Morphic Holding Inc (MORF) Reports Q3 2023 Loss of $36.2 Million, Ends Quarter with $725. ...
Morphic Holding Inc (NASDAQ:MORF) reported a net loss of $36.2 million for Q3 2023, compared to a net income of $30.0 million for the same quarter last year.
The company ended the quarter with $725.1 million in cash, cash equivalents, and marketable securities, sufficient to fund operations into the second half of 2027.
Morphic continues to show positive results in its EMERALD-1 Phase 2a and EMERALD-2 Phase 2b trials of MORF-057 in ulcerative colitis.
Revenue for Q3 2023 was $0 million, compared to $2.1 million for the same quarter last year, due to the conclusion of research and development collaborations with AbbVie and Janssen.
On November 3, 2023, Morphic Holding Inc (NASDAQ:MORF) released its earnings report for the third quarter of 2023. The biopharmaceutical company reported a net loss of $36.2 million or $0.73 per share, compared to a net income of $30.0 million or $0.78 per share for the same quarter last year.
Financial Highlights
Revenue for the quarter ended September 30, 2023, was $0 million, compared to $2.1 million for the same quarter last year. The decrease in revenue was due to the conclusion of the company's research and development collaborations with AbbVie and Janssen.
Research and development expenses for the quarter were $34.4 million, compared to $25.2 million for the same quarter last year. The increase was primarily due to higher manufacturing and development costs, along with higher pre-clinical and phase 2 clinical trial costs to support the company's lead product candidate, MORF-057.
General and administrative expenses were $10.4 million for the quarter, compared to $8.3 million for the same quarter last year. The increase was due to increased non-cash stock-based compensation expenses and higher payroll costs.
Corporate Highlights
Morphic continues to show positive results in its EMERALD-1 Phase 2a and EMERALD-2 Phase 2b trials of MORF-057 in ulcerative colitis. The company also continues late-stage preclinical work in the MORF-088 small molecule ?v?8 inhibitor program, with initiation of clinical trials anticipated in the first half of 2024.
As of September 30, 2023, Morphic had cash, cash equivalents, and marketable securities of $725.1 million, compared to $731.4 million as of June 30, 2023. Based on its current operating plan, Morphic believes its existing cash, cash equivalents, and marketable securities as of September 30, 2023, will be sufficient to fund operating expenses and capital expenditure requirements into the second half of 2027.
Looking Ahead
Morphic is developing MORF-057 as a selective, oral small molecule inhibitor of the ?4?7 integrin for patients with inflammatory bowel disease (IBD). The company's ongoing MORF-057 EMERALD Phase 2 Development Program continues to enroll patients as projected, with the primary endpoint of the EMERALD-2 trial expected to report in the first half of 2025.
Explore the complete 8-K earnings release (here) from Morphic Holding Inc for further details.
This article first appeared on GuruFocus.
