LEXINGTON, Mass.–(BUSINESS WIRE)–Frequency Therapeutics, Inc. (Nasdaq: FREQ) today announced business updates and financial results for the second quarter ended June 30, 2023.
In July, the Company announced that it entered into a definitive merger agreement with Korro Bio, Inc., a leading RNA editing company focused on the discovery and development of novel genetic medicines. After the anticipated consummation of the merger, the combined company will operate under Korro Bio, Inc. with a focus on the advancement of Korro Bio’s portfolio of RNA editing programs and will trade on Nasdaq under the ticker symbol “KRRO.” The merger is expected to close in the fourth quarter of 2023, subject to approval by Frequency Therapeutics’ stockholders and other customary closing conditions.
Frequency Therapeutics continues to explore strategic alternatives for its pre-clinical remyelination program for multiple sclerosis. If it has not otherwise monetized its remyelination program by the closing of the merger, Frequency Therapeutics stockholders of record will be issued a contingent value right (CVR) for each outstanding share of Frequency Therapeutics common stock held by such Frequency Therapeutics stockholder prior to the closing of the proposed merger. The CVR would represent the right to receive certain cash payments from proceeds received by Frequency Therapeutics related to the program.
Second Quarter 2023 Financial Results
Cash Position: As of June 30, 2023, Frequency had cash, cash equivalents and marketable securities of $46.5 million (excluding restricted cash). In April, the Company prepaid all outstanding loans, eliminating its debt burden.
Research and Development Expenses: Research and development expenses were $4.6 million for the three months ended June 30, 2023, as compared to $13.3 million for the comparable period of 2022. Research and development expenses were $15.9 million for the six months ended June 30, 2023, as compared to $27.1 million for the comparable period of 2022. Excluding stock-based compensation expense of $0.2 million for the three months ended June 30, 2023 and $1.0 million for the six months ended June 30, 2023, research and development expenses for the three and six months ended June 30, 2023, were $4.4 million and $14.9 million, respectively.
General and Administrative Expenses: General and administrative expenses were $7.2 million for the three months ended June 30, 2023, as compared to $8.0 million for the comparable period of 2022. General and administrative expenses were $16.4 million for the six months ended June 30, 2023, as compared to $17.5 million for the comparable period of 2022. Excluding stock-based compensation expense of $2.7 million for the three months ended June 30, 2023 and $5.3 million for the six months ended June 30, 2023, general and administrative expenses for the three and six months ended June 30, 2023 were $4.5 million and $11.1 million, respectively.
Net Loss: Net loss was $10.8 million for the three months ended June 30, 2023, as compared to $21.3 million for the comparable period of 2022. Net loss was $30.3 million for the six months ended June 30, 2023, as compared to $44.7 million for the comparable period of 2022. The period over period decreases in net loss were primarily due to the discontinuation of the Company’s hearing program in Q1 2023.
About Frequency Therapeutics
Headquartered in Lexington, Mass., Frequency Therapeutics is pioneering a new category in regenerative medicine that aims to restore human function by developing therapeutics that activate a person’s innate regenerative potential within the body through the activation of progenitor cells. The Company’s lead preclinical program is designed to activate oligodendrocyte precursor cells with the goal of driving remyelination and potential functional recovery for individuals living with multiple sclerosis. For more information, visit www.frequencytx.com.
