Core Viewpoint - Ventyx Biosciences, Inc. reported its second quarter financial results and highlighted advancements in its clinical pipeline, focusing on innovative oral therapies for autoimmune, inflammatory, and neurodegenerative diseases [1] Pipeline Updates and Anticipated Milestones - The Phase 2 trial of VTX2735 for recurrent pericarditis is ongoing, with expectations to release topline results in Q4 2025 [2][4] - VTX3232 has completed enrollment in a Phase 2 study for obese participants with cardiometabolic risk factors, with topline results anticipated in early Q4 2025 [2][6] - Positive Phase 2a data for VTX3232 in early-stage Parkinson's disease demonstrated safety, tolerability, and significant biomarker suppression, leading to plans for further clinical trials [3][5] Financial Results - As of June 30, 2025, Ventyx reported cash, cash equivalents, and marketable securities totaling $209.0 million, sufficient to fund operations into at least H2 2026 [5][9] - Research and Development (R&D) expenses for Q2 2025 were $22.3 million, down from $27.8 million in Q2 2024, while General and Administrative (G&A) expenses decreased to $7.1 million from $7.9 million [11][17] - The net loss for Q2 2025 was $27.0 million, compared to a net loss of $32.0 million in Q2 2024 [11][17] Inflammatory Bowel Disease (IBD) Portfolio - Ventyx is exploring development options for VTX958 in Crohn's disease, including potential partnerships [8][12] - Tamuzimod (VTX002) has shown promising Phase 2 induction data in ulcerative colitis, indicating potential for combination therapies [11][12]

Core Viewpoint - Ventyx Biosciences, Inc. (VTYX) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][4]. Earnings Estimates and Stock Ratings - The Zacks rating system is primarily driven by changes in a company's earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [2]. - The correlation between earnings estimate revisions and stock price movements is strong, making the Zacks rating system valuable for investors [3][5]. Impact of Institutional Investors - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to significant buying or selling activity that affects stock prices [5]. - An increase in earnings estimates typically results in a higher fair value for a stock, prompting institutional investors to act accordingly [5]. Ventyx Biosciences' Earnings Outlook - The recent upgrade for Ventyx Biosciences reflects an improvement in the company's underlying business, which is expected to drive the stock price higher [6]. - Over the past three months, the Zacks Consensus Estimate for Ventyx has increased by 6%, with expectations for the fiscal year ending December 2025 set at -$1.85 per share, unchanged from the previous year [9]. Zacks Rank System Performance - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - Ventyx's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [11].

Core Insights - The study successfully established the safety and tolerability of VTX3232 in patients with early-stage Parkinson's disease, with no drug-related treatment-emergent adverse events reported [1][2] - VTX3232 demonstrated significant reductions in NLRP3-related biomarkers in both cerebrospinal fluid (CSF) and plasma, indicating sustained target engagement [1][3] - The company plans to initiate a placebo-controlled Phase 2 trial for VTX3232 in Parkinson's disease and potentially in other neurodegenerative disorders like Alzheimer's disease [3][6] Study Details - The Phase 2a study evaluated a 40mg oral daily dose of VTX3232 in ten patients over a 28-day treatment period, focusing on safety and tolerability [3][4] - Key secondary objectives included pharmacokinetic profiling and measuring effects on biomarkers of NLRP3 inhibition, with significant reductions observed in IL-1, IL-6, and hsCRP [3][4] - The study showed that VTX3232 maintained plasma and CSF levels above the IC90 for IL-1b for 24 hours [3][9] Biomarker Findings - VTX3232 treatment resulted in reductions of biomarkers such as IL-1β, IL-18, IL-6, and hsCRP, with some approaching the limit of quantitation [9] - Statistically significant improvements were noted in motor and non-motor symptoms of Parkinson's disease, as measured by MDS-UPDRS [9] - No acute changes were observed in exploratory PET imaging, consistent with the short duration of the study [9] Future Development - Ventyx intends to present the complete dataset at a future medical meeting and publish full results in a peer-reviewed journal [5] - The company is also conducting a 12-week Phase 2 trial of VTX3232 in participants with obesity and cardiometabolic risk factors, with topline results expected in H2 2025 [1][8] - Planning for a double-blind, placebo-controlled, dose-ranging Phase 2 trial in Parkinson's disease is underway [6]

