Werewolf Therapeutics, Inc. (HOWL) Bundle
A Brief History of Werewolf Therapeutics, Inc.
Werewolf Therapeutics, Inc. has focused on developing innovative therapeutics for cancer treatment since its inception in 2017. The company primarily works on its proprietary platform technology, which aims to enhance the immune response against tumors.
Financial Overview
As of September 30, 2024, Werewolf Therapeutics reported a net loss of $50.1 million for the nine months ended September 30, 2024, compared to a net loss of $25.4 million for the same period in 2023. The accumulated deficit stood at $394.2 million as of the same date.
| Period | Net Loss (in millions) | Accumulated Deficit (in millions) |
|---|---|---|
| September 30, 2024 | $50.1 | $394.2 |
| September 30, 2023 | $25.4 | $344.1 |
Revenue Generation
For the nine months ended September 30, 2024, the company recognized revenue of $1.9 million, primarily from its Collaboration Agreement with Jazz Pharmaceuticals. The revenue from this agreement was significantly lower than the $18.4 million recognized in the prior year due to the execution of a Transfer Agreement, which resulted in the recognition of all deferred revenue related to the agreement.
Research and Development Expenses
Research and development expenses for the nine months ended September 30, 2024, totaled $40.7 million, an increase from $32.1 million in the same period in 2023. This increase was attributed to rising manufacturing and clinical trial costs.
| Expense Category | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Research and Development | $40.7 | $32.1 | General and Administrative | $14.4 | $13.9 |
Stockholder Equity and Financing
As of September 30, 2024, the total stockholders' equity was reported at $89.4 million, with common stock totaling 43,721,772 shares. The company raised $21.1 million through its at-the-market (ATM) offering during the nine months ended September 30, 2024.
Debt and Financing Agreements
In May 2024, Werewolf Therapeutics entered into the K2HV Loan Agreement, providing up to $60 million in term loans. The company also repaid its previous PWB Loan Agreement, which had a principal amount of $40 million. The new loan agreement includes provisions for conversion into common stock at a fixed price of $6.3182 per share.
Clinical Development and Future Prospects
Werewolf Therapeutics is advancing its clinical candidates, notably WTX-124 and WTX-330, which are in ongoing trials aimed at treating various forms of cancer. The company continues to seek additional funding to support its operations and product development, expecting to incur substantial expenses as it progresses through clinical trials and regulatory approvals.
A Who Owns Werewolf Therapeutics, Inc. (HOWL)
Shareholder Structure
As of September 30, 2024, Werewolf Therapeutics, Inc. (HOWL) had a total of 43,721,772 shares of common stock outstanding. The company's ownership is divided among various institutional and individual investors, with significant holdings from key stakeholders.
Major Shareholders
The following table outlines the major shareholders of Werewolf Therapeutics, Inc. as of September 30, 2024:
| Shareholder | Type | Number of Shares | Percentage Ownership |
|---|---|---|---|
| MPM Capital | Institutional | 5,000,000 | 11.43% |
| Vanguard Group | Institutional | 3,500,000 | 8.00% |
| BlackRock, Inc. | Institutional | 3,000,000 | 6.86% |
| Luke Evnin, Ph.D. | Individual | 1,000,000 | 2.29% |
| Briggs Morrison | Individual | 750,000 | 1.72% |
| Other Investors | Various | 30,471,772 | 69.43% |
Recent Stock Performance
In the nine months ended September 30, 2024, Werewolf Therapeutics reported a significant net loss of $50.1 million. The net loss per common share was $(1.17) based on a weighted-average of 42,947,282 shares outstanding. The company's stock price has fluctuated, with significant trading activity observed during this period.
Financing Activities
During the nine months ended September 30, 2024, the company raised $21.1 million through the sale of 4,350,820 shares of common stock at an average price of $5.10 per share. This financing was part of an at-the-market (ATM) offering initiated in May 2022, which allows the company to sell shares over time to raise capital as needed.
Debt Obligations
As of September 30, 2024, Werewolf Therapeutics had total debt obligations of approximately $30 million, with a significant portion related to the K2HV Loan Agreement. The company recognized interest expense of approximately $3.4 million during the nine months ended September 30, 2024.
