As of September 30, 2024, Q32 Bio Inc., a clinical-stage biotechnology company focused on developing biologics for autoimmune and inflammatory diseases, reported significant financial changes following its merger with Homology Medicines, Inc. on March 25, 2024. The company had cash and cash equivalents of $89.1 million, a substantial increase from $25.6 million at the end of 2023. Total assets rose to $104.5 million, up from $47.1 million, while total stockholders’ equity improved to $18.3 million, reversing a deficit of $182.9 million at the end of 2023.

The merger resulted in a dramatic increase in common stock, with shares outstanding rising to 12,138,869 from 359,569. Additional paid-in capital surged to $238.9 million, reflecting the conversion of Legacy Q32’s preferred stock into common stock and the capital raised through pre-closing financing.

However, the company reported no collaboration revenue for the third quarter of 2024, a decline from $1.9 million in Q3 2023, and for the nine months ended September 30, 2024, collaboration revenue was $0 compared to $8.0 million in the same period of the previous year. Research and development expenses increased significantly to $37.6 million for the nine months ended September 30, 2024, up from $23.4 million in 2023, driven by costs associated with the bempikibart program. General and administrative expenses also rose to $14.0 million from $7.1 million, primarily due to costs related to the merger.

The net loss for the third quarter of 2024 was $17.6 million, compared to a loss of $14.0 million in Q3 2023. For the nine months ended September 30, 2024, the net loss was $33.5 million, an increase from $26.7 million in the prior year. The loss from operations for the same period was $51.6 million, up from $22.4 million in 2023.

The company has incurred recurring operating losses since its inception and anticipates these losses will continue as it advances its clinical programs, particularly for bempikibart and ADX-097. The future viability of Q32 Bio is contingent on its ability to raise additional capital, as it has not generated any revenue from product sales to date.

In terms of strategic developments, the company has ongoing clinical trials for its lead product candidate, bempikibart, with topline data expected in Q4 2024. The company is also exploring additional therapeutic opportunities within complement-mediated diseases. Despite the positive cash position, Q32 Bio acknowledges the need for further funding to support its operations and development efforts.