Rallybio Reports Reduced Losses, Increased Revenue in Q3 2024

Rallybio Corporation, a clinical-stage biotechnology firm focused on developing therapies for severe and rare diseases, reported its financial results for the third quarter and nine months ended September 30, 2024. The company has not yet commercialized any products and has incurred significant losses since its inception in January 2018, with an accumulated deficit of $281.976 million as of September 30, 2024.

For the three months ended September 30, 2024, Rallybio generated collaboration and license revenue of $299,000, compared to no revenue in the same period of 2023. Total operating expenses decreased to $12.365 million from $19.363 million year-over-year, primarily due to reduced research and development costs and a workforce reduction that occurred in March 2024. The loss from operations improved to $(12.066 million) from $(19.363 million) in the prior year. The net loss for the quarter was $(11.466 million), a significant reduction from $(18.374 million) in Q3 2023.

For the nine months ended September 30, 2024, total revenue was $598,000, again with no revenue in the same period of 2023. Total operating expenses for this period decreased to $49.486 million from $57.820 million, leading to a loss from operations of $(48.888 million), down from $(57.820 million) in the previous year. The net loss for the nine months was $(46.731 million), compared to $(54.322 million) in 2023.

Rallybio's cash and cash equivalents stood at $25.320 million as of September 30, 2024, an increase from $24.494 million at the end of 2023. The company also reported total current assets of $78.230 million, down from $114.789 million at year-end 2023. The decrease in total assets reflects the company's ongoing investment in research and development, particularly for its lead product candidates, RLYB212 and RLYB116, which are in early-stage clinical development.

In April 2024, Rallybio entered a collaboration agreement with Johnson & Johnson, receiving an upfront payment of $0.5 million and potential additional payments of up to $0.7 million based on enrollment-related milestones. The company also raised approximately $6.6 million through the sale of shares to Johnson & Johnson Innovation at $1.82 per share.

Rallybio has implemented cost-saving measures, including a workforce reduction of approximately 45%, which resulted in restructuring charges of about $3.3 million. The company anticipates that additional capital will be necessary to fund ongoing operations and clinical development, with future funding sources potentially including equity sales, debt financing, and collaborations.