ProKidney Corp. (NASDAQ:PROK) is a clinical-stage biotechnology company that has developed a transformative proprietary cell therapy platform with the potential to redefine the treatment of chronic kidney disease (CKD). The company's lead product candidate, rilparencel, is designed to preserve kidney function in patients with CKD, offering a promising alternative to the current standard of care.
Business Overview
ProKidney was originally incorporated as Social Capital Suvretta Holdings Corp. III, a blank check company, in February 2021. In July 2022, the company executed a business combination agreement with ProKidney LP, a limited partnership under the laws of Ireland, and changed its name to ProKidney Corp. The company is focused on the development of rilparencel, a personalized cell therapy that utilizes a patient's own kidney cells to potentially preserve kidney function and delay or eliminate the need for dialysis and organ transplantation.Rilparencel is a product that includes autologous Selected Renal Cells (SRC) prepared from a patient's own kidney cells. The SRC are formulated into a product for reinjection into the patient's kidney using a minimally invasive outpatient procedure that may be repeatable, if necessary. This approach seeks to redefine the treatment of CKD by shifting the emphasis away from management of kidney failure to the preservation, if not improvement, of kidney function.
ProKidney is currently conducting a global Phase 3 development program and multiple Phase 2 clinical trials for rilparencel in subjects with moderate to severe diabetic kidney disease (DKD). The company has also completed a Phase 1 clinical trial for rilparencel in subjects with CKD due to congenital anomalies of the kidney and urinary tract (CAKUT), for which the last subject visit occurred in January 2023 and the clinical study report was submitted to the FDA in December 2023.
Financials and Liquidity
ProKidney has not generated any revenue since its inception and does not expect to generate any revenue from the sale of products in the near future, if at all. The company's net loss for the year ended December 31, 2023 was $35,468,000. ProKidney's annual operating cash flow was -$90,069,000, and its annual free cash flow was -$124,266,000.As of March 31, 2024, ProKidney had $84,389,000 in cash and cash equivalents and $244,609,000 in marketable securities, totaling $340,158,000 in current assets. The company's current liabilities were $19,301,000, resulting in a current ratio of 17.62 and a quick ratio of 17.62. ProKidney's management believes that its existing cash, cash equivalents, and marketable securities will enable the company to fund its operating expenses and capital expenditure requirements into the fourth quarter of 2025.
Quarterly Performance
For the three months ended March 31, 2024, ProKidney reported a net loss of $35,333,000, compared to a net loss of $36,909,000 for the same period in the prior year. The company's research and development expenses increased by $1,616,000, primarily due to increases in cash-based compensation costs and professional fees, partially offset by decreases in clinical study costs and manufacturing improvement spending. General and administrative expenses decreased by $2,416,000, primarily due to a decrease in equity-based compensation, partially offset by increases in cash-based compensation and professional services.ProKidney's cash used in operating activities for the three months ended March 31, 2024 was $34,646,000, compared to $25,992,000 for the same period in the prior year. The increase in cash used in operating activities was primarily driven by an increase in net loss after adjusting for non-cash charges and gains on investments, as well as an increase in the use of cash related to the timing of payments to vendors and receipt of interest amounts due.