Achilles Therapeutics Reports Third Quarter 2024 Financial Results

Rhea-AI Summary

Achilles Therapeutics (NASDAQ: ACHL) reported Q3 2024 financial results with a net loss of $19.6 million ($0.48 per share), compared to $16.7 million in Q3 2023. The company's cash position stood at $86.1 million as of September 30, 2024, with an additional $12.8 million R&D tax credit received in October. Following the discontinuation of its TIL-based cNeT program and closure of Phase I/IIa trials, Achilles has engaged BofA Securities to explore strategic options. R&D expenses increased to $16.4 million from $14.7 million year-over-year, while G&A expenses decreased to $4.0 million from $4.4 million.

Positive

• Received $12.8 million R&D tax credit in October 2024
• Maintained substantial cash position of $86.1 million
• Reduced G&A expenses by 9% year-over-year

Negative

• Net loss increased by 17.4% to $19.6 million year-over-year
• R&D expenses increased by 11.6% to $16.4 million
• Cash position declined from $131.5 million at end of 2023 to $86.1 million
• Discontinued TIL-based cNeT program and closed Phase I/IIa clinical trials

Insights

Financial Analyst

The financial results reveal concerning trends for Achilles Therapeutics. The company's cash burn accelerated with a $19.6 million quarterly loss, up from $16.7 million year-over-year, while R&D expenses increased to $16.4 million from $14.7 million. The cash position declined significantly to $86.1 million from $131.5 million at year-end 2023, though partially offset by a $12.8 million R&D tax credit received in October.

Most critically, the discontinuation of the company's TIL-based cNeT program and closure of key clinical trials signals major strategic challenges. The engagement of BofA Securities to explore strategic options typically indicates potential sale, merger, or significant restructuring scenarios. With the current burn rate and no clear path forward for their main therapeutic program, the company's runway and strategic direction require careful monitoring.

– Cash position of $86.1 million as of September 30, 2024, not including cash R&D tax credit of $12.8 million received in October 2024 –        

LONDON, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Achilles Therapeutics plc (NASDAQ: ACHL) today announced its financial results for the third quarter ended September 30, 2024, and recent corporate updates.

Corporate Updates

• Following the discontinuation of its TIL-based cNeT program and closure of the Phase I/IIa CHIRON and THETIS clinical trials, the Company has engaged BofA Securities as a financial advisor in the process of exploring strategic options.
• Achilles Chief Scientific Officer, Sergio Quezada, presented “Targeting Clonal Neoantigens with Precision T-Cell Therapies: Key Mechanistic Insights From cNeT Clinical Trials” in a seminar on October 23, 2024 at the 6^th Annual TIL Therapies Summit.

Financial Highlights

• Cash and cash equivalents: Cash and cash equivalents were $86.1 million as of September 30, 2024, as compared to $131.5 million as of December 31, 2023. Subsequent to September 30, 2024, the Company received a cash R&D tax credit of $12.8 million.
• Research and development (R&D) expenses: R&D expenses were $16.4 million for the third quarter ended September 30, 2024, compared to $14.7 million for the third quarter ended September 30, 2023.
• General and administrative (G&A) expenses: G&A expenses were $4.0 million for the third quarter ended September 30, 2024, compared to $4.4 million for the third quarter ended September 30, 2023.
• Net loss: Net loss for the third quarter ended September 30, 2024 was $19.6 million or $0.48 per share, compared to $16.7 million or $0.42 per share for the third quarter ended September 30, 2023.

About Achilles Therapeutics

Achilles is a clinical-stage biopharmaceutical company that was developing AI-powered precision T cell therapies targeting clonal neoantigens: protein markers unique to the individual that are expressed on the surface of every cancer cell. Achilles uses DNA sequencing data from each patient, together with its proprietary PELEUS^TM bioinformatics platform, to identify clonal neoantigens specific to that patient, to enable and support development of product candidates specifically targeting those clonal neoantigens.

