Korro Reports First Quarter 2024 Financial Results and Appointment of Kemi Olugemo, M.D. as Chief Medical Officer
15 May 2024 - 6:01AM
Korro Bio, Inc. (Korro) (Nasdaq: KRRO), a biopharmaceutical company
focused on developing a new class of genetic medicines based on
editing RNA for both rare and highly prevalent diseases, today
reported financial results for the first quarter of 2024 and
provided an update on its recent progress and anticipated
milestones.
"Korro’s first quarter performance reflects
significant progress on all fronts in a short period of time.
Today, we are excited to announce the addition of Dr. Kemi Olugemo
as Korro’s Chief Medical Officer. Kemi's leadership experience and
deep expertise in drug development will play an integral role in
shaping our clinical development strategy and strengthening our
organization,” said Dr. Ram Aiyar, CEO and President of Korro.
“Completion of our $70.0 million financing broadens our stockholder
base and provides us with the cash runway to deliver on multiple
value-creating catalysts through 2026. We believe with our
experienced leadership and strong balance sheet, we are
well-positioned to be leaders in advancing our broad portfolio of
innovative RNA-based therapies.”
Pipeline and Business
Updates:
-
Strengthened cash position with a $70.0 million
PIPE. In April 2024, Korro announced a PIPE of
approximately $70.0 million with participation from new and
existing investors. The PIPE was led by funds affiliated with Deep
Track Capital, with participation from Atlas Venture, Blue Owl
Healthcare Opportunities, NEA, Rock Springs Capital, Tri Locum
Partners, and other leading healthcare investors.
- Progressed
KRRO-110 towards a regulatory filing. KRRO-110 is the
first RNA editing oligonucleotide product candidate from Korro’s
proprietary RNA editing platform OPERA™. KRRO-110 is designed to
co-opt an endogenous enzyme, Adenosine Deaminase Acting on RNA
(ADAR), to edit the “A” variant on SERPINA1 RNA, repair an amino
acid codon, and restore secretion of normal alpha-1 antitrypsin
(AAT) protein. This repair of the endogenous protein has the
potential to clear protein aggregates from within liver cells to
create a potentially clinically differentiated benefit for liver
function and to preserve lung function by providing an adequate
amount of normal AAT protein.
- Appointed
Dr. Kemi Olugemo as Chief Medical Officer. Dr. Olugemo
brings more than 10 years of industry experience focused on
clinical development and regulatory strategy. She joins Korro after
serving as VP & Therapeutic Head, Neurology Global Clinical
Development at Ultragenyx Pharmaceutical. In this role, she
directed and oversaw the overall strategy for clinical drug product
development, supported the development of global regulatory plans,
and identified critical opportunities for external collaborations.
Dr. Olugemo holds an M.D. from the University of Maryland School of
Medicine and a B.Sc. in Clinical Laboratory Science from the
University of Massachusetts, Lowell. With her experience in rare
and more prevalent diseases, Dr. Olugemo will provide invaluable
expertise and leadership to advance Korro’s clinical and regulatory
initiatives.
Upcoming Milestones:
- Regulatory filing
for KRRO-110 in AATD on track for the second half of 2024.
- Anticipated interim
Phase 1/2 clinical trial readout for KRRO-110 in the second half of
2025.
- Completion of the
Phase 1/2 clinical trial for KRRO-110 expected in 2026.
First Quarter 2024 Financial
Results:
Cash Position: Cash and cash equivalents were
$138.8 million as of March 31, 2024, compared to $166.1 million as
of December 31, 2023. The net decrease of $27.3 million in cash and
cash equivalents includes costs relating to capital expenditure of
$5.6 million and merger-related severance payments of $2.8 million.
Korro expects its cash and cash equivalents, together with the
gross proceeds of $70.0 million from the April 2024 PIPE, will fund
operating expenses and capital expenditure requirements into the
second half of 2026.
Research and Development (R&D) Expenses:
R&D expenses were $13.6 million for the three months ended
March 31, 2024, as compared to $14.7 million for the same period in
2023. The decrease in R&D expenses was driven primarily by
decreases in license fees and lab supplies costs during the three
months ended March 31, 2024.
General and Administration (G&A) Expenses:
G&A expenses were $7.9 million for the three months ended March
31, 2024, as compared to $5.4 million for the same period in 2023.
The increase was primarily due to increases in professional fees,
facility costs and personnel costs attributable to build-out of the
G&A function, and compliance costs as a public company.
Net Loss: Korro’s net loss was $19.6 million for
each of the three months ended March 31, 2024, and 2023.
About Korro
Korro is a biopharmaceutical company focused on
developing a new class of genetic medicines for both rare and
highly prevalent diseases using its proprietary RNA editing
platform. Korro is generating a portfolio of differentiated
programs that are designed to harness the body’s natural RNA
editing process to effect a precise yet transient single base edit.
By editing RNA instead of DNA, Korro is expanding the reach of
genetic medicines by delivering additional precision and
tunability, which has the potential for increased specificity and
improved long-term tolerability. Using an oligonucleotide-based
approach, Korro expects to bring its medicines to patients by
leveraging its proprietary platform with precedented delivery
modalities, manufacturing know-how, and established regulatory
pathways of approved oligonucleotide drugs. Korro is based in
Cambridge, Mass. For more information, visit korrobio.com.
