Surrozen Reports Third Quarter 2026 Financial Results and Provides Business Update
October financing supports a planned expansion of DUET enrollment, while quarterly losses widened partly from non-cash liability revaluations.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Surrozen (Nasdaq: SRZN) reported a third-quarter net loss of $129.724 million and dosed the first patient in its DUET study. The study evaluates SZN-8141 in diabetic macular edema, a retinal condition. Surrozen plans to expand Phase 2a enrollment from approximately 60 to 150 patients and expects Phase 1b topline data in the second half of 2027, followed by Phase 2a data in 2028.
Quarterly revenue was zero versus $983,000 a year earlier; the prior-year net loss was $71.643 million. The current loss included $113.0 million in non-cash changes in tranche and warrant liability values. October private-placement and at-the-market transactions generated approximately $118.9 million in net proceeds. Including subsequent financing and warrant exercises, pro forma September 30 cash was approximately $220.3 million. Surrozen anticipates cash runway into 2029, covering the expanded DUET study and initial SZN-8143 Phase 1b development.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major pointOctober private-placement and at-the-market transactions generated approximately $118.9 million in net proceeds. 22% of market cap
- Moderate point. Forward-looking: it has not happened yet and may not happen.Surrozen anticipates cash runway into 2029, funding expanded DUET completion and initial SZN-8143 Phase 1b development.
- Minor pointCommon stock warrant exercises after quarter-end generated $1.1 million in net proceeds.
- Minor pointSZN-8141 reached a clinical milestone with the first patient dosed in DUET Phase 1b.
- Minor point. Forward-looking: it has not happened yet and may not happen.DUET Phase 2a enrollment is planned to expand from approximately 60 to 150 patients.
3 minor points
- Minor point. Forward-looking: it has not happened yet and may not happen.DUET topline results are expected in second-half 2027 for Phase 1b and 2028 for Phase 2a.
- Minor point. Forward-looking: it has not happened yet and may not happen.SZN-8141 development is also planned for wet age-related macular degeneration; other retinal vascular diseases are under evaluation.
- Minor pointNine-month revenue increased to $10.000 million from $2.949 million in 2025.
Negative
- Major pointThird-quarter net loss widened to $129.724 million from $71.643 million a year earlier.
- Moderate pointStockholders’ deficit widened to $335.622 million at September 30, 2026, from $187.762 million at December 31, 2025.
- Minor pointThird-quarter basic and diluted loss per share increased to $11.02 from $8.36 a year earlier.
- Minor pointThird-quarter revenue fell to zero from $983,000 following the research collaboration termination effective November 2025.
- Minor pointThird-quarter research and development expenses rose to $10.837 million from $7.774 million a year earlier.
8 minor points
- Minor pointThird-quarter general and administrative expenses rose to $6.805 million from $4.094 million a year earlier.
- Minor pointThird-quarter tranche-liability fair-value loss increased to $73.853 million from $40.748 million a year earlier.
- Minor pointThird-quarter other expense, net, increased to $39.141 million from $20.921 million, primarily from non-cash warrant-liability revaluation.
- Minor pointQuarter-end cash was $100.353 million, below the reported $102.0 million at June 30, 2026.
- Minor pointNine-month net loss widened to $207.052 million from $58.867 million in 2025.
- Minor pointNine-month basic and diluted loss per share increased to $18.06 from $8.49 in 2025.
- Minor pointNine-month research and development expenses rose to $28.649 million from $20.374 million in 2025.
- Minor pointNine-month general and administrative expenses rose to $19.819 million from $12.028 million in 2025.
