What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-11-05 compared with 2024-08-01 · 241 added, 223 removed, 295 unchanged (61% of the section changed)

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We are a leader in the field of gene therapy, seeking to deliver to patients suffering from rare and other devastating diseases single treatments with potentially curative results.

We are advancing a focused pipeline of innovative gene therapies, including our clinical candidates for the treatment of Huntington’s disease, amyotrophic lateral sclerosis (“ALS”), refractory mesial temporal lobe epilepsy (“MTLE”) and Fabry disease.

We are advancing a focused pipeline of innovative gene therapies, including our clinical candidates for the treatment of Huntington’s disease, amyotrophic lateral sclerosis caused by mutations in superoxide dismutase 1 (“SOD1-ALS”), refractory mesial temporal lobe epilepsy (“mTLE”) and Fabry disease.

Business Developments

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AMT-130 is our novel gene therapy candidate for the treatment of Huntington’s disease, which utilizes our proprietary, gene-silencing miQURE platform and incorporates an AAV vector carrying a micro ribonucleic acid (“miRNA”) specifically designed to silence the huntingtin gene and the potentially highly toxic exon 1 protein fragment.

We are currently conducting a multi-center randomized, controlled, and blinded Phase I/II clinical trial for AMT-130 in the U.S.

We are currently conducting a multi-center randomized, controlled Phase I/II clinical trial for AMT-130 in the U.S.

(“US study”) as well as an open-label Phase Ib/II study in Europe with the same early-manifest criteria for Huntington’s disease as the U.S.

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We completed the enrollment of all 26 patients in the first two cohorts of our US study in March 2022 and the enrollment of 13 patients in the two cohorts of our European study in June 2023.

In November 2023, we initiated patient dosing in a third cohort of up to 12 patients to further investigate both doses of AMT-130 in combination with perioperative immunosuppression.

In November 2023, we initiated patient dosing in a third cohort of up to 12 patients across both U.S.

sites to further investigate both doses of AMT-130 in combination with perioperative immunosuppression.

Patient enrollment is ongoing in this cohort with a focus on evaluating near-term safety and tolerability.

On June 3, 2024, we announced that the FDA granted Regenerative Medicine Advanced Therapy (“RMAT”) designation for AMT-130 for the treatment of Huntington’s disease.

The FDA granted RMAT designation based on the potential of AMT-130 to address the major unmet medical need among patients with Huntington’s disease.

In June 2024, we announced that the U.S.

Food and Drug Administration (“FDA”) granted Regenerative Medicine Advanced Therapy (“RMAT”) designation for AMT-130 based on the potential of AMT-130 to address the major unmet medical need among patients with Huntington’s disease.

The designation follows the FDA’s review of interim Phase I/II clinical data for AMT-130 announced in December 2023 and is based on an analysis comparing these 24-month clinical data to a non-concurrent criteria-matched natural history cohort.

On July 9, 2024, we announced updated interim clinical data including up to 24 months of follow-up data from 29 treated patients enrolled in the ongoing U.S.

In July 2024, we announced updated interim clinical data including up to 24 months of follow-up data from 29 treated patients enrolled in the ongoing U.S.

and European Phase I/II clinical trials of AMT-130 for the treatment of Huntington’s disease.

The data included a statistical analysis of clinical outcomes for the 21 treated patients at 24 months compared to an expanded, propensity-weighted external control (n=154) developed in collaboration with the Cure Huntington’s Disease Initiative (CHDI) using data from the TRACK-HD, TRACK-ON and PREDICT-HD natural history studies.

In conjunction with the July 2024 update, we conducted a post-hoc statistical analysis of clinical outcomes for the 21 treated patients at 24 months compared to an expanded, propensity-weighted external control developed in collaboration with the Cure Huntington’s Disease Initiative (CHDI) using data from the TRACK-HD, TRACK-ON and PREDICT-HD natural history studies.

The external control includes 154 patients that met the Phase I/II clinical trial eligibility criteria, and whose data contributions were statistically weighted using propensity scoring to closely match the baseline characteristics of patients treated with AMT-130.

Disease-related outcomes for these well-balanced cohorts were then compared after 24 months follow-up and are summarized below.

Measures of statistical significance in this analysis were based on nominal p values and are unadjusted.

● A statistically significant, dose-dependent, slowing in disease progression measured by the composite Unified Huntington’s Disease Rating Scale (cUHDRS) was observed through 24 months in patients receiving the high dose of AMT-130.

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● Trends in measurements of motor and cognitive function showed near-baseline stability throughout the 24 months of follow-up in patients receiving the high dose of AMT-130.

● A statistically significant reduction of NfL in cerebrospinal fluid (CSF) was observed in patients treated with AMT-130.

● A statistically significant reduction of neurofilament light chain (NfL) in cerebrospinal fluid (CSF) was observed in patients treated with AMT-130.

o Patients treated with AMT-130 had a mean reduction in CSF NfL of 11% compared to baseline (p=0.02) at 24 months.

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An independent natural history study demonstrated a 26% increase in CSF NfL at 24 months in patients with early manifest Huntington’s disease (n=19).

Based on data observed to date, AMT-130 remains generally well-tolerated, with a manageable safety profile at both doses.

Based on data observed as of the July 2024 interim update, AMT-130 remains generally well-tolerated, with a manageable safety profile at both doses.

There were no new AMT-130-related serious adverse events reported.

We intend to hold a Type B, multi-disciplinary RMAT meeting with U.S.

Food and Drug Administration (FDA) to present these updated data and discuss potential clinical development pathways.

Based on the granting of the RMAT designation, we have scheduled a Type B, multi-disciplinary meeting with the U.S.

Food and Drug Administration (FDA) in late November 2024 at which we plan to present the most recent clinical data and initiate discussions regarding the potential for an expedited development pathway for AMT-130.

We will also discuss with the FDA a future communication plan that is expected to include additional sub-disciplinary meetings to take place in the first half of 2025.

Sale of commercial manufacturing activities

On June 29, 2024, we and our affiliates, uniQure Inc.

and uniQure B.V., entered into various agreements with Genezen Holdings Inc.

and its affiliate Genezen MA, Inc.

(together “Genezen”) to sell our commercial manufacturing activities located in Lexington, MA (the “Lexington Facility”) (the “Lexington Transaction”).

The transaction closed on July 22, 2024 (the “Closing”).

As consideration, we received (i) shares of newly issued Series C preferred stock of Genezen Holdings Inc.

valued at $12.5 million, which are convertible into common stock and will accrue an 8.0% per annum cumulative dividend, and (ii) a convertible promissory note with a nominal amount of $12.5 million, bearing interest at 8.0% per annum and maturing 63 months following the date of issuance (the “Consideration”).

Our Chief Executive Officer, Matthew Kapusta will join the board of directors of Genezen in connection with the closing of the transaction.

We entered into an asset purchase agreement (“APA”) with Genezen.

Pursuant to the APA, Genezen agreed to acquire the manufacturing equipment and related manufacturing operations along with certain other assets associated with the Lexington Facility.

We, Genezen and the landlord of our Lexington Facility entered into an agreement for us to assign and Genezen to assume the existing lease agreement between us and the landlord.

Genezen extended offers of employment to a significant majority of our employees located at the Lexington Facility, with the remaining employees terminated effective August 30, 2024.

Concurrent with entering into the APA, we entered into a commercial supply agreement (“CSA”) with Genezen.

Pursuant to the terms of the CSA, we subcontracted the manufacturing of HEMGENIX® to Genezen.

On June 29, 2024, our affiliates, uniQure Inc.

and uniQure biopharma B.V., entered into an asset purchase agreement (the “APA”) with Genezen Holdings Inc.

and its subsidiary, Genezen MA, Inc.

(together “Genezen”) to sell certain assets and assume certain liabilities related to uniQure’s manufacturing facility (the “Lexington Facility”) and operations in Lexington, Massachusetts (the “Lexington Transaction”).

The Lexington Transaction closed on July 22, 2024 (the “Closing”).

Our Chief Executive Officer, Matthew Kapusta, joined the board of directors of Genezen in connection with the Closing.

In conjunction with the Lexington Transaction, Genezen extended offers of employment to a significant majority of our employees located at the Lexington Facility, with the remaining employees terminated effective August 30, 2024.

As consideration for the Lexington Transaction, we received (i) shares of newly issued Series C preferred stock of Genezen Holdings Inc.

valued at $12.5 million, which are convertible into common stock and will accrue an 8.0% per annum cumulative dividend, (ii) a convertible promissory note with a nominal amount of $12.5 million, bearing interest at 8.0% per annum and maturing 63 months following the date of issuance and (iii) a right to purchase HEMGENIX® at terms considered favorable to market terms (the “Consideration”).

