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ARCA biopharma Announces Second Quarter 2024 Financial Results and Provides Corporate Update
ARCA biopharmaARCA biopharma(US:ABIO) GlobeNewswire News Room·2024-08-01 20:15

Core Viewpoint - ARCA biopharma, Inc. is undergoing a strategic review process, including a merger with Oruka Therapeutics, and has reported its second quarter 2024 financial results, highlighting the company's financial position and operational changes. Financial Results - As of June 30, 2024, cash and cash equivalents were $33.3 million, down from $37.4 million as of December 31, 2023, indicating a decrease of approximately 11.5% [6][18]. - General and administrative expenses for the quarter were $3.0 million, an increase of approximately 76.5% from $1.7 million in the same period of 2023 [7][19]. - Research and development expenses decreased to $0.1 million from $0.3 million year-over-year, primarily due to reduced headcount and the cessation of certain research grants [9][19]. - Total operating expenses for the quarter were $3.1 million, compared to $2.0 million in the second quarter of 2023 [10][19]. - The net loss for the quarter was $2.7 million, or $0.18 per share, compared to a net loss of $1.5 million, or $0.10 per share, in the same quarter of 2023 [10][19]. Strategic Developments - In April 2024, ARCA entered into a Merger Agreement with Oruka Therapeutics, which involves a two-step merger process intended to qualify as a tax-free reorganization [2][3]. - The company is in the process of disposing of legacy technology and intellectual property, contingent upon stockholder approval for the merger [4]. - Future operations are highly dependent on the successful completion of the merger, with the possibility of exploring other strategic alternatives if the merger does not proceed [5]. Corporate Update - The company has established a Special Committee to review strategic alternatives, including potential acquisitions, mergers, or licensing transactions [1]. - Significant costs are expected to be incurred in connection with the evaluation of strategic alternatives and the merger, including legal and advisory fees [6][8].