Zura(US:ZURA)2023-11-13 11:11Financial Performance - Zura Bio Limited reported a net loss of $8.3 million for the three months and $51.9 million for the nine months ended September 30, 2023, with an accumulated deficit of $95.0 million[143]. - The net loss attributable to ordinary shareholders of Zura for the nine months ended September 30, 2023, was $62,965 thousand compared to $9,846 thousand in 2022[180]. - Net loss attributable to redeemable noncontrolling interest was $0.2 million for the nine months ended September 30, 2023[189]. - Cash used in operating activities for the nine months ended September 30, 2023, was $11.0 million, with a net loss before redeemable noncontrolling interest of $52.1 million[205]. - The company has not generated any revenue since inception and does not expect to do so for at least the next few years[196]. Funding and Capital Raising - The company raised a total of $80.0 million in gross proceeds from the April 2023 Private Placement, selling 15,041,530 Class A Ordinary Shares at $4.25 each[152]. - Zura Bio Limited completed a Business Combination on March 20, 2023, generating approximately $56.7 million in proceeds[151]. - The company has raised an aggregate of $10.0 million from the sale of convertible preferred stock and $7.6 million from a promissory note prior to March 31, 2023[142]. - Cash provided by financing activities for the nine months ended September 30, 2023, was $121.3 million, primarily from the Business Combination and the April 2023 Private Placement[209]. Operating Expenses - The company has incurred significant operating losses since inception and anticipates expenses will increase significantly due to ongoing clinical development and regulatory activities[143]. - Research and development expenses increased by $3.6 million to $3,965 thousand for the three months ended September 30, 2023, compared to $415 thousand for the same period in 2022[169]. - General and administrative expenses rose by $5.6 million to $6,222 thousand for the three months ended September 30, 2023, compared to $653 thousand in 2022[169]. - Total operating expenses for the three months ended September 30, 2023, were $10,187 thousand, an increase of $9,119 thousand from $1,068 thousand in 2022[169]. - Research and development expenses for the nine months ended September 30, 2023, increased by $29.1 million to $37,079 thousand compared to $8,000 thousand for the same period in 2022[180]. - General and administrative expenses for the nine months ended September 30, 2023, increased by $12.9 million to $14,732 thousand compared to $1,814 thousand in 2022[180]. Future Obligations and Expectations - The company expects significant future contingent payments to Pfizer and Lilly under various agreements, potentially involving multimillion dollar milestone payments and ongoing royalties in the mid-single digits to low double-digits percentage range[198]. - The company anticipates substantial additional funding will be needed for ongoing operations, particularly for research and development and commercialization activities[199]. - The company is obligated to make up to $155.0 million in development milestone payments and up to $440 million in sales milestone payments to Lilly based on product sales thresholds[158]. Cash and Cash Equivalents - Cash and cash equivalents as of September 30, 2023, were $103.9 million, funded through various financing activities including $80.0 million from the April 2023 Private Placement[192][194]. - Cash used in investing activities for the nine months ended September 30, 2023, was $8.0 million, related to the acquisition of the 2023 Lilly License[208]. Research and Development Agreements - Zura Bio entered into a license agreement with Lilly for the development of ZB-106, involving an upfront payment of $5.8 million and 1,000,000 Class A Ordinary Shares valued at $7.84 each[154]. - The company incurred $27.2 million in license and milestone fees related to the acquisition of an IPR&D license from Lilly during the nine months ended September 30, 2023[181]. - The company recognized $7.5 million in expenses related to the acquisition of an in-process research and development license from Pfizer during the nine months ended September 30, 2022[181]. - The company has entered into various agreements for research and development services, which are generally cancelable upon written notice[211]. Company Status and Reporting - The company remains classified as an "emerging growth company" and can delay the adoption of certain accounting standards until they apply to private companies[222]. - The company may take advantage of reduced disclosure requirements, including presenting only two years of audited financial statements[223]. - The company will cease to qualify as an emerging growth company if total annual gross revenues exceed $1.07 billion[226]. - The market value of Class A Ordinary Shares held by non-affiliates must be less than $250 million for the company to remain a "smaller reporting company"[227]. - The company is not required to provide quantitative and qualitative disclosures about market risk due to its status as a smaller reporting company[228].