On November 8, 2023, Sera Prognostics Inc (SERA, Financial), a company dedicated to improving maternal and neonatal health, announced its financial results for the third quarter of 2023, which ended on September 30, 2023. The company reported a decline in revenue to $42,000, down from $87,000 in the same period last year. Despite the decrease in revenue, Sera Prognostics made significant strides in reducing its operating expenses and narrowing its net loss.
Financial Performance and Cost Management
Sera Prognostics' total operating expenses for the third quarter were $8.2 million, a substantial decrease from $11.3 million in the third quarter of 2022. This reduction was primarily due to lower clinical study costs, which led to research and development expenses dropping to $3.5 million from $4.2 million. Selling, general, and administrative expenses also saw a significant decrease to $4.6 million from $7.0 million, reflecting the company's efforts to streamline operations and align costs with current activity levels.
The net loss for the quarter improved to $7.2 million compared to a net loss of $10.7 million for the same quarter in the previous year. This improvement is a direct result of the company's cost reduction activities, which are part of a broader strategy to extend the company's cash runway through most of 2027.
Strategic Developments and Market Position
During the quarter, Sera Prognostics made key executive appointments, with Zhenya Lindgardt and Austin Aerts taking on the roles of permanent President and CEO, and CFO, respectively. The management team has been actively engaged in scaling the company's care coordination offering, particularly for high-risk patients identified through the PreTRM test. This service is expected to encourage test adoption by physicians by providing care coordination to their high-risk patients.
The company also moved its new high-low risk predictor product into the next phase of market research, setting the stage for clinical validation. Additionally, Sera Prognostics shared promising data from the AVERT clinical trial, which demonstrated the PreTRM test's effectiveness in improving neonatal outcomes.
We continue to lay the groundwork for a reinvigorated commercial focus designed to cost-effectively target increased test adoption through institutional customer focus, care coordination program, and are exploring potential product and partnership pathways to expand our commercial revenue," said Zhenya Lindgardt, President and CEO of Sera Prognostics.
Balance Sheet and Future Outlook
As of September 30, 2023, Sera Prognostics reported having cash, cash equivalents, and available-for-sale securities of approximately $85.0 million. This financial position, bolstered by the company's cost reduction measures, positions Sera Prognostics to continue its strategic initiatives and focus on commercial expansion.
While the company faces challenges such as the need for broader market acceptance of its PreTRM test and the potential impact of lingering COVID-19 disruptions, Sera Prognostics is making concerted efforts to navigate these hurdles and capitalize on its market position in precision pregnancy care.
For more detailed information and to listen to the conference call discussing these financial results and operational highlights, interested parties can access the webcast from the Investors page of the company's website at www.seraprognostics.com.
Investors and stakeholders are encouraged to review the full financial statements and risk factors as outlined in the company's filings with the Securities and Exchange Commission to gain a comprehensive understanding of Sera Prognostics' financial health and strategic direction.
Explore the complete 8-K earnings release (here) from Sera Prognostics Inc for further details.
