Silence Therapeutics plc (SLN)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 showed limited top-line ($0.14M revenue) and a wider loss amid stepped-up clinical and manufacturing activities; management extended cash runway guidance into 2028, tightening OpEx and prioritizing PV .
• Significant misses vs S&P Global consensus: revenue $0.14M vs $4.19M*, EPS -$0.60 vs -$0.295*; collaboration revenue timing drove the delta, with last year’s catch-up benefiting FY24 *.
• Divesiran SANRECO Phase 2 enrollment advanced, full enrollment targeted by year-end 2025; additional Phase 1 data will be presented orally at EHA in June, adding near-term clinical catalysts .
• Zerlasiran Phase 3 readiness (including manufacturing scale-up) remains on track by mid-2025, with initiation contingent on securing a partner, focusing capital efficiency and extending runway .

What Went Well and What Went Wrong

What Went Well

• “Silence delivered another strong quarter focused on clinical and operational execution,” with divesiran Phase 2 enrollment advancing and an oral EHA presentation scheduled, reinforcing momentum in PV .
• Cash, cash equivalents and short-term investments totaled $136.5M, supporting extended cash guidance into 2028; cost savings initiatives implemented to prioritize core PV program .
• Zerlasiran Phase 3 readiness activities, including manufacturing and supply scale-up, remained on track for mid-2025 completion; partner discussions ongoing to fund CV outcomes trial .

What Went Wrong

• Q1 revenue was only $0.14M vs consensus at $4.19M*, reflecting minimal collaboration revenue recognition this quarter compared to FY24’s cumulative catch-up, causing an optical miss *.
• Net loss widened to $28.5M and EPS to -$0.20, with R&D up $9.0M YoY due to clinical and manufacturing activities; G&A rose $1.0M YoY tied to domestic issuer compliance costs .
• No Q1 2025 earnings call transcript was available; guidance/tone had to be triangulated from filings and press releases, reducing direct visibility into intra-quarter details (clarified below) .

Financial Results

Note: Asterisks indicate values retrieved from S&P Global.*

Q1 2025 vs Estimates (S&P Global consensus):

Note: Values retrieved from S&P Global.*

KPIs and Operating Drivers:

Context:

• FY24 revenue benefited from a $24.6M cumulative catch-up under Hansoh collaboration upon completion of obligations, inflating prior-period revenue baselines versus Q1’s minimal revenue recognition .
• G&A increase reflects the transition to domestic issuer status and U.S. GAAP reporting beginning Jan 1, 2025 .

Guidance Changes

Earnings Call Themes & Trends

Note: Q1 2025 earnings call transcript unavailable; themes summarized using Q4 2024 call and Q1 2025 press releases.

Management Commentary

• CEO tone: “Silence delivered another strong quarter focused on clinical and operational execution… on-track to complete [SANRECO Phase 2] enrollment by the end of this year… sharing additional results from the Phase 1 portion at EHA next month.”
• CFO focus: “We ended the first quarter with over $136 million in cash, cash equivalents, and short-term investments… implementing cost savings initiatives and further extending our cash guidance into 2028.”
• Zerlasiran strategy: Partner-led Phase 3 initiation to extend runway and preserve flexibility; readiness activities progressing, including manufacturing .

Q&A Highlights

Note: No Q1 2025 call transcript was available. Key themes from Q4 2024 Q&A (for trend context):

• Partnership dynamics for zerlasiran: Active discussions; HORIZON timing environment noted; goal to secure the “right partner” before Phase 3 start .
• Phase 3 readiness & timeline: Readiness by mid-year; design could be fine-tuned with a partner; manufacturing preparedness emphasized .
• Divesiran differentiation vs Rusfertide: Infrequent dosing as major convenience differentiator; aim to maintain hematocrit <45% consistently; symptomatic improvement under evaluation .
• Potential expansion of divesiran to hereditary hemochromatosis under consideration (mechanism supports broader hepcidin pathway applications) .

Estimates Context

• Revenue and EPS missed consensus materially: revenue $0.142M vs $4.19M*, EPS -$0.60 vs -$0.295*; consensus likely assumed higher collaboration revenue similar to FY24’s catch-up *.
• Estimate revisions likely to trend lower on near-term revenue while management prioritizes PV and defers zerlasiran Phase 3 spend until partnered .

Q1 2025 vs Consensus:

Note: Values retrieved from S&P Global.*

Key Takeaways for Investors

• Cash runway extended to 2028, underpinned by cost discipline and partner-gated zerlasiran Phase 3—reduces financing risk and supports PV execution .
• Near-term catalysts: EHA oral presentation (June) with additional Phase 1 divesiran data; continued Phase 2 enrollment with full enrollment targeted by YE25 .
• Expect lower near-term reported revenue variability versus FY24 given absence of collaboration catch-ups; consensus likely recalibrates to minimal revenue until new milestones materialize .
• Divesiran’s infrequent dosing and favorable tolerability profile present a differentiated PV value proposition as data mature; watch for symptom metrics and hematocrit control durability .
• Zerlasiran’s competitive Lp(a) profile remains intact; Phase 3 timing hinges on partner—monitor partnering news flow and mid-2025 readiness milestones .
• G&A elevated due to U.S. domestic issuer transition; expect continued focus on OpEx balance while prioritizing PV and select extrahepatic work .
• Governance update: Tim McInerney appointed to Board; experience spans capital advisory and pharma operations—potentially additive for partnering and strategic finance .

Appendix: Source Documents Read

• Q1 2025 8-K and press release with financial statements .
• Q4 2024 8-K, press release, and investor presentation .
• Q4 2024 earnings call transcripts - -.
• Other Q1 2025 press release (Board changes) .
• 8-K Regulation FD disclosure (domestic issuer status) .
• AHA 2024 zerlasiran 6-K press release (Phase 2 data) .