Synlogic Reports Fourth Quarter and Full Year 2023 Financial Results
Synlogic, Inc. (Nasdaq: SYBX) reported financial results for Q4 and full year 2023, with revenue growth and decreased net losses. The company decided to discontinue a pivotal study and explore strategic options.
Positive
Revenue growth in Q4 and full year 2023 compared to 2022
Decreased net losses in Q4 and full year 2023 compared to 2022
Decision to discontinue Synpheny-3 study and evaluate strategic options
The recent financial disclosure by Synlogic, Inc. highlights a mixed financial landscape for the company. The reduction in net loss from $66.1 million in the previous year to $57.3 million is a positive development, indicating a tightening of operational costs and potentially more efficient management practices. The decrease in research and development expenses from $13.6 million to $10.2 million, alongside a reduction in general and administrative expenses, suggests a strategic cost-cutting approach.
However, investors should be aware of the implications of discontinuing the Synpheny-3 study, which could signal challenges in the company's pipeline development. This decision may affect future revenue streams and investor confidence and the search for strategic options could lead to various outcomes, including partnerships, mergers, or even a sale of the company. The increase in revenue from $1.2 million to $3.4 million, largely attributed to the collaboration with Roche, demonstrates some level of commercial viability and potential for future collaborations.
From a medical research perspective, the discontinuation of the Synpheny-3 study is significant. Phenylketonuria (PKU) is a rare inherited disorder that requires novel treatments and the cancellation of a pivotal study indicates a setback in providing a new therapeutic option. This could have implications for the company's reputation in the biopharmaceutical industry and its ability to attract investment for future projects.
Moreover, the financial health of a biopharmaceutical company is closely tied to its clinical trial outcomes. The pivot away from labafenogene marselecobac (SYNB1934) may necessitate a reassessment of the company's research focus and strategy. Investors should consider the potential impact on the company's long-term growth prospects and the inherent risks associated with the development of new therapeutics.
Assessing the market implications, Synlogic's financial results and strategic decisions must be contextualized within the broader biopharmaceutical market. The company's collaboration with Roche suggests a level of industry validation and the increase in revenue signals potential for future strategic partnerships. However, the cessation of a major study could be interpreted as a red flag in a highly competitive market where R&D success is a major driver of value.
Investors should monitor the company's next moves closely, as strategic options could reshape its market position. The current cash reserves of $47.7 million provide some runway, but given the high costs associated with biopharmaceutical R&D, the need for additional funding or strategic partnerships is likely. Understanding the company's position in the context of industry trends and competitor successes will be key in evaluating its prospects.
03/19/2024 - 07:00 AM
CAMBRIDGE, Mass., March 19, 2024 (GLOBE NEWSWIRE) -- Synlogic, Inc. (Nasdaq: SYBX), a biopharmaceutical company advancing novel therapeutics to transform the care of serious diseases, today reported financial results for the fourth quarter and full year ending December 31, 2023.
The Company recently announced the decision to discontinue Synpheny-3, its pivotal study of labafenogene marselecobac (SYNB1934) in phenylketonuria (PKU) and evaluate strategic options for the Company.
Fourth Quarter 2023 Financial Results
As of December 31, 2023, Synlogic had cash, cash equivalents, and short-term marketable securities of $47.7 million .
Revenue was $2.8 million for the three months ended December 31, 2023, compared to $0.1 million for the corresponding period in 2022. Revenue in both periods was associated with the research collaboration with Roche. Research and development expenses were $10.2 million for the three months ended December 31, 2023, compared to $13.6 million for the corresponding period in 2022. General and administrative expenses for the three months ended December 31, 2023 were $3.2 million compared to $3.8 million for the corresponding period in 2022.
For the three months ended December 31, 2023, Synlogic reported a consolidated net loss of $14.5 million , or $1.71 per share, compared to a consolidated net loss of $16.7 million , or $3.54 per share, for the corresponding period in 2022.
Full Year 2023 Financial Results
Revenues were $3.4 million for the year ended December 31, 2023, compared to $1.2 million for the same period in 2022. Revenue in both periods was associated with the research collaboration with Roche. Operating expenses were $58.5 million for the year ended December 31, 2023, compared to $68.6 million for the same period in 2022. For the year ended December 31, 2023, consolidated net loss was $57.3 million , or $8.81 per share, compared to a consolidated net loss of $66.1 million , or $13.83 per share, for the year ended December 31, 2022.
