Prelude Therapeutics reported a Q3 2025 net loss of $19.7 million, a sharp improvement from the $32.3 million loss recorded in the same quarter last year. Revenue rose 117% to $6.5 million, driven by a $3.5 million increase in licensing and collaboration income following an amendment to the AbCellera partnership. Earnings per share were –$0.26, beating the consensus estimate of –$0.35 by $0.09, or 25.7%, a margin that reflects disciplined cost management and the positive impact of the Incyte payment.
Research and development expenses fell to $21.7 million from $29.5 million a year earlier, largely because the company paused its SMARCA2 degrader program and reduced spending on clinical trials for that asset. General and administrative costs also dropped to $5.2 million from $7.9 million, a result of lower stock‑based compensation tied to a reduced valuation on recent grants. The combination of lower R&D and G&A spending helped offset the loss, contributing to the EPS beat.
Pipeline highlights include the JAK2V617F degrader, which has entered pre‑clinical IND‑ready status, and the KAT6A degrader, which is progressing toward a first‑in‑class IND filing in 2026. The company announced a pause of the SMARCA2 program, a strategic shift that reallocates resources to assets with higher near‑term potential.
Cash balances stood at $58.2 million, and the company’s cash runway is now projected to extend into 2027, thanks in large part to a $60 million upfront payment and equity investment from Incyte under an option agreement. The deal provides both immediate liquidity and a potential future milestone payment, reinforcing the company’s financial position. However, Prelude disclosed “substantial doubt” about its ability to continue as a going concern, underscoring the ongoing risk profile despite the extended runway.
Management emphasized the strategic focus on high‑potential programs and disciplined spending. CEO Kris Vaddi noted that the company is “making rapid progress with the development of our SMARCA2 degraders” and that the Incyte partnership “provides the most compelling set of opportunities to address important unmet needs for patients and value creation for our investors.” The company’s outlook remains cautious, with guidance that reflects confidence in the pipeline while acknowledging the financial headwinds highlighted by the going‑concern statement.
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