Eikon Therapeutics, Inc.
For the period ended Jun 30, 2026. Filed Aug 13, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 13, 2026
EIKN$5.90+1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-11.
0001193125-26-216791
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-13.
0001193125-26-349185
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 137 previous paragraphs and 140 current paragraphs.
92 unchanged; 21 reworded; 25 added; 20 removed; 4 previous and 2 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (25)
Current report
Clinical Updates
Current report
EIK1001 is a systemically administered TLR7/8 dual-agonist designed to activate innate and adaptive immune anti-tumor responses. It achieves this by enhancing antigen presentation by both myeloid and plasmacytic dendritic cells, thereby stimulating the release of cytokines and amplifying the immune response. Historically, TLR product candidates used to stimulate cancer-specific immunity were administered intra-tumorally, primarily to avoid stimulating adverse cytokine release syndrome events believed to be associated with their systemic administration. We have identified a dose and schedule designed to allow for systemic administration of EIK1001 to enable the agent to access the lymph nodes and spleen, thereby activating the innate immune system more broadly, and that we believe will not undermine the overall tolerability of this immune agonist.
Current report
We are currently conducting an ongoing open-label Phase 2 trial evaluating the safety and tolerability of EIK1001 in combination with both pembrolizumab and histology appropriate chemotherapy for the treatment of patients with non-small cell lung cancer, or NSCLC, which we refer to as TeLuRide-005. We completed enrollment in TeLuRide-005 in the first quarter of 2026.
Current report
On May 30, 2026, we presented updated clinical safety, tolerability and preliminary efficacy data from TeLuRide-005 at the 2026 American Society of Clinical Oncology, or ASCO, Annual Meeting. The safety data cutoff was March 17, 2026 and the efficacy data cutoff was May 4, 2026. We believe these data provide preliminary evidence of a potentially durable effect of EIK1001 in combination with standard of care across PD-(L)1 tumor proportion score subgroups, and a preliminary tolerability profile supportive of systemic administration in an out-patient setting, a potential key differentiator of EIK1001 from previous TLR7/8 targeted therapies. We expect to present updated data from TeLuRide-005 at the 2026 European Society of Medical Oncology, or ESMO, Congress in October 2026. While Teluride-005 has completed accrual, we expect long term follow up to continue with periodic data updates.
Current report
We are also conducting an ongoing global Phase 2/3 registrational trial of approximately 740 patients evaluating EIK1001 in combination with pembrolizumab in first-line advanced melanoma, which we refer to as TeLuRide-006. On August 11, 2026, we announced the dose selection of 0.60 mg/m 2 of EIK1001 in combination with pembrolizumab 200 mg for Part 2 of the trial, following a prespecified interim data analysis conducted by an independent Data Monitoring Committee.
Current report
We also recently initiated a Phase 2/3 registrational trial of approximately 750 patients evaluating EIK1001 in combination with both pembrolizumab and histology appropriate chemotherapy as first-line therapy for treatment naive patients with stage 4 NSCLC, which we refer to as TeLuRide-008. On July 27, 2026, we announced the first patient had been dosed in TeLuRide-008.
Current report
EIK1003 & EIK1004
Current report
EIK1003 and EIK1004 are our highly selective PARP1 inhibitors designed to inhibit PARP1 while sparing PARP2, thereby promoting tumor regression by targeting the DNA damage response of cancer cells. PARP1/2 inhibitors such as olaparib are associated with hematologic toxicity, particularly anemia, leading to dose modifications and treatment discontinuations. These tolerability limitations have restricted use of non-selective PARP inhibitors primarily to the maintenance setting following response to chemotherapy. PARP2 plays an important role in red blood cell production, and preclinical evidence suggests PARP2 inhibition contributes to hematologic toxicities. Consequently, PARP inhibitors have not been successfully combined with chemotherapy, antibody drug conjugates or radionuclides in full dose and schedule in clinical practice to date. We believe the selectivity of EIK1003 and EIK1004 may enable the development of combination regimens with chemotherapy, antibody drug conjugates, or radionuclides in earlier lines of therapy and allow for sustained therapeutic dosing during maintenance treatment.
Current report
We are currently conducting a Phase 1/2 trial evaluating the safety and efficacy of EIK1003 as monotherapy or in combination with anti-cancer agents in participants with advanced solid tumors. To date, we have initiated four separate cohorts to evaluate EIK1003 both as a monotherapy and in combination with anti-cancer agents across different tumor types.
Current report
We are evaluating EIK1003 in Cohort 1A as a monotherapy for the treatment of patients with ovarian, breast, prostate, and pancreatic cancers. On May 30, 2026, we presented updated clinical safety, tolerability and preliminary efficacy data from Cohort 1A at the 2026 ASCO Annual Meeting. The safety data cutoff date was February 27, 2026 and the efficacy data cutoff was May 4, 2026. We believe the data presented show that EIK1003 monotherapy was generally well-tolerated across multiple dose levels and demonstrated encouraging preliminary antitumor activity. We plan to present updated data from Cohort 1A at the ESMO Congress 2026 in October 2026.