In connection with the Closing, we, Genezen and the landlord of the Lexington Facility entered into an agreement for us to assign and Genezen to assume the existing lease agreement between us and the landlord.

We also amended our original July 2013 guarantee to continue guaranteeing rental payments owed by Genezen until the end of the current term on May 31, 2029.

In the event of Genezen’s default related to rental payments owed to the landlord, we are entitled to terminate the assignment agreement and step into the original lease agreement.

At the Closing, we entered into a commercial supply agreement (“CSA”) with Genezen.

Pursuant to the terms of the CSA, the parties agreed to subcontract the manufacturing of HEMGENIX® to Genezen.

The CSA includes a minimum term of three years and minimum purchase commitments of HEMGENIX® commercial supplies of $43.3 million over the first three years, unless certain contractual provisions are triggered.

We will continue to sell these HEMGENIX® commercial supplies to CSL Behring.

Additionally, we entered into a development and other manufacturing services agreement (“DMSA”) with Genezen.

Pursuant to the terms of the DMSA, we have preferred customer status to receive manufacturing and development services to support our investigational gene therapy programs and other services related to the manufacture of HEMGENIX® under the CSA.

Our obligations with respect to the supply of HEMGENIX® to CSL Behring remain in effect notwithstanding the subcontracting to Genezen.

We recorded a $1.2 million gain from the divestment.

We paid a total of $8.3 million to Genezen and a third party related to adjustments of working capital and to obtain consent to proceed with the divestment.

Additionally, we entered into a development and other manufacturing services agreement (“DMSA”) with Genezen at Closing.

Pursuant to the DMSA, we are entitled to preferred customer status to receive manufacturing and development services to support our investigational gene therapy programs and other services related to HEMGENIX® (other than our manufacturing and supply obligations under the CSA).

The DMSA has a minimum term of three years and requires us to purchase services for a total minimum of $14.0 million.

The CSA and DMSA became effective at Closing.

As a result of the Lexington Transaction, the Chief Operating Officer role was eliminated, and Pierre Caloz, will depart the company, continuing to lend his expertise in an advisory capacity.

In connection with Mr.

Caloz’s departure, the Board of Directors of the Company have appointed Amin Abujoub, Ph.D., our current Chief Quality Officer, to serve as the Company’s Chief Technical Operations Officer, effective as of July 22, 2024.

Hercules Loan Repayment and Amendment

On June 28, 2024 we and Hercules amended the 2023 Amended Facility (“2024 Amended Facility”).

On July 19, 2024, in connection with the closing of the Lexington Transaction, we prepaid $50.0 million of the total $100.0 million principal outstanding.

In connection with the Closing on July 22, 2024, we and Hercules amended the 2023 Amended Facility (“2024 Amended Facility”).

As a condition to Hercule’s consent to the Lexington Transaction, on July 19, 2024 we prepaid $50.0 million of the total $100.0 million principal outstanding.

The remaining $50.0 million principal outstanding will need to be repaid on January 5, 2027 (the “Maturity Date”).

Results of the business review

On July 23, 2024, we announced the closing of the sale of its Lexington Facility to Genezen and on August 1, 2024, we announced an organizational restructuring.

On July 23, 2024, we announced the Closing and on August 1, 2024, we announced an organizational restructuring (the “Restructuring”).

These actions were the outcome of a recently completed, comprehensive review of our operations with the goals of conserving capital and streamlining the organization.

As part of these changes, we expect to eliminate approximately 300 positions or 65% of our workforce.

We estimate that we will incur costs in the range of $6.5 million to $7.5 million in connection with the restructuring, consisting primarily of cash expenditures related to employee severance costs.

These costs are subject to assumptions, including local law requirements, and actual expenses may differ materially from the estimates discussed above.

The restructuring is subject to the review by our Amsterdam-based works council, which is expected to be completed in the third quarter of 2024.

We expect the restructuring to be substantially completed by the end of 2024.

As part of these changes, we eliminated approximately 300 positions or 65% of our workforce.

We estimate that we will incur costs in the range of $6.5 million to $7.5 million related to employee severance costs depending on whether or not employees continue to provide services through the residual service periods.

The Restructuring was subject to the review by our Amsterdam-based works council, which was completed in the third quarter of 2024.

We expect the Restructuring to be substantially completed by the end of 2024 with some employees continuing through second quarter 2025.

Recent Developments of other Product Candidates

Temporal lobe epilepsy program (AMT-260)

In August 2023, the FDA cleared the IND application for AMT-260, our gene therapy candidate for refractory MTLE.

AMT-260 comprises an AAV9 vector that locally delivers two engineered miRNAs designed to degrade the GRIK2 gene and suppress the aberrant expression of glutamate receptor subtype GLUK2 that is believed to trigger seizures in patients with refractory MTLE.

In August 2023, the FDA cleared the IND application for AMT-260, our investigational gene therapy candidate for refractory MTLE.

AMT-260 is comprised of an AAV9 vector that locally delivers two engineered miRNAs designed to degrade the GRIK2 gene and suppress the aberrant expression of glutamate receptor subtype GLUK2 that is believed to trigger seizures in patients with refractory MTLE.

We are initiating a Phase I/IIa clinical trial that will be conducted in the United States and consist of two parts.

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The second part is expected to be a randomized, controlled trial to generate proof of concept (“POC”) data.

The first patient has been enrolled into the observational phase of the Phase I/II clinical trial of AMT-260 for the treatment of mTLE.

The FDA-approved study protocol provides that the first three patients to be enrolled in the study are required to have MRI-confirmed unilateral, hippocampal sclerosis.

Due to the more restrictive inclusion criteria for these sentinel patients, enrollment has taken longer than expected.

We are rapidly activating recruitment sites with 10 centers currently open and an additional two sites expected to be activated by the end of 2024.

Fabry disease program (AMT-191)

AMT-191 is our gene therapy candidate for the treatment of Fabry disease.

AMT-191 comprises of an AAV5 capsid that incorporates the α-galactosidase A (“GLA”) transgene and a proprietary, highly potent, liver-specific promoter.

AMT-191 is our investigational gene therapy candidate for the treatment of Fabry disease.

AMT-191 is comprised of an AAV5 capsid that incorporates the α-galactosidase A (“GLA”) transgene and a proprietary, highly potent, liver-specific promoter.

In November 2023 we announced that the FDA had cleared the IND application for AMT-191.

We are initiating a first-in-human Phase I/IIa clinical trial that will be conducted in the United States.

The multicenter, open-label clinical trial consists of two dose-escalating cohorts of up to three adult male patients each to assess safety, tolerability, and early signs of efficacy of AMT-191 in patients with Fabry disease.

In August 2024, we announced that the first patient has been dosed in a Phase I/IIa clinical trial of AMT-191 for the treatment of Fabry disease.

The multicenter, open-label clinical trial consists of two dose-escalating cohorts of up to six adult male patients each to assess safety, tolerability, and early signs of efficacy of AMT-191 in patients with Fabry disease.

In September 2024, we announced the FDA has granted Orphan Drug Designation to AMT-191 and in October 2024, the FDA granted Fast Track Designation to AMT-191.

Amyotrophic Lateral Sclerosis (AMT-162)

AMT-162 is our gene therapy candidate for a one-time, intrathecally administered investigational gene therapy for ALS caused by mutations in superoxide dismutase 1 (“SOD1”), a rapidly progressing, rare motor neuron disease that leads to loss of everyday functions and is uniformly fatal.

Mutations in the SOD1 gene of ALS account for approximately one-fifth of all inherited forms of this fatal disease.

AMT-162 is our investigational gene therapy candidate for a one-time, intrathecally administered investigational gene therapy for SOD1-ALS.

AMT-162 is comprised of a recombinant AAVrh10 vector that expresses a miRNA designed to knock down the expression of SOD1 with the goal of slowing down or potentially reversing the progression of ALS in patients with SOD1 mutations.

The FDA has cleared the IND application for AMT-162 and has granted Orphan Drug and Fast Track Designation.

We are initiating a first-in-human Phase I/II clinical trial that will be a U.S.-based, multi-center, open-label trial consisting of three cohorts with up to four patients each receiving a one-time intrathecal infusion with immunosuppression.

In October 2024, we announced the first patient has been dosed in a Phase I/IIa clinical trial of AMT-162 for the treatment of SOD1-ALS.

The first-in-human Phase I/II clinical trial is a U.S.-based, multi-center, open-label trial consisting of three cohorts with up to four patients each receiving a one-time intrathecal infusion with immunosuppression.

