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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
____________________________
FORM 10-Q/A
(Amendment No. 1)
____________________________
(Mark One)
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2024
OR
oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                   to                  
Commission File Number: 001-37722
____________________________
SPYRE THERAPEUTICS, INC.
(Exact Name of Registrant as Specified in its Charter)
____________________________
Delaware46-4312787
(State or other jurisdiction of
incorporation or organization)		(I.R.S. Employer
Identification No.)
221 Crescent Street
Building 23, Suite 105
Waltham, MA 02453
(Address of principal executive offices including zip code)
Registrant’s telephone number, including area code: (617) 651-5940
Former name, former address and former fiscal year, if changed since last report: N/A
____________________________
Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.0001 Par Value Per ShareSYRE
The Nasdaq Stock Market LLC
(Nasdaq Global Select Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large
accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filero Accelerated filero
Non-accelerated filerx Smaller reporting companyx
   Emerging growth companyo
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of August 1, 2024, the registrant had 50,792,374 shares of common stock, $0.0001 par value per share, outstanding.
EXPLANATORY NOTE
This Amendment No. 1 on Form 10-Q/A (this “Amendment”) amends the Quarterly Report on Form 10-Q of Spyre Therapeutics, Inc. (the “Company”) for the period ended June 30, 2024, as filed with the Securities and Exchange Commission on August 7, 2024 (the “Original Filing”).
Subsequent to the filing of its Form 10-Q for the three and nine months ended September 30, 2024, the Company became aware of a misapplication of Generally Accepted Accounting Principles in the United States ("U.S. GAAP") as it relates to the Company's exclusion of its Series A non-voting convertible preferred stock and Series B non-voting convertible preferred stock in the calculation of basic and diluted net loss per share and a finding of a material weakness in internal control over financial reporting solely related to such matter. This Amendment is being filed for the sole purpose of amending certain disclosures from the Original Filing related to the aforementioned misapplication of U.S. GAAP and related finding of material weakness in internal control over financial reporting.
Specifically, this Amendment amends: (i) Part I, Item 1. “Financial Information (unaudited)” to update the Company's Consolidated Statement of Operations and related footnote disclosures for the three and six months ended June 30, 2024, (ii) Part I, Item 4. "Controls and Procedures" to address management's re-evaluation of disclosure controls and procedures as of June 30, 2024 and to reflect the identification of a material weakness in our internal control over financial reporting and (iii) Part II, Item 6. "Exhibits" to include, in accordance with Rule 12b-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), updated certifications from our Chief Executive Officer and Chief Financial Officer as required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 as Exhibits 31.1, 31.2 and 32.1. In accordance with Rule 12b-15 under the Exchange Act, this Amendment amends and restates in their entirety each item identified in the paragraph above.
Other than as described above, this Amendment does not amend, update or change any other items or disclosures contained in the Original Filing, and accordingly, all other information contained in this Amendment is as of the date of the original filing and does not reflect subsequent information or events beyond the original filing date, August 7, 2024. Accordingly, this Amendment should be read in conjunction with other filings made with the SEC subsequent to the filing of the Original Filing, including any amendments to those filings. Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Original Filing.


SPYRE THERAPEUTICS, INC.
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 2024
TABLE OF CONTENTS


PART I. – Financial Information
Item 1. Financial Statements (Unaudited).
Spyre Therapeutics, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except share and per share amounts)
June 30,
2024		December 31,
2023
ASSETS
CURRENT ASSETS
Cash and cash equivalents$45,144 $188,893 
Marketable securities380,851 150,384 
Prepaid expenses and other current assets9,741 2,251 
Total current assets435,736 341,528 
Restricted cash321 322 
Other non-current assets10 9 
TOTAL ASSETS$436,067 $341,859 
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable$3,231 $896 
CVR liability2,640 1,390 
Accrued and other current liabilities5,683 13,108 
Related party accounts payable and other current liabilities10,568 16,584 
Total current liabilities22,122 31,978 
Non-current CVR liability39,560 41,310 
TOTAL LIABILITIES61,682 73,288 
Commitments and Contingencies (Note 7 and 8)
Series B non-voting convertible preferred stock, $0.0001 par value; 150,000 shares authorized, issued, and outstanding as of December 31, 2023.
— 84,555 
STOCKHOLDERS’ EQUITY
Series A non-voting convertible preferred stock, $0.0001 par value; 1,086,341 shares authorized as of June 30, 2024 and December 31, 2023; 346,045 and 437,037 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively.
146,425 184,927 
Series B non-voting convertible preferred stock, $0.0001 par value; 271,625 shares authorized and 16,667 shares issued and outstanding as of June 30, 2024.
9,395 — 
Preferred stock, $0.0001 par value; 8,642,034 shares and 8,763,659 shares authorized as of June 30, 2024 and December 31, 2023, respectively; no shares issued and outstanding as of June 30, 2024 and December 31, 2023.
— — 
Common stock, $0.0001 par value; 400,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 50,783,384 shares and 36,057,109 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively.
12 10 
Additional paid-in capital1,066,214 763,191 
Accumulated other comprehensive (loss) income(553)302 
Accumulated deficit(847,108)(764,414)
TOTAL STOCKHOLDERS’ EQUITY374,385 184,016 
TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY$436,067 $341,859 
The accompanying notes are an integral part of these condensed consolidated financial statements.
1

Spyre Therapeutics, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except share and per share amounts)
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2024202320242023
Revenue:
Development fee and royalty$— $688 $— $886 
Total revenue— 688 — 886 
 
Operating expenses:
Research and development (1)
32,636 17,386 67,564 31,162 
General and administrative11,511 12,062 24,357 17,290 
Acquired in-process research and development— 130,486 — 130,486 
Total operating expenses44,147 159,934 91,921 178,938 
Loss from operations(44,147)(159,246)(91,921)(178,052)
 
Other income (expense):
Interest income5,920 350 10,352 770 
Change in fair value of forward contract liability— (58,170)— (58,170)
Other expense, net(610)(8)(1,093)(80)
Total other income (expense) 5,310 (57,828)9,259 (57,480)
Loss before income tax expense(38,837)(217,074)(82,662)(235,532)
Income tax (expense) benefit— (7)(32)29 
Net loss$(38,837)$(217,081)$(82,694)$(235,503)
 
Net loss per share, basic and diluted, Series A Preferred Stock (restated)$(23.61)$(1,605.58)$(52.32)$(2,050.53)
Weighted-average Series A non-voting convertible preferred stock outstanding, basic and diluted (restated)369,04339,640 403,04019,930 
Net loss per share, basic and diluted, Series B Preferred Stock (restated)$(23.61)$— $(52.32)$— 
Weighted-average Series B non-voting convertible preferred stock outstanding, basic and diluted (restated)142,745— 154,503— 
Net loss per share, basic and diluted, common (restated)$(0.59)$(40.14)$(1.31)$(51.26)
Weighted-average common shares outstanding, basic and diluted45,316,2643,822,605 40,914,4633,796,699 
(1)Includes $9.4 million and $26.5 million in related party expenses for the three and six months ended June 30, 2024, respectively, and $1.4 million related party expenses for the three and six months ended June 30, 2023.
The accompanying notes are an integral part of these condensed consolidated financial statements.
2

Spyre Therapeutics, Inc.
Condensed Consolidated Statements of Comprehensive Loss
(Unaudited, in thousands)
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Net loss$(38,837)$(217,081)$(82,694)$(235,503)
Other comprehensive (loss) income:
Foreign currency translation adjustment4 18 20 28 
Unrealized (loss) gain on marketable securities(194)(1)(875)31 
Total comprehensive loss$(39,027)$(217,064)$(83,549)$(235,444)
The accompanying notes are an integral part of these condensed consolidated financial statements.
3

Spyre Therapeutics, Inc.
Condensed Consolidated Statements of Changes in
Convertible Preferred Stock and Stockholders’ Equity
(Unaudited, in thousands)
Six Months Ended June 30, 2024
Series B
Non-Voting Convertible
Preferred Stock
Series A
Non-Voting Convertible
Preferred Stock		Series B
Non-Voting Convertible
Preferred Stock		Common Stock
Additional
Paid-In
Capital
Accumulated
Other
Comprehensive
Income (Loss)
Accumulated
Deficit
Total
Stockholders'
Equity
SharesAmountSharesAmountSharesAmountSharesAmount
Balances - December 31, 2023150$84,555 437$184,927 —$— 36,057$10 $763,191 $302 $(764,414)$184,016 
Issuance of Series B non-voting convertible preferred stock in connection with private placement, net of financing costs122168,850 —— ———— — — — — 
Issuance of common stock in connection with exercise of stock options and employee stock purchase plan—— —— ——572— 4,390 — — 4,390 
Stock-based compensation expense—— —— ———— 8,385 — — 8,385 
Foreign currency translation adjustment—— —— ———— — 16 — 16 
Unrealized loss on marketable securities—— —— ———— — (681)— (681)
Net loss—— —— ———— — — (43,857)(43,857)
Balances - March 31, 2024272 $253,405 437 $184,927 — — 36,629 $10 $775,966 $(363)$(808,271)$152,269 
Stockholder approval of the issuance of Common Stock upon conversion of Series B convertible non-voting preferred stock(272)(253,405)272253,405—— — — — 253,405 
Exchange of Series A non-voting convertible preferred stock for common stock—— (91)(38,502)——3,6401 38,501 — — — 
Conversion of Series B non-voting convertible preferred stock into common stock—— (255)(244,010)10,1981 244,009 — — — 
Issuance of common stock in connection with exercise of pre-funded warrants—— —— ——250— 1 — — 1 
Issuance of common stock in connection with exercise of stock options and employee stock purchase plan—— —— ——66— 494 — — 494 
Stock-based compensation expense—— —— ———— 7,243 — — 7,243 
Foreign currency translation adjustment—— —— ———— — 4 — 4 
Unrealized loss on marketable securities—— —— ———— — (194)— (194)
Net loss———— ———— — — (38,837)(38,837)
Balances - June 30, 2024——346$146,425 17$9,395 50,783$12 $1,066,214 $(553)$(847,108)$374,385 
4


Six Months Ended June 30, 2023
Series A
Non-Voting Convertible
Preferred Stock
Common Stock
Additional
Paid-In
Capital
Accumulated
Other
Comprehensive
Income (Loss)
Accumulated
Deficit
Total
Stockholders'
Equity
SharesAmountSharesAmount
Balances - December 31, 2022—$— 2,614$6 $475,971 $(48)$(425,624)$50,305 
Issuance of common stock in connection with employee stock purchase plan—— 2— 18 — — 18 
Stock-based compensation expense—— —— 1,709 — — 1,709 
Foreign currency translation adjustment—— —— — 10 — 10 
Unrealized gain on marketable securities—— —— — 32 — 32 
Net loss—— —— — — (18,422)(18,422)
Balances - March 31, 2023—$— 2,616$6 $477,698 $(6)$(444,046)$33,652 
Issuance of Series A non-voting convertible preferred stock in connection with private placement, net of financing costs721197,323 —— — — — — 
Issuance of common stock forward in connection with the asset acquisition of Spyre—— —— 3,768 — — 3,768 
Issuance of common stock in connection with exercise of pre-funded warrants—— 624— — — — — 
CVR distribution to common stockholders—— —— (29,500)— — (29,500)
Stock-based compensation expense—— —— 1,775 — — 1,775 
Foreign currency translation adjustment—— —— — 18 — 18 
Unrealized loss on marketable securities—— —— — (1)— (1)
Net loss—— — — (217,081)(217,081)
Balances - June 30, 2023721$197,323 3,240$6 $453,741 $11 $(661,127)$(207,369)
The accompanying notes are an integral part of these condensed consolidated financial statements.

