rna-20250331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_____________________________________________________

FORM 10-Q

_____________________________________________________


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2025


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-39321

_____________________________________________________

Avidity Biosciences, Inc.

(Exact name of registrant as specified in its charter)

_____________________________________________________


Delaware						46-1336960
(State or other jurisdiction of incorporation or organization)						(IRS Employer Identification No.)

10578 Science Center Drive, Suite 125 San Diego, California						92121
(Address of principal executive offices)						(Zip Code)

(858) 401-7900

(Registrant’s telephone number, including area code)

_____________________________________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.0001 par value	RNA	The Nasdaq Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	x	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	o
		Emerging growth company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of April 24, 2025, the registrant had 120,538,359 shares of common stock outstanding.


PART I – FINANCIAL INFORMATION

Item 1.	Condensed Consolidated Financial Statements (unaudited)	3
	Condensed Consolidated Balance Sheets (unaudited)	3
	Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited)	4
	Condensed Consolidated Statements of Stockholders' Equity (unaudited)	5
	Condensed Consolidated Statements of Cash Flows (unaudited)	6
	Notes to Condensed Consolidated Financial Statements (unaudited)	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27
Item 4.	Controls and Procedures	27

PART II – OTHER INFORMATION

Item 1.	Legal Proceedings	28
Item 1A.	Risk Factors	28
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 3.	Defaults Upon Senior Securities	28
Item 4.	Mine Safety Disclosures	28
Item 5.	Other Information	29
Item 6.	Exhibits	30

SIGNATURES		31


	March 31, 2025		December 31, 2024
	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	254,203	$	219,868
Marketable securities	1,125,674		1,281,629
Prepaid and other assets	55,098		40,793
Total current assets	1,434,975		1,542,290
Property and equipment, net	15,637		12,670
Restricted cash	2,795		2,795
Right-of-use assets	4,929		5,619
Other assets	739		521
Total assets	$	1,459,075	$	1,563,895
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities	$	54,189	$	69,524
Accrued compensation	12,814		3,663
Lease liabilities, current portion	3,884		3,844
Deferred revenue, current portion	13,978		20,987
Total current liabilities	84,865		98,018
Lease liabilities, net of current portion	2,090		2,957
Deferred revenue, net of current portion	43,397		37,961
Total liabilities	130,352		138,936
Commitments and contingencies (Note 7)
Stockholders’ equity:
Common stock, $0.0001 par value; authorized shares – 400,000; issued and outstanding shares – 120,512 and 119,893 at March 31, 2025 and December 31, 2024, respectively	12		12
Additional paid-in capital	2,334,784		2,315,111
Accumulated other comprehensive income	2,766		2,902
Accumulated deficit	(1,008,839)		(893,066)
Total stockholders’ equity	1,328,723		1,424,959
Total liabilities and stockholders’ equity	$	1,459,075	$	1,563,895


	Three Months Ended March 31,
	2025		2024
Collaboration revenue	$	1,573	$	3,543
Operating expenses:
Research and development	99,490		66,832
General and administrative	33,600		13,898
Total operating expenses	133,090		80,730
Loss from operations	(131,517)		(77,187)
Other income (expense):
Interest income	16,179		8,433
Other expense	(435)		(101)
Total other income	15,744		8,332
Net loss	$	(115,773)	$	(68,855)
Net loss per share, basic and diluted	$	(0.90)	$	(0.79)
Weighted-average shares outstanding, basic and diluted	129,232		87,212
Other comprehensive income (loss):
Net unrealized losses on marketable securities	(170)		(589)
Foreign currency translation adjustment	34		—
Comprehensive loss	$	(115,909)	$	(69,444)


	Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss)		Accumulated Deficit		Total Stockholders’ Equity
	Shares	Amount
Balance at December 31, 2024	119,893	$	12	$	2,315,111	$	2,902	$	(893,066)	$	1,424,959
Issuance of common stock upon exercise of stock options	114	—		1,937		—		—		1,937



Issuance of common stock in connection with vesting of restricted stock units and performance stock units	505	—		—		—		—		—
Stock-based compensation	—	—		17,736		—		—		17,736
Net loss	—	—		—		—		(115,773)		(115,773)
Other comprehensive loss	—	—		—		(136)		—		(136)
Balance at March 31, 2025	120,512	$	12	$	2,334,784	$	2,766	$	(1,008,839)	$	1,328,723




