Werewolf Therapeutics(US:HOWL)2024-08-08 11:12Revenue and Collaboration Agreements - For the six months ended June 30, 2024, the company recognized $1.9 million in revenue from the Collaboration Agreement with Jazz Pharmaceuticals[77] - Collaboration revenue for the six months ended June 30, 2024, was $1.9 million, down $10.7 million from $12.5 million in 2023[99] - The company anticipates fluctuations in future revenue based on the achievement of development and regulatory milestones[77] Research and Development Expenses - Research and development expenses are expected to increase substantially as the company progresses its clinical trials for WTX-124 and WTX-330[80] - Research and development expenses increased to $15.3 million for the three months ended June 30, 2024, compared to $9.6 million in 2023, reflecting a rise of $5.7 million[90] - Research and development expenses increased by $5.7 million, driven by ongoing development efforts of product candidates[118] Operating Loss and Financial Performance - The operating loss for the three months ended June 30, 2024, was $(18.96) million, compared to $(6.07) million in the same period of 2023, an increase of $12.89 million[87] - The net loss for the three months ended June 30, 2024, was $(17.25) million, compared to $(5.10) million in 2023, an increase of $12.15 million[87] - The company reported a net loss of $17.2 million for the three months ended June 30, 2024, compared to a net loss of $5.1 million for the same period in 2023, with an accumulated deficit of $377.5 million as of June 30, 2024[106] External Development Costs - External development costs for WTX-330 amounted to $7.9 million for the six months ended June 30, 2024, compared to $1.2 million for the same period in 2023[80] - The company reported total external development costs of $15.9 million for the six months ended June 30, 2024, up from $9.4 million in the same period of 2023[80] Cash Flow and Financing Activities - Net cash used in operating activities for the six months ended June 30, 2024, was $29.5 million, an increase of $8.7 million compared to $20.8 million for the same period in 2023, primarily due to a decrease in revenue from collaboration agreements[118] - Net cash provided by financing activities for the six months ended June 30, 2024, was $10.5 million, significantly lower than $49.3 million for the same period in 2023[119] - The company expects to require additional funding to complete the development of WTX-124, WTX-330, and other product candidates[116] Interest Income and Expense - Interest income for the three months ended June 30, 2024, was $1.8 million, a decrease of $0.1 million from $1.9 million in 2023[93] - Interest income rose to $3.8 million for the six months ended June 30, 2024, compared to $3.5 million for the same period in 2023, driven by higher yields on cash equivalents[103] - Interest expense increased to $1.1 million for the three months ended June 30, 2024, compared to $1.0 million in 2023, reflecting a rise of $0.1 million[94] - Interest expense increased significantly to $2.1 million for the six months ended June 30, 2024, from $1.1 million in the same period of 2023, primarily due to the timing of term loan drawdowns[103] Share Issuance and Cash Position - The company sold 4,342,320 shares of common stock at an average price of $5.11 per share during the six months ended June 30, 2024, generating net proceeds of $21.1 million[112] - As of June 30, 2024, the company had cash and cash equivalents of $135.3 million and restricted cash of $1.2 million, expected to fund operations through at least Q1 2026[114] - The company reported a net decrease in cash, cash equivalents, and restricted cash of $19.1 million for the six months ended June 30, 2024[117] Loan Agreements and Obligations - The K2HV Loan Agreement provides up to $60.0 million in term loans, with $30.0 million received at closing and additional tranches available based on certain milestones[109] - The extinguishment of the PWB term loan resulted in a one-time loss of $0.6 million for the three months ended June 30, 2024[96] - The extinguishment of the PWB term loan resulted in a one-time loss of $0.6 million for the six months ended June 30, 2024[105] Clinical Trials and Product Development - The company is currently evaluating WTX-124 in a Phase 1/1b clinical trial, with preliminary data from 16 patients indicating proof of mechanism and proof of concept for the INDUKINE design[74] - The company executed a Transfer Agreement in June 2024, completing all material performance obligations under the Collaboration Agreement with Jazz[77] - The company reported initial data from the Phase 1 clinical trial of WTX-330 in June 2024, with patient dosing initiated in February 2023[74] - The company has no remaining material performance obligations under the Collaboration Agreement as of June 2024[77] Future Financial Considerations - The company may need to raise additional funds through equity or debt financing, which could lead to dilution for existing shareholders[116] - The company is actively considering collaboration arrangements for clinical development and commercialization to support its financial needs[116] - The company anticipates that the costs of obtaining marketing approval for WTX-124 and WTX-330 will significantly impact future cash flows[116] General and Administrative Expenses - General and administrative expenses increased to $9.8 million for the six months ended June 30, 2024, from $9.5 million in the same period of 2023, primarily due to a $0.3 million increase in personnel costs and a $0.4 million increase in professional services costs[102]