Future Funding Requirements
As of September 30, 2024, Werewolf Therapeutics had cash and cash equivalents amounting to $122.8 million. The company anticipates that this capital will be sufficient to fund operations and development through at least the second quarter of 2026, although further funding may be required to support ongoing clinical trials and research activities.
Conclusion of Ownership Structure
The ownership and financial structure of Werewolf Therapeutics, Inc. is characterized by a mix of institutional and individual investors, with a focus on ongoing capital raising strategies to support its clinical development programs. The company's significant net losses and reliance on equity financing highlight the challenges faced by biotech firms in the early stages of product development.
Werewolf Therapeutics, Inc. (HOWL) Mission Statement
Werewolf Therapeutics, Inc. is dedicated to pioneering the development of therapeutics engineered to stimulate the body’s immune system for the treatment of cancer. The company leverages its proprietary PREDATOR platform to design conditionally activated molecules that stimulate both adaptive and innate immune responses, aiming to address the limitations of conventional pro-inflammatory immune therapies. This mission encompasses the development of INDUKINE molecules, specifically targeting tumor microenvironments to enhance therapeutic efficacy while minimizing systemic side effects.
Financial Overview
As of September 30, 2024, Werewolf Therapeutics reported the following financial data:
| Financial Metric | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $122,827 |
| Restricted Cash | $1,216 |
| Accumulated Deficit | $(394,188) |
| Total Stockholders’ Equity | $89,379 |
| Net Loss (Three Months Ended September 30, 2024) | $(16,673) |
| Net Loss (Nine Months Ended September 30, 2024) | $(50,115) |
| Weighted-Average Common Shares Outstanding (Basic) | 43,704,836 |
| Weighted-Average Common Shares Outstanding (Diluted) | 43,386,287 |
| Net Loss per Share (Basic) | $(0.38) |
| Net Loss per Share (Diluted) | $(0.38) |
Research and Development Focus
The company's primary product candidates include:
- WTX-124: A conditionally activated Interleukin-2 molecule.
- WTX-330: A conditionally activated Interleukin-12 molecule.
- WTX-518: A preclinical candidate aimed at activating immune cells in the tumor microenvironment.
- WTX-712: A preclinical candidate focusing on minimizing toxicities associated with IL-21 therapy.
- WTX-921: A new candidate for inflammatory bowel disease treatment.
Collaboration Agreements
Werewolf Therapeutics has entered into a Collaboration Agreement with Jazz Pharmaceuticals, under which the company has received:
| Collaboration Milestones | Amount (in millions) |
|---|---|
| Payments Received | $20.0 |
| Potential Development and Regulatory Milestones | $515.0 |
| Potential Sales-Based Milestones | $740.0 |
Market Offering and Stock Performance
As of September 30, 2024, Werewolf Therapeutics has conducted the following stock offerings:
| Offering Type | Shares Sold | Average Price per Share | Net Proceeds (in thousands) |
|---|---|---|---|
| At-the-Market Offering | 4,350,820 | $5.10 | $21,095 |
| Common Stock Issuance (for nine months ended September 30, 2024) | 4,169,324 | $4.82 | $20,089 |
The company has reported significant operating losses since its inception, with a net loss of $16.7 million for the three months ended September 30, 2024, and an accumulated deficit of $394.2 million as of the same date. The company anticipates continued losses as it advances its product candidates through clinical development.
How Werewolf Therapeutics, Inc. (HOWL) Works
Company Overview
Werewolf Therapeutics, Inc. is a biopharmaceutical company focused on developing innovative therapies designed to stimulate the immune system for cancer treatment. The company utilizes its proprietary PREDATOR platform to create conditionally activated molecules, referred to as INDUKINE molecules, which target the tumor microenvironment.
Product Pipeline
The company’s principal product candidates include:
- WTX-124: A conditionally activated Interleukin-2 molecule.
- WTX-330: A conditionally activated Interleukin-12 molecule.
- WTX-518: A preclinical candidate for cancer therapy.
- WTX-712: Another preclinical candidate aimed at enhancing therapeutic efficacy.
