Thu, Jul 25, 11:07 AM (44 days ago)
Morphic Holding, Inc. reported a net loss of $102.9 million for the six months ended June 30, 2024, compared to $75.1 million for the same period in 2023. The increase in net loss is attributed to higher research and development (R&D) expenses, which rose by $25.5 million, primarily due to costs associated with ongoing Phase 2 clinical studies for MORF-057 and other development activities. General and administrative expenses also increased by $8.3 million, largely due to higher equity-based compensation and acquisition-related costs. The company’s cash, cash equivalents, and marketable securities totaled $628.4 million as of June 30, 2024, down from $704.3 million at the end of 2023. Morphic anticipates that existing funds will be sufficient to support operations for at least the next 12 months. Morphic is focused on advancing its lead product candidate, MORF-057, an oral integrin inhibitor for inflammatory bowel disease (IBD). The company reported positive results from its Phase 2a EMERALD-1 trial and has initiated the EMERALD-2 Phase 2b trial. Additionally, Morphic is developing MORF-088 for myelofibrosis and other early-stage programs. The company entered into a merger agreement with Eli Lilly and Company on July 7, 2024, with Lilly set to acquire Morphic for $57.00 per share in cash, pending regulatory approvals and other conditions. If the merger is not completed, Morphic may need to seek additional funding, which could be challenging given current economic conditions.