TScan Therapeutics, Inc. (NASDAQ:TCRX) is a clinical-stage biopharmaceutical company at the forefront of developing a robust pipeline of T cell receptor (TCR)-engineered T cell (TCR-T) therapies for the treatment of patients with cancer. The company's proprietary platform technologies, including TargetScan and ReceptorScan, have enabled the identification of novel targets and the discovery of highly active TCRs, positioning TScan as a leader in the rapidly evolving field of TCR-T therapies.

In the first quarter of 2024, TScan reported revenue of $0.6 million, compared to $6.8 million in the same period of the prior year. The decrease in revenue was primarily due to the timing of research activities performed pursuant to the company's collaboration agreements. For the full year 2023, TScan reported revenue of $21.0 million, a decrease from $27.2 million in 2022.

The company's net loss for the first quarter of 2024 was $30.1 million, compared to a net loss of $22.6 million in the same period of the prior year. For the full year 2023, TScan reported a net loss of $89.2 million, compared to a net loss of $66.2 million in 2022. The increase in net loss was primarily driven by higher research and development expenses as the company advanced its pipeline of TCR-T therapy candidates.

TScan's operating cash flow for the first quarter of 2024 was negative $29.3 million, compared to negative $23.6 million in the same period of the prior year. For the full year 2023, TScan's operating cash flow was negative $61.4 million, compared to negative $48.2 million in 2022. The company's free cash flow for the first quarter of 2024 was negative $29.9 million, compared to negative $24.4 million in the same period of the prior year. For the full year 2023, TScan's free cash flow was negative $64.5 million, compared to negative $49.6 million in 2022.

As of March 31, 2024, TScan had $162.8 million in cash, cash equivalents, and marketable securities, excluding $5.0 million in restricted cash. The company believes that its existing cash, cash equivalents, and marketable securities, along with the $161.4 million in net proceeds from its underwritten public offering completed in April 2024, will enable it to fund its current operating plan into the fourth quarter of 2026.

Business Overview

TScan is a clinical-stage biopharmaceutical company focused on developing a pipeline of TCR-T therapy candidates for the treatment of patients with cancer. The company's approach is based on the central premise that it can learn from patients who are winning their fight against cancer to treat those who are not. Over the past several years, TScan has built its ImmunoBank, a repository of therapeutic TCRs that recognize diverse targets and are associated with multiple human leukocyte antigen (HLA) types.

The company's lead product candidates, TSC-100 and TSC-101, are in development for the treatment of patients with hematologic malignancies to eliminate residual disease and prevent relapse following allogeneic hematopoietic cell transplantation (HCT). TSC-100 and TSC-101 target the antigens HA-1 and HA-2, respectively, which are well-recognized TCR targets that were first identified in patients with exceptional responses to HCT-associated immunotherapy.

In addition to its hematologic malignancies program, TScan is developing multiple TCR-T therapy candidates for the treatment of solid tumors. One of the challenges of treating solid tumors is that they are heterogeneous - not every tumor cell expresses a given target and some tumor cells lose half their HLA genes. To address this challenge, TScan is developing what it refers to as multiplex TCR-T therapy - treating a patient with more than one TCR-T therapy candidate at a time. The company has now advanced six TCR-T therapy candidates into Phase 1 development for solid tumors, targeting a variety of antigens including PRAME, HPV16, MAGE-C2, and MAGE-A1.

Risks and Challenges

While TScan's proprietary platform technologies have enabled the identification of novel targets and the discovery of highly active TCRs, the company faces significant challenges in the development and commercialization of its TCR-T therapy candidates. The manufacturing and administration of TCR-T therapies is a complex process, and TScan has limited direct experience as a company in conducting clinical trials and managing a manufacturing facility for its product candidates.

Additionally, TScan's product candidates may cause undesirable side effects or have other properties that could halt their clinical development, prevent their regulatory approval, or limit their commercial potential. The company also faces competition from other biotechnology and pharmaceutical companies, and its ability to generate revenue from product sales will depend on the successful development and commercialization of its TCR-T therapy candidates.

Financials

For the full year 2023, TScan reported revenue of $21.0 million, a decrease from $27.2 million in 2022. The company's net loss for the year was $89.2 million, compared to a net loss of $66.2 million in 2022. TScan's operating cash flow for 2023 was negative $61.4 million, compared to negative $48.2 million in 2022, and its free cash flow was negative $64.5 million, compared to negative $49.6 million in 2022.

Liquidity

Outlook

TScan has not provided specific financial guidance for the full year 2024. However, the company has stated that it expects to continue to incur significant expenses and increasing operating losses for the foreseeable future as it advances its research and development efforts, conducts preclinical studies and clinical trials, and expands its manufacturing capabilities.

The company's success will depend on its ability to successfully develop and commercialize its TCR-T therapy candidates, obtain regulatory approvals, and establish a commercial infrastructure to support the sale and distribution of its products. TScan faces significant competition in the TCR-T therapy space and will need to continue to innovate and differentiate its technology to maintain a competitive advantage.

Conclusion

TScan Therapeutics is a promising biotech company at the forefront of developing innovative TCR-T therapies for the treatment of cancer. The company's proprietary platform technologies have enabled the identification of novel targets and the discovery of highly active TCRs, positioning it as a leader in this rapidly evolving field. While TScan faces significant challenges in the development and commercialization of its product candidates, the company's robust pipeline and strong financial position, including the recent underwritten public offering, suggest that it is well-positioned to continue advancing its research and development efforts and potentially bring transformative therapies to patients in need.