Centessa Pharmaceuticals(CNTA) - 2025 Q1 - Quarterly Report

Financial Performance - Centessa Pharmaceuticals reported a license revenue of $15.0 million for the three months ended March 31, 2025, from a license agreement with Genmab[119]. - The net loss for the three months ended March 31, 2025, was $26.1 million, compared to a net loss of $38.0 million for the same period in 2024[118]. - Interest income rose to $7.9 million in Q1 2025, compared to $2.6 million in Q1 2024, indicating improved cash management[118]. - General and administrative expenses decreased to $12.3 million in Q1 2025 from $13.4 million in Q1 2024, primarily due to lower share-based compensation and consulting fees[121]. - Net cash used in operating activities was $57.2 million in Q1 2025, compared to $37.3 million in Q1 2024, reflecting a net loss of $26.1 million[134][135]. - Net cash used in investing activities was $222.4 million in Q1 2025, primarily due to investments in fixed income, compared to a net cash inflow of $16.8 million in Q1 2024[136]. Research and Development - Research and development expenses increased to $33.4 million in Q1 2025, up from $22.7 million in Q1 2024, reflecting a significant investment in clinical programs[118]. - Research and development expenses for Q1 2025 were $33.4 million, up from $22.7 million in Q1 2024, reflecting a $15.4 million increase in costs for the OX2R agonist program[120]. - Centessa Pharmaceuticals is advancing its OX2R agonist program, with ORX750 currently in a Phase 2a study for narcolepsy and other sleep disorders[96][98]. - The company plans to initiate first-in-human studies for ORX142 in 2025, targeting neurological and neurodegenerative disorders[99]. - Centessa discontinued the clinical development of LB101, a LockBody candidate, based on clinical data, while continuing to evaluate the LockBody platform[101]. Funding and Cash Management - The company had cash, cash equivalents, and investments totaling $424.9 million as of March 31, 2025, expected to fund operations into mid-2027[104]. - The company entered into a loan agreement for up to $200 million, receiving $110 million initially, with additional funds available upon achieving certain milestones[126][127]. - The company sold 372,538 ordinary shares under the ATM program in Q1 2025, generating net proceeds of $6.1 million, totaling approximately $36.6 million since the program's inception[131]. - Future funding requirements are expected to increase significantly due to ongoing product development and commercialization efforts[138][139]. Company Classification and Reporting - The company is classified as an emerging growth company, allowing it to delay the adoption of new accounting standards[143]. - The company will remain an emerging growth company until it achieves total annual gross revenues of $1.235 billion or more[144]. - The company is classified as a "smaller reporting company" under the Securities Exchange Act of 1934, allowing it to present only the two most recent fiscal years of audited financial statements in its Annual Report[145]. - As a smaller reporting company, the company has reduced disclosure obligations regarding executive compensation[145]. - The company is not required to provide qualitative and quantitative disclosures about market risk under SEC rules and regulations[146]. License Agreements - A license agreement with Genmab allows access to the LockBody technology platform for research against up to three targets, with Genmab conducting all related R&D activities[102]. - The company expects to incur significant expenses and operating losses as it continues to develop its product candidates and expand its research activities[104].