About Synlogic
Synlogic is a biopharmaceutical company advancing novel therapeutics to transform the care of serious diseases in need of new treatment options. Synlogic designs, develops and manufactures these drug candidates, which are produced by applying precision genetic engineering to well-characterized probiotics.
Forward Looking Statements
This press release contains "forward-looking statements" that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release regarding strategy, future operations, clinical development plans, future financial position, future revenue, projected expenses, prospects, plans and objectives of management are forward-looking statements. In addition, when or if used in this press release, the words "may," "could," "should," "anticipate," "believe," "look forward," "estimate," "expect," “focused on,” "intend," "on track, " "plan," "predict" and similar expressions and their variants, as they relate to Synlogic, may identify forward-looking statements. Actual results could differ materially from those contained in any forward-looking statements as a result of various factors, including: the Company may not execute its planned exploration and evaluation of strategic alternatives; the availability of suitable third parties with which to conduct contemplated strategic transactions; the risk that the Company's reduction in force efforts may not generate their intended benefits to the extent or as quickly as anticipated; and the risk that the Company's reduction in force efforts may negatively impact the Company's business operations and reputation as well as those risks identified under the heading "Risk Factors" in Synlogic's filings with the U.S. Securities and Exchange Commission. The forward-looking statements contained in this press release reflect Synlogic's current views with respect to future events. Synlogic anticipates that subsequent events and developments will cause its views to change. However, while Synlogic may elect to update these forward-looking statements in the future, Synlogic specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Synlogic's view as of any date subsequent to the date hereof.
Synlogic, Inc. Condensed Consolidated Statements of Operations (unaudited) (in thousands,except share and per share data) For the three months ended For the years ended December 31 December 31 2023 2022 2023 2022 Revenue $ 2,769 $ 106 $ 3,371 $ 1,180 Operating expenses Research and development 10,207 13,639 43,971 52,044 General and administrative 3,203 3,770 14,561 16,555 Total operating expenses 13,410 17,409 58,532 68,599 Loss from operations (10,641 ) (17,303 ) (55,161 ) (67,419 ) Other income (expense), net (3,891 ) 607 (2,107 ) 1,272 Loss before income taxes (14,532 ) (16,696 ) (57,268 ) (66,147 ) Income tax expense (1 ) — (14 ) — Net loss $ (14,533 ) $ (16,696 ) $ (57,282 ) $ (66,147 ) Net loss per share - basic and diluted $ (1.71 ) $ (3.54 ) $ (8.81 ) $ (13.83 ) Weighted-average common shares used in computing net loss per share - basic and diluted 8,523,567 4,716,175 6,502,279 4,781,696
Synlogic, Inc. Condensed Consolidated Balance Sheets (in thousands, except share data) December 31, December 31, 2023 2022 Assets Cash, cash equivalents, & marketable securities $ 47,746 $ 77,629 Property and equipment, net 5,603 7,323 Other assets 22,201 25,913 Total assets $ 75,550 $ 110,865 Liabilities and stockholders' equity Current liabilities $ 20,404 $ 12,122 Long-term liabilities 12,491 16,133 Total liabilities 32,895 28,255 Total stockholders' equity $ 42,655 $ 82,610 Total liabilities and stockholders' equity $ 75,550 $ 110,865 Common stock and common stock equivalents Common stock 9,186,157 4,449,082 Common stock warrants (pre-funded) 2,973,183 169,874 Total common stock 12,159,340 4,618,956
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Contact: info@synlogictx.com
What is Synlogic's ticker symbol?
Synlogic's ticker symbol is SYBX.
What were Synlogic's revenues for Q4 2023?
Synlogic reported revenues of $2.8 million for Q4 2023.
How much was Synlogic's net loss for Q4 2023?
Synlogic reported a consolidated net loss of $14.5 million, or $1.71 per share, for Q4 2023.
What were Synlogic's revenues for full year 2023?
Synlogic reported revenues of $3.4 million for full year 2023.
How much was Synlogic's net loss for full year 2023?
Synlogic reported a consolidated net loss of $57.3 million, or $8.81 per share, for full year 2023.
What study did Synlogic decide to discontinue?
Synlogic decided to discontinue the Synpheny-3 study of labafenogene marselecobac (SYNB1934) in phenylketonuria (PKU).