Summary of Ventyx Biosciences (VTYX) Conference Call Company Overview - **Company**: Ventyx Biosciences (VTYX) - **Date**: June 5, 2025 - **Key Speakers**: Raju Mohan (CEO), Matt Moore (COO) Key Programs and Trials - Ventyx is focused on its pipeline, particularly in the field of inflammasomes, specifically NLRP3 [7][8] - Three Phase II readouts are anticipated: 1. **Parkinson's Disease Trial**: In early Parkinson's patients using CNS molecule VTX-3232, with results expected in June 2025 [8][9][10] 2. **Recurrent Pericarditis Trial**: An open-label trial modeled after Arcalist, with results expected in the second half of 2025 [13][15] 3. **Obesity and Cardiometabolic Risk Trial**: A placebo-blinded trial using VTX-3232, with results expected in the fall of 2025 [14][15] Financial Position - Ventyx is in a strong cash position with approximately $200 million available, allowing for continued execution of trials without immediate pressure to seek partnerships or sales [19][81][84] Strategic Partnerships - Sanofi has a right of first negotiation (ROFIN) for VTX-3232, which will be triggered after the cardiometabolic readout [21][25] - The interest from Sanofi is heightened due to their commitment to neurodegenerative diseases and previous successes in the field [26][27] Market Interest and Valuation - The stock is currently trading at a low valuation, around cash levels, attracting interest from various investors [20][21] - The upcoming data releases are expected to significantly impact investor sentiment and stock valuation [20][22] Data Expectations and Success Criteria - For the Parkinson's trial, success is defined by: - Safety of the treatment - Evidence of drug exposure in cerebrospinal fluid (CSF) - Biomarker modulation in CSF, particularly suppression of IL-1 beta and downstream effects [42][43][62][72] - The obesity trial is designed to detect weight loss and other metabolic markers, with a focus on safety and activity [113][125] Competitive Landscape - Roche is also conducting trials related to NLRP3 in Parkinson's, but has not released data, creating uncertainty in the competitive landscape [91][97] - Other companies are exploring similar pathways, indicating a growing interest in inflammasome inhibitors [98][108] Conclusion - Ventyx is positioned for significant developments in the coming months with multiple trials and potential strategic partnerships on the horizon. The focus remains on executing trials effectively while maintaining a strong financial position to support long-term growth and value creation for shareholders [84][90][135]

Company Overview - Ventyx Biosciences, Inc. is a clinical-stage biopharmaceutical company focused on developing innovative oral therapies for patients with autoimmune, inflammatory, and neurodegenerative diseases [3] - The company leverages expertise in medicinal chemistry, structural biology, and immunology to discover differentiated oral small molecule therapeutics for conditions with high unmet medical need [3] Product Pipeline - Ventyx's portfolio includes NLRP3 inhibitors such as VTX2735, which is in Phase 2 development for recurrent pericarditis, and VTX3232, a CNS-penetrant NLRP3 inhibitor in Phase 2 development for neurodegenerative and cardiometabolic diseases [4] - The inflammatory bowel disease portfolio features two Phase 2 compounds: tamuzimod (VTX002), an S1P1R modulator, and VTX958, a TYK2 inhibitor [4] Upcoming Events - Company executives will participate in a fireside chat at the Jefferies Global Healthcare Conference on June 5, 2025, from 12:50 to 1:20 PM ET [2] - A webcast of the event will be available on the Ventyx website, with a replay accessible for ninety days post-event [2]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents Ventyx Biosciences, Inc.'s unaudited condensed consolidated financial statements for Q1 2025, including key financial statements and notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased from **$276.6 million** to **$253.5 million** in Q1 2025, driven by a reduction in marketable securities Condensed Consolidated Balance Sheet Highlights (in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $28,076 | $27,260 | | Marketable securities | $200,731 | $225,683 | | Total current assets | $242,558 | $229,625 | | **Total assets** | **$253,480** | **$276,563** | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $12,394 | $12,776 | | **Total liabilities** | **$21,847** | **$22,518** | | **Total stockholders' equity** | **$231,633** | **$254,045** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Net loss decreased to **$27.4 million** in Q1 2025 from **$38.6 million** in Q1 2024, primarily due to lower R&D expenses Condensed Consolidated Statements of Operations (in thousands, except per share data) | | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Research and development | $22,898 | $33,747 | | General and administrative | $7,199 | $8,021 | | **Total operating expenses** | **$30,097** | **$41,768** | | Loss from operations | ($30,097) | ($41,768) | | Interest income | ($2,666) | ($3,227) | | **Net loss** | **($27,440)** | **($38,572)** | | Net loss per share, basic and diluted | ($0.39) | ($0.62) | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity decreased to **$231.6 million** in