Korro Announces Q1 2024 Financials and New CMO Kemi Olugemo, M.D.

Korro Bio, Inc., a biopharmaceutical company specializing in genetic medicines through RNA editing, recently revealed its financial results for the first quarter of 2024, alongside updates on its progress and upcoming milestones. The company, based in Cambridge, Massachusetts, focuses on both rare and common diseases, aiming to revolutionize the therapeutic landscape with its RNA editing technology.

In a significant organizational update, Korro has appointed Dr. Kemi Olugemo as its new Chief Medical Officer. Dr. Olugemo brings over a decade of experience in clinical development and regulatory strategy. She previously served as Vice President and Therapeutic Head of Neurology Global Clinical Development at Ultragenyx Pharmaceutical. Dr. Olugemo’s extensive background and strategic leadership are expected to be instrumental in advancing Korro’s clinical development efforts.

Financially, Korro has fortified its position with a $70 million private placement (PIPE) concluded in April 2024. This financing was led by funds affiliated with Deep Track Capital, with participation from other prominent investors such as Atlas Venture, Blue Owl Healthcare Opportunities, NEA, Rock Springs Capital, and Tri Locum Partners. This PIPE has enhanced Korro’s cash reserves, bringing the total cash and cash equivalents to approximately $206 million at the close. This robust financial footing is projected to sustain the company’s operations into the second half of 2026.

Korro's pipeline is headlined by KRRO-110, an innovative RNA editing oligonucleotide designed to treat Alpha-1 Antitrypsin Deficiency (AATD). KRRO-110 leverages the company’s proprietary OPERA™ platform to harness the endogenous enzyme Adenosine Deaminase Acting on RNA (ADAR). This enzyme edits the SERPINA1 RNA to correct the “A” variant, restoring the secretion of normal alpha-1 antitrypsin (AAT) protein. This technological advancement holds promise for improving liver function and maintaining lung health by adequately supplying normal AAT protein.

The regulatory filing for KRRO-110 in AATD is on track for the second half of 2024. The company anticipates an interim Phase 1/2 clinical trial readout by the second half of 2025, with the trial expected to complete in 2026. These milestones are crucial for the company's long-term strategy and potential market impact.

Korro's financial performance for the first quarter of 2024 reflected both fiscal prudence and strategic investment. As of March 31, 2024, the company reported cash and cash equivalents of $138.8 million, down from $166.1 million at the end of December 2023. This decline in cash reserves was attributed to capital expenditures and merger-related severance payments. The recent $70 million PIPE is expected to bolster the company’s financial runway, ensuring operational stability into the second half of 2026.

Research and development (R&D) expenses for the first quarter were $13.6 million, a slight decrease from $14.7 million in the same period of 2023. This reduction was primarily due to lower license fees and lab supply costs. On the other hand, general and administrative (G&A) expenses rose to $7.9 million from $5.4 million in the previous year, driven by increased professional fees, facility costs, and personnel expenses related to the expansion of the G&A function and compliance costs as a public company. The net loss for the quarter was consistent at $19.6 million, comparable to the same period in the previous year.

Korro Bio’s strategic focus on RNA-based therapies positions it as a leader in the field of genetic medicine. By leveraging its proprietary RNA editing platform and maintaining a strong financial position, the company is poised to deliver innovative treatments for both rare and prevalent diseases. The upcoming milestones for KRRO-110 represent significant steps forward in achieving their broader mission.