Zura(US:ZURA)2025-11-13 11:32Financial Performance - Total assets decreased from $179,533,000 as of December 31, 2024, to $143,935,000 as of September 30, 2025, representing a decline of approximately 19.87%[12] - Net loss attributable to Class A Ordinary Shareholders increased from $22,942,000 in Q3 2024 to $20,037,000 in Q3 2025, indicating a decrease in loss of about 12.6%[14] - The company reported a net loss per share attributable to Class A Ordinary Shareholders of $(0.21) for Q3 2025, compared to $(0.26) for Q3 2024, reflecting an improvement of approximately 19.2%[14] - The Company has incurred operating losses since inception and expects to continue incurring significant operating losses for the foreseeable future[39] - The Company has an accumulated deficit of $207.4 million as of September 30, 2025, and a net loss of $18.0 million for the three months ended September 30, 2025[39] Cash and Cash Equivalents - Cash and cash equivalents decreased from $176,498,000 as of December 31, 2024, to $139,017,000 as of September 30, 2025, a decline of about 21.3%[12] - The cash and cash equivalents at the end of the period were $139,017,000, down from $188,221,000 at the end of September 30, 2024[28] - Cash equivalents as of September 30, 2025, were valued at $135.9 million, down from $170.7 million as of December 31, 2024, indicating a decrease of 20.4%[67] - The Company has significant cash balances exceeding the federally insured limit of $250,000, which could impact its financial condition if access to these funds is restricted[48] Operating Expenses - Total operating expenses for the nine months ended September 30, 2025, were $56,835,000, compared to $39,457,000 for the same period in 2024, reflecting a year-over-year increase of approximately 44.1%[14] - Research and development expenses increased significantly from $6,029,000 in Q3 2024 to $11,948,000 in Q3 2025, a rise of approximately 98.5%[14] - The company reported a net cash used in operating activities of $42,537,000 for the nine months ended September 30, 2025, compared to $17,252,000 for the same period in 2024[28] Shareholder Equity and Shares - As of September 30, 2025, the total shareholders' equity was $109,784,000, with a net loss of $51,475,000 for the period[24] - The number of Class A Ordinary Shares issued and outstanding as of September 30, 2025, was 65,018,058, compared to 65,297,530 as of December 31, 2024, indicating a slight decrease[12] - The Company has authorized 300,000,000 Class A Ordinary Shares and 1,000,000 preferred shares as of March 16, 2023[90] - The Company issued 20,090,128 Class A Ordinary Shares in connection with the April 2024 Private Placement, net of $7.2 million in transaction costs[26] - During the nine months ended September 30, 2025, the Company sold 3,000,000 Class A Ordinary Shares at a price of $1.75 per share, generating net proceeds of $5.1 million[95] Liabilities - The total liabilities remained constant at $25,491,000 as of September 30, 2025, compared to $19,514,000 as of December 31, 2024, indicating no increase in liabilities despite the decrease in assets[12] - As of September 30, 2025, the total accounts payable and accrued expenses amounted to $25.5 million, an increase from $19.5 million as of December 31, 2024, representing a 30.5% increase[70] Clinical Development - The company has one clinical-stage product candidate, tibulizumab (ZB-106), currently in ongoing Phase 2 trials[32] - The Company initiated the TibuSHIELD Phase 2 clinical study in May 2025, evaluating tibulizumab in approximately 180 adults with moderate to severe hidradenitis suppurativa[36] - The Company is actively assessing additional development opportunities within its pipeline, focusing on indications with unmet needs and commercial potential[32] - The Company is evaluating potential therapeutic indications for crebankitug and torudokimab as part of its strategic focus[34] Share-Based Compensation - Share-based compensation expense for the nine months ended September 30, 2025, was $9,755,000, compared to $13,981,000 for the same period in 2024[28] - The total share-based compensation expense for the nine months ended September 30, 2025 was $9,755,000, compared to $13,981,000 for the same period in 2024, reflecting a decrease of approximately 30%[122] - The company recognized $1.3 million in share-based compensation expense related to RSUs for the nine months ended September 30, 2025, down from $1.6 million in 2024[117] - The company recognized $0.3 million in share-based compensation expense related to RSAs for the nine months ended September 30, 2025, consistent with the same period in 2024[118] - The redeemable noncontrolling interest balance was $8.7 million as of September 30, 2025, down from $11.7 million as of December 31, 2024[126] Future Expectations and Regulations - The Company expects to no longer be classified as an emerging growth company effective December 31, 2026[38] - The Company expects to adopt ASU 2024-03 for the year ending December 31, 2027, which will require additional disclosures in financial statements[63] Financing Activities - The total cash flows from financing activities for the nine months ended September 30, 2025, were $5,152,000, compared to $110,697,000 for the same period in 2024[28] - The Company received $56.7 million in net cash proceeds upon the closing of the Business Combination and raised an additional $105.3 million from the sale of Class A Ordinary Shares in April 2024[40] Agreements and Obligations - The Company is obligated to make contingent payments to Lilly, including up to $155 million in development milestone payments and up to $440 million in sales milestone payments based on net sales thresholds for products developed from tibulizumab[78] - The Company has not made a $5.0 million milestone payment to BAFFX17 as of September 30, 2025, which is due upon certain conditions being met[75] - The Company is required to make a one-time payment of $4.5 million to Stone Peach upon FDA acceptance for its Investigational New Drug for tibulizumab, which was recorded in research and development expenses for the year ended December 31, 2024[74] - The Company has not recorded any Pfizer Contingent Payments as of September 30, 2025, as none are due at this time[85] Licensing and Agreements - The Company entered into a license agreement with Lonza Sales AG, resulting in an annual license fee of $0.4 million starting in 2023[87] - The Company has a biologics master services agreement with WuXi Biologics, with fees recognized as research and development expenses as incurred[88] - The Cell Line License Agreement with WuXi Biologics requires royalty payments based on a single-digit percentage of global net sales if manufacturing is done by third parties[89]