Generation Bio Reports Mixed Financial Results, Decrease in Cash and Cash Equivalents in Latest Quarter

Generation Bio Co. reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decrease in cash and cash equivalents, which fell to $21.7 million from $66.4 million at the end of 2023. Total current assets also decreased to $191.3 million from $272.6 million, while total assets dropped to $248.8 million from $374.8 million. Despite a reduction in total liabilities to $144.3 million from $171.6 million, total stockholders’ equity fell sharply to $104.4 million from $203.1 million.

Collaboration revenue surged to $7.6 million for the three months ended September 30, 2024, compared to $2.1 million for the same period in 2023. For the nine-month period, collaboration revenue reached $15.7 million, up from $3.0 million year-over-year. However, total operating expenses for the three months decreased to $25.4 million from $33.5 million, while for the nine months, they increased to $134.5 million from $103.2 million. The loss from operations improved to $(17.9 million) for the quarter, down from $(31.4 million) in 2023, but the nine-month loss increased to $(118.8 million) from $(100.1 million).

Net losses also showed a mixed trend, with a reduction to $(15.3 million) for the three months ended September 30, 2024, compared to $(28.3 million) in 2023. However, the nine-month net loss increased to $(110.3 million) from $(91.4 million). The net loss per share for the quarter improved to $(0.23) from $(0.43), while for the nine months, it worsened to $(1.66) from $(1.43).

The company undertook a strategic reorganization in November 2023, resulting in a workforce reduction of approximately 40%, which contributed to decreased personnel-related costs in both research and development and general and administrative expenses. The restructuring also led to a non-cash charge of $6.2 million related to the termination of the Seyon Lease, which was completed in January 2024.

In terms of strategic developments, Generation Bio entered into a Collaboration and License Agreement with Moderna in March 2023, which included an upfront payment of $40 million and potential milestone payments totaling up to $1.8 billion. The company issued 5.9 million shares to Moderna at $6.14 per share, making Moderna a related party.

Looking ahead, Generation Bio anticipates continued operating losses and plans to secure additional funding through various means, including public or private equity offerings and collaborations. The company expects its existing cash and marketable securities to support operations into the second half of 2027, although it acknowledges the uncertainty surrounding future financing.