Tevogen Bio Reports Financial Results for Nine Months Ended September 30, 2024, Following Merger with Semper Paratus Acquisition Corporation

Tevogen Bio Holdings Inc., a clinical-stage specialty immunotherapy company, reported significant financial developments in its 10-Q filing for the nine months ended September 30, 2024. The company, which focuses on developing precision T cell therapeutics for infectious diseases and cancers, underwent a merger with Semper Paratus Acquisition Corporation on February 14, 2024, resulting in Tevogen Bio becoming a wholly owned subsidiary.

As of September 30, 2024, Tevogen reported total current assets of $3.5 million, a notable increase from $1.7 million at the end of 2023. However, total assets decreased to $4.3 million from $5.5 million during the same period. Current liabilities saw a significant reduction to $10.4 million from $85.5 million, contributing to an improved total stockholders’ deficit of $(6.2 million), compared to $(94.4 million) at the end of 2023.

Operating expenses for the third quarter of 2024 reached $6.1 million, up from $2.3 million in the same quarter of 2023. For the nine months ended September 30, 2024, total operating expenses soared to $44.2 million, compared to $6.8 million in the prior year. This increase was primarily driven by a substantial rise in research and development expenses, which totaled $28.2 million for the nine months, up from $3.5 million in 2023. The increase in R&D expenses was largely attributed to stock-based compensation, which amounted to $24.9 million in 2024, compared to no stock-based compensation in the previous year.

Tevogen reported a net loss of $(5.9 million) for the third quarter of 2024, compared to $(3.9 million) in the same quarter of 2023. For the nine-month period, the net loss was $(4.3 million), a significant improvement from $(56.8 million) in 2023. The company attributed this reduction in losses to lower transaction costs related to the merger and a non-cash gain from the change in fair value of convertible promissory notes.

The company’s cash position as of September 30, 2024, was $2.3 million, a slight decrease from $2.6 million a year earlier. Tevogen has entered into a Loan Agreement allowing for term loans of up to $36 million over three years, with $1 million drawn as of the reporting date. The company anticipates that its current cash and funding will support operations for at least the next 12 months.

Tevogen has not generated any revenue to date and does not expect to until it obtains marketing approval for its product candidates, including TVGN 489, which targets COVID-19. The company is focused on advancing its clinical trials and securing additional funding to support its operations and development efforts.