Tenaya Therapeutics Reports Financial Results, Decrease in Cash and Cash Equivalents, and Progress in Product Pipeline

Tenaya Therapeutics, Inc., a clinical-stage biotechnology company focused on developing therapies for heart disease, reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company had 79,220,516 shares of common stock outstanding, with a par value of $0.0001 per share.

As of September 30, 2024, Tenaya's cash and cash equivalents stood at $8.2 million, a substantial decrease from $45.7 million at the end of 2023. Total current assets also declined to $85.3 million from $111.6 million, while total assets decreased to $140.6 million from $170.5 million. The company's total stockholders' equity fell to $112.6 million from $139.4 million over the same period.

For the three months ended September 30, 2024, Tenaya reported total operating expenses of $26.7 million, down from $30.9 million in the same period of 2023. The loss from operations improved to $(26.7 million) from $(30.9 million) year-over-year. The net loss before income tax expense for the quarter was $(25.6 million), compared to $(29.1 million) in Q3 2023. For the nine months ended September 30, 2024, the net loss was $(87.3 million), a decrease from $(94.1 million) in the prior year.

The company attributed the reduction in operating expenses primarily to a workforce reduction plan initiated in May 2024, which impacted approximately 22% of its workforce, resulting in $1.4 million in severance and related costs. Research and development expenses for the quarter decreased to $20.4 million from $23.1 million, while general and administrative expenses fell to $6.4 million from $7.8 million.

In terms of financing, Tenaya completed a follow-on offering in February 2024, raising approximately $46.8 million in net proceeds. The company also entered into a loan agreement with Silicon Valley Bank in August 2024, allowing for a drawdown of $20 million, with additional amounts contingent on clinical milestones.

Despite these financial challenges, Tenaya continues to advance its product pipeline, which includes gene therapies TN-201 and TN-401, both of which have received orphan drug designation from the FDA. The company is actively enrolling patients for clinical trials and expects to utilize its existing cash and loan funds to support operations for at least the next twelve months. However, management acknowledges the need for additional capital to implement its business plan effectively.