News Explained
Surrozen closed the final private-placement tranche and raised
Key Figures
- Phase 2a enrollment
- Approximately 60 to 150 patients
- Planned expansion of the DUET study
- Phase 1b topline data
- Second half of 2027
- DUET study
- Phase 2a topline data
- 2028
- DUET study
- Private placement proceeds
- Approximately $95.1 million gross
- Second and final tranche closed in October 2026, before fees and expenses
- At-the-market proceeds
- Approximately $29.8 million net
- Raised in October 2026
- Cash runway
- Into 2029
- Company expectation
- Pro forma cash and cash equivalents
- Approximately $220.3 million
- As of September 30, 2026, including subsequent proceeds
- Net loss
- $129.7 million, versus $71.6 million
- Third quarter 2026 versus third quarter 2025; included $113.0 million in non-cash fair-value losses
Previous Earnings Reports
-
Reported a $71.6 million net loss, including noncash tranche-liability and other expenses.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
pharmacokinetics medical
immunogenicity medical
double-masked medical
intravitreal injection medical
at-the-market offering financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
First patient dosed in Phase 1b of DUET study evaluating SZN-8141 in patients with diabetic macular edema
DUET Phase 2a enrollment to be expanded from approximately 60 to 150 patients to enable a more robust evaluation of SZN-8141 in DME
Topline data from DUET Phase 1b expected in second half of 2027; Phase 2a topline data expected in 2028
Second tranche of March 2025 PIPE and ATM transaction totaling approximately
SOUTH SAN FRANCISCO, Calif., Nov. 09, 2026 (GLOBE NEWSWIRE) -- Surrozen, Inc. (“Surrozen” or the “Company”) (Nasdaq: SRZN), a biotechnology company pioneering targeted therapeutics to harness the power of Wnt signaling to address the underlying drivers of disease in sight-threatening ophthalmic conditions, today announced financial results for the third quarter ended September 30, 2026 and provided a business update.
“We have made important progress advancing Surrozen into its next stage of development, with the first patient dosed in the SZN-8141 DUET study and plans to significantly expand Phase 2a enrollment from approximately 60 to 150 patients,” said Craig Parker, President and Chief Executive Officer of Surrozen. “The additional capital raised in October positions us to generate a more robust clinical dataset across a broader DME population, while maintaining anticipated cash runway into 2029.”
Business Highlights and Recent Developments
SZN-8141
- First patient dosed in DUET Phase 1b/2a clinical study
Surrozen dosed its first patient in the open-label Phase 1b single-ascending-dose portion of DUET, a Phase 1b/2a clinical study evaluating SZN-8141 in patients with diabetic macular edema (DME). The Phase 1b portion is designed to evaluate safety and tolerability, as well as pharmacokinetics, immunogenicity and exploratory measures of biological and clinical activity.
- DUET Phase 2a enrollment to be expanded from approximately 60 to 150 patients
Surrozen plans to expand the randomized, double-masked Phase 2a portion of DUET from approximately 60 to 150 patients. The expanded Phase 2a is expected to evaluate two dose levels of SZN-8141 compared with Vabysmo® (faricimab-svoa) in patients with DME and include both treatment-naïve and treatment-experienced patients. The expanded study is designed to provide a more robust clinical dataset across dose levels and a broader DME patient population.
Corporate and Financial
- Closed second and final tranche of March 2025 private placement
In October 2026, Surrozen closed the second and final tranche of its March 2025 private placement, generating approximately$95.1 million in gross proceeds before deducting placement agent fees and other offering expenses.
- Strengthened balance sheet through October ATM transaction
In October 2026, Surrozen raised approximately$29.8 million in net proceeds through its at-the-market offering program, further strengthening its balance sheet and supporting the expansion of the DUET Phase 2a study.
- Anticipated cash runway into 2029
The Company anticipates its cash, cash equivalents and marketable securities to provide cash runway into 2029, including funding for completion of the expanded DUET Phase 1b/2a study of SZN-8141 and initial Phase 1b clinical development of SZN-8143.
Third Quarter 2026 Financial Highlights
- Cash Position: Cash and cash equivalents were
- Revenue:
- Research Service Revenue – Related Party: Research service revenue from a related party was zero for the quarter ended September 30, 2026, compared to
$1.0 million for the same period in 2025 as a result of the termination of the research collaboration with TCGFB, Inc., effective November 2025.