Current report
Cohort 1B is evaluating EIK1003 in combination with abiraterone and prednisone for the treatment of patients with advanced prostate cancer. While encouraging efficacy has been observed in studies of approved earlier generation, non-selective PARP inhibitors using this approach, high rates of hematologic suppression were also observed. We plan to present initial clinical data from Cohort 1B at the ESMO Congress 2026 in October.
Current report
Cohort 1C is evaluating EIK1003 in combination with paclitaxel for the treatment of patients with platinum-resistant ovarian cancer or patients with HER2-negative breast cancer that have failed hormonal therapy if ER+ or chemotherapy if ER negative. On May 30, 2026, we presented initial clinical safety, tolerability and preliminary efficacy data from Cohort 1C at the 2026 ASCO Annual Meeting. The safety data cutoff date was February 27, 2026 and the efficacy data cutoff was May 4, 2026. We believe these data demonstrated a combination safety profile generally consistent with paclitaxel’s known toxicities, as well as encouraging preliminary antitumor activity. We plan to present the updated clinical data from Cohort 1C at the ESMO Congress 2026 in October 2026.
Current report
The dose escalation portion of the Phase 1/2 trial has completed for Cohorts 1A, 1B and 1C. As part of the dose optimization strategy for Part 2 of the Phase 1/2 trial, we are currently evaluating two dose levels of EIK1003 monotherapy, 20mg and 60mg, to determine the appropriate recommended Phase 2 dose for EIK1003. Enrollment for this Part 2 dose optimization portion of the trial is ongoing, with plans to enroll approximately 30 PARPi-naïve, HER2-negative breast cancer patients at each dose level.
Current report
We are also conducting a Phase 1/2 trial evaluating the safety and efficacy of EIK1004, our selective PARP1 inhibitor designed to penetrate the central nervous system, for the treatment of patients with ovarian, breast, prostate, and pancreatic cancers. Dose escalation in Part 1 is ongoing. We plan to present the first clinical data from this trial at the ESMO Congress 2026 in October.
Current report
EIK1005 is our product candidate designed to inhibit the Werner, or WRN, helicase and is our first internally developed program to advance into clinical studies. EIK1005 was optimized in our laboratories using our technology platform along with our broad research capabilities and was brought from discovery research to candidate declaration in less than 18 months. We believe EIK1005 has the potential to be an effective anti-tumor agent for microsatellite instability-high, or MSI-high, tumors, by producing synthetic lethality in MSI-high cells dependent upon the WRN helicase salvage pathway. Our EIK1005 development program is evaluating the potential of our WRN inhibitors to be used as a monotherapy, or in combination with immunotherapy, to improve treatment outcomes for patients with MSI-high tumors.
Current report
We have completed a Phase 1 single-ascending dose-escalation trial in healthy volunteers, which evaluated the safety, tolerability, and pharmacokinetics of EIK1005. We are currently evaluating EIK1005 in a Phase 1/2 trial as monotherapy and in combination with pembrolizumab in participants with advanced solid tumors. The first patient in this Phase 1/2 trial was dosed in January 2026, and enrollment in the dose escalation portion of the trial is ongoing. We plan to present initial clinical data from this trial at the ESMO Congress 2026 in October 2026.
Current report
EIK1006
Current report
EIK1006 is our second internally derived clinical candidate and is being investigated as a potential next-generation androgen receptor, or AR, antagonist with activity against multiple clinically emergent mutation variants of AR. Our technology platform has enabled us to identify novel AR antagonists that demonstrate activity against mutant versions of AR that are not easily antagonized by existing AR-directed therapeutics. Our AR program has been focused on optimizing molecules that can bind to the AR and inhibit signaling that is otherwise stimulated by androgens. These compounds block both the wild-type, referred to as the normal form, of AR, as well as the predominant, clinically observed, AR mutations that emerge in patients whose tumors have become resistant to currently available AR inhibitors. We believe EIK1006 has the potential to bind to the ligand binding domain of AR and block its nuclear translocation, thereby inhibiting AR transcriptional activity and downstream signaling. EIK1006 is structurally differentiated from currently available AR antagonists and has been optimized for pure AR antagonism.
Current report
We expect to submit an investigational new drug application, or IND, for EIK1006 by the end of 2026.
