Clene posts Q3 profit on warrant liability gains
CLNN•Clene reported third-quarter net income of $3.92 million, reversing a year-earlier loss, as a $10.3 million swing in other income more than offset higher operating expenses. It completed a $4 million stock offering and expects cash to fund operations through mid-first-quarter 2027.
1. Profit and expenses
Clene reported third-quarter net income of $3.92 million and operating expenses of $6.40 million. Operating expenses rose 13% year over year, mainly because of higher regulatory costs related to its NDA submission and increased manufacturing and personnel expenses, including reinstated executive compensation.
2. Funding and outlook
The company completed a $4 million stock offering and said its cash resources are expected to fund operations through mid-first-quarter 2027. Clene plans to initiate its Phase 3 RESTORE-ALS trial in the second quarter of 2027 and could receive $6.7 million to $7.8 million from warrant exercises, subject to NDA acceptance.
3. Other income drivers
Net income benefited from a $10.3 million swing in total other income, mainly due to changes in the fair value of common stock warrant and derivative liabilities. Lower grant revenue, which is recorded as a reduction to research and development expense, also contributed to higher reported R&D costs.
