Werewolf Therapeutics, Inc. reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company, focused on developing immunotherapies for cancer treatment, experienced a notable decline in revenue, with collaboration revenue dropping to $0 for the three months ended September 30, 2024, compared to $5.9 million in the same period of 2023. For the nine months ended September 30, 2024, revenue was $1.9 million, down from $18.4 million in the prior year. This decrease is attributed to the full recognition of deferred revenue related to a collaboration agreement with Jazz Pharmaceuticals, which had previously contributed significantly to revenue.

Total operating expenses for the three months ended September 30, 2024, increased to $17.1 million from $15.1 million year-over-year, leading to an operating loss of $17.1 million, compared to a loss of $9.3 million in the same quarter of 2023. The net loss for the quarter was $16.7 million, worsening from a loss of $8.3 million in the prior year. For the nine-month period, the net loss escalated to $50.1 million from $25.4 million in 2023.

Research and development expenses rose significantly, totaling $40.7 million for the nine months ended September 30, 2024, compared to $32.1 million in the same period of 2023. This increase was driven by higher clinical trial and manufacturing costs associated with lead product candidates WTX-124 and WTX-330. General and administrative expenses also saw a slight increase, reflecting higher professional services costs.

As of September 30, 2024, total current assets decreased to $125.8 million from $138.4 million at the end of 2023, while total assets fell to $140.0 million from $174.8 million. Total stockholders’ equity also declined to $89.4 million from $111.4 million. The company reported cash and cash equivalents of $122.8 million, which are expected to fund operations through at least mid-2026.

In terms of financing, Werewolf Therapeutics raised $21.1 million through an at-the-market offering during the nine months ended September 30, 2024, compared to $9.3 million in the same period of 2023. The company also entered into a K2HV Loan Agreement in May 2024, providing up to $60 million in term loans, with $30 million received at closing.

Overall, the company continues to face challenges in revenue generation and profitability while investing heavily in the development of its product candidates.