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Aclaris Therapeutics, Inc. (ACRS)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $9.21M, down 48% year over year due to lapping a 2023 Sun upfront; GAAP net loss widened to $96.55M driven by a one-time $86.9M in‑process R&D charge from the Biosion licensing transaction .
  • Cash, cash equivalents and marketable securities ended at $203.9M with runway expected into 2028; the company highlighted multiple 1H 2025 clinical catalysts (bosakitug Phase 2 readouts from CTTQ in severe asthma/CRSwNP; ATI‑2138 Phase 2a AD topline) .
  • Operating expenses excluding IPR&D declined materially YoY (R&D $9.0M vs $26.6M; G&A $5.0M vs $8.2M), reflecting portfolio refocus and cost controls .
  • Financing and pipeline expansion in Q4: $80M private placement and exclusive license for bosakitug (ATI‑045) and ATI‑052; these are potential catalysts for sentiment despite near-term GAAP loss optics .
  • No earnings call transcript was available in our corpus; estimates from S&P Global were unavailable at time of request due to API limits, so beat/miss vs consensus cannot be assessed (see Estimates Context) .

What Went Well and What Went Wrong

What Went Well

  • Pipeline expansion and near-term catalysts: Aclaris licensed bosakitug (ATI‑045, anti-TSLP mAb) and ATI‑052 (TSLP/IL4R bispecific), with Phase 2 data from CTTQ (severe asthma, CRSwNP) expected 1H 2025 and ATI‑2138 Phase 2a AD topline expected 1H 2025. “2024 was a transformative year... multiple clinical catalysts expected in 2025” — CEO Dr. Neal Walker .
  • Strengthened balance sheet and runway: Cash reached $203.9M; company reiterates runway into 2028; $80M private placement in November supports programs .
  • Cost discipline: R&D down to $9.0M (from $26.6M YoY) and G&A down to $5.0M (from $8.2M YoY), driven by lower program and compensation expenses .

What Went Wrong

  • GAAP optics: Net loss ballooned to $96.55M due to the $86.9M IPR&D charge tied to the Biosion license, masking lower underlying OpEx .
  • Revenue volatility: Q4 revenue fell to $9.21M vs $17.57M YoY, as 2023 benefited from a Sun upfront; Q4 2024 did include an Eli Lilly commercial milestone, but it did not fully offset .
  • Licensing expenses increased: Q4 licensing expense rose to $8.60M (vs $5.70M YoY) due to a milestone payable to a third party; non-recurring items added noise to operating results .

Financial Results

P&L vs prior year and prior quarter (GAAP)

MetricQ4 2023Q3 2024Q4 2024
Total Revenue ($USD Millions)$17.57 $4.35 $9.21
Net Loss ($USD Millions)$(1.49) $(7.59) $(96.55)
EPS (Basic & Diluted) ($USD)$(0.02) $(0.11) $(1.01)
R&D Expense ($USD Millions)$26.65 $5.96 $9.03
G&A Expense ($USD Millions)$8.21 $5.65 $4.95
Licensing Expense ($USD Millions)$5.70 $1.75 $8.60
Non‑cash Royalty Income ($USD Millions)$— $0.89 $1.02
Interest Income ($USD Millions)$2.19 $1.99 $2.10

Revenue breakdown

Revenue Category ($USD Millions)Q4 2023Q3 2024Q4 2024
Contract Research$0.57 $0.65 $0.62
Licensing$17.00 $3.70 $8.60
Total Revenue$17.57 $4.35 $9.21

Balance sheet and liquidity

Metric ($USD Millions, except shares)Dec 31, 2023Sep 30, 2024Dec 31, 2024
Cash, Cash Equivalents & Marketable Securities$181.88 $173.44 $203.90
Total Assets$197.41 $182.39 $220.33
Total Liabilities$40.23 $52.24 $64.77
Total Stockholders’ Equity$157.18 $130.15 $155.55
Common Stock Outstanding (Shares)70,894,889 71,417,513 107,850,124

