Cartesian Therapeutics Reports $77.4 Million Net Loss for 2024, Revenue Increases to $38.3 Million

Cartesian Therapeutics, Inc. (formerly Selecta Biosciences, Inc.) reported a net loss of $77.4 million for the year ended December 31, 2024, compared to a net loss of $219.7 million in 2023. The company's collaboration and license revenue increased to $38.3 million in 2024 from $26.0 million in 2023, primarily due to increased revenue recognized under the Sobi License and the recognition of deferred revenue under the Astellas Agreement. Research and development expenses decreased to $45.1 million in 2024 from $71.3 million in 2023, largely attributed to the wind-down of legacy Selecta programs and a one-time cash charge to salaries and benefits. General and administrative expenses also decreased to $30.1 million in 2024 from $40.5 million in 2023.

Significant changes in financial performance were driven by the November 13, 2023 merger with Cartesian Therapeutics, Inc. The merger resulted in the recording of a material amount of goodwill and indefinite-lived intangible assets. The company also incurred substantial integration expenses, leading to impairment charges on long-lived assets. Specifically, a $7.6 million impairment charge was recorded in 2024 related to the cessation of use of office space in Watertown, Massachusetts. The company also completed two private placements in 2023 and 2024, raising $60.25 million and $130 million, respectively. As of December 31, 2024, the company had $214.3 million in cash, cash equivalents, and restricted cash, which it projects will fund operations into mid-2027.

Key operational developments include the advancement of Descartes-08, the company's lead mRNA cell therapy candidate, into Phase 3 clinical development for myasthenia gravis (MG). Updated Phase 2b trial results showed an average MG-ADL reduction of 5.5 points at Month 4, with 80% of participants maintaining a clinically meaningful response at Month 12. The company plans to initiate the Phase 3 AURORA trial in the first half of 2025. Descartes-08 is also in Phase 2 development for systemic lupus erythematosus (SLE), with a data readout expected in the second half of 2025, and a Phase 2 pediatric basket trial is anticipated to begin in the second half of 2025. As of December 31, 2024, the company had 66 full-time employees.

The company's intellectual property portfolio includes seven issued patents worldwide and thirteen pending patent applications. Significant agreements include a license agreement with Biogen for the development of mRNA-based therapies for autoimmune diseases and a license and development agreement with Sobi for SEL-212, a drug candidate for chronic refractory gout. The company also notes competition from other pharmaceutical and biotechnology companies developing similar therapies. The company's future success is contingent upon the successful development and commercialization of its product candidates, securing additional funding, and navigating regulatory hurdles.

The company's 10-K filing includes numerous risk factors, including the inherent risks of clinical drug development, reliance on third-party manufacturers and CROs, the need for substantial additional funding, competition from other companies, and the uncertainties of regulatory approval and market acceptance. The company also highlights risks related to intellectual property protection, product liability, compliance with healthcare regulations, and the volatility of its common stock. The company expects to incur losses for the foreseeable future and may never achieve profitability.