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ACRS Nasdaq· Aclaris Therapeutics Inc.
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ACRS Nasdaq· Aclaris Therapeutics Inc.
Earnings report Q4 2023

Aclaris Therapeutics Reports Decrease in Revenue for Latest Quarter

Segments of Revenue

Aclaris Therapeutics, Inc. reported a decrease in revenue for the latest quarter. The company's revenue is segmented into two categories: contract research and licensing.

  • Contract research revenue was $3.0 million for the latest quarter, compared to $4.4 million in the previous year. This decrease was primarily driven by lower overall hours billed, partially due to an increased focus on internal development programs. However, the decrease was partially offset by a higher average billing rate.

  • Licensing revenue was $28.2 million for the latest quarter, compared to $25.1 million in the previous year. The increase in licensing revenue was primarily driven by the upfront payment received under the Sun Pharma agreement during the year, as well as an increase in royalties. However, this increase was partially offset by the upfront payment received under the Lilly agreement and the Pediatrix agreement in the previous year.

Strengths

Despite the overall decrease in revenue, Aclaris Therapeutics demonstrated strengths in its licensing segment. The increase in licensing revenue was driven by the upfront payment received under the Sun Pharma agreement, indicating successful partnerships and collaborations. Additionally, the increase in royalties further contributed to the growth in licensing revenue.

Challenges

Aclaris Therapeutics faced challenges in its contract research segment, which experienced a decrease in revenue. This decrease was primarily due to lower overall hours billed, as the company shifted its focus towards internal development programs. While this strategic shift may have long-term benefits, it impacted the short-term revenue in the contract research segment.

Noteworthy

It is worth noting that Aclaris Therapeutics reported a decrease in both contract research revenue and licensing revenue for the latest quarter. This indicates a mixed performance for the company, with strengths in the licensing segment being offset by challenges in the contract research segment.

Summary

Aclaris Therapeutics reported a decrease in revenue for the latest quarter, primarily driven by a decrease in contract research revenue. The company's licensing segment, however, showed strength with an increase in revenue. The decrease in contract research revenue was attributed to lower overall hours billed, as the company focused on internal development programs. Despite the challenges, the increase in licensing revenue, driven by successful partnerships and collaborations, highlights the company's potential for growth in the future.

Source documents

Form 10-K  filed on Feb 27, 2024
36 pages scanned

Reference data

Company financials Q4 revenue 17.6M
Analyst estimates Q4 EPS missed by -95.90%
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