Serina Therapeutics Announces Q2 2024 Financial Results and Business Highlights

HUNTSVILLE, Aug. 09, 2024 – Serina Therapeutics (“Serina”) (NYSE American: SER), a clinical-stage biotechnology company leveraging its proprietary POZ Platform™ for drug delivery, has disclosed its financial performance for the quarter ending June 30, 2024, along with some significant business developments.

Key Business Developments

One of the notable announcements was the collaboration with Enable Injections to co-develop and commercialize SER-252 (POZ-apomorphine) using Enable’s enFuse™ device. This partnership aims to provide a more efficient and user-friendly alternative for Parkinson’s disease patients, offering a self-administered solution that addresses the drawbacks of traditional IV infusions and subcutaneous methods. An Investigational New Drug (IND) application is expected to be submitted to the U.S. Food and Drug Administration in anticipation of a Phase 1 clinical trial in 2025 for advanced Parkinson’s patients.

Serina also presented groundbreaking data on its POZ-lipid technology, which shows promise in enhancing the safety and effectiveness of mRNA-LNP formulations. Unlike PEG-lipids used in current mRNA vaccines that can trigger harmful antibody responses, POZ-lipids do not induce such responses, even after repeated doses in in vivo models. This discovery could potentially mitigate severe adverse events like anaphylaxis associated with PEG-lipids.

Additionally, Serina has appointed Dr. Srini Tenjarla as Senior Vice President of CMC & Formulation. Dr. Tenjarla brings a wealth of experience from his previous roles at Takeda Pharmaceuticals and Shire Pharmaceuticals, where he successfully led numerous drug development programs through various clinical stages to regulatory approval.

Financial Overview

Regarding financials, Serina reported that as of June 30, 2024, the company had $6.1 million in cash and cash equivalents. The company owes Juvenescence Limited $11.2 million in principal and origination fees for extended loans. Revenues for the second quarter of 2024 totaled $51,000, entirely derived from NIH grants, compared to $7,000 in the same quarter of 2023.

Operating expenses significantly increased from $1 million in Q2 2023 to $3.9 million in Q2 2024. Research and development (R&D) expenses rose from $0.5 million to $1.6 million, mainly due to severance costs, increased salaries, consulting services, patent-related fees, and laboratory supplies. General and administrative expenses surged from $0.5 million to $2.3 million, attributed to higher legal and accounting fees related to a recent merger, increased director compensation, stock-based compensation, insurance, market research, website development, and other administrative costs.

Net other income for the quarter primarily consisted of a $9.3 million change in the fair value of derivative warrant liabilities, partially offset by $0.3 million in amortization of debt issuance costs. Consequently, Serina posted a net income of $5.2 million, or $0.61 per share (basic) and $0.51 per share (diluted), compared to a net income of $0.8 million in the same period last year.

Liquidity and Going Concern

On May 8, 2024, Serina extended the repayment date of its borrowings under the Juvenescence Secured Note to December 31, 2024, and increased its line of credit by $525,000. However, despite these measures, Serina expressed concerns about its ability to meet future financial obligations. Based on projected cash flows and anticipated proceeds from Juvenescence, the company believes it does not have sufficient resources to cover operating and other funding requirements for the next twelve months, raising substantial doubt about its ability to continue as a going concern.

About SER-252 and POZ Platform™

SER-252 is designed to deliver continuous dopaminergic stimulation (CDS) for Parkinson’s disease, potentially reducing levodopa-related motor complications without causing skin reactions, supported by preclinical studies. The POZ technology, based on poly(2-oxazoline), aims to improve drug delivery by providing better control in drug loading and release rates. The platform has versatile applications across various medical fields, and Serina has partnered with Pfizer for further development.

About Serina Therapeutics

Serina Therapeutics focuses on developing treatments for neurological diseases and pain using its POZ Platform™. The company is headquartered in Huntsville, Alabama, within the HudsonAlpha Institute of Biotechnology campus.

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