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Jun 30, 2024

Lyra Q2 2024 Earnings Report

Lyra Therapeutics reported financial results for the second quarter ended June 30, 2024 and provided a corporate update.

Key Takeaways

Lyra Therapeutics reported its Q2 2024 financial results, highlighting ongoing Phase 3 trials for LYR-210 and cost-cutting measures, including a workforce reduction. Further analysis of the ENLIGHTEN 1 data revealed that LYR-210 demonstrated improvement over control in symptomatic endpoints in the CRS patient cohort with nasal polyps.

Lyra is focusing on the ENLIGHTEN 1 Phase 3 extension study with results expected in Q4 2024 and the ENLIGHTEN 2 pivotal Phase 3 trial in CRS patients with results expected in 1H 2025.

Further analysis of the ENLIGHTEN 1 data has revealed that LYR-210 demonstrated improvement over control in symptomatic endpoints in the CRS patient cohort with nasal polyps.

Cost-cutting measures were implemented to preserve capital, including a reduction in force of approximately 75% of its workforce and pausing development efforts for LYR-220.

Cash, cash equivalents and short-term investments as of June 30, 2024 were $67.5 million, which is expected to fund operations into the first quarter of 2026.

Total Revenue
$598K
Previous year: $458K
+30.6%
EPS
-$0.29
Previous year: -$0.36
-19.4%
Gross Profit
-$12.7M
Previous year: -$10.3M
+22.5%
Cash and Equivalents
$31.9M
Previous year: $54.4M
-41.3%
Free Cash Flow
-$20.2M
Previous year: -$14.4M
+40.6%
Total Assets
$94.6M
Previous year: $126M
-24.7%

Lyra

Lyra

Forward Guidance

Lyra Therapeutics is primarily focused on the ongoing ENLIGHTEN Phase 3 trials and expects results from the ENLIGHTEN 1 extension study in Q4 2024 and ENLIGHTEN 2 pivotal trial in 1H 2025. The company anticipates its cash, cash equivalents and short-term investment balance is sufficient to fund operating expenses and capital expenditures into the first quarter of 2026.

Positive Outlook

  • Results from the ENLIGHTEN 1 52-week extension study are expected in Q4 2024.
  • Topline results from ENLIGHTEN 2 are expected in the first half of 2025.
  • Enrollment in ENLIGHTEN 2, the second pivotal Phase 3 trial of LYR-210 in CRS, is ongoing; enrollment completion is expected in the second half of 2024.
  • Further analysis of the ENLIGHTEN 1 data shows that LYR-210 demonstrated a positive effect compared to sham control in 3CS and nasal congestion scores at 24 weeks in the CRS patient subgroup with nasal polyps.
  • Based on our current business plan, we anticipate that our cash, cash equivalents and short-term investment balance is sufficient to fund our operating expenses and capital expenditures into the first quarter of 2026.

Challenges Ahead

  • The ENLIGHTEN 1 Phase 3 trial did not meet its primary endpoint of statistically significant improvement compared to sham control in the composite score of the three cardinal symptoms (3CS) of CRS at 24 weeks.
  • Lyra announced cost-cutting measures to preserve capital, including a reduction in force of approximately 75% of its workforce.
  • Lyra stopped manufacturing and commercialization efforts and is seeking to sublease its three leaseholds to significantly reduce the Company’s operating costs.
  • Lyra paused development efforts for LYR‑220 in an effort to focus on the ongoing ENLIGHTEN Phase 3 program evaluating LYR-210.
  • Net loss for the second quarter 2024 was $48.1 million compared to $15.6 million for the same period in 2023.