- Operating Expenses:
- Research and Development Expenses: R&D expenses were
$10.8 million for the quarter ended September 30, 2026, compared to$7.8 million for the same period in 2025, primarily reflecting a$2.1 million increase in research and manufacturing costs for the Company’s ophthalmology programs and a$0.9 million increase in employee-related expenses primarily related to stock-based compensation. - General and Administrative Expenses: G&A expenses were
$6.8 million for the quarter ended September 30, 2026, compared to$4.1 million for the same period in 2025, due to a$1.7 million increase in employee-related expenses primarily related to stock-based compensation and a$0.9 million increase in professional service fees, primarily related to intellectual property portfolio legal fees.
- Other Income and Expenses:
- Interest Income: Interest income was
$0.9 million for both the quarter ended September 30, 2026 and the same period in 2025. - Loss on Change in Fair Value of Tranche Liability: Loss on change in fair value of tranche liability related to the March 2025 private placement was
$73.9 million for the quarter ended September 30, 2026, compared to$40.7 million for the same period in 2025, attributable to the non-cash change in fair value of tranche liability, which was primarily driven by the increase in the Company’s stock price over the period. - Other Expense, Net: Other expense, net was
$39.1 million for the quarter ended September 30, 2026, compared to$20.9 million for the same period in 2025, primarily driven by the non-cash change in fair value of warrant liabilities.
- Net Loss: Net loss was
Surrozen’s Ophthalmology Portfolio
About SZN-8141 for Retinal Diseases
Surrozen is developing SZN-8141 as an intravitreal injection for the treatment of DME and neovascular age-related macular degeneration (wet AMD). SZN-8141 combines Frizzled 4 (FZD4)-mediated Wnt agonism and vascular endothelial growth factor (VEGF) antagonism and has the potential to provide benefits over treatment with single mechanism agents against these targets. The current standard of care for diabetic retinopathy (including DME), retinal vein occlusion and wet AMD is intravitreal administration of anti-VEGF therapies, including monotherapies and dual-pathway agents targeting VEGF and Ang-2. In addition, Merck’s remigromig, a FZD4-mediated Wnt agonist monotherapy, achieved its primary endpoint in a Phase 2b/3 clinical trial in DME, supporting the therapeutic potential of Wnt pathway activation in retinal vascular disease. The Company believes SZN-8141 has the potential to treat multiple retinopathy indications and be differentiated from existing therapies. Data generated in preclinical models of retinopathy demonstrated that SZN-8141 stimulated Wnt signaling and induced normal retinal vessel regrowth while suppressing pathological vessel growth.
About DUET
The Phase 1b/2a DUET study is designed to assess the safety, tolerability, and early signs of biological and clinical activity of SZN-8141. The trial consists of an open-label Phase 1b single-ascending-dose portion enrolling both treatment-naïve and previously treated patients with DME (Part 1), followed by a randomized, double-masked Phase 2a dose-expansion portion in both treatment-experienced and treatment-naïve patients with DME (Part 2). In Part 1, patients will receive a single intravitreal injection of SZN-8141 and be followed for approximately three months to evaluate safety and tolerability, as well as pharmacokinetics, immunogenicity, and exploratory measures of retinal function and anatomy including best-corrected visual acuity (BCVA), optical coherence tomography (OCT), OCT angiography (OCT-A), and ultra-widefield fluorescein angiography. Part 2 is expected to evaluate two dose levels of SZN-8141 compared with Vabysmo® (faricimab-svoa) in approximately 150 patients with DME. Patients are planned to receive three monthly doses followed by an additional four-month follow-up period to assess durability of effect. Key outcome measures include the same functional and anatomic measurements as in Part 1. Topline data from the DUET Phase 1b are expected in the second half of 2027, with topline data from the DUET Phase 2a expected in 2028. The Company is also planning to develop SZN-8141 in neovascular age-related macular degeneration and is evaluating development in other retinal vascular diseases.
