Financial Performance - Eliem Therapeutics reported net losses of $54.9 million for Q2 2024, compared to $5.2 million in Q2 2023, and an accumulated deficit of $212.6 million as of June 30, 2024[99]. - Total operating expenses for the three months ended June 30, 2024, increased by 739.6% to $56.4 million from $6.7 million in the same period of 2023[1]. - Net loss for the three months ended June 30, 2024, was $54.9 million, a 951.5% increase from a net loss of $5.2 million in the same period of 2023[1]. - Net cash used in operating activities for the six months ended June 30, 2024, was $2.5 million, significantly lower than $23.1 million in the same period of 2023[6]. - Research and development expenses for the six months ended June 30, 2024, decreased by 77.3% to $2.1 million from $9.4 million in the same period of 2023[8]. - General and administrative expenses for the six months ended June 30, 2024, decreased by 73.1% to $5.6 million from $20.7 million in the same period of 2023[9]. Acquisition and Investment - The company completed the acquisition of Tenet Medicines on June 27, 2024, issuing 31,238,282 shares at $3.84 per share, raising approximately $120.0 million[98]. - The total cost of the Tenet acquisition was $52.8 million, including $5.8 million in transaction costs and $5.0 million related to a loan settled upon closing[103]. - Eliem recognized in-process research and development expense of $51.7 million for the three and six months ended June 30, 2024, due to the acquisition of Tenet[103]. - Net cash provided by financing activities for the six months ended June 30, 2024, was $128.4 million, primarily from the issuance of common stock[7]. Research and Development - In a Phase 1b clinical trial of budoprutug for membranous nephropathy, 60% of patients achieved complete remission of proteinuria[94]. - Eliem expects to finalize a high concentration formulation of budoprutug by the end of 2024 to support subcutaneous dosing[96]. - Research and development expenses are expected to increase substantially as the company conducts ongoing clinical trials and studies[107]. - Research and development expenses decreased by 71.6% from $3.7 million in Q2 2023 to $1.0 million in Q2 2024, primarily due to a pause in clinical trials[3]. Cash Position - Cash and cash equivalents were reported at $223.1 million as of June 30, 2024, sufficient to fund operations into 2027[100]. - Cash and cash equivalents as of June 30, 2024, were $223.1 million, sufficient to fund operations into 2027[5]. Corporate Strategy and Future Outlook - Eliem plans to provide a comprehensive update on its corporate and budoprutug development strategy at an Investor Day later this year[96]. - The company has not generated any revenue from product sales since inception and expects to continue incurring operating losses for the foreseeable future[102]. Accounting and Compliance - The company is classified as an emerging growth company under the JOBS Act, allowing it to delay adopting new accounting standards until they apply to private companies[137]. - The company will remain an emerging growth company until it achieves total annual gross revenue of $1.235 billion or more or meets other specified criteria[138]. - The company evaluates acquisitions to determine if they should be accounted for as business combinations or asset acquisitions based on the concentration of fair value in identifiable assets[134]. - The company’s financial statements are prepared in accordance with U.S. GAAP, requiring management to make estimates and assumptions that could materially affect reported amounts[133]. - There were no material changes to the company's critical accounting policies during the six months ended June 30, 2024[135]. - The company has obligations under an asset purchase agreement and certain license agreements, which include milestone and royalty payments contingent upon future events[132]. - The company accounts for future payments in asset acquisitions based on the achievement of regulatory, development, or sales milestones[134]. - The company’s consolidated financial statements may not be comparable to those of companies that comply with new accounting pronouncements as of public company effective dates[138]. - The company does not provide quantitative and qualitative disclosures about market risk as a smaller reporting company[139].
Eliem Therapeutics(ELYM) - 2024 Q2 - Quarterly Report