Balance at December 31, 2023	79,275	$	8	$	1,071,395	$	125	$	(570,764)	$	500,764
Issuance of common stock upon exercise of stock options	541	—		3,896		—		—		3,896
Issuance of common stock in public offering, net of issuance costs of $143	418	—		5,594		—		—		5,594
Issuance of common stock in a private placement, net of issuance costs of $12,821	15,225	2		238,386		—		—		238,388
Issuance of pre-funded warrants in a private placement, net of issuance costs of $7,605	—	—		141,395		—		—		141,395
Issuance of common stock in connection with vesting of restricted stock units	135	—		—		—		—		—
Stock-based compensation	—	—		10,306		—		—		10,306
Net loss	—	—		—		—		(68,855)		(68,855)
Other comprehensive loss	—	—		—		(589)		—		(589)
Balance at March 31, 2024	95,594	$	10	$	1,470,972	$	(464)	$	(639,619)	$	830,899


	March 31,
	2025	2024
Common stock options issued and outstanding	14,081	13,485
Restricted stock units	2,630	1,415
Performance stock units	810	750
ESPP shares pending issuance	61	85
Total	17,582	15,735


			Fair Value Measurements Using
As of March 31, 2025	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)


Marketable securities:
U.S. Treasury securities	$	1,125,674	$	1,125,674	$	—	$	—



Total	$	1,125,674	$	1,125,674	$	—	$	—


			Fair Value Measurements Using
As of December 31, 2024	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash equivalents:
U.S. Treasury securities	$	7,439	$	7,439	$	—	$	—
Marketable securities:
U.S. Treasury securities	1,281,139		1,281,139		—		—

Negotiable certificates of deposit	490		—		490		—

Total	$	1,289,068	$	1,288,578	$	490	$	—


As of March 31, 2025	Maturity (in years)	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
U.S. Treasury securities	1 or less	$	834,073	$	1,700	$	(59)	$	835,714



U.S. Treasury securities	1 - 2	288,870		1,156		(66)		289,960


Total		$	1,122,943	$	2,856	$	(125)	$	1,125,674


	Less Than 12 Months				12 Months or Greater				Total
As of March 31, 2025	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. Treasury securities	$	262,348	$	(125)	$	—	$	—	$	262,348	$	(125)


Total	$	262,348	$	(125)	$	—	$	—	$	262,348	$	(125)


	March 31, 2025		December 31, 2024
Laboratory equipment	$	14,702	$	14,180
Computers and software	262		261
Office furniture and equipment	1,979		1,979
Leasehold improvements	288		288
Construction in process	7,188		3,959
Property and equipment, gross	24,419		20,667
Less accumulated depreciation	(8,782)		(7,997)
Total property and equipment, net	$	15,637	$	12,670


	Number of Options	Weighted- Average Exercise Price Per Share
Outstanding balance at December 31, 2024	12,635	$	19.19
Granted	1,707	31.44
Exercised	(114)	16.90
Forfeited/expired	(147)	21.71
Outstanding balance at March 31, 2025	14,081	$	20.67


	Number of Shares	Weighted-Average Grant Date Fair Value
Issued and unvested balance at December 31, 2024	2,111	$	24.54
Granted	875	31.44
Vested	(318)	15.27
Forfeited	(38)	27.02
Issued and unvested balance at March 31, 2025	2,630	$	27.92


	Number of Shares	Weighted-Average Grant Date Fair Value
Issued and unvested balance at December 31, 2024	925	$	35.80
Granted	73	31.42
Vested	(188)	6.57
Forfeited	—	—
Issued and unvested balance at March 31, 2025	810	$	42.17


Balance at December 31, 2024	$	58,948
Revenue recognized that was included in the balance at the beginning of the period	(1,573)
Balance at March 31, 2025	$	57,375


Balance at December 31, 2023	$	69,263
Revenue recognized that was included in the balance at the beginning of the period	(2,961)
Balance at March 31, 2024	$	66,302


	March 31, 2025		December 31, 2024

Prepaid assets	$	18,516	$	12,571
Interest receivable and other assets	36,582		28,222
Total prepaid and other assets	$	55,098	$	40,793


	March 31, 2025		December 31, 2024
Accounts payable	$	6,633	$	8,461
Accrued non-clinical liabilities	13,107		17,226
Accrued manufacturing and technical development	29,316		35,680
Accrued clinical liabilities	5,133		8,157
Total accounts payable and accrued liabilities	$	54,189	$	69,524


	Options
	Three Months Ended March 31,
	2025	2024
Risk-free interest rate	4.1% - 4.5%	3.9% - 4.3%
Expected volatility	75% - 76%	79% - 80%
Expected term (in years)	6.0 - 6.1	6.0 - 6.1
Expected dividend yield	—%	—%


	March 31, 2025		December 31, 2024
Cash, cash equivalents and marketable securities	$	1,379,877	$	1,501,497


	Three Months Ended March 31,				Change
	2025		2024
Revenue	$	1,573	$	3,543	$	(1,970)
Research and development expenses	99,490		66,832		32,658
General and administrative expenses	33,600		13,898		19,702
Other income	15,744		8,332		7,412

SEC Form 10-Q filed by Avidity Biosciences Inc.