Silence Therapeutics Reports Second Quarter 2024 Financial Results and Recent Business Highlights

Rhea-AI Summary

Silence Therapeutics (Nasdaq: SLN) reported its Q2 2024 financial results and business highlights. Key points include:

• Positive clinical results for zerlasiran in cardiovascular disease and divesiran in hematological diseases
• $120 million equity raise and collaboration milestones strengthening financial position
• Cash position of £149.6 million ($189.2 million) as of June 30, 2024
• Collaboration revenue of £12.9 million for H1 2024
• Net loss of £17.4 million for H1 2024

The company is advancing its siRNA technology and evaluating partnering opportunities for its mRNAi GOLD™ platform and zerlasiran program.

Positive

• Positive topline 48-week data from ALPACAR-360 Phase 2 study of zerlasiran
• Positive results from SANRECO Phase 1 study of divesiran in polycythemia vera patients
• $2.0 million research milestone payment received from Hansoh collaboration
• Cash position increased to £149.6 million ($189.2 million) from £50.2 million year-over-year
• R&D expenses decreased to £20.2 million from £25.2 million year-over-year

Negative

• Net loss of £17.4 million for H1 2024
• Collaboration revenue decreased to £12.9 million from £20.2 million year-over-year

Insights

Financial Analyst

Silence Therapeutics' Q2 2024 results show a mixed financial picture. While cash position significantly improved to £149.6 million from £50.2 million year-over-year, largely due to a $120 million equity raise, collaboration revenue declined. R&D expenses decreased by 12.7% to £11.0 million, reflecting efficient clinical study management. However, the net loss widened to £15.6 million from £10.4 million in Q2 2023.

The company's strong cash position provides runway for key clinical objectives, but the decline in collaboration revenue from £9.0 million to £0.6 million is concerning. This drop suggests a need to secure new partnerships or milestone payments to sustain long-term growth. The slight increase in G&A expenses amid revenue decline also warrants attention.

Overall, while Silence's financial position appears stable for near-term operations, the widening net loss and revenue decline pose challenges for long-term sustainability without significant clinical or partnership breakthroughs.

Medical Research Analyst

Silence Therapeutics' clinical progress is promising. The positive 48-week data from the ALPACAR-360 Phase 2 study of zerlasiran showed sustained reductions in Lp(a), a key cardiovascular risk factor. This supports advancement to Phase 3, potentially addressing a significant unmet medical need.

Similarly, divesiran's performance in the SANRECO Phase 1 study for polycythemia vera is encouraging. Eliminating the need for phlebotomy in well-controlled patients could significantly improve quality of life for PV patients. The positive tolerability profile for both drugs is important for their future development.

These clinical advancements, coupled with the $2.0 million research milestone from Hansoh, validate Silence's siRNA technology platform. However, it's important to note that both programs are still in early to mid-stage development and success in later-stage trials is critical for commercial viability.

Market Research Analyst

Silence Therapeutics is positioning itself well in the competitive RNA therapeutics market. The positive clinical results for both zerlasiran and divesiran demonstrate the potential of their mRNAi GOLD™ platform, which could attract further partnering opportunities.

The company's strategy to evaluate partnering opportunities for the zerlasiran program is prudent, potentially offsetting development costs and leveraging external expertise. However, this also indicates that Silence may need additional resources or expertise to fully capitalize on this asset.

The recent high-profile hires in Business Development and Human Resources suggest a focus on growth and strategic partnerships. This could be important for expanding the company's pipeline and commercial capabilities. However, investors should monitor how these additions impact the company's burn rate and path to profitability.

While the clinical progress is encouraging, Silence faces significant competition in the siRNA space from larger, well-funded competitors. The company's ability to differentiate its technology and secure key partnerships will be critical for long-term success in this rapidly evolving market.

LONDON--(BUSINESS WIRE)-- Silence Therapeutics plc, Nasdaq: SLN (“Silence” or “the Company”), an experienced and innovative biotechnology company committed to transforming people’s lives by silencing diseases through precision engineered medicines, today reported its financial results for the second quarter ended June 30, 2024 and reviewed recent business highlights.

“The first half of this year has been marked by strong execution across Silence, including outstanding clinical results in both our wholly owned clinical programs and advancing our first partnered program into the clinic under our AstraZeneca collaboration,” said Craig Tooman, President and Chief Executive Officer at Silence. “Silence’s siRNA technology is continuing to demonstrate itself in the clinic and we expect that positive momentum to continue into the second half of this year and beyond.”

