Kronos Bio Reports Q1 2025 Financial Results, Revenue Declines to $1.9 Million

Kronos Bio, Inc. reported its financial results for the first quarter of 2025, revealing a revenue of $1.9 million, a decrease from $2.5 million in the same period of 2024. The decline in revenue is attributed to the cancellation of the Collaboration and License Agreement with Genentech, which had previously generated significant income for the company. The net loss for the quarter was $8.4 million, a notable improvement compared to the $30.0 million loss reported in the first quarter of 2024. This reduction in losses is primarily due to a substantial decrease in operating expenses, which fell to $11.3 million from $34.5 million year-over-year.

The company's operating expenses saw a significant reduction in research and development costs, which dropped to $2.1 million from $14.2 million, reflecting the discontinuation of the istisociclib clinical trial and a reduction in workforce following restructuring efforts. General and administrative expenses also decreased to $6.1 million from $7.5 million, driven by lower stock-based compensation and personnel costs. Additionally, Kronos recognized $3.1 million in impairment and restructuring costs during the quarter, down from $12.8 million in the prior year, indicating a shift in the company's operational focus.

Kronos Bio has been actively pursuing strategic alternatives to maximize shareholder value, including a merger agreement with Concentra Biosciences, announced on May 1, 2025. This agreement involves a cash tender offer for the company's outstanding shares, with a potential closing anticipated in mid-2025. The company has also been winding down its research and development activities, which has led to a significant reduction in employee headcount and operational costs. As of March 31, 2025, Kronos reported total assets of $108.1 million, down from $124.4 million at the end of 2024, with cash and cash equivalents amounting to $91.6 million.

In terms of operational metrics, Kronos Bio's employee count has decreased significantly due to restructuring, and the company has focused on optimizing its resource allocation. The company’s cash flow from operating activities improved to a net outflow of $12.8 million in the first quarter of 2025, compared to $23.9 million in the same period of 2024. This improvement reflects the company's efforts to manage expenses more effectively while navigating a challenging market environment.

Looking ahead, Kronos Bio expects its current cash reserves to sustain operations for at least the next year, although the company acknowledges the potential need for additional capital if the merger with Concentra does not proceed as planned. The company remains focused on executing its strategic plan while managing its financial resources prudently in light of ongoing market conditions and operational changes.