Avidity Biosciences Reports Q1 2025 Financial Results with Increased Losses and Decreased Collaboration Revenue

Avidity Biosciences, Inc. reported its financial results for the first quarter of 2025, revealing a collaboration revenue of $1.6 million, a decrease from $3.5 million in the same period last year. The company incurred a net loss of $115.8 million, compared to a loss of $68.9 million in the first quarter of 2024. This increase in losses is attributed to higher operating expenses, which rose to $133.1 million from $80.7 million year-over-year, driven primarily by increased research and development costs associated with advancing its clinical programs.

The company's total assets decreased to $1.46 billion as of March 31, 2025, down from $1.56 billion at the end of 2024. Cash and cash equivalents increased to $254.2 million, while marketable securities decreased to $1.13 billion. Avidity's accumulated deficit reached $1.01 billion, reflecting ongoing investments in its proprietary Antibody Oligonucleotide Conjugates (AOCs) platform and clinical trials. The company reported a significant increase in research and development expenses, which rose by $32.7 million, primarily due to costs related to its del-desiran, del-brax, and del-zota programs.

In terms of strategic developments, Avidity formed a wholly-owned subsidiary, Avidity Biosciences Ireland Limited, in December 2023, and entered into a Research Collaboration and License Agreement with Bristol Myers Squibb in November 2023. This collaboration is expected to provide up to $1.35 billion in milestone payments and tiered royalties on net sales. The company is also advancing its clinical pipeline, with del-desiran in Phase 3 trials for myotonic dystrophy type 1, del-brax in Phase 1/2 trials for facioscapulohumeral muscular dystrophy, and del-zota in Phase 2 trials for Duchenne muscular dystrophy.

Avidity's operational metrics indicate a focus on expanding its clinical programs, with plans for multiple updates throughout 2025, including the expected completion of enrollment for the del-desiran trial by mid-2025. The company anticipates that its existing cash and marketable securities will be sufficient to fund operations for at least the next 12 months. However, it acknowledges the need for additional funding through equity offerings or collaborations to support its ongoing development efforts and potential commercialization activities.