Annexon, Inc., a clinical-stage biopharmaceutical company based in Brisbane, California, reported significant financial developments in its recent 10-Q filing for the quarter ending September 30, 2024. The company focuses on developing complement medicines for autoimmune and neurodegenerative diseases, with key product candidates including ANX005 for Guillain-Barré Syndrome (GBS) and ANX007 for geographic atrophy (GA).

As of September 30, 2024, Annexon had total cash and cash equivalents of $79.5 million, a substantial decrease from $225.1 million at the end of 2023. However, short-term investments surged to $260.6 million from $34.6 million, resulting in total current assets of $344.3 million, up from $263.9 million. The company’s total assets increased to $378.8 million, compared to $297.7 million at the end of the previous fiscal year. Total stockholders’ equity also rose to $331.6 million from $250.6 million.

For the three months ended September 30, 2024, Annexon reported operating expenses of $39.4 million, an increase of 13% from $34.8 million in the same period of 2023. Research and development expenses rose to $30.1 million, up 8% year-over-year, primarily due to increased consulting and professional services costs. The net loss for the quarter was $34.8 million, a 7% increase from $32.5 million in the prior year, with a net loss per share of $(0.25), an improvement from $(0.43) in the same quarter of 2023.

For the nine months ended September 30, 2024, total operating expenses decreased by 11% to $101.6 million, driven by a significant reduction in research and development costs, which fell 16% to $76.1 million. The net loss for this period was $89.6 million, down 16% from $106.3 million in 2023. The company’s cash used in operating activities also decreased to $82.0 million from $97.7 million year-over-year.

Strategically, Annexon raised approximately $116.8 million in June 2024 through the sale of common stock and pre-funded warrants, and an additional $117.0 million in December 2023. The company has not yet made sales under its 2024 ATM program, which allows for a maximum offering of $100 million.

As of September 30, 2024, Annexon had 84 full-time employees and continues to focus on advancing its clinical programs, particularly for ANX005 and ANX007, while managing the financial implications of ongoing research and development efforts. The company anticipates continued losses and negative cash flows as it seeks to achieve regulatory milestones and secure additional funding for future operations.