Oruka Therapeutics, Inc. (formerly ARCA biopharma, Inc.) reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on developing biologics for inflammatory skin diseases, has not generated any revenue since its inception on February 6, 2024, and does not anticipate revenue generation in the near future.

As of September 30, 2024, Oruka had cash and cash equivalents totaling $410.9 million, a substantial increase attributed to financing activities, including a merger with ARCA and a PIPE financing that raised approximately $188.7 million. The merger, completed on August 29, 2024, involved a reverse stock split of 1-for-12 effective September 3, 2024, and resulted in Oruka becoming a wholly owned subsidiary of ARCA. The pre-closing financing raised about $275 million, with transaction costs of $20.5 million recorded as a reduction to additional paid-in capital.

For the three months ended September 30, 2024, Oruka reported total operating expenses of $29.4 million, leading to a net loss of $28.6 million for the quarter. This loss represents an increase from the previous quarter's loss of $22.2 million, reflecting escalating research and development costs as the company advances its product candidates. Cumulatively, the net loss from inception to September 30, 2024, reached $57.9 million, with net cash used in operating activities amounting to $39 million during the same period.

Research and development expenses for the quarter were $25.7 million, driven by costs associated with the development of its lead programs, ORKA-001 and ORKA-002, which target IL-23 and IL-17A/F, respectively. The company anticipates these expenses will continue to rise as it prepares for upcoming clinical trials, with a Phase 1 trial for ORKA-001 expected to begin in Q1 2025.

General and administrative expenses for the quarter totaled $3.8 million, reflecting costs related to personnel and professional services. The company expects these expenses to increase due to anticipated growth in personnel and compliance costs associated with being a public company.

Oruka's financial position remains robust, with total stockholders' equity reported at $342.4 million as of September 30, 2024. However, the company faces uncertainty regarding its ability to raise additional capital, which is critical for sustaining its research and development efforts and overall operations. The management projects that existing cash will fund operations for at least the next twelve months, but significant losses are expected to continue until successful commercialization of its product candidates.