Forte Biosciences (FBRX) Q3 2024 earnings summary

Executive summary

• Forte Biosciences is a clinical-stage biopharmaceutical company focused on FB102, an anti-CD122 monoclonal antibody for autoimmune diseases, with a Phase 1b trial in celiac disease underway and top-line results expected in Q2 2025.

• The company reported a net loss of $8.4 million for Q3 2024 and $28.3 million for the nine months ended September 30, 2024, with no revenue generated.

• As of September 30, 2024, cash and cash equivalents were $16.4 million, but management concluded this is insufficient for the next twelve months, raising substantial doubt about the company's ability to continue as a going concern.

• Forte completed a 1-for-25 reverse stock split in August 2024 to regain Nasdaq compliance and resolved related legal proceedings.

Financial highlights

• Q3 2024 net loss was $8.4 million, an improvement from $10.0 million in Q3 2023; nine-month net loss was $28.3 million, up from $25.6 million year-over-year.

• Operating expenses for Q3 2024 were $8.6 million, down from $10.2 million in Q3 2023; nine-month operating expenses rose to $29.3 million from $26.1 million.

• Research and development expenses for Q3 2024 were $5.9 million, down from $6.4 million in Q3 2023, mainly due to lower manufacturing costs.

• General and administrative expenses for Q3 2024 were $2.8 million, down from $3.8 million in Q3 2023, but increased to $13.3 million for the nine months, primarily due to higher legal and professional fees.

• Cash used in operating activities for the nine months ended September 30, 2024 was $20.7 million.

Outlook and guidance

• Management expects continued operating losses as FB102 advances through clinical trials and anticipates research and development expenses will increase.

• Existing cash is not sufficient for the next twelve months; additional capital will be required to continue operations and development.

• Top-line results from the ongoing celiac disease trial are expected in Q2 2025.