Forward-Looking Statements
Certain statements in this press release may
constitute “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995, as amended.
Forward-looking statements include, but are not limited to, express
or implied statements regarding expectations, hopes, beliefs,
intentions or strategies of Korro regarding the future including,
without limitation, express or implied statements regarding:
Korro’s planned regulatory filing for KRRO-110 in AATD and timing
of any interim data readout and completion of any Phase 1/2
clinical trial; Korro’s cash runway; Korro’s ability to advance its
pipeline and the role of RNA editing technology in developing
therapeutic options; KRRO-110’s potential as a best-in-class drug
candidate for AATD; and the benefits of OPERA; among others. In
addition, any statements that refer to projections, forecasts, or
other characterizations of future events or circumstances,
including any underlying assumptions, are forward-looking
statements. The words “anticipate,” “believe,” “continue,” “could,”
“estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,”
“potential,” “predict,” “project,” “should,” “strive,” “would,”
“aim,” “target,” “commit,” and similar expressions may identify
forward-looking statements, but the absence of these words does not
mean that statement is not forward looking. Forward-looking
statements are based on current expectations and assumptions that,
while considered reasonable are inherently uncertain. New risks and
uncertainties may emerge from time to time, and it is not possible
to predict all risks and uncertainties. Factors that may cause
actual results to differ materially from current expectations
include, but are not limited to, various factors beyond
management’s control including risks inherent in biopharmaceutical
development; risks associated with pre-clinical studies and
clinical trials; and other risks associated with obtaining
regulatory approvals and protecting intellectual property; as well
as risks associated with general economic conditions; the inability
to recognize the anticipated benefits of the merger, which may be
affected by, among other things, competition, Korro’s ability to
grow and manage growth profitably, maintain relationships with
customers and suppliers and retain key employees; costs related to
merger; the possibility that Korro may be adversely affected by
other economic, business, and/or competitive factors; other risks
and uncertainties indicated from time to time in Korro’s filings
with the SEC, including Part 1 Item 1A. “Risk Factors” in Korro’s
Quarterly Report on Form 10-Q filed with the SEC on the date
hereof, as such may be amended or supplemented by its other filings
with the SEC. Nothing in this press release should be regarded as a
representation by any person that the forward-looking statements
set forth herein will be achieved or that any of the contemplated
results of such forward-looking statements will be achieved. You
should not place undue reliance on forward-looking statements in
this press release, which speak only as of the date they are made
and are qualified in their entirety by reference to the cautionary
statements herein. Except as required by law, Korro does not
undertake or accept any duty to release publicly any updates or
revisions to any forward-looking statements to reflect any change
in its expectations or in the events, conditions or circumstances
on which any such statement is based. This press release does not
purport to summarize all of the conditions, risks and other
attributes of an investment in Korro.
Korro Contact Information
Investors IR@korrobio.com
Media Glenn Silver FINN
Partners Glenn.silver@finnpartners.com
Korro Bio, Inc.Condensed Consolidated
Statements of Operations(in thousands, except
share and per share
amounts)(unaudited) |
|
|
Three Months Ended March 31, |
|
|
2024 |
|
|
2023 |
|
Operating expenses: |
|
|
|
|
|
Research and development |
$ |
13,572 |
|
|
$ |
14,694 |
|
General and administrative |
|
7,881 |
|
|
|
5,392 |
|
Total operating expenses |
|
21,453 |
|
|
|
20,086 |
|
Loss
from operations |
|
(21,453 |
) |
|
|
(20,086 |
) |
Other
income: |
|
|
|
|
|
Other income, net |
|
1,913 |
|
|
|
481 |
|
Total other income, net |
|
1,913 |
|
|
|
481 |
|
Loss
before provision for income taxes |
|
(19,540 |
) |
|
|
(19,605 |
) |
Provision for income taxes |
|
(17 |
) |
|
|
— |
|
Net loss
and comprehensive loss |
$ |
(19,557 |
) |
|
$ |
(19,605 |
) |
Net loss
per share, basic and diluted |
$ |
(2.44 |
) |
|
$ |
(72.20 |
) |
Weighted-average shares used in computing net loss per share, basic
and diluted |
|
8,019,626 |
|
|
|
271,522 |
|
|
Korro Bio, Inc.Selected Condensed
Consolidated Balance Sheet Data(in
thousands)(unaudited) |
|
|
March 31,2024 |
|
|
December 31,2023 |
|
Cash, cash equivalents and investments |
$ |
138,804 |
|
|
$ |
166,150 |
|
Working capital (1) |
|
134,602 |
|
|
|
153,245 |
|
Total assets |
|
197,985 |
|
|
|
221,663 |
|
Total liabilities |
|
46,627 |
|
|
|
51,752 |
|
Total stockholders' equity |
|
151,358 |
|
|
|
169,911 |
|
|
|
|
|
|
|
(1)
Working capital is defined as current assets less current
liabilities. |
|
|
|
|
|
|
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