Sana Biotechnology Q2 2024 Financial Results and Business Updates

Sana Biotechnology, Inc., a firm dedicated to engineering cells as medicinal treatments, has disclosed its financial outcomes and business updates for the second quarter of 2024. As part of its strategic initiatives, the company is advancing four clinical programs across seven indications that span oncology, autoimmune diseases, and type 1 diabetes, with various trials currently enrolling patients.

In the oncology sector, the ARDENT trial is investigating SC291, a hypoimmune (HIP)-modified CD19-directed allogeneic CAR T therapy, targeting patients with B-cell malignancies. Preliminary data from this trial show promise in terms of safe dosing and early clinical efficacy. Another study, VIVID, focuses on SC262, a HIP-modified CD22-directed allogeneic CAR T therapy, aimed at patients with relapsed or refractory B-cell malignancies who previously underwent CD19-directed CAR T therapy. Results from these studies are anticipated in 2024.

For B-cell mediated autoimmune diseases, the GLEAM trial is evaluating SC291 in patients with conditions such as lupus nephritis, extrarenal lupus, and ANCA-associated vasculitis. Enrollment is ongoing, with initial data expected to be reported in 2024.

In the realm of type 1 diabetes, UP421, a primary human HIP-modified pancreatic islet cell therapy, is under investigation. The trial aims to understand the immune evasion, survival, and function of these modified cells, assessing their potential without immunosuppression. Following amendments to expand patient eligibility, multiple patients are now enrolled, and initial data from this investigator-sponsored trial are also expected in 2024.

Sana's research has demonstrated progress beyond clinical trials. A publication in Nature Biotechnology revealed that transplanted healthy human glial progenitor cells can replace diseased glial cells in a preclinical model, providing additional proof-of-concept for the company's SC379 product candidate, which is developed from pluripotent stem cells.

Financially, Sana reported a cash position of $251.6 million as of June 30, 2024, a significant increase from $205.2 million at the end of 2023. This rise is primarily attributed to net proceeds from equity financings and other financial activities. The company projects its operating cash burn for 2024 to remain below $200 million.

The second quarter of 2024 saw Sana's research and development expenses decrease to $60.9 million from $73.0 million in the same quarter of 2023. This reduction is largely due to lower personnel and laboratory costs, attributed to strategic repositioning, and decreased costs for third-party manufacturing. General and administrative expenses also saw a slight decrease to $16.4 million from $16.6 million in the previous year, mainly due to lowered personnel costs and legal fees.

Despite these reductions in expenses, Sana reported a net loss for the quarter of $50.3 million, or $0.21 per share, compared to a loss of $114.0 million, or $0.59 per share, in the same period last year. For the first six months of 2024, the net loss was $157.8 million, or $0.70 per share, down from $196.1 million, or $1.02 per share, in the same period of 2023.

Non-GAAP financial measures showed a similar trend. The non-GAAP operating cash burn for the first half of 2024 was $104.6 million, lower than the $136.5 million reported in the same period of 2023. Non-GAAP net loss for the three and six months ended June 30, 2024, was reported at $74.2 million, or $0.32 per share, and $143.6 million, or $0.64 per share, respectively. This is compared to $87.3 million, or $0.45 per share, and $169.3 million, or $0.88 per share, for the same periods in 2023.

Sana Biotechnology remains committed to its vision of repairing and controlling genes, replacing missing or damaged cells, and making its therapies broadly available. The company operates in multiple locations, including Seattle, Cambridge, South San Francisco, and Rochester, and continues to focus on reducing reliance on external manufacturing and expanding its clinical trial footprint globally amidst ongoing geopolitical uncertainties.