Morphic Therapeutic (NASDAQ: MORF) has reported its corporate highlights and financial results for the first quarter of 2024, showcasing its continued progress and financial standing.
The company ended the first quarter with $658.8 million in cash, cash equivalents, and marketable securities, providing it with a strong cash position and a cash runway into the second half of 2027. This represents a significant increase in its financial resources compared to the same period last year.
In terms of financial performance, Morphic reported a net loss of $45.3 million, or $0.91 per share, for the quarter ended March 31, 2024. This is a notable increase compared to the net loss of $36.1 million, or $0.90 per share, for the same quarter last year. The rise in net loss indicates the company's increased investment in its development programs and clinical trials, as well as higher research and development expenses.
Speaking of research and development expenses, these amounted to $42.4 million for the first quarter of 2024, compared to $30.4 million for the same quarter last year. The increase was primarily driven by higher development costs, increased clinical trial expenses to support phase 2 clinical studies, and other research costs to support early development candidates.
Furthermore, general and administrative expenses for the quarter ended March 31, 2024, were $11.2 million, up from $9.3 million for the same quarter last year. This rise was primarily attributed to increased non-cash stock-based compensation expenses.
Morphic also highlighted its progress in its development programs, with enrollment continuing on track for the emerald-2 phase 2b trial of Morf-057 in patients with moderate-to-severe ulcerative colitis. The company anticipates dosing the first patient in the garnet phase 2 study of Morf-057 in patients with moderate-to-severe Crohn’s disease in the second quarter of 2024.
The addition of Dr. Simon Cooper as Chief Medical Officer was also emphasized. Dr. Cooper brings relevant therapeutic area drug development experience to the company, having played key roles in the development of therapies for multiple indications including ulcerative colitis and Crohn’s disease.
Morphic's focus on its development programs, coupled with its strengthened leadership team and improved financial position, positions the company for continued progress as it advances its pipeline, including the program in pulmonary hypertensive diseases. Today the company's shares have moved -1.8% to a price of $27.18. For more information, read the company's full 8-K submission here.
