Alumis Inc.(ALMS) - 2024 Q2 - Quarterly Report

Financial Performance - The company reported a net loss of $56.5 million for Q2 2024, compared to a net loss of$36.3 million in Q2 2023, reflecting an increase of 55% year-over-year [147]. - For the first half of 2024, the net loss was $106.4 million, up from$72.3 million in the same period of 2023, indicating a 47% increase [147]. - Net loss for the three months ended June 30, 2024, was $56.5 million, compared to a net loss of$36.3 million for the same period in 2023, reflecting a 56% increase in losses [171]. - Total operating expenses for the three months ended June 30, 2024, were $56.1 million, up from$37.6 million in the same period of 2023, marking a 49% increase [171]. - Net cash used in operating activities was $96.5 million for the six months ended June 30, 2024, compared to$63.0 million for the same period in 2023 [200]. Research and Development - The company has initiated multiple Phase 3 clinical trials for ESK-001 in moderate-to-severe plaque psoriasis, with patient dosing commencing in July 2024 [142]. - A Phase 1 program for A-005, a CNS-penetrant TYK2 inhibitor, was initiated in April 2024, with initial results expected by the end of 2024 [142]. - Research and development expenses increased by $15.7 million, reaching$48.6 million for the three months ended June 30, 2024, compared to $32.8 million for the same period in 2023, representing a 48$90.5 million, an increase of $25.2 million from$65.3 million in the same period of 2023, a 39% increase [174]. - Personnel-related costs in research and development increased by $2.3 million for the three months ended June 30, 2024, primarily due to increased headcount and stock-based compensation [176]. Funding and Capital Structure - The company closed its IPO on July 1, 2024, raising approximately$193.2 million in net proceeds after offering costs [152]. - In addition to the IPO, a Concurrent Private Placement raised an additional $40.0 million from an existing investor [153]. - As of June 30, 2024, the company had cash, cash equivalents, and marketable securities totaling$209.5 million, with expected net proceeds of approximately $233.2 million from its IPO and Concurrent Private Placement to fund operations for at least the next 12 months [193]. - Net cash provided by financing activities for the six months ended June 30, 2024, was$257.2 million, primarily from the issuance of Series C redeemable convertible preferred stock [205]. - The company has not generated any revenue from product sales since inception and anticipates needing substantial additional funding for ongoing operations [191]. Expenses and Liabilities - General and administrative expenses rose by $2.8 million to$7.6 million for the three months ended June 30, 2024, up from $4.8 million in the same period of 2023, a 59$4.2 million to $13.2 million from$9.0 million in the same period of 2023 [183]. - The company recognized a derivative liability loss of $2.3 million and$5.4 million for the three and six months ended June 30, 2024, respectively, related to Series C financing [189]. - The company incurred a milestone payment of $23.0 million in July 2024 related to the first administration of ESK-001 in a Phase 3 clinical trial, expected to be paid in Q3 2024 [194]. - As of June 30, 2024, the company had total lease payment obligations under non-cancelable leases of$31.6 million, including $2.6 million payable through December 31, 2024 [209]. Market and Economic Conditions - Inflation has increased costs related to labor and research and development, but the company does not believe it has had a material effect on its financial condition [219]. - The company is exposed to interest rate risks related to cash equivalents and marketable securities, but does not expect a 10$700.0 million and annual revenue below $100.0 million [214].