Stoke Therapeutics Reports Fourth Quarter and Full Year 2023 Financial Results
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Insights
The reported financials of Stoke Therapeutics, with a cash reserve of $201.4 million, suggest a runway extending to the end of 2025. This is a significant indicator of the company's short-term financial health and operational stability. The ability to fund operations without the immediate need for additional capital is a positive signal for investors, as it reduces the risk of dilution from potential future equity offerings. However, it is important to monitor the burn rate and whether the projected runway aligns with the company's milestones, especially in the volatile biotech sector.
Observing the year-on-year decrease in revenue from license fees and services, from $12.4 million in 2022 to $8.8 million in 2023, reflects a contraction that may raise concerns about the company's ability to generate consistent revenue streams. Furthermore, the increased net loss and operating expenses suggest that the company is intensifying its investment in research and development, which is common in the biotech industry as companies progress through clinical trials and regulatory processes.
Stoke Therapeutics' focus on RNA-based medicines for severe diseases places it in a highly innovative and competitive segment of the biotechnology market. The financial commitment to R&D, evidenced by the increased expenditure in this area, is important for advancing their therapeutic candidates, STK-001 and STK-002. The biotech industry often sees significant R&D investments long before profitability, with the understanding that successful drug development can lead to substantial returns upon regulatory approval and market entry.
It is also noteworthy that the general and administrative costs have risen, which is typical for a growing public company. Stakeholders should evaluate how these investments translate into corporate governance, compliance and overall corporate growth strategies. In the long term, the success of Stoke's therapeutic candidates will be pivotal in justifying these expenditures and in potentially delivering shareholder value.
– As of December 31, 2023, Company had
Year End 2023 Financial Results
-
As of December 31, 2023, Stoke had
$201.4 million -
Revenue recognized for upfront license fees and services provided from a License and Collaboration Agreement with Acadia Pharmaceuticals for the year ended December 31, 2023 was
$8.8 million $12.4 million -
Net loss for the year ended December 31, 2023 was
$104.7 million $2.38 $101.1 million $2.60 -
Research and development expenses for the year ended December 31, 2023 were
$82.2 million $77.8 million -
General and administrative expenses for the year ended December 31, 2023 were
$41.3 million $38.9 million - The increase in operating expenses for the year ended December 31, 2023 compared to the same period in 2022 primarily relate to increases in costs associated with personnel, third party contracts, consulting, facilities and other costs associated with development activities for STK-001 and STK-002, research on additional therapeutics and growing a public corporation.
Fourth Quarter 2023 Financial Results
-
Revenue recognized for upfront license fees and services provided from a License and Collaboration Agreement with Acadia Pharmaceuticals for the three months ended December 31, 2023 was
$2.8 million $3.3 million -
Net loss for the three months ended December 31, 2023 was
$27.0 million $0.60 $25.7 million $0.65 -
Research and development expenses for the three months ended December 31, 2023 were
$21.8 million $21.1 million -
General and administrative expenses for the three months ended December 31, 2023 were
$10.6 million $9.4 million - The increase in operating expenses for the three months ended December 31, 2023 compared to the same period in 2022 primarily relate to increases in costs associated with personnel, third party contracts, consulting, facilities and others associated with development activities for STK-001 and STK-002, research on additional therapeutics and growing a public corporation.
About Stoke Therapeutics
Stoke Therapeutics (Nasdaq: STOK), is a biotechnology company dedicated to addressing the underlying cause of severe diseases by upregulating protein expression with RNA-based medicines. Using Stoke’s proprietary TANGO (Targeted Augmentation of Nuclear Gene Output) approach, Stoke is developing antisense oligonucleotides (ASOs) to selectively restore protein levels. Stoke’s first compound, STK-001, is in clinical testing for the treatment of Dravet syndrome, a severe and progressive genetic epilepsy. Dravet syndrome is one of many diseases caused by a haploinsufficiency, in which a loss of ~
