SLN

Silence Therapeutics Plc: Q2 2026 Financial Summary

Business Context and Reporting Period

This Form 10-Q covers the quarterly period ended June 30, 2026. Silence Therapeutics Plc is a biotechnology company focused on discovering and developing RNA therapeutics (siRNA) for rare and common diseases. The company operates as a single reportable segment and is currently in the pre-commercial stage, with no approved products. Key pipeline assets include Divesiran (SLN124) for polycythemia vera and Zerlasiran (SLN360) for cardiovascular disease.

Key Financial Metrics

Material Changes vs. Prior Period

• Reduced Net Loss: The net loss for the six months ended June 30, 2026, decreased significantly by approximately $28.7 million compared to the same period in 2025. This improvement is primarily driven by a $20.2 million reduction in R&D expenses.
• R&D Expense Decline: R&D costs dropped from $38.5 million in YTD 2025 to $18.3 million in YTD 2026. This was largely due to the completion of Phase 3 readiness activities for Zerlasiran in 2025, which reduced contracted development costs by $17.8 million, alongside a reduction in personnel costs due to lower headcount.
• Foreign Currency Impact: The company changed the functional currency of its U.K. entity from GBP to USD effective January 1, 2026. This resulted in a foreign currency gain of $0.2 million for Q2 2026, contrasting with a $6.6 million loss in Q2 2025.
• Liquidity Position: Cash and cash equivalents increased to $72.1 million from $11.3 million at year-end 2025. This increase was driven by the redemption of $139.4 million in term deposits, partially offset by $64.4 million in new purchases and operating cash outflows.

Outlook, Risks, and Management Commentary

• Liquidity Runway: Management believes current cash and cash equivalents are sufficient to fund operating expenses and capital expenditure requirements into 2028. However, the company expects to incur operating losses for the foreseeable future and will need to raise additional funding to support clinical development.
• Pipeline Updates:
  • Divesiran (SLN124): Completed dosing in the Phase 2 SANRECO trial for polycythemia vera in June 2026; topline results are anticipated in August 2026.
  • SLN312: AstraZeneca notified the company in March 2026 that it will not pursue further development of SLN312 beyond Phase 1. Silence will regain full global rights to this asset and is evaluating further development plans.
  • Zerlasiran (SLN360): Phase 3 ready; the company is seeking a third-party partner for development and commercialization.
• Risks and Contingencies:
  • Going Concern: While the company projects sufficiency of funds into 2028, it has incurred recurring losses since inception with an accumulated deficit of $589.6 million. Future funding is required, and failure to obtain it could impact operations.
  • R&D Tax Credits: The company relies on U.K. R&D tax credits. Changes in the regime or challenges to claims could materially impact cash flow.
  • Executive Departure: A separation agreement with the former CEO was entered into in July 2026, resulting in a modification of unvested stock options valued at $1.4 million.

Key Facts for Investor Verification

• Verify the anticipated timing and potential outcomes of the Divesiran Phase 2 topline results expected in August 2026.
• Confirm the company's strategy and funding requirements for the re-acquired SLN312 asset following AstraZeneca's decision to halt development.
• Monitor the progress of partnership discussions for Zerlasiran (SLN360) and the potential impact on future revenue milestones.
• Assess the sustainability of the reduced R&D burn rate and whether it aligns with the projected runway into 2028.
• Review the implications of the functional currency change for the U.K. entity on future financial reporting and foreign exchange volatility.