How did ZBIO's Q4 2024 expenses impact its annual profitability?

Zenas BioPharma Inc. (ZBIO) experienced a significant increase in expenses during Q4 2024, which had a substantial impact on its annual profitability.

1. **Increase in Research and Development (R&D) Expenses**: ZBIO's R&D expenses surged to $33.5 million during Q4 2024, up from $9.4 million in the same period the previous year. This significant increase was primarily driven by clinical trial costs and manufacturing expenses related to its lead product candidate, obexelimab.
2. **General and Administrative (G&A) Expenses Rise**: The company's G&A expenses also climbed to $7.5 million, up from $5.0 million year-over-year. This increase was mainly attributed to higher personnel costs and professional fees.
3. **Net Loss Due to Increased Expenses**: The combined effect of these rising expenses led to a net loss of $38.61 million for Q3 2024, compared to a net income of $35.61 million in the same quarter the previous year. This marked a significant shift in financial performance, highlighting the impact of escalated expenses on ZBIO's profitability for the period.
4. **Cash Position and Future Implications**: Despite the net loss, ZBIO maintained a strong liquidity position with $386.8 million in cash, cash equivalents, and investments as of September 30, 2024. The company anticipates this cash reserve will fund operations into the fourth quarter of 2026. This financial cushion is crucial for ZBIO to manage its expenses and continue advancing its product pipeline.

In conclusion, ZBIO's Q4 2024 expenses, particularly in R&D and G&A, had a considerable negative impact on its annual profitability, resulting in a net loss. However, the company's robust cash position provides a buffer to navigate these challenges and invest in its future growth opportunities.