About SZN-8143 for Retinal Diseases
Surrozen is developing SZN-8143 for the treatment of DME, wet AMD, and uveitic macular edema (UME). SZN-8143 combines FZD4 agonism, VEGF antagonism, and interleukin-6 (IL-6) antagonism and may have benefits over single mechanism agents against these targets. The current standard of care for diabetic retinopathy (including DME), retinal vein occlusion and wet AMD is intravitreal administration of anti-VEGF therapies, including monotherapies and dual-pathway agents targeting VEGF and Ang-2. IL-6 antagonism has also demonstrated clinical activity in DME and UME. In addition, Merck’s remigromig, a FZD4 monotherapy, achieved its primary endpoint in a Phase 2b/3 clinical trial in DME, supporting the therapeutic potential of Wnt pathway activation in retinal vascular disease. The Company believes SZN-8143 has the potential to treat multiple retinopathy indications and be differentiated from existing therapies. Data generated in preclinical models of retinopathy demonstrated that SZN-8143 stimulated Wnt signaling and induced normal retinal vessel regrowth while suppressing pathological vessel growth.
About Surrozen
Surrozen is a biotechnology company, pioneering a new class of Wnt-based therapeutics designed to harness the power of Wnt signaling to treat sight-threatening ophthalmic conditions. Built on deep scientific expertise and a proprietary antibody-engineering platform, Surrozen develops multifunctional biologics that selectively activate Wnt signaling in combination with other key disease pathways. Surrozen’s approach aims to deliver best-in-class, durable therapies that have the potential to transform patient outcomes in some of the most pressing unmet medical needs in ocular diseases. For more information, visit www.surrozen.com.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally are accompanied by words such as “will,” “plan,” “intend,” “potential,” “expect,” “could,” or the negative of these words and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding Surrozen’s cash runway into 2029 (including completion of the DUET Phase 1b/2a study of SZN-8141 and initial Phase 1b clinical development of SZN-8143) and Surrozen’s discovery, research and development activities, in particular its development plans for its product candidates (including anticipated clinical development plans and timelines, such as the availability of data, such as topline data from the DUET Phase 1b being expected in the second half of 2027, topline data from the DUET Phase 2a being expected in 2028, Surrozen’s plan to develop SZN-8141 in neovascular age-related macular degeneration, the potential for such product candidates to be used to treat human disease or address unmet needs in serious eye diseases, as well as the potential benefits and potential differentiation from existing therapies of such product candidates, and the anticipated use of proceeds from the second closing of the private placement). These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the management of Surrozen and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on as a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Surrozen. These forward-looking statements are subject to a number of risks and uncertainties, including the initiation, cost, timing, progress and results of research and development activities, preclinical and clinical trials with respect to its product candidates and potential future drug candidates; the Company’s ability to fund its preclinical and clinical trials and development efforts, whether with existing funds or through additional fundraising; Surrozen’s ability to identify, develop and commercialize drug candidates; Surrozen’s ability to successfully complete preclinical and clinical studies for its product candidates; the effects that arise from volatility in global economic, political, regulatory and market conditions; and all other factors discussed in Surrozen’s Annual Report on Form 10-K for the year ended December 31, 2025, and Surrozen’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2026 filed with the Securities and Exchange Commission (“SEC”) under the heading “Risk Factors,” and other documents Surrozen has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Surrozen presently does not know, or that Surrozen currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Surrozen’s expectations, plans, or forecasts of future events and views as of the date of this press release. Surrozen anticipates that subsequent events and developments will cause its assessments to change. However, while Surrozen may elect to update these forward-looking statements at some point in the future, Surrozen specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing Surrozen’s assessments of any date after the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
Investor/Media Contact:
Email: Investorinfo@surrozen.com
| SURROZEN, INC. | ||||||||||||||||
| Unaudited Condensed Consolidated Statements of Operations | ||||||||||||||||
| and Comprehensive Loss | ||||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Collaboration and license revenue | $ | — | $ | — | $ | 10,000 | $ | — | ||||||||
| Research service revenue – related party | — | 983 | — | 2,949 | ||||||||||||
| Total revenue | — | 983 | 10,000 | 2,949 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 10,837 | 7,774 | 28,649 | 20,374 | ||||||||||||
| General and administrative | 6,805 | 4,094 | 19,819 | 12,028 | ||||||||||||
| Total operating expenses | 17,642 | 11,868 | 48,468 | 32,402 | ||||||||||||
| Loss from operations | (17,642 | ) | (10,885 | ) | (38,468 | ) | (29,453 | ) | ||||||||
| Interest income | 912 | 911 | 2,762 | 2,232 | ||||||||||||
| Loss on amendment and cancellation of warrants | — | — | — | (2,073 | ) | |||||||||||
| Loss on execution of the 2025 PIPE | — | — | — | (71,084 | ) | |||||||||||
| Gain (loss) on change in fair value of tranche liability | (73,853 | ) | (40,748 | ) | (111,460 | ) | 7,112 | |||||||||
| Gain on settlement of tranche liability | — | — | — | 1,117 | ||||||||||||
| Other income (expense), net | (39,141 | ) | (20,921 | ) | (59,886 | ) | 33,282 | |||||||||
| Net loss and comprehensive loss | $ | (129,724 | ) | $ | (71,643 | ) | $ | (207,052 | ) | $ | (58,867 | ) | ||||
| Net loss per share attributable to Common stockholders, basic and diluted | $ | (11.02 | ) | $ | (8.36 | ) | $ | (18.06 | ) | $ | (8.49 | ) | ||||
| Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 11,774 | 8,571 | 11,465 | 6,931 | ||||||||||||
SURROZEN, INC.