5

Spyre Therapeutics, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
 Six Months Ended
June 30,
 20242023
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss$(82,694)$(235,503)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation22,517 3,620 
Acquired in-process research and development— 130,486 
Change in fair value of CVR liability930 — 
Change in fair value of forward contract liability— 58,170 
Lease ROU asset and leasehold improvement impairment loss— 2,580 
Loss on disposal of long-lived assets— 915 
Net accretion of discount on marketable securities(5,984)(123)
Interest proceeds from maturities of zero coupon US Treasury Bills
124 — 
Depreciation and amortization— 744 
Amortization of operating lease assets— 220 
Other— 6 
Changes in operating assets and liabilities:
Accounts payable2,335 2,045 
Accrued and other liabilities(7,623)(1,058)
Related party accounts payable(12,906)1,247 
Prepaid expenses and other assets(7,489)3,368 
Deferred revenue— 575 
Development receivables— (1,271)
Operating lease liabilities— (298)
Net cash used in operating activities(90,790)(34,277)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from maturities and sales of marketable securities105,626 21,000 
Purchases of marketable securities(331,107)— 
Cash assumed from asset acquisition of Spyre— 3,035 
Proceeds from sale of property and equipment— 475 
Net cash (used in) and provided by investing activities(225,481)24,510 
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of Series B non-voting convertible preferred stock in connection with private placement, net of placement and other offering costs 169,070 — 
Proceeds from issuance of Series A non-voting convertible preferred stock in connection with private placement— 210,000 
Payments related to contingent value rights liability(1,430)— 
Proceeds from employee stock option exercises, employee stock plan purchases, and exercise of prefunded warrants4,885 18 
Principal payments on finance lease obligation— (16)
Net cash provided by financing activities172,525 210,002 
Effect of exchange rate on cash, cash equivalents, and restricted cash(4)24 
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH(143,750)200,259 
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
Beginning of period189,215 36,416 
End of period$45,465 $236,675 
(Continued on next page)
 Six Months Ended
June 30,
 20242023
Supplemental Disclosure of Non-Cash Investing and Financing Information:
Exchange of Series A non-voting convertible preferred stock for common stock$38,502 $— 
Conversion of Series B non-voting convertible preferred stock into common stock$244,010 $— 
Unpaid amounts related to issuance of Series B non-voting convertible preferred stock in connection with private placement$220 $— 
Unpaid direct transaction costs related to the asset acquisition of Spyre$— $2,067 
Unpaid amounts related to issuance of Series A non-voting convertible preferred stock in connection with private placement$— $12,677 
Reconciliation of Cash, Cash Equivalents, and Restricted Cash Reported in the Statement of Financial Position
Cash and cash equivalents$45,144 $235,358 
Restricted cash321 1,317 
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows$45,465 $236,675 
The accompanying notes are an integral part of these condensed consolidated financial statements.
6

Spyre Therapeutics, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements
1. The Company and Basis of Presentation
Spyre Therapeutics, Inc., formerly Aeglea BioTherapeutics, Inc. (“Spyre” or the “Company”), is a clinical stage biotechnology company focused on developing next generation therapeutics for patients living with inflammatory bowel disease. The Company was formed as a Limited Liability Company ("LLC") in Delaware on December 16, 2013 under the name Aeglea BioTherapeutics Holdings, LLC and was converted from a Delaware LLC to a Delaware corporation on March 10, 2015. On November 27, 2023, the Company completed its corporate rebranding, changing the name of the Company to Spyre Therapeutics, Inc. The Company operates in one segment and has its principal offices in Waltham, Massachusetts.
On September 8, 2023, the Company effected a reverse stock split of its Common Stock at a ratio of 1-for-25 (the “Reverse Split”). Except as indicated otherwise, all share numbers related to the Company's Common Stock disclosed in these financial statements have been adjusted on a post-Reverse Split basis.
On April 12, 2023, based on the review of the inconclusive interim results from the Company's Phase 1/2 clinical trial of pegtarviliase for the treatment of Classical Homocystinuria and other business considerations, the Company announced that it had initiated a process to explore strategic alternatives to maximize stockholder value and engaged an independent exclusive financial advisor to support this process. As a result, in April 2023, the Company implemented a restructuring plan resulting in an approximate 83% reduction of the Company’s existing headcount.
On June 22, 2023, the Company acquired, in accordance with the terms of the Agreement and Plan of Merger (the "Acquisition Agreement"), the assets of Spyre Therapeutics, Inc. (“Pre-Merger Spyre”), a privately held biotechnology company advancing a pipeline of antibody therapeutics with the potential to transform the treatment of inflammatory bowel disease through a research and development option agreement ("Paragon Agreement") with Paragon Therapeutics, Inc. ("Paragon"). The asset acquisition was accomplished through a two-step reverse triangular merger whereby a wholly owned subsidiary of the Company merged with and into Pre-Merger Spyre, which existed at the time the Acquisition Agreement was entered into, and became a wholly owned subsidiary of the Company in accordance with the terms of the Acquisition Agreement. Immediately following this merger, Pre-Merger Spyre merged with and into a second wholly owned subsidiary of the Company (“Merger Sub”) in accordance with the terms of the Acquisition Agreement and Pre-Merger Spyre ceased to exist. Subsequently, Aeglea BioTherapeutics, Inc. was renamed Spyre Therapeutics, Inc. and is a different entity than Pre-Merger Spyre, which ceased to exist upon merging with Merger Sub. The transaction was structured as a stock-for-stock transaction pursuant to which all of Pre-Merger Spyre's outstanding equity interests were exchanged based on a fixed exchange ratio of 0.5494488 to 1 for consideration from the Company of 517,809 shares of common stock, par value of $0.0001 per share ("Common Stock"), and 364,887 shares of Series A non-voting convertible preferred stock, par value of $0.0001 per share ("Series A Preferred Stock") (convertible on a 40 to 1 basis), in addition to the assumption of outstanding and unexercised stock options to purchase 2,734 shares of Common Stock from the Amended and Restated Spyre 2023 Equity Incentive Plan (the "Asset Acquisition"). The Common Stock and Series A Preferred Stock related to the Asset Acquisition were issued to the Pre-Merger Spyre stockholders on July 7, 2023.
In connection with the Asset Acquisition, on June 26, 2023, the Company completed a private placement of shares of Series A Preferred Stock (the “June 2023 PIPE”) to a group of investors (the “June 2023 Investors”). The Company sold an aggregate of 721,452 shares of Series A Preferred Stock for an aggregate purchase price of approximately $210.0 million before deducting approximately $12.7 million in placement agent and other offering expenses (together with the Asset Acquisition, the “Transactions”).
In connection with the Asset Acquisition, a non-transferable contingent value right ("CVR") was distributed to stockholders of record of the Company as of the close of business on July 3, 2023 (the "Legacy Stockholders"), but was not distributed to the holders of shares of Common Stock or Series A Preferred Stock issued to the former stockholders of Pre-Merger Spyre or the June 2023 Investors in the Transactions. Holders of the CVRs will be entitled to receive cash payments from proceeds received by the Company for a three-year
7

period related to the disposition or monetization of its legacy assets for a period of one-year following the closing of the Asset Acquisition.
On November 21, 2023, the Company's stockholders approved the issuance of Common Stock upon conversion of the Company's Series A Preferred Stock to Common Stock. A total of 649,302 shares of Series A Preferred Stock automatically converted to 25,972,080 shares of Common Stock; 437,037 shares of Series A Preferred Stock did not automatically convert and remained outstanding after the conversion.
On December 11, 2023, the Company completed a private placement of shares of Common Stock and Series B non-voting convertible preferred stock, par value of $0.0001 per share ("Series B Preferred Stock") (convertible on a 40 to 1 basis) (the “December 2023 PIPE”) to a group of investors. The Company sold an aggregate of 6,000,000 shares of Common Stock and 150,000 shares of Series B Preferred Stock for an aggregate purchase price of approximately $180.0 million before deducting approximately $10.9 million of placement agent and other offering expenses.
On March 20, 2024, the Company completed a private placement of Series B Preferred Stock (convertible on a 40 to 1 basis) (the “March 2024 PIPE”) to a group of investors. The Company sold 121,625 shares of Series B Preferred Stock for a purchase price of $180.0 million before deducting approximately $11.2 million of placement agent and other offering costs.
On April 23, 2024, the Company entered into an exchange agreement with Fairmount Healthcare Fund II L.P. (the “Stockholder”), pursuant to which the Stockholder agreed to exchange an aggregate of 90,992 shares of Series A Preferred Stock for an aggregate of 3,639,680 shares of Common Stock (the “April 2024 Exchange”). The Common Stock issued in connection with the April 2024 Exchange was issued without registration under the Securities Act of 1933, as amended (the “Securities Act”) in reliance on the exemption from registration contained in Section 3(a)(9) of the Securities Act. The April 2024 Exchange closed on April 25, 2024, with 346,045 shares of Series A Preferred Stock remaining outstanding following the April 2024 Exchange.
On May 14, 2024, the Company's stockholders approved the issuance of Common Stock upon conversion of the Company's Series B Preferred Stock to Common Stock. A total of 254,958 shares of Series B Preferred Stock automatically converted to 10,198,320 shares of Common Stock; 16,667 shares of Series B Preferred Stock did not automatically convert and remained outstanding as of June 30, 2024.
Liquidity
The Company is a clinical stage biotechnology company with a limited operating history, and due to its significant research and development expenditures, the Company has generated operating losses since its inception and has not generated any revenue from the commercial sale of any products. There can be no assurance that profitable operations will ever be achieved, and, if achieved, whether profitability can be sustained on a continuing basis.
Since its inception and through June 30, 2024, the Company has funded our operations by raising an aggregate of approximately $1.1 billion of gross proceeds from the sale and issuance of convertible preferred stock and common stock, pre-funded warrants, the collection of grant proceeds, and the licensing of its product rights for commercialization of pegzilarginase in Europe and certain countries in the Middle East. As of June 30, 2024, Spyre had an accumulated deficit of $847.1 million, and cash, cash equivalents, marketable securities and restricted cash of $426.3 million.
Based on current operating plans, the Company has sufficient resources to fund operations for at least one year from the issuance date of these financial statements with existing cash, cash equivalents, and marketable securities. Spyre will need to secure additional financing in the future to fund additional research and development, and before a commercial drug can be produced, marketed and sold. If the Company is unable to obtain additional financing or generate license or product revenue, the lack of liquidity could have a material adverse effect on the Company.
8

