Korro Reports First Quarter 2024 Financial Results and Appointment of Kemi Olugemo, M.D. as Chief Medical Officer
Korro Bio (Nasdaq: KRRO) reported its financial results for Q1 2024 and announced the appointment of Dr. Kemi Olugemo as Chief Medical Officer. Significant milestones include a $70 million private placement completed in April 2024, increasing cash reserves to $206 million. This funding extends Korro's cash runway into the second half of 2026. Pipeline progress includes plans for a regulatory filing for KRRO-110, targeting Alpha-1 Antitrypsin Deficiency (AATD), in the latter half of 2024. Interim readout for KRRO-110 is expected in H2 2025, with trial completion in 2026. Financial highlights show a decrease in cash from $166.1 million to $138.8 million and a net loss of $19.6 million for Q1 2024, unchanged from the previous year. R&D expenses dropped to $13.6 million, while G&A expenses rose to $7.9 million.
- Completion of $70 million private placement (PIPE).
- Cash and cash equivalents increased to $206 million.
- Cash runway extended into the second half of 2026.
- Regulatory filing for KRRO-110 in AATD planned for H2 2024.
- Interim Phase 1/2 clinical trial readout for KRRO-110 anticipated in H2 2025.
- Completion of the Phase 1/2 clinical trial for KRRO-110 expected in 2026.
- Appointment of Dr. Kemi Olugemo as Chief Medical Officer, bringing over 10 years of industry experience.
- Net decrease in cash and cash equivalents by $27.3 million.
- Decrease in R&D expenses to $13.6 million, indicating potential reduction in research activities.
- Increase in G&A expenses to $7.9 million, primarily due to higher professional fees, facility costs, and personnel costs.
- Net loss of $19.6 million for Q1 2024, unchanged from the previous year.
Insights
Korro Bio's first quarter financial results present a mixed picture for retail investors. The company's cash position of approximately
The announcement of the regulatory filing for KRRO-110 in the second half of 2024 is significant for investors focusing on Korro Bio's clinical pipeline. KRRO-110 aims to address Alpha-1 Antitrypsin Deficiency (AATD) by leveraging RNA editing technology to correct genetic mutations. This approach could be a game-changer for treating AATD, a condition with limited current therapies. The anticipated interim readout in the second half of 2025 will be a important juncture, providing early efficacy and safety data. Investors should be aware of the high risks associated with clinical development, but also the high rewards if KRRO-110 demonstrates positive results. If successful, the therapy could not only meet a significant unmet medical need but also establish Korro as a leader in RNA-based treatments.
From a market perspective, Korro Bio's strategic moves, including the appointment of Dr. Kemi Olugemo as Chief Medical Officer and the recent
On track for regulatory filing for First-in-Human (FIH) study of KRRO-110 in patients with Alpha-1 Antitrypsin Deficiency (AATD) anticipated in the second half of 2024
Further strengthened balance sheet with closing of
Cash runway into second half of 2026 to fund anticipated interim readout of KRRO-110 in the second half of 2025 and FIH study completion in 2026
Appointed Kemi Olugemo, M.D., FANN as Chief Medical Officer
CAMBRIDGE, Mass., May 14, 2024 (GLOBE NEWSWIRE) -- Korro Bio, Inc. (Korro) (Nasdaq: KRRO), a biopharmaceutical company focused on developing a new class of genetic medicines based on editing RNA for both rare and highly prevalent diseases, today reported financial results for the first quarter of 2024 and provided an update on its recent progress and anticipated milestones.
"Korro’s first quarter performance reflects significant progress on all fronts in a short period of time. Today, we are excited to announce the addition of Dr. Kemi Olugemo as Korro’s Chief Medical Officer. Kemi's leadership experience and deep expertise in drug development will play an integral role in shaping our clinical development strategy and strengthening our organization,” said Dr. Ram Aiyar, CEO and President of Korro. “Completion of our
Pipeline and Business Updates:
- Strengthened cash position with a
$70.0 million PIPE. In April 2024, Korro announced a PIPE of approximately$70.0 million with participation from new and existing investors. The PIPE was led by funds affiliated with Deep Track Capital, with participation from Atlas Venture, Blue Owl Healthcare Opportunities, NEA, Rock Springs Capital, Tri Locum Partners, and other leading healthcare investors. - Progressed KRRO-110 towards a regulatory filing. KRRO-110 is the first RNA editing oligonucleotide product candidate from Korro’s proprietary RNA editing platform OPERA™. KRRO-110 is designed to co-opt an endogenous enzyme, Adenosine Deaminase Acting on RNA (ADAR), to edit the “A” variant on SERPINA1 RNA, repair an amino acid codon, and restore secretion of normal alpha-1 antitrypsin (AAT) protein. This repair of the endogenous protein has the potential to clear protein aggregates from within liver cells to create a potentially clinically differentiated benefit for liver function and to preserve lung function by providing an adequate amount of normal AAT protein.
