89bio(US:ETNB)2022-08-10 16:00Financial Performance - The company reported a net loss of $25.1 million for the three months ended June 30, 2022, compared to a net loss of $20.7 million for the same period in 2021, representing an increase of 16%[78]. - The company reported a total net loss before tax of $50.6 million for the six months ended June 30, 2022, compared to a net loss of $35.5 million for the same period in 2021, reflecting an increase of 42.5%[93]. - Net cash used in operating activities was $39.2 million for the six months ended June 30, 2022, compared to $35.1 million for the same period in 2021[108]. - The company expects to continue generating substantial operating losses as it expands research and development activities[105]. Research and Development - Research and development expenses increased by $4.1 million, or 26%, to $19.7 million for the three months ended June 30, 2022, primarily due to a $5.5 million increase in clinical development costs[88]. - Research and development expenses increased by $13.8 million, or 53%, to $39.5 million for the six months ended June 30, 2022, compared to $25.8 million for the same period in 2021[94]. - The company plans to initiate its Phase 3 SHTG trial in the first half of 2023, pending the end of Phase 2 meeting with the FDA[73]. - Pegozafermin demonstrated a 63% reduction in triglycerides in the highest dosing group during the Phase 2 trial, with statistically significant improvements in cardiovascular risk markers[73]. Operating Expenses - Total operating expenses for the six months ended June 30, 2022, were $49.8 million, an increase of $14.6 million compared to $35.3 million for the same period in 2021[93]. - General and administrative expenses increased by $0.1 million, or 3%, to $5.1 million for the three months ended June 30, 2022, primarily due to increased personnel-related costs[91]. - General and administrative expenses rose by $0.8 million, or 8%, to $10.3 million for the six months ended June 30, 2022, from $9.5 million in the prior year[95]. Cash Position and Funding - The company had cash and cash equivalents totaling $139.3 million as of June 30, 2022, which is expected to meet anticipated cash requirements for at least one year[76]. - As of June 30, 2022, the company had available cash and cash equivalents of $139.3 million and an accumulated deficit of $263.8 million[98]. - The company raised net proceeds of approximately $88.2 million from a public offering completed in July 2022[99]. - Net cash provided by investing activities was $19.2 million for the six months ended June 30, 2022, primarily from proceeds of $59.9 million from maturities of available-for-sale securities[111]. - Net cash provided by financing activities was $28.2 million for the six months ended June 30, 2022, mainly related to proceeds from a public offering[113]. - Future funding requirements will depend on the progress and costs of clinical trials and the ability to enroll patients in a timely manner[102]. Impact of External Factors - The ongoing COVID-19 pandemic has disrupted the company's business and may continue to delay its development timeline[79]. - The company is classified as a smaller reporting company under Rule 12b-2 of the Securities Exchange Act of 1934, thus not required to provide detailed market risk disclosures[122].