Adverum Biotechnologies Reports Improved Financial Performance, Cash Reserves, and Progress on Lead Product Candidate Ixo-vec

Adverum Biotechnologies, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in its financial position and operational performance compared to the previous fiscal period.

As of September 30, 2024, Adverum's cash and cash equivalents stood at $92.9 million, an increase from $75.0 million at the end of 2023. The company also reported short-term investments of $60.4 million, up from $21.5 million at the end of the previous year. Total current assets rose to $161.1 million from $102.8 million, contributing to a total asset increase to $234.4 million from $173.0 million. Stockholders' equity increased significantly to $144.1 million from $83.5 million, reflecting the successful completion of private placements that generated gross proceeds of $127.8 million in February 2024.

Adverum's revenue for the third quarter of 2024 was minimal, with license revenue of $1,000, compared to no revenue in the same quarter of 2023. For the nine months ended September 30, 2024, total license revenue was also $1,000, a decrease from $3.6 million in the prior year, primarily due to the absence of milestone payments from Lexeo Therapeutics. The company reported total operating expenses of $30.2 million for Q3 2024, down from $34.5 million in Q3 2023, and $77.9 million for the nine-month period, compared to $101.4 million in the same period of 2023. This reduction in expenses contributed to a narrower operating loss of $29.2 million for Q3 2024, compared to $34.5 million in Q3 2023.

Net losses before income taxes for Q3 2024 were $27.1 million, an improvement from $32.9 million in Q3 2023. The net loss for the nine months ended September 30, 2024, was $70.4 million, down from $93.5 million in the same period of 2023. The net loss per share for Q3 2024 was $(1.30), compared to $(3.26) in Q3 2023.

The company continues to focus on its lead product candidate, Ixo-vec, for the treatment of wet age-related macular degeneration (wet AMD). Recent trials have shown promising results, and the company plans to initiate Phase 3 pivotal trials in the first half of 2025. However, Adverum has not generated revenue from product sales since its inception and has an accumulated deficit of $990.2 million as of September 30, 2024.

Adverum's financial position is bolstered by its cash reserves, which are expected to fund operations into late 2025. However, the company anticipates the need for additional funding to support ongoing research and development activities. The company has also faced challenges related to public perception and regulatory scrutiny of gene therapy, which may impact the approval and commercialization of its product candidates.