Workflow
Zura(ZURA) - 2023 Q4 - Annual Report
ZURAZura(ZURA)2024-03-28 10:03

Financial Performance - Zura Bio Limited has incurred significant operating losses, with a net loss of 60.4millionfortheyearendedDecember31,2023,comparedtoanetlossof60.4 million for the year ended December 31, 2023, compared to a net loss of 25.7 million for the year ended December 31, 2022[465]. - The company reported a total operating expense of 62.6millionfortheyearendedDecember31,2023,anincreaseof13162.6 million for the year ended December 31, 2023, an increase of 131% compared to 27.2 million for the period from January 18, 2022, to December 31, 2022[504]. - The company incurred a net loss of 60.4millionfortheyearendedDecember31,2023,representinga13560.4 million for the year ended December 31, 2023, representing a 135% increase from a net loss of 25.7 million in 2022[504]. - Research and development expenses rose to 44.0millionin2023,up8644.0 million in 2023, up 86% from 23.7 million in 2022, primarily due to increased costs associated with acquiring licenses and manufacturing product candidates[504][505]. - General and administrative expenses increased by 437% to 18.6millionin2023,comparedto18.6 million in 2023, compared to 3.5 million in 2022, driven by higher compensation and professional fees[504][506]. - The company has not generated any revenue from product sales and has not conducted any clinical tests since its inception[464]. - The company has not generated any revenue since inception and does not expect to do so for at least the next few years[518]. Funding and Capital Structure - The company has raised a total of 10.0millionfromthesaleofconvertiblepreferredstock,10.0 million from the sale of convertible preferred stock, 7.6 million from a promissory note, 56.7millionfromaBusinessCombination,and56.7 million from a Business Combination, and 80.0 million from an April 2023 Private Placement[464]. - The April 2023 Private Placement involved the issuance of 15,041,530 Class A Ordinary Shares at 4.25pershare,raisinganaggregateof4.25 per share, raising an aggregate of 80.0 million[475]. - Cash provided by financing activities for the year ended December 31, 2023 was 121.3million,including121.3 million, including 56.7 million from the Business Combination and 59.7millionfromtheApril2023PrivatePlacement[530].−AsofDecember31,2023,thecompanyhadcashandcashequivalentsof59.7 million from the April 2023 Private Placement[530]. - As of December 31, 2023, the company had cash and cash equivalents of 99.8 million[516]. - The company anticipates needing substantial additional funding for ongoing operations and research and development activities[522]. Research and Development - The company is focused on advancing the preclinical and clinical development of its product candidates, including the ZB Assets, and seeks regulatory approval for successful candidates[465]. - The company plans to significantly increase its research and development expenses in the foreseeable future to support the development of product candidates and manufacturing processes[500]. - The company recognized 27.2millioninexpensesrelatedtotheacquisitionofanin−processresearchanddevelopmentlicensefromLillyduringtheyearendedDecember31,2023[505].−Externalcostsrelatedtoprocessdevelopmentandclinicalactivitiesarerecognizedbasedonprogressevaluationsandserviceproviderinformation[543].AgreementsandObligations−ZuraBioenteredintoalicenseagreementwithLillyforthedevelopmentofabispecificantibody(ZB−106),involvinganupfrontpaymentof27.2 million in expenses related to the acquisition of an in-process research and development license from Lilly during the year ended December 31, 2023[505]. - External costs related to process development and clinical activities are recognized based on progress evaluations and service provider information[543]. Agreements and Obligations - Zura Bio entered into a license agreement with Lilly for the development of a bispecific antibody (ZB-106), involving an upfront payment of 5.8 million and 1,000,000 Class A Ordinary Shares valued at 7.84pershare[477].−Thecompanyisobligatedtomakeupto7.84 per share[477]. - The company is obligated to make up to 155.0 million in development milestone payments and up to 440millioninsalesmilestonepaymentsbasedonnetsalesofproductsdevelopedfromZB−106[481].−ThecompanyisobligatedtomakemilestonepaymentstoLillytotalingupto440 million in sales milestone payments based on net sales of products developed from ZB-106[481]. - The company is obligated to make milestone payments to Lilly totaling up to 155.0 million and sales milestone payments up to 440.0millionbasedonnetsalesthresholdsofproductsdevelopedfromlicensedcompounds[485].−Thecompanyhasapotentialmulti−milliondollartransactionpaymentobligationiftherearechangesincontrolorifitsublicensesordivestsitsrightstoproducts[488].−Thecompanyhasnotincludedfuturemilestoneorroyaltypaymentsinitsfinancialstatementsduetouncertaintyregardingtimingandamounts[539].OperationalPlans−Thecompanyplanstoscaleupitsclinicalandregulatorycapabilities,hireadditionalpersonnel,andestablishacommercializationinfrastructuretosupportfutureproductcandidates[465].−Thecompanyexpectstoincursignificantcommercializationexpensesrelatedtosales,marketing,manufacturing,anddistributionifproductcandidatesreceiveapproval[519].ShareholderandStockInformation−ZuraBio′sClassAOrdinarySharesbegantradingonNasdaqunderthesymbols"ZURA"and"ZURAW"followingtheBusinessCombinationonMarch21,2023[472].−Thecompanyissued4,900,222sharesofSeriesSeedPreferredSharestoStonePeachPropertiesaspartofanacquisitionarrangement,withoptionsforbothpartiestobuyorsellsharesatspecifiedprices[484].−Thedeemeddividendtoredeemablenoncontrollinginterestwas440.0 million based on net sales thresholds of products developed from licensed compounds[485]. - The company has a potential multi-million dollar transaction payment obligation if there are changes in control or if it sublicenses or divests its rights to products[488]. - The company has not included future milestone or royalty payments in its financial statements due to uncertainty regarding timing and amounts[539]. Operational Plans - The company plans to scale up its clinical and regulatory capabilities, hire additional personnel, and establish a commercialization infrastructure to support future product candidates[465]. - The company expects to incur significant commercialization expenses related to sales, marketing, manufacturing, and distribution if product candidates receive approval[519]. Shareholder and Stock Information - Zura Bio's Class A Ordinary Shares began trading on Nasdaq under the symbols "ZURA" and "ZURAW" following the Business Combination on March 21, 2023[472]. - The company issued 4,900,222 shares of Series Seed Preferred Shares to Stone Peach Properties as part of an acquisition arrangement, with options for both parties to buy or sell shares at specified prices[484]. - The deemed dividend to redeemable noncontrolling interest was 10.9 million for the year ended December 31, 2023, due to modifications of terms of the Z33 Series Seed Preferred Shares[514]. - The company has not paid dividends on its ordinary shares and has no plans to do so, using an expected dividend yield of zero in its financial assessments[549]. Emerging Growth Company Status - The company remains classified as an emerging growth company, allowing it to delay the adoption of certain accounting standards until they apply to private companies[554]. - The company qualifies as a smaller reporting company, which allows it to present only two years of audited financial statements and have reduced disclosure obligations[559].