Korro Bio(US:KRRO)2025-11-12 21:09Financial Performance - The company reported a net loss of $67.2 million for the nine months ended September 30, 2025, compared to a net loss of $62.4 million for the same period in 2024, with an accumulated deficit of $333.8 million as of September 30, 2025[101]. - The net loss for the three months ended September 30, 2025, was $18.1 million, an improvement from a loss of $21.0 million in 2024, while the nine-month net loss was $67.2 million compared to $62.4 million in 2024[126]. - The company expects to continue incurring significant expenses and operating losses for the foreseeable future as it advances its pipeline candidates[129]. Revenue and Collaboration - The company recognized $5.1 million in collaboration revenue during the nine months ended September 30, 2025, related to a research collaboration with Novo Nordisk, with no collaboration revenue recognized in the same period of 2024[105]. - Collaboration revenue for the three months ended September 30, 2025, was $1.1 million, and for the nine months, it was $5.1 million, compared to no collaboration revenue in the same periods of 2024[118]. - A 12-month pause on collaboration with Novo Nordisk was agreed upon in November 2025, leading to no expected material collaboration revenue during this period[118]. - The company has not generated any revenue from product sales and does not expect to do so in the near future, relying on financing through public or private offerings and collaboration agreements[102]. Expenses and Costs - Research and development expenses decreased to $13.8 million for the three months ended September 30, 2025, from $16.0 million in 2024, while for the nine months, expenses increased to $54.6 million from $46.7 million[120]. - General and administrative expenses were $6.5 million for the three months ended September 30, 2025, down from $7.3 million in 2024, and for the nine months, they were $22.0 million compared to $22.2 million in 2024[121]. - The company has incurred significant operating losses since inception and expects to continue incurring significant and increasing expenses and operating losses for the foreseeable future as it advances product candidates through clinical development[101]. Cash Flow and Financing - As of September 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $102.5 million, expected to fund operations into the second half of 2027[128]. - Net cash used in operating activities for the nine months ended September 30, 2025, was $60.9 million, compared to $52.6 million in 2024[133]. - Net cash used in investing activities was $29.1 million for the nine months ended September 30, 2025, mainly from proceeds of marketable securities maturities[136]. - Net cash provided by financing activities was $0.3 million for the nine months ended September 30, 2025, consisting of proceeds from exercises of stock options[138]. - The company has raised approximately $223.6 million from the sale of convertible preferred stock and $117.3 million from common stock sales since inception[100]. Strategic Initiatives - The company implemented a strategic restructuring in November 2025, including a workforce reduction of approximately 34%, with estimated one-time restructuring charges of about $2.4 million[99]. - The company plans to submit a regulatory filing for the first-in-human trial of KRRO-121 in the second half of 2026, targeting urea cycle disorders and hepatic encephalopathy[97]. - KRRO-110 did not reach projected levels of functional protein following a single administration, and the company is pivoting to GalNAc delivery for AATD, expecting to nominate a development candidate in 2025[95]. Designations and Risk - The company has received Fast Track designation and Orphan Drug Designation from the FDA for its RNA editing technology, which is the first to receive investigational new drug application clearance[103]. - The company is classified as a "smaller reporting company," allowing for reduced disclosure obligations[143]. - The company has minimal exposure to foreign currency risk due to short transaction durations[146]. - An immediate 10% change in market interest rates would not materially affect the fair market value of cash or cash equivalents[145].