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Tevogen Bio Reports Third Quarter 2024 Financial Results; Highlights Significantly Improved Financial Position, Unreported Asset Value on Balance Sheets, Efficient Business Model

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Tevogen Bio (Nasdaq: TVGN) reported improved Q3 2024 financial results, reducing net loss to $4.3 million from $56.8 million in the previous year. The company significantly improved its financial position by reducing liabilities from $99.9 million to $10.5 million. While internal valuations estimate IP and product assets at over $10 billion, these assets remain unreported on balance sheets due to US GAAP rules. The company has secured funding for the next 33 months through a loan agreement. Notably, approximately 78% of equity is retained by company officers, compared to an industry average of 4%.

Tevogen Bio (Nasdaq: TVGN) ha riportato risultati finanziari migliorati per il terzo trimestre del 2024, riducendo la perdita netta a 4,3 milioni di dollari rispetto ai 56,8 milioni dell'anno precedente. L'azienda ha notevolmente migliorato la sua posizione finanziaria riducendo i debiti da 99,9 milioni a 10,5 milioni. Sebbene le valutazioni interne stimino che i beni IP e di prodotto superino i 10 miliardi di dollari, questi beni non sono riportati nei bilanci a causa delle normative US GAAP. L'azienda ha assicurato finanziamenti per i prossimi 33 mesi attraverso un accordo di prestito. È importante notare che circa il 78% del capitale è detenuto da funzionari dell'azienda, rispetto a una media del settore del 4%.

Tevogen Bio (Nasdaq: TVGN) informó resultados financieros mejorados para el tercer trimestre de 2024, reduciendo la pérdida neta a 4,3 millones de dólares, en comparación con los 56,8 millones del año anterior. La empresa mejoró significativamente su posición financiera al reducir las deudas de 99,9 millones a 10,5 millones. Si bien las valoraciones internas estiman que los activos de propiedad intelectual y de producto superan los 10 mil millones de dólares, estos activos no aparecen en los balances debido a las normas de US GAAP. La empresa ha asegurado financiamiento para los próximos 33 meses a través de un acuerdo de préstamo. Es notable que aproximadamente el 78% del capital es retenido por los funcionarios de la empresa, en comparación con un promedio de la industria del 4%.

Tevogen Bio (Nasdaq: TVGN)는 2024년 3분기 재무 결과가 개선되어 순손실을 5,680만 달러에서 430만 달러로 줄였다고 보고했습니다. 회사는 부채를 9990만 달러에서 1050만 달러로 줄여 재무 상태를 크게 개선했습니다. 내부 평가에서는 지적 재산권 및 제품 자산이 100억 달러를 초과하는 것으로 추정되지만, 이들 자산은 미국 GAAP 규칙으로 인해 대차대조표에 보고되지 않고 있습니다. 회사는 대출 계약을 통해 향후 33개월 동안의 자금 조달을 확보했습니다. 특히, 회사 임원들이 약 78%의 지분을 보유하고 있는 반면, 업계 평균은 4%입니다.

Tevogen Bio (Nasdaq: TVGN) a annoncé des résultats financiers améliorés pour le troisième trimestre 2024, réduisant la perte nette à 4,3 millions de dollars contre 56,8 millions de dollars l'année précédente. L'entreprise a considérablement amélioré sa position financière en réduisant ses dettes de 99,9 millions à 10,5 millions de dollars. Bien que les évaluations internes estiment que les actifs de propriété intellectuelle et de produit dépassent les 10 milliards de dollars, ces actifs ne figurent pas dans les bilans en raison des règles US GAAP. L'entreprise a sécurisé un financement pour les 33 prochains mois par le biais d'un accord de prêt. Il est notable qu'environ 78 % des actions sont détenues par des cadres de l'entreprise, contre une moyenne de 4 % dans l'industrie.

Tevogen Bio (Nasdaq: TVGN) berichtete über verbesserte Finanzresultate für das dritte Quartal 2024 und verringerte den Nettoverlust auf 4,3 Millionen Dollar im Vergleich zu 56,8 Millionen Dollar im Vorjahr. Das Unternehmen verbesserte seine finanzielle Lage erheblich, indem es die Verbindlichkeiten von 99,9 Millionen auf 10,5 Millionen Dollar reduzierte. Während interne Bewertungen die IP- und Produktwerte auf über 10 Milliarden Dollar schätzen, bleiben diese Vermögenswerte aufgrund der US-GAAP-Vorschriften in der Bilanz unberücksichtigt. Das Unternehmen sicherte sich Finanzierung für die nächsten 33 Monate durch einen Kreditvertrag. Bemerkenswert ist, dass etwa 78% des Eigenkapitals von Unternehmensleitern gehalten wird, verglichen mit einem Branchendurchschnitt von 4%.

Positive
  • Significant reduction in net loss by $52.5 million year-over-year
  • Substantial decrease in liabilities from $99.9M to $10.5M
  • Secured funding for operations for next 33 months
  • High insider ownership at 78% compared to industry average of 4%
Negative
  • Continued net loss of $4.3 million for the nine months ended September 30, 2024
  • Unable to report $10B+ in internally valued assets due to accounting rules
  • Reliance on loan agreement for operational funding

Insights

The Q3 2024 results reveal significant financial improvements for Tevogen Bio. The 92% reduction in net loss to $4.3 million from $56.8 million demonstrates strong cost management. The company's liability reduction from $99.9 million to $10.5 million substantially strengthens the balance sheet. The secured funding runway of 33 months provides operational stability through 2027.

