Business
Frequency Therapeutics Provides Business Updates and Second Quarter 2023 Financial Results
LEXINGTON, Mass.--(BUSINESS WIRE)-- Frequency Therapeutics, Inc. (Nasdaq: FREQ) today announced business updates and financial results for the second quarter
About this update from Korro Bio, Inc.
[{"type":"text","content":" LEXINGTON, Mass.--(BUSINESS WIRE)--\nFrequency Therapeutics, Inc. (Nasdaq: FREQ) today announced business updates and financial results for the second quarter ended June 30, 2023.\n\n\nIn July, the Company announced that it entered into a definitive merger agreement with Korro Bio, Inc., a leading RNA editing company focused on the discovery and development of novel genetic medicines. After the anticipated consummation of the merger, the combined company will operate under Korro Bio, Inc. with a focus on the advancement of Korro Bio’s portfolio of RNA editing programs and will trade on Nasdaq under the ticker symbol “KRRO.” The merger is expected to close in the fourth quarter of 2023, subject to approval by Frequency Therapeutics’ stockholders and other customary closing conditions.\n\n\nFrequency Therapeutics continues to explore strategic alternatives for its pre-clinical remyelination program for multiple sclerosis. If it has not otherwise monetized its remyelination program by the closing of the merger, Frequency Therapeutics stockholders of record will be issued a contingent value right (CVR) for each outstanding share of Frequency Therapeutics common stock held by such Frequency Therapeutics stockholder prior to the closing of the proposed merger. The CVR would represent the right to receive certain cash payments from proceeds received by Frequency Therapeutics related to the program.\n\n\nSecond Quarter 2023 Financial Results\n\n\nCash Position: As of June 30, 2023, Frequency had cash, cash equivalents and marketable securities of $46.5 million (excluding restricted cash). In April, the Company prepaid all outstanding loans, eliminating its debt burden.\n\n\nResearch and Development Expenses: Research and development expenses were $4.6 million for the three months ended June 30, 2023, as compared to $13.3 million for the comparable period of 2022. Research and development expenses were $15.9 million for the six months ended June 30, 2023, as compared to $27.1 million for the comparable period of 2022. Excluding stock-based compensation expense of $0.2 million for the three months ended June 30, 2023 and $1.0 million for the six months ended June 30, 2023, research and development expenses for the three and six months ended June 30, 2023, were $4.4 million and $14.9 million, respectively.\n\n\nGeneral and Administrative ...