Septerna Reports $21.5 Million Net Loss in Q1 2025, Revenue Declines to $219,000

Septerna, Inc. reported its financial results for the first quarter of 2025, revealing a net loss of $21.5 million, compared to a net loss of $14.2 million for the same period in 2024. The company's revenue for the quarter was $219,000, a decrease from $317,000 year-over-year. This decline in revenue is attributed to reduced service activities under the Vertex Research Service Agreement, which generated $0.2 million in revenue during the quarter. Operating expenses surged to $26.1 million, up from $15.8 million in the prior year, primarily driven by increased research and development costs and general administrative expenses.

The company's research and development expenses rose significantly to $19.3 million from $13.2 million, reflecting higher direct costs associated with clinical and preclinical programs, including clinical trial expenses. General and administrative expenses also increased to $6.9 million, largely due to higher legal and consulting fees related to its status as a public company following its initial public offering (IPO) in October 2024. The company reported an accumulated deficit of $139.9 million as of March 31, 2025.

In terms of strategic developments, Septerna entered into a global Collaboration and License Agreement with Novo Nordisk A/S on May 13, 2025. This collaboration aims to leverage Septerna's proprietary Native Complex Platform to discover and develop oral small molecule therapies for metabolic-related diseases. The agreement includes a one-time upfront payment of $195 million and potential milestone payments exceeding $2.2 billion, which could significantly enhance the company's financial position and extend its cash runway.

As of March 31, 2025, Septerna had cash, cash equivalents, and marketable securities totaling $398.2 million, down from $456.6 million at the end of 2024. The decrease in cash was primarily due to net cash used in operating activities of $23.3 million during the quarter. The company anticipates continued net losses as it advances its product candidates through preclinical studies and into clinical trials, while also expanding its workforce to support growth.

Looking ahead, Septerna expects to continue incurring significant operating losses as it invests in research and development activities. The company is focused on advancing its pipeline of product candidates and maintaining its collaborations, which are critical for its long-term growth strategy. The successful execution of its plans will depend on the timely development and regulatory approval of its product candidates, as well as its ability to secure additional funding to support ongoing operations.