SCYNEXIS Reports Significant Financial Challenges, Net Loss of $2.8M in Latest Quarter

SCYNEXIS, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company recorded total revenue of $660,000 for the three months ended September 30, 2024, a substantial decrease of 62.5% from $1,761,000 in the same period of 2023. For the nine months ended September 30, 2024, total revenue plummeted to $2,769,000, down 97.9% from $134,344,000 in the prior year. This decline is attributed primarily to a lack of product sales and reduced license agreement revenue following a recall of its key product, BREXAFEMME (ibrexafungerp), due to potential cross-contamination risks.

The company's operating expenses for the three months ended September 30, 2024, were $10,980,000, slightly down from $11,859,000 in the previous year. Research and development expenses increased to $8,073,000, up 24.9% from $6,466,000 in the same period in 2023, driven by higher costs associated with chemistry, manufacturing, and controls (CMC) for ongoing projects. Despite these efforts, SCYNEXIS reported a loss from operations of $(10,320,000) for the quarter, compared to a loss of $(10,098,000) in the prior year.

The net loss for the three months ended September 30, 2024, was $(2,808,000), an increase from $(1,757,000) in the same period in 2023. For the nine months ended September 30, 2024, the net loss was $(16,855,000), contrasting sharply with a net income of $86,627,000 for the same period in 2023. The accumulated deficit as of September 30, 2024, stood at $372.1 million.

In terms of liquidity, SCYNEXIS reported cash and cash equivalents of $28.7 million, down from $34.1 million at the end of 2023. The company’s total assets decreased to $99.0 million from $128.4 million, while total current liabilities increased to $25.7 million from $16.3 million. The company believes its current resources are sufficient to fund operations for at least the next 12 months, although it may seek additional capital through various means, including equity offerings and strategic alliances.

Strategically, SCYNEXIS entered a license agreement with GlaxoSmithKline (GSK) in March 2023 for the development and commercialization of ibrexafungerp, which has faced setbacks due to the recall and clinical hold on studies. The FDA has concurred with the voluntary clinical hold, and the company anticipates resuming studies in Q1 2025. Additionally, SCYNEXIS is facing legal challenges, including a securities class action lawsuit alleging misleading statements regarding its manufacturing practices. The company intends to defend against these allegations vigorously.