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the “safe harbor” provision of the Private Securities Litigation Reform Act of 1995, including, but not limited to, the Company’s cash runway. Statements including words such as “anticipate,” “plan,” “will,” “continue,” “expect,” or “ongoing” and statements in the future tense are forward-looking statements. These forward-looking statements involve risks and uncertainties, as well as assumptions, which, if they prove incorrect or do not fully materialize, could cause our results to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, risk and uncertainties related to: the Company’s ability to advance, obtain regulatory approval of, and ultimately commercialize its product candidates; the timing of data readouts and interim and final results of preclinical and clinical trials; positive results in a clinical trial may not be replicated in subsequent trials or successes in early stage clinical trials may not be predictive of results in later stage trials; preliminary interim data readouts of ongoing trials may show results that change when such trials are completed; the Company’s ability to fund development activities and achieve development goals into 2025; the Company’s ability to protect its intellectual property; the direct or indirect impact of global business, political and macroeconomic conditions, including inflation, interest rate volatility, cybersecurity events, uncertainty with respect to the federal budget, instability in the global banking system and volatile market conditions, and global events, including public health crises, and ongoing geopolitical conflicts, such as the conflicts in
Financial Tables Follow
| Stoke Therapeutics, Inc. | ||||||||
| Consolidated balance sheets | ||||||||
| (in thousands, except share and per share amounts) | ||||||||
| As of December 31, | ||||||||
2023 |
2022 |
|||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ |
191,442 |
|
$ |
113,556 |
|
||
| Marketable securities |
|
9,952 |
|
|
116,039 |
|
||
| Prepaid expenses |
|
11,320 |
|
|
10,932 |
|
||
| Other current assets |
|
2,561 |
|
|
2,955 |
|
||
| Interest receivable |
|
64 |
|
|
588 |
|
||
| Total current assets | $ |
215,339 |
|
$ |
244,070 |
|
||
| Restricted cash |
|
569 |
|
|
569 |
|
||
| Operating lease right-of-use assets |
|
6,611 |
|
|
4,753 |
|
||
| Property and equipment, net |
|
5,823 |
|
|
6,675 |
|
||
| Total assets | $ |
228,342 |
|
$ |
256,067 |
|
||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ |
1,695 |
|
$ |
766 |
|
||
| Accrued and other current liabilities |
|
13,815 |
|
|
15,748 |
|
||
| Deferred revenue - current portion |
|
15,309 |
|
|
14,880 |
|
||
| Total current liabilities | $ |
30,819 |
|
$ |
31,394 |
|
||
| Deferred revenue - net of current portion |
|
33,074 |
|
|
36,856 |
|
||
| Other long term liabilities |
|
4,884 |
|
|
2,968 |
|
||
| Total long term liabilities | $ |
37,958 |
|
$ |
39,824 |
|
||
| Total liabilities | $ |
68,777 |
|
$ |
71,218 |
|
||
| Stockholders’ equity | ||||||||
| Common stock, par value of |
|
5 |
|
|
4 |
|
||
| Additional paid-in capital |
|
561,433 |
|
|
483,170 |
|
||
| Accumulated other comprehensive loss |
|
(24 |
) |
|
(1,175 |
) |
||
| Accumulated deficit |
|
(401,849 |
) |
|
(297,150 |
) |
||
| Total stockholders’ equity | $ |
159,565 |
|
$ |
184,849 |
|
||
| Total liabilities and stockholders’ equity | $ |
228,342 |
|
$ |
256,067 |
|
||
| Stoke Therapeutics, Inc. | ||||||||||||||||
| Consolidated statements of operations and comprehensive loss | ||||||||||||||||
| (in thousands, except share and per share amounts) | ||||||||||||||||
| Three months ended December 31, (unaudited) |
Year Ended December 31, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
| Revenue | $ |
2,801 |
|
$ |
3,269 |
|
$ |
8,780 |
|
$ |
12,405 |
|
||||
| Operating expenses: | ||||||||||||||||
| Research and development |
|
21,778 |
|
|
21,061 |
|
|
82,231 |
|
|
77,837 |
|
||||
| General and administrative |
|
10,610 |
|
|
9,383 |
|
|
41,322 |
|
|
38,924 |
|
||||
| Total operating expenses |
|
32,388 |
|
|
30,444 |
|
|
123,553 |
|
|
116,761 |
|
||||
| Loss from operations |
|
(29,587 |
) |
|
(27,175 |
) |
|
(114,773 |
) |
|
(104,356 |
) |
||||
| Other income (expense): | ||||||||||||||||
| Interest income (expense), net |
|
2,587 |
|
|
1,479 |
|
|
9,908 |
|
|
3,122 |
|
||||
| Other income (expense), net |
|
42 |
|
|
41 |
|
|
166 |
|
|
167 |
|
||||
| Total other income (expense) |
|
2,629 |
|
|
1,520 |
|
|
10,074 |
|
|
3,289 |
|
||||
| Net loss | $ |
(26,958 |
) |
$ |
(25,655 |
) |
$ |
(104,699 |
) |
$ |
(101,067 |
) |
||||
| Net loss per share—basic and diluted | $ |
(0.60 |
) |
$ |
(0.65 |
) |
$ |
(2.38 |
) |
$ |
(2.60 |
) |
||||
| Weighted average common shares outstanding—basic and diluted |
|
44,958,894 |
|
|
39,434,027 |
|
|
43,994,862 |
|
|
38,897,442 |
|
||||
| Comprehensive loss: | ||||||||||||||||
| Net loss | $ |
(26,958 |
) |
$ |
(25,655 |
) |
$ |
(104,699 |
) |
$ |
(101,067 |
) |
||||
| Other comprehensive loss: | ||||||||||||||||
| Unrealized gain (loss) on marketable securities |
|
122 |
|
|
528 |
|
|
1,151 |
|
|
(1,007 |
) |
||||
| Total other comprehensive gain (loss) | $ |
122 |
|
$ |
528 |
|
$ |
1,151 |
|
$ |
(1,007 |
) |
||||
| Comprehensive loss | $ |
(26,836 |
) |
$ |
(25,127 |
) |
$ |
(103,548 |
) |
$ |
(102,074 |
) |
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240325008949/en/
Stoke Media & Investor Contacts:
Dawn Kalmar
Chief Communications Officer
dkalmar@stoketherapeutics.com
781-303-8302
Eric Rojas
Vice President, Investor Relations
IR@stoketherapeutics.com
617-312-2754
Source: Stoke Therapeutics, Inc.
FAQ
How much cash, cash equivalents, and marketable securities did Stoke Therapeutics have as of December 31, 2023?
What was Stoke Therapeutics' revenue for the year ended December 31, 2023?
What was Stoke Therapeutics' net loss for the year ended December 31, 2023?
How much were Stoke Therapeutics' research and development expenses for the year ended December 31, 2023?
What were Stoke Therapeutics' general and administrative expenses for the year ended December 31, 2023?