Safety, tolerability and early signs of efficacy will be evaluated in the study.

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Key components of our results of operations include the following:

Three months ended June 30,

Six months ended June 30,

Three months ended September 30,

Nine months ended September 30,

(in thousands)

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Selling, general and administrative expenses

As of June 30, 2024 and December 31, 2023, we had cash and cash equivalents and investment securities of $524.4 million and $617.9 million, respectively.

We had a net loss of $56.3 million and $121.9 million in the three and six months ended June 30, 2024, respectively, compared to a net loss of $68.5 million and $145.7 million for the same period in 2023.

As of June 30, 2024 and December 31, 2023, we had accumulated deficits of $1,012.3 million and $890.4 million, respectively.

As of September 30, 2024 and December 31, 2023, we had cash and cash equivalents and investment securities of $435.2 million and $617.9 million, respectively.

We had a net loss of $44.4 million and $166.3 million in the three and nine months ended September 30, 2024, respectively, compared to a net loss of $89.6 million and $235.3 million for the same periods in 2023.

As of September 30, 2024 and December 31, 2023, we had accumulated deficits of $1,056.7 million and $890.4 million, respectively.

See “Results of Operations” below for a discussion of the detailed components and analysis of the amounts above.

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A summary of our critical accounting policies as well as a discussion of our critical accounting estimates are presented in our Annual Report .

There were no material changes to our critical accounting policies during the six months ended June 30, 2024 with the exception of determining the accounting treatment of the Lexington Transaction.

Lexington Transaction

We entered into various agreements with Genezen on June 29, 2024 to divest our Lexington Facility in return for the Consideration.

There were no material changes to our critical accounting policies during the nine months ended September 30, 2024 with the exception of determining the valuation of the intangible asset with favorable terms recorded as part of the Lexington Transaction.

Intangible asset

We entered into the APA with Genezen on June 29, 2024 to divest our commercial manufacturing activities in return for the Consideration.

The Lexington Transaction closed on July 22, 2024.

We determined that as of June 30, 2024 the requirements of Topic 360 to classify certain assets as assets held for sale within our consolidated Balance Sheet were met.

Accordingly, we presented tangible assets with a carrying amount of $15.3 million, the right-of-use asset related to the Lexington Facility with a carrying amount of $11.9 million, goodwill with a carrying amount of $2.5 million, as well as inventory with a net realizable value of $8.0 million within “Assets held for sale” on our consolidated Balance Sheet.

In addition, we presented $17.9 million of leasehold liabilities within “Liabilities held for sale”.

If these criteria had not been met, then we would have continued to present these items respectively within “Property, plant and equipment, net of accumulated depreciation”, “Inventories, net”, “Operating lease right-of-use assets”, “Current portion of operating lease liabilities”, and “Operating lease liabilities, net of current portion” within the consolidated balance sheets.

We determined that the closing conditions were contingent on several conditions that were not met as of June 30, 2024.

Therefore, we did not account for the result of the divestment in the three- and six-month period ended June 30, 2024.

Part of the Consideration received was a right, with an estimated fair market value of $16.7 million, to purchase HEMGENIX® from Genezen up to the termination of our supply agreement with CSL Behring at terms considered favorable to market terms.

The determination of the fair market value required us to estimate the current and future commercial supply prices of HEMGENIX® to compare these to the contractually agreed terms.

Prices for the commercial supply of HEMGENIX® are not readily observable in the market.

Therefore, our estimate of the commercial supply price was based on what a market participant would be willing to pay in a comparable transaction, using industry benchmarks and relevant market data as reference points.

If the estimated commercial supply price used in the valuation had increased by 5% per drug product batch, then the fair market value of the intangible asset and the consideration received as well as the gain recorded on the divestment would have been increased by $3.0 million.

If the estimated commercial supply price used in the valuation had been decreased by 5% per drug product batch, then the fair market value of the intangible asset and the consideration received on the divestment would have been decreased by $2.9 million.

This would have resulted in a loss on divestment of $1.7 million instead of the $1.2 million gain presented.

Cost of contract manufacturing

We entered into a development and commercial supply agreement with CSL Behring in June 2020.

We recognize the cost to manufacture HEMGENIX® under such agreement as cost of contract manufacturing.

Prior to Closing, we recognized the cost to manufacture HEMGENIX® under such agreement as cost of contract manufacturing.

Research and development expenses

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● costs incurred for the development and improvement of our manufacturing processes and methods;

● costs associated with research activities for enabling technology platforms, such as next-generation vectors, promoters and re-administration of gene therapies;

● costs associated with research activities for enabling technology platforms;

● costs associated with the rendering of collaboration services;

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● the scope, rate of progress and expense of our research and development activities;

● our ability to successfully manufacture and scale-up production;

● clinical trial protocols, speed of enrollment and resulting data;

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Other items, net

Our other income primarily consists of payments received to subsidize our research and development efforts and income from the subleasing of our Amsterdam facility.

Our other expense primarily consists of expenses we incur in relation to our subleasing income.

Our other income primarily consists of the net gain resulting from the sale of the commercial manufacturing activities located in Lexington, MA in July 2024, payments received to subsidize our research and development efforts, and income from the subleasing of our Amsterdam facility and our Lexington, MA research and development facility which, commenced in September 2024.

Our other expense primarily consists of costs incurred under our commercial supply agreement with Genezen.

These include costs related to the purchase of HEMGENIX® from Genezen net of income from the sales of HEMGENIX® to CSL Behring, amortization of the intangible asset for our favorable supply terms under the CSA and credits from the release of liabilities related to expected net losses associated with minimum purchase commitments under the CSA .

Additionally, other expense also consists of expenses we incur in relation to our subleasing income.

Results of Operations

Comparison of the three months ended June 30, 2024 and 2023

The following table presents a comparison of our results of operations for the three months ended June 30, 2024 and 2023.

Three months ended June 30,

Comparison of the three months ended September 30, 2024 and 2023

The following table presents a comparison of our results of operations for the three months ended September 30, 2024 and 2023.

Three months ended September 30,

(in thousands)

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Net loss before income tax expense

Income tax expense

Our revenues for the three months ended June 30, 2024 and 2023 were as follows:

Three months ended June 30,

Income tax benefit

Our revenues for the three months ended September 30, 2024 and 2023 were as follows:

Three months ended September 30,

(in thousands)

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We recognize license revenues from CSL Behring, related to royalty payments owed on HEMGENIX® sales, when earned.

For the three months ended June 30, 2024, we recognized $1.9 million of license revenues, compared to $0.8 million for the same period in 2023.

For the three months ended September 30, 2024, we recognized $2.1 million of license revenues, compared to $0.5 million for the same period in 2023.

Contract manufacturing revenues

We recognize contract manufacturing revenues related to contract manufacturing HEMGENIX® for CSL Behring.

Contract manufacturing revenues is realized when earned upon sales of HEMGENIX® drug product to CSL Behring.

We recognized $2.1 million contract manufacturing revenues in the three months ended June 30, 2024 , compared to $1.3 million for the same period in 2023.

We recognized contract manufacturing revenues related to contract manufacturing HEMGENIX® for CSL Behring prior to the Closing of the Lexington Transaction.

Contract manufacturing revenues were realized when earned upon sales of HEMGENIX® drug product to CSL Behring.

We recognized nil contract manufacturing revenues in the three months ended September 30, 2024 , compared to $0.3 million for the same period in 2023.

Collaboration revenues

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Collaboration revenue related to these contracted services is recognized when the performance obligations are satisfied.

For the three months ended June 30, 2024 and 2023 we recognized $7.1 million and $0.3 million of collaboration revenue for CSL Behring, respectively.

The increase in collaboration revenue of $6.8 million in the three months ended June 30, 2024 compared to the same period in 2023 was primarily related to additional development and other services provided to CSL Behring in relation to the CSL Behring Agreement.

For the three months ended September 30, 2024 and 2023 we recognized $0.2 million and $0.6 million of collaboration revenue for CSL Behring, respectively.

Cost of contract manufacturing

We incurred $7.2 million of cost of contract manufacturing related to the manufacture of HEMGENIX® in the three months ended June 30, 2024, compared to $1.4 million cost of contract manufacturing in the three months ended June 30, 2023.

The increase in cost of $5.9 million in 2024 is primarily related to expensing costs not expected to be recovered from selling HEMGENIX® under the terms of our development and commercial supply agreement with CSL Behring.

R&D expenses for the three months ended June 30, 2024 were $33.7 million, compared to $46.0 million for the same period in 2023.