Basis of Presentation
The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”) as defined by the Financial Accounting Standards Board and include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Reclassification of Prior Year Presentation
Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations or balance sheets.
Unaudited Interim Financial Information
The interim condensed consolidated financial statements included in this Quarterly Report on Form 10-Q are unaudited. The unaudited interim financial statements have been prepared on the same basis as the annual financial statements and reflect, in the opinion of management, all adjustments of a normal and recurring nature that are necessary for a fair statement of the Company’s financial position as of June 30, 2024, and its results of operations for the three and six months ended June 30, 2024 and 2023, changes in convertible preferred stock and stockholders’ equity for the three and six months ended June 30, 2024 and 2023, and cash flows for the six months ended June 30, 2024 and 2023. The results of operations for the three and six months ended June 30, 2024, are not necessarily indicative of the results to be expected for the year ending December 31, 2024 or for any other future annual or interim period. The December 31, 2023 balance sheet was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP for complete financial statements. These financial statements should be read in conjunction with the audited financial statements included in the Company’s Form 10-K for the year ended December 31, 2023 (the "Annual Report") as filed with the SEC on February 29, 2024 and amended on March 1, 2024 and November 18, 2024.
2. Summary of Significant Accounting Policies
These interim condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and SEC instructions for interim financial information, and should be read in conjunction with the Company's Annual Report. Significant accounting policies and other disclosures normally provided have been omitted since such items are disclosed in the Company's Annual Report. The Company uses the same accounting policies in preparing quarterly and annual financial statements.
Other than policies noted below, there have been no significant changes from the significant accounting policies and estimates disclosed in the Notes titled “1. The Company and Basis of Presentation” and "2. Summary of Significant Accounting Policies” of the Company's Annual Report.
License Agreements Contingent Milestone Payments
The Company’s license agreements include specific development, regulatory, and clinical milestone payments that are payable upon the resolution of a contingency, such as upon the selection of a development candidate, first dosing of a human patient in clinical trials or receipt of the Food Drug and Administration’s (“FDA”) approval of a Spyre drug. The achievement of these milestone payments involves many factors outside of the Company’s control and therefore the associated likelihood cannot be considered probable until the related contingency is resolved. Based on the preceding, the Company accrues each milestone payment upon the achievement of the applicable milestone event.
Recently Adopted Accounting Pronouncement
There have been no recent accounting pronouncements or changes in accounting pronouncements during the six months ended June 30, 2024 that are of significance or potential significance to the Company.
9

3. Fair Value Measurements
The Company measures and reports certain financial instruments as assets and liabilities at fair value on a recurring basis. The following tables set forth the fair value of the Company’s financial assets and liabilities at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands):
June 30, 2024
Level 1Level 2Level 3Total
Financial Assets:
Money market funds$43,377 $— $— $43,377 
U.S. government treasury securities136,857 — — 136,857 
U.S. government agency securities— 92,566 — 92,566 
Commercial paper— 119,716 — 119,716 
Corporate bonds— 31,712 — 31,712 
Total financial assets$180,234 $243,994 $— $424,228 
 
Liabilities:
Parapyre Option Obligation$— $6,889 $— $6,889 
CVR liability— — 42,200 42,200 
Total liabilities$— $6,889 $42,200 $49,089 
December 31, 2023
Level 1Level 2Level 3Total
Financial Assets:
Money market funds$150,648 $— $— $150,648 
U.S. government treasury securities32,843 — — 32,843 
U.S. government agency securities— 16,257 — 16,257 
Commercial paper— 104,141 — 104,141 
Corporate bonds— 33,064 — 33,064 
Total financial assets$183,491 $153,462 $— $336,953 
Liabilities:
CVR liability$— $— $42,700 $42,700 
Total liabilities$— $— $42,700 $42,700 
The Company measures the fair value of money market funds and U.S. government treasury securities on quoted prices in active markets for identical assets or liabilities. The Level 2 assets include U.S. government agency securities, commercial paper and corporate bonds, and are valued based on quoted prices for similar assets in active markets and inputs other than quoted prices that are derived from observable market data. The Company evaluates transfers between levels at the end of each reporting period. There were no transfers between Level 1, Level 2, or Level 3 during the periods presented.
Parapyre Option Obligation
Under the Paragon Agreement, the Company is obligated to issue Parapyre Holding LLC ("Parapyre") an annual equity grant of warrants, on the last business day of each of the years ended December 31, 2023 and December 31, 2024, to purchase 1% of the then outstanding shares of the Company’s Common Stock, on a fully diluted basis, during the term of the Paragon Agreement (the "Parapyre Option Obligation"). The Company determined that the 2023 and 2024 grants are two separate grants, as there would be no obligation for the 2024 grant had the Company exercised or terminated all of the options under the Paragon Agreement prior to December 31, 2023. The service inception period for the grant precedes the grant date, with the full award
10

being vested as of the grant date with no post-grant date service requirement. Accordingly, a liability related to the Parapyre Option Obligation is recorded pursuant to the Paragon Agreement during interim periods. On December 31, 2023, the Company settled its 2023 obligation under the Parapyre Option Obligation by issuing Parapyre 684,407 warrants to purchase the Company's Common Stock, with a $21.52 per share exercise price for each warrant.
The Parapyre Option Obligation is considered a Level 2 liability based on observable market data for substantially the full term of the liability. The Parapyre Option Obligation is measured each period using a Black-Scholes model to estimate the fair value of the option grant. Changes in the fair value of the Parapyre Option Obligation are recorded as stock-based compensation within Research and development expenses for non-employees who provided pre-clinical development services.
CVR Liability
In connection with the Asset Acquisition, a non-transferable CVR was distributed to the Legacy Stockholders, but was not distributed to holders of shares of Common Stock or Series A Preferred Stock issued to the June 2023 Investors or former stockholders of Pre-Merger Spyre in connection with the Transactions. Holders of the CVR will be entitled to receive certain cash payments from proceeds received by the Company for a three-year period, if any, related to the disposition or monetization of the Company’s legacy assets for a period of one year following the closing of the Asset Acquisition.
The fair value of the CVR liability was determined using the probability weighted discounted cash flow method to estimate future cash flows associated with the sale of the legacy assets. Analogous to a dividend being declared/approved in one period and paid out in another, the liability was recorded at the date of approval, June 22, 2023, as a Common Stock dividend, returning capital to the Legacy Stockholders. Changes in fair value of the liability will be recognized as a component of Other income (expense) in the consolidated statement of operations and comprehensive loss in each reporting period. The liability value is based on significant inputs not observable in the market such as estimated cash flows, estimated probabilities of regulatory success, and discount rates, which represent a Level 3 measurement within the fair value hierarchy.
The significant inputs used to estimate the fair value of the CVR liability were as follows:
 June 30, 2024
Estimated cash flow dates
02/15/25 - 06/22/26
Estimated probability of success
39% - 100%
Estimated reimbursement rate compared to reimbursement target
81% - 100%
Risk-adjusted discount rates
6.47% - 6.71%
The change in fair value between December 31, 2023 and June 30, 2024 was a $0.9 million increase, and was primarily driven by changes in the risk-adjusted discount rates and the time value of money.
The following table presents changes in the CVR liability for the periods presented (in thousands):
 
CVR Liability
Beginning balance as of December 31, 2023$42,700 
Changes in the fair value of the CVR liability930 
Payments(1,430)
Ending Balance as of June 30, 2024$42,200 

11

Forward Contract Liability
In connection with the Asset Acquisition, the Company entered into a contract for the issuance of 364,887 shares of Series A Preferred Stock as part of the consideration transferred. This forward contract was classified as a liability because the underlying preferred shares were contingently redeemable. The forward contract was carried at fair value on the balance sheet, with changes in fair value between the acquisition date and June 30, 2023 recorded in earnings. The liability was settled with the issuance of the Series A Preferred Stock on July 7, 2023.
The fair value of the forward contract as of the acquisition date, June 22, 2023, was $106.2 million. The fair value of the forward contract on June 30, 2023 was $164.4 million. The $58.2 million change in fair value of the forward contract liability between the acquisition date and June 30, 2023, was recorded as Other Income (Expense) in the consolidated statements of operations for the three and six months ended June 30, 2023.
4. Cash Equivalents and Marketable Securities
The following tables summarize the estimated fair value of the Company’s cash equivalents and marketable securities and the gross unrealized gains and losses (in thousands):
June 30, 2024
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
Cash equivalents:
Money market funds$43,377 $— $— $43,377 
Total cash equivalents$43,377 $— $— $43,377 
Marketable securities:
Commercial paper$119,844 $3 $(131)$119,716 
Corporate bonds31,797 — (85)31,712 
U.S. government treasury securities137,061 65 (269)136,857 
U.S. government agency securities92,741 13 (188)92,566 
Total marketable securities$381,443 $81 $(673)$380,851 

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December 31, 2023
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
Cash equivalents:
Money market funds$150,648 $— $— $150,648 
Commercial paper24,950 5 — 24,955 
U.S. government treasury securities10,965 1 — 10,966 
Total cash equivalents$186,563 $6 $— $186,569 
 
