Apogee Therapeutics Posts $85.9M Loss as AbbVie Deal Nears Close
The clinical-stage biotech's net loss widened 30% to $85.9 million in the second quarter as it advanced its lead eczema drug toward Phase 3 trials.
Apogee Therapeutics (APGE), a clinical-stage immunology biotech, reported a wider second-quarter net loss of $85.9 million, up 30% from $66.1 million a year earlier, as spending on its lead drug candidate accelerated ahead of a pending $10.9 billion acquisition by AbbVie.
The quarter marked a pivotal stretch for the company. Apogee disclosed Phase 2 APEX Part B results for zumilokibart, its anti-IL-13 antibody for moderate-to-severe atopic dermatitis, showing a 65.9% EASI-75 response rate at the mid dose — a 41.9 percentage-point improvement over placebo — with statistically significant gains across secondary endpoints including IGA 0/1 at 46.0% and EASI-90 at 47.4%. Those data underpin the planned Phase 3 program and helped justify AbbVie's agreed offer of $135.11 a share.
Research and development expenses climbed 21% to $67.3 million, driven by zumilokibart program development and higher personnel costs. General and administrative spending rose 39% to $24.3 million as the company expanded its headcount and equity-based compensation grew. For the first half, the combined net loss reached $160.0 million, a 32% increase from the prior-year period, with R&D up 26% and G&A up 35%.
Two new cost lines appeared for the first time. Merger transaction costs of $4.4 million reflected expenses tied to the AbbVie acquisition, while interest expense of $1.6 million related to the Blackstone Life Sciences financing collaboration announced in May. That deal provided up to $1.3 billion in non-dilutive capital, structured as a revenue share liability that stood at $99.2 million on the balance sheet as of June 30.
The Blackstone arrangement more than doubled Apogee's cash position year over year. Cash, cash equivalents and marketable securities totaled $1.3 billion at quarter-end, up from $621.2 million a year earlier, while total assets grew 43% from the end of 2024 to $1.34 billion. Total liabilities surged more than fourfold to $141.2 million, largely because of the new revenue share obligation.
Apogee also outlined expansion plans for zumilokibart beyond atopic dermatitis. The company will initiate ELEVATE, a Phase 2a open-label study in eosinophilic esophagitis enrolling 30 to 50 patients, in the second half of 2026, followed by ASPIRE, a potentially registrational Phase 2b asthma trial of roughly 500 patients, in the first half of 2027.
The AbbVie acquisition is expected to close in the third quarter of 2026. Apogee's accumulated deficit widened to $721.7 million by mid-year, underscoring the capital intensity of late-stage immunology development even as the Blackstone financing positions the company to reach commercialization without further equity raises.