IGM Biosciences (NASDAQ:IGMS) Inc, a biotechnology company focusing on the development of immunoglobulin M (IgM) antibodies for the treatment of cancer and other diseases, reported a net loss of $61.9 million for the third quarter of 2023. This represents an increase from the net loss of $58.0 million reported in the same period last year. The loss per share for Q3 2023 was $1.04, which is an improvement from the $1.32 per share in Q3 2022.
The company's research and development (R&D) expenses climbed to $54.8 million, reflecting its investment in clinical pipeline development. However, general and administrative (G&A) expenses saw a slight decrease to $12.5 million, indicating improved efficiency in administrative operations. As of September 30, 2023, IGM Biosciences had cash and investments totaling $387.0 million, a decrease from the $427.2 million at the end of 2022.
Despite the larger net loss, collaboration revenue experienced a slight uptick to $0.5 million in Q3 2023, compared to $0.3 million during the same quarter in the previous year.
The company has been actively progressing in its clinical trials. On Monday, CEO Fred Schwarzer highlighted significant developments, including the expansion of the aplitabart randomized study for metastatic colorectal cancer and the initiation of Phase 1b clinical trials for imvotamab targeting autoimmune diseases. The U.S. Food and Drug Administration (FDA) has also cleared a third Phase 1b trial for imvotamab.
Patient enrollment for the aplitabart study is expected to reach around 110 by early 2024, as IGM Biosciences continues to advance its clinical development programs.
Looking ahead, IGM Biosciences provided financial guidance for the full year 2023, projecting GAAP operating expenses between $275 million and $285 million, which includes approximately $50 million related to non-cash stock-based compensation expenses. The company anticipates full-year collaboration revenue of about $2 million stemming from its partnership with Sanofi (EPA:SASY) (NASDAQ:SNY).
With these projections in mind, IGM Biosciences aims to conclude 2023 with over $325 million in cash and investments and expects its cash runway to extend until the second half of 2025. This forecast demonstrates confidence in the company's ability to sustain its development efforts while managing resources effectively over the coming years.
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