SYNlogic Reports No Revenue and Improved Net Income in Q1 2025

SYNlogic, Inc. reported its financial results for the first quarter of 2025, revealing a significant shift in its operational and financial landscape. The company recorded no revenue for the three months ended March 31, 2025, a decrease from $8,000 in the same period of the previous year. Operating expenses also saw a dramatic reduction, totaling $898,000 compared to $38.9 million in the first quarter of 2024. This decline was primarily driven by a substantial decrease in research and development expenses, which fell from $7.7 million to $22,000, and a reduction in general and administrative expenses from $2.9 million to $836,000.

The company’s net income for the quarter was $317,000, a notable improvement from a net loss of $25.6 million in the prior year. This positive shift was attributed to a gain of $1.0 million from the remeasurement of the purchase warrant liability, which contrasted sharply with the previous year's loss in this category. The weighted average shares outstanding increased slightly, resulting in a basic and diluted earnings per share of $0.03, compared to a loss of $2.11 per share in the first quarter of 2024.

Strategically, SYNlogic has undergone significant changes, including the discontinuation of its Synpheny-3 trial for its lead product candidate, labafenogene marselecobac (SYNB1934), in February 2024. This decision was made following an internal review that indicated the trial was unlikely to meet its primary endpoint. The company has since focused on a comprehensive review of strategic alternatives, including potential mergers or sales, and has drastically reduced its workforce to just one full-time employee. This restructuring has resulted in a reduction of total liabilities from $7.1 million at the end of 2024 to $4.9 million as of March 31, 2025.

Operationally, SYNlogic's cash and cash equivalents decreased to $17.3 million from $18.9 million at the end of 2024. The company has indicated that this cash position is expected to be sufficient to fund operations for at least the next 12 months. The restructuring efforts have led to a significant decrease in cash used in operating activities, which was $1.6 million for the first quarter of 2025, compared to $15.4 million in the same period last year. The company continues to explore strategic options while managing its expenses and cash flow carefully.

Looking ahead, SYNlogic anticipates that its expenses will remain low in the near term as it evaluates its strategic alternatives. The company has not generated any product revenue since its inception and does not expect to do so until it successfully completes clinical development and obtains regulatory approvals for its product candidates. The ongoing strategic review process may lead to further changes in the company's operational focus and structure, but no definitive plans have been announced at this time.