Marketable securities:
Commercial paper$79,124 $62 $— $79,186 
Corporate bonds32,984 81 (1)33,064 
U.S. government treasury securities21,846 31 — 21,877 
U.S. government agency securities16,147 110 — 16,257 
Total marketable securities$150,101 $284 $(1)$150,384 
The following table summarizes the available-for-sale securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of June 30, 2024 and December 31, 2023, aggregated by major security type and length of time in a continuous unrealized loss position:
June 30, 2024
Less Than 12 Months
12 Months or Longer
Total
Fair Value
Unrealized
Losses
Fair Value
Unrealized
Losses
Fair Value
Unrealized
Losses
Commercial paper$100,124 $(131)$— $— $100,124 $(131)
Corporate bonds31,712 (85)— — 31,712 (85)
U.S. government treasury securities93,432 (269)— — 93,432 (269)
U.S. government agency securities83,933 (188)— — 83,933 (188)
Total marketable securities$309,201 $(673)$— $— $309,201 $(673)
December 31, 2023
Less Than 12 Months
12 Months or Longer
Total
Fair Value
Unrealized
Losses
Fair Value
Unrealized
Losses
Fair Value
Unrealized
Losses
Corporate bonds$9,907 $(1)$— $— $9,907 $(1)
U.S. government treasury securities4,831 — — — 4,831 — 
Total marketable securities$14,738 $(1)$— $— $14,738 $(1)
The Company evaluated its securities for credit losses and considered the decline in market value to be primarily attributable to current economic and market conditions and not to a credit loss or other factors. Additionally, the Company does not intend to sell the securities in an unrealized loss position and does not expect it will be required to sell the securities before recovery of the unamortized cost basis. As of June 30, 2024 and December 31, 2023, an allowance for credit losses had not been recognized. Given the Company's intent and ability to hold such securities until recovery, and the lack of significant change in credit risk of these investments, the Company does not consider these marketable securities to be impaired as of June 30, 2024 and December 31, 2023.
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The financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash deposits. Accounts at each of our two U.S. banking institutions are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 per depositor. As of June 30, 2024 and December 31, 2023, cash deposits at the Company's U.S. banking institutions exceeded the FDIC limits. Uninsured foreign cash deposits were immaterial for both periods.
There were no realized gains or losses on marketable securities for the three and six months ended June 30, 2024 and 2023. Interest on marketable securities is included in interest income. Accrued interest receivable on available-for-sale debt securities as of June 30, 2024 and December 31, 2023, was $1.8 million and $0.9 million, respectively.
The following table summarizes the contractual maturities of the Company’s marketable securities at estimated fair value (in thousands):
June 30,
2024		December 31,
2023
Due in one year or less$270,799 $115,784 
Due in 1 - 2 years110,052 34,600 
Total marketable securities$380,851 $150,384 
The Company may sell investments at any time for use in current operations even if they have not yet reached maturity. As a result, the Company classifies marketable securities, including securities with maturities beyond twelve months as current assets.
5. Accrued and Other Current Liabilities
Accrued and other current liabilities consist of the following (in thousands):
June 30,
2024		December 31,
2023
Accrued compensation$2,664 $4,054 
Accrued contracted research and development costs2,269 7,092 
Accrued professional and consulting fees515 1,474 
Accrued other235 488 
Total accrued and other current liabilities$5,683 $13,108 
6. Asset Acquisition
On June 22, 2023, the Company acquired Pre-Merger Spyre pursuant to the Acquisition Agreement, by and among the Company, Aspen Merger Sub I, Inc., a Delaware corporation and a wholly owned subsidiary of the Company (“First Merger Sub”), Sequoia Merger Sub II, LLC, a Delaware limited liability company and wholly owned subsidiary of the Company (“Second Merger Sub”), and Pre-Merger Spyre. Pursuant to the Acquisition Agreement, First Merger Sub merged with and into Pre-Merger Spyre, pursuant to which Pre-Merger Spyre was the surviving corporation and became a wholly owned subsidiary of the Company (the “First Merger”). Immediately following the First Merger, Pre-Merger Spyre merged with and into Second Merger Sub, pursuant to which Second Merger Sub became the surviving entity. Pre-Merger Spyre was a pre-clinical stage biotechnology company that was incorporated on April 28, 2023 under the direction of Peter Harwin, a Managing Member of Fairmount, for the purpose of holding rights to certain intellectual property being developed by Paragon. Fairmount is a founder of Paragon.
The Company completed the Asset Acquisition of Pre-Merger Spyre, in accordance with the terms of the Acquisition Agreement. Under the terms of the Acquisition Agreement, the Company issued 517,809 shares of Common Stock and 364,887 shares of Series A Preferred Stock to former Pre-Merger Spyre security holders. In addition, outstanding and unexercised stock options to purchase 2,734 shares of common stock were assumed from the Amended and Restated Spyre 2023 Equity Incentive Plan.
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At the acquisition date, the Company recorded forward contracts to represent the obligation to issue shares of Common Stock and shares of Series A Preferred Stock, respectively. The forward contract related to the Common Stock was recorded as Additional paid-in capital as the instrument is indexed to the Common Stock. The forward contract related to the Series A Preferred Stock was recorded as a liability, as the underlying stock has a cash redemption feature. On July 7, 2023, both the shares of Common Stock and Series A Preferred Stock were issued and the forward contract liability associated with the Series A Preferred Stock was settled accordingly.
The Company concluded that the arrangement met the definition of an asset acquisition rather than a business combination, as substantially all of the fair value of the gross assets acquired was concentrated in a single identifiable asset, Pre-Merger Spyre's option to exclusively license certain intellectual property rights (the "Option"). The Company determined that the Option was a single asset as the Company's strategy relied on developing the entire portfolio of individual treatments to create combination treatments that simultaneously address different mechanisms of inflammatory bowel disease with a single treatment. The Company also determined that the pipeline candidates within the portfolio were similar in nature and risk profile. In addition, the Company did not obtain any substantive processes, assembled workforce, or employees capable of producing outputs in connection with the Asset Acquisition.
The Company determined that the cost to acquire the asset was $113.3 million which was recorded as acquired in-process research and development ("IPR&D"). The fair value of the consideration issued consisted of the 364,887 shares of Series A Preferred Stock (14,595,480 shares of Common Stock on an as-converted basis) and 517,809 shares of Common Stock, valued at $291.08 per share and $7.277 per share, respectively.
The Asset Acquisition costs are shown on the following table (in millions):
June 22,
2023
Consideration transferred in Series A Preferred Stock and Common Stock$110.0 
Transaction costs incurred by Pre-Merger Spyre3.2 
Fair value of Parapyre Option Obligation assumed by Pre-Merger Spyre0.1 
Total cost to acquire asset$113.3 
The allocation of the purchase price to net assets acquired is as a follows:
June 22,
2023
Acquired in-process research and development$130.5 
Cash acquired3.0 
Assumed liabilities(20.2)
Total cost to acquire asset$113.3 
7. Licensing Agreements
On July 12, 2023, December 14, 2023, and June 5, 2024, the Company exercised the Option available under the Paragon Agreement with respect to the SPY001, SPY002, and SPY003 research programs, respectively.
On May 14, 2024, the Company and Paragon entered into (i) a license agreement (the “SPY001 License Agreement”), pursuant to which Paragon granted the Company a royalty-bearing, world-wide, exclusive license to develop, manufacture, commercialize or otherwise exploit certain antibodies and products targeting α4ß7 integrin and (ii) a license agreement (the “SPY002 License Agreement” and, together with the SPY001 License Agreement, the “License Agreements”), pursuant to which Paragon granted the Company a royalty-
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bearing, world-wide, exclusive license to develop, manufacture, commercialize or otherwise exploit certain licensed antibodies and products targeting TL1A, respectively.
Under the terms of each License Agreement, the Company is obligated to pay Paragon up to $22.0 million based on specific development, regulatory and clinical milestones for each licensed research program, including a $1.5 million fee for nomination of a development candidate, as applicable, and a further milestone payment of $2.5 million upon the first dosing of a human patient in a Phase 1 trial. In addition, the following summarizes other key terms of each License Agreement:
•Paragon will provide the Company with an exclusive license to its patents covering the related antibody, the method of use and its method of manufacture.
•Paragon will not conduct any new campaigns that generate anti-α4ß7 or anti-TL1A monospecific antibodies for at least 5 years.
•The Company will pay Paragon a low single-digit percentage royalty for single antibody products and a mid single-digit percentage royalty for products containing more than one antibody from Paragon.
•There is a royalty step-down of 1/3rd if there is no Paragon patent in effect during the royalty term.
•The royalty term ends on the later of (i) the last-to-expire licensed patent or Company patent directed to a derived antibody or (ii) 12 years from the date of first sale of a Company product.
•Agreement may be terminated on 60 days’ notice by the Company; on material breach without cure; and to the extent permitted by law, on a party’s insolvency or bankruptcy.
•With respect to the SPY002 License Agreement only, on a product by product basis, the Company will pay sublicensing fees of up to approximately $20 million upon the achievement of mostly commercial milestones.
The SPY003 license agreement remains under negotiation as of the date of these consolidated financial statements.
The Company recognizes the expense associated with each milestone when the achievement of the milestone is deemed probable. During the three and six months ended June 30, 2024, the Company recognized $5.5 million of expense related to Paragon license milestone payments recorded within Research and development expenses in the accompanying condensed statement of operations for the three and six months ended June 30, 2024. There was no such expense for the three and six months ended June 30, 2023.
For the three and six months ended June 30, 2024, the Company made milestone payments totaling $3.0 million to Paragon. As of June 30, 2024, $2.5 million of Paragon license milestone payments were outstanding and payable to Paragon.
Additionally, the Company recognized and paid $0.1 million related to sublicensing fees and which was recorded as Research and development expenses in the accompanying condensed statement of operations for the three and six months ended June 30, 2024.
8. Related Party Transactions
Paragon and Parapyre each beneficially own less than 5% of the Company's capital stock through their respective holdings of the Company's Common Stock. Fairmount Funds Management LLC ("Fairmount") beneficially owns more than 5% of the Company's capital stock on an as-converted basis, has two seats on the Company's board of directors (the "Board") and beneficially owns more than 5% of Paragon, which is a joint venture between Fairmount and FairJourney Biologics. Fairmount appointed Paragon's board of directors and
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has the contractual right to approve the appointment of any executive officers. Parapyre is an entity formed by Paragon as a vehicle to hold equity in Spyre in order to share profits with certain employees of Paragon.
The following is the summary of expenses related to the Paragon Agreement and License Agreements, which were ultimately settled in cash (in millions) and recorded within Research and development in the consolidated statement of operations for the periods presented:
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Reimbursable costs under the Paragon Agreement$2.3 $1.2 $14.0 $1.2 
License Agreements milestone and sublicensing fees5.6 — 5.6 — 
Total related party expense$7.9 $1.2 $19.6 $1.2 
The following is the summary of Related party accounts payable and other current liabilities (in millions):
June 30,
2024		December 31,
2023
Reimbursable costs under the Paragon Agreement$1.2 $16.6 
Parapyre warrants liability6.9 — 
License Agreements development milestone liability (see Note 7)2.5 — 
Total related party accounts payable$10.6 $16.6 
Paragon Agreement
In connection with the Asset Acquisition, the Company assumed the rights and obligations of Pre-Merger Spyre under the Paragon Agreement. Under the Paragon Agreement, Spyre is obligated to compensate Paragon for its services performed under each research program based on the actual costs incurred with mark-up costs pursuant to the terms of the Paragon Agreement. Spyre is also obligated under the Paragon Agreement to issue Parapyre annual equity grants of warrants in accordance with the Parapyre Option Obligation.
For the three and six months ended June 30, 2024, the Company recognized expenses related to services provided by Paragon subsequent to the Asset Acquisition totaling $9.7 million and $26.8 million, respectively, which included $1.5 million and $6.9 million, respectively, of stock-based compensation expense, and were recorded as Research and development expenses in the consolidated statements of operations.
For the three and six months ended June 30, 2024, the Company made payments totaling $11.3 million and $29.5 million respectively, in connection with the Paragon Agreement.
On July 12, 2023, December 14, 2023, and June 5, 2024, the Company exercised the Option available under the Paragon Agreement with respect to the SPY001, SPY002 and SPY003 research programs, respectively. Our Option available under the Paragon Agreement with respect to the SPY004 program remains unexercised. Please refer to Note 7 for additional information on the License Agreements related to the exercised options.
On May 14, 2024, the Company, Paragon and Parapyre entered into a second amended and restated antibody discovery and option agreement that amends and restates that certain amended and restated antibody discovery and option agreement, dated September 29, 2023, by and between Paragon, Parapyre and Spyre Therapeutics, LLC, in order to, among other things, (i) replace the Company’s subsidiary with the Company as a party to the agreement and (ii) amend certain terms related to the SPY003 research program, including without limitation, (a) establishing an SPY003 antibody selection process pursuant to which the Company and Paragon shall alternate in turn to select a project antibody to be included and excluded, respectively, from the Company’s rights under its option to license certain intellectual property rights related to SPY003 from Paragon until all project antibodies under the SPY003 research program have been selected; (b) reducing the development costs invoiced to the Company for the SPY003 research program incurred from and after April 1, 2024 through completion of the SPY003 antibody selection process by 50%; (c) requiring Paragon to reimburse the Company
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for 50% of the development costs for the SPY003 research program incurred prior to April 1, 2024; provided, that Paragon receives rights to at least one SPY003 project antibody following completion of the SPY003 antibody selection process; (d) obligating the Company to exercise its option to license the intellectual property rights to SPY003 project antibodies and technology following the completion of the SPY003 antibody selection process; and (e) establishing a license agreement term sheet for the SPY003 research program with substantially similar milestone payment terms and royalty payment terms as the SPY001 License Agreement. Please refer to Note 7 for additional disclosures.
During the second quarter of 2024, the SPY003 antibody selection process was completed and the Company recognized a $5.9 million receivable and a corresponding reduction in Research and development expenses in its condensed consolidated statements of operations for the three and six ended June 30, 2024. As of June 30, 2024, the $5.9 million receivable was outstanding and included as a reduction to Related party accounts payable and other current liabilities on the Company's consolidated balance sheet.
Parapyre Option Obligation
Pursuant to the Paragon Agreement, the Company agreed to issue Parapyre an annual equity grant of warrants, on the last business day of each of the years ended December 31, 2023 and December 31, 2024, to purchase 1% of the then outstanding shares of the Company's Common Stock, on a fully diluted basis, during the term of the Paragon Agreement.
Paragon License Agreements
See Note 7 for disclosures related to the License Agreements entered into with Paragon.
Mark McKenna Option Grant
On February 1, 2024, the Board appointed Mark McKenna as a Class I director. Mr. McKenna and the Company are parties to a consulting agreement, pursuant to which Mr. McKenna agreed to continue to provide consulting services as an independent contractor to the Company, with an effective date of August 1, 2023 (the “Vesting Commencement Date”). As compensation for Mr. McKenna’s consulting services, on November 22, 2023, he was granted non-qualified stock options to purchase 477,000 shares of the Company’s Common Stock under the 2016 Plan (as defined in Note 8) with an exercise price of $10.39 per share, which vest as to 25% on the one year anniversary of the Vesting Commencement Date and thereafter vest and become exercisable in 36 equal monthly installments, subject to Mr. McKenna’s continued service to the Company through each applicable vesting date. For the three and six months ended June 30, 2024, the Company recognized $0.2 million and $0.5 million, respectively, in stock-based compensation expense related to Mr. McKenna's consulting agreement. There was no such expense for the three and six months ended June 30, 2023.
9. Convertible Preferred Stock and Stockholders’ Equity
Pre-Funded Warrants
In February 2019, April 2020 and May 2022, the Company issued pre-funded warrants to purchase the Company’s Common Stock in underwritten public offerings at the offering price of the Common Stock, less the $0.0025 per share exercise price of each warrant. The warrants were recorded as a component of stockholders’ (deficit) equity within additional paid-in capital and have no expiration date. Per the terms of the warrant agreements, the outstanding warrants to purchase shares of Common Stock may not be exercised if the holder’s ownership of the Company’s Common Stock would exceed 4.99% (“Maximum Ownership Percentage”), or 9.99% for certain holders. By written notice to the Company, each holder may increase or decrease the Maximum Ownership Percentage to any other percentage (not in excess of 19.99% for the majority of such warrants). The revised Maximum Ownership Percentage would be effective 61 days after the notice is received by the Company.
As of June 30, 2024, all pre-funded warrants have been exercised and none remain outstanding.
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Parapyre Warrants
The Company settled its 2023 obligations under the Parapyre Option Obligation by issuing Parapyre 684,407 warrants to purchase the Company's Common Stock, with a $21.52 per share exercise price for each warrant. Pursuant to the terms of the warrant agreement, the outstanding warrants to purchase shares of Common Stock may not be exercised if the holder’s ownership of the Company’s Common Stock would exceed 4.99%. As of June 30, 2024, none of the warrants issued under the Parapyre Option Obligation have been exercised.
Series A Non-Voting Convertible Preferred Stock
On June 22, 2023, the Company filed a Certificate of Designation of Preferences, Rights and Limitations of the Series A Preferred Stock with the Secretary of State of the State of Delaware (the “Series A Certificate of Designation”) in connection with the Asset Acquisition and the June 2023 PIPE.
Pursuant to the Series A Certificate of Designation, holders of Series A Preferred Stock are entitled to receive dividends on shares of Series A Preferred Stock equal to, on an as-if-converted-to-Common Stock basis, and in the same form as, dividends actually paid on shares of Common Stock. Except as provided in the Series A Certificate of Designation or as otherwise required by law, the Series A Preferred Stock does not have voting rights. However, as long as any shares of Series A Preferred Stock are outstanding, the Company will not, without the affirmative vote of the holders of a majority of the then outstanding shares of the Series A Preferred Stock: (a) alter or change adversely the powers, preferences or rights given to the Series A Preferred Stock, or alter or amend the Series A Certificate of Designation, amend or repeal any provision of, or add any provision to, the Company’s Certificate of Incorporation or its Bylaws, or file any articles of amendment, certificate of designations, preferences, limitations and relative rights of any series of preferred stock, if such action would adversely alter or change the preferences, rights, privileges or powers of, or restrictions provided for the benefit of the Series A Preferred Stock, regardless of whether any of the foregoing actions will be by means of amendment to the Certificate of Incorporation or by merger, consolidation, recapitalization, reclassification, conversion or otherwise, (b) issue further shares of Series A Preferred Stock or increase or decrease (other than by conversion) the number of authorized shares of Series A Preferred Stock, (c) prior to the stockholder approval of the conversion of the Series A Preferred Stock into shares of Common Stock in accordance with Nasdaq Stock Market Rules (the “Series A Conversion Proposal”) or at any time while at least 30% of the originally issued Series A Preferred Stock remains issued and outstanding, consummate (x) any Fundamental Transaction (as defined in the Series A Certificate of Designation) or (y) any merger or consolidation of the Company with or into another entity or any stock sale to, or other business combination in which our stockholders immediately before such transaction do not hold at least a majority of our capital stock immediately after such transaction or (d) enter into any agreement with respect to any of the foregoing. The Series A Preferred Stock does not have a preference upon any liquidation, dissolution or winding-up of the Company.
On June 26, 2023, the Company completed a private placement of 721,452 shares of Series A Preferred Stock in exchange for gross proceeds of approximately $210.0 million, or net proceeds of $197.3 million, after deducting placement agent and other offering costs.
On July 7, 2023, the Company issued 364,887 shares of Series A Preferred Stock as part of its consideration transferred in connection with the Asset Acquisition that closed on June 22, 2023 which settled the related forward contract liability.
On November 21, 2023, the Company's stockholders approved the Series A Conversion Proposal, among other matters, at a special meeting of stockholders. As a result of the approval of the Series A Conversion Proposal, all conditions that could have required cash redemption of the Series A Preferred Stock were satisfied. Since the Series A Preferred Stock is no longer redeemable, the associated balances of the Series A Preferred Stock were reclassified from mezzanine equity to permanent equity during the fourth quarter of 2023.
Following stockholder approval of the Series A Conversion Proposal, each share of Series A Preferred Stock automatically converted into 40 shares of Common Stock, subject to certain limitations, including that a holder of Series A Preferred Stock is prohibited from converting shares of Series A Preferred Stock into shares
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of Common Stock if, as a result of such conversion, such holder, together with its affiliates, would beneficially own more than a specified percentage (established by the holder between 0.0% and 19.9%) of the total number of shares of Common Stock issued and outstanding immediately after giving effect to such conversion. 649,302 shares of Series A Preferred Stock automatically converted to 25,972,080 shares of Common Stock; 437,037 shares of Series A Preferred Stock did not automatically convert and remained outstanding following the conversion. This conversion was recorded as a reclassification between Series A Preferred Stock and Common Stock based on the historical per-share contributed capital amount of the Series A Preferred Stock.
On April 23, 2024, in connection with the April 2024 Exchange, the Stockholder agreed to exchange an aggregate of 90,992 shares of Series A Preferred Stock for an aggregate of 3,639,680 shares of the Company's Common Stock. This exchange was recorded as a reclassification between Series A Preferred Stock and Common Stock based on the historical per-share contributed capital amount, inclusive of any forward-contract valuation adjustments, of the Series A Preferred Stock. Following the April 2024 Exchange, 346,045 shares of Series A Preferred Stock remained outstanding.
Series B Non-Voting Convertible Preferred Stock
On December 8, 2023, the Company filed a Certificate of Designation of Preferences, Rights and Limitations of Series B Non-Voting Convertible Preferred Stock with the Secretary of State of the State of Delaware (the “Series B Certificate of Designation”) in connection with the December 2023 PIPE.
Pursuant to the Series B Certificate of Designation, holders of Series B Preferred Stock are entitled to receive dividends on shares of Series B Preferred Stock equal to, on an as-if-converted-to-Common Stock basis, and in the same form as, dividends actually paid on shares of Common Stock. Except as provided in the Series B Certificate of Designation or as otherwise required by law, the Series B Preferred Stock does not have voting rights. However, as long as any shares of Series B Preferred Stock are outstanding, the Company will not, without the affirmative vote of the holders of a majority of the then outstanding shares of the Series B Preferred Stock, alter or change adversely the powers, preferences or rights given to the Series B Preferred Stock, or alter or amend the Series B Certificate of Designation, amend or repeal any provision of, or add any provision to, the Company’s Certificate of Incorporation or its Bylaws, or file any articles of amendment, certificate of designations, preferences, limitations and relative rights of any series of preferred stock, if such action would adversely alter or change the preferences, rights, privileges or powers of, or restrictions provided for the benefit of the Series B Preferred Stock, regardless of whether any of the foregoing actions will be by means of amendment to the Certificate of Incorporation or by merger, consolidation, recapitalization, reclassification, conversion or otherwise. The Series B Preferred Stock does not have a preference upon any liquidation, dissolution or winding-up of the Company.
On December 11, 2023, as part of the December 2023 PIPE, the Company completed a private placement of 150,000 shares of Series B Preferred Stock in exchange for gross proceeds of $90.0 million.
On March 18, 2024, in connection with the March 2024 PIPE, the Company filed a certificate of amendment to its Series B Certificate of Designation to increase the number of authorized shares of Series B Preferred Stock from 150,000 to 271,625.
On March 20, 2024, as part of the March 2024 PIPE, the Company completed a private placement of 121,625 shares of Series B Preferred Stock in exchange for gross proceeds of approximately $180.0 million.
On May 14, 2024, the Company's stockholders approved the issuance of Common Stock upon the conversion of all issued and outstanding Series B Preferred Stock into shares of Common Stock in accordance with the Nasdaq Stock Market Rules (the "Series B Conversion Proposal"), among other matters, at its 2024 annual meeting of stockholders. As a result of the approval of the Series B Conversion Proposal, all conditions that could have required cash redemption of the Series B Preferred Stock were satisfied. Since the Series B Preferred Stock is no longer redeemable, the associated balances of the Series B Preferred Stock were reclassified from mezzanine equity to permanent equity during the second quarter of 2024.
Following stockholder approval of the Series B Conversion Proposal, each share of Series B Preferred Stock automatically converted into 40 shares of the Common Stock, subject to certain limitations, including that a holder of Series B Preferred Stock is prohibited from converting shares of Series B Preferred Stock into
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shares of Common Stock if, as a result of such conversion, such holder, together with its affiliates, would beneficially own more than a specified percentage (established by the holder between 0.0% and 19.9%) of the total number of shares of Common Stock issued and outstanding immediately after giving effect to such conversion. 254,958 shares of Series B Preferred Stock automatically converted to 10,198,320 shares of Common Stock; 16,667 shares of Series B Preferred Stock did not automatically convert and remain outstanding as of June 30, 2024 due to beneficial ownership limitations. This conversion was recorded as a reclassification between Series B Preferred Stock and Common Stock based on the historical per-share contributed capital amount of the Series B Preferred Stock.
10. Stock-Based Compensation
2015 Equity Incentive Plan
In March 2015, the Company adopted the 2015 Equity Incentive Plan (“2015 Plan”), administered by the board of directors, and provides for the Company to sell or issue share of Common Stock or restricted Common Stock, or to grant incentive stock options or nonqualified stock options for the purchase of Common Stock, to employees, members of the board of directors and consultants of the Company. The Company granted options under the 2015 Plan until April 2016 when it was terminated as to future awards, although it continues to govern the terms of options that remain outstanding under the 2015 Plan.
As of June 30, 2024, a total of 3,029 shares of Common Stock are subject to options outstanding under the 2015 Plan and will become available under the 2016 Equity Incentive Plan (“2016 Plan”) to the extent the options are forfeited or lapse unexercised.
2016 Equity Incentive Plan
The 2016 Plan became effective in April 2016 and serves as the successor to the 2015 Plan. Under the 2016 Plan, the Company may grant stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance awards, and stock bonuses. The 2016 Plan, as amended, provides for an automatic increase in the number of shares reserved for issuance thereunder on January 1 of each year for the remaining term of the plan equal to (a) 5.0% of the number of issued and outstanding shares of Common Stock (including such shares issuable pursuant to the exercise or conversion, as applicable, of any outstanding pre-funded warrants and nonvoting convertible preferred stock) on December 31 of the immediately preceding year, or (b) a lesser amount as approved by the board each year (the “Evergreen Provision”). As a result of the Evergreen Provision, on January 1, 2024 and 2023, an additional 3,023,650 and 104,561 shares, respectively, became available for issuance under the 2016 Plan.
As of June 30, 2024, the 2016 Plan had 7,336,181 shares available for future issuance, of which 3,024,766 shares were subject to outstanding option awards.
2018 Equity Inducement Plan
The 2018 Equity Inducement Plan (“2018 Plan”) became effective in February 2018.
As of June 30, 2024, the 2018 Plan had 6,028,000 shares available for future issuance, of which 5,682,341 shares were subject to outstanding option awards and restricted unit awards.
Service-based awards granted under the 2018 Plan, 2016 Plan, and 2015 Plan generally vest over four years and expire after ten years, although awards have been granted with vesting terms less than four years. Under the 2016 Plan and 2018 Plan, the Company may grant stock-based awards with service conditions (“service-based” awards), performance conditions (“performance-based” awards), and market conditions (“market-based” awards).
Spyre 2023 Equity Incentive Plan
On June 22, 2023, in connection with the Asset Acquisition, the Company assumed the Amended and Restated Spyre 2023 Equity Incentive Plan and its outstanding and unexercised stock options, which were
21

