NKGen Biotech Reports $6.6M Net Income in Q3 2024, Significant Turnaround from Previous Year

NKGen Biotech, Inc. has reported its financial results for the third quarter of 2024, revealing a net income of $6.6 million, a significant turnaround from a net loss of $33.2 million in the same period last year. This improvement is attributed to a notable change in the fair value of financial instruments, which contributed $16.8 million to the income statement. The company’s total expenses for the quarter were $6.8 million, slightly down from $6.9 million in the prior year, with research and development expenses decreasing by 29% to $2.8 million, while general and administrative expenses rose by 35% to $4.0 million.

In terms of year-to-date performance, NKGen reported a net loss of $14.9 million for the nine months ending September 30, 2024, compared to a loss of $49.3 million for the same period in 2023. Total expenses increased to $21.9 million from $20.3 million, driven primarily by a 46% increase in general and administrative expenses, which reached $12.8 million. Research and development expenses also decreased by 21% to $9.1 million, reflecting a strategic focus on advancing clinical trials for its product candidates, particularly in Alzheimer’s and Parkinson’s diseases.

Operationally, NKGen has made significant strides in its clinical development. The company received investigational new drug (IND) clearance from the FDA for its SNK01 therapy targeting Alzheimer’s disease and has initiated a Phase 1/2 clinical trial. The company also reported that it dosed its first participant in the U.S. for this trial. Additionally, NKGen is advancing its SNK02 therapy for solid tumors, with plans to conduct further trials in both oncology and neurodegenerative diseases.

As of September 30, 2024, NKGen's total assets were reported at $15.0 million, down from $16.5 million at the end of 2023, while total liabilities decreased to $62.0 million from $75.2 million. The company’s accumulated deficit has grown to $177.0 million, raising concerns about its ability to continue as a going concern without additional financing. NKGen has indicated that it will need to secure further capital to support its ongoing operations and clinical trials, emphasizing the importance of upcoming financing efforts to sustain its business model and development pipeline.