Earnings

Yarrow Reports $9.7 Million Third-Quarter Loss, Extends Cash Runway Into 2030

The Tip Desk · November 12, 2026 · 3 min read

Third-quarter 2026 R&D expenses were $5.3 million and net loss was $9.7 million. Cash and cash equivalents were $268.9 million as of September 30, 2026, after a $172.5 million public offering.

Yarrow Bioscience, Inc. (YARW), a clinical-stage biotechnology company developing therapies for autoimmune thyroid diseases, reported research and development expenses of $5.3 million and a net loss of $9.7 million for the third quarter ended September 30, 2026. The company completed an underwritten public offering that lifted cash and cash equivalents to $268.9 million as of September 30, 2026, and said the balance is expected to fund operations into 2030.

The September 2026 offering sold 6,634,615 shares of common stock, including full exercise of the underwriters’ option, for aggregate gross proceeds of approximately $172.5 million before underwriting discounts, commissions and other expenses. The company said the financing further strengthens its financial position to advance clinical development of YB-101.

That cash position extended a July statement that previously announced private financings totaling about $200 million were expected to fund operations into 2028. Yarrow now expects cash to last through completion of the DIRECTION-GD trial and preparatory work for its next planned thyroid eye disease study.

Cash and cash equivalents were $100.0 million at December 31, 2025. Accrued expenses fell to $4.4 million at September 30, 2026 from $70.0 million at year-end 2025. No convertible preferred shares were outstanding at September 30, 2026, compared with 14,516,188 shares at December 31, 2025. Common stock outstanding was approximately 11.5 million shares, plus pre-funded warrants to purchase about 23.7 million additional shares.

For the three months ended September 30, 2026, research and development expenses were $5.3 million and general and administrative expenses were $5.5 million. Net loss was $9.7 million, or $0.43 a share, on 22.6 million weighted-average shares.

Enrollment continued in the Phase 2a portion of DIRECTION-GD after the company dosed its first patient in that part of the trial. DIRECTION-GD is a Phase 2a/2b randomized, blinded, placebo-controlled study of YB-101, a potential first-in-class anti-thyroid stimulating hormone receptor antibody, in patients with Graves’ disease, with or without concomitant thyroid eye disease. The Phase 2a portion is a proof-of-concept trial versus placebo aiming to enroll 32 patients across four cohorts and evaluate safety, pharmacokinetics, pharmacodynamics and efficacy through 24 weeks, including the percentage of patients who are euthyroid and off anti-thyroid drugs. Topline results from Phase 2a are expected in the second half of 2027. The Phase 2b portion, a dose-finding trial expected to enroll about 200 patients, is anticipated to begin in the first half of 2028.

YB-101 has received Fast Track Designation from the U.S. Food and Drug Administration. Licensing partner Changchun GeneScience Pharmaceutical Co., Ltd. continues to advance YB-101, also known as GenSci098, in Greater China. Data from GenSci’s ongoing Phase 1 multiple ascending dose trial in thyroid eye disease are anticipated in the second half of 2027 and are expected to inform the company’s global TED development plans.

President and Chief Executive Officer Rebecca V. Frey said the company remains focused on executing DIRECTION-GD as it looks ahead to Phase 2a topline results and GenSci’s Phase 1 MAD data, both of which it anticipates in the second half of 2027.