Third Harmonic Bio Reports Q3 2024 Financial Results

Third Harmonic Bio, Inc., a clinical-stage biopharmaceutical company, has reported its financial results for the third quarter ending September 30, 2024. The company, listed on Nasdaq as THRD, is advancing medical treatments for inflammatory diseases affecting the skin, respiratory, and gastrointestinal systems.

CEO Natalie Holles emphasized the ongoing Phase 1 clinical trial of THB335, which aims to present clinical data by the first quarter of 2025. Alongside this, preparations are in progress to transition into a Phase 2 clinical trial targeting chronic spontaneous urticaria. Holles highlighted the potential of an oral small molecule to optimally target KIT, a cell surface receptor, for treating urticaria and other mast cell-mediated inflammatory diseases.

The Phase 1 SAD/MAD clinical trial of THB335 is being conducted with healthy volunteers to evaluate safety and tolerability, pharmacokinetics, and pharmacodynamic effects. The primary focus is on the reduction of serum tryptase, which is a biomarker linked to mast cell activation and correlated with clinical responses in urticaria studies. Results from this trial are anticipated in early 2025.

Financial highlights include a strong cash position, with cash and cash equivalents totaling $296.1 million as of September 30, 2024. Third Harmonic Bio believes that this financial standing is sufficient to support operating expenses and capital expenditure needs through at least 2026.

Research and development (R&D) expenses saw a significant increase, rising to $11.3 million for the quarter, compared to $6.0 million in the same period the previous year. For the first nine months of 2024, R&D expenses increased to $26.0 million from $18.1 million in 2023. This rise in R&D spending is primarily attributed to the THB335 program and increased personnel-related expenses, somewhat offset by reduced costs following the termination of the THB001 program.

General and administrative (G&A) expenses also increased, reaching $5.7 million for the quarter, up from $4.9 million in the same period in 2023. For the first nine months of 2024, G&A expenses rose to $16.5 million from $15.5 million in 2023. The increase mainly results from higher personnel-related expenses, including executive recruitment efforts.

The net loss for the third quarter of 2024 grew to $13.8 million, up from $7.3 million in the same period in 2023. For the first nine months, the net loss reached $32.4 million, compared to $24.0 million in the previous year. The increase in net loss is primarily due to higher research and development expenses, partially balanced by higher interest income.

Third Harmonic Bio is dedicated to developing innovative, highly selective small-molecule inhibitors of KIT, a receptor that regulates mast cell function and survival. Early clinical studies suggest that inhibiting KIT could significantly improve treatments for various mast-cell-mediated inflammatory diseases. THB335, the company's leading product candidate, is currently undergoing a Phase 1 clinical trial.

As of September 30, 2024, Third Harmonic Bio reported total assets of $304.5 million, with liabilities amounting to $9.6 million and stockholders' equity reaching $294.9 million.

The company remains committed to advancing its pipeline and addressing unmet medical needs in inflammatory diseases. With a robust financial foundation and promising clinical developments, Third Harmonic Bio is well-positioned for future growth and innovation in the biopharmaceutical landscape.