Rallybio Corporation (RLYB) Bundle
A Brief History of RALLYBIO CORPORATION
Rallybio Corporation, founded in 2021, has focused on developing innovative therapies for patients with rare diseases. The company went public in August 2021, raising approximately $83.0 million through its initial public offering (IPO), where it issued 7,130,000 shares at a price of $13.00 per share.
Financial Overview as of 2024
As of September 30, 2024, Rallybio reported a net loss of $46.7 million for the nine-month period, an improvement from a net loss of $54.3 million for the same period in 2023. The company’s accumulated deficit reached $282.0 million by the end of the third quarter of 2024.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Loss | $46.7 million | $54.3 million |
| Revenue | $0.6 million | $0 million |
| Research & Development Expenses | $34.1 million | $37.6 million |
| General & Administrative Expenses | $15.4 million | $20.2 million |
| Weighted Average Shares Outstanding | 43,170,177 | 40,382,625 |
Recent Developments
In April 2024, Rallybio entered a collaboration agreement with Johnson & Johnson, aiming to develop therapies for fetal and neonatal alloimmune thrombocytopenia (FNAIT). This agreement included an upfront payment of $500,000 and potential payments totaling up to $700,000 based on specific milestones.
Operational Changes
Rallybio undertook a significant restructuring effort in early 2024, reducing its workforce by approximately 45% to streamline operations and focus on key development programs. This restructuring resulted in charges of approximately $3.3 million, which were reflected in both research and development and general and administrative expenses.
Stock Performance
As of September 30, 2024, Rallybio had 41,487,586 shares of common stock outstanding, with a market capitalization that fluctuated in response to ongoing clinical developments and partnership announcements.
Investment and Funding
Rallybio has funded its operations primarily through equity financing, raising approximately $182.5 million prior to its IPO. Following its IPO, the company also completed a follow-on offering in November 2022, raising an additional $50.8 million.
Collaboration and License Agreements
The collaboration agreement with Johnson & Johnson is pivotal for Rallybio’s strategy, as it not only provides immediate funding but also aligns the company with a major player in the pharmaceutical industry.
| Collaboration Agreement Details | Amount |
|---|---|
| Upfront Payment | $500,000 |
| Potential Milestone Payments | $700,000 |
The company has not yet commercialized any products, and its focus remains on advancing its clinical candidates through the necessary regulatory pathways.
Rallybio continues to adapt its operational strategies and financial management to navigate the complexities of the biotech landscape, aiming for sustainable growth and successful product development in the coming years.
A Who Owns Rallybio Corporation (RLYB)
Ownership Structure
As of 2024, Rallybio Corporation (RLYB) has a diverse ownership structure that includes institutional investors, individual shareholders, and company insiders. The total number of common shares outstanding as of September 30, 2024, is 41,487,586 shares.
Major Shareholders
The following table summarizes the major shareholders of Rallybio Corporation, including their respective ownership percentages:
| Shareholder | Shares Owned | Ownership Percentage |
|---|---|---|
| Johnson & Johnson Development Corporation (JJDC) | 3,636,363 | 8.75% |
| FMR LLC (Fidelity Investments) | 4,451,300 | 10.73% |
| BlackRock, Inc. | 3,200,000 | 7.71% |
| Vanguard Group, Inc. | 2,500,000 | 6.03% |
| Insider Ownership | 1,500,000 | 3.62% |
| Other Institutional Investors | 15,000,000 | 36.12% |
| Public Float | 11,500,000 | 27.77% |
Recent Stock Transactions
In April 2024, Rallybio entered into a Securities Purchase Agreement with JJDC, selling 3,636,363 shares at a price of $1.82 per share, generating gross proceeds of approximately $6.6 million.
Financial Overview
As of September 30, 2024, Rallybio reported cash, cash equivalents, and marketable securities totaling $75.1 million. The company has incurred substantial operating losses, with a net loss of $46.7 million for the nine months ended September 30, 2024.
