Silence Therapeutics: A Strong Earnings Report Despite Mixed Results

Silence Therapeutics plc (SLN), a global clinical-stage company developing novel siRNA (short interfering RNA) therapies, reported its full-year 2024 financial results and provided a business update on March 1, 2025. The company's earnings report showed a mixed bag of results, with revenues beating expectations but earnings per share (EPS) lagging behind. Let's dive into the key takeaways from the report and analyze the company's performance.



Revenue Beat Expectations

Silence Therapeutics reported collaboration revenue of $43.1 million for the year ended December 31, 2024, compared to $30.9 million for the year ended December 31, 2023. The increase of $12.2 million was largely due to the cumulative catch-up following the completion of required obligations under collaboration arrangements entered for the development of candidates utilizing the siRNA platform. This significant increase in collaboration revenue demonstrates the company's success in securing partnerships and advancing its pipeline.



EPS Lags Behind Expectations

Despite the strong revenue growth, Silence Therapeutics' net loss was $45.3 million, or $0.33 basic and diluted net loss per share for the year ended December 31, 2024, compared to a net loss of $54.2 million, or $0.49 basic and diluted net loss per share for the year ended December 31, 2023. The increase in R&D expenses and G&A expenses contributed to the higher net loss. R&D expenses were $67.9 million in 2024, up from $56.9 million in 2023, while G&A expenses were $26.9 million in 2024, up from $26.2 million in 2023.

Cash Runway Extended to 2027

Silence Therapeutics ended the year with over $147 million in cash, cash equivalents, and short-term investments. The decision not to initiate the zerlasiran Phase 3 outcomes study without a partner extends the company's projected cash runway into 2027. This extended runway provides the company with flexibility to invest in its innovative pipeline while continuing partnering discussions for the zerlasiran program.



Key Business Highlights

Zerlasiran for Cardiovascular Disease: Silence Therapeutics received positive regulatory feedback from the U.S. Food and Drug Administration (FDA), European Medicines Agency (EMA), and the Pharmaceuticals and Medical Devices Agency (PMDA) in Japan on the Phase 3 cardiovascular (CV) outcomes study design for zerlasiran in patients with elevated lipoprotein(a) (Lp(a)) and at high risk of a CV event. The company progressed core activities to ensure the zerlasiran program is Phase 3 ready in the first half of 2025. Partnering discussions for this program are ongoing, with timing for Phase 3 initiation dependent on partnership.

Divesiran for Polycythemia Vera (PV): Follow-up has concluded in the SANRECO Phase 1 study of divesiran in PV patients. Data presentations at medical congresses are anticipated in 2025. Enrollment is underway in the SANRECO Phase 2 study of divesiran in PV patients, with full enrollment anticipated by the end of 2025.

Other mRNAi GOLD™ Pipeline Updates: A Phase 1 study of SLN548, Silence's wholly owned siRNA product candidate for complement-mediated diseases, is planned for the second half of 2025. A Phase 1 study of SLN312 (licensed to AstraZeneca) is ongoing. Hansoh Pharma opted not to pursue further development under the collaboration agreement to develop siRNAs for three undisclosed preclinical targets using Silence's mRNAi GOLD platform. Silence retains global rights to all three programs and is evaluating plans for further development.

In conclusion, Silence Therapeutics' full-year 2024 earnings report showed a mixed bag of results, with revenues beating expectations but EPS lagging behind. The company's strong collaboration revenue growth, extended cash runway, and progress in its pipeline make it an attractive investment opportunity in the biotechnology sector. As the company continues to advance its siRNA therapies and secure partnerships, investors should keep a close eye on its progress and potential catalysts for growth.