Cue Biopharma, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, expenses, and strategic developments compared to the previous fiscal period.

For Q3 2024, Cue Biopharma generated collaboration revenue of $3.3 million, an increase from $2.1 million in Q3 2023. For the nine months ended September 30, 2024, collaboration revenue reached $7.7 million, up from $3.7 million in the same period last year. This growth was primarily driven by increased revenue from the Ono Pharmaceutical collaboration, which accounted for $3.4 million in Q3 2024, compared to $1.9 million in Q3 2023.

Despite the revenue increase, the company reported a net loss of $8.7 million for Q3 2024, an improvement from a net loss of $11.0 million in Q3 2023. For the nine-month period, the net loss was $31.2 million, down from $37.3 million in the prior year. The reduction in losses was attributed to decreased operating expenses, which totaled $12.2 million in Q3 2024, down from $13.5 million in Q3 2023, and $39.6 million for the nine months ended September 30, 2024, compared to $42.0 million in the same period of 2023.

Research and development expenses for Q3 2024 were $9.4 million, a slight decrease from $9.9 million in Q3 2023. For the nine months, R&D expenses totaled $29.1 million, down from $29.9 million in the previous year. General and administrative expenses also decreased, amounting to $2.9 million in Q3 2024, compared to $3.6 million in Q3 2023.

As of September 30, 2024, Cue Biopharma had cash and cash equivalents of $32.4 million, a decline from $48.5 million at the end of 2023. The company has incurred recurring losses and negative cash flows from operations since inception, raising concerns about its ability to continue as a going concern within one year of the financial statement issuance date. In response, the company is exploring additional capital through equity offerings and collaborations.

Strategically, Cue Biopharma underwent an organizational restructuring in July 2024, resulting in a 25% reduction in its workforce to prioritize its autoimmune programs, including CUE-401 and CUE-501. The company also entered into an underwriting agreement for a public offering of 11.6 million shares and accompanying warrants, with net proceeds of approximately $10.8 million expected from the offering.

Overall, while Cue Biopharma has made progress in revenue generation and reduced its net losses, it continues to face challenges related to cash flow and operational sustainability, necessitating further capital raising efforts.