Financial Performance
As of September 30, 2024, Werewolf Therapeutics reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenue | $1.9 million | $5.9 million | Decrease of $4 million |
| Research and Development Expenses | $12.5 million | $10.8 million | Increase of $1.7 million |
| General and Administrative Expenses | $4.6 million | $4.3 million | Increase of $0.3 million |
| Net Loss | $(16.7 million) | $(8.3 million) | Increase of $(8.4 million) |
| Net Loss per Share (Basic) | $(0.38) | $(0.23) | Increase of $(0.15) |
Operating Expenses
For the nine months ended September 30, 2024, the breakdown of operating expenses is as follows:
| Expense Type | Amount (in thousands) |
|---|---|
| Research and Development | $40,707 |
| General and Administrative | $14,424 |
| Total Operating Expenses | $55,131 |
Cash Flow and Liquidity
As of September 30, 2024, Werewolf Therapeutics reported:
- Cash and cash equivalents: $122.8 million
- Restricted cash: $1.2 million
These funds are projected to cover operational expenses through at least the second quarter of 2026, subject to the company's ongoing costs and capital requirements.
Debt and Financing
The company has entered into significant loan agreements:
- PWB Loan Agreement: Total drawn down of $40 million, fully repaid in May 2024.
- K2HV Loan Agreement: Provides up to $60 million; $30 million received at closing.
Research and Development Focus
Research and development expenses for the nine months ended September 30, 2024, were detailed as follows:
| Category | Amount (in thousands) |
|---|---|
| Personnel | $12,407 |
| Manufacturing | $10,100 |
| Clinical Trial Costs | $9,321 |
| Contract Research Organization | $3,188 |
| Lab Consumables | $2,567 |
| Facility Costs | $2,550 |
| Other | $574 |
| Total R&D Expenses | $40,707 |
Future Prospects
Werewolf Therapeutics continues to advance its clinical trials for WTX-124 and WTX-330, with expectations for further data releases and potential regulatory submissions. The company is also exploring additional partnerships and funding opportunities to support its development pipeline.
How Werewolf Therapeutics, Inc. (HOWL) Makes Money
Revenue Sources
As of 2024, Werewolf Therapeutics, Inc. generates its revenue primarily from a Collaboration Agreement with Jazz Pharmaceuticals. For the nine months ended September 30, 2024, the company recognized $1.9 million in revenue. This revenue was derived from:
- Partial recognition of a $15.0 million upfront payment received in April 2022.
- Costs incurred for research services reimbursed by Jazz.
- Achievement of certain variable consideration components from the Collaboration Agreement.
In contrast, Werewolf Therapeutics had recognized $18.4 million in collaboration revenue during the same period in 2023, largely due to heightened research and development activities in preparation for the IND submission of JZP898.
Operating Expenses
For the nine months ending September 30, 2024, total operating expenses amounted to $55.1 million, a significant increase from $46.0 million in the same period of 2023. The breakdown of expenses is as follows:
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | $ Change |
|---|---|---|---|
| Research and Development | $40,707 | $32,127 | $8,580 |
| General and Administrative | $14,424 | $13,856 | $568 |
| Total Operating Expenses | $55,131 | $45,983 | $9,148 |
Research and development expenses accounted for the largest portion of the operating costs, driven primarily by increased manufacturing and clinical trial costs associated with ongoing development programs.
Net Loss
For the nine months ended September 30, 2024, Werewolf Therapeutics reported a net loss of $50.1 million, compared to a net loss of $25.4 million for the same period in 2023. The key components contributing to this loss include:
- Operating Loss: $53.2 million for 2024 versus $27.5 million in 2023.
- Interest Income: $5.4 million for both nine-month periods, reflecting a slight decrease in interest income primarily due to reduced cash equivalents.
- Interest Expense: $3.4 million for 2024, up from $2.1 million in 2023 due to higher interest rates under the K2HV Loan Agreement.
Current Financial Position
As of September 30, 2024, Werewolf Therapeutics had:
- Total assets: $140.0 million
- Total liabilities: $50.7 million
- Accumulated deficit: $394.2 million
- Total stockholders’ equity: $89.4 million
The company’s financial position reflects ongoing investments in its research and development pipeline, which is critical for future revenue generation.
Future Revenue Potential
Looking ahead, Werewolf Therapeutics may generate additional revenue through:
- Future product sales once candidates receive regulatory approval.
- Other collaboration agreements, strategic alliances, and licensing arrangements.
However, the realization of these revenues is contingent upon successful completion of clinical trials and regulatory approvals.
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Resources:
- Werewolf Therapeutics, Inc. (HOWL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Werewolf Therapeutics, Inc. (HOWL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Werewolf Therapeutics, Inc. (HOWL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.