments	9,189
Less operating lease liability, current portion	(2,148)
Operating lease liability, long-term portion	$	7,041

Collaboration and License Agreements (Tables)

12 Months Ended

Mar. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Collaboration and License Agreements

The following table presents changes in the Company’s contract liabilities during the years ended March 31, 2022 and 2021 (in thousands):


	Balance at March 31, 2021		Additions		Imputed Interest		Deductions		Balance at March 31, 2022
Contract liabilities:
Deferred revenue(1)	$	497,933	$	100,000	$	—	$	(121,663)	$	476,270
Cost share advance from Pfizer(2)	$	121,862	$	—	$	2,413	$	(90,457)	$	33,818


	Balance at March 31, 2020		Additions		Imputed Interest		Deductions		Balance at March 31, 2021
Contract liabilities:
Deferred revenue(1)	$	40,000	$	513,620	$	—	$	(55,687)	$	497,933
Cost share advance from Pfizer(2)	$	—	$	146,384	$	635	$	(25,157)	$	121,862

Description of Business (Details) - Majority Shareholder - Sumitomo Dainippon Pharma Co., Ltd. - shares	Mar. 31, 2022	Dec. 27, 2019
Noncontrolling Interest [Line Items]
Number of shares issued (in shares)	50,041,181	45,008,604
Ownership percentage	52.80%	50.20%

Summary of Significant Accounting Policies - Narrative (Details)	12 Months Ended
	Mar. 31, 2022 USD ($) segment	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Number of operating segments \| segment	1
Number of reporting segments \| segment	1
Cash, cash equivalents and marketable securities	$ 434,200,000
Amortization of operating lease right-of-use assets	1,694,000	$ 1,491,000	$ 1,092,000
Restricted cash (included in other assets)	$ 10,100,000	$ 2,987,000	$ 1,374,000
Expected dividend yield	0.00%	0.00%	0.00%
Minimum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Property and equipment useful life	3 years
Maximum
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Property and equipment useful life	7 years
Pfizer
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Share of net profits (as a percent)	50.00%
Sunovion Pharmaceuticals, Inc.
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Restricted cash (included in other assets)	$ 7,100,000	$ 1,000,000
Customer Concentration Risk \| Revenues \| Product revenue, net
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Concentration risk percentage	87.00%	90.00%
Customer Concentration Risk \| Accounts Receivable \| Product revenue, net
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Concentration risk percentage	82.00%	95.00%
Sumitomo Dainippon Pharma Co., Ltd. \| Letter Agreement with Sumitomo Dainippon Pharma, Co., Ltd. \| Term Loan \| Majority Shareholder
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Available borrowing capacity	$ 41,300,000
Pfizer
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Outstanding payment from milestones achieved	3,600,000,000
Richter
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Outstanding payment from milestones achieved	$ 122,500,000

Summary of Significant Accounting Policies - Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2019
Accounting Policies [Abstract]
Cash and cash equivalents	$ 406,704	$ 674,493	$ 76,644
Restricted cash (included in other assets)	10,100	2,987	1,374
Total cash, cash equivalents and restricted cash	$ 416,804	$ 677,480	$ 78,018	$ 157,199

Summary of Significant Accounting Policies - Schedule of Antidilutive Securities (Details) - shares	12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	10,737,009	11,938,276	9,377,194
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	6,130,680	8,293,331	7,723,302
Restricted stock awards (unvested)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	0	0	634,623
Restricted stock units and performance stock units (unvested)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	4,532,619	3,571,235	945,559
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	73,710	73,710	73,710

Revenue Components - Disaggregation of Revenue (Details) - USD ($)	12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Pfizer collaboration revenue	$ 104,996,000	$ 22,354,000	$ 0
Total revenues	230,972,000	59,317,000	0
ORGOVYX
Disaggregation of Revenue [Line Items]
Revenues	82,959,000	3,630,000	0
MYFEMBREE
Disaggregation of Revenue [Line Items]
Revenues	6,355,000	0	0
Richter product supply and royalties
Disaggregation of Revenue [Line Items]
Revenues	4,995,000	0	0
Product revenue, net
Disaggregation of Revenue [Line Items]
Revenues	94,309,000	3,630,000	0
Amortization of upfront payment
Disaggregation of Revenue [Line Items]
Pfizer collaboration revenue	83,897,000	22,354,000	0
Amortization of regulatory milestone
Disaggregation of Revenue [Line Items]
Pfizer collaboration revenue	21,099,000	0	0
Richter license and milestone revenue
Disaggregation of Revenue [Line Items]
Revenues	$ 31,667,000	$ 33,333,000	$ 0

