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Tourmaline Bio(TRML) - 2024 Q2 - Quarterly Report
TRMLTourmaline Bio(TRML)2024-08-08 12:46

Financial Position and Cash Flow - Total cash, cash equivalents, and investments as of June 30, 2024, amounted to 334.4million[86]−TheJanuary2024publicofferingresultedinnetproceedsof334.4 million[86] - The January 2024 public offering resulted in net proceeds of 161.4 million after deducting underwriting discounts and offering costs[88] - As of June 30, 2024, the company had 334.4millionincash,cashequivalents,andinvestments,whichisexpectedtofundoperatingexpensesandcapitalexpendituresinto2027[125]−NetcashusedinoperatingactivitiesforthesixmonthsendedJune30,2024was334.4 million in cash, cash equivalents, and investments, which is expected to fund operating expenses and capital expenditures into 2027[125] - Net cash used in operating activities for the six months ended June 30, 2024 was 32.9 million, a 19.6millionincreasecomparedtothesameperiodin2023[133]−NetcashusedininvestingactivitiesforthesixmonthsendedJune30,2024was19.6 million increase compared to the same period in 2023[133] - Net cash used in investing activities for the six months ended June 30, 2024 was 199.0 million, primarily due to purchases of investments using proceeds from the January 2024 Offering[134] - Net cash provided by financing activities for the six months ended June 30, 2024 was 161.4million,primarilyfromtheJanuary2024Offering[135]−Thecompanyhasraisedaggregategrossproceedsofapproximately161.4 million, primarily from the January 2024 Offering[135] - The company has raised aggregate gross proceeds of approximately 359.7 million from outside capital, including Series A convertible preferred stock, Pre-Merger Financing Transaction, and the January 2024 Offering[125] Net Losses and Accumulated Deficit - Net losses for the six months ended June 30, 2024, were 30.8million,comparedto30.8 million, compared to 23.6 million for the same period in 2023[87] - Accumulated deficit as of June 30, 2024, was 92.8million[87]−Netlossincreasedby92.8 million[87] - Net loss increased by 1.4 million to 17.5millionforQ22024comparedtoQ22023[115]−Netlossincreasedby17.5 million for Q2 2024 compared to Q2 2023[115] - Net loss increased by 7.2 million to 30.8millionforthefirstsixmonthsof2024comparedtothesameperiodin2023[119]−Thecompanyincurrednetlossesof30.8 million for the first six months of 2024 compared to the same period in 2023[119] - The company incurred net losses of 30.8 million and 23.6millionforthesixmonthsendedJune30,2024and2023,respectively,withanaccumulateddeficitof23.6 million for the six months ended June 30, 2024 and 2023, respectively, with an accumulated deficit of 92.8 million as of June 30, 2024[125] Research and Development Expenses - Research and development expenses increased by 1.3millionto1.3 million to 15.7 million for Q2 2024 compared to Q2 2023[116] - Research and development expenses increased by 6.5millionto6.5 million to 27.1 million for the first six months of 2024 compared to the same period in 2023[120] - The company expects significant increases in research and development and general and administrative costs in the future[124] General and Administrative Expenses - General and administrative expenses increased by 4.3millionto4.3 million to 6.2 million for Q2 2024 compared to Q2 2023[118] - General and administrative expenses increased by 9.1millionto9.1 million to 12.4 million for the first six months of 2024 compared to the same period in 2023[122] - The company expects significant increases in research and development and general and administrative costs in the future[124] Clinical Trials and Product Development - The company initiated a Phase 2 trial of pacibekitug in patients with chronic kidney disease (CKD) and elevated high-sensitivity CRP (hs-CRP) in April 2024, with topline data expected in the first half of 2025[85] - The company expects to report topline data from the pivotal Phase 2b spiriTED trial in 2025 and commence a pivotal Phase 3 trial in the second half of 2024[83] - The company has identified thyroid eye disease (TED) as the beachhead indication for its FcRn+ strategy, with ongoing clinical trials[82] - Future funding requirements will depend on factors such as clinical trial costs, regulatory review costs, and commercialization expenses for pacibekitug and other product candidates[129] Revenue and Sales Milestones - No revenue generated since inception, with no expectation of near-term product sales[103] - The global sales of four anti-IL-6 or anti-IL-6R antibodies exceeded 3.5billionin2023[80]−Thecompanyhasnotgeneratedanyrevenuefromproductsalesandexpectstorequiresubstantialadditionalcapitalforproductdevelopmentandcommercialization[126]ObligationsandRoyalties−ThecompanyisobligatedtopayPfizerupto3.5 billion in 2023[80] - The company has not generated any revenue from product sales and expects to require substantial additional capital for product development and commercialization[126] Obligations and Royalties - The company is obligated to pay Pfizer up to 128.0 million for development and regulatory milestones and up to 525.0millionforsalesmilestones[94]−ThecompanyisobligatedtopayLonzaaroyaltyinthelow−singledigitsontheNetSalesofproductscontainingpacibekitug[99]−ThecompanymayberequiredtopayPfizerupto525.0 million for sales milestones[94] - The company is obligated to pay Lonza a royalty in the low-single digits on the Net Sales of products containing pacibekitug[99] - The company may be required to pay Pfizer up to 128.0 million for development and regulatory milestones and up to 525.0millionforsalesmilestonesrelatedtopacibekitug[131]OtherIncomeandFutureFunding−Otherincome,netincreasedby525.0 million for sales milestones related to pacibekitug[131] Other Income and Future Funding - Other income, net increased by 8.4 million to $8.7 million for the first six months of 2024 compared to the same period in 2023[123] - The company will need additional capital to fund operations, potentially from equity or debt financings, collaborations, or licensing arrangements[124] Regulatory and Reporting Status - The company remains an emerging growth company and a smaller reporting company, with reduced disclosure obligations[143][144]