Tevogen Bio Reports First Quarter 2024 Financial Results
Tevogen Bio has reported its Q1 2024 financial results, indicating significant strides in its financial management and operations. The company eliminated $94.9 million in liabilities by converting promissory notes into common stock, resulting in a net income of $11.3 million. Operating cash usage was $2.1 million for the quarter. A new line of credit for up to $36 million has been secured, with an option for an additional $14 million contingent on stock price performance. Non-cash expenses were substantial, primarily driven by $25.2 million in stock-based compensation. Tevogen also incurred a one-time transaction cost of $7.5 million related to its recent business combination. The company remains committed to innovative product development and has made notable progress, including a successful proof-of-concept clinical trial for its T cell platform targeting Long COVID patients.
- Eliminated $94.9 million in liabilities.
- Reported net income of $11.3 million.
- Secured a line of credit for up to $36 million.
- Option for an additional $14 million investment contingent on stock price.
- Successful proof-of-concept clinical trial for precision T cell platform.
- Established a research facility dedicated to new product discovery.
- Built a robust intellectual property portfolio.
- Operating cash usage was $2.1 million for the quarter.
- Incurred $25.2 million in non-cash stock-based compensation expenses.
- Reported a one-time transaction cost of $7.5 million related to a business combination.
Insights
Tevogen Bio's first quarter financial results are noteworthy, especially for retail investors. The company has eliminated $94.9 million in liabilities by converting convertible promissory notes into common stock shares. This move significantly strengthens the balance sheet, reducing future interest expenses and potential dilution worries. Additionally, reporting
The company also secured a $36.0 million line of credit with an existing investor, ensuring liquidity for the upcoming three years. This financial backing is a strong safety net that bolsters investor confidence.
However, it's important to note the $27.4 million in non-cash expenses, primarily stock-based compensation, which affected the operating expenses. Investors should be aware that such expenses, while non-cash, do represent a potential dilution in the value of shares over time.
In the short term, the elimination of liabilities and the new line of credit provide financial stability. Long term, the stock-based compensation and potential stock issuance could affect share value. Retail investors should weigh these factors when considering their investment decisions.
Tevogen Bio’s strategic decisions have significant market implications. The company’s move to convert promissory notes into equity is aligned with reducing debt and enhancing equity capital. This proactive debt management strategy positions Tevogen favorably within the biotech sector, where financial flexibility is important for funding long-term R&D initiatives.
The investor commitment through the term sheet, offering a
Furthermore, Tevogen’s focus on the development of T cell therapeutics, particularly for Long COVID, positions it in a unique niche with significant unmet medical needs and market potential. The long-term commercial viability of their products could be a game-changer in the biotech space, provided they navigate the clinical and regulatory hurdles efficiently.
Tevogen Bio's emphasis on T cell therapeutics for oncology, neurology and virology is particularly pertinent in the current medical landscape. T cell therapies represent a frontier in immunotherapy, offering targeted and potentially transformative treatments for diseases with high unmet needs.
The company's commitment to exploring the therapeutic potential of TVGN 489 for Long COVID is both timely and promising. Long COVID remains a significant public health challenge and effective treatments could address a substantial patient population. Success in this area could not only drive revenue but also establish Tevogen as a leader in innovative immunotherapies.
For retail investors, the medical and commercial potential of these therapies should be balanced against the inherent risks of clinical development. The path from clinical trials to market approval is fraught with uncertainties and outcomes can significantly impact stock performance.
- Confirms liability elimination of
$94.9 million and discloses$11.3 million of net income - Reports net cash used for operating activities was
$2.1 million - Reiterates commitment to both patients and shareholders
WARREN, N.J., May 29, 2024 (GLOBE NEWSWIRE) -- Tevogen Bio Holdings Inc. (“Tevogen” or “Tevogen Bio”) (Nasdaq: TVGN), a clinical-stage specialty immunotherapy biotech pioneer developing off-the-shelf, genetically unmodified T cell therapeutics in oncology, neurology, and virology, has announced financial results for the fiscal quarter ended March 31, 2024, and filed its quarterly report on Form 10-Q with the Securities and Exchange Commission.
As of March 31, 2024, Tevogen has eliminated
Tevogen’s reported operating expenses for the three months ending March 31, 2024, included
“Tevogen’s first quarterly financial report since its public listing underscores the strength of our innovative business philosophy,” said Tevogen CEO Ryan Saadi. “Since our founding, we have rapidly established a research facility dedicated to new product discovery, successfully completed the proof-of-concept clinical trial for the first clinical product from our precision T cell platform, and built a robust intellectual property portfolio. I want to reaffirm my personal commitment to exploring the therapeutic potential of TVGN 489 for Long COVID patients, a priority that remains close to my heart. We are committed to transforming patient care through innovations that are not only accessible but also commercially successful.”
