Synlogic, Inc., a clinical-stage biopharmaceutical company focused on developing Synthetic Biotics, reported significant financial changes in its latest 10-Q filing for the nine months ended September 30, 2024. The company has not generated any product revenue to date and does not expect to do so in the foreseeable future. For the three months ended September 30, 2024, Synlogic reported no revenue, a stark decline from $393,000 in the same period in 2023. For the nine-month period, revenue fell to $8,000 from $602,000 year-over-year, primarily due to the conclusion of a collaboration agreement with Roche in October 2023.

Total operating expenses for the three months ended September 30, 2024, were $748,000, significantly lower than $13,016,000 in the same period in 2023. For the nine months, operating expenses decreased to $39,182,000 from $45,122,000. The company reported a loss from operations of $(748,000) for the third quarter, an improvement from $(12,623,000) in the prior year. The net loss for the three months ended September 30, 2024, was $(117,000), compared to $(12,078,000) in 2023. For the nine months, the net loss was $(22,645,000), down from $(42,748,000) in the previous year.

The company’s accumulated deficit increased to $(440.9 million) as of September 30, 2024, from $(418.3 million) at the end of 2023. Total stockholders' equity also decreased to $13.1 million from $32.8 million during the same period. Cash and cash equivalents were reported at $19.4 million, down from $24.0 million at the end of 2023.

Strategically, Synlogic underwent a significant corporate restructuring in February 2024, which included the discontinuation of the Synpheny-3 trial for its lead product candidate, SYNB1934, and a workforce reduction of over 90%. The restructuring resulted in charges of $6.1 million for the nine months ended September 30, 2024. The company is now focused on evaluating strategic alternatives, including potential mergers or sales.

Additionally, Synlogic executed a reverse stock split on September 27, 2023, and completed an underwritten public offering in October 2023, raising approximately $19.6 million. The company has also faced challenges related to internal controls, identifying a material weakness in financial reporting processes, which has led to misstatements in prior financial statements. Management is actively working on remediation efforts to address these issues.