Assembly Biosciences Reports 63% Revenue Growth to $9.4M in Q1 2025

Assembly Biosciences, Inc. reported its financial results for the first quarter of 2025, revealing a collaboration revenue of $9.4 million, a 63% increase from $5.8 million in the same period last year. The rise in revenue is attributed to increased costs incurred under the Gilead Collaboration Agreement, which has been a significant source of funding for the company. Despite this revenue growth, the company continues to operate at a loss, with a net loss of $8.8 million for the quarter, slightly improved from a net loss of $9.1 million in the first quarter of 2024. The loss per share also decreased from $(1.66) to $(1.17), reflecting a reduction in the weighted average shares outstanding due to recent equity offerings.

In terms of operational developments, Assembly Biosciences has made strides in advancing its clinical pipeline. The company is currently developing multiple investigational therapies targeting serious viral diseases, including two helicase-primase inhibitors for recurrent genital herpes and an orally bioavailable hepatitis delta virus entry inhibitor. The company has initiated several Phase 1 clinical studies, with interim results indicating positive outcomes that support further development. The collaboration with Gilead Sciences, which includes licensing agreements and equity investments, remains a cornerstone of Assembly's strategy, providing both financial support and access to Gilead's extensive resources.

The company’s total operating expenses for the first quarter of 2025 were $19.4 million, up from $16.5 million in the prior year, primarily driven by increased research and development costs associated with advancing its clinical programs. Research and development expenses rose to $14.9 million, reflecting a focus on external program expenses, particularly for the development of its hepatitis delta virus entry inhibitor, ABI-6250, and the helicase-primase inhibitor, ABI-5366. General and administrative expenses decreased slightly to $4.5 million, attributed to cost savings from a renegotiated corporate headquarters lease.

As of March 31, 2025, Assembly Biosciences had total assets of $99.0 million, down from $119.2 million at the end of 2024, primarily due to a decrease in cash and cash equivalents. The company reported cash and cash equivalents of $23.4 million, a decline from $38.3 million at the end of the previous fiscal year. The decrease in cash is linked to the company's ongoing operational expenditures and investments in its clinical pipeline. The company anticipates that its existing cash, cash equivalents, and marketable securities will be sufficient to fund operations into mid-2026, although it may require additional financing to support its development activities.

Looking ahead, Assembly Biosciences remains focused on advancing its clinical programs and expects to continue incurring significant losses as it develops its product candidates. The company is actively seeking to secure additional funding through strategic collaborations, public or private equity, or debt financing to support its ongoing research and development efforts. The success of its collaboration with Gilead will be critical in determining the pace and scope of its future development activities, as well as its ability to achieve regulatory approvals for its product candidates.