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MoonLake Immunotherapeutics(MLTX) - 2024 Q3 - Quarterly Report
MLTXMoonLake Immunotherapeutics(MLTX)2024-11-07 12:05

Financial Performance - Total current assets decreased to 512.32millionasofSeptember30,2024,from512.32 million as of September 30, 2024, from 514.17 million as of December 31, 2023, a decline of 0.36%[5]. - The net loss for the three months ended September 30, 2024, was 36.11million,comparedtoanetlossof36.11 million, compared to a net loss of 11.62 million in the same period of 2023, representing a 210.5% increase[6]. - Net loss for the nine months ended September 30, 2024, was 74.85million,comparedtoanetlossof74.85 million, compared to a net loss of 36.19 million for the same period in 2023, representing a 106.5% increase in losses[5]. - The company reported a net loss attributable to controlling interests shareholders of 35,390,337forthethreemonthsendedSeptember30,2024,comparedtoalossof35,390,337 for the three months ended September 30, 2024, compared to a loss of 9,426,049 for the same period in 2023[97]. - The net loss for the three months ended June 30, 2023, was 12,353,387,withatotalcomprehensivelossof12,353,387, with a total comprehensive loss of 12,353,387[9]. - The company incurred a loss of 74.8millionfortheninemonthsendedSeptember30,2024[61].Expenses−ResearchanddevelopmentexpensesforthethreemonthsendedSeptember30,2024,were74.8 million for the nine months ended September 30, 2024[61]. Expenses - Research and development expenses for the three months ended September 30, 2024, were 35.74 million, up 370.5% from 7.59millioninthesameperiodof2023[6].−TotaloperatingexpensesfortheninemonthsendedSeptember30,2024,reached7.59 million in the same period of 2023[6]. - Total operating expenses for the nine months ended September 30, 2024, reached 93.51 million, compared to 39.09millionforthesameperiodin2023,anincreaseof138.039.09 million for the same period in 2023, an increase of 138.0%[6]. - General and administrative expenses rose to 21.1 million for the nine months ended September 30, 2024, compared to 15.4millionin2023,markinga37.115.4 million in 2023, marking a 37.1% increase[178]. - Share-based compensation expense was 5.35 million for the nine months ended September 30, 2024, slightly down from 5.50millionin2023[5].−ThecompanyexpectstoincursignificantresearchanddevelopmentexpensesasitcontinuesthedevelopmentofSLKandexpandsitspipeline[157].CashFlowandLiquidity−Cashandcashequivalentsdecreasedto5.50 million in 2023[5]. - The company expects to incur significant research and development expenses as it continues the development of SLK and expands its pipeline[157]. Cash Flow and Liquidity - Cash and cash equivalents decreased to 375.66 million as of September 30, 2024, from 451.17millionasofDecember31,2023,areductionof16.7451.17 million as of December 31, 2023, a reduction of 16.7%[5]. - Net cash flow used in operating activities for the nine months ended September 30, 2024, was 68.11 million, up from 30.43millionin2023,indicatinga123.830.43 million in 2023, indicating a 123.8% increase in cash outflow[5]. - The company reported cash and cash equivalents of 375.7 million, with total cash, cash equivalents, and short-term marketable securities amounting to 493.9million,expectedtofundoperationsuntiltheendof2026[140].−ThecompanyanticipatesthatitsexistingcashandcashequivalentswillbesufficienttoadvancethedevelopmentofSLKinmultipleindications[163].ShareholderEquity−Totalshareholders′equitydecreasedto493.9 million, expected to fund operations until the end of 2026[140]. - The company anticipates that its existing cash and cash equivalents will be sufficient to advance the development of SLK in multiple indications[163]. Shareholder Equity - Total shareholders' equity decreased to 488.20 million as of September 30, 2024, from 495.68millionasofDecember31,2023,adeclineof1.0495.68 million as of December 31, 2023, a decline of 1.0%[5]. - The accumulated deficit rose to 189.99 million as of September 30, 2024, compared to 116.66millionasofDecember31,2023,anincreaseof62.7116.66 million as of December 31, 2023, an increase of 62.7%[5]. - The weighted-average number of Class A Ordinary Shares increased to 62.90 million for the three months ended September 30, 2024, from 53.52 million in the same period of 2023, a growth of 17.5%[6]. - The total number of Class A Ordinary Shares issued and outstanding as of September 30, 2024, was 63,046,025[82]. Investments and Acquisitions - The company executed a buyback of unvested shares, resulting in a treasury increase of 114,058[10]. - The company evaluates acquisitions to determine if they should be accounted for as a business combination or asset acquisition, with a notable transaction being the in-licensing agreement with Merck Healthcare KGaA for the Sonelokimab program[45]. - The milestone payments under the In-License Agreement with MHKDG could reach up to €299.6 million ($335.2 million) based on specific regulatory and commercialization milestones[121]. Future Outlook - The company expects to continue incurring significant expenses and operating losses for at least the next three years as it develops SLK and prepares for commercial launches[60]. - The company plans to commence additional Phase 3 trials for SLK in juvenile HS and Phase 2 trials in palmoplantar pustulosis (PPP) and axial spondyloarthritis (axSpA) around year-end 2024[137]. - The company has not generated any revenue from product sales and relies on the successful development and commercialization of SLK for future profitability[139]. Legal and Compliance - The company is not currently subject to any material legal proceedings[202]. - There have been no material changes to the risk factors included in the Annual Report[203].