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Century Therapeutics(IPSC) - 2024 Q3 - Quarterly Report
IPSCCentury Therapeutics(IPSC)2024-11-05 14:05

Financial Position - The company reported an accumulated deficit of 746.3millionasofSeptember30,2024,primarilyduetoresearchanddevelopmentexpensesandgeneraladministrativecosts[149].−Thecompanyhasraisedapproximately746.3 million as of September 30, 2024, primarily due to research and development expenses and general administrative costs [149]. - The company has raised approximately 666 million in net proceeds from equity securities sales since inception, with cash and cash equivalents of 52.6millionandinvestmentsof52.6 million and investments of 192.1 million as of September 30, 2024 [150]. - The company anticipates needing to raise additional financing in the future to fund operations, including preclinical studies and clinical trials for various product candidates [159]. - The company expects to extend its cash runway into the second half of 2026 based on current business plans and available resources [157]. - As of September 30, 2024, the company had cash, cash equivalents, and restricted cash totaling 52.6million,alongwithinvestmentsamountingto52.6 million, along with investments amounting to 192.1 million [216]. - The company is classified as a "smaller reporting company," with a market value of stock held by non-affiliates below 700.0millionandannualrevenueunder700.0 million and annual revenue under 100.0 million [212]. - The company will remain an emerging growth company until the earliest of December 31, 2026, or achieving total annual gross revenue of at least 1.235billion[211].−Futuredisruptionsinfinancialinstitutionscouldadverselyaffectthecompany′saccesstocashandcashequivalents[217].ResearchandDevelopment−TheongoingELiPSE−1clinicaltrialforCNTY−101hastreatedatotalof20participants,with19evaluableforpreliminaryefficacyasofOctober15,2024[151].−ThecompanyplanstoexpandtheclinicaldevelopmentofCNTY−101intoadditionalautoimmunediseaseindications,withmultipleclinicalsitesactivatedintheU.S.andplanstoexpandtoselectEuropeancountries[152].−AstrategicinternalportfolioprioritizationinJanuary2023ledtothedeprioritizationofCNTY−103andafocusonCNTY−102andCNTY−107,whicharebelievedtohavehighermarketpotential[153].−ThecompanycompletedaprivateplacementofferinginApril2024,raising1.235 billion [211]. - Future disruptions in financial institutions could adversely affect the company's access to cash and cash equivalents [217]. Research and Development - The ongoing ELiPSE-1 clinical trial for CNTY-101 has treated a total of 20 participants, with 19 evaluable for preliminary efficacy as of October 15, 2024 [151]. - The company plans to expand the clinical development of CNTY-101 into additional autoimmune disease indications, with multiple clinical sites activated in the U.S. and plans to expand to select European countries [152]. - A strategic internal portfolio prioritization in January 2023 led to the deprioritization of CNTY-103 and a focus on CNTY-102 and CNTY-107, which are believed to have higher market potential [153]. - The company completed a private placement offering in April 2024, raising 60 million in gross proceeds to support increased research and development activities [154]. - The company incurred 42.6millioninexpensesundertheFCDICollaborationAgreementfrominceptionthroughSeptember30,2024[170].−Thecompanyexpectstoincuradditionallossesintheforeseeablefutureasitexpandsresearchanddevelopmentefforts[197].RevenueandExpenses−CollaborationrevenueforthethreemonthsendedSeptember30,2024,was42.6 million in expenses under the FCDI Collaboration Agreement from inception through September 30, 2024 [170]. - The company expects to incur additional losses in the foreseeable future as it expands research and development efforts [197]. Revenue and Expenses - Collaboration revenue for the three months ended September 30, 2024, was 0.8 million, an increase from 0.1millioninthesameperiodof2023,reflectingachangeof0.1 million in the same period of 2023, reflecting a change of 0.7 million [180]. - For the nine months ended September 30, 2024, collaboration revenue was 2.4million,comparedto2.4 million, compared to 2.0 million in 2023, indicating a change of 0.4million[188].−ResearchanddevelopmentexpensesforthethreemonthsendedSeptember30,2024,were0.4 million [188]. - Research and development expenses for the three months ended September 30, 2024, were 27.2 million, up from 22.8millionin2023,representinganincreaseof22.8 million in 2023, representing an increase of 4.4 million [182]. - Research and development expenses for the nine months ended September 30, 2024, totaled 77.9million,anincreaseof77.9 million, an increase of 7.5 million from 70.4millionin2023[189].−TotaloperatingexpensesfortheninemonthsendedSeptember30,2024,were70.4 million in 2023 [189]. - Total operating expenses for the nine months ended September 30, 2024, were 103.3 million, a slight decrease from 104.8millionin2023,showingareductionof104.8 million in 2023, showing a reduction of 1.5 million [187]. - General and administrative expenses were 25.4millionfortheninemonthsendedSeptember30,2024,downfrom25.4 million for the nine months ended September 30, 2024, down from 26.1 million for the same period in 2023 [191]. - Personnel-related expenses decreased by 0.8million,includinga0.8 million, including a 0.3 million decrease in salary and benefits, and a 0.5milliondecreaseinstockcompensation[190].−ThenetlossforthethreemonthsendedSeptember30,2024,was0.5 million decrease in stock compensation [190]. - The net loss for the three months ended September 30, 2024, was 31.2 million, an improvement from a net loss of 32.7millioninthesameperiodof2023,reflectingachangeof32.7 million in the same period of 2023, reflecting a change of 1.5 million [180]. - Interest income increased to 10.1millionfortheninemonthsendedSeptember30,2024,comparedto10.1 million for the nine months ended September 30, 2024, compared to 9.2 million for the same period in 2023, due to higher interest rates [193]. - The company recognized interest income of 3.3millionforthethreemonthsendedSeptember30,2024,comparedto3.3 million for the three months ended September 30, 2024, compared to 3.5 million in 2023 [185]. Investments and Acquisitions - The acquisition of Clade Therapeutics is expected to enhance the company's Allo-Evasion technology and expand its pipeline with three additional preclinical-stage programs [154]. - The company raised approximately 60millionfromaprivateplacementof15,873,011sharesat60 million from a private placement of 15,873,011 shares at 3.78 per share in April 2024 [196]. - Cash provided by investing activities was 16.9millionfortheninemonthsendedSeptember30,2024,downfrom16.9 million for the nine months ended September 30, 2024, down from 42.5 million for the same period in 2023 [201]. Market and Economic Conditions - The company has no material exposure to foreign currency fluctuations and does not engage in hedging activities [215]. - Inflation has not had a material effect on the company's financial statements, although it has increased costs related to labor and laboratory consumables [218]. - The company’s primary market risk exposure is interest income sensitivity, which is influenced by changes in U.S. interest rates [216]. - The company reported no material changes to its critical accounting policies during the nine months ended September 30, 2024 [214]. - The company has opted to use the extended transition period for complying with new or revised accounting standards [210].