Revenue Components - Narrative (Details) - USD ($)			3 Months Ended	12 Months Ended
Revenue Components - Narrative (Details) - USD ($)	Jul. 16, 2021	Mar. 30, 2020	Mar. 31, 2022	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Pfizer collaboration revenue				$ 104,996,000	$ 22,354,000	$ 0
Richter
Disaggregation of Revenue [Line Items]
Regulatory milestone payments received	$ 15,000,000	$ 25,000,000		15,000,000
ORGOVYX
Disaggregation of Revenue [Line Items]
Revenues				82,959,000	3,630,000	0
MYFEMBREE
Disaggregation of Revenue [Line Items]
Revenues				6,355,000	0	0
Richter product supply and royalties
Disaggregation of Revenue [Line Items]
Revenues				4,995,000	0	0
Richter product supply and royalties \| Richter
Disaggregation of Revenue [Line Items]
Revenues				4,700,000
RYEQO \| Richter \| Maximum
Disaggregation of Revenue [Line Items]
Revenues				300,000
Richter license and milestone revenue
Disaggregation of Revenue [Line Items]
Revenues				31,667,000	33,333,000	$ 0
Revenue Recognized Upon Completion of Delivery \| Richter
Disaggregation of Revenue [Line Items]
Revenues			$ 16,700,000	$ 16,700,000	$ 33,300,000

Revenue Components - Schedule of Product Revenue By Geography (Details) - Product revenue, net - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Revenues	$ 94,309	$ 3,630	$ 0
United States
Disaggregation of Revenue [Line Items]
Revenues	89,314	3,630	0
Europe
Disaggregation of Revenue [Line Items]
Revenues	$ 4,995	$ 0	$ 0

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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Proceeds from related party debt financing

Revenue Components - Schedule of Discounts and Allowances (Details) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance	$ 1,394	$ 0
Provision related to sales in the current year	57,590	1,932
Credits, payments and adjustments	(429)
Credits and payments made during the current year	(38,679)	(538)
Ending balance	19,876	1,394
Reserve -government and other incentives
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance	843	0
Provision related to sales in the current year	38,910	1,351
Credits, payments and adjustments	(305)
Credits and payments made during the current year	(25,714)	(508)
Ending balance	13,734	843
Chargebacks and administrative fees
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance	363	0
Provision related to sales in the current year	13,384	363
Credits, payments and adjustments	(124)
Credits and payments made during the current year	(10,995)	0
Ending balance	2,628	363
Returns
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance	109	0
Provision related to sales in the current year	2,919	109
Credits, payments and adjustments	0
Credits and payments made during the current year	0	0
Ending balance	3,028	109
Sales Discounts
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance	79	0
Provision related to sales in the current year	2,377	109
Credits, payments and adjustments	0
Credits and payments made during the current year	(1,970)	(30)
Ending balance	$ 486	$ 79

Revenue Components - Schedule of Reserves as Balance Sheet Components (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Total revenue-related reserves	$ 19,876	$ 1,394
Accounts Receivable
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Total revenue-related reserves	486	79
Accrued Expenses and Other Current Liabilities
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]
Total revenue-related reserves	$ 19,390	$ 1,315

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ / shares in Units, $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	$ 219,841	$ 70,009
Total liabilities		$ 21,636
Stock options remeasured (in shares)	1,281,803
Share price (in USD per share)	$ 13.32	$ 20.58
Stock options
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Share-based compensation liabilities		$ 12,113
Common Shares
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Share-based compensation liabilities		$ 9,523
Shares remeasured (in shares)		462,705
Money Market Funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	$ 69	$ 36,903
Commercial Paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	219,772	21,689
Cash and cash equivalents	192,300	12,700
Marketable securities	27,500	9,000
U.S. agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets		10,000
Municipal Bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets		1,417
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	69	36,903
Total liabilities		9,523
Level 1 \| Stock options
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Share-based compensation liabilities		0
Level 1 \| Common Shares
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Share-based compensation liabilities		9,523
Level 1 \| Money Market Funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	69	36,903
Level 1 \| Commercial Paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	0	0
Level 1 \| U.S. agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets		0
Level 1 \| Municipal Bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets		0
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	219,772	33,106
Total liabilities		12,113
Level 2 \| Stock options
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Share-based compensation liabilities		12,113
Level 2 \| Common Shares
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Share-based compensation liabilities		0
Level 2 \| Money Market Funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	0	0
Level 2 \| Commercial Paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	219,772	21,689
Level 2 \| U.S. agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets		10,000
Level 2 \| Municipal Bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets		1,417
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	0	0
Total liabilities		0
Level 3 \| Stock options
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Share-based compensation liabilities		0
Level 3 \| Common Shares
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Share-based compensation liabilities		0
Level 3 \| Money Market Funds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	0	0
Level 3 \| Commercial Paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets	$ 0	0
Level 3 \| U.S. agency securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets		0
Level 3 \| Municipal Bonds
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets		$ 0

Fair Value Measurements - Summary of Changes in Fair Value of Level 3 Valuation (Details) - Share-based Compensation Liabilities - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Beginning balance	$ 21,636	$ 0
Reclassification from additional paid-in capital	0	17,473
Change in fair value	1,699	10,609
Settlements	(23,335)	(6,446)
Ending balance	$ 0	$ 21,636

Fair Value Measurements - Fair Value of Share-based Compensation Liabilities (Details) - Stock options	Mar. 31, 2021
Expected common share price volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Share-based compensation liabilities, measurement input	0.729
Expected risk free interest rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Share-based compensation liabilities, measurement input	0.0006
Expected term, in years
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Share-based compensation liabilities, measurement input	0.78
Expected dividend yield
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Share-based compensation liabilities, measurement input	0