Current report
Other Preclinical Opportunities
Current report
Research and development expenses were $145.5 million for the six months ended June 30, 2026 compared to $125.8 million for the six months ended June 30, 2025, an increase of $19.7 million, or 16%. Direct research and development expenses increased $21.5 million as we advanced our clinical trial activity, compensation costs increased $1.8 million and a $5.0 million milestone payment related to our collaboration agreement with Impact was recognized and paid during the six months ended June 30, 2026, compared to $2.5 million in the six months ended June 30, 2025. These increases were partially offset by $3.0 million of restructuring expenses in the six months ended June 30, 2025 and $2.4 million lower occupancy costs following the termination of the office facilities portion of our New York City lease effective January 1, 2026, and higher costs in the prior period from moving into our new Millbrae headquarters.
Current report
General and administrative expenses were $17.9 million for the three months ended June 30, 2026, compared to $40.5 million for the three months ended June 30, 2025, a decrease of $22.5 million, or 56%. This decrease was primarily due to the impairment in the three months ended June 30, 2025 of $10.7 million of property and equipment and $10.3 million of operating lease right-of-use assets relating to properties in Hayward, California that we vacated in April 2025 when we moved into our current corporate headquarters in Millbrae, California.
Current report
General and administrative expenses were $35.2 million for the six months ended June 30, 2026, compared to $55.3 million for the six months ended June 30, 2025, a decrease of $20.0 million, or 36%. This decrease was primarily due to the impairment of the $10.7 million of property and equipment and $10.3 million of operating lease right-of-use assets as discussed above.
Current report
Comparison of the six months ended June 30, 2026 and 2025
Current report
During the three and six months ended June 30, 2026, there were no material changes to our critical accounting policies from those described in our Annual Report on Form 10-K for the year ended December 31, 2025.
Removed paragraphs (20)
Previous report
Our Chair and Chief Executive Officer, Dr. Roger M. Perlmutter, M.D., Ph.D., and our Chief Medical Officer, Dr. Roy Baynes, M.D., Ph.D., together have a proven track record of identifying, developing, and commercializing some of the most impactful drugs ever brought to market, including pembrolizumab, currently the world’s best-selling oncology therapeutic and arguably the most important anti-neoplastic agent ever introduced into clinical practice. While Drs. Perlmutter and Baynes’ track records do not provide a guarantee of future clinical success, and any products developed by us may not achieve the regulatory or commercial success of products that Drs. Perlmutter and Baynes were previously involved in developing, their experience provides valuable insight and strategic guidance to our drug development efforts. Our broader leadership team consists of former senior leaders at global pharmaceutical companies, who have successfully collaborated across several decades on the discovery, development, and commercialization of over 100 new molecular entities.
Previous report
Our pipeline is set forth below:
Previous report
1 This Phase 2/3 trial is designed to proceed to completion, subject to interim analysis by a data monitoring committee, and to form the basis for registration;2 Phase 2 safety and efficacy study nearing completion; United States Food and Drug Administration, or FDA, has allowed us to proceed with the Phase 2/3 registrational trial;3 NSQ = Non-squamous cohort, SQ = Squamous cohort, Phase 2 readout for NSQ cohort expected to be presented at ASCO 2026;4 Greater China: China, Hong Kong, Macau, Taiwan;5 Milestone achieved February, 2026; Note: Readouts are contingent on acceptance for presentation at one of several major medical conferences
Previous report
Clinical Highlights
Previous report
For EIK1001, we expect to present updated data on our fully enrolled Phase 2 trial evaluating EIK1001 in combination with standard-of-care therapy in the first-line stage 4 NSCLC setting at the upcoming annual meeting of the American Society of Clinical Oncology, or ASCO, beginning at the end of May, including a full interim data readout of the non-squamous cohort and a partial interim data readout of the squamous cohort. In addition, we expect to make a Trial-in-Progress presentation to highlight an ongoing Phase 2/3 trial of EIK1001 in combination with pembrolizumab in first-line advanced melanoma, as well as the initiation of a Phase 2/3 trial in combination with standard of care in first-line NSCLC settings.
Previous report
EIK1003
Previous report
For EIK1005, we expect to present two abstracts at the ASCO annual meeting, including data on pharmacokinetics and pharmacodynamics from the healthy volunteer portion of the trial and resulting dose modeling, as well as a Trial-in-Progress presentation for the ongoing Phase 1/2 trial.
Previous report
General and administrative expenses were $17.3 million for the three months ended March 31, 2026, compared to $14.8 million for the three months ended March 31, 2025, an increase of $2.5 million, or 17%. This increase was primarily due to $1.6 million higher depreciation expense following the occupation of our Millbrae headquarters in April 2025, and $0.8 million higher professional fees, mainly from recruiting and professional service fees and insurance expenses.
Previous report
Although our significant accounting policies are described in more detail in Note 2 to our unaudited condensed financial statements included elsewhere in this Quarterly Report, we believe that the following accounting estimates are those most critical to the judgments and estimates used in the preparation of our financial statements.
