Jasper Therapeutics, Inc. (NASDAQ:JSPR) is a clinical-stage biotechnology company focused on developing therapeutics targeting mast cell driven diseases and diseases where targeting diseased hematopoietic stem cells can provide benefits. The company's lead product candidate, briquilimab, is a monoclonal antibody designed to block stem cell factor (SCF) from binding to and signaling through the CD117 (c-Kit) receptor on mast and stem cells.
Business Overview
Jasper Therapeutics is dedicated to enabling cures through its innovative therapeutics. The company's pipeline includes briquilimab, which is currently being evaluated in several clinical trials. In the chronic mast cell driven disease space, Jasper is conducting Phase 1b/2a trials evaluating briquilimab in patients with Chronic Spontaneous Urticaria (CSU) and Chronic Inducible Urticaria (CIndU). Additionally, the company is planning to initiate a Phase 1b/2a study evaluating briquilimab in asthma patients.In the hematologic malignancy space, Jasper is enrolling a Phase 1 trial evaluating briquilimab as a second-line therapy in patients with Lower to Intermediate Risk Myelodysplastic Syndrome (LR-MDS). The company is also developing briquilimab as a one-time conditioning therapy in severe combined immunodeficiency (SCID) patients undergoing a second stem cell transplant, for which it is currently conducting a Phase 1/2 clinical trial.
Jasper's research programs are also exploring the potential of briquilimab in other transplant settings, including Fanconi Anemia, sickle cell disease, chronic granulomatous disease and GATA-2 Type MDS, in collaboration with academic and institutional partners such as Stanford University and the National Institutes of Health.
Financials
For the fiscal year ended December 31, 2023, Jasper Therapeutics reported an annual net loss of $64.5 million and had no revenue. The company's annual operating cash flow was negative $52.1 million, and its annual free cash flow was negative $52.3 million.In the first quarter of 2024, Jasper reported a net loss of $13.7 million. The company's research and development expenses increased by $0.5 million, from $9.8 million in Q1 2023 to $10.3 million in Q1 2024, primarily due to hiring additional personnel, progression of clinical trials, and an increase in consulting costs, partially offset by a decrease in product development activities. General and administrative expenses increased by $0.6 million, from $4.1 million in Q1 2023 to $4.8 million in Q1 2024, mainly due to higher employee-related costs and professional consulting services.
As of March 31, 2024, Jasper had cash and cash equivalents of $118.5 million, which the company believes will be sufficient to fund its operating plan for at least the next twelve months. However, the company will need to raise additional financing to continue its product development efforts for the foreseeable future until it becomes profitable.
Liquidity
Jasper has incurred significant losses and negative cash flows from operations since its inception. The company's ability to access capital when needed is not assured, and if capital is not available, Jasper may be required to significantly curtail, delay or discontinue one or more of its research or development programs or the commercialization of any product candidate.To assist in funding its future operations, Jasper filed a universal shelf registration statement on Form S-3 with the SEC in April 2023, which was declared effective in May 2023 and will expire in May 2026. The shelf registration statement allows the company to offer up to $250.0 million of securities, including any combination of common stock, preferred stock, debt securities, warrants, rights, units and depositary shares.
In November 2022, Jasper entered into a Controlled Equity Offering Sales Agreement with Cantor Fitzgerald & Co., pursuant to which the company may offer and sell shares of its common stock from time to time, up to an aggregate offering price of $75.0 million. As of March 31, 2024, no shares have been sold under this ATM Offering.
In February 2024, Jasper issued and sold 3,900,000 shares of its common stock in an underwritten offering pursuant to the shelf registration statement for estimated net proceeds of $47.2 million. As of May 13, 2024, $75.0 million remains allocated and available under the ATM Offering, and approximately $124.5 million remains available and unallocated under the shelf registration statement.
Risks and Challenges
Jasper Therapeutics faces several risks and challenges common to clinical-stage biotechnology companies, including the ability to successfully develop and obtain regulatory approvals for its product candidates, manage its growth, and secure additional financing to fund its operations. The company's future success is heavily dependent on the continued development and potential commercialization of briquilimab, and any setbacks in its clinical trials or regulatory approvals could have a material adverse impact on the company's financial condition and prospects.Additionally, Jasper operates in a highly competitive industry, and it may face challenges in differentiating its product candidates, maintaining its intellectual property protection, and managing its relationships with third-party manufacturers and collaborators.