Synlogic, Inc. (Nasdaq: SYBX), a biopharmaceutical company advancing novel therapeutics to transform the care of serious diseases, today reported financial results for the third quarter 2024 and provided a corporate update.

As previously announced, the Company retained Lucid Capital Markets, LLC to act as its financial advisor to explore and evaluate strategic options for maximizing shareholder value. Potential strategic alternatives that may be explored or evaluated as part of this process include the potential for an acquisition, merger, business combination or other strategic transaction involving the Company. The Synlogic Board of Directors has not set a timetable for the conclusion of this review, nor has it made any decisions related to any further actions or potential strategic options at this time. There can be no assurance, however, that this process will result in any such transaction.

Third Quarter 2024 Financial Results

As of September 30, 2024 Synlogic had cash and cash equivalents of $19.4 million.

There was no revenue for the three months ended September 30, 2024, compared to $0.4 million for the corresponding period in 2023. Revenue for the three months ended September 30, 2023 was associated with the prior research collaboration with Roche.

There was a benefit of $0.7 million related to research and development expenses for the three months ended September 30, 2024, compared to expenses of $9.6 million for the corresponding period in 2023. During the three months ended September 30, 2024, Synlogic received a refund related to the closeout of one of its clinical trials and estimates of manufacturing expenses that Synlogic incurred were revised due to the decision to discontinue Synpheny-3, resulting in a benefit upon reversal of the accrual.

General and administrative expenses for the three months ended September 30, 2024 were $1.2 million compared to $3.4 million for the corresponding period in 2023.

There were restructuring charges of $0.3 million for the three months ended September 30, 2024. The restructuring and other charges were a result of the Company’s decision in February 2024 to discontinue Synpheny-3, its pivotal study of labafenogene marselecobac (SYNB1934) in phenylketonuria (PKU) and evaluate strategic options for the Company. The restructuring charges were primarily related to severance expense as a result of the reduction in workforce.

For the three months ended September 30, 2024, Synlogic reported a consolidated net loss of $(0.1) million, or ($0.01) per share, compared to a consolidated net loss of $(12.1) million, or $(2.57) per share, for the corresponding period in 2023.

About Synlogic

Synlogic is a biopharmaceutical company advancing novel therapeutics to transform the care of serious diseases in need of new treatment options. Synlogic designs, develops and manufactures these drug candidates, which are produced by applying precision genetic engineering to well-characterized probiotics.

Forward Looking Statements

This press release contains "forward-looking statements" that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release regarding strategy, future operations, clinical development plans, future financial position, future revenue, projected expenses, prospects, plans and objectives of management are forward-looking statements. In addition, when or if used in this press release, the words "may," "could," "should," "anticipate," "believe," "look forward," "estimate," "expect," “focused on,” "intend," "on track," "plan," "predict" and similar expressions and their variants, as they relate to Synlogic, may identify forward-looking statements.  Actual results could differ materially from those contained in any forward-looking statements as a result of various factors, including: the Company may not execute on its planned exploration and evaluation of strategic alternatives; and the availability of suitable third parties with which to conduct contemplated strategic transactions; as well as those risks identified under the heading "Risk Factors" in Synlogic's filings with the U.S. Securities and Exchange Commission. The forward-looking statements contained in this press release reflect Synlogic's current views with respect to future events. Synlogic anticipates that subsequent events and developments will cause its views to change. However, while Synlogic may elect to update these forward-looking statements in the future, Synlogic specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Synlogic's view as of any date subsequent to the date hereof.

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Contact: info@synlogictx.com

                 
   
Synlogic, Inc.Condensed Consolidated Statements of Operations(unaudited)
                 
(in thousands, except share and per share data) For the Three Months Ended September 30   For the Nine Months Ended September 30
      2024       2023       2024       2023  
                 
Revenue $     $ 393     $ 8     $ 602  
                 
Operating expenses              
  Research and development   (713 )     9,616       9,164       33,831  
  General and administrative   1,165       3,400       5,228       11,291  
  Restructuring and other charges   296             24,790        
Total operating expenses   748       13,016       39,182       45,122  
Loss from operations   (748 )     (12,623 )     (39,174 )     (44,520 )
Total other income, net   631       548       16,534       1,784  
Loss before income taxes   (117 )     (12,075 )     (22,640 )     (42,736 )
Income tax expense         (3 )     (5 )     (12 )
Net loss $ (117 )   $ (12,078 )   $ (22,645 )   $ (42,748 )
                 
Net loss per share - basic and diluted $ (0.01 )   $ (2.57 )   $ (1.86 )   $ (9.17 )
Weighted-average common shares used in computing net loss per share - basic and diluted   12,223,922       4,699,847       12,186,830       4,662,444  
 
Synlogic, Inc.Condensed Consolidated Balance Sheets(unaudited)
 
(in thousands, except share data)      
    September 30, 2024   December 31, 2023
Assets      
  Cash, cash equivalents & marketable securities $ 19,389     $ 47,746  
  Property and equipment, net         5,603  
  Other assets   1,366       22,201  
Total assets $ 20,755     $ 75,550  
         
Liabilities and stockholders' equity      
  Current liabilities $ 7,647     $ 30,288  
  Long-term liabilities         12,491  
  Total liabilities   7,647       42,779  
  Total stockholders' equity   13,108       32,771  
         
Total liabilities and stockholders' equity $ 20,755     $ 75,550  
         
Common stock and common stock equivalents      
  Common stock   11,696,109       9,186,157  
  Common stock warrants (pre-funded)   722,183       2,973,183  
Total common stock   12,418,292       12,159,340  

Certain prior period amounts have been revised to correct for an immaterial error impacting previously issued financial statements, which are more fully described in our Quarterly Report on Form 10-Q for the period ended September 30, 2024.

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