Regenxbio (RGNX) shares plummeted 5.25% in pre-market trading on Thursday, despite the company reporting better-than-expected third-quarter results. The biotechnology firm's financial performance revealed a mix of positive developments and ongoing challenges that have left investors cautious.
For the quarter ended September 30, Regenxbio reported a revenue of $29.73 million, marking a 22.9% increase year-over-year and surpassing analyst expectations of $24.13 million. The company's earnings per share (EPS) showed a loss of $1.20, which was less severe than the anticipated loss of $1.31 per share. However, the company still recorded a substantial net loss of $61.941 million for the quarter.
Despite the revenue beat, investors appear to be focusing on Regenxbio's high operating expenses, which reached $82.144 million in Q3. This significant spending, coupled with the continued net losses, may be contributing to the stock's decline. The company projects its current cash, cash equivalents, and marketable securities of $302.0 million will fund operations into early 2027, but the path to profitability remains a concern for shareholders. As Regenxbio continues to invest heavily in its pipeline, the market reaction suggests that investors are weighing the company's long-term potential against its near-term financial performance.
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