Aclaris Therapeutics Reports Fourth Quarter and Full Year 2024 Financial Results and Provides a Corporate Update

Rhea-AI Summary

Aclaris Therapeutics (NASDAQ: ACRS) reported its Q4 and full-year 2024 financial results, highlighting multiple clinical catalysts expected in 2025. The company ended 2024 with $203.9 million in cash and equivalents, extending runway into 2028.

Key financial metrics include a Q4 net loss of $96.6 million compared to $1.5 million in Q4 2023, and total revenue of $9.2 million versus $17.6 million in the prior year period. R&D expenses decreased to $9.0 million from $26.6 million year-over-year.

Notable developments include:

• Acquisition of worldwide rights (excluding Greater China) to bosakitug (ATI-045) and ATI-052 from Biosion
• Expected Phase 2 data from CTTQ's studies in severe asthma and CRSwNP in H1 2025
• Planned initiation of Phase 2b trial for bosakitug in atopic dermatitis in H1 2025
• Completion of $80 million private placement in November 2024

Positive

• Cash position strengthened to $203.9M, extending runway into 2028
• $80M private placement completed in November 2024
• R&D expenses decreased by $17.6M in Q4 2024 vs Q4 2023
• Pipeline expanded with potential best-in-class assets (bosakitug and ATI-052)

Negative

• Q4 net loss increased to $96.6M from $1.5M year-over-year
• Q4 revenue declined to $9.2M from $17.6M year-over-year
• $86.9M one-time R&D charge for in-license acquisition

Insights

Financial Analyst

Aclaris Therapeutics' Q4 and full-year 2024 results reveal a strategic pivot toward high-potential immunology assets while significantly extending financial runway. The company's $96.6 million Q4 net loss (vs $1.5M in Q4 2023) reflects substantial investment in pipeline expansion rather than operational deterioration, with $86.9 million attributed to the Biosion licensing transaction for two potentially best-in-class biologics.

The acquisition of bosakitug (anti-TSLP antibody) and ATI-052 (TSLP/IL4R bispecific) represents a calculated strategic bet on validated immunology targets. TSLP inhibition has already proven clinically meaningful with Tezspire (tezepelumab), but Aclaris is positioning these assets as potential best-in-class alternatives in the multi-billion dollar markets for asthma, atopic dermatitis, and chronic rhinosinusitis.

The company's strengthened $203.9 million cash position (up from $181.9M YoY) following an $80 million private placement extends runway into 2028, providing ample cushion through multiple clinical readouts. This runway gives management flexibility to advance programs independently rather than relying on partnerships or dilutive financing during development.

Operational expenses show disciplined resource allocation with R&D expenses decreasing to $9.0 million from $26.6M YoY, reflecting strategic prioritization of the most promising assets. The 2025 catalyst calendar is particularly compelling, featuring multiple Phase 2 readouts that could validate the company's pipeline approach and potentially drive significant valuation inflection points.

Leadership changes further strengthen execution capabilities, with founding CEO Dr. Neal Walker returning permanently and the addition of Hugh Davis bringing 35+ years of biologics development expertise - particularly valuable given the company's expanded focus on antibody therapeutics. This executive team appears well-positioned to navigate the upcoming clinical and regulatory milestones.

Biotechnology Analyst

Aclaris' strategic expansion into biologics represents a significant pivot toward validated immunology targets with substantial market potential. The acquisition of bosakitug (anti-TSLP antibody) positions the company in direct competition with AstraZeneca/Amgen's Tezspire, but with potential differentiation through improved potency, dosing convenience, or superior efficacy in specific indications.

The scientific rationale for targeting TSLP is compelling - this epithelial-derived cytokine acts as an upstream mediator in multiple type 2 inflammatory pathways, potentially offering broader efficacy than agents targeting downstream cytokines like IL-4, IL-5, or IL-13 individually. The bispecific ATI-052 (targeting both TSLP and IL4R) represents an even more intriguing approach that could theoretically provide superior efficacy to dupilumab by simultaneously blocking two critical nodes in allergic inflammation.