Q1 2025, primarily due to the net loss, partially offset by stock-based compensation - The primary drivers for the change in stockholders' equity during Q1 2025 were the **net loss of $27.4 million** and **stock-based compensation of $5.0 million**[23](index=23&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities significantly decreased to **$25.7 million** in Q1 2025, with no financing activities this quarter Summary of Cash Flows (in thousands) | | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($25,718) | ($47,625) | | Net cash provided by investing activities | $26,415 | $41,765 | | Net cash provided by financing activities | $— | $96,184 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed disclosures on Ventyx's business, accounting policies, financial assets, legal proceedings, equity, and R&D expenses by program - Ventyx is a clinical-stage biopharmaceutical company focused on developing oral therapies for autoimmune, inflammatory, and neurodegenerative diseases[29](index=29&type=chunk) - A securities class action and a shareholder derivative action filed against the company were both voluntarily dismissed without prejudice in February 2025[51](index=51&type=chunk)[52](index=52&type=chunk) - In September 2024, the company issued **70,601 shares of Series A non-voting convertible preferred stock** to a subsidiary of Sanofi for gross proceeds of approximately **$27.0 million**, granting Sanofi a right of first negotiation (ROFN) for VTX3232[55](index=55&type=chunk)[56](index=56&type=chunk) - In March 2024, the company raised approximately **$100.0 million** in gross proceeds through a private placement of **11,174,000 shares of common stock**[54](index=54&type=chunk) R&D Expenses by Program (in thousands) | Program | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | VTX2735 | $1,914 | $990 | | VTX3232 | $5,471 | $1,846 | | Tamuzimod | $3,821 | $10,793 | | VTX958 | $1,992 | $10,215 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, clinical pipeline, and capital resources, noting decreased R&D expenses and sufficient liquidity for the next 12 months - The company is advancing its NLRP3 inhibitor portfolio, with **VTX2735** in a Phase 2 trial for recurrent pericarditis and **VTX3232** in Phase 2 trials for Parkinson's disease and obesity[88](index=88&type=chunk) - Following Phase 2 results, the company intends to find a partner for the future development of tamuzimod and does not plan to commit significant internal resources to the further development of VTX958[88](index=88&type=chunk) Change in R&D Expenses by Program (Q1 2025 vs Q1 2024, in thousands) | Program | Change | | :--- | :--- | | VTX2735 | $924 increase | | VTX3232 | $3,625 increase | | Tamuzimod | ($6,972) decrease | | VTX958 | ($8,223) decrease | | **Total R&D Expenses** | **($10,849) decrease** | - The decrease in G&A expenses by **$0.8 million** in Q1 2025 compared to Q1 2024 was primarily due to lower compensation-related expenses and professional service fees[112](index=112&type=chunk) - As of March 31, 2025, the company had **$228.8 million** in cash, cash equivalents, and marketable securities and believes these funds are sufficient for at least the next twelve months[114](index=114&type=chunk)[117](index=117&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Ventyx Biosciences is a smaller reporting company and, as such, is not required to provide the information requested under this item - As a smaller reporting company, Ventyx is not required to provide quantitative and qualitative disclosures about market risk[137](index=137&type=chunk) [Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and Interim Principal Financial Officer, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025 - The company's management concluded that disclosure controls and procedures were effective as of the end of the reporting period[138](index=138&type=chunk) - No material changes in internal control over financial reporting were identified during the quarter ended March 31, 2025[139](index=139&type=chunk) [PART II. OTHER INFORMATION](index=31&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) Details two legal actions against the company, a securities class action and a shareholder derivative action, both voluntarily dismissed without prejudice - A putative securities class action complaint filed on March 1, 2024, was voluntarily dismissed without prejudice on February 10, 2025[51](index=51&type=chunk) - A shareholder derivative action filed on December 6, 2024, was voluntarily dismissed without prejudice on February 24, 2025[52](index=52&type=chunk) [Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) Details significant risks including operating losses, financing needs, product candidate dependence, clinical development uncertainties, supply chain risks, and intense competition - The company has a history of significant operating losses, with an accumulated deficit of **$581.7 million** as of March 31, 2025, and expects to continue incurring losses[145](index=145&type=chunk) - The business is entirely dependent on the success of its product candidates, which face a high risk of failure in development, as exemplified by the termination of VTX958 development for psoriasis[155](index=155&type=chunk)[156](index=156&type=chunk) - The company relies on suppliers in China for manufacturing and research, making it subject to risks from U.S.