Prelude Therapeutics(PRLD) - 2023 Q3 - Quarterly Report

Financial Performance - The company reported a net loss of $88.8 million for the nine months ended September 30, 2023, compared to a net loss of $86.8 million for the same period in 2022, resulting in an accumulated deficit of $423.3 million[86]. - The company reported a net loss of $30.6 million for Q3 2023, compared to a net loss of $30.0 million in Q3 2022, an increase of 2.2%[100]. - Net cash used in operating activities for the nine months ended September 30, 2023, was $83.5 million, compared to $60.8 million for the same period in 2022, an increase of 37.4%[116]. - Total operating expenses for the nine months ended September 30, 2023, were $94.9 million, compared to $90.2 million in the same period of 2022, an increase of 5.5%[104]. Cash and Financing - As of September 30, 2023, the company had $230.5 million in cash, cash equivalents, and marketable securities[89]. - The company generated $111.2 million in net cash from financing activities during the nine months ended September 30, 2023, primarily from the sale of common stock and pre-funded warrants[121]. - The company plans to finance operations through equity sales, debt financing, or collaborations, as it requires substantial additional capital to support ongoing operations[88]. - The company expects to finance operations through equity offerings, debt financings, and collaborations, as it has not yet commercialized any products[115]. Research and Development - The company is focusing resources on its first-in-class SMARCA2 degrader compounds and a selective CDK9 inhibitor, with plans to demonstrate clinical proof-of-concept in 2024[76]. - A Phase 1 multi-dose escalation clinical trial of the SMARCA2 degrader, PRT3789, is ongoing, with initial data expected to be shared in mid-2024[80]. - The CDK9 candidate, PRT2527, has shown high levels of target inhibition and potential for better tolerability compared to existing CDK9 inhibitors, with proof-of-concept data expected in 2024[83]. - The company has received IND clearance for PRT3645, a brain-penetrant CDK4/6 inhibitor, and is currently conducting a Phase 1 trial[85]. - Research and development expenses increased from $22.9 million in Q3 2022 to $26.3 million in Q3 2023, a rise of 15%[99]. - For the nine months ended September 30, 2023, research and development expenses totaled $73.1 million, up from $67.0 million in the same period of 2022, reflecting an increase of 9%[105]. Administrative Expenses - General and administrative expenses decreased from $7.5 million in Q3 2022 to $7.1 million in Q3 2023, a decline of 5.3%[101]. - Other income, net rose significantly from $0.4 million in Q3 2022 to $2.8 million in Q3 2023, an increase of 600%[102]. Company Classification - The company qualifies as an "emerging growth company" and may rely on reduced reporting requirements until it reaches total annual gross revenues of at least $1.235 billion or a market value exceeding $700 million[127]. - The company is classified as a "smaller reporting company" with a market value of stock held by non-affiliates below $700 million and annual revenue under $100 million[129]. - 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[129]. - The company is not required to provide quantitative and qualitative disclosures about market risk due to its status as a smaller reporting company[130].