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash RunwayMulti‑year“Sufficient to fund operations into 2028” (Q2 and Q3 reiterations) “Cash runway expected into 2028” (Q4) Maintained
ATI‑2138 Phase 2a (AD) Topline1H 2025“Top‑line data in 1H 2025” (Q3) “Confirmed expectation of top‑line results in 1H 2025” (Q4) Maintained
Bosakitug (ATI‑045) Phase 2 readouts (CTTQ: severe asthma, CRSwNP)1H 2025Not previously guided in Q2/Q3; program added via Nov license “Data expected 1H 2025 to inform internal development” (Q4) New
Bosakitug Phase 2b (AD) Enrollment1H 2025Not previously guided in Q2/Q3 “Enrollment expected to begin 1H 2025” (Q4) New
ATI‑052 (TSLP/IL4R bispecific) IND filingQ1 2025Not previously guided in Q2/Q3 “Plan to file IND in Q1 2025” (Q4) New

Earnings Call Themes & Trends

Note: No Q4 2024 earnings call transcript is available in our corpus; themes below reflect press releases across Q2, Q3, Q4.

TopicPrevious Mentions (Q2 2024 and Q3 2024)Current Period (Q4 2024)Trend
Pipeline execution in AD (ATI‑2138)Q2: Phase 2a site activation; near‑term enrollment . Q3: First patient dosed; topline expected 1H 2025 .Confirmed topline timing 1H 2025 .On track; consistent timelines.
Portfolio expansion to biologicsQ2/Q3: Focus on small molecules; royalty monetization .License for bosakitug and ATI‑052; multiple 2025 catalysts .Expansion; adds biologics optionality.
Financing/liquidityQ2: OLUMIANT royalty sale ($26.5M upfront) . Q3: Runway into 2028 reiterated .$80M private placement; runway into 2028 reiterated .Strengthened balance sheet.
Cost disciplineQ2/Q3: Material R&D and G&A reductions vs 2023 .Continued lower R&D/G&A vs prior year .Sustained OpEx control.
Non‑recurring P&L itemsQ2/Q3: Contingent consideration revaluation losses; licensing/royalty variability .$86.9M IPR&D expense on licensing; licensing expense milestone .Elevated one‑time items in Q4.

Management Commentary

  • “2024 was a transformative year that has positioned Aclaris with multiple clinical catalysts expected in 2025 across our expanded pipeline… we look to drive continued innovation for the patients we seek to treat.” — Dr. Neal Walker, CEO .
  • “Cash runway expected into 2028.” — Corporate update (Q4 press release) .
  • “The decrease [in R&D] was primarily the result of lower zunsemetinib development expenses, lepzacitinib… and compensation-related expenses.” — Q4 release .
  • On Biosion license: “Adding potential best‑in‑class biologic assets to pipeline… recorded a one-time $86.9M in‑process R&D charge.” — Q4 release .

Q&A Highlights

  • Q4 2024 earnings call transcript was not available in our corpus; therefore, analyst Q&A themes, clarifications, or tone assessments cannot be provided.

Estimates Context

  • S&P Global consensus estimates for Q4 2024 (EPS, revenue) were unavailable at time of request due to an API usage limit, so we cannot assess beats/misses vs consensus or derive estimate revisions in this report. We attempted retrieval but received a daily request limit error [GetEstimates Errors].
  • Where estimates are required for future comparisons, we recommend re‑querying S&P Global when access resets to incorporate consensus and potential post‑print revisions.

Key Takeaways for Investors

  • Q4 GAAP optics are dominated by the $86.9M IPR&D charge from the Biosion deal; underlying OpEx trends are improving with R&D and G&A lower YoY, which supports capital efficiency into 2025 .
  • Revenue volatility reflects milestone/upfront timing: Q4 2024 licensing revenue included a Lilly milestone but lapped a larger Sun upfront in Q4 2023; expect continued variability tied to partner events .
  • Balance sheet strength and $80M financing underpin execution across multiple 1H 2025 catalysts (CTTQ bosakitug Phase 2 in severe asthma/CRSwNP; ATI‑2138 Phase 2a AD topline), which are likely to be stock drivers near term .
  • Biologics expansion (bosakitug, ATI‑052) broadens Aclaris’ modality mix and indication set, potentially increasing strategic optionality; monitor IND timing for ATI‑052 and AD Phase 2b enrollment for bosakitug .
  • With no available consensus in this report, trading setups around 1H 2025 data may hinge on clinical strength and safety profiles rather than numeric beats/misses; re‑check S&P Global estimates before the catalysts to calibrate expectations.
  • Watch licensing expense/milestone accruals and contingent consideration marks, as these can add P&L noise and influence quarterly optics independent of core R&D progress .
  • Leadership changes and added experienced operators from Biosion may accelerate biologics development; execution against the 1H 2025 timeline will be a credibility test for the expanded team .