AVROBIO(US:AVRO)2024-05-09 20:30Financial Performance - The company has incurred a net loss of $6.8 million for the three months ended March 31, 2024, compared to a net loss of $25.0 million for the same period in 2023, resulting in an accumulated deficit of $484.1 million as of March 31, 2024[112]. - Net loss for the three months ended March 31, 2024, was $6.8 million, compared to a net loss of $25.0 million for the same period in 2023, an improvement of $18.2 million[129]. - Interest income increased to $1.1 million for the three months ended March 31, 2024, from $0.3 million for the same period in 2023, an increase of $0.8 million[132]. - Cash and cash equivalents as of March 31, 2024, were $90.5 million[140]. - Net cash used in operating activities was $7.6 million for the three months ended March 31, 2024, compared to $20.3 million for the same period in 2023[143]. Research and Development - Research and development expenses totaled $683,000 for the three months ended March 31, 2024, significantly down from $17.3 million for the same period in 2023[120]. - Research and development expenses decreased by approximately $16.7 million to $0.7 million for the three months ended March 31, 2024, from $17.3 million for the same period in 2023[130]. - The company has terminated all treatment-related and long-term follow-up clinical studies for its Gaucher disease and Fabry disease programs, and discontinued its Hunter syndrome gene therapy program[107]. - The company expects substantial increases in expenses if product development resumes, particularly for preclinical activities and clinical trials[146]. - The establishment of a sales, marketing, and distribution infrastructure is necessary for the commercialization of product candidates[147]. Strategic Plans and Mergers - The company plans to halt development of its gene therapy programs and explore strategic alternatives, including potential mergers or acquisitions[106]. - A merger agreement has been entered into with Tectonic, with certain investors agreeing to purchase shares at a price of $12.39908 per share, totaling approximately $130.7 million in private financings[108]. - The merger is subject to approval by stockholders and is conditioned upon receiving cash proceeds of not less than $114.5 million[109]. - Future operations are highly dependent on the success of the merger, with no assurances that it will be consummated[110]. Funding and Expenses - The company has received gross cash proceeds of $428.1 million from sales of common stock through its IPO and follow-on offerings, and $87.5 million from the sale of its cystinosis gene therapy program[111]. - The company has not generated any product revenue since its inception in 2015 and relies on external funding to support operations[111]. - The company anticipates an increase in general and administrative expenses as it resumes development of product candidates and increases headcount[125]. - General and administrative expenses were $7.3 million for the three months ended March 31, 2024, compared to $7.9 million for the same period in 2023, a decrease of $0.6 million[131]. - Total operating expenses decreased by $17.3 million to $7.9 million for the three months ended March 31, 2024, from $25.2 million for the same period in 2023[129]. Currency and Financial Risk - The company recognized foreign currency transaction losses of $13, and $28 for the three months ended March 31, 2024, and 2023, respectively[154]. - A 10% change in the exchange rate between the U.S. dollar and other currencies is not expected to materially impact the financial position or results of operations[154]. - The company may finance cash needs through equity offerings, debt financings, and collaboration agreements, which could involve relinquishing valuable rights[148]. - The company has not entered into any foreign currency hedging contracts to mitigate exposure to foreign currency exchange risk[155]. Operational Considerations - Additional personnel will need to be hired and retained to support clinical, medical, and commercial operations[147]. - The company may need to delay or limit product development if additional funds are not raised when needed[148]. - There were no material changes to the company's critical accounting policies during the three months ended March 31, 2024[150].