Previous report
We record accrued liabilities for estimated costs of our research and development activities conducted by third-party service providers. We accrue these costs based on factors such as estimates of the work completed and in accordance with the third-party service agreements. If we do not identify costs that have begun to be incurred or if we underestimate or overestimate the level of services performed or the costs of these services, actual expenses could differ from the estimates. To date, we have not experienced any material differences between accrued costs and actual costs incurred.
Previous report
Nonrefundable advance payments for goods or services to be received in the future for use in research and development activities are recorded as prepaid expenses. The prepaid amounts are expensed as the related goods are delivered or the services are performed, and are classified as current or non-current prepaid expenses and other assets.
Previous report
We make payments in connection with clinical trials to contract manufacturing organizations that manufacture the materials for our product candidates, and to clinical research organizations and clinical trial sites that help to conduct and manage our clinical trials. The financial terms of these contracts are subject to negotiation, which vary by contract and may result in payments that do not match the periods over which materials or services are provided. Generally, these agreements set forth the scope of work to be performed at a fixed fee, unit price, or on a time-and-materials basis. We make estimates of accrued research and development expenses as of each balance sheet date based on facts and circumstances known at that time. We confirm the accuracy of our estimates with the service provider, and make adjustments, if necessary. Research and development accruals are estimated based on the level of services performed, progress of the studies, including the phase or completion of events, and contracted costs. The estimated costs of research and development services provided, but not yet invoiced, are included in accrued expenses and other current liabilities on the balance sheet. If the actual timing of the performance of services or the level of effort varies from the original estimates, we will adjust the accrual accordingly.
Previous report
For stock-based awards issued to employees and nonemployees, we measure the estimated fair value of the stock-based awards on the date of grant and recognize compensation expense for those awards over the requisite service period, which is generally the vesting period of the respective awards. We record the expense for awards with service-based vesting using the straight-line, ratable attribution method and account for forfeitures as they occur.
Previous report
The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. We estimate our expected stock volatility based on the historical volatility of a publicly traded set of peer companies, and expect to continue to do so until such time as we have adequate historical data regarding the volatility of our own traded stock price. The expected term represents the weighted-average period the stock options are expected to remain outstanding and is based on the options’ vesting terms and contractual terms, as we do not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. The expected dividend yield is based on the fact that we have never paid cash dividends and do not expect to pay any cash dividends in the foreseeable future.
Previous report
We classify stock-based compensation expense in our statements of operations and comprehensive loss in the same manner in which the award recipient’s cash compensation costs are classified.
Previous report
Fair Value of Common Stock, Common Stock Warrants and Redeemable Convertible Preferred Stock
Previous report
We estimate the fair value of our common stock underlying stock options on the date of grant. This has historically been determined by management with assistance from external appraisers and approved by our Board. Due to the absence of an active market for our common stock prior to our initial public offering, we utilized methodologies in accordance with the framework of the American Institute of Certified Public Accountants Technical Practice Aid, Valuation of Privately-Held Company Equity Securities Issued as Compensation, to estimate the fair value of our common stock.
Previous report
Our common stock valuations prior to May 31, 2025 were performed using the Option Pricing Method, or OPM, as it was deemed the most appropriate method based on our stage of development and other relevant factors. Within the OPM framework, the backsolve method for inferring the total equity value implied by a recent financing transaction involves the construction of an allocation model that takes into account the entity’s capital structure and the rights, preferences, and privileges of each class of stock, then assumes reasonable inputs for the other OPM variables (inclusive of discount for lack of marketability, volatility, the expected time to liquidity, and risk-free rate). The total equity value is then iterated in the model until the model output value for the equity class sold in a recent financing round equals the price paid in that round. The OPM is generally utilized when specific future liquidity events are difficult to forecast (i.e., the enterprise has many choices and options available), and the enterprise’s value depends on how well it follows an uncharted path through the various possible opportunities and challenges. Among other factors considered are the entity’s financial position and historical financial performance, the status of technological developments within the entity’s research, the composition and ability of the current research and management team, an evaluation or benchmark of the entity’s competition, and the current business climate in the marketplace. Significant changes to the key assumptions underlying the factors used could result in different fair values of common stock at each valuation date.
Previous report
Our common stock, common stock warrants and redeemable convertible preferred stock valuations from May 31, 2025 through the date of our initial public offering were performed using a hybrid method that combines the OPM and the probability-weighted expected return method, or PWERM. The PWERM employs additional information not used in the OPM, including various market approach calculations depending upon the likelihood of various discrete future liquidity scenarios, such as an initial public offering or sale of the enterprise, as well as the probability of remaining a private company. In a hybrid method, various exit scenarios are analyzed. A discount for lack of marketability of our common stock and redeemable convertible preferred stock is then applied to arrive at an indication of value for the common stock and redeemable convertible preferred stock.
Previous report
Following the initial public offering, the fair value of our common stock underlying stock options is based on the closing market price of our common stock on the date of grant.
