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AlloVir(ALVR) - 2024 Q3 - Quarterly Report
ALVRAlloVir(ALVR)2024-11-12 21:00

Clinical Trials and Research Activities - The company discontinued three Phase 3 trials of posoleucel in December 2023 due to futility analyses indicating the studies were unlikely to meet primary endpoints[98] - The company paused development of ALVR106 and ALVR107 pending the outcome of strategic alternatives review[101] - Research and development expenses decreased by 34.4millionto34.4 million to (0.2) million for the three months ended September 30, 2024, compared to 34.2millionforthesameperiodin2023,primarilyduetothediscontinuationofclinicaltrialsandresearchactivities[128]−Researchanddevelopmentexpensesdecreasedby34.2 million for the same period in 2023, primarily due to the discontinuation of clinical trials and research activities[128] - Research and development expenses decreased by 87.7 million to 12.0millionfortheninemonthsendedSeptember30,2024,comparedto12.0 million for the nine months ended September 30, 2024, compared to 99.7 million for the same period in 2023, primarily due to the discontinuation of clinical trials and research activities and a 5.6milliongainonleasetermination[133]−Thecompanyexpectsresearchanddevelopmentexpensestocontinuetodecreasesignificantlyduetothediscontinuationofclinicaltrialsandresearchactivities,andwillincurcostsassociatedwiththeproposedMergerwithKalaris[140]−The5.6 million gain on lease termination[133] - The company expects research and development expenses to continue to decrease significantly due to the discontinuation of clinical trials and research activities, and will incur costs associated with the proposed Merger with Kalaris[140] - The 29.6 million decrease in cash used in operating activities for the nine months ended September 30, 2024 compared to the same period in 2023 was a result of the discontinuation of the company's three Phase 3 registrational trials[147] - The company expects research and development and general and administrative costs to increase in connection with planned research and development activities[141] Workforce Reduction and Restructuring - The company implemented a workforce reduction plan, cutting approximately 95% of its employees, primarily completed by April 15, 2024[99] - General and administrative expenses decreased by 6.9millionto6.9 million to 5.9 million for the three months ended September 30, 2024, compared to 12.8millionforthesameperiodin2023,primarilyduetoworkforcereductionanda12.8 million for the same period in 2023, primarily due to workforce reduction and a 1.5 million gain on lease remeasurement[129] - Restructuring costs were 0.1millionforthethreemonthsendedSeptember30,2024,primarilyduetoseveranceandemployeeterminationcosts[130]−Generalandadministrativeexpensesdecreasedby0.1 million for the three months ended September 30, 2024, primarily due to severance and employee termination costs[130] - General and administrative expenses decreased by 14.1 million to 23.7millionfortheninemonthsendedSeptember30,2024,comparedto23.7 million for the nine months ended September 30, 2024, compared to 37.8 million for the same period in 2023, primarily due to workforce reduction and a 3.3milliongainonleaseremeasurement[134]−Restructuringcostswere3.3 million gain on lease remeasurement[134] - Restructuring costs were 10.1 million for the nine months ended September 30, 2024, primarily due to severance and employee termination costs[135] Financial Performance and Cash Flow - The company reported a net loss of 40.5millionfortheninemonthsendedSeptember30,2024,withanaccumulateddeficitof40.5 million for the nine months ended September 30, 2024, with an accumulated deficit of 696.7 million[106] - The company had 121.9millionincash,cashequivalents,andshort−terminvestmentsasofSeptember30,2024,withaprojectedrunwayofatleasttwelvemonths[109]−Totalotherincome(loss),netdecreasedby121.9 million in cash, cash equivalents, and short-term investments as of September 30, 2024, with a projected runway of at least twelve months[109] - Total other income (loss), net decreased by 1.1 million to 1.6millionforthethreemonthsendedSeptember30,2024,comparedto1.6 million for the three months ended September 30, 2024, compared to 2.7 million for the same period in 2023, primarily due to a decrease in accretion of discounts on short-term investments[131] - Total other income (loss), net decreased by 1.2millionto1.2 million to 5.3 million for the nine months ended September 30, 2024, compared to 6.8millionforthesameperiodin2023,primarilyduetoadecreaseinaccretionofdiscountsonshort−terminvestments[136]−Thecompanyhascash,cashequivalents,andshort−terminvestmentsof6.8 million for the same period in 2023, primarily due to a decrease in accretion of discounts on short-term investments[136] - The company has cash, cash equivalents, and short-term investments of 121.9 million as of September 30, 2024, which is expected to fund operations for at least twelve months, but there is substantial doubt about the company's ability to continue as a going concern[139] - Net cash used in operating activities was 64.1millionfortheninemonthsendedSeptember30,2024,reflectinganetlossof64.1 million for the nine months ended September 30, 2024, reflecting a net loss of 40.5 million and a decrease in net operating assets and liabilities of 29.6million[146]−Netcashprovidedbyinvestingactivitieswas29.6 million[146] - Net cash provided by investing activities was 90.0 million for the nine months ended September 30, 2024, primarily due to investment maturities[148] - Net cash provided by financing activities was 0.0millionfortheninemonthsendedSeptember30,2024,primarilyduetoproceedsfromtheissuanceofstockundertheemployeestockpurchaseplan[149]−Netcashusedinoperatingactivitieswas0.0 million for the nine months ended September 30, 2024, primarily due to proceeds from the issuance of stock under the employee stock purchase plan[149] - Net cash used in operating activities was 93.7 million for the nine months ended September 30, 2023, reflecting a net loss of 130.7million[146]−Netcashprovidedbyinvestingactivitieswas130.7 million[146] - Net cash provided by investing activities was 12.8 million for the nine months ended September 30, 2023, due to investment maturities of 128.8million,partiallyoffsetbythepurchaseofinvestmentsof128.8 million, partially offset by the purchase of investments of 116.0 million[148] - Net cash provided by financing activities was 70.5millionfortheninemonthsendedSeptember30,2023,dueto70.5 million for the nine months ended September 30, 2023, due to 70.2 million in net proceeds from the issuance of common stock in a public offering[150] Mergers and Acquisitions - The company entered into a merger agreement with Kalaris Therapeutics on November 7, 2024, with Kalaris continuing as a wholly-owned subsidiary[100] Revenue and Product Development - The company has no approved product candidates and has not generated any revenue from product sales[102] Capital Raising Activities - The company raised 292.0millioninnetproceedsfromitsIPOinAugust2020[103]−Thecompanyraised292.0 million in net proceeds from its IPO in August 2020[103] - The company raised 126.4 million in net proceeds from a securities purchase agreement in July 2022[104] - The company raised $70.2 million in net proceeds from a public offering in June 2023[105] Contingent Payments and Royalties - The company may incur potential contingent payments upon achievement of clinical, regulatory, and commercial milestones, or be required to make royalty payments under license agreements[151] Regulatory and Reporting Considerations - The company is an emerging growth company and may rely on exemptions and reduced reporting requirements provided by the JOBS Act[154]