We incurred $0.8 million of cost of contract manufacturing related to the manufacture of HEMGENIX® prior to the Closing of the Lexington Transaction in the three months ended September 30, 2024, compared to $1.0 million cost of contract manufacturing in the three months ended September 30, 2023.

R&D expenses for the three months ended September 30, 2024 were $30.6 million, compared to $65.4 million for the same period in 2023.

Other research and development expenses are separately classified in the table below.

These other expenses are not allocated as they are deployed across multiple projects under development.

Three months ended June 30,

Three months ended September 30,

(in thousands)

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Temporal lobe epilepsy (AMT-260)

Programs in preclinical development and platform related expenses

Amyotrophic lateral sclerosis (AMT-162)

Fabry disease (AMT-191)

Programs in preclinical development and platform related expenses

Etranacogene dezaparvovec (AMT-060/061)

Total direct research and development expenses

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Facility expenses

Share-based compensation expense

Other expenses

Severance costs

Share-based compensation expense

Fair value changes related to contingent consideration

Other expenses

Total other research and development expenses

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Huntington’s disease (AMT-130)

In the three months ended June 30, 2024 and June 30, 2023, we incurred costs of $2.9 million and $4.2 million respectively.

In the three months ended September 30, 2024 and September 30, 2023, we incurred costs of $4.5 million and $3.1 million respectively.

Our external costs for the development of AMT-130 were primarily related to the execution of our Phase I/II clinical trials in the U.S.

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in March 2022 and in Europe in June 2023.

This resulted in a $1.3 million reduction of costs in 2024 compared to the prior year as we typically incur higher costs during the first six months of patient follow-up compared to the period thereafter.

Temporal lobe epilepsy (AMT-260)

In the three months ended June 30, 2024 and June 30, 2023, we incurred costs of $2.0 million and $2.5 million respectively, for the development of AMT-260.

In the three months ended September 30, 2024 and September 30, 2023, we incurred costs of $1.6 million and $4.7 million respectively, for the development of AMT-260.

In August 2023, the FDA cleared our IND application, and we continue to incur costs for the preparation of a Phase I clinical trial.

Preclinical programs and platform development

In the three months ended September 30, 2024 and September 30, 2023, we incurred $1.0 million and $3.1 million of costs, respectively, primarily related to our preclinical activities associated with product candidates for various other research programs and technology innovation projects.

Amyotrophic Lateral Sclerosis caused by mutations in SOD1 (AMT-162)

On January 31, 2023, we entered into a global licensing agreement with Apic Bio for AMT-162.

In the three months ended June 30, 2024, we incurred $1.6 million of costs to initiate a Phase I/II clinical trial in 2024.

In the three months ended June 30, 2023 we incurred $0.6 million of expenses related to our preclinical activities.

In the three months ended September 30, 2024 and September 30, 2023, we incurred costs of $0.9 million and $2.4 million, respectively, to initiate a Phase I/II clinical trial.

Fabry disease (AMT-191)

In the three months ended June 30, 2024 and June 30, 2023, we incurred costs of $1.5 million and $0.4 million, respectively, related to our development of AMT-191.

In the three months ended September 30, 2024 and September 30, 2023, we incurred costs of $0.8 million and $0.4 million, respectively, related to our development of AMT-191.

In November 2023, the FDA cleared the IND application, and we started incurring additional costs for the Phase I/II clinical trial preparation.

Preclinical programs and platform development

In the three months ended June 30, 2024 and June 30, 2023, we incurred $0.9 million and $2.3 million of costs, respectively, primarily related to our preclinical activities associated with product candidates for various other research programs and technology innovation projects.

Etranacogene dezaparvovec (AMT-060/061)

We transitioned activities related to the clinical trial and long-term follow-up of patients to CSL Behring in December 2022.

Direct research and development expenses related to clinical development and other regulatory activities and commercialization expenses incurred in the three months ended June 30, 2024 and June 30, 2023 are presented net of reimbursements due from CSL Behring and include settlement amounts from the transition.

Other research & development expenses

● We incurred $13.0 million in personnel and contractor-related expenses in the three months ended June 30, 2024 , compared to $17.8 million for the same period in 2023.

The decrease was primarily related to the Lexington facility being primarily dedicated to contract manufacturing during the three months ended June 30, 2024 compared to the facility having been dedicated to research and development activities in the prior period;

● We incurred $6.0 million in operating expenses and depreciation expenses related to our rented facilities in Amsterdam and Lexington, Massachusetts in the three months ended June 30, 2024 , compared to $7.7 million in the same period in 2023;

● We incurred $2.9 million in share-based compensation expenses in the three months ended June 30, 2024 , compared to $4.7 million for the same period in 2023.

The decrease was primarily a result of the reduction in expense from the restructuring that occurred in October 2023 and a decrease in the fair value of the awards granted;

● We incurred $2.2 million of other expenses for the three months ended June 30, 2024 , compared to $1.8 million for the same period in 2023;

● We incurred $1.4 million in disposable costs in the three months ended June 30, 2024 , compared to $5.9 million for the same period in 2023.

The decrease was primarily a result of the reduction in expense from the restructuring that occurred in October 2023;

● We included $1.1 million of severance costs related to the Lexington Transaction in the three months ended June 30, 2024 with no such cost in the same period in 2023;

● We recognized a $1.8 million gain in the three months ended June 30, 2024 related to a decrease in the fair value of contingent consideration associated with the acquisition of uniQure France SAS, compared to $0.2 million increase in fair value for the same period in 2023.

● We incurred $10.0 million in personnel and contractor-related expenses in the three months ended September 30, 2024 , compared to $19.4 million for the same period in 2023.

The decrease was primarily related to the divestment of our commercial manufacturing activities as well as a reduction in expense from the restructuring that occurred in October 2023;

● We incurred $3.8 million in operating expenses and depreciation expenses related to our rented facilities in Amsterdam and Lexington, Massachusetts in the three months ended September 30, 2024 , compared to $6.7 million in the same period in 2023.

The decrease was primarily related to the divestment of our commercial manufacturing activities as well as the subleasing of our 20 Maguire facility;

● We incurred $2.7 million of other expenses for the three months ended September 30, 2024 , compared to $1.1 million for the same period in 2023;

● We incurred $1.4 million in share-based compensation expenses in the three months ended September 30, 2024 , compared to $5.6 million for the same period in 2023.

The decrease was primarily related to the divestment of our commercial manufacturing activities, a reduction in expense from the restructuring that occurred in October 2023 and a decrease in the fair value of the awards granted;

● We incurred $1.0 million in disposable costs in the three months ended September 30, 2024 , compared to $4.7 million for the same period in 2023.

The decrease was primarily related to the divestment of our commercial manufacturing activities as well as a reduction in expense from the restructuring that occurred in October 2023;

● We included $3.4 million of severance costs related to the divestment of our commercial manufacturing activities and the organizational restructuring in the three months ended September 30, 2024 with no such cost in the same period in 2023;

● We recognized a $0.4 million gain in the three months ended September 30, 2024 related to a decrease in the fair value of contingent consideration associated with the acquisition of uniQure France SAS, compared to a loss of $14.2 million related to the increase in fair value for the same period in 2023.

Selling, general and administrative expenses

Selling, general and administrative expenses for the three months ended June 30, 2024 were $15.8 million, compared to $21.2 million for the same period in 2023.

● We incurred $5.7 million in personnel and contractor-related expenses in the three months ended June 30, 2024 , compared to $6.4 million in the same period in 2023.

The decrease was primarily related to the reduction in personnel and contractors as a result of the restructuring that occurred in October 2023;

● We incurred $4.1 million in professional fees in the three months ended June 30, 2024 , compared to $2.5 million in the same period in 2023.

Selling, general and administrative expenses for the three months ended September 30, 2024 were $11.6 million, compared to $18.1 million for the same period in 2023.

● We incurred $5.5 million in personnel and contractor-related expenses in the three months ended September 30, 2024 , compared to $6.4 million in the same period in 2023;

● We incurred $2.0 million in share-based compensation expenses in the three months ended September 30, 2024 , compared to $5.1 million in the same period in 2023.

The decrease was primarily related to the divestment of our Lexington Facility, a reduction in expense from the restructuring that occurred in October 2023 and a decrease in the fair value of the awards granted;

● We incurred $1.5 million in professional fees in the three months ended September 30, 2024 , compared to $2.8 million in the same period in 2023.

We regularly incur accounting, audit and legal fees associated with operating as a public company;

The increase from the prior period includes an increase in professional fees related to the Lexington Transaction;

● We incurred $3.3 million in share-based compensation expenses in the three months ended June 30, 2024 , compared to $4.0 million in the same period in 2023;

● We incurred $1.6 million in other expenses in the three months ended June 30 , 2024, compared to $3.2 million in the same period in 2023.

