On November 13, 2023, Orchard Therapeutics PLC (ORTX, Financial) released its 8-K filing, announcing its financial results for the third quarter ended September 30, 2023, and highlighting significant business developments, including a planned acquisition by Kyowa Kirin.
Financial Highlights and Business Accomplishments
ORTX reported a notable increase in its Libmeldy net revenue, reaching $5.6 million for the quarter and $12.7 million year-to-date. The company also announced a definitive agreement for acquisition by Kyowa Kirin, which is valued at up to approximately $477.6 million and is anticipated to close in the first quarter of 2024. This acquisition is expected to enhance ORTX's capabilities and resources to advance its HSC gene therapy platform.
Regulatory Advancements and Commercial Strategy
The U.S. FDA has accepted the Biologics License Application for OTL-200 in metachromatic leukodystrophy (MLD) under Priority Review, with a PDUFA goal date of March 18, 2024. ORTX is actively preparing for a potential U.S. launch, including establishing qualified treatment centers and expanding newborn screening activities. The company's commercial strategy is further supported by the appointment of Bennett Smith as senior vice president and general manager of North America.
Financial Performance Analysis
ORTX's total revenue for Q3 2023 was $6.3 million, a slight increase from $5.8 million in the same period in 2022. The cost of product sales rose marginally to $1.7 million, maintaining a consistent gross margin of approximately 72%. Research and development expenses decreased by 19% to $14.6 million, primarily due to the release of the Strimvelis loss provision. Selling, general, and administrative expenses remained stable at $11.6 million. The company's loss from operations decreased by 15% to $21.6 million, reflecting a decrease in R&D expenses.
ORTX experienced a net loss of $35.3 million for the quarter, a 26% reduction from the previous year. As of September 30, 2023, the company reported cash, cash equivalents, and investments of approximately $125.4 million, with $25.6 million of debt outstanding. ORTX has removed its financial guidance around Libmeldy revenue and anticipated cash runway due to the anticipated acquisition by Kyowa Kirin.
Forward-Looking Milestones
Looking ahead, ORTX has outlined key milestones for the remainder of 2023, including the continued establishment of qualified treatment centers for Libmeldy in Europe and the Middle East, preparation for the potential U.S. launch of OTL-200, initiation of a global registrational trial for OTL-203 for MPS-IH, and commencement of IND- and CTA-enabling studies for OTL-104 for NOD2-Crohn’s disease.
ORTX's commitment to advancing its pipeline and preparing for significant regulatory and commercial milestones positions the company as a leader in the HSC gene therapy field. The planned acquisition by Kyowa Kirin is set to further bolster ORTX's strategic initiatives and enhance its ability to deliver transformative gene therapies to patients with severe genetic diseases.
For more detailed information on ORTX's financial results and upcoming milestones, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Orchard Therapeutics PLC for further details.
