Avidity Biosciences Reports Financial Developments, Increased Cash and Cash Equivalents, and Strategic Initiatives

Avidity Biosciences, Inc. reported significant financial developments in its Form 10-Q for the third quarter of 2024, highlighting both revenue changes and strategic initiatives. As of September 30, 2024, the company had cash and cash equivalents of $370.2 million, a substantial increase from $185.1 million at the end of 2023. Marketable securities also rose sharply to $1.2 billion from $410.3 million, contributing to total current assets of $1.6 billion, up from $611.3 million.

In terms of revenue, Avidity Biosciences generated collaboration revenue of $2.3 million for Q3 2024, a decrease from $2.8 million in Q3 2023. For the nine months ended September 30, 2024, total revenue was $7.9 million, compared to $7.4 million in the same period of the previous year. The company reported a net loss of $80.4 million for Q3 2024, compared to a loss of $52.4 million in Q3 2023. The nine-month net loss also increased to $220.0 million from $151.8 million year-over-year.

Research and development expenses surged to $77.2 million in Q3 2024, up from $47.7 million in Q3 2023, reflecting increased costs associated with clinical trials and preclinical studies. Total operating expenses for Q3 2024 reached $100.5 million, compared to $61.4 million in the same quarter of the previous year. The increase in expenses was attributed to higher external costs related to clinical trials, including $29.0 million in manufacturing costs and $13.6 million in personnel costs.

Avidity's total stockholders' equity rose significantly to $1.5 billion as of September 30, 2024, from $500.8 million at the end of 2023, driven by substantial capital raises. The company completed several financing activities, including a private placement in March 2024 that generated $379.8 million and a public offering in June 2024 that yielded approximately $432.8 million. In August 2024, another public offering raised about $323.7 million.

Strategically, Avidity formed a new subsidiary, Avidity Biosciences Ireland Limited, in December 2023, and entered into a Research Collaboration and License Agreement with Bristol Myers Squibb in November 2023, which included an upfront payment of $100 million. The company is also advancing its clinical pipeline, with three programs in development for various muscular dystrophies, all of which have received regulatory designations from the FDA.

Despite the financial losses, Avidity maintains a strong liquidity position, with cash, cash equivalents, and marketable securities totaling approximately $1.6 billion as of September 30, 2024, which the company believes will fund operations for at least the next 12 months.