Sana Biotechnology Q3 2024 Financial Results and Business Updates

Sana Biotechnology, Inc., based in Seattle and listed on NASDAQ as SANA, has provided an overview of its financial status and significant business activities for the third quarter of 2024. The company, which specializes in developing engineered cells for medical use, highlighted several key updates and advancements.

One of Sana's primary focuses has been the development of hypoimmune technology. The company's early clinical data indicate that cells modified with this technology can evade immune detection. Sana anticipates sharing more detailed results from ongoing studies in 2024 and 2025. These studies span various medical fields including type 1 diabetes, B-cell mediated autoimmune diseases, and oncology.

During the past quarter, Sana strengthened its leadership team by appointing Dhaval Patel as the new Chief Scientific Officer. Patel brings extensive experience in research, drug discovery, and clinical development. This leadership change is part of Sana's broader strategy to enhance its focus on immunologic diseases, especially type 1 diabetes and B-cell mediated autoimmune diseases. The company believes these steps will accelerate their development efforts and extend their financial resources.

The company provided updates on its clinical programs currently underway. One of these is the UP421 trial, which examines a gene-modified primary islet cell therapy for type 1 diabetes. This study aims to understand how these cells evade the immune system, survive, and function in diabetic patients without the need for immunosuppression. Initial data from this trial is expected to be available in 2024 or 2025.

In the realm of B-cell mediated autoimmune diseases, the GLEAM trial is evaluating SC291, an allogeneic CAR T therapy targeting CD19, in conditions such as lupus nephritis and antineutrophil cytoplasmic antibody-associated vasculitis. Patient data from this study is also anticipated in the next couple of years.

For oncology, Sana is working on the VIVID trial, which investigates SC262, a CAR T therapy directed at CD22, for patients with relapsed or refractory B-cell malignancies who previously underwent CD19-directed CAR T therapy. This trial is currently enrolling patients, with data expected to be released in 2025.

Financially, Sana reported a cash position of $199.0 million as of September 30, 2024, slightly down from $205.2 million at the end of 2023. This reduction was primarily due to operational expenses and investments in property and equipment, partially offset by proceeds from equity financings and other funding sources. The company expects its financial resources to sustain operations until 2026, although strategic adjustments may lead to an increase in cash burn for the current year.

In terms of R&D expenses, Sana reported expenditures of $53.2 million for the third quarter of 2024, down from $65.6 million in the same period the previous year. The decrease is attributed to reduced personnel and laboratory costs, as well as lower costs for third-party manufacturing. These reductions were slightly offset by higher clinical development expenses.

Sana also highlighted a net loss of $59.9 million for the third quarter of 2024, compared to a net income of $1.0 million in the same quarter the previous year. Over the nine-month period ending September 30, 2024, the company reported a net loss of $217.7 million.

Non-GAAP financial measures provided by Sana show a non-GAAP operating cash burn of $153.1 million for the first nine months of 2024, lower than the $187.2 million recorded for the same period in 2023. Non-GAAP general and administrative expenses were also lower, at $46.8 million for the nine months ending September 30, 2024, compared to $49.8 million the previous year.

Sana Biotechnology continues its mission to create and deliver engineered cells as medicines, aiming to treat various diseases by repairing and controlling genes and replacing damaged cells. The company operates research and development sites in Seattle, Cambridge, South San Francisco, and Rochester, and remains committed to pushing the boundaries of medical science.