Climb Bio, Inc. (formerly Eliem Therapeutics, Inc.) reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a substantial increase in operating expenses, which totaled $11.7 million for the three months ended September 30, 2024, compared to $5.0 million for the same period in 2023. For the nine months ended September 30, 2024, total operating expenses reached $71.1 million, up from $35.2 million in the prior year. This increase is primarily attributed to higher research and development costs, which surged to $60.0 million for the nine-month period, driven by the acquisition of in-process research and development (IPR&D) related to its lead product candidate, budoprutug.

The net loss for the third quarter of 2024 was $8.9 million, a 124.2% increase from the $4.0 million loss reported in the same quarter of 2023. For the nine months ended September 30, 2024, the net loss was $65.5 million, compared to $31.5 million for the same period in 2023. The accumulated deficit increased to $221.5 million as of September 30, 2024, up from $156.0 million at the end of 2023.

In terms of cash flow, Climb Bio reported net cash used in operating activities of $10.0 million for the nine months ended September 30, 2024, a decrease from $19.7 million in the prior year. The company raised $130.7 million in net cash from financing activities during the same period, primarily through a private placement that generated $119.7 million.

Strategically, Climb Bio completed the acquisition of Tenet Medicines, Inc. on June 27, 2024, for a total consideration of approximately $52.8 million, which included $51.7 million allocated to IPR&D that was expensed due to its lack of alternative future use. The acquisition was part of a broader shift in focus from neuronal excitability disorders to immune-mediated diseases, leading to the cessation of operations in the U.K. and a workforce reduction of approximately 55%.

The company is advancing its lead product candidate, budoprutug, an anti-CD19 monoclonal antibody targeting conditions such as primary membranous nephropathy, immune thrombocytopenia, and systemic lupus erythematosus. The FDA cleared the Investigational New Drug (IND) application for budoprutug in October 2024, allowing the initiation of a Phase 1b clinical trial for active lupus. The company plans to conduct additional trials for budoprutug in 2025.

As of September 30, 2024, Climb Bio had cash, cash equivalents, and marketable securities totaling $217.9 million, which the company believes will fund operations through 2027, although it anticipates the need for additional financing in the future.