converted to options to purchase 2,734 shares of Common Stock. The acquisition-date fair value of these grants will be recognized as an expense on a pro-rata basis over the vesting period.
The following table summarizes the Company’s stock awards granted under all equity incentive and inducement plans for each of the periods indicated:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
GrantsWeighted Average Grant Date Fair ValueGrantsWeighted Average Grant Date Fair ValueGrantsWeighted Average Grant Date Fair ValueGrantsWeighted Average Grant Date Fair Value
Stock options387,695$36.42 2,536,697$7.50 1,432,353$29.19 2,714,317$7.75 
Parapyre Option Obligation
As of June 30, 2024, the pro-rated estimated fair value of the options to be granted on December 31, 2024 related to the Parapyre Option Obligation, was approximately $6.9 million. For the three and six months ended June 30, 2024, $1.5 million and $6.9 million was recognized as stock compensation expense related to the Parapyre Option Obligation. For the three and six months ended June 30, 2023, $0.2 million was recognized as stock compensation expense related to the Parapyre Option Obligation. As of June 30, 2024, the unamortized expense related to the Parapyre Option Obligation was $7.0 million.
2016 Employee Stock Purchase Plan
Under the Company’s 2016 Employee Stock Purchase Plan (“2016 ESPP”), the Company issued and sold 2,330 and 1,793 shares during the six months ended June 30, 2024 and June 30, 2023, respectively. The aggregate cash proceeds were not material for both periods.
Stock-based Compensation Expense
Total stock-based compensation expense recognized from the Company’s equity incentive plans, 2018 Plan, 2016 ESPP and Parapyre Option Obligation during the periods presented was as follows (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Research and development (1)
$3,451 $394 $10,308 $1,171 
General and administrative5,231 1,517 12,209 2,449 
Total stock-based compensation expense (2)
$8,682 $1,911 $22,517 $3,620 
(1) For the three and six months ended June 30, 2024, $1.5 million and $6.9 million, respectively, was recognized as stock compensation expense related to the Parapyre Option Obligation. For the three and six months ended June 30, 2023, $0.2 million was recognized as stock compensation expense related to the Parapyre Option Obligation.
(2) Of the total $8.7 million and $22.5 million of stock-based compensation expense for the three and six months ended June 30, 2024, $0.7 million and $3.8 million, respectively, is related to legacy Aeglea employees and directors who had been terminated as of the end of the respective period. Of the total $1.9 million and $3.6 million of stock-based compensation expense for the three and six months ended June 30, 2023, $1.8 million and $3.5 million, respectively, is related to legacy Aeglea employees and directors who had been terminated as of the end of the period.