The upcoming CTTQ data in severe asthma and chronic rhinosinusitis with nasal polyps will be particularly informative, as positive results would validate bosakitug's mechanism while providing clinical differentiation evidence. These indications represent multi-billion dollar markets with substantial unmet needs despite recent biologic approvals.

Aclaris' parallel development in atopic dermatitis is strategically sound, as this indication typically requires lower doses than respiratory conditions, potentially allowing for faster development timelines and earlier commercialization. The company's dual approach with both bosakitug (biologics) and ATI-2138 (small molecule) in AD provides multiple shots on goal in this competitive space.

The addition of Hugh Davis as President/COO is particularly noteworthy given his extensive biologics experience - a critical capability as the company transitions from primarily small molecule development to a mixed portfolio. This leadership enhancement, coupled with the extended cash runway into 2028, positions Aclaris to potentially advance these programs independently through proof-of-concept rather than partnering prematurely, preserving significant value creation potential for shareholders.

- Rich Catalyst Calendar Expected in 2025 Including Phase 2 Data in Multiple Immuno-Inflammatory Disease Indications -

- Data from CTTQ’s Phase 2 Studies of Bosakitug (ATI-045) in Chinese Patients with Severe Asthma and Chronic Rhinosinusitis with Nasal Polyps (CRSwNP) Expected in the First Half of 2025 to Inform Internal Development Programs -

- Initiation of Enrollment in Phase 2b Trial for Bosakitug in Atopic Dermatitis (AD) on Track for the First Half of 2025 -

- Cash Runway Expected into 2028 -

WAYNE, Pa., Feb. 27, 2025 (GLOBE NEWSWIRE) -- Aclaris Therapeutics, Inc. (NASDAQ: ACRS), a clinical-stage biopharmaceutical company focused on developing novel drug candidates for immuno-inflammatory diseases, today announced its financial results for the fourth quarter and full year ended 2024 and provided a corporate update.

“2024 was a transformative year that has positioned Aclaris with multiple clinical catalysts expected in 2025 across our expanded pipeline,” stated Dr. Neal Walker, Chief Executive Officer and Chair of the Board of Directors of Aclaris. “We are particularly excited about the upcoming Phase 2 data for bosakitug in both severe asthma and chronic rhinosinusitis with nasal polyps anticipated from our partner CTTQ, which we expect will provide important insights into our future development of bosakitug in respiratory diseases. We also anticipate top-line data from our Phase 2a trial of ATI-2138 in atopic dermatitis in the first half of 2025. With multiple clinical catalysts expected throughout 2025 across our pipeline of differentiated assets with mechanisms shown to have proven activity in the diseases we are addressing, we look to drive continued innovation for the patients we seek to treat.”

Fourth Quarter 2024 Highlights and Recent Updates

Pipeline:

