Tourmaline Bio Q1 2024 Financial Results and Business Highlights

Tourmaline Bio, Inc. (NASDAQ: TRML), a clinical biotechnology firm, disclosed its financial performance for the first quarter ending March 31, 2024, alongside recent business activities. The company is dedicated to developing innovative medicines aimed at significantly improving the lives of those suffering from severe immune and inflammatory diseases.

During the first quarter of 2024, Tourmaline initiated the Phase 2 TRANQUILITY trial for TOUR006, targeting patients with elevated high-sensitivity C-reactive protein (hs-CRP) and chronic kidney disease (CKD). According to Dr. Sandeep Kulkarni, Co-Founder and CEO, TOUR006 is promising as it addresses unmet medical needs in Thyroid Eye Disease (TED), Atherosclerotic Cardiovascular Disease (ASCVD), and other inflammation-related conditions.

Tourmaline is advancing the development of TOUR006 in two significant areas: FcRn+ and cardiovascular inflammation. The company believes that TOUR006, a long-acting, fully-human, anti-IL-6 monoclonal antibody, can provide substantial therapeutic benefits for various autoantibody-driven disorders. The spiriTED Phase 2b trial in TED is currently enrolling participants, with topline data anticipated in 2025. Furthermore, a pivotal Phase 3 trial for TED is set to begin in the latter half of 2024, with results expected in 2026.

In terms of cardiovascular inflammation, Tourmaline aligned with the U.S. Food and Drug Administration (FDA) on the clinical development program for TOUR006 in ASCVD, receiving clearance for the related Investigational New Drug application (IND) in March 2024. Subsequently, the Phase 2 TRANQUILITY trial commenced in April 2024, evaluating quarterly subcutaneous dosing of TOUR006 in patients with elevated hs-CRP and CKD. Results from this trial are expected in the first half of 2025, potentially positioning TOUR006 for Phase 3 readiness in 2025 for cardiovascular disease.

In January 2024, Tourmaline successfully completed an underwritten follow-on public offering of its common stock, raising gross proceeds of $172.5 million. After accounting for underwriting discounts and offering expenses, net proceeds amounted to $161.3 million.

Financially, Tourmaline reported having $350.3 million in cash, cash equivalents, and investments as of March 31, 2024, compared to $203.0 million as of December 31, 2023. This financial position is expected to support the company’s operations and expansion efforts into 2027, including key data readouts for TOUR006 in TED and cardiovascular disease.

Research and development (R&D) expenses for the first quarter of 2024 were $11.4 million, a significant increase from $6.1 million in the first quarter of 2023. The rise in R&D expenses was mainly due to increased employee compensation costs and clinical trial expenses related to the spiriTED and TRANQUILITY trials. General and administrative expenses also rose to $6.1 million in the first quarter of 2024 from $1.4 million in the same period the previous year, driven by higher employee compensation, consulting expenses, and professional service fees.

The net loss for the first quarter of 2024 was $13.3 million, up from $7.5 million in the first quarter of 2023. The increase in net loss was attributed to the higher operating expenses and overall growth of the company. However, the net loss per share decreased to $0.55 from $8.28, due to the issuance of additional shares in a reverse merger and a public offering in January 2024.

Tourmaline Bio remains a late-stage clinical biotech firm focused on developing transformative treatments for severe immune and inflammatory diseases, with TOUR006 as its leading asset. TOUR006, a long-acting, fully-human, anti-IL-6 monoclonal antibody, has demonstrated potential in TED and ASCVD, with ongoing studies and future trials aimed at expanding its therapeutic applications.