Denali Therapeutics Inc. has reported its financial results for the fourth quarter and full year 2023, and provided insights into its business highlights.
In the fourth quarter of 2023, the company incurred a net loss of $119.5 million, compared to a net loss of $98.7 million in the same period of 2022. For the full year 2023, the net loss amounted to $145.2 million, a decrease from the net loss of $326.0 million in 2022.
Collaboration revenue for the year ended December 31, 2023, was $330.5 million, reflecting a significant increase from $108.5 million in the previous year. This increase was primarily driven by revenue recognized under the Biogen collaboration agreement as a result of Biogen exercising its option to license the company's ATV:Abeta program.
Total research and development expenses for the fourth quarter of 2023 were $107.8 million, up from $92.1 million in the same period of 2022. For the full year 2023, these expenses amounted to $423.9 million, compared to $358.7 million in 2022. The increase was primarily attributed to higher external expenses related to specific programs in clinical trials and increased personnel-related expenses.
General and administrative expenses for the fourth quarter of 2023 were $24.8 million, compared to $23.5 million in the same period of 2022. For the full year 2023, these expenses were $103.4 million, up from $90.5 million in 2022. The increase was mainly due to higher personnel-related expenses and facility costs associated with a new manufacturing facility.
As of December 31, 2023, Denali Therapeutics had approximately $1.03 billion in cash, cash equivalents, and marketable securities, providing the company with a strong financial position.
The company also provided guidance on its operating expenses for 2024, anticipating them to be less than or equal to those in 2023 based on the prioritization of its portfolio. With the expected proceeds from a private investment in public equity (PIPE) financing, Denali anticipates its cash runway to extend into 2028.
Denali Therapeutics continues to focus on developing a broad portfolio of product candidates engineered to cross the blood-brain barrier for the treatment of neurodegenerative diseases and lysosomal storage diseases. The company is actively participating in upcoming investor conferences to engage with stakeholders and investors.
Today the company's shares have moved 19.1% to a price of $20.11. For more information, read the company's full 8-K submission here.