-China trade relations, political instability, and potential legislation like the BIOSECURE Act[230](index=230&type=chunk)[231](index=231&type=chunk)[234](index=234&type=chunk) - The company faces intense competition from well-established pharmaceutical companies with substantially greater financial, scientific, and commercial resources[185](index=185&type=chunk) - The company's stock price has been and may continue to be volatile, and the company has previously been subject to securities class action litigation following periods of volatility[144](index=144&type=chunk)[430](index=430&type=chunk)[476](index=476&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=110&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no sales of unregistered equity securities during the quarter ended March 31, 2025, that had not been previously disclosed in a Current Report on Form 8-K - No unregistered sales of equity securities were made during the quarter that were not previously reported[477](index=477&type=chunk) [Defaults Upon Senior Securities](index=110&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) None - None[478](index=478&type=chunk) [Mine Safety Disclosures](index=110&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable - Not Applicable[479](index=479&type=chunk) [Other Information](index=110&type=section&id=Item%205.%20Other%20Information) During the last fiscal quarter, no directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No officers or directors adopted or terminated a Rule 10b5-1 trading plan during the last fiscal quarter[480](index=480&type=chunk) [Exhibits](index=111&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including corporate governance documents and officer certifications - The report includes key corporate governance documents and required officer certifications as exhibits[481](index=481&type=chunk)

[Corporate Progress and Outlook](index=1&type=section&id=Corporate%20Progress%20and%20Outlook) Ventyx Biosciences advances its clinical pipeline, leading in NLRP3 inhibitors with two Phase 2 compounds, anticipating multiple 2025 data readouts, and maintaining a $228.8 million cash balance to fund operations into H2 2026 - Ventyx leads in NLRP3 inhibitor discovery and development, with **VTX3232** and **VTX2735** advancing through Phase 2 trials for neurodegenerative, cardiovascular, and metabolic diseases[2](index=2&type=chunk) - The company expanded its Scientific Advisory Board with experts in NLRP3, recurrent pericarditis, and neurodegenerative and cardiovascular diseases to prepare for the next development phase[3](index=3&type=chunk) - Cash, cash equivalents, and marketable securities totaling **$228.8 million** as of March 31, 2025, are projected to fund planned operations into at least the second half of 2026[1](index=1&type=chunk)[10](index=10&type=chunk) - Multiple key data readouts are anticipated in 2025, including **VTX3232** in early Parkinson's disease (Q2), **VTX2735** in recurrent pericarditis (H2), and **VTX3232** in obesity and cardiometabolic risk factors (H2)[4](index=4&type=chunk) [Pipeline Updates and Anticipated Milestones](index=1&type=section&id=Pipeline%20Updates%20and%20Anticipated%20Milestones) Ventyx provides updates on its NLRP3 inhibitor portfolio, advancing three Phase 2 trials with data expected throughout 2025, and explores partnership opportunities for its IBD portfolio following promising Phase 2 results [NLRP3 Inhibitor Portfolio](index=1&type=section&id=NLRP3%20Inhibitor%20Portfolio) The NLRP3 portfolio includes peripheral inhibitor VTX2735 and CNS-penetrant VTX3232, with Phase 2 trial completions for Parkinson's disease in Q2 2025 and recurrent pericarditis and cardiometabolic diseases in H2 2025 - **VTX3232** Phase 2 open-label biomarker trial for Parkinson's disease is on track for Q2 2025 completion, evaluating safety, pharmacokinetics in plasma and CSF, and various biomarkers[3](index=3&type=chunk) - **VTX2735** Phase 2 open-label trial for recurrent pericarditis anticipates topline results in H2 2025, assessing safety, change in pain score (NRS), and change in hsCRP[5](index=5&type=chunk) - **VTX3232** Phase 2 placebo-controlled trial for cardiometabolic diseases expects topline results in H2 2025, evaluating monotherapy and combination with semaglutide, with safety and change in hsCRP as key endpoints[5](index=5&type=chunk) [Inflammatory Bowel Disease (IBD) Portfolio](index=2&type=section&id=Inflammatory%20Bowel%20Disease%20(IBD)%20Portfolio) The IBD portfolio, featuring tamuzimod for ulcerative colitis and VTX958 for Crohn's disease, has shown promising Phase 2 data, leading the company to