Reworded paragraphs (21)
Previous wording
Our strategy centers around deploying our technology platform, including our proprietary single molecule tracking, or SMT, system, to develop internally-derived novel therapies, while also leveraging the deep expertise of our management team to opportunistically in-license promising assets. Our most advanced product candidate, EIK1001, a toll-like receptor, or TLR, 7/8 dual-agonist, is currently in a global Phase 2/3 registrational trial in combination with pembrolizumab for the treatment of patients with advanced melanoma. This Phase 2/3 trial is designed to proceed to completion, subject to interim analysis by a data monitoring committee, and to form the basis for registration. We are also evaluating EIK1001 in combination with both pembrolizumab and histology appropriate chemotherapy for the treatment of patients with non-small cell lung cancer, or NSCLC, in a Phase 2 trial, as well as a Phase 2/3 registrational trial for which we recently initiated site selection. We are also conducting Phase 1/2 trials of each of our selective PARP1 inhibitor product candidates, EIK1003 and EIK1004, in ovarian, breast, prostate, and pancreatic cancers and, specifically with the brain-penetrant candidate EIK1004, to address brain metastases and primary brain malignancies. In addition, we have recently initiated and have begun dosing in a Phase 1/2 trial in patients with advanced solid tumors for EIK1005, our Werner, or WRN, helicase inhibitor that emerged through internal research using our technology platform, which will ultimately be evaluated for the treatment of patients with microsatellite instability-high, or MSI-high, tumors.
Current wording
Our strategy centers around deploying our technology platform, including our proprietary single molecule tracking, or SMT, system, to develop internally-derived novel therapies, while also leveraging the deep expertise of our management team to opportunistically in-license promising assets.
Previous wording
We have incurred significant operating losses and negative cash flows since our inception, consistent with our operating plan. Our net losses were $83.0 million and $68.2 million for the three months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, we had an accumulated deficit of $1.0 billion and cash, cash equivalents, and marketable securities of $596.0 million. Since our inception, we have financed our operations primarily through the sale of shares of our redeemable convertible preferred stock and more recently, through our initial public offering.
Current wording
We have incurred significant operating losses and negative cash flows since our inception, consistent with our operating plan. Our net losses were $171.4 million and $173.5 million for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, we had an accumulated deficit of $1.1 billion and cash, cash equivalents, and marketable securities of $531.2 million. Since our inception, we have financed our operations primarily through the sale of shares of our redeemable convertible preferred stock and more recently, through our initial public offering.
Previous wording
We do not currently own or operate any manufacturing facilities. We rely on clinical manufacturing organizations, or CMOs, to produce our product candidates in accordance with the United States Food and Drug Administration's, or FDA's, current good manufacturing practices, or cGMPs, as well as such cGMPs as may be required in other jurisdictions in which we conduct our clinical trials, for use in our clinical trials.
Current wording
We do not currently own or operate any manufacturing facilities. We rely on contract manufacturing organizations, or CMOs, to produce our product candidates in accordance with the United States Food and Drug Administration's, or FDA's, current good manufacturing practices, or cGMPs, as well as such cGMPs as may be required in other jurisdictions in which we conduct our clinical trials, for use in our clinical trials.
Previous wording
At the ASCO annual meeting, we expect to present updated data on our ongoing Phase 1/2 trial in patients with breast, ovarian, prostate or pancreatic cancer for Cohort 1A evaluating EIK1003 as a monotherapy and Cohort 1C evaluating EIK1003 in patients with breast cancer and ovarian cancer in combination with paclitaxel. Dose escalation has completed for Cohorts 1A, 1B (in prostate cancer patients in combination with the novel hormonal agent, abiraterone, and prednisone), and 1C with backfill nearing completion, and dosing has commenced in a Phase 2 dose optimization trial. Finally, we have initiated site selection for Cohort 1D evaluating EIK1003 in combination with paclitaxel and platinum-based chemotherapeutic agents in patients with breast or ovarian cancer.
Current wording
Cohort 1D is evaluating EIK1003 in combination with paclitaxel and platinum-based chemotherapeutic agents in patients with ovarian cancer. We have completed site selection for Cohort 1D and enrollment is ongoing.
Previous wording
In addition to the product candidates and programs described above, we are also actively pursuing discovery research in oncology and neurodegeneration.
Current wording
In addition to the product candidates and programs described above, we are also actively pursuing discovery research in oncology and neurologic disease.
Previous wording
Comparison of the three months ended March 31, 2026 and 2025
Current wording
Comparison of the six months ended June 30, 2026 and 2025
Previous wording
Research and development expenses were $70.0 million for the three months ended March 31, 2026 compared to $56.6 million for the three months ended March 31, 2025, an increase of $13.5 million, or 24%. Direct research and development expenses increased $8.7 million as we advanced our clinical trial activity, and a $5.0 million milestone payment related to our collaboration agreement with Impact was recognized and paid during the quarter ended March 31, 2026.
