Zura(ZURA) - 2024 Q1 - Quarterly Report

Financial Performance - As of March 31, 2024, Zura Bio Limited reported a net loss of $7.7 million and an accumulated deficit of$ 111.2 million[116]. - The net loss attributable to ordinary shareholders was $730,000 for the three months ended March 31, 2024, a significant decrease of 93% from the net loss of$ 9.8 million in the same period of 2023[150]. - The company expects to continue incurring significant operating losses and may never become profitable, with no revenue generated since inception[160]. - Cash used in operating activities for Q1 2024 was $4.98 million, compared to$ 3.26 million in Q1 2023, reflecting an increase in operational costs[169][171]. Funding and Capital Structure - The company raised a total of $112.5 million in gross proceeds from a Private Placement in April 2024, selling Class A Ordinary Shares and Pre-Funded Warrants[122]. - The company completed a Business Combination on March 20, 2023, generating approximately$ 56.7 million in net proceeds[119]. - The company reported a net cash increase of $42.4 million from financing activities in Q1 2023, primarily from the Business Combination[174]. - The company expects net proceeds from the Business Combination and private placements to fund operating expenses and capital requirements for at least the next twelve months[166]. Research and Development - Zura Bio Limited has not generated any revenue from product sales and has not conducted any clinical tests since its inception[115]. - Zura Bio Limited's lead product candidates are in the clinical testing stage, with plans to advance preclinical and clinical development significantly[116]. - The company is obligated to make development milestone payments to Lilly up to an aggregate of$ 155.0 million and sales milestone payments up to $440 million based on net sales thresholds[130]. - Future expenses are anticipated to increase due to ongoing research and development activities and administrative costs associated with being a public company[162]. Expenses and Cost Management - General and administrative expenses increased by$ 2.0 million to $4.8 million for the three months ended March 31, 2024, representing a 69% increase year-over-year[152]. - Research and development expenses decreased by$ 1.3 million to $3.6 million for the three months ended March 31, 2024, a 26% decline compared to the same period in 2023[151]. - Total operating expenses rose by$ 660,000 to $8.4 million for the three months ended March 31, 2024, a 9% increase compared to the previous year[150]. - The company anticipates significant increases in expenses related to scaling up clinical and regulatory capabilities and establishing commercialization infrastructure[116]. Corporate Governance and Compliance - A CEO transition occurred on April 8, 2024, with Robert Lisicki taking over from Someit Sidhu[139]. - The company remains an emerging growth company and may elect to extend the transition period for complying with new accounting standards[188]. - The company qualifies as a "smaller reporting company" under the Securities Act and Exchange Act, with a market value of Class A Ordinary Shares held by non-affiliates below$ 250 million or annual revenue under $100 million[190]. - The company is exempt from compliance with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act[190]. Licensing and Agreements - The company entered into a license agreement with Lilly for the development of a bispecific antibody, making an initial payment of$ 5.0 million[124]. - The company has entered into a Cell Line License Agreement with WuXi Biologics, involving a non-refundable license fee of $150,000 and potential royalty payments based on global net sales[181]. - The company is obligated to make multimillion dollar milestone payments to Pfizer and Lilly upon achieving certain development, regulatory, and sales milestones[163]. - Ongoing royalties to Pfizer and Lilly are expected to be in the mid-single digits to low double-digits percentage range based on net sales thresholds[165].