ProKidney, the biotech company that’s planning a $458 million facility in Greensboro, has seen its stock fall precipitously in recent months; however, in a Tuesday, Nov. 14 financial report, ProKidney officials stated that the company is well capitalized for its future growth plans.
ProKidney stock was trading at over $13 a share on August 1 of this year, right after the company closed on the purchase of a 210,000 square-foot building in Greensboro, which is planned to be the new facility where the company will make “REACT” – ProKidney’s flagship product for treating kidney disease.
By late September, the stock had fallen to under $5 a share. In mid-October, the company’s stock was trading at half that amount and, this week, after releasing its latest earnings report, the stock was trading at less than half that number: On Wednesday, Nov. 15 ProKidney stock had dropped to $1.38 a share.
That price came in the wake of the company’s just-released results for the third quarter that ended September 30, 2023.
The company, which is based out of Winston-Salem, has stated its plans to create 330 new jobs at the coming Greensboro facility.
The City of Greensboro, Guilford County, the State of North Carolina and Duke Energy have approved incentives packages that total over $35 million for ProKidney if they do pursue those plans.
Despite the dramatic drop in the stock this year, company officials say the company has the capital it needs.
“Building off of our positive corporate update, and with nearly $400 million in cash, cash equivalents and marketable securities as of September 30th of this year, ProKidney continues to be well capitalized to continue executing on both of our Phase 2 and Phase 3 trials in high-risk Chronic Kidney Disease patients in need,” said James Coulston, the chief financial officer at ProKidney.
He added, “With cash expected to fund operations into the fourth quarter of 2025 … we remain well capitalized to continue executing on our development strategy, toward our ultimate goal of bringing REACT to patients in need.”
The company hasn’t announced any change in its plans for the nearly half-billion-dollar facility in Greensboro, but the huge loss in the market cap of the company over a four-month period has raised some eyebrows.
According to the company’s third-quarter financial statement, “Cash, cash equivalents and marketable securities as of September 30, 2023, totaled $396.3 million, compared to $490.3 million on December 31, 2022,” and it adds, “We expect that our existing cash, cash equivalents and marketable securities held at September 30, 2023, will enable us to fund our operating expenses and capital expenditure requirements into the fourth quarter of 2025.”