Silexion Therapeutics Corp. (Exact name of registrant as specified in its charter) Annual Report (Form 10-K) for the fiscal year ended December 31, 2024
Silexion Therapeutics Corp, a biotechnology company, filed its annual report for the fiscal year ended December 31, 2024. The company reported a net loss of $X million, with total revenues of $Y million and total expenses of $Z million. The company’s cash and cash equivalents decreased by $X million to $Y million, and its total assets decreased by $Z million to $W million. The company’s financial performance was impacted by the costs associated with its clinical trials and research and development activities. Despite the net loss, the company reported a significant increase in its cash reserves, which it plans to use to fund its ongoing clinical trials and future research and development activities.
Overview of Silexion Therapeutics
Silexion Therapeutics is a clinical-stage biotechnology company focused on developing treatments for cancers driven by the KRAS gene. The KRAS gene plays a key role in regulating cell division, and when mutated, can lead to the development of certain types of cancer. Silexion’s lead product candidate, SIL204, is an RNA-interference therapy that aims to silence the KRAS oncogene as a first-line treatment for locally advanced pancreatic cancer.
Financial Performance
In the year ended December 31, 2024, Silexion reported a net loss of $16.5 million, up from a net loss of $5.1 million the prior year. This increase was driven by higher research and development (R&D) expenses of $5.8 million, up from $3.7 million, as well as a significant increase in general and administrative (G&A) costs to $6.8 million, compared to $1.0 million in 2023.
The rise in R&D spending was mainly due to an increase in payroll and share-based compensation expenses as the company expanded its team to advance the SIL204 program. G&A costs grew sharply due to higher payroll, share-based compensation, and professional services related to Silexion becoming a public company.
The company also incurred $3.9 million in net financial expenses in 2024, up from $0.4 million the prior year. This was primarily due to a one-time non-cash loss associated with the business combination transaction that took place in August 2024, when Silexion merged with a special purpose acquisition company (SPAC) to become a publicly-traded entity.
Table 1: Key Financial Metrics
| Metric | 2024 | 2023 |
|---|---|---|
| Net Loss | $16.5 million | $5.1 million |
| R&D Expenses | $5.8 million | $3.7 million |
| G&A Expenses | $6.8 million | $1.0 million |
| Net Financial Expenses | $3.9 million | $0.4 million |
Liquidity and Capital Resources
As of December 31, 2024, Silexion had $1.2 million in cash and cash equivalents on its balance sheet. The company has financed its operations to date through a variety of sources, including private equity financings, grants, and convertible debt prior to the business combination.
After going public, Silexion has continued to raise capital through several avenues:
PIPE Financing: In connection with the business combination, the company raised $2.0 million through a private investment in public equity (PIPE) financing.
Equity Line of Credit (ELOC): Silexion entered into a $15.0 million equity line of credit agreement, from which it has drawn $3.1 million as of the end of 2024.
Public Offering: In January 2025, the company completed a public offering of ordinary shares and warrants, raising gross proceeds of approximately $5.0 million.
Warrant Exercise: Following the public offering, Silexion raised an additional $3.3 million through an induced exercise of the warrants issued in the offering.
These capital raises have provided Silexion with the funds needed to advance its lead drug candidate, SIL204, through clinical development and support its overall operations as it transitions to a public company. However, the company expects to continue incurring significant expenses, particularly for R&D, as it works to develop SIL204 and potentially expand its pipeline.
Strengths and Weaknesses
Strengths:
- Promising lead drug candidate, SIL204, targeting a well-validated oncogenic driver (KRAS) in a high-need cancer indication (pancreatic cancer)
- Experienced management team with expertise in oncology drug development
- Successful transition to becoming a publicly-traded company, providing access to capital markets
- Diversified funding sources, including equity financings, grants, and an equity line of credit
Weaknesses:
- Significant historical and ongoing losses, with no revenue generated to date
- Heavy reliance on external financing to fund operations, with limited cash reserves
- Early-stage pipeline, with SIL204 as the sole clinical-stage asset
- Potential challenges associated with being a small, newly public company, including increased regulatory and reporting requirements
Outlook and Future Prospects
Silexion faces both opportunities and challenges as it looks to the future. On the positive side, the company’s lead drug candidate, SIL204, has shown promise in preclinical studies and the company plans to initiate a clinical trial for the treatment of locally advanced pancreatic cancer. If successful, SIL204 could address a significant unmet medical need in a deadly form of cancer.
However, Silexion will need to continue investing heavily in R&D to advance SIL204 and potentially expand its pipeline. The company’s ability to do so will depend on its access to additional financing, either through equity raises, debt financing, or non-dilutive sources like grants. Silexion’s status as a newly public, small-cap company may present challenges in raising capital and attracting investor interest compared to larger, more established biotechnology firms.
Additionally, as a company operating in Israel, Silexion faces certain geopolitical and regulatory risks that could impact its business, such as potential changes to government coverage for terrorist-related damages and uncertainties around enforcing U.S. judgments in Israel.
Overall, Silexion has made important strides in transitioning to a public company and advancing its lead drug candidate. However, the company will need to carefully manage its resources and navigate the challenges of drug development and commercialization in order to realize the full potential of its KRAS-targeting technology and deliver value to shareholders.
