ProKidney Corp (NASDAQ:PROK) revealed in its latest earnings report a significant increase in its third-quarter net loss year-over-year, attributed mainly to elevated research and development costs. Despite this, the company emphasized a robust liquidity position and continued progress in its clinical trials for potential kidney disease treatments.
Today, the biotechnology firm announced a net loss before noncontrolling interest of $42.0 million for Q3 2023, compared to $33.9 million during the same period last year. The increase in losses was driven by a surge in research and development expenses, which climbed to $32.2 million from $21.1 million in Q3 2022. This was due to a rise in personnel costs and greater expenses related to the company's Phase 3 program.
In contrast to the growing net loss, ProKidney reported a strong liquidity position with cash and equivalents totaling $396.3 million as of September 30, 2023. This figure is down from $490.3 million at the end of the previous fiscal year but is still substantial. James Coulston, CFO of ProKidney, voiced confidence regarding the company's financial health, projecting that these reserves would be sufficient to support operations until Q4 2025.
The company's general and administrative expenses remained consistent at $14.4 million for the quarter, mirroring figures from the same period in the previous year. Although there were decreases in certain costs related to business combinations in 2022, these were balanced out by higher equity-based compensation costs incurred this year.
ProKidney's balance sheet showed total assets valued at $451.8 million as of September 30, 2023, marking a decrease from $517.9 million at the end of the previous year. Shareholders' deficit saw a slight improvement, with a reduction from $(1,096.6) million to $(1,092.6) million over the same timeframe.
The company also disclosed that it had used $(64.7) million in net cash for operating activities during the nine months ending on September 30, 2023.
On the clinical front, ProKidney's lead product candidate REACT (Renal Autologous Cell Therapy) is advancing through Phase 3 trials. The company is also anticipating interim data readouts for another program named REGEN-007, which aims to evaluate therapy effectiveness in preserving kidney function among diabetic patients facing a high risk of kidney failure. These developments are closely watched as they have the potential to offer new treatment options for individuals with chronic kidney diseases.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.