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Sep 30, 2023

Korro Bio Q3 2023 Earnings Report

Korro Bio completed merger with Frequency Therapeutics and private placement.

Key Takeaways

Korro Bio completed its merger with Frequency Therapeutics and a $117 million private placement. The combined company, operating as Korro Bio, is expected to have approximately $170 million in cash to fund operations into 2026, advancing its RNA editing programs.

Korro Bio closed merger with Frequency Therapeutics and a $117 million private placement.

Combined company to operate as Korro Bio (Nasdaq: KRRO) starting November 6, 2023.

Post-transaction cash of approximately $170 million expected to fund operations into 2026.

Focus on advancing RNA editing programs, including lead product candidate in Alpha-1 antitrypsin deficiency (AATD).

Total Revenue
$0
0
EPS
-$15.5
Previous year: -$0.55
+2718.2%
Gross Profit
-$1.02M
Cash and Equivalents
$170M
Previous year: $99.3M
+71.1%
Free Cash Flow
-$4.8M
Previous year: -$11.8M
-59.2%
Total Assets
$46.3M
Previous year: $136M
-65.9%

Korro Bio

Korro Bio

Forward Guidance

Korro Bio expects to fund operations into 2026 with its current cash reserves and advance its RNA editing programs.

Positive Outlook

  • Advancing lead product candidate in AATD through a clinical milestone.
  • Progression of additional product candidates from the pipeline into the clinic.
  • Demonstrating applicability of the RNA editing platform into several additional tissue types.
  • Nomination of a development candidate for its AATD program in late 2023.
  • Submission of a regulatory filing in the second half of 2024.

Challenges Ahead

  • Risks related to biopharmaceutical development generally.
  • Risks related to conducting pre-clinical studies and pre-clinical trials.
  • Risks related to protecting and enforcing intellectual property.
  • Risks related to integrating operations post-merger and operating the combined company as a public company.
  • Potential adverse reactions or changes to relationships with customers, employees, suppliers or other parties resulting from the completion of the merger.