Company Overview

Surrozen Inc. is a biotechnology company discovering and developing drug candidates that can activate the Wnt signaling pathway, an important system within the body for tissue repair and regeneration. As of March 31, 2024, Surrozen has not yet generated revenue from product sales, has incurred significant losses since its founding in 2015, and has cash and investments of $27.3 million.

Financial Performance

In the first quarter of 2024, Surrozen incurred a net loss of $8.8 million compared to a net loss of $14.3 million in the first quarter of 2023. This 38% decrease in net losses was driven by a $2.8 million decrease in research and development expenses and a $1.4 million decrease in general and administrative expenses resulting from Surrozen’s workforce reductions in 2023 to focus resources on clinical programs.

Research & Development

Research and development expenses were $5.2 million in the first quarter of 2024 compared to $8.1 million in the first quarter of 2023. This decrease was primarily due to:

• A $0.8 million decrease in expenses for lead program SZN-043 as it advances into a Phase 1b trial
• A $1.1 million decrease in expenses for discontinued program SZN-1326
• A $0.9 million decrease in discovery and early-stage program expenses

Cash Resources

Surrozen has financed operations primarily through equity offerings and an upfront payment from a collaboration agreement. The company raised:

• $17.6 million in gross proceeds from an April 2024 private placement
• $35,000 per month starting April 2024 from subleasing excess office space

Management believes existing cash resources are sufficient to fund planned operations for at least the next 12 months.

SZN-043 for Liver Disease

SZN-043 is initially being developed for severe alcohol-associated hepatitis (AH), a liver disease with high short-term mortality. Early clinical data demonstrated SZN-043 activates Wnt signaling in the liver and improves liver function. Surrozen is enrolling a Phase 1b trial in severe AH patients and anticipates initial efficacy data in 1H 2025.

SZN-413 for Eye Disease

SZN-413 is being developed to treat retinal vascular diseases by activating Wnt signaling, which is critical for retinal vascular health. Surrozen licensed SZN-413 to Boehringer Ingelheim and could receive a $10 million milestone payment in 2024 if a lead development candidate is nominated.

Future Outlook

Surrozen is primarily focused on advancing SZN-043 through clinical development. The company expects continued significant spending related to research programs and additional costs from operating as a public company. Surrozen will likely need to raise additional capital until the company can generate revenue from potential future product approvals.