The $10 billion+ internal valuation of IP assets, while not reflected on the balance sheet due to GAAP rules, represents significant hidden value. The 78% insider ownership is notably high for the biotech sector, indicating strong management confidence and alignment with shareholder interests. However, investors should note that internal valuations can be subjective and require independent verification.

The company's focus on off-the-shelf, unmodified T cell therapeutics positions it uniquely in the competitive cell therapy landscape. The comparison to Gilead and Bristol-Myers Squibb regarding asset valuation is particularly relevant, as these companies have validated similar technologies through major acquisitions. The extensive patent portfolio and AI platform integration suggest a robust technological foundation.

The substantial insider ownership structure is particularly noteworthy in biotech, where typically high R&D costs often lead to significant dilution. This ownership model could provide better protection for retail investors while ensuring management's long-term commitment to commercialization success.

  • Improved operating performance by reducing net loss by $52.5 million; reported net loss of $4.3 million and $56.8 million for the nine months ended September 30, for 2024 and 2023, respectively.
  • Significantly improved financial position by eliminating nearly all of its liabilities; reported $10.5 million as of September 30, 2024, and $99.9 million as of December 31, 2023.
  • $10 billion+, representing Tevogen’s IP and product assets based on internal discounted cash flow models, is not reflected on the company balance sheet. Similarly, Tevogen’s AI assets, a critical component of its innovation platform, remain unreported on company balance sheet.
  • Sufficient available capital to fund operations for the next 33 months, supported by a loan agreement.
  • Approximately 78% of equity retained by Tevogen officers.

WARREN, N.J., Nov. 19, 2024 (GLOBE NEWSWIRE) -- Tevogen Bio (“Tevogen” or “Tevogen Bio Holdings Inc.”) (Nasdaq: TVGN), a clinical-stage specialty immunotherapy biotech developing off-the-shelf, genetically unmodified T cell therapeutics to treat infectious disease and cancers, has announced financial results for the fiscal quarter ending September 30, 2024, and filed its quarterly report on Form 10-Q with the Securities and Exchange Commission.

Tevogen’s internally developed intellectual property and product assets, valued internally at $10 billion+ using discounted cash flow models, are not reflected on the balance sheet. Due to US GAAP accounting rules, the company was unable to report the fair market value of its assets, including proprietary immunotherapy technologies and cutting-edge artificial intelligence platforms. The company believes that the inclusion of Tevogen’s IP assets on its balance sheet would significantly enhance its enterprise value.

Tevogen reiterated its confidence in its financial stability, confirming sufficient available capital to fund operations for at least the next 33 months, supported by a loan agreement, which Tevogen entered into in June. Additionally, Tevogen eliminated almost all of its liabilities which were $99.9 million as reported at December 31, 2023 and now are $10.5 million as reported at September 30, 2024.

Kirti Desai, CPA, Tevogen’s CFO, commented, “The company is in a unique position as it relates to reporting intangible assets on our balance sheet. Tevogen has multiple granted patents, which were developed internally, and as per US GAAP rules, these internally developed intangible assets are not reported on the balance sheet as they do not have an acquisition price. This is significantly different than IP obtained through acquisition which can be capitalized as a noncurrent asset on the balance sheet and subsequently amortized like an intangible asset.”

Dr. Ryan Saadi, Founder and CEO of Tevogen Bio added, “The lack of an established market price to assign fair value of our highly appraised internally developed assets on our balance sheet, marks a distinct difference from similar cell therapy companies, such as Gilead and Bristol-Myers Squibb, which are able to capitalize similar assets acquired through multibillion-dollar acquisitions."

Commenting on the company’s performance and unique ownership structure, Dr. Saadi concluded, “Tevogen’s leadership stands apart in the biotech sector, with approximately 78% of equity retained by our officers, an extraordinary figure compared to the industry average of just 4%. In addition to our officers, our key employees have also been granted substantial restricted stock units in the company, reflecting our belief that our employees should also be owners of our success.”

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, nine pending US and twelve ex-US 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 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; 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: 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 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; 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, 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 subsequent 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


FAQ

What was Tevogen Bio's (TVGNW) net loss for Q3 2024 compared to 2023?

Tevogen Bio reduced its net loss to $4.3 million for the nine months ended September 30, 2024, compared to $56.8 million in the same period of 2023, representing a $52.5 million improvement.

How much did Tevogen Bio (TVGNW) reduce its liabilities in 2024?

Tevogen Bio reduced its liabilities from $99.9 million as of December 31, 2023, to $10.5 million as of September 30, 2024.

What percentage of Tevogen Bio (TVGNW) equity is owned by company officers?

Approximately 78% of Tevogen Bio's equity is retained by company officers, significantly higher than the industry average of 4%.

How long can Tevogen Bio (TVGNW) fund its operations with current capital?

Tevogen Bio has secured sufficient capital to fund operations for the next 33 months, supported by a loan agreement.

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Biotechnology
Biological Products, (no Disgnostic Substances)
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United States of America
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