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Adicet Bio(ACET) - 2024 Q2 - Quarterly Report
ACETAdicet Bio(ACET)2024-08-13 11:04

Financial Performance - The company reported a net loss of 29.9millionforthethreemonthsendedJune30,2024,comparedtoanetlossof29.9 million for the three months ended June 30, 2024, compared to a net loss of 32.4 million for the same period in 2023, representing an 8% decrease in loss [118]. - Total operating expenses decreased by 6% to 32.8millioninQ22024from32.8 million in Q2 2024 from 34.9 million in Q2 2023 [118]. - The net loss for the three months ended June 30, 2024, was 29.9million,withanaccumulateddeficitof29.9 million, with an accumulated deficit of 438.7 million as of the same date [137]. - Total operating expenses for the six months ended June 30, 2024, were 63.7million,adecreaseof63.7 million, a decrease of 4.5 million, or 7%, compared to 68.2millionforthesameperiodin2023[125].−Thecompanyexpectstocontinueincurringsignificantlossesasitdevelopsandseeksregulatoryapprovalsforitsproductcandidates[138].−Netcashusedinoperatingactivitieswas68.2 million for the same period in 2023 [125]. - The company expects to continue incurring significant losses as it develops and seeks regulatory approvals for its product candidates [138]. - Net cash used in operating activities was 46.3 million for the six months ended June 30, 2024, compared to 49.0millionforthesameperiodin2023,reflectingadecreaseof5.549.0 million for the same period in 2023, reflecting a decrease of 5.5% [147][148]. - The company experienced a net decrease in cash and cash equivalents of 64.4 million for the six months ended June 30, 2024, compared to a decrease of 52.2millionin2023[145].ResearchandDevelopment−Researchanddevelopmentexpensesdecreasedby952.2 million in 2023 [145]. Research and Development - Research and development expenses decreased by 9% to 25.9 million in Q2 2024 from 28.4millioninQ22023[118].−ThecompanyplanstofileonenewInvestigationalNewDrug(IND)applicationevery12−18months,continuingtodevelopproductcandidatesinautoimmunediseasesandcancer[101].−ADI−001hasasubstantialmarketopportunitywithover1.7millionpatientsintheU.S.,EU5,China,andJapansufferingfromBcellmediatedautoimmunediseases[102].−ThecompanyreceivedFDAclearanceforitsINDapplicationsforADI−001inlupusnephritisandexpandedclinicaldevelopmenttoincludesystemiclupuserythematosus,systemicsclerosis,andanti−neutrophilcytoplasmicautoantibodyassociatedvasculitis[102].−ADI−270receivedFDAFastTrackDesignationforthepotentialtreatmentofmetastatic/advancedclearcellrenalcellcarcinoma,withaPhase1trialplannedtostartinQ42024[106].−ResearchanddevelopmentexpensesforthesixmonthsendedJune30,2024,decreasedby28.4 million in Q2 2023 [118]. - The company plans to file one new Investigational New Drug (IND) application every 12-18 months, continuing to develop product candidates in autoimmune diseases and cancer [101]. - ADI-001 has a substantial market opportunity with over 1.7 million patients in the U.S., EU5, China, and Japan suffering from B cell mediated autoimmune diseases [102]. - The company received FDA clearance for its IND applications for ADI-001 in lupus nephritis and expanded clinical development to include systemic lupus erythematosus, systemic sclerosis, and anti-neutrophil cytoplasmic autoantibody associated vasculitis [102]. - ADI-270 received FDA Fast Track Designation for the potential treatment of metastatic/advanced clear cell renal cell carcinoma, with a Phase 1 trial planned to start in Q4 2024 [106]. - Research and development expenses for the six months ended June 30, 2024, decreased by 5.3 million, or 10%, to 49.8millioncomparedto49.8 million compared to 55.1 million for the same period in 2023 [127]. Cash and Financing Activities - Cash and cash equivalents as of June 30, 2024, were 224.1million,expectedtobesufficientforatleastthenexttwelvemonths[133].−Thecompanyraisedapproximately224.1 million, expected to be sufficient for at least the next twelve months [133]. - The company raised approximately 91.7 million from a public offering of 32,379,667 shares at a price of 2.40pershare[131].−Netcashprovidedbyfinancingactivitieswas2.40 per share [131]. - Net cash provided by financing activities was 111.2 million for the six months ended June 30, 2024, a substantial increase from 0.2millionin2023[150].−Cashusedinoperatingactivitiesincludednon−cashadjustmentsof0.2 million in 2023 [150]. - Cash used in operating activities included non-cash adjustments of 16.5 million in 2024, up from 13.9millionin2023,indicatinganincreaseof18.613.9 million in 2023, indicating an increase of 18.6% [147][148]. - Net cash used in investing activities was 0.5 million for the six months ended June 30, 2024, a significant decrease from 3.4millionin2023,representingan85.33.4 million in 2023, representing an 85.3% reduction [149]. Interest Income and Expenses - Interest income increased by 15% to 3.0 million in Q2 2024 compared to 2.6millioninQ22023[118].−InterestincomeforthesixmonthsendedJune30,2024,increasedby2.6 million in Q2 2023 [118]. - Interest income for the six months ended June 30, 2024, increased by 0.6 million, or 12%, to 5.9millioncomparedtothesameperiodin2023[129].−Interestincomeincreasedby5.9 million compared to the same period in 2023 [129]. - Interest income increased by 0.4 million, or 15%, to 3.1millionforthethreemonthsendedJune30,2024,duetohigherinterestratesandinvestmentsintreasurysecurities[122].GeneralandAdministrativeExpenses−Generalandadministrativeexpensesincreasedby3.1 million for the three months ended June 30, 2024, due to higher interest rates and investments in treasury securities [122]. General and Administrative Expenses - General and administrative expenses increased by 0.4 million, or 6%, to 7.1millionforthethreemonthsendedJune30,2024,primarilyduetoanincreaseinstock−basedcompensation[121].OtherFinancialMetrics−Thecompany’soperatingleaseliabilitydecreasedby7.1 million for the three months ended June 30, 2024, primarily due to an increase in stock-based compensation [121]. Other Financial Metrics - The company’s operating lease liability decreased by 1.8 million in 2024, compared to an increase of $1.6 million in 2023, indicating a shift in lease management [147][148]. - The company is classified as a "smaller reporting company," allowing it to take advantage of reduced disclosure requirements [156]. - The company does not believe that inflation had a material effect on its business, financial condition, or results of operations during the six months ended June 30, 2024 [161].