Current wording
Research and development expenses were $75.5 million for the three months ended June 30, 2026 compared to $69.2 million for the three months ended June 30, 2025, an increase of $6.3 million, or 9%. Direct research and development expenses increased $12.8 million as we advanced our clinical trial activity, and compensation costs increased $1.7 million. These increases were partially offset by $3.0 million of restructuring expenses and a $2.5 million milestone payment related to our collaboration agreement with Impact in the three months ended June 30, 2025, and $2.2 million lower occupancy costs following the termination of the office facilities portion of our New York City lease effective January 1, 2026, and higher costs in the prior period from moving into our new Millbrae headquarters.
Previous wording
Interest income (expense), net was $4.4 million for the three months ended March 31, 2026 compared to $3.2 million for the three months ended March 31, 2025, an increase of $1.2 million, or 39%. This increase was primarily due to higher average investment balances following our initial public offering in February 2026.
Current wording
Interest income (expense), net was $5.0 million for the three months ended June 30, 2026 compared to $4.4 million for the three months ended June 30, 2025, an increase of $0.6 million, or 14%. This increase was primarily due to higher average investment balances following our initial public offering in February 2026.
Previous wording
Since our inception, we have primarily funded our operations through the sale of shares of our redeemable convertible preferred stock and more recently, through our initial public offering. We have not generated any revenue from product sales and have incurred significant annual operating losses and negative cash flows from our operations. As of March 31, 2026, we had $596.0 million in cash, cash equivalents, and marketable securities.
Current wording
Since our inception, we have primarily funded our operations through the sale of shares of our redeemable convertible preferred stock and more recently, through our initial public offering. We have not generated any revenue from product sales and have incurred significant annual operating losses and negative cash flows from our operations. As of June 30, 2026, we had $531.2 million in cash, cash equivalents, and marketable securities.
Previous wording
We have incurred significant annual operating losses and negative cash flows since our inception. As of March 31, 2026, we had an accumulated deficit of $1.0 billion. Based on our current operating plan, we estimate that our existing cash, cash equivalents, and marketable securities as of the date of this Quarterly Report will be sufficient to fund our operating expenses and capital expenditures for at least the next 12 months from the issuance of the unaudited condensed financial statements included elsewhere in this Quarterly Report and into the second half of 2027. We have based this estimate on our current assumptions, which may prove to be wrong, and we may exhaust our available capital resources sooner than we expect.
Current wording
We have incurred significant annual operating losses and negative cash flows since our inception. As of June 30, 2026, we had an accumulated deficit of $1.1 billion. Based on our current operating plan, we estimate that our existing cash, cash equivalents, and marketable securities as of the date of this Quarterly Report will be sufficient to fund our operating expenses and capital expenditures for at least the next 12 months from the issuance of the unaudited condensed financial statements included elsewhere in this Quarterly Report and into the second half of 2027. We have based this estimate on our current assumptions, which may prove to be wrong, and we may exhaust our available capital resources sooner than we expect.
Previous wording
Net cash used in operating activities for the three months ended March 31, 2025 was $54.5 million, which resulted from a net loss of $68.2 million, partially offset by non-cash charges of $8.2 million and a net decrease in our operating assets and liabilities of $5.5 million. Non-cash charges primarily consisted of $3.8 million of depreciation and $3.0 million of stock-based compensation and the net decrease in our operating assets and liabilities was primarily the result of a $16.0 million increase in operating lease liabilities, partially offset by a $9.4 million decrease in accrued expenses and other current liabilities.
Current wording
Net cash used in operating activities for the six months ended June 30, 2026 was $154.8 million, which resulted from a net loss of $171.4 million, partially offset by non-cash charges of $16.0 million and a net decrease in our operating assets and liabilities of $0.7 million. Non-cash charges primarily consisted of $10.3 million of depreciation and $7.0 million of stock-based compensation.
Previous wording
Net cash used in operating activities for the three months ended March 31, 2026 was $89.8 million, which resulted from a net loss of $83.0 million and a net increase in our operating assets and liabilities of $13.9 million, partially offset by non-cash charges of $7.1 million. The net increase in our operating assets and liabilities was primarily the result of a $15.1 million decrease in accrued expenses and other current liabilities from the payment of our 2025 corporate bonuses. Non-cash charges primarily consisted of $5.2 million of depreciation and $2.8 million of stock-based compensation.