22

The following table summarizes the weighted-average Black-Scholes option pricing model assumptions used to estimate the fair value of stock options granted under the Company's equity incentive plans, and the shares purchasable under the 2016 ESPP during the periods presented:
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Stock Options Granted
Expected term (in years)5.926.036.006.03
Expected volatility104%117%105%115%
Risk-free interest4.35%3.98%4.01%3.99%
Dividend yield————
 
2016 ESPP
Expected term (in years)0.500.49
Expected volatility98%181%
Risk-free interest5.31%4.99%
Dividend yield——
11. Legacy Strategic License Agreements
On March 21, 2021, the Company entered into an exclusive license and supply agreement with Immedica (the "Immedica Agreement"). On July 27, 2023, the Company announced that it had entered into an agreement to sell the global rights to pegzilarginase, an investigational treatment for the rare metabolic disease Arginase 1 Deficiency, to Immedica for $15.0 million in upfront cash proceeds and up to $100.0 million in contingent milestone payments. The sale of pegzilarginase to Immedica superseded and terminated the Immedica Agreement.
The milestone payments are contingent on formal reimbursement decisions by national authorities in key European markets and pegzilarginase approval by the FDA, among other events. In addition to the payment previously made to holders of the Company's CVRs (as defined in Note 1) related to the upfront cash proceeds, any contingent milestone payments under the Immedica Agreement, if paid within the CVR period, will be distributed to holders of the Company's CVRs net of expenses and adjustments pursuant to the contingent value rights agreement we entered into with Equiniti Trust Company LLC (f/k/a American Stock Transfer & Trust Company LLC) as rights agent in connection with the Asset Acquisition.
The Company did not recognize any revenue under the Immedica Agreement for the three and six months ended June 30, 2024. For the three and six months ended June 30, 2023, the Company recognized $0.7 million and $0.9 million, respectively, of development fee revenue in connection with the Immedica Agreement, which was attributable to the PEACE Phase 3 trial and BLA package for pegzilarginase.
For more details on the Immedica Agreement, which was terminated on July 27, 2023, please refer to the Note under Item 1 of Part I, titled "12. Strategic License Agreements" of the Company's Annual Report.
Contract Balances from Customer Contract
The timing of revenue recognition, billings and cash collections results in contract assets and contract liabilities on the Company's balance sheets. The Company recognizes license and development receivables based on billed services, which are derecognized upon reimbursement. When consideration is received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue after control of the goods or services is transferred to the customer and all revenue recognition criteria have been met.
23

The Company did not have any contract assets or liabilities as of June 30, 2024 and December 31, 2023.
12. Net Loss Per Share (as restated)
Restatement
Subsequent to the filing of its Quarterly Report on Form 10-Q for the period ended September 30, 2024, management identified an error related to the calculation and presentation of loss per share. The Company had previously concluded that the Series A Preferred Stock and Series B Preferred Stock had preferences over the Company's Common Stock and were therefore excluded from the calculation of basic and dilutive net loss per share pursuant to the two-class method. The Company has now determined that the Series A Preferred Stock and Series B Preferred Stock do not have preferential rights over the Company’s Common Stock and, accordingly, are considered to be a second and third class of common stock for purposes of calculating net loss per share. Consequently, the Company has now separately calculated and presented net loss per share for its Common Stock, Series A Preferred Stock and Series B Preferred Stock.
For the three months ended June 30, 2024 and 2023, loss per share attributable to common stockholders as previously presented was $0.86 and $56.79, respectively, and as restated was $0.59 and $40.14, respectively. For the six months ended June 30, 2024 and 2023, loss per share attributable to common stockholders as previously presented was $2.02 and $62.03, respectively, and as restated was $1.31 and $51.26, respectively. Net loss per share attributable to holders of Series A Preferred Stock and Series B Preferred Stock was not previously presented. All related amounts have been updated to reflect the effects of the restatement throughout the financial statements and related footnotes, as applicable.
The Company computes net loss per share of Common Stock, Series A Preferred Stock, and Series B Preferred Stock using the two-class method required for multiple classes of common stock and other participating securities.
The two-class method is an earnings (loss) allocation method under which earnings (loss) per share is calculated for each class of common stock. The Company has determined that the Series A Preferred Stock and Series B Preferred Stock do not have preferential rights when compared to the Company's Common Stock and therefore it must allocate losses to these other classes of common stock, as illustrated in the table below.
Basic and diluted net loss per share is computed by dividing the net loss by the weighted-average number of shares and pre-funded warrants outstanding during the period, without consideration of potential dilutive securities. The pre-funded warrants are included in the computation of basic net loss per share as the exercise price is negligible and they are fully vested and exercisable. For periods in which the Company generated a net loss, the Company does not include potential shares of common stock in diluted net loss per share when the impact of these items is anti-dilutive. The Company has generated a net loss for all periods presented, therefore diluted net loss per share is the same as basic net loss per share since the inclusion of potential shares of common stock would be anti-dilutive.
24

The following table sets forth the computation of basic and diluted net loss per share of Common Stock, Series A Preferred Stock, and Series B Preferred Stock (in thousands, except share and per share amounts):
Three Months Ended June 30,
20242023
Series A Preferred Stock
Series B Preferred Stock
Common
Stock		Series A Preferred StockSeries B Preferred StockCommon
Stock
Net loss per share, basic and diluted:
Numerator
Allocation of losses$(8,714)$(3,370)$(26,753)$(63,645)$— $(153,436)
Denominator
Weighted-average shares outstanding369,043142,74545,214,61639,640 — 2,711,439
Weighted-average pre-funded warrants outstanding— — 101,648 — — 1,111,166 
Number of shares used in per share computation369,043142,74545,316,26439,640 — 3,822,605
Net loss per share, basic and diluted$(23.61)$(23.61)$(0.59)$(1,605.58)$— $(40.14)
Six Months Ended June 30,
20242023
Series A Preferred Stock
Series B Preferred Stock
Common
Stock		Series A Preferred StockSeries B Preferred StockCommon
Stock
Net loss per share, basic and diluted:
Numerator
Allocation of losses$(21,089)$(8,084)$(53,521)$(40,867)$— $(194,636)
Denominator
Weighted-average shares outstanding403,040154,50340,738,63919,930 — 2,663,408
Weighted-average pre-funded warrants outstanding— — 175,824 — — 1,133,291 
Number of shares used in per share computation403,040154,50340,914,46319,930 — 3,796,699 
Net loss per share, basic and diluted$(52.32)$(52.32)$(1.31)$(2,050.53)$— $(51.26)
The following weighted-average equity instruments were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented:
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Options to purchase common stock5,010,436654,5274,526,643557,515
Unvested restricted stock units79,870—71,368381
Outstanding Parapyre warrants684,407—684,407—
13. Restructuring Charges
Severance and Stock Compensation
On April 12, 2023, based on the review of the inconclusive interim results from the Company's Phase 1/2 clinical trial of pegtarviliase for the treatment of classical homocystinuria and other business considerations, the Company announced that it had initiated a process to explore strategic alternatives to maximize stockholder value and engaged an independent exclusive financial advisor to support this process.
25