explore partnership opportunities for both candidates - Following positive Phase 2 data, the company is exploring partnership opportunities for **Tamuzimod** (S1P1R Modulator) in ulcerative colitis, potentially as a backbone for future combination therapies[10](index=10&type=chunk) - **VTX958** (TYK2 Inhibitor) Phase 2 data indicated disease-modifying benefits in Crohn's disease with a robust, dose-dependent endoscopic response, prompting Ventyx to explore partnership opportunities for its continued development[7](index=7&type=chunk)[10](index=10&type=chunk) [First Quarter 2025 Financial Results](index=2&type=section&id=First%20Quarter%20Financial%20Results) Ventyx reported a reduced net loss of **$27.4 million** in Q1 2025, down from **$38.6 million** in Q1 2024, driven by lower operating expenses, particularly in R&D, while maintaining a strong **$228.8 million** cash position Financial Metrics | Financial Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | R&D Expenses | $22.9 million | $33.7 million | | G&A Expenses | $7.2 million | $8.0 million | | Net Loss | $27.4 million | $38.6 million | | Cash Position | $228.8 million | N/A | - The company believes its current cash, cash equivalents, and marketable securities of **$228.8 million** are sufficient to fund planned operations into at least the second half of 2026[10](index=10&type=chunk) [Financial Tables](index=4&type=section&id=Financial%20Tables) This section presents the unaudited condensed consolidated financial statements as of March 31, 2025, including the Statement of Operations and the Balance Sheet [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For the three months ended March 31, 2025, Ventyx reported a net loss of **$27.44 million** ($0.39 per share), a reduction from **$38.57 million** ($0.62 per share) in 2024, driven by decreased total operating expenses Condensed Consolidated Statements of Operations and Comprehensive Loss | (in thousands, except per share data) | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Research and development | $22,898 | $33,747 | | General and administrative | $7,199 | $8,021 | | **Total operating expenses** | **$30,097** | **$41,768** | | Loss from operations | ($30,097) | ($41,768) | | Interest income | ($2,666) | ($3,227) | | **Net loss** | **($27,440)** | **($38,572)** | | Net loss per share, basic and diluted | ($0.39) | ($0.62) | [Selected Condensed Consolidated Balance Sheet Data](index=4&type=section&id=Selected%20Condensed%20Consolidated%20Balance%20Sheet%20Data) As of March 31, 2025, Ventyx reported **$228.8 million** in cash, cash equivalents, and marketable securities, a decrease from **$252.9 million** at year-end 2024, with total assets at **$253.5 million** and stockholders' equity at **$231.6 million** Selected Condensed Consolidated Balance Sheet Data | (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash, cash equivalents and marketable securities | $228,807 | $252,943 | | Total assets | $253,480 | $276,563 | | Total liabilities | $21,847 | $22,518 | | Total stockholders' equity | $231,633 | $254,045 |

Core Insights - Ventyx Biosciences is a clinical-stage biopharmaceutical company focused on developing innovative oral therapies for autoimmune, inflammatory, and neurodegenerative diseases [8] Pipeline Updates and Anticipated Milestones - Ventyx is advancing two novel NLRP3 inhibitors, VTX3232 and VTX2735, through Phase 2 trials targeting neurodegenerative, cardiovascular, and metabolic diseases [2] - The Phase 2 biomarker trial for VTX3232 in Parkinson's disease is expected to complete in Q2 2025, with key endpoints including safety and pharmacokinetics [3] - Results from the Phase 2 trial of VTX3232 in obesity and cardiometabolic risk factors, as well as VTX2735 in recurrent pericarditis, are anticipated in the second half of 2025 [3][4] Financial Overview - As of March 31, 2025, Ventyx reported cash, cash equivalents, and marketable securities of $228.8 million, sufficient to fund operations into at least H2 2026 [11][17] - Research and Development (R&D) expenses for Q1 2025 were $22.9 million, down from $33.7 million in Q1 2024 [11] - General and Administrative (G&A) expenses decreased to $7.2 million in Q1 2025 from $8.0 million in Q1 2024 [11] - The net loss for Q1 2025 was $27.4 million, compared to a net loss of $38.6 million in Q1 2024 [11][15] Inflammatory Bowel Disease (IBD) Portfolio - Ventyx's IBD portfolio includes two Phase 2 compounds: tamuzimod (VTX002), an S1P1R modulator, and VTX958, a TYK2 inhibitor [9] - Tamuzimod has shown robust clinical and endoscopic remission rates compared to placebo, positioning it as a potential backbone for future combination therapies in ulcerative colitis [11] - VTX958 demonstrated a dose-dependent endoscopic response in Crohn's disease, suggesting potential disease-modifying benefits [11]