“With the $120 million equity raise and milestones from our collaborations, we are well positioned to execute on key clinical objectives for both our zerlasiran and divesiran programs,” said Rhonda Hellums, Chief Financial Officer at Silence. “We will continue to evaluate partnering opportunities for our proprietary mRNAi GOLD™ platform and zerlasiran program with the ultimate goal of delivering maximum value to Silence shareholders and patients.”

Second Quarter 2024 & Recent Business Highlights

Zerlasiran for cardiovascular disease

• Announced positive topline 48-week data from the ALPACAR-360 Phase 2 study of zerlasiran in patients with elevated lipoprotein(a) (Lp(a)).
  • Zerlasiran produced highly significant and sustained reductions in Lp(a) to week 48 (end of treatment period) and was well tolerated.
  • Data support advancing zerlasiran into Phase 3.

Divesiran for hematological diseases

• Announced positive results from the ongoing SANRECO Phase 1 study of divesiran in polycythemia vera (PV) patients.
  • Divesiran eliminated the need for phlebotomy in all well-controlled patients following infrequent dosing and was well tolerated.
  • Data support advancing divesiran into Phase 2.

Collaborations

• Achieved a $2.0 million research milestone payment under our collaboration with Hansoh Pharmaceutical Group Company Limited (Hansoh).

Organizational updates

• Promoted Rhonda Hellums, Silence’s Chief Financial Officer, and Steven Romano, MD, Silence’s Chief R&D Officer, to Executive Vice President.
• Hired Gianine Esposito as Chief Human Resources Officer (CHRO). Gianine brings 25 years of Human Resources experience with over 15 years of pharmaceutical experience and joins Silence from Shionogi Inc. where she was the SVP and CHRO. In her time at Shionogi, Gianine assisted in building out its US-based clinical and commercial organizations through different stages of growth.
• Hired Marianna Anesti as Vice President, Head of Business Development. Marianna brings 18 years of diverse Biotech & Pharmaceutical experience and joins Silence from Siga Technologies where she was the VP, Business Development & Corporate Strategy. In her time at Siga, Marianna built a pipeline of M&A opportunities, strategic partnerships, and potential in-licensing deals. Prior to Siga, Marianna was Director, R&D Strategy & Consulting at Pfizer where she partnered with Senior R&D leaders across the business to help shape new BD strategies.

Financial Highlights for the Period Ended June 30,2024

• Cash Position: Cash, cash equivalents and U.S. Treasury Bills of £149.6 million ($189.2 million) as of June 30, 2024, compared with £50.2 million ($63.4 million) as of June 30, 2023.
• Collaboration Revenue: Collaboration revenue for the three and six months ended June 30, 2024 was £0.6 million (June 30,2023: £9.0 million) and £12.9 million (June 30, 2023: £20.2 million), respectively. Revenue from the current year period primarily related to our ongoing AstraZeneca and Hansoh collaborations and from our Mallinckrodt collaboration we completed in March 2024.
• R&D Expenses: Research and development (R&D) expenses for the three and six months ended June 30, 2024 was £11.0 million (June 30,2023: £12.6 million) and £20.2 million (June 30, 2023: £25.2 million), respectively. The decrease compared to the prior year period primarily related to the timing of clinical studies and manufacturing activities for our divesiran clinical program.
• G&A Expenses: General and administrative (G&A) expenses for the three and six months ended June 30, 2024 was £5.3 million (June 30,2023: £5.1 million) and £10.5 million (June 30, 2023: £11.6 million), respectively. The decrease from the prior year six-month period was mainly due to decreased payroll costs and equity-based compensation.
• Net Loss: Net loss for the three and six months ended June 30, 2024 was £15.6 million, or 11.1 pence basic and diluted net loss per share, (June 30,2023: £10.4 million or 9.6 pence) and £17.4 million, or 12.8 pence basic and diluted net loss per share (June 30, 2023: £20.6 million or 19.0 pence), respectively.
• Total ADSs outstanding were approximately 46,797,823, as of June 30, 2024.

About Silence Therapeutics

Silence Therapeutics is developing a new generation of medicines by harnessing the body's natural mechanism of RNA interference, or RNAi, to inhibit the expression of specific target genes thought to play a role in the pathology of diseases with significant unmet need. Silence's proprietary mRNAi GOLD™ platform can be used to create siRNAs (short interfering RNAs) that precisely target and silence disease-associated genes in the liver, which represents a substantial opportunity. Silence's wholly owned product candidates include zerlasiran (SLN360) designed to address the high and prevalent unmet medical need in reducing cardiovascular risk in people born with high levels of lipoprotein(a) and divesiran (SLN124) designed to address rare hematological diseases including polycythemia vera. Silence also maintains ongoing research and development collaborations with AstraZeneca and Hansoh Pharma, among others. For more information, please visit https://www.silence-therapeutics.com/.

