Akari Therapeutics Q1 2024 Financial Results and Highlights
May 16, 2024 – Akari Therapeutics, Plc, a biotechnology company focused on advanced therapies for autoimmune and inflammatory diseases, recently provided a corporate update alongside its financial results for the first quarter of 2024. The report highlighted several key developments.
Dr. Samir R. Patel, newly appointed as Interim CEO of Akari, expressed his optimism and outlined the company's forward strategy. A significant part of this strategy is the planned merger with Peak Bio, anticipated to finalize in the third quarter of 2024. This merger, structured as an all-stock transaction, is expected to result in a combined entity continuing under the Akari name and trading on the Nasdaq Capital Market as AKTX.
The strategic focus post-merger will emphasize Peak Bio's antibody-drug conjugate (ADC) platform technology and Akari’s PAS-nomacopan for addressing geographic atrophy (GA). Consequently, Akari has suspended its HSCT-TMA program. Dr. Patel noted the potential opportunities this merger holds, particularly with Peak's ADC platform.
Key changes have also been made in the company's leadership, with Dr. Patel taking over from Rachelle Jacques as interim CEO. In a bid to streamline operations and reduce costs, Akari announced a significant restructuring, which includes reducing its workforce by approximately 67% and eliminating certain senior management roles.
In terms of financial maneuvers, in May 2024, Akari issued $1 million in unsecured convertible notes to Dr. Patel and Dr. Ray Prudo, the Chairman of the Board, to bolster operating capital.
Financial results for the first quarter of 2024 revealed that as of March 31, Akari held cash reserves of approximately $1.3 million. Research and development expenses rose to about $2.3 million from $1.7 million in the same period the previous year. Meanwhile, general and administrative expenses increased to $3.7 million from $2.9 million. Total other income dropped significantly to $0.4 million from $5.6 million in the first quarter of 2023, reflecting net non-cash gains from liability-classified warrants linked to a prior private placement. The company reported a net loss of $5.6 million compared to a net income of $1.0 million in the first quarter of 2023.
The merger agreement with Peak Bio, announced on March 5, 2024, outlines that the combined entity will maintain its Nasdaq listing as AKTX, under the chairmanship of Dr. Hoyoung Huh. The transaction, expected to conclude by the third quarter of 2024, involves Peak stockholders receiving Akari shares based on a specific exchange ratio, resulting in a shared equity ownership of around 50% each for Akari and Peak shareholders. The deal's completion is subject to typical closing conditions and shareholder approvals from both companies.
Akari Therapeutics is a biotech firm dedicated to developing innovative treatments for autoimmune and inflammatory conditions. Its leading candidate, nomacopan, inhibits both complement C5 activation and leukotriene B4 activity. The company is also advancing research on long-acting PAS-nomacopan for geographic atrophy.
Akari’s comprehensive restructuring and merger with Peak Bio underscore its commitment to focusing on high-potential therapeutic areas while streamlining operations and maintaining robust financial oversight. These strategic moves aim to enhance the company’s long-term objectives and create substantial value for shareholders.
How to obtain the latest research advancements in the field of biopharmaceuticals?
In the Synapse database, you can keep abreast of the latest research and development advances in drugs, targets, indications, organizations, etc., anywhere and anytime, on a daily or weekly basis. Click on the image below to embark on a brand new journey of drug discovery!
