Surrozen Announces Q1 2024 Financial Results and Business Update

Surrozen, Inc., based in South San Francisco, is pioneering innovative therapeutics that selectively activate the Wnt pathway for tissue repair and regeneration. The company has recently disclosed its financial outcomes for the first quarter of 2024 and provided significant business updates.

Craig Parker, CEO of Surrozen, emphasized the company's dedication to advancing the SZN-043 Phase 1b trial for patients suffering from severe alcohol-associated hepatitis. Surrozen is also committed to presenting data from key research and development programs focused on Wnt modulation at upcoming medical conventions and publications. Parker reaffirmed the company's mission to transform the treatment of severe liver and eye diseases, where Wnt modulation has a critical role.

Surrozen is currently advancing SZN-043, its lead therapeutic candidate, targeting severe liver disease, particularly severe alcohol-associated hepatitis. The first quarter of 2024 saw the completion of a Phase 1a clinical trial involving healthy volunteers and patients with chronic liver disease. Regulatory filings have been submitted in multiple countries for the Phase 1b study, with enrollment anticipated to begin in the second quarter of 2024. The company expects to have proof-of-concept data available by the first half of 2025.

Moreover, Surrozen presented preclinical data at the ARVO 2024 meeting, showcasing the potential of its antibody-based Wnt mimetic to treat severe eye diseases such as cornea endothelial dystrophies and dry eye disease. The findings suggest that Wnt pathway activation could be a novel therapeutic approach for these conditions. Additionally, a study published in Respiratory Research highlighted the promise of a Wnt mimetic antibody in treating pulmonary fibrosis. In preclinical models, Surrozen's SWAP platform molecule showed a reduction in pulmonary inflammation and fibrosis, improving lung function.

In corporate partnerships, Surrozen has a collaboration with Boehringer Ingelheim (BI) initiated in the fourth quarter of 2022. This partnership aims to develop SZN-413, a Wnt agonist for treating retinal diseases. Surrozen anticipates nominating the lead Fzd-4 targeted Wnt agonist development candidate in 2024, which could result in a $10 million milestone payment.

Financially, Surrozen reported a cash position of $27.3 million as of March 31, 2024, down from $36.0 million at the end of 2023. However, including proceeds from a financing in April 2024, the proforma cash would be $43.2 million. The first quarter of 2024 saw research and development expenses decrease to $5.2 million from $8.1 million in the same period of 2023. This reduction is attributed to restructuring plans in 2023 aimed at prioritizing clinical-stage programs.

General and administrative expenses also declined to $3.9 million in the first quarter of 2024 from $5.3 million in the same period of 2023, again due to the 2023 restructuring. There were no restructuring charges in the first quarter of 2024, compared to $1.2 million in the first quarter of 2023. Interest income slightly decreased to $0.4 million from $0.5 million year-over-year, and other expenses netted $0.1 million compared to $0.3 million in the previous year. Overall, the net loss for the first quarter of 2024 was $8.8 million, an improvement from the $14.3 million loss in the same period of 2023.

Surrozen continues to explore the potential of Wnt signaling for treating a variety of severe diseases. Their research focuses on developing tissue-specific antibodies that harness the body's inherent biological repair mechanisms, especially targeting liver and eye diseases. With ongoing trials and robust partnerships, Surrozen remains at the forefront of innovative therapeutic development.