Molecular Partners AG(MOLN) - 2025 Q2 - Quarterly Report

Financial Performance - Total revenues for H1 2025 were CHF 4.3 million, unchanged from H1 2024[28] - Operating loss for H1 2025 was CHF 33.5 million, compared to CHF 31.8 million in H1 2024, an increase of 1.6 million[28] - Net loss for H1 2025 was CHF 37.2 million, up from CHF 26.4 million in H1 2024, an increase of 10.8 million[28] - Total operating expenses decreased by CHF 2.7 million (7%) to CHF 33.5 million in H1 2025, compared to CHF 36.1 million in H1 2024[40] - The net result attributable to shareholders for the six months ended June 30, 2025, was a loss of CHF 37,167,000, compared to a loss of CHF 26,407,000 in 2024, reflecting a 40% increase in losses[61] - The total comprehensive result attributable to shareholders for the six months ended June 30, 2025, was a loss of CHF 37,089,000, compared to a loss of CHF 22,879,000 in 2024, reflecting a worsening financial position[61] Expenses - R&D expenses decreased to CHF 22.6 million in H1 2025 from CHF 27.2 million in H1 2024, a reduction of 4.6 million[28] - SG&A expenses were CHF 8.2 million in H1 2025, down from CHF 8.9 million in H1 2024, a decrease of 0.7 million[28] - Total operating expenses for the six months ended June 30, 2025, were CHF 33,458,000, down from CHF 36,123,000 in 2024, a decrease of approximately 7%[61] - The Group recognized TCHF 2,617 in restructuring expenses for the six months ended June 30, 2025, primarily related to personnel costs[93] Cash and Equity - Cash balance as of June 30, 2025, was CHF 114.5 million, down from CHF 159.1 million year-on-year, a decrease of 44.6 million[28] - Total shareholders' equity as of June 30, 2025, was CHF 106.7 million, down from CHF 155.6 million, a decrease of 48.9 million[28] - Cash and cash equivalents plus short-term time deposits decreased by CHF 35.0 million to CHF 114.5 million as of June 30, 2025[48] - The Group's total shareholders' equity decreased by CHF 35.0 million to CHF 106.7 million as of June 30, 2025[48] Future Outlook - The company expects total expenses for 2025 to be between CHF 55 million and CHF 65 million, excluding potential receipts from R&D partnerships[30] - The company anticipates being funded into 2028, extending its cash runway beyond previous guidance of 2027[24] - The workforce is expected to reduce by up to 40 positions, representing approximately 24% of total positions, to increase operational efficiency[24] Revenue Sources - In H1 2025, the Group recognized no revenue, a decrease from CHF 4.3 million in H1 2024, attributed to the completion of a collaboration with Novartis[37] - The company had no revenues from the collaboration with Novartis in the first half of 2025, while it recognized CHF 4,289,000 in revenues during the same period in 2024, marking a complete cessation of income from this source[76] - The company recorded a reimbursement of expenses from Orano Med of CHF 1,397,000 for the six months ended June 30, 2025, compared to a reimbursement of CHF 429,000 in 2024, indicating a significant increase in collaboration[75] Employee and Shareholder Information - As of June 30, 2025, the Group had 153 full-time employees, with 82% in R&D and 18% in SG&A[42] - The outstanding issued share capital increased to CHF 4,037,464 as of June 30, 2025, due to the vesting of Performance Share Units, compared to CHF 4,036,310 at the end of 2024[80] - As of June 30, 2025, the total number of outstanding PSUs and RSUs was 3,365,845, an increase from 2,593,065 at the beginning of the year[84] - The weighted average number of shares used in computing basic and diluted earnings per share for the six months ended June 30, 2025, was 37,134,928, up from 33,025,576 in 2024[89] Share-Based Compensation - The share-based compensation costs for the six months ended June 30, 2025, amounted to TCHF 2,370, compared to TCHF 1,983 for the same period in 2024[85] - The share-based compensation costs for the three months ended June 30, 2025, were TCHF 1,228, compared to TCHF 1,129 for the same period in 2024[85] Financial Risks - The Group's financial risk management focuses on minimizing exposure to foreign exchange, liquidity, and interest rate risks[55] - The Group reported a net foreign exchange loss of TCHF 4,617 for the six months ended June 30, 2025, compared to no losses in the previous year[86] - Financial income for the six months ended June 30, 2025, was TCHF 922, a decrease from TCHF 5,447 in 2024, primarily due to a net foreign exchange gain of TCHF 3,432 in 2024[86] Taxation - The Group has a tax loss carry-forward of TCHF 195,126 as of December 31, 2024, with no deferred tax assets recognized due to the improbability of utilizing these losses in the foreseeable future[88] Dividends - No dividends have been paid since the Group's inception and none are anticipated in the foreseeable future[83]