As a result, the Company implemented a restructuring plan resulting in an approximate 83% reduction of the Company’s existing headcount by June 30, 2023. The Company recognized restructuring expenses consisting of cash severance payments and other employee-related costs of $6.4 million during the three and six months ended June 30, 2023, respectively. In addition, the Company recognized $1.0 million in non-cash stock-based compensation expense related to the accelerated vesting of stock-based awards for certain employees. The Company recorded these restructuring charges based on each employee’s role to the respective research and development and general and administrative operating expense categories on its condensed consolidated statements of operations and comprehensive loss.
Sale of Assets
During the second quarter of 2023, the Company sold various lab equipment, consumables, and furniture and fixtures for total consideration of $0.5 million. After recording the disposal of all property and equipment net of proceeds, the Company recorded a $0.7 million and $0.2 million loss on disposal of long lived assets which is included in Research and development and General and administrative expenses, respectively.
Lease Right-of-use Asset and Leasehold Improvement Impairment
Effective June 30, 2023, the Company abandoned its leased office space in Austin, Texas. As a result, the Company recognized an impairment loss of $0.9 million related to the operating lease right-of-use asset and $1.7 million related to leasehold improvements. On August 7, 2023, the Company terminated its building lease in Austin, Texas. The negotiated termination agreement obligated the Company to pay the lessor a $2.0 million termination fee in exchange for releasing the Company of all further obligations under the lease.
All charges related to the restructuring activities were recognized during the second quarter of 2023. No further restructuring charges were incurred under the restructuring plan. A summary of the charges related to the restructuring activities is as follows (in thousands):
Severance Related ExpensesStock Compensation ExpensesLoss on Disposal of Long Lived AssetsLease Asset ImpairmentTotal Restructuring Costs
Research and development$3,182 $123 $749 $1,405 $5,459 
General and administrative3,266 870 182 1,175 5,493 
Total$6,448 $993 $931 $2,580 $10,952 
As of December 31, 2023, $1.1 million of restructuring costs remained outstanding and unpaid. As of June 30, 2024, there were no remaining liabilities under the restructuring plan described above.
Item 4. Controls and Procedures.
Disclosure Controls and Procedures
Our management, with the participation of our principal executive officer and principal financial officer, evaluated, as of the end of the period covered by this Quarterly Report on Form 10-Q, the effectiveness of our disclosure controls and procedures. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and our management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
At the time the Company filed the Original Filing, our principal executive officer and principal financial officer concluded that the Company’s disclosure controls and procedures were effective at the reasonable
26

assurance level as of June 30, 2024. Subsequent to the Original Filing and solely in connection with this Amendment, our principal executive officer and principal financial officer reevaluated the effectiveness of the Company’s disclosure controls and procedures and identified a material weakness in the Company’s internal control over financial reporting the Company did not design and maintain effective controls related to the earnings per share calculation. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of a company’s annual or interim financial statements will not be prevented or detected on a timely basis.
Specifically, subsequent to the Original Filing, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were not effective as of June 30, 2024 as the Company did not design and maintain effective controls related to the earnings per share calculation, as there was not an effectively designed control in place to evaluate the treatment of the Series A Preferred Stock and the Series B Preferred Stock for the purpose of calculating earnings per share under the two-class method. The material weakness resulted in the restatement of the Company’s previously filed consolidated financial statements as of and for the year ended December 31, 2023, as well as the quarterly condensed consolidated financial information for the 2024 interim periods ended March 31, 2024, June 30, 2024, and September 30, 2024 related to earnings per share. Additionally, the material weakness could result in further misstatements of the earnings per share calculation that would result in a material misstatement to the annual or interim financial statements that would not be prevented or detected.
Notwithstanding the material weakness in internal control over financial reporting, our management, including our principal executive officer and the principal financial officer, have concluded that our consolidated financial statements present fairly, in all material respects, our financial position, results of our operations and our cash flows for the periods presented in this Quarterly Report, in conformity with U.S. GAAP.
Remediation Plan
Our remediation process includes, but is not limited to, enhancing the design of the control relevant to the calculation of net earnings (loss) per share calculations and disclosures to ensure that economic substance beyond the legal form of our capital structure is considered when calculating net earnings (loss) per share. We believe that these actions will remediate the material weakness. The material weakness will not be considered remediated, however, until the applicable controls operate, and management has concluded, through testing, that these controls are operating effectively.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting during the quarter ended June 30, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
27

PART II. – Other Information
Item 6. Exhibits.
The exhibits filed or furnished as part of this Quarterly Report on Form 10-Q are set forth below.
Exhibit
Number		DescriptionFormFile No
Date of Filing
Exhibit
No.		Filed
Herewith
2.1
S-1
333-276251
12/22/20232.1 
3.1
8-K
001-37722
05/15/20243.2 
3.2S-1/A333-27625102/05/20243.2
3.3
S-1
333-27625112/22/20233.3 
3.4
S-1
333-27625112/22/20233.4 
3.58-K001-3772203/18/20243.2
10.1
8-K
001-37722
4/25/2024
10.1
10.2
10-Q
001-37722
05/09/2024
10.6
10.3#*
10.4#*
10.5#*
10.6+*
10.7+*
28

Exhibit
Number		DescriptionFormFile No
Date of Filing
Exhibit
No.		Filed
Herewith
31.1    X
31.2
X
32.1(1)X
101.INSInline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.X
101.SCHInline XBRL Taxonomy Extension Schema DocumentX
101.CALInline XBRL Taxonomy Extension Calculation Linkbase DocumentX
101.DEFInline XBRL Taxonomy Extension Definition Linkbase DocumentX
101.LABInline XBRL Taxonomy Extension Label Linkbase DocumentX
101.PREInline XBRL Taxonomy Extension Presentation Linkbase DocumentX
104
The cover page from this Quarterly Report formatted in Inline XBRL and contained in Exhibit 101
+    Indicates management contract or compensatory plan.
* Previously filed with the Original Filing
#    Portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv) of Regulation S-K.
(1)The certifications on Exhibit 32 hereto are deemed furnished and not “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that Section. Such certifications will not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act.
29

Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: November 18, 2024
Spyre Therapeutics, Inc.
 
By:
/s/ Scott Burrows
Scott Burrows
Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)
30

Exhibit 31.1
Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
I, Cameron Turtle, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q/A of Spyre Therapeutics, Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: November 18, 2024
/s/ Cameron Turtle, D.Phil
Cameron Turtle, D.Phil
Chief Executive Officer
(Principal Executive Officer)


Exhibit 31.2
Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
I, Scott Burrows, certify that:
1.I have reviewed this Quarterly Report on Form 10-Q/A of Spyre Therapeutics, Inc.;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: November 18, 2024
/s/ Scott Burrows
Scott Burrows
Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)


Exhibit 32.1
Certifications of the
Principal Executive Officer and Principal Financial Officer
Pursuant To 18 U.S.C. Section 1350,
As Adopted Pursuant To
Section 906 of The Sarbanes-Oxley Act Of 2002
In connection with the Quarterly Report of Spyre Therapeutics, Inc. (the “Company”) on Form 10-Q/A for the quarterly period ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of the Company hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:
1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: November 18, 2024
/s/ Cameron Turtle, D.Phil
Cameron Turtle, D.Phil
Chief Executive Officer
(Principal Executive Officer)
/s/ Scott Burrows
Scott Burrows
Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)