The $1.6 million decrease was primarily related to a decrease in intellectual property fees as well as a reduction of expenses for information technology;

● We incurred $0.3 million of severance costs related to the Lexington Transaction in the three months ended June 30, 2024 with no such cost in the same period in 2023;

● We incurred nil in financial advisory fees in relation to our licensing transaction with CSL Behring in the three months ended June 30, 2024, compared to $3.8 million in 2023.

● We incurred $0.9 million in other expenses in the three months ended September 30 , 2024, compared to $2.8 million in the same period in 2023;

● We incurred $0.7 million of severance costs related to the organizational restructuring in the three months ended September 30, 2024 with no such cost in the same period in 2023.

Other items, net

We recognized $1.6 million in other income from payments received from European authorities to subsidize our research and development efforts in the Netherlands in the three months ended June 30, 2024, compared to $1.2 million for the same period in 2023.

Other items, net for the periods presented primarily related to income from the subleasing of our Amsterdam facility and expenses we incur in relation to the subleasing facility.

We recognized $1.2 million net gain resulting from the sale of the commercial manufacturing activities located in Lexington, MA in July 2024 in other income.

We recognized $1.5 million net in other expenses during the three months ended September 30, 2024 (nil in three months ended September 30, 2023) related to the purchase of HEMGENIX® from Genezen net of income from the sales of HEMGENIX® to CSL Behring, amortization of the intangible asset for our favorable supply terms under the CSA and credits from the release of liabilities related to expected net losses associated with minimum purchase commitments under the CSA .

We recognized $1.1 million in other income from payments received from European authorities to subsidize our research and development efforts in the Netherlands in the three months ended September 30, 2024, compared to $1.4 million for the same period in 2023.

Other items, net for the periods presented primarily related to income from the subleasing of our Amsterdam facility and Lexington research and development facility and expenses we incur in relation to the subleasing facility.

Other non-operating items, net

Our other non-operating items, net, for the three months ended June 30, 2024 and 2023 were as follows:

Three months ended June 30,

Our other non-operating items, net, for the three months ended September 30, 2024 and 2023 were as follows:

Three months ended September 30,

(in thousands)

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Interest expense

Foreign currency (losses) / gains, net

Foreign currency gains, net

Total non-operating expense, net

We recognize interest income associated with our cash and cash equivalents and investment securities.

We recognized $5.8 million in interest income in the three months ended June 30, 2024, compared to $3.2 million in the same period in the prior year.

Our interest income increased by $2.6 million due to the interest income earned on investment securities as well as cash on hand during the three months ended June 30, 2024.

We recognized $16.2 million in interest expense for the three months ended June 30, 2024 and $6.8 million for the three months ended June 30, 2023.

We recognize interest income associated with our cash and cash equivalents, investment securities and convertible promissory note.

We recognized $4.9 million in interest income in the three months ended September 30, 2024, compared to $7.5 million in the same period in the prior year.

Our interest income decreased by $2.6 million due to less interest income earned on investment securities during the three months ended September 30, 2024.

We recognized $16.6 million in interest expense for the three months ended September 30, 2024 and $15.4 million for the three months ended September 30, 2023.

Our interest expense in 2024 increased due to an increase of $1.0 million in non-cash interest expense related to the Royalty Financing Agreement that we entered into in May 2023.

1 unchanged sentence

We recognize foreign exchange results related to changes in these foreign currencies.

We recognized a net foreign currency loss, related to our borrowings from Hercules, the Royalty Financing Agreement and our cash and cash equivalents and investment securities as well as loans between entities within the uniQure group, of $1.0 million during the three months ended June 30, 2024, compared to a net gain of $0.4 million during the same period in 2023.

We recognized a net foreign currency gain, related to our borrowings from Hercules, the Royalty Financing Agreement and our cash and cash equivalents and investment securities as well as loans between entities within the uniQure group, of $7.6 million during the three months ended September 30, 2024, compared to a net gain of $0.2 million during the same period in 2023.

Income tax benefit

We recognized $0.9 million of deferred tax expense in the three months ended June 30, 2024 , and $0.2 million of deferred tax expense for the same period in 2023.

Comparison of the six months ended June 30, 2024 and 2023

The following table presents a comparison of our results of operations for the six months ended June 30, 2024 and 2023:

Six months ended June 30,

We recognized $0.0 million of deferred tax benefit in the three months ended September 30, 2024 , and $0.1 million of deferred tax benefit for the same period in 2023.

Comparison of the nine months ended September 30, 2024 and 2023

The following table presents a comparison of our results of operations for the nine months ended September 30, 2024 and 2023:

Nine months ended September 30,

(in thousands)

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Income tax (expense) / benefit

Our revenue for the six months ended June 30, 2024 and 2023 was as follows:

Six months ended June 30,

Our revenue for the nine months ended September 30, 2024 and 2023 was as follows:

Nine months ended September 30,

(in thousands)

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We recognize license revenues from CSL Behring, related to royalty payments owed on HEMGENIX® sales, when earned.

For the six months ended June 30, 2024, we recognized $3.1 million of license revenues, compared to $0.8 million for the same period in 2023.

For the nine months ended September 30, 2024, we recognized $5.2 million of license revenues, compared to $1.3 million for the same period in 2023.

Contract manufacturing revenues

We recognize contract manufacturing revenues related to contract manufacturing HEMGENIX® for CSL Behring.

Contract manufacturing revenues is realized when earned upon sales of HEMGENIX® drug product to CSL Behring.

We recognized $6.1 million contract manufacturing revenues in the six months ended June 30, 2024 , compared to $6.2 million for the same period in 2023.

We recognized contract manufacturing revenues related to contract manufacturing HEMGENIX® for CSL Behring prior to the Closing of the Lexington Transaction.

Contract manufacturing revenues were realized when earned upon sales of HEMGENIX® drug product to CSL Behring.

We recognized $6.1 million contract manufacturing revenues in the nine months ended September 30, 2024 , compared to $6.6 million for the same period in 2023.

Collaboration revenues

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Collaboration revenue related to these contracted services is recognized when the performance obligations are satisfied.

For the six months ended June 30, 2024 and 2023 we recognized $10.4 million and $0.7 million of collaboration revenue for CSL Behring, respectively.

The increase in collaboration revenue of $9.7 million in the six months ended June 30, 2024 compared to the same period in 2023 was primarily related to additional development and other services provided to CSL Behring in relation to the CSL Behring Agreement.

For the nine months ended September 30, 2024 and 2023 we recognized $10.6 million and $1.3 million of collaboration revenue for CSL Behring, respectively.

The increase in collaboration revenue of $9.3 million in the nine months ended September 30, 2024 compared to the same period in 2023 was primarily related to additional development and other services provided to CSL Behring in relation to the CSL Behring Agreement.

Cost of contract manufacturing

We incurred $16.3 million of cost of contract manufacturing related to the manufacture of HEMGENIX® in the six months ended June 30, 2024, compared to $3.8 million cost of contract manufacturing in the six months ended June 30, 2023.

The increase in cost of $12.5 million in 2024 is primarily related to expensing costs not expected to be recovered from selling HEMGENIX® under the terms of our development and commercial supply agreement with CSL Behring.

R&D expenses for the six months ended June 30, 2024 were $74.3 million, compared to $106.8 million for the same period in 2023.

We incurred $17.1 million of cost of contract manufacturing related to the manufacture of HEMGENIX® prior to the Closing of the Lexington Transaction in the nine months ended September 30, 2024, compared to $4.8 million cost of contract manufacturing in the nine months ended September 30, 2023.

The increase in cost of $12.3 million in 2024 is primarily related to expensing costs that could not be recovered from selling HEMGENIX® under the terms of our development and commercial supply agreement with CSL Behring.

R&D expenses for the nine months ended September 30, 2024 were $104.9 million, compared to $172.2 million for the same period in 2023.

Other research and development expenses are separately classified in the table below.

These other expenses are not allocated as they are deployed across multiple projects under development.

Six months ended June 30,

Nine months ended September 30,

(in thousands)

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Huntington’s disease (AMT-130)

In the six months ended June 30, 2024 and June 30, 2023, we incurred costs of $5.3 million and $8.0 million respectively.

In the nine months ended September 30, 2024 and September 30, 2023, we incurred costs of $9.8 million and $11.1 million respectively.

Our external costs for the development of AMT-130 were primarily related to the execution of our Phase I/II clinical trials in the U.S.

