XBiotech Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a mixed performance in terms of revenue, expenses, and overall financial health compared to the previous fiscal period.
As of September 30, 2024, XBiotech's cash and cash equivalents stood at $183.1 million, a decrease from $200.0 million at the end of 2023. Total current assets also fell to $185.0 million from $201.7 million, while total assets decreased to $209.9 million from $226.6 million. In contrast, total current liabilities surged to $16.0 million from $6.1 million, contributing to a decline in total shareholders’ equity to $192.1 million from $218.8 million.
For the three months ended September 30, 2024, XBiotech reported total operating expenses of $7.9 million, down from $8.5 million in the same period of 2023. The loss before income taxes improved to $(5.0) million from $(7.1) million year-over-year. However, for the nine months ended September 30, 2024, the loss before income taxes increased to $(28.0) million from $(19.6) million in 2023. The net loss for the third quarter was $(5.0) million, an improvement from $(7.4) million in the prior year, but the year-to-date net loss rose to $(28.0) million from $(19.9) million.
Research and development (R&D) expenses for the third quarter were $7.1 million, a slight decrease from $7.5 million in 2023, attributed to reduced share-based compensation and the completion of a clinical study. However, R&D expenses for the nine months increased to $29.9 million from $25.0 million, driven by heightened clinical trial activities and a company-wide bonus. General and administrative expenses also saw a decrease, totaling $0.8 million for the third quarter compared to $1.0 million in 2023.
The company’s cash flow dynamics shifted significantly, with net cash used in operating activities for the nine months ending September 30, 2024, amounting to $(24.4) million, compared to $(15.3) million in the same period of 2023. Notably, XBiotech secured $10.0 million from a convertible loan agreement to fund a new research and development facility in Austin, Texas.
Overall, XBiotech continues to focus on advancing its pipeline of IL-1a targeting product candidates, with no expected revenue for the next year and significant operating losses anticipated. The company maintains a workforce of 92 employees as of the reporting date.
About XBiotech Inc.
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