Core Insights - Ventyx Biosciences has appointed seven internationally recognized experts to its Scientific Advisory Board (SAB), enhancing its leadership in the NLRP3 inflammasome research and development [1][2][3] Group 1: Appointment of SAB Members - The new SAB members have significant expertise in NLRP3 inflammasome research and its implications in neurodegenerative and cardiometabolic diseases [2][3] - The expanded SAB will provide guidance in the clinical development of Ventyx's oral NLRP3 inhibitors, particularly in Phase 2 studies for Parkinson's disease and other conditions [3][4] Group 2: Company Development and Research Focus - Ventyx is focused on developing innovative oral therapies for autoimmune, inflammatory, and neurodegenerative diseases, leveraging its expertise in medicinal chemistry and immunology [11][12] - The company is advancing two lead NLRP3 inhibitors, VTX2735 and VTX3232, through Phase 2 trials, with topline data for VTX3232 in Parkinson's disease expected in Q2 2025 [4][12]

Financial Performance - The company reported net losses of $135.1 million and $193.0 million for the years ended December 31, 2024 and 2023, respectively, with an accumulated deficit of $554.3 million as of December 31, 2024[566]. - The net loss for 2024 was $135.1 million, compared to a net loss of $193.0 million in 2023, reflecting an improvement of $57.8 million or 29.8%[582]. - Total operating expenses decreased from $208.0 million in 2023 to $148.5 million in 2024, a decline of approximately 28.6%[582]. - Net cash used in operating activities was $130.9 million in 2024, down from $166.5 million in 2023, indicating a reduction of approximately 21.4%[599][600]. - Net cash provided by financing activities increased significantly to $122.1 million in 2024 from $53.3 million in 2023, representing a growth of approximately 129.0%[603][604]. Research and Development - Research and development expenses totaled $117.0 million for the year ended December 31, 2024, a decrease from $175.8 million in 2023, with significant costs incurred for VTX958 and tamuzimod[577]. - The decrease in research and development expenses was primarily due to the conclusion of Phase 2 trials for VTX958, resulting in a cost reduction of approximately $56.0 million[584]. - The company does not anticipate any of its product candidates to be commercially available for several years, if at all[579]. - A Phase 1 trial of VTX3232 reported positive topline results in Q1 2024, with a Phase 2a trial initiated in August 2024 for early Parkinson's disease, expecting topline results in H1 2025[565]. - The company initiated a Phase 2 trial of VTX2735 in recurrent pericarditis in January 2025, with topline results anticipated in H2 2025[565]. Funding and Capital Structure - The company has not generated any revenue since inception and does not expect to do so for the foreseeable future, relying on equity and debt financings for operations[567]. - The company issued 70,601 shares of Series A non-voting convertible preferred stock for gross proceeds of approximately $27.0 million in September 2024[568]. - In March 2024, the company raised approximately $100.0 million through a private placement of common stock[570]. - The company raised approximately $95.0 million in net proceeds from a private placement of common stock in March 2024[587]. - The company anticipates needing substantial additional funding for ongoing operations and product development, with no committed external sources of funds currently available[589][596]. Expenses and Cost Management - General and administrative expenses are expected to increase as the company expands operations and complies with public company requirements[581]. - General and administrative expenses slightly decreased from $32.2 million in 2023 to $31.4 million in 2024, a reduction of approximately 2.5%[585]. Asset Management and Impairment - An impairment charge of $0.3 million was recorded for the Encinitas Asset Group, with a carrying amount of $1.4 million and a fair value of $1.1 million[610]. - The estimated future discounted cash flows of the San Diego Asset Group exceeded its carrying value, resulting in no impairment charge for the year ended December 31, 2024[609]. - The company performed undiscounted cash flow analyses for both the San Diego and Encinitas Asset Groups to assess impairment triggers[609][610]. - The fair value of the Encinitas Asset Group was determined based on estimates of future discounted cash flows, classified as Level 3 in the fair value hierarchy[610]. - The company may face additional impairment charges if future changes in assumptions and estimates occur due to market conditions[611]. Corporate Structure and Compliance - The company ceased to be an "emerging growth company" and "smaller reporting company" as of December 31, 2023, due to the market value of its stock exceeding $700 million[616][617]. - The company entered into a sublease for office space in San Diego, California, which became its headquarters in August 2023[608]. Stock-Based Compensation - Stock-based compensation expense is recognized based on the fair value of equity awards estimated using the Black-Scholes option pricing model[615].