Climb Bio Reports $73.9 Million Net Loss for 2024, Highlights Acquisition and R&D Developments

Climb Bio, Inc. (formerly Eliem Therapeutics, Inc.), a clinical-stage biotechnology company, reported a net loss of $73.9 million for the year ended December 31, 2024, compared to a net loss of $35.1 million in 2023. This increase is primarily attributable to a $51.7 million charge for in-process research and development (IPR&D) expense related to the June 2024 acquisition of Tenet Medicines, Inc. The company's accumulated deficit increased to $229.9 million by year-end 2024 from $156.0 million at the end of 2023. Research and development expenses decreased slightly year-over-year, while general and administrative expenses decreased by 35.5%.

The company's acquisition of Tenet, a private biotechnology company, involved the issuance of 5,560,047 shares of Climb Bio common stock and a total cost of $52.8 million. A concurrent private placement of common stock raised approximately $120 million in gross proceeds. The company also incurred $3.3 million in restructuring costs related to the cessation of its U.K. operations and a workforce reduction. As of December 31, 2024, Climb Bio had 17 full-time and 1 part-time employee.

Climb Bio is advancing its lead product candidate, budoprutug, through clinical trials for primary membranous nephropathy (pMN), immune thrombocytopenia (ITP), and systemic lupus erythematosus (SLE). The company received FDA clearance for Phase 2 trials in pMN and Phase 1b/2a trials in ITP in 2025, and FDA clearance for a Phase 1b trial in SLE in 2024. Preclinical data on a subcutaneous formulation of budoprutug is expected in the first half of 2025. Additionally, the company is developing CLYM116, a preclinical-stage anti-APRIL monoclonal antibody, with preclinical data expected in the second half of 2025.

The company's cash, cash equivalents, and marketable securities totaled $212.5 million at the end of 2024. Based on current projections, Climb Bio anticipates that its existing resources will fund operations through 2027. However, the company acknowledges the need for additional funding to support ongoing and future research and development activities, and the potential commercialization of its product candidates. The company's financial statements include a discussion of critical accounting policies and estimates, including stock-based compensation and income taxes.

Climb Bio's 10-K filing also details various risk factors, including those related to its financial position, dependence on regulatory approvals, competition, reliance on third parties, intellectual property protection, and legal and regulatory compliance. The company highlights material weaknesses in its internal control over financial reporting and outlines its remediation efforts. The filing also includes information on its license agreements, including milestone and royalty payment obligations, and its corporate governance structure.