AVROBIO(US:AVRO)2023-05-10 16:00Financial Performance - The company reported net losses of $25.0 million for the three months ended March 31, 2023, compared to $29.8 million for the same period in 2022, resulting in an accumulated deficit of $514.4 million as of March 31, 2023[121]. - Net loss for the three months ended March 31, 2023, was $24.96 million, an improvement of $4.88 million compared to a net loss of $29.83 million for the same period in 2022[140]. - Net cash used in operating activities was $20.3 million for the three months ended March 31, 2023, compared to $28.0 million for the same period in 2022[149]. - Total other income (expense), net, was $0.3 million for the three months ended March 31, 2023, compared to $(0.4) million for the same period in 2022, primarily due to increased interest income[140]. Funding and Cash Position - The company has raised a total of $428.1 million from sales of common stock through its initial public offering and follow-on offerings, along with $87.5 million from preferred stock sales[120]. - As of March 31, 2023, the company had cash and cash equivalents of $72.3 million, expected to fund operations into the first quarter of 2024[125]. - Cash and cash equivalents as of March 31, 2023, were $72.3 million, expected to fund operating expenses into the first quarter of 2024[146]. - As of March 31, 2023, approximately $26.5 million of common stock remained available for future issuance under the ATM facility[144]. - The company has drawn $15.0 million in term loans under its Term Loan Agreement, with a repayment schedule starting November 1, 2024[145]. Research and Development - The total research and development expenses for the three months ended March 31, 2023, were $17.3 million, a decrease from $19.3 million in the same period of 2022[129]. - Research and development expenses decreased by approximately $1.9 million to $17.3 million for the three months ended March 31, 2023, from $19.3 million for the same period in 2022[138]. - The company is currently focused on four HSC gene therapy programs targeting rare diseases, with significant market opportunities estimated at approximately $3.5 billion in worldwide net sales in 2022[116]. - AVR-RD-02 is in a Phase 1/2 clinical trial for Gaucher disease type 1, with five patients dosed and six enrolled as of March 20, 2023, and a global Phase 2/3 trial planned for the second half of 2023[118]. - The company plans to initiate a Phase 1/2 clinical trial for AVR-RD-04 for cystinosis in the second half of 2023, following the completion of enrollment in a collaborator-sponsored trial[119]. - The company expects expenses to increase substantially as it advances preclinical activities and clinical trials of its product candidates[152]. Operating Expenses - The company anticipates significant increases in general and administrative expenses as it expands headcount and prepares for potential commercialization of its product candidates[134]. - General and administrative expenses were $7.9 million for the three months ended March 31, 2023, compared to $10.2 million for the same period in 2022, a decrease of $2.3 million[139]. - The company has incurred significant operating losses and will require substantial additional funding to support ongoing operations and growth strategies[123]. Currency and Interest Rate Exposure - The company recognized foreign currency transaction losses of $28 thousand and $46 thousand for the three months ended March 31, 2023, and 2022, respectively[161]. - The company believes that a 10% change in the exchange rate between the U.S. dollar and other currencies would not have a material impact on its financial position or results of operations[161]. - The company has not entered into any foreign currency hedging contracts to mitigate exposure to foreign currency exchange risk[162]. - An immediate 100 basis point change in interest rates would not have a material effect on the fair market value of the company's investment portfolio due to its short-term duration and low risk profile[160].