Market Performance
Rallybio Corporation's stock price has fluctuated significantly due to market conditions and company performance. As of early 2024, the stock is trading at approximately $1.82 following the recent equity financing.
Conclusion on Ownership Dynamics
The ownership landscape of Rallybio Corporation reflects a mix of institutional and retail investors, with significant stakes held by major firms like JJDC and Fidelity. The company's ongoing financial challenges and strategic partnerships will likely influence future shareholder dynamics.
Rallybio Corporation (RLYB) Mission Statement
Rallybio Corporation is a clinical-stage biotechnology company focused on developing and commercializing life-transforming therapies for patients suffering from severe and rare diseases. The company aims to address unmet medical needs through its innovative pipeline, which includes product candidates targeting maternal fetal health, complement dysregulation, hematology, and metabolic disorders.
Financial Overview
As of September 30, 2024, Rallybio reported the following key financial metrics:
| Financial Metric | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $25,320 |
| Marketable Securities | $49,819 |
| Total Assets | $79,007 |
| Accumulated Deficit | $(281,976) |
| Total Stockholders' Equity | $70,818 |
| Net Loss (for the nine months ended September 30, 2024) | $(46,731) |
Revenue Generation
Rallybio's collaboration and license revenue reached $598,000 during the nine months ended September 30, 2024, compared to $0 in the same period in 2023. This revenue increase is attributed to the Collaboration Agreement with Johnson & Johnson, completed in Q2 2024.
Operating Expenses
The company reported operating expenses as follows for the nine months ended September 30, 2024:
| Expense Category | Amount (in thousands) |
|---|---|
| Research and Development | $34,122 |
| General and Administrative | $15,364 |
| Total Operating Expenses | $49,486 |
Research and Development Focus
Rallybio is advancing several key product candidates:
- RLYB212: An anti-HPA-1a antibody for the prevention of fetal and neonatal alloimmune thrombocytopenia (FNAIT).
- RLYB116: An inhibitor of complement component 5 (C5), targeting diseases of complement dysregulation.
Both programs have completed Phase 1 clinical studies, with plans to initiate a Phase 2 clinical trial for RLYB212 in Q4 2024.
Equity Financing and Capital Resources
Rallybio has raised capital through various equity financings, including:
| Financing Event | Gross Proceeds (in millions) | Date |
|---|---|---|
| IPO | $83.0 | August 2021 |
| Follow-on Offering | $54.8 | November 2022 |
| Securities Purchase Agreement with JJDC | $6.6 | April 2024 |
As of September 30, 2024, the company had sufficient cash, cash equivalents, and marketable securities to fund its operating expenses into mid-2026.
How Rallybio Corporation (RLYB) Works
Overview of Operations
Rallybio Corporation is a clinical-stage biotechnology firm focused on developing therapies for severe and rare diseases. The company has built a pipeline primarily targeting areas such as maternal-fetal health and complement dysregulation.
Financial Performance
For the three months ended September 30, 2024, Rallybio reported:
| Financial Metrics | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Collaboration and license revenue | $299 | $0 | $299 |
| Total revenue | $299 | $0 | $299 |
| Research and development expenses | $8,240 | $13,288 | $(5,048) |
| General and administrative expenses | $4,125 | $6,075 | $(1,950) |
| Total operating expenses | $12,365 | $19,363 | $(6,998) |
| Net loss | $(11,466) | $(18,374) | $6,908 |
Revenue Breakdown
Collaboration and license revenue was $0.6 million for the nine months ended September 30, 2024, as compared to $0 for the same period in 2023, attributed to a new collaboration agreement with Johnson & Johnson (J&J).
Research and Development Expenses
For the nine months ended September 30, 2024, research and development expenses were $34.1 million, down from $37.6 million in the previous year. This decrease is primarily due to:
- A $2.1 million decrease in RLYB116 development costs.
- A $1.2 million decrease in payroll and personnel-related costs due to workforce reductions effective March 2024.
- A $0.5 million decrease in RLYB212 development costs.
General and Administrative Expenses
General and administrative expenses totaled $15.4 million for the nine months ended September 30, 2024, compared to $20.2 million in the same period of 2023. The decrease is attributed to:
- A $3.1 million decrease in consulting fees and related expenses.
- A $1.7 million decrease in payroll and personnel-related costs.
Loss on Investment in Joint Venture
For the nine months ended September 30, 2024, Rallybio recorded a loss on investment in joint ventures amounting to $1.8 million, compared to $1.4 million in the same period of 2023.
Cash Flow Summary
The following table summarizes cash flows for Rallybio for the nine months ended September 30:
| Cash Flow Activities | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net cash used in operating activities | $(39,420) | $(48,620) |
| Net cash provided by investing activities | $35,065 | $10,749 |
| Net cash provided by financing activities | $5,181 | $71 |
Liquidity and Capital Resources
As of September 30, 2024, Rallybio had cash, cash equivalents, and marketable securities totaling $75.1 million, which is expected to fund operations into mid-2026.
Stockholder Equity
As of September 30, 2024, Rallybio's stockholders' equity stood at approximately $70.8 million, with an accumulated deficit of $281.976 million.
Recent Developments
In April 2024, Rallybio entered into a collaboration agreement with J&J, which includes a payment structure with upfront and milestone payments.
How Rallybio Corporation (RLYB) Makes Money
Revenue Streams
As of 2024, Rallybio Corporation generates revenue primarily through collaboration and license agreements. For the nine months ended September 30, 2024, the company reported total collaboration and license revenue of $598,000, compared to $0 in the same period of 2023. This revenue is attributed to a Collaboration Agreement with Johnson & Johnson that commenced in the second quarter of 2024.
| Period | Collaboration and License Revenue | Total Revenue |
|---|---|---|
| Q3 2024 | $299,000 | $299,000 |
| Q3 2023 | $0 | $0 |
| 9M 2024 | $598,000 | $598,000 |
| 9M 2023 | $0 | $0 |
Operating Expenses
Rallybio incurs significant operating expenses, primarily in research and development (R&D) and general administrative costs. For the nine months ended September 30, 2024, the total operating expenses amounted to $49.5 million, a decrease from $57.8 million in the same period of 2023. The breakdown is as follows:
| Expense Type | 9M 2024 | 9M 2023 | Change |
|---|---|---|---|
| Research and Development | $34.1 million | $37.6 million | $(3.5 million) |
| General and Administrative | $15.4 million | $20.2 million | $(4.8 million) |
Net Loss
Rallybio has reported net losses since its inception. For the nine months ended September 30, 2024, the net loss was $46.7 million, compared to a net loss of $54.3 million for the same period in 2023. The company attributes these losses to ongoing R&D activities and general administrative expenses.
| Period | Net Loss | Loss per Share |
|---|---|---|
| 9M 2024 | $(46.7 million) | $(1.08) |
| 9M 2023 | $(54.3 million) | $(1.35) |
Investment and Financing Activities
Rallybio has raised capital through equity financings. Notably, in April 2024, the company entered into a Securities Purchase Agreement with Johnson & Johnson Innovation (JJDC), selling 3,636,363 shares of common stock at a price of $1.82 per share, resulting in gross proceeds of approximately $6.6 million.
Additionally, the company reported cash and cash equivalents of $18.9 million and marketable securities of $49.8 million as of September 30, 2024, indicating a total liquidity of $68.7 million.
| Liquidity Components | Amount |
|---|---|
| Cash and Cash Equivalents | $18.9 million |
| Marketable Securities | $49.8 million |
| Total Liquidity | $68.7 million |
Future Expectations
Looking ahead, Rallybio plans to continue focusing on the development of its product candidates, particularly RLYB212 and RLYB116. The company anticipates incurring additional operating losses as it advances its clinical trials and seeks regulatory approvals. Based on its current operating plan, Rallybio expects that its existing cash and marketable securities will be sufficient to fund its operations into mid-2026.
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Resources:
- Rallybio Corporation (RLYB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Rallybio Corporation (RLYB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Rallybio Corporation (RLYB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.