• Announced Exclusive, Global License Agreement with Biosion, Inc., Adding Potential Best-in-Class Biologic Assets to Pipeline: Aclaris acquired worldwide rights (excluding Greater China) to bosakitug (ATI-045), a potential best-in-class, clinical-stage, novel anti-TSLP monoclonal antibody, and ATI-052, a potential best-in-class, pre-clinical stage, novel bispecific antibody that is directed against both TSLP and IL4R. As a result of this license agreement, the Company recorded a one-time $86.9 million in-process research and development charge. (press release here)
• Confirmed Expectation of Phase 2 Data in the First Half of 2025 for Bosakitug in Chinese Patients with Certain Pulmonary Disorders: Aclaris’ regional partner, Chia Tai Tianqing Pharmaceutical Group, Co., Ltd. (CTTQ), is conducting concurrent Phase 2 studies in China for patients with severe asthma, CRSwNP, and chronic obstructive pulmonary disease. Data from trials in severe asthma and CRSwNP expected in first half of 2025 to inform internal development programs.
• Initiated Clinical Trial Activities for a Phase 2b Trial of Bosakitug in Atopic Dermatitis (AD); Enrollment Expected to Begin in the First Half of 2025: This trial will investigate the safety, tolerability, pharmacokinetics, efficacy, and pharmacodynamics of bosakitug in patients with moderate to severe AD.
• Confirmed Expectation of Top Line Results in the First Half of 2025 for Phase 2a Trial in AD of ATI-2138, an Investigational Oral Covalent ITK/JAK3 Inhibitor: This ongoing Phase 2a open-label trial is being conducted to investigate the safety, tolerability, pharmacokinetics, efficacy, and pharmacodynamics of ATI-2138 in patients with moderate to severe AD.
• Announced Plan to File an Investigational New Drug (IND) Application for ATI-052 in the First Quarter of 2025: Following allowance of the IND, Aclaris expects to initiate a Phase 1 clinical trial evaluating single ascending doses and multiple ascending doses of ATI-052.
• Announced New Publication Highlighting the Unique Properties of ATI-2138: New publication provides important clinical and non-clinical evidence of the potential for ATI-2138 to be a best-in-class inhibitor of key signal transduction kinases due to its unique mechanism of action. (press release here)

Corporate:

• Completed $80 Million Private Placement in November 2024 to Bolster Cash Runway: Aclaris’ cash runway expected into 2028. (press release here)
• Provided Update on Senior Leadership:
  • Dr. Neal Walker, formerly interim Chief Executive Officer, has been named Chief Executive Officer. Dr. Walker is a co-founder of Aclaris and has served as a member of the Board of Directors since its inception. He previously served as Aclaris’ Chief Executive Officer until 2022 before being appointed as interim Chief Executive Officer in January 2024. Dr. Walker serves as Chair of the Board of Directors of Aclaris.
  • Hugh Davis, Ph.D. joined Aclaris as President and Chief Operating Officer. Dr. Davis brings over 35 years of experience in biologics development, clinical pharmacology, and business development to Aclaris. He most recently served as Biosion’s Chief Business & Development Officer and President.
  • William Roberts has been appointed as Senior Vice President, Corporate Communications and Investor Relations. Mr. Roberts brings 30 years of corporate communications, investor relations, and scientific experience in the biotech/biopharma industry to the Company. He most recently served as the Communications Officer of G1 Therapeutics, which was recently acquired by Pharmacosmos Group.
    

Fourth Quarter and Full Year 2024 Financial Results

As of December 31, 2024, Aclaris had aggregate cash, cash equivalents and marketable securities of $203.9 million compared to $181.9 million as of December 31, 2023. The Company believes that its cash, cash equivalents and marketable securities as of December 31, 2024 will be sufficient to fund its operations into 2028, without giving effect to any potential business development transactions or financing activities.

Net loss was $96.6 million for the fourth quarter of 2024 compared to $1.5 million for the fourth quarter of 2023. Net loss was $132.1 million for the year ended December 31, 2024 compared to $88.5 million for the year ended December 31, 2023.

Total revenue was $9.2 million for the fourth quarter of 2024 compared to $17.6 million for the fourth quarter of 2023. The decrease was primarily driven by a one-time upfront payment under the license agreement with Sun Pharmaceutical Industries, Inc. received in the fourth quarter of 2023, offset by the achievement of a commercial milestone under the license agreement with Eli Lilly and Company in the fourth quarter of 2024. Total revenue was $18.7 million for the year ended December 31, 2024 compared to $31.2 million for the year ended December 31, 2023.

Research and development (R&D) expenses were $9.0 million for the quarter ended December 31, 2024 compared to $26.6 million for the prior year period. The $17.6 million decrease was primarily the result of lower zunsemetinib development expenses, lepzacitinib preclinical and clinical development activities, and compensation-related expenses. For the year ended December 31, 2024, R&D expenses were $33.6 million compared to $98.4 million for the year ended December 31, 2023.