4 unchanged sentences

Temporal lobe epilepsy (AMT-260)

In the six months ended June 30, 2024 and June 30, 2023, we incurred costs of $4.3 million and $7.3 million respectively, for the development of AMT-260.

In the nine months ended September 30, 2024 and September 30, 2023, we incurred costs of $5.9 million and $12.0 million respectively, for the development of AMT-260.

In August 2023, the FDA cleared our IND application, and we continue to incur costs for the preparation of a Phase I clinical trial.

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On January 31, 2023, we entered into a global licensing agreement with Apic Bio for AMT-162.

In the six months ended June 30, 2024, we incurred $3.6 million of costs to initiate a Phase I/II clinical trial in 2024.

In the six months ended June 30, 2023 we incurred $10.6 million of expenses related to the transaction.

In the nine months ended September 30, 2024, we incurred $4.5 million of costs to initiate a Phase I/II clinical trial in 2024.

In the nine months ended September 30, 2023 we incurred $3.1 million of costs to initiate the Phase I/II clinical trial as well as $10.0 million related to the upfront consideration paid to Apic Bio for the global licensing rights to AMT-162.

Fabry disease (AMT-191)

In the six months ended June 30, 2024 and June 30, 2023, we incurred costs of $2.8 million and $1.5 million, respectively, related to our development of AMT-191.

In the nine months ended September 30, 2024 and September 30, 2023, we incurred costs of $3.6 million and $1.8 million, respectively, related to our development of AMT-191.

In November 2023, the FDA cleared the IND application, and we started incurring additional costs for the Phase I/II clinical trial preparation.

Preclinical programs & platform development

In the six months ended June 30, 2024 and June 30, 2023, 2023, we incurred $1.3 million and $4.1 million of costs, respectively, primarily related to our preclinical activities associated with product candidates for various other research programs and technology innovation projects.

In the nine months ended September 30, 2024 and September 30, 2023, 2023, we incurred $2.3 million and $7.2 million of costs, respectively, primarily related to our preclinical activities associated with product candidates for various other research programs and technology innovation projects.

Etranacogene dezaparvovec (AMT-060/061)

We transitioned activities related to the clinical trial and long-term follow-up of patients to CSL Behring in December 2022.

Direct research and development expenses related to clinical development and other regulatory activities and commercialization expenses incurred in the six months ended June 30, 2024 and June 30, 2023 are presented net of reimbursements due from CSL Behring and include settlement amounts from the transition.

Direct research and development expenses related to clinical development and other regulatory activities and commercialization expenses incurred in the nine months ended September 30, 2024 and September 30, 2023 are presented net of reimbursements due from CSL Behring and include settlement amounts from the transition.

Other research & development expenses

● We incurred $30.0 million in personnel and contractor-related expenses in the six months ended June 30, 2024 , compared to $36.5 million for the same period in 2023.

The decrease was primarily related to the Lexington facility being primarily dedicated to contract manufacturing during the six months ended June 30, 2024 compared to the facility having been dedicated to research and development activities in the prior period;

● We incurred $13.1 million in operating expenses and depreciation expenses related to our rented facilities in Amsterdam and Lexington, Massachusetts in the six months ended June 30, 2024 , compared to $14.5 million in the same period in 2023;

● We incurred $6.3 million in share-based compensation expenses in the six months ended June 30, 2024 , compared to $9.0 million for the same period in 2023.

The decrease was primarily a result of the reduction in expense from the restructuring that occurred in October 2023, and a decrease in the fair value of awards granted;

● We incurred $4.8 million of other expenses for the six months ended June 30, 2024 , compared to $5.7 million for the same period in 2023;

● We incurred $3.3 million in disposable costs in the six months ended June 30, 2024 , compared to $9.8 million for the same period in 2023.

The decrease was primarily a result of the reduction in expense from the restructuring that occurred in October 2023;

● We incurred $1.1 million of severance costs related to the Lexington Transaction in the six months ended June 30, 2024 with no such cost in the same period in 2023;

● We recognized a $1.6 million gain in the six months ended June 30, 2024 related to a decrease in the fair value of contingent consideration associated with the acquisition of uniQure France SAS, compared to $1.2 million loss related to an increase in fair value for the same period in 2023.

● We incurred $39.9 million in personnel and contractor-related expenses in the nine months ended September 30, 2024 , compared to $55.9 million for the same period in 2023.

The decrease was primarily related to the divestment of our commercial manufacturing activities as well as a reduction in expense from the restructuring that occurred in October 2023;

● We incurred $16.9 million in operating expenses and depreciation expenses related to our rented facilities in Amsterdam and Lexington, Massachusetts in the nine months ended September 30, 2024 , compared to $21.1 million in the same period in 2023.

The decrease was primarily related to the divestment of our commercial manufacturing activities;

● We incurred $7.7 million in share-based compensation expenses in the nine months ended September 30, 2024 , compared to $14.7 million for the same period in 2023.

● We incurred $7.5 million of other expenses for the nine months ended September 30, 2024 , compared to $6.8 million for the same period in 2023;

● We incurred $4.5 million of severance costs related to the divestment of our commercial manufacturing activities and the organizational restructuring in the nine months ended September 30, 2024 with no such cost in the same period in 2023;

● We incurred $4.4 million in disposable costs in the nine months ended September 30, 2024 , compared to $14.5 million for the same period in 2023.

The decrease was primarily related to the divestment of our commercial manufacturing activities as well as a reduction in expense from the restructuring that occurred in October 2023;

● We recognized a $2.0 million gain in the nine months ended September 30, 2024 related to a decrease in the fair value of contingent consideration associated with the acquisition of uniQure France SAS, compared to $15.4 million loss related to an increase in fair value for the same period in 2023.

Selling, general and administrative expenses

Selling, general and administrative expenses for the six months ended June 30, 2024 were $29.7 million, compared to $39.0 million for the same period in 2023.

● We incurred $11.9 million in personnel and contractor-related expenses in the six months ended June 30, 2024 , compared to $12.4 million in the same period in 2023.

The decrease was primarily related to the reduction in personnel and contractors as a result of the restructuring that occurred in October 2023;

● We incurred $6.8 million in share-based compensation expenses in the six months ended June 30, 2024 , compared to $7.8 million in the same period in 2023.

The decrease was primarily related to a decrease in the fair value of awards granted;

● We incurred $6.1 million in professional fees in the six months ended June 30, 2024 , compared to $5.7 million in the same period in 2023.

Selling, general and administrative expenses for the nine months ended September 30, 2024 were $41.3 million, compared to $57.1 million for the same period in 2023.

● We incurred $17.4 million in personnel and contractor-related expenses in the nine months ended September 30, 2024 , compared to $18.8 million in the same period in 2023.

The decrease was primarily related to the reduction in personnel and contractors as a result of the Lexington Transaction and the October 2023 and August 2024 reorganizations;

● We incurred $8.8 million in share-based compensation expenses in the nine months ended September 30, 2024 , compared to $12.9 million in the same period in 2023.

The decrease was primarily related to the Lexington Transaction, the October 2023 and August 2024 organizational restructurings, and a decrease in the fair value of the awards granted;

● We incurred $5.7 million in professional fees in the nine months ended September 30, 2024 , compared to $8.5 million in the same period in 2023.

We regularly incur accounting, audit and legal fees associated with operating as a public company.

1 unchanged sentence

There was a partial offset as in the prior period we incurred professional fees related to our global licensing agreement with Apic Bio;

● We incurred $2.9 million in other expenses in the six months ended June 30 , 2024, compared to $6.2 million in the same period in 2023.

The $3.2 million decrease was primarily related to a decrease in intellectual property fees as well as a reduction of expenses for information technology;

● We incurred $0.3 million of severance costs related to the Lexington Transaction in the six months ended June 30, 2024 with no such cost in the same period in 2023;

● We incurred nil in financial advisory fees in relation to our licensing transaction with CSL Behring in the six months ended June 30, 2024, compared to $3.8 million in 2023.

● We incurred $5.7 million in other expenses in the nine months ended September 30 , 2024, compared to $9.0 million in the same period in 2023.

The $3.3 million decrease was primarily related to a reduction of expenses for information technology;

● We incurred $1.4 million in intellectual property fees including registration and professional fees in the nine months ended September 30, 2024 compared to $3.3 million in the same period in 2023.

The decrease mainly related to an decrease in professional fees;

● We incurred $1.0 million of severance costs related to the Lexington Transaction and August 2024 organizational restructuring in the nine months ended September 30, 2024 with no such cost in the same period in 2023;

● We incurred nil in financial advisory fees in relation to our licensing transaction with CSL Behring in the nine months ended September 30, 2024, compared to $3.8 million in 2023.