About Tevogen Bio
Tevogen is a clinical-stage specialty immunotherapy company harnessing one of nature’s most powerful immunological weapons, CD8+ cytotoxic T lymphocytes, to develop off-the-shelf, genetically unmodified precision T cell therapies for the treatment of infectious diseases, cancers, and neurological disorders, aiming to address the significant unmet needs of large patient populations. Tevogen Leadership believes that sustainability and commercial success in the current era of healthcare rely on ensuring patient accessibility through advanced science and innovative business models. Tevogen has reported positive safety data from its proof-of-concept clinical trial, and its key intellectual property assets are wholly owned by the company, not subject to any third-party licensing agreements. These assets include three granted patents and twelve pending patents, two of which are related to artificial intelligence.
Tevogen is driven by a team of highly experienced industry leaders and distinguished scientists with drug development and global product launch experience. Tevogen’s leadership believes that accessible personalized therapeutics are the next frontier of medicine, and that disruptive business models are required to sustain medical innovation.
Forward Looking Statements
This press release contains certain forward-looking statements, including without limitation statements relating to: expectations regarding the terms and expected use of proceeds of Tevogen’s line of credit; the healthcare and biopharmaceutical industries; Tevogen’s development of, the potential benefits of, and patient access to its product candidates for the treatment of infectious diseases, cancer and neurological disorders, including TVGN 489 for the treatment of COVID-19 and Long COVID; Tevogen’s ability to develop additional product candidates, including through use of Tevogen’s ExacTcell platform; the anticipated benefits of ExacTcell; expectations regarding Tevogen’s future clinical trials; Tevogen’s manufacturing plans; and Tevogen’s ability to generate revenue in the future. Forward-looking statements can sometimes be identified by words such as “may,” “could,” “would,” “expect,” “anticipate,” “possible,” “potential,” “goal,” “opportunity,” “project,” “believe,” “future,” and similar words and expressions or their opposites. These statements are based on management’s expectations, assumptions, estimates, projections and beliefs as of the date of this press release and are subject to a number of factors that involve known and unknown risks, delays, uncertainties and other factors not under the company’s control that may cause actual results, performance or achievements of the company to be materially different from the results, performance or other expectations expressed or implied by these forward-looking statements.
Factors that could cause actual results, performance, or achievements to differ from those expressed or implied by forward-looking statements include, but are not limited to: the parties to the binding term sheet for the line of credit may not enter into definitive transaction documents on the terms described, on a timely basis, or at all; that Tevogen will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; uncertainty regarding the timing and filing of Tevogen’s Annual Report on Form 10-K and related disclosure of pro forma financial results; changes in final results arising from financial closing procedures; the effect of the recent business combination with Semper Paratus Acquisition Corporation (the “Business Combination”) on Tevogen’s business relationships, operating results, and business generally; the outcome of any legal proceedings that may be instituted against Tevogen related to the Business Combination; changes in the markets in which Tevogen competes, including with respect to its competitive landscape, technology evolution, or regulatory changes; changes in domestic and global general economic conditions; the risk that Tevogen may not be able to execute its growth strategies or may experience difficulties in managing its growth and expanding operations; the risk that Tevogen may not be able to develop and maintain effective internal controls; costs related to the Business Combination and the failure to realize anticipated benefits of the Business Combination; the failure to achieve Tevogen’s commercialization and development plans, and identify and realize additional opportunities, which may be affected by, among other things, competition, the ability of Tevogen to grow and manage growth economically and hire and retain key employees; the risk that Tevogen may fail to keep pace with rapid technological developments to provide new and innovative products and services or make substantial investments in unsuccessful new products and services; the ability to develop, license or acquire new therapeutics; that Tevogen will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; the risk of regulatory lawsuits or proceedings relating to Tevogen’s business; uncertainties inherent in the execution, cost, and completion of preclinical studies and clinical trials; risks related to regulatory review, and approval and commercial development; risks associated with intellectual property protection; Tevogen’s limited operating history; and those factors discussed or incorporated by reference in Tevogen’s Annual Report on Form 10-K and filings with the SEC.
You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Tevogen undertakes no obligation to update any forward-looking statements, except as required by applicable law.
Contacts
Tevogen Bio Communications
T: 1 877 TEVOGEN, Ext 701
Communications@Tevogen.com
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