General and administrative (G&A) expenses were $5.0 million for the quarter ended December 31, 2024 compared to $8.2 million for the corresponding prior year period. The decrease was primarily due to a reduction in personnel and stock-based compensation expenses. For the year ended December 31, 2024, G&A expenses were $22.2 compared to $32.4 million for the year ended December 31, 2023, primarily due to lower compensation-related costs.

Licensing expenses were $8.6 million for the quarter ended December 31, 2024 compared to $5.7 million for the prior year period. The increase was primarily attributable to a milestone achieved during the fourth quarter of 2024, the entirety of which was payable to a third party. For the year ended December 31, 2024, licensing expenses were $12.7 million compared to $14.7 million for the year ended December 31, 2023.

Revaluation of contingent consideration resulted in a $1.3 million gain for the quarter ended December 31, 2024 compared to a $26.3 million gain for the prior year period. For the year ended December 31, 2024, revaluation of contingent consideration resulted in a charge of $2.5 million compared to a $26.9 million gain for the year ended December 31, 2023.

During the quarter and year ended December 31, 2024, the Company recorded $86.9 million of in-process research and development expenses, representing the fair value of consideration expensed in connection with the in-license of bosakitug (ATI-045) and ATI-052, as well as transaction costs incurred. During the quarter ended December 31, 2023, the Company recorded an intangible asset impairment charge of $6.6 million representing the full balance of its in-process research and development intangible asset.

About Aclaris Therapeutics, Inc.

Aclaris Therapeutics, Inc. is a clinical-stage biopharmaceutical company developing a pipeline of novel drug candidates to address the needs of patients with immuno-inflammatory diseases who lack satisfactory treatment options. The company has a multi-stage portfolio of drug candidates powered by a robust R&D engine. For additional information, please visit www.aclaristx.com and follow Aclaris on X (formerly Twitter) at @AclarisTx and on LinkedIn.

Cautionary Note Regarding Forward-Looking Statements

Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “anticipate,” “believe,” “expect,” “intend,” “may,” “plan,” “potential,” “will,” and similar expressions, and are based on Aclaris’ current beliefs and expectations. These forward-looking statements include expectations regarding its plans for its development programs, the clinical development of its product candidates, including enrolling trials, the timing of data from trials and the timing of submitting an IND for ATI-052, and the sufficiency of its cash, cash equivalents and marketable securities to fund its operations into 2028. These statements involve risks and uncertainties that could cause actual results to differ materially from those reflected in such statements. Risks and uncertainties that may cause actual results to differ materially include uncertainties inherent in the conduct of clinical trials, Aclaris’ reliance on third parties over which it may not always have full control, Aclaris’ ability to enter into strategic partnerships on commercially reasonable terms, the uncertainty regarding the macroeconomic environment and other risks and uncertainties that are described in the Risk Factors section of Aclaris’ Annual Report on Form 10-K for the year ended December 31, 2024, and other filings Aclaris makes with the U.S. Securities and Exchange Commission from time to time. These documents are available under the “SEC Filings” page of the “Investors” section of Aclaris’ website at www.aclaristx.com. Any forward-looking statements speak only as of the date of this press release and are based on information available to Aclaris as of the date of this release, and Aclaris assumes no obligation to, and does not intend to, update any forward-looking statements, whether as a result of new information, future events or otherwise.

