Assembly Biosciences Reports 39% Increase in Collaboration Revenue for Q2 2026

Assembly Biosciences, Inc. reported its financial results for the second quarter of 2026, revealing a collaboration revenue of $13.4 million, a 39% increase from $9.6 million in the same period last year. For the first half of 2026, collaboration revenue reached $21.6 million, up 13% from $19.0 million in the first half of 2025. The increase in revenue is attributed to the timing of activities and progress under the collaboration agreement with Gilead Sciences, which included a $5.1 million cumulative catch-up adjustment recognized in the second quarter. Despite the revenue growth, the company continues to operate at a loss, reporting a net loss of $3.9 million for the quarter, a significant improvement from the $10.2 million loss in the prior year.

In terms of expenses, Assembly's total operating expenses for the second quarter were $19.7 million, down from $20.7 million in the same quarter of 2025. Research and development expenses decreased to $14.9 million from $16.1 million, primarily due to lower external program costs associated with completed clinical trials. General and administrative expenses rose slightly to $4.8 million, reflecting higher stock-based compensation. The company’s cash and cash equivalents stood at $32.3 million as of June 30, 2026, down from $58.5 million at the end of 2025, while marketable securities increased to $288.1 million from $189.7 million.

Strategically, Assembly has made significant progress in its collaboration with Gilead, which includes the licensing of its helicase-primase inhibitor (HPI) program. Gilead is expected to initiate a Phase 2 study of the investigational candidate 1179 by the end of 2026. The collaboration is critical for Assembly, as it allows the company to leverage Gilead's resources for further development and commercialization of its product candidates. The company also reported a successful underwritten offering in May 2026, generating approximately $108.1 million in net proceeds, which is expected to extend its funding runway into late 2028.

Operationally, Assembly has focused on advancing its pipeline of investigational therapies targeting serious viral and liver diseases. The company is preparing for Phase 2 studies for its sodium taurocholate co-transporting peptide inhibitor, ABI-6250, with initiation expected in the fourth quarter of 2026. Additionally, the company is exploring partnerships for its capsid assembly modulator, ABI-4334, which is currently not advancing without a partner. As of June 30, 2026, Assembly had a total of 19.9 million shares outstanding, reflecting an increase from 15.9 million shares at the end of 2025.

Looking ahead, Assembly Biosciences remains focused on its strategic collaboration with Gilead and the advancement of its clinical programs. The company anticipates continued investment in research and development, which may lead to increased operating expenses. Management believes that the current cash and marketable securities will be sufficient to fund operations into late 2028, although future capital requirements will depend on various factors, including the success of its collaborations and the progress of its clinical trials.