Surrozen Reports Q2 2024 Financial Results and Business Update

Surrozen, Inc., a biotech company specializing in targeted therapeutics that activate the Wnt pathway for tissue repair and regeneration, reported its financial results and business achievements for the second quarter of 2024. The company made notable progress in key areas, including the ongoing Phase 1b trial of SZN-043 for severe alcoholic hepatitis and presenting first-in-human data at the European Association for the Study of the Liver (EASL). Surrozen also published a study showcasing the potential of its proprietary SWEETS platform in activating Wnt signaling.

Craig Parker, President and CEO, highlighted the company's focus on liver and eye diseases and expressed optimism about upcoming data from the SZN-043 Phase 1b trial, expected in the first half of 2025. SZN-043 is currently under development for severe liver disease, especially alcohol-associated hepatitis. The Phase 1a trial results, shared at EASL in June 2024, showed that the treatment was safe and well tolerated, with evidence of target engagement and Wnt-pathway mediated effects in the liver.

Surrozen also published new research in the journal eLife, detailing the development of two novel ASGR bispecific antibodies that significantly boost Wnt signaling through targeted protein degradation technologies. These findings expand the potential for treating liver diseases using cell-specific regenerative therapeutics.

In addition to its research advancements, Surrozen maintained its strategic partnership with Boehringer Ingelheim (BI) for developing SZN-413, a Wnt agonist aimed at treating retinal diseases. This collaboration, initiated in late 2022, grants BI an exclusive license to develop and commercialize SZN-413 globally. Surrozen anticipates nominating a lead candidate for SZN-413 in 2024, which could trigger a $10 million milestone payment. The company stands to receive up to $587 million in milestone payments and royalties from BI upon successful development and commercialization.

Financially, Surrozen reported a cash position of $37.8 million as of June 30, 2024, up from $27.3 million at the end of March 2024. Research and development expenses for the quarter decreased to $5.3 million from $6.9 million in the same period of 2023. This reduction was attributed to a strategic restructuring in 2023, which prioritized clinical-stage programs and discontinued the development of SZN-1326. General and administrative expenses increased to $3.7 million, primarily due to employee retention tax credits received in 2023. The company's net loss for the second quarter was $25.3 million, up from $9.4 million in the same period the previous year, largely due to the fair value of pre-funded warrants and other financial instruments issued.

Surrozen is advancing its pioneering work with SZN-043, the first candidate developed using the SWEETS technology, focusing on severe alcoholic hepatitis. The Phase 1a trial demonstrated that SZN-043 was safe, well-tolerated, and showed signs of Wnt signal activation and liver function improvement. The ongoing Phase 1b trial aims to provide proof-of-concept data in the first half of 2025.

Meanwhile, SZN-413, designed with Surrozen’s SWAP technology, targets retinal diseases by stimulating Wnt signaling to repair retinal tissue. Preclinical models have shown promising results in normalizing retinal vessel growth and reducing vascular leakage, suggesting potential for reversing retinal diseases.

Overall, Surrozen's advancements in the Wnt pathway modulation and its strategic partnerships position the company as a leader in developing innovative treatments for severe liver and eye diseases. The company continues to leverage its unique technology platforms to address critical medical needs and advance its pipeline of therapeutic candidates.