Ocugen, 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 health compared to the previous fiscal period.

For the three months ended September 30, 2024, Ocugen generated total revenue of $1.136 million, a decrease from $3.699 million in the same period of 2023. For the nine months, total revenue also fell to $3.291 million from $4.627 million year-over-year. The decline in revenue was attributed to a reassessment of co-development services under its collaboration agreement with CanSino Biologics, which saw collaboration revenue drop by approximately $1.3 million for the nine-month period.

Total operating expenses for the third quarter decreased to $14.388 million from $16.130 million in the prior year, while for the nine months, expenses fell to $44.208 million from $58.633 million. The reduction in operating expenses was primarily due to decreased research and development costs, particularly following the termination of the COVAXIN program, which resulted in a significant drop in related expenses.

Despite the reduction in expenses, Ocugen reported a net loss of $12.970 million for the third quarter, compared to a loss of $11.717 million in the same quarter of 2023. For the nine-month period, the net loss improved to $40.174 million from $52.108 million, indicating a positive trend in loss reduction.

As of September 30, 2024, Ocugen's total current assets were $40.673 million, down from $42.971 million at the end of 2023. Total assets decreased to $61.936 million, while total liabilities also fell to $21.306 million. Stockholders' equity saw a slight increase to $40.630 million from $40.564 million at the end of 2023.

The company reported cash and restricted cash of $39.001 million as of September 30, 2024, a decrease from $53.477 million a year earlier. This cash position is deemed insufficient to fund operations for the next 12 months, prompting the need for significant additional funding. Subsequent to the reporting period, Ocugen entered into a debt financing transaction with Avenue Capital, securing net proceeds of $29.2 million.

Strategically, Ocugen continues to focus on its gene and cell therapy platforms, with ongoing clinical trials for its lead product candidates, including OCU400 for retinitis pigmentosa and OCU200 for diabetic macular edema. The company is also advancing its inhaled mucosal vaccine platform, with plans for clinical trials for its COVID-19 vaccine, OCU500, expected to begin following IND clearance.

Overall, while Ocugen has made strides in reducing its net losses and operating expenses, the company faces challenges in revenue generation and funding its ongoing research and development efforts.