Denali Therapeutics Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company, focused on developing therapeutics for neurodegenerative diseases, experienced a net loss of $107.2 million for the third quarter, compared to a loss of $99.4 million in the same period of 2023. For the nine months ended September 30, 2024, the net loss escalated to $308.0 million, a substantial increase from $25.8 million in the prior year.
The company's collaboration revenue was notably absent, with no revenue recorded for both the three and nine months ended September 30, 2024, compared to $1.3 million and $330.5 million, respectively, in the same periods of 2023. This decline reflects the termination of the Biogen collaboration agreement concerning the ATV:Abeta program in July 2024, which eliminated future milestone or royalty payments.
Total operating expenses for the third quarter of 2024 were $123.2 million, up from $115.1 million in the previous year. Research and development expenses increased to $98.2 million from $89.7 million, driven by costs associated with various clinical programs, including the eIF2B and ETV:IDS programs. However, total operating expenses for the nine months decreased to $372.0 million from $394.7 million in 2023, primarily due to reduced external expenses following the divestiture of preclinical small molecule programs.
As of September 30, 2024, Denali's cash, cash equivalents, and marketable securities totaled $1.28 billion, a decrease from $1.06 billion at the end of 2023. The company raised approximately $499.3 million in a private placement in February 2024, which included the issuance of pre-funded warrants. This funding is intended to support ongoing research and development activities and expand proprietary technology.
The company’s total assets increased to $1.45 billion from $1.15 billion at the end of 2023, while total stockholders' equity rose to $1.32 billion from $1.03 billion. The accumulated deficit reached $1.42 billion as of September 30, 2024.
Denali continues to face challenges typical of clinical-stage biopharmaceutical companies, including the need for additional funding, reliance on third-party collaborations, and the inherent risks associated with drug development. The company has not generated any product revenue since its inception and anticipates significant losses as it advances its research and development efforts.
About Denali Therapeutics Inc.
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