Lyell Immunopharma Reports Mixed Q3 Results, Net Loss Narrows Amid Acquisition and Cost-Cutting Efforts

Lyell Immunopharma, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, revealing significant changes in revenue, expenses, and overall financial position compared to the previous fiscal period.

For the three months ended September 30, 2024, the company generated revenue of $34,000, an increase from $25,000 in the same period of 2023. However, for the nine months ended September 30, 2024, total revenue decreased to $50,000 from $117,000 in the prior year. Total operating expenses for the third quarter were $50.5 million, down from $59.1 million in Q3 2023, while for the nine months, expenses decreased to $157.7 million from $187.6 million. The loss from operations for the third quarter was $(50.5 million), an improvement from $(59.0 million) in Q3 2023, and for the nine months, the loss narrowed to $(157.6 million) from $(187.5 million).

The net loss for the third quarter of 2024 was $(44.6 million), compared to $(50.9 million) in the same quarter of 2023. For the nine-month period, the net loss was $(151.1 million), down from $(181.7 million) in the previous year. The company reported a decrease in net loss per share, which was $(0.17) for Q3 2024 compared to $(0.20) in Q3 2023.

As of September 30, 2024, Lyell's cash and cash equivalents stood at $100.3 million, a decline from $145.6 million at the end of 2023. Total current assets decreased to $450.0 million from $554.7 million, and total assets fell to $619.2 million from $750.0 million. Total stockholders’ equity also decreased to $530.7 million from $655.0 million.

Strategically, the company completed the acquisition of ImmPACT Bio USA Inc. on October 31, 2024, for an upfront payment of $30 million in cash and 37.5 million shares of common stock, with additional contingent shares based on clinical milestones. This acquisition is expected to enhance Lyell's product pipeline, particularly with the addition of IMPT-314, a dual-targeting CAR T-cell therapy currently in clinical development.

Lyell has also undergone workforce reductions, with a 25% decrease in headcount announced in late 2023, contributing to lower personnel-related expenses. General and administrative expenses decreased significantly, reflecting a $14.6 million reduction in personnel costs, including a $10.4 million decrease in stock-based compensation.

The company continues to face challenges, including the need for additional capital to support ongoing research and development efforts, with expectations of incurring further losses in the foreseeable future.