Capricor Therapeutics, Inc. reported significant financial results for the third quarter and the nine months ended September 30, 2024, reflecting a decline in revenue and increased operating losses compared to the same periods in 2023. For the third quarter of 2024, the company generated revenue of $2.3 million, a decrease from $6.2 million in the prior year. Total revenue for the nine months ended September 30, 2024, was approximately $11.1 million, down from $13.1 million in 2023. The decline in revenue is attributed to reduced clinical development income, primarily from the U.S. Distribution Agreement with Nippon Shinyaku for the cell therapy product, deramiocel.

Operating expenses for the third quarter of 2024 rose to $15.3 million, compared to $13.1 million in the same quarter of 2023. For the nine-month period, total operating expenses increased to $46.0 million from $35.9 million in the previous year. The increase in expenses was driven by higher research and development (R&D) costs, which amounted to $11.8 million in Q3 2024, up from $10.0 million in Q3 2023, and $35.4 million for the nine months, compared to $26.5 million in 2023. Key factors contributing to the rise in R&D expenses included increased personnel costs due to headcount growth and expanded research activities related to the exosome platform.

Capricor's loss from operations for the third quarter of 2024 was $(13.0) million, compared to $(6.9) million in the same quarter of 2023. The net loss for the third quarter was $(12.6) million, up from $(6.4) million in the prior year. For the nine months ended September 30, 2024, the net loss was $(33.4) million, compared to $(21.5) million in 2023. The accumulated deficit as of September 30, 2024, stood at approximately $(192.7) million.

The company has made strategic moves to bolster its financial position, including a private placement with Nippon Shinyaku, raising $15.0 million by issuing shares at $5.36 each. Additionally, Capricor completed an underwritten public offering in October 2024, generating approximately $86.3 million in gross proceeds. As of September 30, 2024, Capricor reported cash, cash equivalents, and marketable securities totaling approximately $85.0 million, a significant increase from $39.5 million at the end of 2023.

Capricor continues to focus on the development of deramiocel for Duchenne muscular dystrophy (DMD) and is advancing its exosome technology platform. The company is also preparing for a Biologics License Application (BLA) submission for deramiocel, expected by year-end 2024.