Other items, net

We recognized $2.9 million in other income from payments received from European authorities to subsidize our research and development efforts in the Netherlands in the six months ended June 30, 2024, compared to $2.5 million for the same period in 2023.

Other items, net for the periods presented primarily related to income from the subleasing of our Amsterdam facility and expenses we incur in relation to the subleasing facility.

We recognized $1.2 million net gain resulting from the sale of the commercial manufacturing activities located in Lexington, MA in July 2024.

We recognized $1.5 million in net other expenses during the nine months ended September 30, 2024 (nil in same period in 2023) related to the purchase of HEMGENIX® from Genezen net of income from the sales of HEMGENIX® to CSL Behring, amortization of the intangible asset for our favorable supply terms under the CSA and credits from the release of liabilities related to expected net losses associated with minimum purchase commitments under the CSA .

We recognized $4.0 million in other income from payments received from European authorities to subsidize our research and development efforts in the Netherlands in the nine months ended September 30, 2024, compared to $3.9 million for the same period in 2023.

Other non-operating items, net

Our other non-operating items, net, for the six months ended June 30, 2024 and 2023 were as follows:

Six months ended June 30,

Our other non-operating items, net, for the nine months ended September 30, 2024 and 2023 were as follows:

Nine months ended September 30,

(in thousands)

1 unchanged sentence

Interest expense

Foreign currency losses, net

Foreign currency gains / (losses), net

Total non-operating expense, net

We recognize interest income associated with our cash and cash equivalents and investment securities.

We recognized $12.3 million in interest income in the six months ended June 30, 2024, compared to $4.9 million in the same period in the prior year.

Our interest income increased by $7.4 million due to the interest income earned on investment securities as well as cash on hand during the six months ended June 30, 2024.

We recognized $32.3 million in interest expense for the six months ended June 30, 2024 and $10.4 million for the six months ended June 30, 2023.

We recognize interest income associated with our cash and cash equivalents, investment securities and convertible note.

We recognized $17.2 million in interest income in the nine months ended September 30, 2024, compared to $12.4 million in the same period in the prior year.

Our interest income increased by $4.8 million due to the interest income earned on investment securities as well as cash on hand during the nine months ended September 30, 2024.

We recognized $48.9 million in interest expense for the nine months ended September 30, 2024 and $25.8 million for the nine months ended September 30, 2023.

Our interest expense in 2024 mainly increased due to an increase of $22.7 million in non-cash interest expense related to the Royalty Financing Agreement that we entered into in May 2023.

1 unchanged sentence

We recognize foreign exchange results related to changes in these foreign currencies.

We recognized a net foreign currency loss, related to our borrowings from Hercules, the Royalty Financing Agreement and our cash and cash equivalents and investment securities as well as loans between entities within the uniQure group, of $2.1 million during the six months ended June 30, 2024, compared to a net loss of $2.0 million during the same period in 2023.

We recognized a net foreign currency gain, related to our borrowings from Hercules, the Royalty Financing Agreement and our cash and cash equivalents and investment securities as well as loans between entities within the uniQure group, of $5.4 million during the nine months ended September 30, 2024, compared to a net loss of $1.8 million during the same period in 2023.

Income tax benefit

We recognized $1.6 million of deferred tax expense in the six months ended June 30, 2024 , and $1.0 million of deferred tax benefit for the same period in 2023 .

We recognized $1.6 million of deferred tax expense in the nine months ended September 30, 2024 , and $1.1 million of deferred tax benefit for the same period in 2023 .

Financial Position, Liquidity and Capital Resources

As of June 30, 2024, we had cash and cash equivalents, restricted cash and investment securities of $527.6 million.

As of September 30, 2024, we had cash and cash equivalents, restricted cash and investment securities of $436.7 million.

Until such time, if ever, as we can generate substantial cash flows from successfully commercializing our proprietary product candidates, we expect to finance our cash needs through a combination of equity offerings, debt financings, collaborations, strategic alliances and marketing, distribution, and licensing arrangements.

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Our material cash requirements include the following contractual and other obligations:

As of June 30, 2024, we had an outstanding loan amount owed to Hercules Capital, Inc.

As of September 30, 2024, we had an outstanding loan amount owed to Hercules Capital, Inc.

(“Hercules”) for an aggregate principal amount of $50.0 million.

On July 19, 2024, in connection with the closing of the Lexington Transaction, we repaid $50.0 million of the $100.0 million of principal outstanding as well as $3.1 million in end-of-term fees.

Future interest payments and financing fees associated with the loan after the $50.0 million payment in July total $24.4 million, with $10.6 million payable within 12 months.

We are contractually required to repay the remaining $50.0 million in full in January 2027.

Future interest payments and financing fees associated with the loan total $18.2 million, with $6.5 million payable within 12 months.

We are contractually required to repay the $50.0 million in full in January 2027.

We entered into lease arrangements for facilities, including corporate, manufacturing and office space.

As of June 30, 2024, we had fixed lease payment obligations of $48.5 million, with $8.5 million payable within 12 months.

As of September 30, 2024, we had fixed lease payment obligations of $25.3 million, with $4.3 million payable within 12 months.

Following the closing of the Lexington Transaction on July 22, 2024 we assigned our lease for the Lexington Facility to Genezen.

This will reduce our fixed lease payment obligations by $22.6 million, including $4.0 million payable within 12 months.

This reduced our fixed lease payment obligations by $21.8 million, including $4.4 million payable within 12 months.

We continue to guarantee such payments until the end of the lease term in May 2029.

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In September 2023, we made a payment of EUR 10.0 million ($10.6 million) to the former shareholders of uniQure France SAS following the FDA’s clearance of the IND application for AMT-260.

As of June 30, 2024, our remaining commitment amounts include a EUR 30.0 million ($32.1 million) milestone payment due upon treating the first patient in a Phase I/II clinical trial for AMT-260 and EUR 160.0 million ($171.5 million) in potential milestone payments associated with Phase III development and the approvals of AMT-260 in the U.S.

As of September 30, 2024, our remaining commitment amounts include a EUR 30.0 million ($33.5 million) milestone payment due upon treating the first patient in a Phase I/II clinical trial for AMT-260 and EUR 160.0 million ($178.6 million) in potential milestone payments associated with Phase III development and the approvals of AMT-260 in the U.S.

and European Union.

The timing of achieving these milestones and consequently the timing of payments, as well as whether the milestone will be achieved at all, is generally uncertain.

These payments are owed in euro and have been translated at the foreign exchange rate as of June 30, 2024, of $1.07/€1.00.

As of June 30, 2024, we expect these obligations will become payable between 2024 and 2033.

The timing of achieving these milestones and consequently the timing of payments, as well as whether the milestones will be achieved at all, is generally uncertain.

These payments are owed in euro and have been translated at the foreign exchange rate as of September 30, 2024, of $1.12/€1.00.

As of September 30, 2024, we expect these obligations will become payable between 2024 and 2033.

If and when due, up to 25% of the milestone payments can be settled with our ordinary shares.

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We also owe payments to a financial advisor related to certain payments we will collect under the CSL Behring Agreement.

The table below summarizes our consolidated cash flow data for the six months ended:

Six months ended June 30,

Commitments related to the CSA and DMSA with Genezen

Our CSA with Genezen requires us to take or pay contract manufacturing services for HEMGENIX® during a three-year period ending July 22, 2027.

As of September 30, 2024, our remaining minimum purchase commitments to Genezen amount to $39.9 million, with $14.7 million to be paid within the next 12 months.

CSL Behring’s minimum purchase commitments to us over the next 12 months are $11.9 million.

Our DMSA with Genezen requires us to take or pay contract development services during a three-year period ending July 22, 2027.

As of September 30, 2024 our remaining minimum purchase commitments amount to $13.3 million with $3.5 million to be paid within the next 12 months.

The table below summarizes our consolidated cash flow data for the nine months ended September 30, 2024 and 2023:

Nine months ended September 30,

(in thousands)

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Net cash used in operating activities

Net cash generated from investing activities

Net cash generated from financing activities

Net cash generated from / (used in) investing activities

Net cash (used in) / generated from financing activities

Foreign exchange impact

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We continue to incur losses in the current period.

We recorded a net loss of $56.3 million and $121.9 million in the three and six months ended June 30, 2024, respectively, compared to a net loss of $68.5 million and $145.7 million during the same period in 2023.

As of June 30, 2024, we had an accumulated deficit of $1,012.3 million.

We recorded a net loss of $44.4 million and $166.3 million in the three and nine months ended September 30, 2024, respectively, compared to a net loss of $89.6 million and $235.3 million during the same periods in 2023.

