Third Harmonic Bio Reports $15.8 Million Net Loss, Announces Plan of Dissolution

Third Harmonic Bio, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending March 31, 2025. The company recorded a net loss of $15.8 million, a 102% increase from the $7.9 million loss reported in the same period the previous year. This increase in losses was primarily attributed to a rise in operating expenses, which surged to $18.7 million from $11.3 million, driven by higher research and development costs associated with the THB335 program and increased general and administrative expenses.

The company's total operating expenses rose by 66%, with research and development expenses increasing by 71% to $10.6 million, largely due to advancing the THB335 program through clinical studies. General and administrative expenses also saw a notable increase of 59%, reaching $8.1 million, influenced by personnel-related costs, including severance payments from a recent workforce reduction. As of March 31, 2025, Third Harmonic Bio had an accumulated deficit of approximately $175.5 million and cash and cash equivalents totaling $271.6 million.

In a strategic shift, the company announced a Plan of Dissolution in April 2025, following a comprehensive review of its operations. This plan aims to maximize shareholder value through the orderly wind-down of operations and the potential sale of its assets, including the THB335 program. The company intends to complete all Phase 2 readiness activities for THB335 by mid-2025 to enhance its value before the asset sale. If approved by shareholders, the dissolution process is expected to be initiated in the third quarter of 2025.

Operationally, Third Harmonic Bio has halted all non-THB335-related research and development activities and reduced its workforce by approximately 50% as part of a restructuring plan aimed at aligning its resources with its strategic focus. The company has engaged TD Securities to assist in identifying opportunities to maximize shareholder value during this transition. Despite these challenges, the company believes its existing capital resources will be sufficient to fund operations through at least 2026, contingent upon shareholder approval of the dissolution plan.

Looking ahead, Third Harmonic Bio's future remains uncertain, with the potential for significant changes depending on the outcomes of its asset sales and the approval of its dissolution plan. The company has not generated any revenue from product sales to date and continues to rely on external funding to support its operations. The management has indicated that the estimated total distribution to shareholders could range between $246.6 million and $259.8 million, translating to approximately $5.13 to $5.42 per share, subject to the successful execution of the dissolution plan.