Neurogene Reports $22.6 Million Net Loss in Q1 2025, Increases R&D Spending

Neurogene Inc. reported a net loss of $22.6 million for the first quarter of 2025, an increase from a net loss of $16.9 million during the same period in 2024. The company's total operating expenses rose to $25.9 million, compared to $18.8 million in the prior year, driven primarily by increased research and development costs, which amounted to $17.8 million, up from $13.5 million. General and administrative expenses also increased to $8.2 million from $5.2 million, reflecting higher personnel costs and stock-based compensation.

The company's cash and cash equivalents decreased significantly to $70.8 million as of March 31, 2025, down from $136.6 million at the end of 2024. However, total current assets remained relatively stable at $296.4 million, compared to $315.9 million in the previous quarter, largely due to an increase in short-term investments. Neurogene's accumulated deficit reached $284.9 million, indicating ongoing financial challenges as the company continues to invest heavily in its clinical programs.

Strategically, Neurogene has focused on advancing its clinical-stage programs, particularly NGN-401, which is in a Phase 1/2 trial for the treatment of Rett syndrome. The company has received FDA clearance for this trial and has reported positive interim data, indicating improvements in clinical assessments among participants. However, the company has decided not to proceed with its NGN-101 program for CLN5 Batten disease due to challenges in aligning with the FDA on a streamlined registrational pathway.

Operationally, Neurogene has expanded its workforce, with an increase in employee headcount contributing to higher personnel-related expenses. The company is also enhancing its manufacturing capabilities with a fully operational cGMP facility in Houston, Texas, aimed at supporting its clinical and future commercial needs. As of March 31, 2025, Neurogene had approximately $292.6 million in cash, cash equivalents, and short-term investments, which management believes will be sufficient to fund operations for at least the next year.

Looking ahead, Neurogene anticipates continued increases in both research and development and general administrative expenses as it advances its clinical programs and prepares for potential commercialization. The company will need to secure additional funding to support its operations, as it has not yet generated revenue from product sales. Management remains focused on navigating the financial landscape while pursuing its goal of developing innovative gene therapies for neurological diseases.