Sana Biotechnology Reports $49.4 Million Net Loss, Decreases Operating Expenses in Q1 2025

Sana Biotechnology, Inc. reported a net loss of $49.4 million for the three months ended March 31, 2025, compared to a net loss of $107.5 million for the same period in 2024. Research and development expenses decreased by $19.3 million to $37.2 million, primarily due to lower personnel and laboratory expenses resulting from a portfolio prioritization and workforce reduction announced in November 2024. General and administrative expenses also decreased by $4.8 million to $11.5 million, largely attributed to lower personnel costs. The company's cash, cash equivalents, and marketable securities totaled $104.7 million as of March 31, 2025.

Significant changes compared to the previous year's quarter included a substantial reduction in operating expenses. The decrease in research and development expenses was partially offset by an increase in third-party manufacturing costs. The company's research and development related success payments and contingent consideration expense decreased by $36.1 million to $1.96 million. This decrease was primarily due to a significant reduction in the expense related to the change in the estimated fair value of the Cobalt Success Payment liability.

During the quarter, Sana Biotechnology did not sell any unregistered securities. However, in May 2025, the company entered into a sales agreement with TD Securities (USA) LLC, allowing for the sale of up to $119 million of common stock through at-the-market offerings. This agreement replaced a prior sales agreement under which $28.5 million in net proceeds were generated as of March 31, 2025. The company also noted that it had completed an underwritten public offering in February 2024, raising approximately $180 million in net proceeds.

The company is currently conducting three clinical trials across multiple therapeutic areas, including type 1 diabetes, B-cell mediated autoimmune diseases, and B-cell malignancies. Positive results were announced from an investigator-sponsored trial evaluating UP421, an allogeneic islet cell therapy. Sana Biotechnology expects to share additional data from ongoing clinical trials in 2025 and plans to file an investigational new drug application for SC451 as early as 2026 and for SG299 as early as 2026. The company also highlighted its ongoing efforts to advance its research and preclinical-stage product candidates.

The company's management expressed substantial doubt about its ability to continue as a going concern for at least the next year, contingent upon its ability to secure additional funding. The company plans to address this by pursuing equity or debt financings or securing capital through strategic collaborations or licensing arrangements. Failure to secure such financing could lead to modifications in operational plans, including potential delays or reductions in research and development programs. The company also noted that it is an emerging growth company and intends to utilize the extended transition period for complying with new or revised financial accounting standards.