Synlogic Reports $23.36 Million Net Loss for Fiscal Year 2024, Revenue Drops to $8,000

Synlogic, Inc., a biopharmaceutical company focused on rare metabolic disorders, reported a net loss of $23.36 million for the fiscal year ended December 31, 2024, compared to a net loss of $61.27 million in 2023. Revenue for 2024 was a mere $8,000, significantly down from $3.37 million in 2023. This decrease reflects the conclusion of a collaboration agreement with Roche in October 2023, after which Roche did not exercise its option for further collaboration. The company's research and development expenses decreased substantially from $43.97 million in 2023 to $9.15 million in 2024, primarily due to the discontinuation of the Synpheny-3 clinical trial for its lead product candidate, labafenogene marselecobac (SYNB1934), in February 2024 and subsequent workforce reduction.

The decision to halt Synpheny-3 was based on an internal review indicating an unlikely achievement of the primary endpoint, although no safety or tolerability concerns were cited. Consequently, Synlogic's current corporate strategy centers on exploring strategic initiatives to enhance stockholder value, including potential mergers or sales. The company's early-stage pipeline includes product candidates for enteric hyperoxaluria, gout, and cystinuria, all based on a proprietary approach using genetically engineered probiotics. As of February 27, 2025, Synlogic employed one full-time employee, primarily focused on the strategic review process.

Significant changes in operating expenses are detailed in the 10-K filing. Research and development expenses decreased by $34.8 million, while general and administrative expenses fell by $8 million, largely due to the workforce reduction. The company incurred $25.2 million in restructuring and other charges, encompassing impairment charges related to leases, property, equipment, and prepaid research and development, as well as severance payments and contract termination costs. Other income (expense) showed a net increase of $23.7 million, primarily driven by a change in the fair value of purchase warrants classified as liabilities.

Synlogic's cash and cash equivalents decreased by $28.8 million during 2024, primarily due to operating expenses and restructuring activities. As of December 31, 2024, the company held $18.9 million in cash and cash equivalents, which it projects will be sufficient to fund operations for at least the next 12 months. However, the company's future funding requirements will depend on various factors, including the outcome of its strategic review, the success of its research and development efforts, and the costs associated with potential future clinical trials and commercialization activities. The company acknowledges a material weakness in its internal control over financial reporting related to the communication of significant and non-routine transactions.

The 10-K filing includes extensive disclosures regarding risk factors, including those related to the discontinuation of SYNB1934, the uncertainty of securing additional funding, the inherent risks of clinical trials, the competitive landscape, intellectual property protection, and regulatory approvals. The company also details its compliance with various U.S. and international regulations, including those related to healthcare fraud and abuse, data privacy, and environmental, health, and safety standards. The filing concludes with the signatures of the principal executive officer, principal financial officer, and board of directors, confirming the accuracy and completeness of the information provided.