Connect Biopharma Holdings Limited, a clinical-stage biopharmaceutical company, reported a net loss of $15.6 million for the year ended December 31, 2024, compared to a net loss of $62.1 million in 2023. The company's license and collaboration revenues totaled $26.0 million in 2024, primarily due to an upfront license fee, milestone payments, and cost reimbursements under an exclusive agreement with Simcere Pharmaceutical Co., Ltd. for the development and commercialization of rademikibart in Greater China. No such revenue was generated in 2023.
Research and development expenses decreased to $29.3 million in 2024 from $53.0 million in 2023. This decrease stemmed from the completion of global Phase 2b trials for rademikibart in asthma and China pivotal trials in atopic dermatitis in 2023, and higher manufacturing costs incurred in 2023. General and administrative expenses increased to $19.2 million in 2024 from $16.1 million in 2023, primarily due to costs associated with executive departures and higher professional fees. The company anticipates increased research and development expenses in 2025 due to the initiation of two Phase 2 trials for rademikibart.
Significant strategic developments during the year included the appointment of new U.S.-based leadership, the transfer of rademikibart's initial manufacturing process to a U.S. contract manufacturing organization (CMO), and the relocation of corporate headquarters to San Diego, California. The company also voluntarily elected to become a domestic filer with the SEC. As of December 31, 2024, Connect Biopharma had 62 full-time employees, with 35 in research and development and 27 in general and administrative roles.
Connect Biopharma's cash, cash equivalents, and short-term investments totaled $93.7 million as of December 31, 2024. Management projects that these resources will be sufficient to meet anticipated cash requirements for at least one year from the filing date of the 10-K. The company's net cash used in operating activities decreased to $23.6 million in 2024 from $47.7 million in 2023, primarily due to a decrease in net loss. The company anticipates future funding needs will depend on various factors, including clinical trial progress, regulatory approvals, manufacturing costs, and commercialization expenses. The company plans to finance future needs through equity offerings, debt financings, collaborations, and other strategic transactions.
The company's 10-K filing also details numerous risk factors, including those related to its limited operating history, reliance on third parties, the inherent uncertainties of clinical drug development, regulatory approvals, intellectual property protection, competition, and the complexities of operating in both the U.S. and the PRC. The filing includes extensive disclosures regarding compliance with U.S. and PRC regulations, including those related to data security, privacy, and export controls. The company notes that it is not currently party to any material legal proceedings.
About Connect Biopharma Holdings Ltd
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