Prelude Therapeutics Reports Q2 2025 Financial Results, Advances Clinical Trials

• Prelude Therapeutics reports Q2 2025 financial results • PRT7732, oral SMARCA2 degrader, enrolling at 7th dosing cohort (125 mg) • Phase 1 study of PRT3789, IV SMARCA2 degrader, completed • Oral KAT6A degrader program advancing to development candidate • IND filing planned for H1 2026 • Cash runway into Q2 2026 with $77.3 million in cash and securities • Preliminary clinical data for PRT7732 to be released by year-end 2025 • Final data for PRT3789 to be released by year-end 2025

Prelude Therapeutics, a biopharmaceutical company focused on oncology, has released its Q2 2025 financial results, indicating continued operating losses and significant liquidity constraints. For the six months ended June 30, 2025, the company reported a net loss of $63.3 million and an accumulated deficit of $646.9 million. The company's cash, cash equivalents, restricted cash, and marketable securities totaled $77.3 million as of June 30, 2025, but management stated that these funds are insufficient to cover at least the next twelve months absent additional financing. This has raised substantial doubt about the company's ability to continue as a going concern [1].

Operationally, Research and Development (R&D) and General and Administrative (G&A) expenses decreased year-over-year to $54.6 million and $12.2 million, respectively, due to moderated clinical expenses and stock-based compensation. Key program milestones include ongoing Phase 1/2 activity for SMARCA2 degraders (PRT3789 and oral PRT7732) and collaborations with AbCellera and Merck. The company also received a Nasdaq bid price deficiency notice with an initial compliance period through September 23, 2025, and maintains a $400 million shelf registration and a $75 million sales agreement capacity that could support future financing [1].

The company's cash runway extends into Q2 2026 with $77.3 million in cash and securities. Preliminary clinical data for PRT7732, an oral SMARCA2 degrader, enrolling at the 7th dosing cohort (125 mg), and Phase 1 study of PRT3789, an IV SMARCA2 degrader, completed, are expected to be released by year-end 2025. Additionally, the oral KAT6A degrader program is advancing to development candidate status, and an IND filing is planned for H1 2026 [1].

Investors should view the filing as materially negative for near-term funding needs while acknowledging mid-term clinical catalysts. The company's six-month net loss of $63.3M and operating cash use of $60.3M highlight a high burn rate. Although total liquidity of $77.3M and a $400M shelf provide potential access to capital, management explicitly states funds are not sufficient for the next 12 months without additional financing. The Nasdaq bid price deficiency adds execution risk and could constrain equity financing options [1].

References:
[1] https://www.stocktitan.net/sec-filings/PRLD/10-q-prelude-therapeutics-incorporated-quarterly-earnings-report-ab4b92cbc140.html