Fair Value Measurements - Narrative (Details) - USD ($)	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2020
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cost share advance	$ 33,818,000	$ 121,862,000	$ 0
Fair Value, Nonrecurring
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Total assets	$ 0	0
Pfizer \| Level 2
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Cost share advance		$ 146,400,000

Certain Balance Sheet Components - Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
Other Liabilities Disclosure [Abstract]
Raw materials	$ 663	$ 1,390
Work in process	3,737	773
Finished goods	3,184	448
Inventories	$ 7,584	$ 2,611

Certain Balance Sheet Components - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
Other Liabilities Disclosure [Abstract]
Accrued compensation-related expenses	$ 26,389	$ 20,571
Accrued sales discounts, rebates, and allowances	19,390	1,315
Accrued R&D expenses	6,955	8,544
Accrued commercial expenses	7,196	7,770
Accrued other expenses	4,029	5,014
Accrued royalties payable to Takeda	2,470	301
Accrued professional fees	1,340	935
Deferred product revenue	825	162
Accrued expenses and other current liabilities	$ 68,594	$ 44,612

Related Party Transactions (Narrative) (Details)

1 Months Ended

12 Months Ended

Aug. 05, 2020

USD ($)

Aug. 01, 2020

Dec. 30, 2019

USD ($)

Dec. 27, 2019

USD ($)

day

director

Aug. 31, 2020

Mar. 31, 2022

USD ($)

Mar. 31, 2021

USD ($)

Mar. 31, 2020

USD ($)

$ 0

$ 245,000,000

$ 113,700,000

Majority Shareholder | Sunovion Pharmaceuticals Inc. Market Access Services Agreement | SG&A expense

^[1]

13,971,000

10,401,000

12,663,000

Sumitomo Dainippon Pharma Co., Ltd. | Majority Shareholder

$ 4,842,000

5,330,000

Number of shares owned (in shares) | shares

45,008,604

50,041,181

Ownership percentage

50.20%

52.80%

Ownership threshold for appointment of directors (as a percent)

50.00%

Number of independent directors required for audit committee | director

Ownership threshold for voting rights (as a percent)

60.00%

Ownership threshold for right of ownership percentage maintenance

50.00%

Sumitomo Dainippon Pharma Co., Ltd. | Majority Shareholder | Sumitovant Other Expenses Agreement | SG&A expense

Sumitomo Dainippon Pharma Co., Ltd. | Majority Shareholder | Sumitovant Other Expenses Agreement | R&D expense

800,000

Sumitomo Dainippon Pharma Co., Ltd. | Majority Shareholder | Sunovion Pharmaceuticals Inc. Market Access Services Agreement

$ 100,000

700,000

Agreement term

3 years

Agreement extension term

1 year

Termination notice period

9 months

Roivant | Majority Shareholder | Service Agreement

MSG | Majority Shareholder | Sunovion Pharmaceuticals Inc. Market Access Services Agreement

600,000

MSG | Majority Shareholder | Sunovion Pharmaceuticals Inc. Market Access Services Agreement | SG&A expense

3,800,000

MSG | Majority Shareholder | Sunovion Pharmaceuticals Inc. Market Access Services Agreement | R&D expense

4,800,000

3,700,000

Agreement term

2 years

Term Loan | Letter Agreement with Sumitomo Dainippon Pharma, Co., Ltd.

58,000

Proceeds from related party debt financing

$ 113,700,000

Term Loan | Letter Agreement with Sumitomo Dainippon Pharma, Co., Ltd. | Sumitomo Dainippon Pharma Co., Ltd. | Majority Shareholder

Maximum borrowing commitment

$ 400,000,000

Facility term

5 years

Notice period for prepayment | day

Default interest rate (as a percent)

5.00%

Repayment period upon change in control

30 days

Available borrowing capacity

41,300,000

Outstanding balance

358,700,000

Term Loan | New Letter Agreement with Sumitomo Dainippon Pharma, Co., Ltd. | Sumitomo Dainippon Pharma Co., Ltd. | Majority Shareholder

$ 11,551,000

$ 9,766,000

$ 1,441,000

Maximum borrowing commitment

$ 200,000,000

Facility term

5 years

LIBOR | Term Loan | Letter Agreement with Sumitomo Dainippon Pharma, Co., Ltd. | Sumitomo Dainippon Pharma Co., Ltd. | Majority Shareholder

Variable interest rate (as a percent)

3.00%

[1]	Includes $11,551, $9,766, and $1,441 of interest expense under the Sumitomo Pharma Loan Agreement for the years ended March 31, 2022, 2021, and 2020, respectively

Related Party Transactions (Annual Maturities of Amounts Outstanding) (Details) - Majority Shareholder - Sumitomo Dainippon Pharma Co., Ltd. - Letter Agreement with Sumitomo Dainippon Pharma, Co., Ltd. - Term Loan $ in Thousands	Mar. 31, 2022 USD ($)
Related Party Transaction [Line Items]
2023	$ 0
2024	0
2025	358,700
Total	$ 358,700