Precision BioSciences Inc (DTIL) Reports Q3 2023 Financial Results
Revenues for Q3 2023 were $13.1 million, a significant increase from $7.4 million in Q3 2022.
Net loss for the quarter was $8.1 million, or $(0.07) per share, including $4.0 million income from discontinued operations.
The company completed a strategic transaction with Imugene for azer-cel in cancer, receiving upfront cash and equity consideration valued at $21 million.
Precision BioSciences Inc (NASDAQ:DTIL) expects its existing cash and cash equivalents to fund its operating expenses and capital expenditure requirements through the end of 2025.
On November 7, 2023, Precision BioSciences Inc (NASDAQ:DTIL), an advanced gene editing company, announced its financial results for the third quarter ended September 30, 2023. The company reported a significant increase in its revenues, which rose to $13.1 million, up from $7.4 million in the same period in 2022. The increase in revenue was primarily due to an increase of $4.0 million in revenue recognized under the Novartis Agreement and an increase of $1.7 million in revenue recognized under the Prevail Agreement.
Financial Highlights
As of September 30, 2023, Precision BioSciences Inc (NASDAQ:DTIL) had approximately $122.2 million in cash and cash equivalents. The company expects that its existing cash and cash equivalents, expected operational receipts, including upfront consideration received from Imugene, operational efficiencies gained from divestment of the CAR T business, availability of the ATM facility, and available credit will be sufficient to fund its operating expenses and capital expenditure requirements through the end of 2025.
Research and development expenses were $15.9 million for the quarter ended September 30, 2023, as compared to $11.8 million for the same period in 2022. The increase of $4.1 million was primarily due to $5.1 million in expenses related to initiating CTA/IND-enabling studies for the PBGENE-HBV development program planned for CTA/IND submission in 2024.
General and administrative expenses were $9.6 million for the quarter ended September 30, 2023, as compared to $10.3 million for the same period in 2022. The decrease of $0.7 million was primarily due to a decrease in share-based compensation expense offset by an increase in information technology expenses.
Strategic Transaction with Imugene
In August 2023, Precision BioSciences Inc (NASDAQ:DTIL) completed a strategic transaction with Imugene Limited for the companys lead allogeneic chimeric antigen receptor (CAR) T candidate for cancer, azercabtagene zapreleucel (azer-cel). In exchange for global rights to azer-cel for cancer, Precision received upfront cash and equity consideration valued at $21 million. In addition, Precision is eligible for a potential $8 million near-term milestone payment, up to $198 million in additional milestone payments and double-digit royalties on net sales of azer-cel.
Business Update
During the quarter, Precision BioSciences Inc (NASDAQ:DTIL) made significant progress in its in vivo gene editing pipeline. The company is developing PBGENE-HBV for the treatment of patients with chronic hepatitis B and expects to submit a clinical trial application (CTA) and/or investigational new drug (IND) application in 2024. Furthermore, the company announced that it will pursue development of PBGENE-PMM as a potential first-in-class opportunity for treatment of m.3243-associated primary mitochondrial myopathy (PMM), with a target to submit a CTA and/or IND in 2025.
The company's net loss for the quarter was $8.1 million, or $(0.07) per share, including $4.0 million income from discontinued operations. This compares to a net loss of $23.9 million, or $(0.22) per share, including a $8.3 million loss from discontinued operations for the same period in 2022.
Explore the complete 8-K earnings release (here) from Precision BioSciences Inc for further details.
This article first appeared on GuruFocus.