As of September 30, 2024, we had an accumulated deficit of $1,056.7 million.

Sources of liquidity

From our first institutional venture capital financing in 2006 through the current period, we funded our operations primarily through private and public placements of equity securities, debt securities, payments from our collaboration partners as well as from selling a portion of royalties due from our collaboration partner CSL Behring.

We have collected $100.0 million in July 2023 related to the first sale milestone of HEMGENIX® in the U.S., and are eligible to receive additional milestone payments, as well as royalties (to the extent not owed to settle the liability from royalty financing) on net sales of HEMGENIX®.

We collected $100.0 million in July 2023 related to the first sale milestone of HEMGENIX® in the U.S., and are eligible to receive additional milestone payments, as well as royalties (to the extent not owed to settle the liability from royalty financing) on net sales of HEMGENIX®.

On May 12, 2023 we and Hercules amended the 2021 Restated Facility.

The 2023 Amended Facility extended the maturity date and interest-only period from December 1, 2025 to January 5, 2027.

On June 28, 2024 we amended the 2023 Amended Facility and repaid $50.0 million of the principal outstanding at closing of the Lexington Transaction on July 22, 2024.

In connection with the closing of the Lexington Transaction on July 22, 2024 we amended the 2023 Amended Facility and repaid $50.0 million of the principal.

We are required to repay the remaining principal balance of $50.0 million on the Maturity Date.

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Net cash used in operating activities

Net cash used in operating activities was $93.3 million for the six months ended June 30, 2024 and consisted of net loss of $121.9 million adjusted for non-cash items, including depreciation and amortization expense of $5.3 million, amortization of the discount on investment securities of $6.7 million, share-based compensation expense of $14.1 million, $24.8 million of interest expense related to the Royalty Financing Agreement, changes in the fair value of contingent consideration of $1.6 million, a change in deferred taxes of $1.6 million, a provision for inventory write-downs of $5.8 million and unrealized foreign exchange losses of $2.9 million.

Net cash used in operating activities was $129.9 million for the nine months ended September 30, 2024 and consisted of net loss of $166.3 million adjusted for non-cash items, including depreciation and amortization expense of $8.3 million, amortization of the discount on investment securities of $8.5 million, share-based compensation expense of $17.5 million, $37.7 million of interest expense related to the Royalty Financing Agreement, a change in deferred taxes of $1.6 million, changes in the fair value of contingent consideration of $2.0 million, a provision for inventory write-downs of $6.3 million and unrealized foreign exchange gains of $5.7 million.

Net cash used in operating activities also included unfavorable changes in operating assets and liabilities of $16.2 million.

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There was an increase in inventory balances of $3.9 million.

There was a net decrease in accounts payable, accrued expenses, other liabilities, and operating leases of $9.5 million, primarily related to a decrease of $5.2 million from personnel related accruals.

Net cash used in operating activities was $135.3 million for the six months ended June 30, 2023 and consisted of net loss of $145.7 million adjusted for non-cash items, including depreciation and amortization expense of $5.1 million, amortization of the discount on investment securities of $1.8 million, share-based compensation expense of $17.0 million, $3.2 million of interest expense related to the Royalty Financing Agreement, a change in deferred taxes of $1.0 million, changes in the fair value of contingent consideration of $1.2 million and unrealized foreign exchange losses of $0.9 million.

Net cash generated from operating activities also included unfavorable changes in operating assets and liabilities of $15.1 million.

There was a net decrease in accounts receivable, prepaid expenses, and other current assets and receivables of $0.8 million.

There was a net decrease in accounts payable, accrued expenses, other liabilities, and operating leases of $6.6 million.

Net cash used in operating activities was $96.4 million for the nine months ended September 30, 2023 and consisted of net loss of $235.3 million adjusted for non-cash items, including depreciation and amortization expense of $7.7 million, amortization of the premium/discount on investment securities of $6.5 million, share-based compensation expense of $28.1 million, changes in the fair value of contingent consideration of $15.4 million, unrealized foreign exchange losses of $3.1 million, $14.9 million of interest expense related to the Royalty Financing Agreement and a change in deferred taxes of $1.1 million.

Net cash used in operating activities also included favorable changes in operating assets and liabilities of $77.0 million.

There was a net decrease in accounts receivable, prepaid expenses, and other current assets and receivables of $96.6 million, primarily related to the collection of the $100.0 million milestone due from CSL Behring in July 2023.

There was an increase in inventory balances of $8.7 million.

These changes also relate to a net decrease in accounts payable, accrued expenses, other liabilities, and operating leases of $12.6 million, primarily related to a decrease of $4.9 million from personnel related accruals.

Net cash generated from investing activities

In the six months ended June 30, 2024, we generated $141.9 million in our investing activities compared to generating $48.8 million for the same period in 2023.

Six months ended June 30,

There was a net decrease in accounts payable, accrued expenses, other liabilities, and operating leases of $10.8 million, primarily related to a decrease of $4.8 million in accounts payable and a decrease of $6.0 million related to various accruals.

Net cash used in operating activities also includes a payment for a contingent consideration milestone of $1.9 million.

Net cash generated from / (used in) investing activities

In the nine months ended September 30, 2024, we generated $189.6 million in our investing activities compared to using $265.2 million for the same period in 2023.

Nine months ended September 30,

(in thousands)

Proceeds from maturity of investment securities

Investment in investment securities

Proceeds from maturity of debt securities

Investment in debt securities

Divestment of commercial manufacturing facility

Capital expenditures - Amsterdam site

Capital expenditures - Lexington site

Net cash generated from investing activities

During the six months ended June 30, 2024, we received $297.8 million from the repayment of previous investments into euro and U.S.

dollar denominated government bonds ($52.2 million for six months ended June 30, 2023).

During the six months ended June 30, 2024, we invested $152.9 million of our cash on hand into euro and dollar denominated government bonds (nil for the six months ended June 30, 2023).

We invested $1.5 million and $1.4 million, respectively, into our Amsterdam, Netherlands and Lexington, Massachusetts sites during the six months ended June 30, 2024, compared to $1.3 million and $2.1 million for the same period in 2023.

Net cash generated from financing activities

In the six months ended June 30, 2024, we generated $0.1 million from financing activities compared to $370.3 million for the same period in 2023.

Six months ended June 30,

Net cash generated from / (used in) investing activities

During the nine months ended September 30, 2024, we received $480.8 million from the repayment of previous investments into euro and U.S.

dollar denominated government bonds ($106.3 million for nine months ended September 30, 2023).

During the nine months ended September 30, 2024, we invested $279.6 million of our cash on hand into euro and dollar denominated government bonds ($366.4 for the nine months ended September 30, 2023).

During the nine months ended September 30, 2024 we incurred a cash outflow of $8.3 million related to the divestment of our commercial manufacturing facility.

We invested $1.7 million and $1.6 million, respectively, into our Amsterdam, Netherlands and Lexington, Massachusetts sites during the nine months ended September 30, 2024, compared to $2.2 million and $3.0 million for the same period in 2023.

Net cash generated from / (used in) financing activities

In the nine months ended September 30, 2024, we used $53.0 million in financing activities compared to generating $362.7 million for the same period in 2023.

Nine months ended September 30,

(in thousands)

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Proceeds from issuance of ordinary shares related to employee stock option and purchase plans

Net cash generated from financing activities

Contingent consideration payment

Repayment of long-term debt

Net cash (used in) / generated from financing activities

In June 2023, we received $370.1 million net proceeds from the Royalty Financing Agreement.

During the six months ended June 30, 2024, we received $0.1 million from the exercise of options to purchase ordinary shares in relation to our 2014 Plans, compared to $0.2 million for the same period in 2023.

During the nine months ended September 30, 2024, we received $0.1 million from the exercise of options to purchase ordinary shares in relation to our 2014 Plans, compared to $0.3 million for the same period in 2023.

In September 2023, following the FDA’s clearance of the IND application for AMT-260, we made a contingent consideration payment of $9.5 million to the former shareholders of uniQure France SAS related to a contractually defined milestone, of which $7.6 million was classified as cash flows from financing activities and $1.9 million was classified as a net cash flow used in operating activities.

We made nil payments for the period ended September 30, 2024.

During the nine months ended September 30, 2024 we repaid $50.0 million of the $100.0 million of principal outstanding of the Hercules debt as well as $3.1 million in end-of-term fees.

Funding requirements

Our future capital requirements, following the closing of the Lexington Transaction on July 22, 2024, will depend on many factors, including but not limited to:

Our future capital requirements will depend on many factors, including but not limited to:

● contractual milestone payments and royalties we might be owed in accordance with the CSL Behring Agreement;

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis