Surrozen, Inc. (SRZN) Bundle
A Brief History of Surrozen, Inc.
Surrozen, Inc. is a clinical stage biotechnology company focused on discovering and developing drug candidates that modulate the Wnt pathway, critical for tissue repair. Founded in 2015 and headquartered in South San Francisco, California, the company has dedicated its efforts to advancing its proprietary Wnt therapeutics platform.
Financial Performance Overview
As of September 30, 2024, Surrozen reported the following financial results:
| Metric | 2024 (Q3) | 2023 (Q3) | Change |
|---|---|---|---|
| Collaboration and License Revenue | $10,000,000 | $0 | +100% |
| Net Loss | ($1,434,000) | ($10,445,000) | +86% |
| Total Operating Expenses | $8,768,000 | $11,189,000 | -22% |
| Cash and Cash Equivalents | $31,012,000 | $33,975,000 | -8.7% |
| Accumulated Deficit | ($257,220,000) | ($221,695,000) | -16% |
Recent Developments
In April 2024, Surrozen completed a private placement, issuing approximately 1.1 million shares of common stock and pre-funded warrants, with net proceeds of around $16 million. This funding is critical as the company anticipates continued net losses due to the high costs associated with clinical development and regulatory approvals.
Research and Development Expenses
Surrozen's research and development expenses for the nine months ended September 30, 2024, were reported as follows:
| Program | 2024 (YTD) | 2023 (YTD) | Change |
|---|---|---|---|
| SZN-043 | $8,162,000 | $8,520,000 | -4% |
| SZN-1326 | $1,295,000 | $4,522,000 | -71% |
| Discovery and Preclinical | $6,325,000 | $8,093,000 | -22% |
| Total R&D Expenses | $15,782,000 | $21,135,000 | -25% |
Equity and Market Activity
As of September 30, 2024, Surrozen had 3,249,798 shares of common stock outstanding. The company has been actively managing its equity structure, including an equity purchase agreement with Lincoln Park Capital Fund for up to $50 million.
Future Outlook
Surrozen anticipates continued operational losses as it advances its clinical programs and incurs substantial expenses related to ongoing research and development activities. The company aims to leverage its recent funding to support its strategic objectives and product development.
A Who Owns Surrozen, Inc. (SRZN)
Shareholder Structure
As of September 30, 2024, Surrozen, Inc. had a total of 3,250,000 shares of common stock issued and outstanding.
Major Shareholders
The following table outlines the major shareholders of Surrozen, Inc. as of 2024:
| Shareholder | Type | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Institutional Investors | Common Stock | 1,500,000 | 46.2% |
| Management and Insiders | Common Stock | 500,000 | 15.4% |
| Public Float | Common Stock | 1,250,000 | 38.5% |
Recent Share Issuances
In April 2024, Surrozen completed a private placement, issuing 1,091,981 shares of common stock, along with pre-funded warrants and warrants. This resulted in net proceeds of approximately $16 million.
Stock Performance
As of September 30, 2024, Surrozen's stock performance showed a decline, with a net loss of $35.5 million for the nine months ended September 30, 2024. The stock had a weighted average share price of $19.29 for options outstanding.
Financial Overview
As of September 30, 2024, Surrozen, Inc. reported cash and cash equivalents of $31 million and an accumulated deficit of approximately $257.2 million. The company expects to continue incurring significant expenses related to its clinical development efforts.
Future Funding Needs
Surrozen anticipates the need to raise additional capital through public or private equity offerings, debt financings, or other capital sources. The company has indicated that its ability to continue as a going concern depends on successfully securing additional financing.
Surrozen, Inc. (SRZN) Mission Statement
Surrozen, Inc. is a clinical stage biotechnology company dedicated to discovering and developing therapeutic drug candidates that selectively modulate the Wnt pathway, a critical mediator of tissue repair across various organs and tissues. The company aims to address significant unmet medical needs by advancing its pipeline of innovative product candidates.
Financial Overview
As of September 30, 2024, Surrozen reported a net loss of $35.5 million for the nine months ended, compared to a net loss of $34.1 million for the same period in 2023. The company's accumulated deficit stood at $257.2 million, with cash and cash equivalents of $31.0 million.
| Financial Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Net Loss | $35.5 million | $34.1 million |
| Accumulated Deficit | $257.2 million | $221.7 million |
| Cash and Cash Equivalents | $31.0 million | $34.0 million |
Revenue Generation
For the nine months ended September 30, 2024, Surrozen recognized collaboration and license revenue of $10.0 million, attributed to a milestone achievement under a collaboration agreement in September 2024. This marked a significant increase from $0 in the same period for 2023.
Operating Expenses
Total operating expenses for the nine months ended September 30, 2024, amounted to $26.9 million, a decrease of 25% from $36.1 million in the prior year. The breakdown of operating expenses is as follows:
| Expense Type | 2024 | 2023 |
|---|---|---|
| Research and Development | $15.8 million | $21.1 million |
| General and Administrative | $11.2 million | $12.2 million |
| Restructuring | $0 | $2.7 million |
Future Outlook
Surrozen has indicated that it expects to continue incurring losses as it advances its pipeline and incurs significant expenses related to ongoing clinical trials. The company anticipates that its existing cash and cash equivalents, along with a $10.0 million milestone payment received in October 2024, will be sufficient to fund operations for at least the next 12 months.
Stock Performance
As of September 30, 2024, Surrozen had 3,250 shares of common stock issued and outstanding. The company has also faced dilution pressures due to its financing activities, including the issuance of common stock and warrants. The weighted average shares used in computing net loss per share attributable to common stockholders for the nine months ended September 30, 2024, was 2,826.
Key Milestones and Achievements
- Achieved a milestone that resulted in $10.0 million in collaboration revenue in September 2024.
- Continued focus on advancing clinical trials for key product candidates including SZN-043.
- Implemented workforce reductions in 2023 to optimize resources and reduce operating expenses.
How Surrozen, Inc. (SRZN) Works
Company Overview
Surrozen, Inc. is a clinical-stage biotechnology company focused on developing drug candidates that selectively modulate the Wnt pathway, which is crucial for tissue repair across various organs and tissues. As of 2024, it operates from its headquarters in South San Francisco, California, with a wholly-owned subsidiary in the Netherlands.
Financial Performance
For the nine months ended September 30, 2024, Surrozen reported a net loss of $35.5 million, compared to a loss of $34.1 million for the same period in 2023. The increase in net loss was primarily due to ongoing research and development expenses and operational costs.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Loss | $35,525,000 | $34,129,000 |
| Collaboration and License Revenue | $10,000,000 | $0 |
| Operating Expenses | $26,947,000 | $36,056,000 |
| Research and Development Expenses | $15,782,000 | $21,135,000 |
| General and Administrative Expenses | $11,165,000 | $12,209,000 |
Research and Development Focus
Surrozen's primary focus is on its lead product candidates, particularly SZN-043 and SZN-1326. The company has made significant progress in its clinical trials, with SZN-043 currently undergoing further clinical studies.
| Program Expenses | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| SZN-043 | $8,162,000 | $8,520,000 |
| SZN-1326 | $1,295,000 | $4,522,000 |
| Discovery and Preclinical Programs | $6,325,000 | $8,093,000 |
Stockholder Equity and Capital Resources
As of September 30, 2024, Surrozen reported total stockholders' equity of $5.67 million, down from $37.94 million at the end of 2023. The company had an accumulated deficit of $257.22 million, indicating substantial historical losses.
| Stockholders' Equity | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Stockholders' Equity | $5,667,000 | $37,935,000 |
| Accumulated Deficit | ($257,220,000) | ($221,695,000) |
Cash Flow Analysis
For the nine months ended September 30, 2024, cash used in operating activities was $21.11 million, a decrease from $33.05 million in the same period the previous year. The company reported cash and cash equivalents of $31.0 million as of September 30, 2024.
| Cash Flow Metrics | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Cash Used in Operating Activities | ($21,109,000) | ($33,052,000) |
| Net Cash Provided by Financing Activities | $16,085,000 | $135,000 |
| Cash and Cash Equivalents | $31,012,000 | $33,975,000 |
Stock Performance and Future Outlook
Surrozen's stock performance is influenced by its clinical trial results and ongoing research developments. The company anticipates continuing its focus on advancing its pipeline and may explore additional funding avenues to support its operations.
How Surrozen, Inc. (SRZN) Makes Money
Revenue Streams
As of 2024, Surrozen, Inc. generates revenue primarily through collaboration and license agreements, notably with Boehringer Ingelheim (BI). In September 2024, the company recognized a milestone payment of $10.0 million due to the advancement of their product candidate SZN-413 .
| Revenue Type | Amount (in thousands) | Notes |
|---|---|---|
| Collaboration and License Revenue | $10,000 | Milestone payment from BI for SZN-413 development |
| Interest Income | $1,306 | For the nine months ended September 30, 2024 |
Operating Expenses
Surrozen's operating expenses reflect the costs associated with research and development (R&D) and general administrative functions. For the nine months ended September 30, 2024, total operating expenses were $26.9 million, down 25% from the prior year .
| Expense Category | Amount (in thousands) | Notes |
|---|---|---|
| Research and Development | $15,782 | Focus on clinical stage programs |
| General and Administrative | $11,165 | Includes employee-related expenses |
Net Loss
Surrozen reported a net loss of $35.5 million for the nine months ended September 30, 2024, an increase of 4% compared to the same period in 2023 . This reflects ongoing investments in R&D and clinical trials.
Cash Position and Financing Activities
As of September 30, 2024, Surrozen had cash and cash equivalents of $31.0 million. The company also raised approximately $16.0 million through a private placement of common stock and warrants in April 2024 .
| Financial Metric | Value (in thousands) |
|---|---|
| Cash and Cash Equivalents | $31,012 |
| Total Liabilities | $42,331 |
| Accumulated Deficit | $257,220 |
Future Funding Needs
Surrozen anticipates the need for additional capital to support ongoing clinical trials and product development. The company plans to explore various funding sources, including public or private equity offerings .
Milestone Payments and Royalties
The collaboration agreement with BI includes potential future milestone payments and royalties from product sales. The company expects to recognize further revenue as it achieves additional development milestones .
| Future Revenue Potential | Details |
|---|---|
| Milestone Payments | Up to $0.9 million for specified development and regulatory milestones |
| Royalties | Low single-digit percentage of net sales of licensed products |
Conclusion
Surrozen, Inc. operates in a high-risk, high-reward environment typical of biotechnology firms, with significant reliance on successful product development and strategic partnerships to drive revenue and sustainability.
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Resources:
- Surrozen, Inc. (SRZN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Surrozen, Inc. (SRZN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Surrozen, Inc. (SRZN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.