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Dec 31, 2022
Korro Bio Q4 2022 Earnings Report
Announced business updates and financial results for Q4 and full year 2022.
Key Takeaways
Frequency Therapeutics reported a net loss of $17.4 million for the fourth quarter ended December 31, 2022, compared to a net loss of $21.5 million for the comparable period in 2021. The company's cash position as of December 31, 2022, was $83.1 million. Frequency is focusing on its program to induce remyelination for individuals living with multiple sclerosis and expects to initiate clinical development in the first half of 2024.
FX-322-208 study did not achieve its primary endpoint of speech perception.
Discontinued both the FX-322 program and its second development program for hearing restoration, FX-345.
Focusing discovery efforts on its program to induce remyelination for individuals living with multiple sclerosis (MS).
Undertaken actions to reduce expenses and headcount as part of an overall restructuring, downsizing personnel by approximately 55 percent.
Korro Bio
Korro Bio
Forward Guidance
Frequency Therapeutics is focusing on its remyelination program in MS and believes it has sufficient capital resources to complete a first clinical trial in its MS Program.
Positive Outlook
- The Frequency team continues to make important progress with our novel therapeutic program designed to induce remyelination for individuals living with multiple sclerosis
- Remains on track to initiate clinical development for a potentially first-in-class therapy for this debilitating disease in the first half of 2024.
- Our current cash position takes us into Q1 2025, which enables us to advance development of this program through an initial clinical study
- The MS program is independent of the Frequency’s hearing efforts, with a distinct molecular target, mechanism, progenitor cell population, and small molecule drug candidates.
- A well-defined clinical path with objective biomarkers such as visual evoked potential (VEP) and magnetic resonance imaging (MRI) exist for studying the performance of remyelination therapies in MS patients.
Challenges Ahead
- FX-322-208 study, a Phase 2b study for acquired Sensorineural Hearing Loss (SNHL), did not achieve its primary endpoint of speech perception.
- Based on this outcome, Frequency has discontinued both the FX-322 program and its second development program for hearing restoration, FX-345, which had been enrolling a Phase 1b study for acquired SNHL.
- Frequency has undertaken actions to reduce expenses and headcount as part of an overall restructuring, downsizing personnel by approximately 55 percent.
- incurred and will continue to incur significant losses and is not and may never be profitable;
- the lengthy, expensive and uncertain process of clinical drug development and regulatory approval