Kuros Biosciences Reports Results for First Half 2023

Schlieren (Zurich), Switzerland, August 9, 2023 – Kuros Biosciences (“Kuros” or the “Company”), a leader in next generation bone graft technologies, today reported a 148% growth in MagnetOs direct sales in the first six months of 2023. The enrollment of patients in the Phase II spine study for Fibrin-PTH was completed, confirming the successful transition into a fully-fledged orthobiologics company with scientific, clinical, and commercial excellence in bone regeneration. Total revenue from medical devices increased by 126% to CHF 12.9 million (vs first half 2022: CHF 5.7 million), corresponding to 131% growth on a constant currency basis.

Joost de Bruijn, Chief Executive Officer, said: “The first half of this year has seen Kuros pushing ahead strongly with our commercialization of MagnetOs, through which we are successfully providing bone graft treatment to thousands of patients in need worldwide. We continue to achieve impressive sales growth and remain well funded to advance the commercial launch of MagnetOs in the U.S. as planned. We are continuing to develop our portfolio with Fibrin-PTH, a product candidate with the potential to address a market opportunity worth more than two billion dollars. The Phase 2 clinical trial evaluating Fibrin-PTH in spine is progressing well and we expect to communicate the initial data readout in early 2024, which we expect will be an exciting next step for Kuros.”

Key developments in H1 2023

Commercial highlights:

• MagnetOs overachieved its commercial activity plan in the first half of 2023 and the medical devices product segment recognized a positive EBITDA in the period.
• On May 1, 2023, Daniel Geiger was appointed Chief Financial Officer (CFO), transitioning from his previous role as CFO-ad interim.

Clinical highlights:

• On February 21, 2023, Kuros announced the publication of supportive osteoimmunology data for MagnetOs bone graft in two prestigious, peer-reviewed scientific journals. The articles in the Journal of Immunology and Regenerative Medicine and Clinical Oral Implants Research substantiate the unique mechanism of action of MagnetOs bone graft and add to the growing body of evidence Kuros is building up for MagnetOs.
• On July 13, 2023, Kuros announced the completion of enrollment in the STRUCTURE trial, which is investigating the safety and efficacy of Fibrin-PTH (KUR-113) in single-level transforaminal lumbar interbody fusion (TLIF) procedures in patients with degenerative disc disease (DDD). Fibrin-PTH targets a substantial clinical need and, upon approval, will address the large musculoskeletal growth factor market projected to reach $2.2B by 2030.

Financial position

Cash and cash equivalents (including trade and other receivables) as of June 30, 2023, amounted to CHF 22.0 million compared to CHF 27.7 million as of December 31, 2022.
Revenues from product sales amounted to CHF 12.9 million (first half 2022: CHF 5.7 million). Costs for research and development, which include costs of the Phase 2 study (spine indication) of Fibrin-PTH amounted to CHF 2.3 million (first half 2022: CHF 2.5 million). General and administrative costs increased to CHF 3.8 million (first half 2022: CHF 3.1 million). Sales and marketing costs increased to CHF 9.3 million (first half 2022: CHF 5.4 million). Net operating costs amounted to CHF 15.3 million (first half 2022: CHF 10.9 million). The net loss for the six months ended June 30, 2023, amounted to CHF 5.1 million (first half 2022: CHF 3.7 million).