TScan Therapeutics, Inc., a clinical-stage biotechnology company focused on developing T cell receptor (TCR) therapies for cancer treatment, reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decline in collaboration and license revenue, which fell to $1.05 million for Q3 2024, down from $3.89 million in Q3 2023. For the nine months ended September 30, 2024, total collaboration revenue was $2.15 million, a sharp decrease from $13.84 million in the same period the previous year.

Total operating expenses increased to $33.67 million in Q3 2024, compared to $28.64 million in Q3 2023, driven primarily by higher research and development costs, which rose to $26.26 million from $22.74 million. The loss from operations for Q3 2024 was $(32.62 million), up from $(24.75 million) in Q3 2023. The net loss for the quarter was $(29.89 million), compared to $(22.99 million) in the prior year. For the nine-month period, the net loss was $(91.69 million), an increase from $(69.61 million) in 2023.

The company’s total assets as of September 30, 2024, were $348.03 million, up from $272.15 million at the end of 2023. Cash, cash equivalents, and marketable securities totaled $271.1 million, which the company expects will fund operations into the fourth quarter of 2026. The increase in cash reserves was bolstered by two public offerings in 2023 and 2024, generating net proceeds of approximately $134.7 million and $161.4 million, respectively.

TScan continues to face challenges in clinical development, including risks associated with patient enrollment and manufacturing complexities. The company has expanded its manufacturing facility to support ongoing clinical trials but lacks direct experience in managing such operations, which may lead to delays and increased costs. Additionally, the company has not yet received regulatory approval for any product candidates and does not anticipate generating revenue from product sales for several years.

As of September 30, 2024, TScan had 188 full-time employees and plans to hire additional personnel to support its development and commercialization efforts. The company is classified as an emerging growth company, allowing it to benefit from reduced reporting requirements under the JOBS Act. However, it anticipates significant increases in legal, accounting, and compliance costs as it transitions to a public company.