Aclaris Therapeutics Contacts:

Kevin Balthaser
Chief Financial Officer
(484) 329-2178
kbalthaser@aclaristx.com

Will Roberts
Senior Vice President
Corporate Communications and Investor Relations
(484) 329-2125
wroberts@aclaristx.com

Aclaris Therapeutics, Inc. Consolidated Statements of Operations (unaudited, in thousands, except share and per share data)
		Three Months Ended								Year Ended
		December 31,								December 31,
		2024				2023				2024				2023
Revenues:
Contract research		$	615			$	566			$	2,541			$	3,035
Licensing			8,596				17,004				16,179				28,214
Total revenue			9,211				17,570				18,720				31,249
Costs and expenses:
Cost of revenue (1)			705				725				2,792				3,423
Research and development (1)			9,026				26,646				33,586				98,384
General and administrative (1)			4,954				8,214				22,203				32,412
Licensing			8,596				5,703				12,666				14,658
Revaluation of contingent consideration			(1,300	)			(26,300	)			2,500				(26,900	)
In-process research and development			86,905				6,629				86,905				6,629
Total costs and expenses			108,886				21,617				160,652				128,606
Loss from operations			(99,675	)			(4,047	)			(141,932	)			(97,357	)
Other income:
Interest income			2,103				2,189				7,953				8,509
Non-cash royalty income			1,020				—				1,914				—
Total other income			3,123				2,189				9,867				8,509
Loss before income taxes			(96,552	)			(1,858	)			(132,065	)			(88,848	)
Income tax benefit			—				(367	)			—				(367	)
Net loss		$	(96,552	)		$	(1,491	)		$	(132,065	)		$	(88,481	)
Net loss per share, basic and diluted		$	(1.01	)		$	(0.02	)		$	(1.71	)		$	(1.27	)
Weighted average common shares outstanding, basic and diluted			95,305,768				70,866,315				77,296,665				69,808,855
(1)   Amounts include stock-based compensation expense as follows:
Cost of revenue		$	231			$	337			$	938			$	1,456
Research and development			943				(2,367	)			3,135				6,801
General and administrative			1,686				3,296				6,783				12,285
Total stock-based compensation expense		$	2,860			$	1,266			$	10,856			$	20,542

Aclaris Therapeutics, Inc. Selected Consolidated Balance Sheet Data (unaudited, in thousands, except share data)
		December 31, 2024			December 31, 2023
Cash, cash equivalents and marketable securities		$	203,896		$	181,877
Total assets		$	220,327		$	197,405
Total current liabilities		$	31,596		$	30,952
Total liabilities		$	64,773		$	40,226
Total stockholders' equity		$	155,554		$	157,179
Common stock outstanding			107,850,124			70,894,889

Aclaris Therapeutics, Inc. Selected Consolidated Cash Flow Data (unaudited, in thousands)
		Year Ended December 31, 2024				Year Ended December 31, 2023
Net loss		$	(132,065	)		$	(88,481	)
Depreciation and amortization			807				863
Stock-based compensation expense			10,856				20,542
Revaluation of contingent consideration			2,500				(26,900	)
In-process research and development expense			86,905				6,629
Deferred taxes			—				(367	)
Changes in operating assets and liabilities			10,922				9,389
Net cash used in operating activities		$	(20,075	)		$	(78,325	)

FAQ

What caused ACRS's increased net loss in Q4 2024?

The increased net loss was primarily due to an $86.9M one-time in-process R&D charge related to the acquisition of bosakitug and ATI-052 from Biosion.

How long will ACRS's current cash runway last?

Aclaris's cash position of $203.9M is expected to fund operations into 2028, excluding potential business development or financing activities.

What are the key clinical milestones expected for ACRS in 2025?

Phase 2 data for bosakitug in severe asthma and CRSwNP (H1 2025), Phase 2b trial initiation in atopic dermatitis (H1 2025), and Phase 2a results for ATI-2138 in AD (H1 2025).

How much did ACRS's Q4 2024 revenue decrease compared to Q4 2023?

Revenue decreased by $8.4M, from $17.6M in Q4 2023 to $9.2M in Q4 2024, primarily due to differences in one-time payments and milestones.

What major acquisition did ACRS complete in 2024?

ACRS acquired worldwide rights (excluding Greater China) to bosakitug (ATI-045) and ATI-052 from Biosion, expanding their pipeline with potential best-in-class assets.