Longboard Pharmaceuticals Reports Significant Financial Growth, Net Loss in Latest Quarter

Longboard Pharmaceuticals, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on developing novel medicines for neurological diseases, has seen a substantial increase in its financial metrics compared to the previous fiscal period.

As of September 30, 2024, Longboard's cash and cash equivalents stood at $27.6 million, up from $14.3 million at the end of 2023. Short-term investments surged to $260.8 million from $34.2 million, contributing to total current assets of $293.0 million, a significant increase from $50.2 million at the end of the previous year. Total assets also rose to $297.0 million from $50.7 million. The company’s additional paid-in capital increased dramatically to $476.4 million from $181.6 million, reflecting successful capital raises, including a $241.5 million follow-on public offering in January 2024 and a $59.9 million private placement in March 2024.

Despite these increases in assets and capital, Longboard reported a net loss of $24.5 million for the third quarter of 2024, compared to a loss of $12.9 million in the same quarter of 2023. For the nine months ended September 30, 2024, the net loss was $61.3 million, up from $39.4 million in the prior year. Operating expenses for the quarter reached $28.1 million, more than double the $13.6 million reported in the same period last year, driven primarily by a 105% increase in research and development expenses, which totaled $21.5 million.

The company’s accumulated deficit increased to $201.9 million as of September 30, 2024, compared to $140.6 million at the end of 2023. This reflects ongoing investments in research and development, particularly for its advanced product candidate, Bexicaserin (LP352), which is currently in a global Phase 3 program for treating seizures associated with developmental and epileptic encephalopathies.

Strategically, Longboard entered into a merger agreement with H. Lundbeck A/S on October 14, 2024, which includes a cash tender offer for all outstanding shares at $60 per share. This merger is contingent upon the tender of more than 50% of the voting common stock. The company has agreed to operate in the ordinary course and has certain restrictions on alternative acquisition proposals until the merger is completed.

Overall, while Longboard Pharmaceuticals has made significant strides in capital raising and asset accumulation, it continues to face substantial operating losses as it advances its clinical programs and prepares for potential commercialization of its product candidates.