Forward-Looking Statements

Certain statements made in this announcement are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and other securities laws, including with respect to the Company’s clinical and commercial prospects, potential partnerships or collaborations under new and existing collaborations and the initiation, advancement or completion of the Company’s clinical trials. These forward-looking statements are not historical facts but rather are based on the Company's current assumptions, beliefs, expectations, estimates and projections about its industry. Words such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “seek,” “estimate,” and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including those risks identified in the Company’s most recent Admission Document and its Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission on March 13, 2024. The Company cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.

Condensed consolidated income statement (unaudited)
	Three months ended				Three months ended				Six months ended				Six months ended
	June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2023
£000s (except per share information)	£000s				£000s				£000s				£000s
Revenue		598				9,104				13,004				20,478
Cost of sales		(2,638	)			(2,831	)			(4,851	)			(7,365	)
Gross profit		(2,040	)			6,273				8,153				13,113
Research and development costs		(10,995	)			(12,615	)			(20,174	)			(25,154	)
General and administrative expenses		(5,288	)			(5,115	)			(10,458	)			(11,565	)
Operating loss		(18,323	)			(11,457	)			(22,479	)			(23,606	)
Finance and other expenses		(183	)			(893	)			(25	)			(1,753	)
Finance and other income		1,065				340				1,698				676
Loss for the period before taxation		(17,441	)			(12,010	)			(20,806	)			(24,683	)
Taxation		1,879				1,609				3,368				4,078
Loss for the period after taxation		(15,562	)			(10,401	)			(17,438	)			(20,605	)
Loss per ordinary share (basic and diluted)	(11.1) pence				(9.6) pence				(12.8) pence				(19.0) pence

Condensed consolidated balance sheet (unaudited)
		June 30, 2024				December 31, 2023
		£000s				£000s
Non-current assets
Property, plant and equipment			1,686				1,813
Goodwill			7,662				7,840
Other intangible assets			267				284
Other long term assets			2,361				2,580
Financial assets at amortized cost			284				284
			12,260				12,801
Current assets
Cash and cash equivalents			109,482				54,031
Financial assets at amortized cost			40,112				-
R&D tax credit receivable			12,852				17,627
Other current assets			12,244				9,135
Trade receivables			1,686				228
			176,376				81,021
Non-current liabilities
Contract liabilities			(58,187	)			(58,910	)
Lease liability			-				(93	)
			(58,187	)			(59,003	)
Current liabilities
Contract liabilities			(2,766	)			(5,161	)
Trade and other payables			(14,992	)			(12,429	)
Lease liability			(184	)			(179	)
			(17,942	)			(17,769	)
Net assets			112,507				17,050
Capital and reserves attributable to the owners of the parent
Share capital			7,019				5,942
Capital reserves			423,831				313,769
Translation reserve			1,807				1,951
Accumulated losses			(320,150	)			(304,612	)
Total shareholders' equity			112,507				17,050

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240815016094/en/

Inquiries:

Silence Therapeutics plc

Gem Hopkins, VP, Head of IR and Corporate Communications

ir@silence-therapeutics.com

Tel: +1 (646) 637-3208

Source: Silence Therapeutics plc

FAQ

What were Silence Therapeutics' (SLN) key clinical results in Q2 2024?

Silence Therapeutics reported positive topline 48-week data from the ALPACAR-360 Phase 2 study of zerlasiran for cardiovascular disease and positive results from the SANRECO Phase 1 study of divesiran in polycythemia vera patients.

How much cash did Silence Therapeutics (SLN) have as of June 30, 2024?

Silence Therapeutics reported a cash position of £149.6 million ($189.2 million) as of June 30, 2024, compared to £50.2 million ($63.4 million) as of June 30, 2023.

What was Silence Therapeutics' (SLN) collaboration revenue for H1 2024?

Silence Therapeutics reported collaboration revenue of £12.9 million for the six months ended June 30, 2024, compared to £20.2 million for the same period in 2023.

What was Silence Therapeutics' (SLN) net loss for H1 2024?

Silence Therapeutics reported a net loss of £17.4 million, or 12.8 pence basic and diluted net loss per share, for the six months ended June 30, 2024.