- Appointed Dr. Kemi Olugemo as Chief Medical Officer. Dr. Olugemo brings more than 10 years of industry experience focused on clinical development and regulatory strategy. She joins Korro after serving as VP & Therapeutic Head, Neurology Global Clinical Development at Ultragenyx Pharmaceutical. In this role, she directed and oversaw the overall strategy for clinical drug product development, supported the development of global regulatory plans, and identified critical opportunities for external collaborations. Dr. Olugemo holds an M.D. from the University of Maryland School of Medicine and a B.Sc. in Clinical Laboratory Science from the University of Massachusetts, Lowell. With her experience in rare and more prevalent diseases, Dr. Olugemo will provide invaluable expertise and leadership to advance Korro’s clinical and regulatory initiatives.
Upcoming Milestones:
- Regulatory filing for KRRO-110 in AATD on track for the second half of 2024.
- Anticipated interim Phase 1/2 clinical trial readout for KRRO-110 in the second half of 2025.
- Completion of the Phase 1/2 clinical trial for KRRO-110 expected in 2026.
First Quarter 2024 Financial Results:
Cash Position: Cash and cash equivalents were
Research and Development (R&D) Expenses: R&D expenses were
General and Administration (G&A) Expenses: G&A expenses were
Net Loss: Korro’s net loss was
About Korro
Korro is a biopharmaceutical company focused on developing a new class of genetic medicines for both rare and highly prevalent diseases using its proprietary RNA editing platform. Korro is generating a portfolio of differentiated programs that are designed to harness the body’s natural RNA editing process to effect a precise yet transient single base edit. By editing RNA instead of DNA, Korro is expanding the reach of genetic medicines by delivering additional precision and tunability, which has the potential for increased specificity and improved long-term tolerability. Using an oligonucleotide-based approach, Korro expects to bring its medicines to patients by leveraging its proprietary platform with precedented delivery modalities, manufacturing know-how, and established regulatory pathways of approved oligonucleotide drugs. Korro is based in Cambridge, Mass. For more information, visit korrobio.com.
Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements include, but are not limited to, express or implied statements regarding expectations, hopes, beliefs, intentions or strategies of Korro regarding the future including, without limitation, express or implied statements regarding: Korro’s planned regulatory filing for KRRO-110 in AATD and timing of any interim data readout and completion of any Phase 1/2 clinical trial; Korro’s cash runway; Korro’s ability to advance its pipeline and the role of RNA editing technology in developing therapeutic options; KRRO-110’s potential as a best-in-class drug candidate for AATD; and the benefits of OPERA; among others. In addition, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “strive,” “would,” “aim,” “target,” “commit,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that statement is not forward looking. Forward-looking statements are based on current expectations and assumptions that, while considered reasonable are inherently uncertain. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, various factors beyond management’s control including risks inherent in biopharmaceutical development; risks associated with pre-clinical studies and clinical trials; and other risks associated with obtaining regulatory approvals and protecting intellectual property; as well as risks associated with general economic conditions; the inability to recognize the anticipated benefits of the merger, which may be affected by, among other things, competition, Korro’s ability to grow and manage growth profitably, maintain relationships with customers and suppliers and retain key employees; costs related to merger; the possibility that Korro may be adversely affected by other economic, business, and/or competitive factors; other risks and uncertainties indicated from time to time in Korro’s filings with the SEC, including Part 1 Item 1A. “Risk Factors” in Korro’s Quarterly Report on Form 10-Q filed with the SEC on the date hereof, as such may be amended or supplemented by its other filings with the SEC. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this press release, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein. Except as required by law, Korro does not undertake or accept any duty to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or in the events, conditions or circumstances on which any such statement is based. This press release does not purport to summarize all of the conditions, risks and other attributes of an investment in Korro.
Korro Contact Information
Investors
IR@korrobio.com
Media
Glenn Silver
FINN Partners
Glenn.silver@finnpartners.com
| Korro Bio, Inc. Condensed Consolidated Statements of Operations (in thousands, except share and per share amounts) (unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| 2024 | 2023 | ||||||
| Operating expenses: | |||||||
| Research and development | $ | 13,572 | $ | 14,694 | |||
| General and administrative | 7,881 | 5,392 | |||||
| Total operating expenses | 21,453 | 20,086 | |||||
| Loss from operations | (21,453 | ) | (20,086 | ) | |||
| Other income: | |||||||
| Other income, net | 1,913 | 481 | |||||
| Total other income, net | 1,913 | 481 | |||||
| Loss before provision for income taxes | (19,540 | ) | (19,605 | ) | |||
| Provision for income taxes | (17 | ) | — | ||||
| Net loss and comprehensive loss | $ | (19,557 | ) | $ | (19,605 | ) | |
| Net loss per share, basic and diluted | $ | (2.44 | ) | $ | (72.20 | ) | |
| Weighted-average shares used in computing net loss per share, basic and diluted | 8,019,626 | 271,522 | |||||
| Korro Bio, Inc. Selected Condensed Consolidated Balance Sheet Data (in thousands) (unaudited) | |||||||
| March 31, 2024 | December 31, 2023 | ||||||
| Cash, cash equivalents and investments | $ | 138,804 | $ | 166,150 | |||
| Working capital (1) | 134,602 | 153,245 | |||||
| Total assets | 197,985 | 221,663 | |||||
| Total liabilities | 46,627 | 51,752 | |||||
| Total stockholders' equity | 151,358 | 169,911 | |||||
| (1) Working capital is defined as current assets less current liabilities. | |||||||
FAQ
What are the key financial highlights for Korro (KRRO) in Q1 2024?
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