Current wording
Net cash used in operating activities for the six months ended June 30, 2025 was $87.3 million, which resulted from a net loss of $173.5 million, partially offset by non-cash charges of $40.7 million and a net decrease in our operating assets and liabilities of $45.5 million. Non-cash charges primarily consisted of $8.0 million of depreciation and amortization, $10.2 million of stock-based compensation, and the impairment of $10.7 million and $10.3 million of property and equipment and operating lease right-of-use assets, respectively, relating to our Hayward, California properties that we vacated when we moved into our Millbrae, California corporate headquarters in April 2025. The net decrease in our operating assets and liabilities was primarily the result of a $44.5 million increase in operating lease liabilities.
Previous wording
Net cash used in investing activities for the three months ended March 31, 2026 was $203.2 million, which primarily consisted of $307.0 million of purchases of marketable securities and $0.3 million of payments for property and equipment purchases, partially offset by $104.0 million of proceeds from the maturities of our marketable securities.
Current wording
Net cash used in investing activities for the six months ended June 30, 2026 was $156.8 million, which primarily consisted of $386.8 million of purchases of marketable securities and $0.5 million of payments for property and equipment purchases, partially offset by $230.5 million of proceeds from the maturities of our marketable securities.
Previous wording
Net cash used in investing activities for the three months ended March 31, 2025 was $213.9 million, which primarily consisted of $252.5 million of purchases of marketable securities and $22.4 million of payments for property and equipment purchases, partially offset by $61.0 million of proceeds from the maturities of our marketable securities.
Current wording
Net cash used in investing activities for the six months ended June 30, 2025 was $249.7 million, which primarily consisted of $321.4 million of purchases of marketable securities and $44.1 million of payments for property and equipment purchases, partially offset by $115.8 million of proceeds from the maturities of our marketable securities.
Previous wording
Net cash provided by financing activities for the three months ended March 31, 2026 was $349.3 million, from net proceeds of $349.0 million from our initial public offering of common stock and $0.3 million from stock option exercises.
Current wording
Net cash provided by financing activities for the six months ended June 30, 2026 was $349.3 million, from net proceeds of $349.0 million from our initial public offering of common stock and $0.3 million from stock option exercises.
Previous wording
Net cash provided by financing activities for the three months ended March 31, 2025 was $350.2 million, primarily related to the net proceeds from the issuance of redeemable convertible preferred stock.
Current wording
Net cash provided by financing activities for the six months ended June 30, 2025 was $350.8 million, from net proceeds of $350.2 million from the issuance of redeemable convertible preferred stock and $0.6 million from stock option exercises.
Previous wording
We paid Seven and Eight and SW aggregate upfront payments of $11.0 million in cash ($10.5 million to Seven and Eight and $0.5 million to SW), and issued two Simple Agreements for Future Equity, or SAFEs, equal to $35.0 million ($31.5 million to Seven and Eight and $3.5 million to SW) upon entering into the applicable agreement. The SAFEs automatically converted into Series C redeemable convertible preferred stock upon the initial closing of the Series C financing round in May 2023, which then converted into common stock upon the closing of our initial public offering. We have also agreed to pay Seven and Eight additional milestone payments in the amount of up to approximately $369.6 million, of which $219.6 million are payable for a compound that is not a conjugate and $150.0 million for a compound that is a conjugate, in each case upon the achievement of certain development and regulatory milestones. EIK1001 is a compound that is not a conjugate. We have also agreed to pay SW additional milestone payments in the amount of up to $29.4 million and up to $350.0 million upon the achievement of certain regulatory and commercial milestones, respectively. No future milestones were accrued as of March 31, 2026 as such milestones were not achieved or probable of being achieved at that date.
Current wording
We paid Seven and Eight and SW aggregate upfront payments of $11.0 million in cash ($10.5 million to Seven and Eight and $0.5 million to SW), and issued two Simple Agreements for Future Equity, or SAFEs, equal to $35.0 million ($31.5 million to Seven and Eight and $3.5 million to SW) upon entering into the applicable agreement. The SAFEs automatically converted into Series C redeemable convertible preferred stock upon the initial closing of the Series C financing round in May 2023, which then converted into common stock upon the closing of our initial public offering. We have also agreed to pay Seven and Eight additional milestone payments in the amount of up to approximately $369.6 million, of which $219.6 million are payable for a compound that is not a conjugate and $150.0 million for a compound that is a conjugate, in each case upon the achievement of certain development and regulatory milestones. EIK1001 is a compound that is not a conjugate. We have also agreed to pay SW additional milestone payments in the amount of up to $29.4 million and up to $350.0 million upon the achievement of certain regulatory and commercial milestones, respectively. As of June 30, 2026, we have paid $46.0 million in total under both agreements.
Previous wording
We paid an upfront fee of $31.5 million in cash to Impact. We are also required to make payments to Impact of up to $181.0 million and up to $775.0 million upon the achievement of certain development and regulatory milestones and commercial milestones, respectively. In addition, tiered royalties of high single-digit to low-teen percentages of net sales per calendar year, subject to certain reductions, are also payable by us to Impact post-commercialization. We have paid Impact $13.5 million in development and regulatory milestones as of March 31, 2026, including $5.0 million in the three months then ended.