Forward Looking Statements

This press release contains express or implied forward-looking statements that are based on the Company management's belief and assumptions and on information currently available to the Company’s management. Forward-looking statements in this press release include, but are not limited to, statements regarding the Company’s clinical trials and the Company’s beliefs about its goals for the discontinued trials; expectations related to the Company’s cash runway and operating expenses and capital expense requirements; the Company’s ability to engage with third parties who are developing alternative modalities to target clonal neoantigens for the treatment of cancers and the Company’s review and evaluation of potential strategic options and their impact on stockholder value. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or the Company’s future operational or financial performance, and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. The forward-looking statements in this press release represent the Company’s views as of the date of this press release. We anticipate that subsequent events and developments will cause the Company’s views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company has no current intention of doing so except to the extent required by applicable law. You should therefore not rely on these forward-looking statements as representing the Company’s views as of any date subsequent to the date of this press release.

For further information, please contact:

Meru Advisors
Lee M. Stern
lstern@meruadvisors.com

ACHILLES THERAPEUTICS PLC Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except share and per share amounts) (expressed in U.S. Dollars, unless otherwise stated)
	September 30,				December 31,
		2024				2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	86,052			$	131,539
Prepaid expenses and other current assets		25,573				14,094
Total current assets		111,625				145,633
Property and equipment, net		5,827				9,171
Operating lease right of use assets		3,407				4,372
Deferred tax assets		41				41
Restricted cash		20				33
Other assets		1,756				2,206
Total non-current assets		11,051				15,823
Total assets	$	122,676			$	161,456
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	4,248			$	5,629
Accrued expenses and other liabilities		10,602				7,828
Operating lease liabilities - current		3,620				3,539
Total current liabilities		18,470				16,996
NON-CURRENT LIABILITIES:
Operating lease liabilities - non-current		-				1,076
Other long-term liability		1,068				1,015
Total non-current liabilities		1,068				2,091
Total liabilities		19,538				19,087
Commitments and contingencies
SHAREHOLDERS’ EQUITY:
Ordinary shares, £0.001 par value; 41,100,040 and 41,082,948 shares authorized, issued and outstanding at September 30, 2024 and December 31, 2023, respectively		54				54
Deferred shares, £92,451.85. par value, one share authorized, issued and outstanding at September 30, 2024 and December 31, 2023, respectively		128				128
Additional paid in capital		419,098				415,210
Accumulated other comprehensive income		(7,941	)			(13,071	)
Accumulated deficit		(308,201	)			(259,952	)
Total shareholders’ equity		103,138				142,369
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	122,676			$	161,456

ACHILLES THERAPEUTICS PLC Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (in thousands, except share and per share amounts) (expressed in U.S. Dollars, unless otherwise stated)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
			2024				2023				2024				2023
OPERATING EXPENSES:
	Research and development	$	16,396			$	14,712			$	40,171			$	42,354
	General and administrative		4,021				4,384			$	12,344				13,387
	Total operating expenses		20,417				19,096				52,515				55,741
LOSS FROM OPERATIONS:			(20,417	)			(19,096	)			(52,515	)			(55,741	)
OTHER INCOME (EXPENSE), NET:
	Other income (expense)		817				2,389				4,246				4,692
	Total other income (expense), net		817				2,389				4,246				4,692
Loss before income taxes			(19,600	)			(16,707	)			(48,269	)			(51,049	)
	Benefit for income taxes		5				24				20				14
Net loss			(19,595	)			(16,683	)			(48,249	)			(51,035	)
Other comprehensive (loss) income:
	Foreign exchange translation adjustment		6,074				(5,289	)			5,130				2,505
Comprehensive loss		$	(13,521	)		$	(21,972	)		$	(43,119	)		$	(48,530	)
Net loss per share attributable to ordinary shareholders—basic and diluted		$	(0.48	)		$	(0.42	)		$	(1.20	)		$	(1.28	)
Weighted average ordinary shares outstanding—basic and diluted			40,427,199				40,066,922				40,355,124				39,900,910

FAQ

What was Achilles Therapeutics (ACHL) net loss in Q3 2024?

Achilles Therapeutics reported a net loss of $19.6 million ($0.48 per share) for Q3 2024, compared to $16.7 million ($0.42 per share) in Q3 2023.

How much cash does ACHL have as of September 30, 2024?

ACHL had $86.1 million in cash and cash equivalents as of September 30, 2024, plus received an additional $12.8 million R&D tax credit in October 2024.

What strategic changes did ACHL announce in Q3 2024?

ACHL announced the discontinuation of its TIL-based cNeT program, closure of Phase I/IIa CHIRON and THETIS clinical trials, and engagement of BofA Securities to explore strategic options.