Financial Performance - The company reported net losses of $143.4 million and $62.8 million for the years ended December 31, 2025 and 2024, respectively, with an accumulated deficit of $334.2 million as of December 31, 2025[627]. - The net loss for 2025 was $143.4 million, compared to a net loss of $62.8 million in 2024, reflecting an increase of $80.6 million[658]. - Total operating expenses rose to $163.2 million in 2025, up from $80.1 million in 2024, reflecting a $73.8 million increase[658]. - Research and development expenses surged to $136.8 million in 2025, compared to $63.0 million in 2024, driven by increased costs in the verekitug program[661]. - General and administrative expenses increased to $26.4 million in 2025 from $17.2 million in 2024, primarily due to higher personnel and professional fees[665]. - The company has incurred significant net operating losses and will require additional financing to support ongoing operations and development efforts[630]. Cash and Investments - The company has cash, cash equivalents, and short-term investments totaling $341.5 million, which are expected to fund operations through 2027[627]. - Cash, cash equivalents, and short-term investments totaled $341.5 million as of December 31, 2025[668]. - Net cash used in operating activities was $133.3 million in 2025, compared to $59.2 million in 2024[669]. - Net cash provided by financing activities for the year ended December 31, 2024, was $418.9 million, primarily from $268.8 million in net proceeds from the IPO and $149.9 million from the issuance of Series B Preferred Stock[676]. - The company expects to finance operations through a combination of equity offerings, debt financings, and collaborations, which may dilute ownership interests[680]. Product Development - The company is developing verekitug, a monoclonal antibody currently in Phase 2 trials for severe asthma, chronic rhinosinusitis with nasal polyps, and chronic obstructive pulmonary disease[625]. - Positive top-line results were reported in the Phase 2 trial for chronic rhinosinusitis with nasal polyps in September 2025 and for severe asthma in February 2026[625]. - The company plans to initiate Phase 3 trials for severe asthma and chronic rhinosinusitis with nasal polyps in Q1 2027, focusing on maximizing efficacy without biomarker restrictions[625]. - The company incurred approximately $98.7 million in direct external expenses for the development of verekitug for severe asthma since its nomination[664]. - The increase in manufacturing costs of $16.4 million was primarily due to higher CMO costs for Phase 3 clinical material development[663]. - Research and development expenses are expected to increase as the company advances verekitug through clinical trials[644]. Revenue and Collaborations - The company has not generated any revenue from product sales and does not expect to do so in the foreseeable future[642]. - Collaboration revenue increased to $2.9 million in 2025 from $2.4 million in 2024, primarily related to the Phase 2 clinical trial for severe asthma[659]. - The company has received $2.8 million and $1.9 million from the Maruho License Agreement for the years ended December 31, 2025 and 2024, respectively[640]. Accounting and Reporting - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to adopt new accounting standards at the same time as private companies[701]. - The company is also a "smaller reporting company," with a market value threshold of less than $250 million or annual revenue below $100 million to maintain this status[702]. - If the company remains a smaller reporting company after ceasing to be an emerging growth company, it can continue to rely on certain disclosure exemptions[702]. - The company is not required to provide quantitative and qualitative disclosures about market risk due to its smaller reporting company status[703]. - The company has not made any material adjustments to prior estimates of accrued research and development expenses, indicating stable financial forecasting practices[696]. Lease and Other Agreements - The company entered into a lease agreement for office space with an initial base rent of approximately $0.7 million for the first year, increasing to approximately $0.8 million for the second and third years[689]. - The company made an annual payment of $0.5 million to Lonza under the Lonza License Agreement during the years ended December 31, 2025 and 2024[688]. - The company has not made any royalty payments to Regeneron under the Regeneron Letter Agreement to date, which requires mid-single-digit percentage royalties on worldwide net sales of a Royalty Product[684].
Upstream Bio, Inc.(UPB) - 2025 Q4 - Annual Report