Condensed Consolidated Balance Sheets
(In thousands)
| September 30, | December 31, | |||||||
| 2026 | 2025(1) | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 100,353 | $ | 89,245 | ||||
| Accounts receivable - related party | — | 208 | ||||||
| Prepaid expenses and other current assets | 2,534 | 2,106 | ||||||
| Total current assets | 102,887 | 91,559 | ||||||
| Property and equipment, net | 432 | 433 | ||||||
| Operating lease right-of-use assets | 4,650 | 6,000 | ||||||
| Restricted cash | 635 | 688 | ||||||
| Other assets | 431 | 46 | ||||||
| Total assets | $ | 109,035 | $ | 98,726 | ||||
| Liabilities and stockholders’ deficit | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 652 | $ | 728 | ||||
| Accrued and other liabilities | 10,910 | 7,912 | ||||||
| Lease liabilities, current portion | 2,050 | 1,290 | ||||||
| Total current liabilities | 13,612 | 9,930 | ||||||
| Lease liabilities, noncurrent portion | 3,787 | 5,349 | ||||||
| Tranche liability | 270,122 | 158,662 | ||||||
| Warrant liabilities | 157,136 | 112,547 | ||||||
| Total liabilities | 444,657 | 286,488 | ||||||
| Stockholders’ deficit: | ||||||||
| Preferred stock | — | — | ||||||
| Common stock | 1 | 1 | ||||||
| Additional paid-in-capital | 398,714 | 339,522 | ||||||
| Accumulated deficit | (734,337 | ) | (527,285 | ) | ||||
| Total stockholders’ deficit | (335,622 | ) | (187,762 | ) | ||||
| Total liabilities and stockholders’ deficit | $ | 109,035 | $ | 98,726 | ||||
(1) Derived from the audited consolidated financial statements, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
When does Surrozen expect DUET trial results for SZN-8141?
Surrozen expects Phase 1b topline data in the second half of 2027 and Phase 2a topline data in 2028. DUET evaluates SZN-8141 in patients with diabetic macular edema.
How much cash does Surrozen have after its October 2026 financing?
Pro forma cash and cash equivalents were approximately $220.3 million as of September 30, 2026, including subsequent financing and warrant exercises. October transactions included approximately $95.1 million in gross private-placement proceeds, $29.8 million in net at-the-market proceeds and $1.1 million in net warrant-exercise proceeds.
How will Surrozen's DUET Phase 2a study compare SZN-8141 with Vabysmo?
The randomized, double-masked Phase 2a study is expected to compare two dose levels of SZN-8141 with Vabysmo in both treatment-naïve and treatment-experienced patients. Patients are planned to receive three monthly doses followed by an additional four-month follow-up period to assess how long the effect lasts.
What does Surrozen's DUET Phase 1b study measure?
DUET Phase 1b evaluates safety and tolerability after a single injection into the eye, with approximately three months of follow-up. It also examines drug exposure, immune responses and exploratory measures of retinal function and anatomy, including visual acuity and retinal imaging.