On November 13, 2023, Astria Therapeutics Inc (ATXS, Financial) released its 8-K filing, announcing its financial results for the third quarter ended September 30, 2023, and providing updates on its corporate activities. The company, which focuses on developing therapies for rare and niche allergic and immunological diseases, shared insights into its financial position and the progress of its clinical programs.
Financial Performance Overview
Astria Therapeutics Inc (ATXS, Financial) reported a net loss of $17.7 million for the third quarter of 2023, with a net loss per share of $0.63. This compares to a net loss of $12.0 million, or $0.87 per share, for the same period in 2022. The company's research and development expenses increased to $13.3 million for the quarter, up from $7.7 million in the prior year, primarily due to the advancement of its STAR-0215 clinical development program.
General and administrative expenses also rose to $6.9 million for the quarter, compared to $4.7 million in Q3 2022. The overall loss from operations was $20.2 million for Q3 2023, an increase from the $12.4 million loss reported for the same period last year.
Liquidity and Capital Resources
The company's cash position remains strong, with cash, cash equivalents, and short-term investments totaling $188.8 million as of September 30, 2023. This is a slight decrease from $203.0 million as of June 30, 2023. However, Astria Therapeutics expects that its current financial resources, along with the proceeds from a $64.0 million underwritten offering completed in October 2023, will fund its operations into 2026. This includes the development of both STAR-0215 and STAR-0310 up to significant milestones.
Net cash used in operating activities for Q3 2023 was $14.3 million, an increase from $10.2 million for the same period in 2022. The company's cash flow reflects its ongoing investment in research and development activities.
Corporate and Clinical Program Updates
Dr. Jill C. Milne, CEO of Astria Therapeutics, highlighted the company's progress, stating,
We are realizing our vision of growing an allergy and immunology company with a pipeline of potential best-in-class therapies."She emphasized the potential of STAR-0215 to become a first-choice preventative therapy for hereditary angioedema (HAE) and noted that initial proof-of-concept results from the ALPHA-STAR trial are now expected in Q1 2024.
The company also mentioned its second program, STAR-0310, an OX40 inhibitor for atopic dermatitis, with an expected Investigational New Drug (IND) submission by the end of 2024 and Phase 1a initiation in Q1 2025.
Conclusion
Astria Therapeutics Inc (ATXS, Financial) continues to invest in its clinical programs with the aim of addressing unmet needs in allergic and immunological diseases. Despite increased operating losses, the company maintains a solid cash position and is strategically advancing its pipeline with a focus on achieving key milestones in the coming years.
Explore the complete 8-K earnings release (here) from Astria Therapeutics Inc for further details.
