Executive Summary

Q1 2025 was a clean execution quarter: zero collaboration revenue as the company pivots to immunology, operating spend fell meaningfully YoY, and EPS beat by ~$0.01 vs consensus on disciplined R&D spend; cash runway “into 2027” was reiterated . EPS was ($0.27) vs S&P Global consensus of ($0.2825); revenue $0 vs $0 consensus (inline)* .
Management confirmed SL-325 remains on track: IND in Q3 2025, first patient in for the single-ascending dose (SAD) portion in Q3 2025, with Phase 1 enrollment completion expected in Q2 2026 .
Cost controls continued: R&D fell to $9.9M (from $16.3M YoY) as oncology wind-down completed; G&A declined modestly YoY to $4.5M; net loss improved to $13.7M vs $18.5M YoY .
Near-term stock catalysts are regulatory: IND acceptance and Phase 1 initiation for SL-325 in Q3 2025; ongoing preclinical/bispecific updates in 2025 may further shape sentiment .

What Went Well and What Went Wrong

What Went Well
- SL-325 timeline intact with IND expected in Q3 2025; management emphasized “on-track” IND-enabling activities and potential differentiation by targeting DR3 rather than TL1A .
- Operating discipline: R&D down to $9.9M from $16.3M YoY; net loss improved to $13.7M ($0.27) from $18.5M ($0.37) YoY .
- Cash runway reiterated “into 2027,” supporting completion of Phase 1 (enrollment expected by Q2 2026) .
- Quote: “Spending last quarter continued to come in line with expectations, and wind-down activities associated with the discontinued oncology programs have now been substantially completed.” — CEO Taylor Schreiber .
What Went Wrong
- No revenue recognized in the quarter (vs $1.115M collaboration revenue in Q1 2024), reflecting transition away from prior collaboration activity .
- Cash and investments decreased from $73.0M at 12/31/24 to $60.9M at 3/31/25 as the company funds SL-325 progression pre-IND .
- Continued operating losses as a pre-revenue biotech: loss from operations of $14.4M and net loss of $13.7M in Q1 2025 .

Metric	Q3 2024	Q4 2024	Q1 2025
Collaboration Revenue ($USD Millions)	$3.0	$0.0	$0.0
R&D Expense ($USD Millions)	$16.3	$15.4	$9.9
G&A Expense ($USD Millions)	$4.6	$4.2	$4.5
Loss from Operations ($USD Millions)	($17.9)	($19.6)	($14.4)
Other Income ($USD Millions)	$1.2	$1.0	$0.7
Net Loss ($USD Millions)	($16.7)	($18.7)	($13.7)
Diluted EPS ($)	($0.33)	($0.37)	($0.27)
Weighted Avg Shares (Millions)	50.8	50.8	51.0

Q1 2025 vs S&P Global consensus:

Metric	Consensus	Actual	Surprise
Revenue ($USD Millions)	$0.0*	$0.0	In line
EPS ($)	($0.2825)*	($0.27)	+$0.01 (beat)

KPIs and liquidity:

KPI	Q3 2024	Q4 2024	Q1 2025
Cash & Investments ($USD Millions)	~$90.1	~$73.0	$60.9
Cash Runway Guidance	Into 2027	Into 2027	Into 2027

Note: Values marked with * are from S&P Global consensus. Values retrieved from S&P Global.

Metric	Period	Previous Guidance	Current Guidance	Change
Cash Runway	Multi-year	Into 2027 (Q4 2024)	Into 2027 (Q1 2025)	Maintained
SL-325 IND Filing	Q3 2025	Q3 2025 (Q4 2024)	Q3 2025 (Q1 2025)	Maintained
Phase 1 Start (SAD first patient)	Q3 2025	Q3 2025 (Q4 2024)	Q3 2025 (Q1 2025)	Maintained
Phase 1 Enrollment Completion	Q2 2026	Q2 2026 (Q4 2024)	Q2 2026 (Q1 2025)	Maintained

Note: No Q1 2025 earnings call transcript was available in our document set; themes below reflect press releases.

Topic	Previous Mentions (Q3 2024, Q4 2024)	Current Period (Q1 2025)	Trend
R&D execution (SL-325)	Strategic shift to DR3; IND-enabling NHP tox underway	IND on track Q3 2025; first patient (SAD) targeted Q3 2025; Phase 1 enrollment completion expected Q2 2026	On plan, timeline reiterated
Cost structure/OpEx	Restructuring to prioritize DR3; expense discipline	R&D down YoY; oncology wind-down substantially completed	Improved cost discipline
Funding & runway	Cash “into 2027” at Q3 and year-end	Runway reiterated “into 2027”	Maintained
Scientific differentiation	DR3 vs TL1A rationale, high-affinity binding; NHP data (safety, full receptor occupancy)	Reiterated DR3 targeting advantages; NHP data details (no infusion reactions; NOAEL 100 mg/kg)	Reinforced differentiation
External visibility	Planned/attended conferences (Needham, ECCO, investor events)	Needham presentation; upcoming PEGS Boston; Leerink I&I	Ongoing IR/science engagement

Strategic focus: “All IND-enabling activities and regulatory interactions remain on-track to initiate the Phase 1 clinical trial for SL-325 in the third quarter of this year.” — CEO Taylor Schreiber .
Differentiation thesis: “We believe SL-325 is fundamentally differentiated… targeting the clinically validated DR3/TL1A pathway and could potentially provide best-in-class clinical remission rates for IBD patients.” — CEO .
Cost/wind-down: “Spending last quarter continued to come in line with expectations, and wind-down activities associated with the discontinued oncology programs have now been substantially completed.” — CEO .
Capital: “We continue to be well-positioned to fund operations into 2027, beyond the results from our Phase 1 clinical trial for SL-325.” — CEO .

An earnings call transcript for Q1 2025 was not available in our document set; management’s disclosures were via the 8-K/press release. No additional Q&A clarifications identified .

EPS beat: ($0.27) actual vs ($0.2825) S&P Global consensus; beat driven by lower YoY R&D spend as oncology wind-down completed and the portfolio refocused on SL-325 .
Revenue inline: $0 actual vs $0 consensus, consistent with pre-revenue status during the transition .
Estimate breadth: 4 EPS and 4 revenue estimates for Q1 2025, indicating modest coverage depth*.

Note: Values marked with * are from S&P Global consensus. Values retrieved from S&P Global.

The quarter de-risked execution: timelines for SL-325 (IND and Phase 1 initiation in Q3 2025) remain intact, sustaining the near-term catalyst path .
Operating discipline is visible in the P&L (R&D down to $9.9M; net loss improved), supporting a modest EPS beat vs consensus despite zero revenue .
Liquidity likely covers Phase 1 through completion of enrollment (Q2 2026), with runway “into 2027” reiterated, reducing financing overhang near term .
Scientific differentiation (DR3 receptor blockade vs TL1A ligand) remains central to the thesis, with NHP tox and occupancy data supportive of moving into first-in-human .
Trading setup: Regulatory milestones (IND clearance, first patient dosed) are expected Q3 2025; headline risk skew is to positive progress updates, while delays would pressure shares .
Medium-term: Focus turns to Phase 1 SAD/MAD readouts and the nomination of a bispecific DR3-based candidate in 2025, which could broaden optionality within IBD .

Corporate/Conference press releases (Q1 2025): JP Morgan, Crohn’s & Colitis Congress, ECCO oral presentation (Feb), Needham Conference (Apr) .