Nkarta, Inc. Reports Financial Results for Q3 2024, Announces Restructuring and Focus on Lead Product Candidate

Nkarta, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in its financial position and operational performance compared to the previous fiscal period.

As of September 30, 2024, Nkarta's cash and cash equivalents increased to $56.96 million from $31.04 million at the end of 2023. Total current assets rose to $290.15 million, up from $253.07 million, while total assets surged to $532.03 million from $378.89 million. Total liabilities decreased slightly to $101.16 million from $105.60 million, contributing to a rise in total stockholders' equity to $430.87 million, compared to $273.29 million at the end of 2023.

For the three months ended September 30, 2024, Nkarta reported total operating expenses of $33.79 million, an increase from $29.29 million in the same period of 2023. The loss from operations for this quarter was $(33.79 million), compared to $(29.29 million) in the prior year. However, for the nine months ended September 30, 2024, total operating expenses decreased to $97.27 million from $100.47 million in 2023. The net loss for the third quarter was $(28.34 million), up from $(25.65 million) in 2023, while the nine-month net loss improved to $(82.86 million) from $(89.75 million).

Research and development expenses for the third quarter increased to $25.30 million from $22.20 million in 2023, while for the nine months, they remained relatively stable at $73.60 million compared to $73.50 million in the previous year. General and administrative expenses rose to $8.50 million for the third quarter, up from $7.10 million, but decreased for the nine months to $23.70 million from $27.00 million.

In terms of strategic developments, Nkarta announced a reduction in force of approximately 10% in October 2023 as part of cost containment measures. The company is focused on advancing its lead product candidate, NKX019, which is currently in Phase 1 clinical trials for autoimmune diseases, including lupus nephritis. The company has deprioritized its NKX101 program for hematologic malignancies to concentrate resources on NKX019.

Nkarta's financial position remains precarious, with an accumulated deficit of $518.29 million as of September 30, 2024. The company has not generated revenue from product sales and anticipates continued net losses and negative cash flows, necessitating substantial additional funding for ongoing operations and development. The company plans to raise additional capital through equity or debt financing to support its research and development activities.