Eledon Pharmaceuticals, Inc., a clinical-stage biotechnology company focused on therapies targeting the CD40 Ligand pathway for organ transplantation and amyotrophic lateral sclerosis (ALS), reported significant financial improvements in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved a net income of $76.97 million for the three months ended September 30, 2024, a substantial turnaround from a net loss of $9.91 million in the same period of the previous year. This shift was primarily driven by a gain related to changes in the fair value of warrant liabilities and financial instruments, which amounted to $96.4 million.

For the nine months ended September 30, 2024, Eledon reported a net income of $8.43 million, compared to a net loss of $86.44 million for the same period in 2023. The company’s total operating expenses increased to $45.88 million for the nine months, up from $32.66 million in the prior year, reflecting heightened investment in research and development activities, which rose to $34 million from $23.2 million.

Eledon's total current assets as of September 30, 2024, were $81.51 million, significantly higher than $56.13 million at the end of 2023. Cash and cash equivalents also increased to $6.75 million from $4.61 million, while short-term investments rose to $71.44 million from $46.49 million. The company’s total assets reached $114.58 million, up from $89.07 million at the end of the previous fiscal year.

The company has been actively raising capital to support its clinical development efforts. In October 2024, Eledon completed an underwritten offering of 18.36 million shares at $3.65 per share, generating gross proceeds of $85 million. The net proceeds are intended to advance the company’s pipeline and for general corporate purposes. Eledon has also engaged in multiple private placements throughout 2024, raising significant funds to support its operations.

Despite these positive developments, Eledon continues to face challenges, including an accumulated deficit of $311 million as of September 30, 2024, and the need for ongoing financing to sustain its clinical programs. The company has not yet generated revenue from product sales and anticipates incurring losses in the foreseeable future as it continues to invest heavily in research and development.

Eledon’s lead compound, Tegoprubart, is currently in clinical trials, with the company focusing on kidney transplantation and ALS, while discontinuing its IgAN program. The company’s strategic direction includes optimizing the clinical and commercial value of Tegoprubart, which has shown promising results in early trials.