Current wording
We paid an upfront fee of $31.5 million in cash to Impact. We are also required to make payments to Impact of up to $181.0 million and up to $775.0 million upon the achievement of certain development and regulatory milestones and commercial milestones, respectively. In addition, tiered royalties of high single-digit to low-teen percentages of net sales per calendar year, subject to certain reductions, are also payable by us to Impact post-commercialization. We have paid Impact $13.5 million in development and regulatory milestones as of June 30, 2026, including $5.0 million in the six months then ended.
Previous wording
In June 2022, we entered into an operating lease agreement for our corporate headquarters located in Millbrae, California, expiring in 2040. We are also party to several operating leases for office and lab space in Hayward, California, New York, New York, and Jersey City, New Jersey. As of March 31, 2026, our non-cancellable lease obligations were $551.6 million under our operating leases, of which $31.0 million are due in the remainder of 2026. Refer to Note 6 to our unaudited condensed financial statements included elsewhere in this Quarterly Report for more information on our lease obligations.
Current wording
In June 2022, we entered into an operating lease agreement for our corporate headquarters located in Millbrae, California, expiring in 2040. We are also party to several operating leases for office and lab space in Hayward, California, New York, New York, and Jersey City, New Jersey. As of June 30, 2026, our non-cancellable lease obligations were $541.1 million under our operating leases, of which $20.5 million are due in the remainder of 2026. Refer to Note 6 to our unaudited condensed financial statements included elsewhere in this Quarterly Report for more information on our lease obligations.
Previous wording
We enter into license and collaboration agreements in the normal course of business in order to obtain rights to promising product candidates, advance product development, and obtain technologies and services related to our business. For example, our product candidates, EIK1001, EIK1003, and EIK1004, were in-licensed pursuant to license and collaboration agreements with third parties. We could be required to make payments related to development and regulatory milestones of up to $630.0 million, and sales milestones of at most $1.1 billion, alongside tiered royalty payments to licensors based on the net sales of the licensed products of high single-digit to low-teen percentages. We cannot estimate when such payments will be due. To date, we have incurred
Current wording
We enter into license and collaboration agreements in the normal course of business in order to obtain rights to promising product candidates, advance product development, and obtain technologies and services related to our business. For example, our product candidates, EIK1001, EIK1003, and EIK1004, were in-licensed pursuant to license and collaboration agreements with third parties. We could be required to make payments related to development and regulatory milestones of up to $630.0 million, and sales milestones of at most $1.1 billion, alongside tiered royalty payments to licensors based on the net sales of the licensed products of high single-digit to low-teen percentages. We cannot estimate when such payments will be due. To date, we have incurred $93.0 million in upfront and milestone payments under these agreements. See Notes 10 and 11 to our unaudited condensed financial statements included elsewhere in this Quarterly Report for additional details on our material agreements.
Previous wording
Our management’s discussion and analysis of our financial condition and results of operations is based on our financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities, at the date of the financial statements, as well as the reported expenses incurred during the reporting periods. These estimates and assumptions are monitored and analyzed by us for changes in facts and circumstances, and material changes in these estimates and assumptions could occur in the future. Our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Changes in estimates are reflected in reported results for the period in which they became known. Actual results may differ from these estimates under different assumptions or conditions.
Current wording
Our management’s discussion and analysis of our financial condition and results of operations is based on our financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States, or GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities, at the date of the financial statements, as well as the reported expenses incurred during the reporting periods. These estimates and assumptions are monitored and analyzed by us for changes in facts and circumstances, and material changes in these estimates and assumptions could occur in the future.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Interest income (expense), net was $9.4 million for the six months ended June 30, 2026 compared to $7.6 million for the six months ended June 30, 2025, an increase of $1.8 million, or 24%. This increase was primarily due to higher average investment balances following our initial public offering in February 2026.
Current report — wording carried from elsewhere
No future milestones were accrued as of June 30, 2026 as such milestones were not achieved or probable of being achieved at that date.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
Comparison of the three months ended March 31, 2026 and 2025
Previous report — wording carried elsewhere
$93.0 million in upfront and milestone payments under these agreements. See Notes 10 and 11 to our unaudited condensed financial statements included elsewhere in this Quarterly Report for additional details on our material agreements.
Previous report — wording carried elsewhere
Research and Development Expenses and Accruals
Previous report — wording carried elsewhere
Research and development expenses are charged to expense as incurred. These expenses consist of compensation expenses, direct research and development expenses, such as software development costs related to research and development activities, laboratory supplies, costs associated with setting up and conducting clinical studies at domestic and international sites, professional fees, depreciation, other miscellaneous expenses, and allocations of facilities and information technology expenses.