Zentalis Pharmaceuticals, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, expenses, and overall financial health compared to the previous fiscal period.

As of September 30, 2024, Zentalis had cash and cash equivalents of $41.3 million, an increase from $28.0 million at the end of 2023. However, total current assets decreased to $400.3 million from $496.7 million, and total assets fell to $450.7 million from $551.7 million. Total stockholders’ equity also declined to $354.3 million from $437.3 million.

The company recognized $40.6 million in license revenue for the nine months ended September 30, 2024, attributed to an exclusive license agreement with Immunome, marking a significant increase from zero revenue in the same period of 2023. Total operating expenses for the nine months decreased to $181.9 million from $231.6 million, reflecting a reduction of $49.7 million. This decrease was primarily driven by lower research and development (R&D) expenses, which totaled $134.8 million, down from $138.0 million in the prior year.

Zentalis reported a net loss of $118.4 million for the nine months ended September 30, 2024, a notable improvement from a net loss of $231.4 million for the same period in 2023. The net loss attributable to Zentalis for the third quarter was $40.2 million, compared to $55.5 million in the same quarter of the previous year. The loss per share for the third quarter was $0.56, down from $0.79 in 2023.

Investment and other income for the third quarter increased to $11.2 million, up from $7.2 million in the prior year, driven by a rise in the fair value of Immunome stock. The company reported net cash used in operating activities of $131.2 million for the nine months, a decrease from $167.2 million in 2023.

Strategically, Zentalis entered into an asset purchase agreement with Immunome in October 2024, selling ADC assets for approximately 1.8 million shares valued at $21.9 million, with additional contingent consideration based on developmental milestones. The company also dissolved its subsidiary, Kalyra Pharmaceuticals, in January 2024, which had an immaterial impact on its financial statements.

Overall, Zentalis continues to focus on its lead product candidate, Azenosertib, a WEE1 inhibitor currently in clinical trials, while managing its financial resources to support ongoing operations and development efforts.