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BEDFORD, Mass. - Stoke Therapeutics, Inc. (NASDAQ:STOK) shares dropped 4.1% after the biotechnology company announced its CEO Edward M. Kaye will step down, overshadowing better-than-expected fourth quarter results.
The company reported fourth quarter adjusted earnings per share of -$0.18, beating analyst estimates of -$0.55. Revenue came in at $22.61 million, significantly above the consensus estimate of $4.1 million and up from $2.8 million in the same quarter last year.
Despite the strong financial performance, investors focused on the leadership change. Dr. Kaye, who led Stoke for seven years from startup to late-stage clinical development, will transition to an advisory role while remaining on the board of directors.
"Recent milestones – including Breakthrough Therapy Designation, positive data supporting our Phase 3 dosing regimen and global regulatory alignment – have catalyzed the Dravet community and put us on track to initiate EMPEROR in the second quarter," said Dr. Kaye in a statement.
Stoke is developing zorevunersen as a potential first-in-class disease-modifying treatment for Dravet syndrome. The company plans to initiate the Phase 3 EMPEROR study in the second quarter of 2025.
The company ended 2024 with $246.7 million in cash and equivalents. Combined with a recent $165 million upfront payment from a collaboration with Biogen (NASDAQ:BIIB), Stoke expects to fund operations through mid-2028.
For the full year 2024, Stoke reported a net loss of $89 million, or -$1.65 per share, compared to a loss of $104.7 million, or -$2.38 per share, in 2023. Annual revenue increased to $36.6 million from $8.8 million YoY.
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