Kronos Bio Reports Q3 Financial Results, Revenue Growth, and Strategic Developments

Kronos Bio, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, operating expenses, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, Kronos Bio generated revenue of $2.37 million, a substantial increase from $917,000 in the same period of 2023. For the nine months, revenue rose to $7.58 million from $4.00 million year-over-year. This increase is attributed primarily to heightened activity under the Collaboration and License Agreement with Genentech, which included an upfront payment of $20 million received in early 2023.

Total operating expenses for the third quarter decreased to $18.09 million from $34.74 million in the prior year, while for the nine months, expenses fell to $73.31 million from $98.49 million. The reduction in operating expenses was driven by a significant decrease in research and development (R&D) costs, which dropped to $12.30 million from $25.30 million in the third quarter of 2023. This decline was due to personnel cost reductions and decreased direct costs associated with consulting and outside research, following the discontinuation of the lanraplenib trial and a narrowed focus on istisociclib.

Despite the increase in revenue, Kronos Bio reported a net loss of $14.11 million for the third quarter, down from $31.37 million in the same period of 2023. For the nine months, the net loss was $60.27 million, compared to $87.35 million in the previous year. The accumulated deficit as of September 30, 2024, stood at $569.13 million.

Strategically, the company announced the discontinuation of its lead product candidate, istisociclib, in November 2024, due to adverse events observed in clinical trials. This decision has prompted the board to explore strategic alternatives, including potential mergers or asset sales. Additionally, Kronos Bio implemented a restructuring plan in early 2024, which included a 21% workforce reduction and the termination of three executive positions, incurring total restructuring costs of $6.2 million for the nine months ended September 30, 2024.

As of September 30, 2024, Kronos Bio had cash, cash equivalents, and investments totaling $124.9 million, which management believes will fund operations for at least the next year. The company plans to raise additional capital through equity securities or debt financing to support ongoing operations and product development efforts.