Third Harmonic Bio, Inc., a clinical-stage biopharmaceutical company focused on developing oral small-molecule inhibitors for inflammatory diseases, reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company has not generated any revenue to date and anticipates continued operating losses.

As of September 30, 2024, Third Harmonic Bio's cash and cash equivalents stood at $296.1 million, an increase from $269.1 million at the end of 2023. Total current assets rose to $300.2 million from $272.4 million, while total assets increased to $304.5 million from $277.7 million. However, total current liabilities also grew to $7.1 million from $5.4 million. The company’s total stockholders’ equity increased to $294.9 million from $269.1 million, reflecting a successful capital raise.

Operating expenses for the three months ended September 30, 2024, were $17.1 million, up from $10.8 million in the same period of 2023, marking a 57% increase. Research and development expenses surged by 90% to $11.3 million from $6.0 million year-over-year. For the nine months ended September 30, 2024, total operating expenses reached $42.4 million, compared to $33.5 million in the prior year, representing a 26% increase. The net loss for the three months ended September 30, 2024, was $13.8 million, compared to $7.3 million in the same period of 2023, while the nine-month net loss increased to $32.4 million from $24.0 million.

The company’s accumulated deficit as of September 30, 2024, was approximately $146.6 million. The net loss per share for the three months ended September 30, 2024, was $0.33, up from $0.19 in the prior year, and for the nine months, it was $0.80 compared to $0.61.

Strategically, Third Harmonic Bio has been active in capital markets, filing a Shelf Registration Statement in October 2023 for up to $400 million in securities. The company entered into an Open Market Sales Agreement with Jefferies LLC to sell up to $150 million in common stock, successfully raising approximately $48.7 million from the sale of 3.9 million shares during the quarter.

The company is advancing its lead product candidate, THB335, which received FDA clearance for its Investigational New Drug application in May 2024. A Phase 1 clinical trial has been initiated, with results expected in early 2025. The company plans to expand its clinical and regulatory capabilities, necessitating additional hiring and resources.

Overall, Third Harmonic Bio continues to face challenges typical of clinical-stage biopharmaceutical companies, including significant operating losses and the need for ongoing funding to support its development pipeline.