Zura(US:ZURA)2023-08-14 11:30Financial Performance - Zura Bio Limited reported a net loss of $34.0 million for the three months ended June 30, 2023, and $43.6 million for the six months ended June 30, 2023, with an accumulated deficit of $86.8 million as of June 30, 2023[134]. - The net loss for the three months ended June 30, 2023, was $34.0 million, compared to a net loss of $0.9 million for the same period in 2022, indicating a significant increase in losses[160]. - Net loss attributable to redeemable noncontrolling interest was $0.2 million for the six months ended June 30, 2023[175]. Revenue and Funding - The company has not generated any revenue from product sales and has not conducted any clinical tests since its inception[133]. - Cash and cash equivalents as of June 30, 2023, were $112.8 million, funded through various financing activities including $56.7 million from a Business Combination[178]. - Cash provided by financing activities for the six months ended June 30, 2023, was $125.4 million, primarily from the issuance of shares and warrants[193]. - The company has not generated any revenue since inception and does not expect to do so for at least the next few years[181]. Expenses and Costs - Zura Bio anticipates significant increases in expenses as it advances preclinical and clinical development, seeks regulatory approvals, and scales up manufacturing capabilities[134]. - Research and development expenses for the three months ended June 30, 2023, were $28.2 million, an increase of $28.1 million compared to $0.1 million for the same period in 2022, primarily due to a $27.2 million expense related to the acquisition of an in-process research and development ("IPR&D") license from Lilly[161]. - General and administrative expenses for the three months ended June 30, 2023, were $5.7 million, an increase of $4.8 million compared to $0.9 million for the same period in 2022, mainly due to a $3.4 million increase in compensation-related expenses[162]. - The total operating expenses for the three months ended June 30, 2023, were $33.9 million, compared to $33.0 million for the same period in 2022, reflecting an overall increase in operational costs[160]. - For the six months ended June 30, 2023, research and development expenses totaled $33.1 million, an increase of $25.5 million compared to $7.6 million for the same period in 2022, driven by the acquisition of IPR&D licenses[170]. - General and administrative expenses for the six months ended June 30, 2023, were $8.5 million, an increase of $7.3 million compared to $1.2 million for the same period in 2022, primarily due to higher compensation and professional fees[171]. - The total operating expenses for the six months ended June 30, 2023, were $41.6 million, compared to $8.7 million for the same period in 2022, reflecting a substantial increase in overall expenses[169]. Future Outlook - The company anticipates a substantial increase in research and development expenses in the foreseeable future as it continues to develop product candidates and manufacturing processes[157]. - Future operations depend on the ability to finance cash requirements for research and development and commercialization of product candidates[180]. - The company expects expenses to increase significantly as it continues research and development and seeks marketing approval for product candidates[182]. - The company may need substantial additional funding to support ongoing operations and product development[184]. Licensing and Agreements - The company 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[145]. - Zura Bio is obligated to make up to $155.0 million in development milestone payments and up to $440 million in sales milestone payments based on net sales of products developed from ZB-106[149]. - The company anticipates significant future contingent payments to Pfizer and Lilly upon achieving certain milestones, with ongoing royalties in the mid-single digits to low double-digits percentage range[183]. Company Structure and Reporting - 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 being less than $250 million or annual revenue below $100 million[201]. - The company may continue to rely on exemptions from certain disclosure requirements as long as it remains a smaller reporting company[201]. - As a smaller reporting company, the company can present only the two most recent fiscal years of audited financial statements in its Annual Report on Form 10-K[201]. - The company has reduced disclosure obligations regarding executive compensation due to its status as a smaller reporting company[201]. - The company is not required to provide quantitative and qualitative disclosures about market risk as a smaller reporting company[202].