Tourmaline Bio, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on developing transformative medicines for immune and inflammatory diseases, experienced a notable increase in total current assets, rising to $293.8 million from $208.9 million at the end of 2023. However, cash and cash equivalents decreased sharply to $35.0 million from $140.7 million, while short-term investments surged to $246.9 million from $62.2 million during the same period.

The company’s total assets increased to $328.4 million, up from $210.3 million, and stockholders’ equity rose to $321.1 million from $205.0 million. Despite these increases, the accumulated deficit expanded to $(113.0 million) from $(62.1 million) as of December 31, 2023.

Operating expenses for the three months ended September 30, 2024, reached $24.4 million, a significant rise from $6.6 million in the same period of 2023. Research and development expenses accounted for $19.3 million, up from $3.8 million, driven by increased clinical trial costs and employee compensation. The net loss for the quarter was $(20.2 million), compared to $(5.6 million) in the prior year, while the comprehensive loss also increased to $(18.9 million) from $(5.6 million).

For the nine months ended September 30, 2024, total operating expenses were $63.9 million, up from $30.5 million, with a net loss of $(51.0 million) compared to $(29.2 million) in 2023. The increase in expenses was primarily attributed to higher research and development costs, which rose by $22.1 million, and general and administrative expenses, which increased by $11.3 million.

The company completed a public offering on January 25, 2024, raising approximately $172.5 million in gross proceeds, with net proceeds of about $161.4 million. This funding is expected to support ongoing clinical trials and operational expenses. Tourmaline Bio is currently advancing its lead product candidate, pacibekitug (TOUR006), through pivotal trials for thyroid eye disease and atherosclerotic cardiovascular disease, with significant costs anticipated as development progresses.

As of September 30, 2024, the company had cash, cash equivalents, and investments totaling $314.4 million, which management believes will fund operations for at least the next 12 months. However, the company continues to face challenges, including the need for substantial additional capital for product development and commercialization, as well as potential delays in clinical trials due to manufacturing and supply chain issues.