Prelude Therapeutics Inc., a clinical-stage oncology company, reported significant financial developments in its recent 10-Q filing for the third quarter of 2024. As of September 30, 2024, the company had total assets of $197.2 million, a decrease from $277.7 million at the end of 2023. Current assets also fell to $156.4 million from $235.6 million, primarily due to a reduction in cash and cash equivalents, which dropped to $11.1 million from $25.3 million over the same period.
The company recognized revenue of $3.0 million from a license agreement with Pathos AI, Inc. during Q3 2024, marking its first revenue recognition, compared to no revenue in Q3 2023. Total operating expenses for the quarter increased to $37.4 million from $33.4 million in the prior year, leading to a loss from operations of $34.4 million, up from $33.4 million. The net loss for Q3 2024 was $32.3 million, an increase from $30.6 million in Q3 2023. For the nine months ended September 30, 2024, the net loss was $98.4 million, compared to $88.8 million for the same period in 2023.
Research and development (R&D) expenses rose to $29.5 million in Q3 2024, up from $26.3 million in Q3 2023, driven by increased spending on key programs such as PRT3789 and PRT2527. General and administrative expenses also increased to $7.9 million from $7.1 million year-over-year. The company’s accumulated deficit grew to $554.8 million as of September 30, 2024, compared to $456.4 million at the end of 2023.
Prelude's cash flow activities showed net cash used in operating activities of $82.1 million for the nine months ended September 30, 2024, slightly down from $83.5 million in the same period of 2023. The company reported net cash provided by investing activities of $68.1 million, primarily from the maturity of marketable securities, contrasting with a net cash used in investing activities of $42.4 million in the prior year.
Strategically, Prelude has entered into a license agreement with Pathos AI, which includes potential milestone payments totaling up to $141 million. The company has also ceased development of its PRMT5 inhibitor, PRT811, and is focusing on its other drug candidates, including PRT3789 and PRT2527, which are in various stages of clinical trials. The company plans to seek additional funding through equity offerings and collaborations to support its ongoing operations and R&D efforts.
About Prelude Therapeutics Inc
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