AVROBIO(US:AVRO)2023-11-08 16:00Financial Performance - The company has incurred a net loss of $20.9 million for the nine months ended September 30, 2023, compared to a net loss of $80.9 million for the same period in 2022, indicating a significant improvement [131]. - The company reported a net income of $20.9 million for the nine months ended September 30, 2023, compared to a net loss of $80.9 million for the same period in 2022, an improvement of $101.8 million [151]. - As of September 30, 2023, the company has an accumulated deficit of $468.5 million, reflecting ongoing financial challenges [131]. Expenses - The total operating expenses for the three months ended September 30, 2023, were $21.1 million, down from $23.0 million in the same period in 2022 [145]. - General and administrative expenses were $18.7 million for the nine months ended September 30, 2023, compared to $26.1 million for the same period in 2022, a decrease of $7.4 million [153]. - Total operating expenses decreased to $62.0 million for the nine months ended September 30, 2023, from $80.2 million for the same period in 2022, a reduction of $18.1 million [151]. - The company anticipates continued increases in general and administrative expenses due to costs associated with being a public company and exploring strategic alternatives [141]. Research and Development - The total research and development expenses for the three months ended September 30, 2023, were $14.8 million, a decrease of $1.1 million from $15.9 million in the same period in 2022 [145]. - Research and development expenses decreased by approximately $10.7 million to $43.3 million for the nine months ended September 30, 2023, from $54.0 million for the same period in 2022 [152]. - The company has terminated all treatment-related and long-term follow-up clinical studies for its Gaucher disease and Fabry disease programs as part of its strategic review [129]. - The company currently has three gene therapy product candidates, none of which are in active clinical development as of the filing date [129]. - The company has halted the development of its gene therapy programs and is exploring strategic alternatives, including potential acquisitions or mergers [128]. Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2023, were $105.8 million, indicating a strong liquidity position [165]. - Net cash used in operating activities was $55.2 million for the nine months ended September 30, 2023, compared to $73.5 million for the same period in 2022, reflecting improved cash flow management [168]. - Net cash provided by investing activities was $84.9 million for the nine months ended September 30, 2023, compared to cash used of $0.3 million for the same period in 2022, primarily due to the sale of the cystinosis program [169]. - Net cash used by financing activities was $16.1 million for the nine months ended September 30, 2023, compared to cash provided of $0.2 million for the same period in 2022, primarily due to the repayment of the Term Loan Agreement [170]. Other Income and Gains - The company recognized a gain on asset sale of $83.7 million for the nine months ended September 30, 2023, net of $3.8 million in transaction costs [154]. - Interest income for the three months ended September 30, 2023, was $1.4 million, a significant increase from $111,000 in the same period in 2022 [145]. - Other income, net, was $1.1 million for the nine months ended September 30, 2023, compared to $(0.7) million for the same period in 2022, primarily due to the elimination of interest expense related to the Term Loan Agreement [156]. Future Outlook - The company expects substantial increases in expenses if product development resumes, particularly for clinical trials and preclinical studies, as well as for hiring additional personnel and expanding infrastructure [171]. - The company plans to finance cash needs through equity offerings, debt financings, collaboration agreements, and other funding sources, which may involve relinquishing rights to technologies or revenue streams [172]. Foreign Currency Exposure - Foreign currency transaction losses were $116 thousand for the nine months ended September 30, 2023, compared to $70 thousand for the same period in 2022, primarily due to transactions in currencies other than the U.S. dollar [179]. - The company has not entered into any foreign currency hedging contracts to mitigate exposure to foreign currency exchange risk [180].