Financial Performance - The company reported a net loss of $73.4 million for the year ended December 31, 2023, and incurred a net loss of $8.1 million and $40.6 million for the three and nine months ended September 30, 2024, respectively[92][93]. - As of September 30, 2024, the company had an accumulated deficit of $217.1 million and does not expect positive cash flows from operations in the foreseeable future[92]. - The net loss for the three months ended September 30, 2024, was $8.13 million, a decrease of $5.98 million from a net loss of $14.11 million in the same period of 2023[129]. - The net loss for the nine months ended September 30, 2024, was $40.6 million, an improvement of $15.6 million compared to a net loss of $56.2 million in 2023[139]. - The company expects to continue incurring significant losses and negative cash flows from operations for the foreseeable future, primarily due to ongoing research and development efforts[153][161]. Revenue Generation - The company recognized $15.0 million in revenue in Q3 2024 from royalties related to prior sales of the Vaxzevria vaccine, with no expectation of future payments[105][109]. - For the three months ended September 30, 2024, the company reported license revenue of $14.97 million, compared to $0 in the same period of 2023, marking a significant increase[130]. - License revenue for the nine months ended September 30, 2024, was $15.0 million, a significant increase from $0.8 million in the same period of 2023[139]. Operating Expenses - Total operating expenses for the three months ended September 30, 2024, were $24.56 million, an increase of $8.45 million from $16.11 million in the same period of 2023[129]. - General and administrative expenses rose to $13.42 million for the three months ended September 30, 2024, an increase of $12.46 million compared to $961,000 in the same period of 2023[129]. - Total operating expenses for the nine months ended September 30, 2024, were $60.5 million, down from $64.7 million in 2023, reflecting a decrease in research and development costs[139]. Research and Development - The company is advancing two key product candidates: VTP-300 for chronic hepatitis B in Phase 2 and VTP-1000 for celiac disease in Phase 1[87][102]. - Enrollment was completed for the VTP-300 trial with 121 participants, aimed at obtaining dosing information for a potential functional cure for chronic hepatitis B[100]. - The company expects research and development expenses to increase in the future as it prepares for clinical trials and potential commercialization of product candidates[112]. - Total research and development expenses for the nine months ended September 30, 2024, were $33.9 million, a decrease of $4.6 million from $38.5 million in 2023[143]. Cash Flow and Financial Resources - As of September 30, 2024, the company had cash, cash equivalents, and restricted cash totaling $106.1 million, with an accumulated deficit of $217.1 million[151][160]. - The company expects to fund its operating expenses and capital requirements into the second quarter of 2026 based on current cash resources[97]. - The company anticipates that existing financial resources will fund operating expenses and capital expenditures into the second quarter of 2026[167]. - For the nine months ended September 30, 2024, net cash used in operating activities was $42.0 million, compared to $31.3 million for the same period in 2023[154][156]. Market and Geopolitical Factors - The company has no operations or suppliers in conflict-affected regions, minimizing the impact of geopolitical issues on its business[106]. - The company incurs significant operating costs in the U.K. and is exposed to a potential 10% weakening of the U.S. dollar against the pound sterling, which could materially affect current and projected expenses denominated in pounds[178]. Other Financial Metrics - Interest income increased to $631,000 for the three months ended September 30, 2024, compared to $196,000 in the same period of 2023, an increase of $435,000[129]. - Interest income for the nine months ended September 30, 2024, was $2.0 million, slightly down from $2.3 million in 2023[148]. - The effect of foreign exchange on cash, cash equivalents, and restricted cash resulted in a gain of $5.3 million for the nine months ended September 30, 2024[159].
VACCITECH(VACC) - 2024 Q3 - Quarterly Report