v3.24.3
Cover Page - shares
 6 Months Ended
Jun. 30, 2024
Aug. 01, 2024
Cover [Abstract]    
Document Type 10-Q/A  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2024  
Document Transition Report false  
Entity File Number 001-37722  
Entity Registrant Name SPYRE THERAPEUTICS, INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 46-4312787  
Entity Address, Address Line One 221 Crescent Street  
Entity Address, Address Line Two Building 23  
Entity Address, Address Line Three Suite 105  
Entity Address, City or Town Waltham  
Entity Address, State or Province MA  
Entity Address, Postal Zip Code 02453  
City Area Code 617  
Local Phone Number 651-5940  
Title of 12(b) Security Common Stock, $0.0001 Par Value Per Share  
Trading Symbol SYRE  
Security Exchange Name NASDAQ  
Entity Interactive Data Current Yes  
Entity Current Reporting Status Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   50,792,374
Amendment Description This Amendment No. 1 on Form 10-Q/A (this “Amendment”) amends the Quarterly Report on Form 10-Q of Spyre Therapeutics, Inc. (the “Company”) for the period ended June 30, 2024, as filed with the Securities and Exchange Commission on August 7, 2024 (the “Original Filing”).Subsequent to the filing of its Form 10-Q for the three and nine months ended September 30, 2024, the Company became aware of a misapplication of Generally Accepted Accounting Principles in the United States ("U.S. GAAP") as it relates to the Company's exclusion of its Series A non-voting convertible preferred stock and Series B non-voting convertible preferred stock in the calculation of basic and diluted net loss per share and a finding of a material weakness in internal control over financial reporting solely related to such matter. This Amendment is being filed for the sole purpose of amending certain disclosures from the Original Filing related to the aforementioned misapplication of U.S. GAAP and related finding of material weakness in internal control over financial reporting.Specifically, this Amendment amends: (i) Part I, Item 1. “Financial Information (unaudited)” to update the Company's Consolidated Statement of Operations and related footnote disclosures for the three and six months ended June 30, 2024, (ii) Part I, Item 4. "Controls and Procedures" to address management's re-evaluation of disclosure controls and procedures as of June 30, 2024 and to reflect the identification of a material weakness in our internal control over financial reporting and (iii) Part II, Item 6. "Exhibits" to include, in accordance with Rule 12b-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), updated certifications from our Chief Executive Officer and Chief Financial Officer as required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 as Exhibits 31.1, 31.2 and 32.1. In accordance with Rule 12b-15 under the Exchange Act, this Amendment amends and restates in their entirety each item identified in the paragraph above.Other than as described above, this Amendment does not amend, update or change any other items or disclosures contained in the Original Filing, and accordingly, all other information contained in this Amendment is as of the date of the original filing and does not reflect subsequent information or events beyond the original filing date, August 7, 2024. Accordingly, this Amendment should be read in conjunction with other filings made with the SEC subsequent to the filing of the Original Filing, including any amendments to those filings. Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Original Filing.  
Entity Central Index Key 0001636282  
Current Fiscal Year End Date --12-31  
Amendment Flag true  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q2  
v3.24.3
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
CURRENT ASSETS    
Cash and cash equivalents $ 45,144 $ 188,893
Marketable securities 380,851 150,384
Prepaid expenses and other current assets 9,741 2,251
Total current assets 435,736 341,528
Restricted cash 321 322
Other non-current assets 10 9
TOTAL ASSETS 436,067 341,859
CURRENT LIABILITIES    
Accounts payable 3,231 896
CVR liability 2,640 1,390
Accrued and other current liabilities 5,683 13,108
Total current liabilities 22,122 31,978
Non-current CVR liability 39,560 41,310
TOTAL LIABILITIES 61,682 73,288
Commitments and Contingencies (Note 7 and 8)
STOCKHOLDERS’ EQUITY    
Common stock, $0.0001 par value; 400,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 50,783,384 shares and 36,057,109 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively. 12 10
Additional paid-in capital 1,066,214 763,191
Accumulated other comprehensive (loss) income (553) 302
Accumulated deficit (847,108) (764,414)
TOTAL STOCKHOLDERS’ EQUITY 374,385 184,016
TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY 436,067 341,859
Series B Non Voting Convertible Preferred Stock    
CURRENT LIABILITIES    
Series B non-voting convertible preferred stock, $0.0001 par value; 150,000 shares authorized, issued, and outstanding as of December 31, 2023. 0 84,555
STOCKHOLDERS’ EQUITY    
Series A non-voting convertible preferred stock & preferred stock shares authorized, issued, and outstanding, value $ 9,395 0
Preferred stock, authorized (in shares) 271,625  
Preferred stock, issued (in shares) 16,667  
Preferred stock, outstanding (in shares) 16,667  
Series A Non Voting Convertible Preferred Stock    
STOCKHOLDERS’ EQUITY    
Series A non-voting convertible preferred stock & preferred stock shares authorized, issued, and outstanding, value $ 146,425 $ 184,927
Preferred stock, authorized (in shares) 1,086,341 1,086,341
Preferred stock, issued (in shares) 346,045 437,037
Preferred stock, outstanding (in shares) 346,045 437,037
Preferred Stock, Excluding Series A Non Voting Convertible Preferred Stock    
STOCKHOLDERS’ EQUITY    
Series A non-voting convertible preferred stock & preferred stock shares authorized, issued, and outstanding, value $ 0 $ 0
Preferred stock, authorized (in shares) 8,642,034 8,763,659
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding (in shares) 0 0
Related Party    
CURRENT LIABILITIES    
Related party accounts payable and other current liabilities $ 10,568 $ 16,584
v3.24.3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2024
Dec. 31, 2023
Stockholders' Equity, Number of Shares, Par Value and Other Disclosure [Abstract]    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, authorized (in shares) 400,000,000 400,000,000
Common stock, issued (in shares) 50,783,384 36,057,109
Common stock, outstanding (in shares) 50,783,384 36,057,109
Series B Non Voting Convertible Preferred Stock    
Temporary Equity [Abstract]    
Series B non-voting convertible preferred stock, par value (in dollars per share)   $ 0.0001
Series B non-voting convertible preferred stock, authorized (in shares)   150,000
Series B non-voting convertible preferred stock, issued (in shares)   150,000
Series B non-voting convertible preferred stock, outstanding (in shares)   150,000
Stockholders' Equity, Number of Shares, Par Value and Other Disclosure [Abstract]    
Preferred stock, par value (in dollars per share) $ 0.0001  
Preferred stock, authorized (in shares) 271,625  
Preferred stock, issued (in shares) 16,667  
Preferred stock, outstanding (in shares) 16,667  
Series A Non Voting Convertible Preferred Stock    
Stockholders' Equity, Number of Shares, Par Value and Other Disclosure [Abstract]    
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, authorized (in shares) 1,086,341 1,086,341
Preferred stock, issued (in shares) 346,045 437,037
Preferred stock, outstanding (in shares) 346,045 437,037
Preferred Stock, Excluding Series A Non Voting Convertible Preferred Stock    
Stockholders' Equity, Number of Shares, Par Value and Other Disclosure [Abstract]    
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, authorized (in shares) 8,642,034 8,763,659
Preferred stock, issued (in shares) 0 0
Preferred stock, outstanding (in shares) 0 0
v3.24.3
Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Revenue:        
Total revenue $ 0 $ 688 $ 0 $ 886
Operating expenses:        
Research and development [1] 32,636 17,386 67,564 31,162
General and administrative 11,511 12,062 24,357 17,290
Acquired in-process research and development 0 130,486 0 130,486
Total operating expenses 44,147 159,934 91,921 178,938
Loss from operations (44,147) (159,246) (91,921) (178,052)
Other income (expense):        
Interest income 5,920 350 10,352 770
Other expense, net (610) (8) (1,093) (80)
Total other income (expense) 5,310 (57,828) 9,259 (57,480)
Loss before income tax expense (38,837) (217,074) (82,662) (235,532)
Income tax (expense) benefit 0 (7) (32) 29
Net loss $ (38,837) $ (217,081) $ (82,694) $ (235,503)
Net loss per share, basic (in dollars per share) $ 0.59 $ 40.14 $ 1.31 $ 51.26
Net loss per share, diluted (in dollars per share) $ 0.59 $ 40.14 $ 1.31 $ 51.26
Weighted-average common shares outstanding, basic (in shares) 45,316,264 3,822,605 40,914,463 3,796,699
Weighted-average common shares outstanding, diluted (in shares) 45,316,264 3,822,605 40,914,463 3,796,699
Series A Preferred Stock        
Other income (expense):        
Net loss $ (8,714) $ (63,645) $ (21,089) $ (40,867)
Net loss per share, basic (in dollars per share) $ (23.61) $ (1,605.58) $ (52.32) $ (2,050.53)
Net loss per share, diluted (in dollars per share) $ (23.61) $ (1,605.58) $ (52.32) $ (2,050.53)
Weighted-average common shares outstanding, basic (in shares) 369,043 39,640 403,040 19,930
Weighted-average common shares outstanding, diluted (in shares) 369,043 39,640 403,040 19,930
Series B Preferred Stock        
Other income (expense):        
Net loss $ (3,370) $ 0 $ (8,084) $ 0
Net loss per share, basic (in dollars per share) $ (23.61) $ 0 $ (52.32) $ 0
Net loss per share, diluted (in dollars per share) $ (23.61) $ 0 $ (52.32) $ 0
Weighted-average common shares outstanding, basic (in shares) 142,745 0 154,503 0
Weighted-average common shares outstanding, diluted (in shares) 142,745 0 154,503 0
Common Stock        
Other income (expense):        
Net loss $ (26,753) $ (153,436) $ (53,521) $ (194,636)
Net loss per share, basic (in dollars per share) $ (0.59) $ (40.14) $ (1.31) $ (51.26)
Net loss per share, diluted (in dollars per share) $ (0.59) $ (40.14) $ (1.31) $ (51.26)
Weighted-average common shares outstanding, basic (in shares) 45,214,616 2,711,439 40,738,639 2,663,408
Weighted-average common shares outstanding, diluted (in shares) 45,316,264 3,822,605 40,914,463 3,796,699
Forward contract liability        
Other income (expense):        
Change in fair value of forward contract liability $ 0 $ (58,170) $ 0 $ (58,170)
Development fee and royalty        
Revenue:        
Total revenue $ 0 $ 688 $ 0 $ 886
[1] Includes $9.4 million and $26.5 million in related party expenses for the three and six months ended June 30, 2024, respectively, and $1.4 million related party expenses for the three and six months ended June 30, 2023.
v3.24.3
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Research and development [1] $ 32,636 $ 17,386 $ 67,564 $ 31,162
Related Party        
Research and development $ 9,400 $ 1,400 $ 26,500 $ 1,400
[1] Includes $9.4 million and $26.5 million in related party expenses for the three and six months ended June 30, 2024, respectively, and $1.4 million related party expenses for the three and six months ended June 30, 2023.
v3.24.3
Condensed Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Statement of Comprehensive Income [Abstract]        
Net loss $ (38,837) $ (217,081) $ (82,694) $ (235,503)
Other comprehensive income (loss):        
Foreign currency translation adjustment 4 18 20 28
Unrealized (loss) gain on marketable securities (194) (1) (875) 31
Total comprehensive loss $ (39,027) $ (217,064) $ (83,549) $ (235,444)
v3.24.3
Condensed Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders' Equity - USD ($)
$ in Thousands
Total
Series A Non Voting Convertible Preferred Stock
Series B Non Voting Convertible Preferred Stock
Preferred Stock
Series A Non Voting Convertible Preferred Stock
Preferred Stock
Series B Non Voting Convertible Preferred Stock
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2022       0          
Beginning balance at Dec. 31, 2022       $ 0          
Ending balance (in shares) at Mar. 31, 2023       0          
Ending balance at Mar. 31, 2023       $ 0          
Beginning balance, common stock (in shares) at Dec. 31, 2022           2,614,000      
Beginning balance at Dec. 31, 2022 $ 50,305         $ 6 $ 475,971 $ (48) $ (425,624)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Issuance of common stock in connection with employee stock purchase plan (in shares)           2,000      
Issuance of common stock in connection with employee stock purchase plan 18           18    
Stock-based compensation expense 1,709           1,709    
Foreign currency translation adjustment 10             10  
Unrealized gain (loss) on marketable securities 32             32  
Net loss (18,422)               (18,422)
Ending balance, common stock (in shares) at Mar. 31, 2023           2,616,000      
Ending balance at Mar. 31, 2023 33,652         $ 6 477,698 (6) (444,046)
Beginning balance (in shares) at Dec. 31, 2022       0          
Beginning balance at Dec. 31, 2022       $ 0          
Ending balance (in shares) at Jun. 30, 2023       721,000          
Ending balance at Jun. 30, 2023       $ 197,323          
Beginning balance, common stock (in shares) at Dec. 31, 2022           2,614,000      
Beginning balance at Dec. 31, 2022 50,305         $ 6 475,971 (48) (425,624)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Foreign currency translation adjustment 28                
Unrealized gain (loss) on marketable securities 31                
Net loss (235,503)                
Ending balance, common stock (in shares) at Jun. 30, 2023           3,240,000      
Ending balance at Jun. 30, 2023 (207,369)         $ 6 453,741 11 (661,127)
Beginning balance (in shares) at Mar. 31, 2023       0          
Beginning balance at Mar. 31, 2023       $ 0          
Increase (Decrease) in Temporary Equity [Roll Forward]                  
Issuance of Series A/B non-voting convertible preferred stock in connection with private placement, net of financing costs (in shares)       721,000          
Issuance of Series A/B non-voting convertible preferred stock in connection with private placement, net of financing costs       $ 197,323          
Ending balance (in shares) at Jun. 30, 2023       721,000          
Ending balance at Jun. 30, 2023       $ 197,323          
Beginning balance, common stock (in shares) at Mar. 31, 2023           2,616,000      
Beginning balance at Mar. 31, 2023 33,652         $ 6 477,698 (6) (444,046)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Issuance of common stock forward in connection with the asset acquisition of Spyre 3,768           3,768    
Issuance of common stock in connection with exercise of pre-funded warrants (in shares)           624,000      
CVR distribution to common stockholders (29,500)           (29,500)    
Stock-based compensation expense 1,775           1,775    
Foreign currency translation adjustment 18             18  
Unrealized gain (loss) on marketable securities (1)             (1)  
Net loss (217,081)               (217,081)
Ending balance, common stock (in shares) at Jun. 30, 2023           3,240,000      
Ending balance at Jun. 30, 2023 (207,369)         $ 6 453,741 11 (661,127)
Beginning balance (in shares) at Dec. 31, 2023     150,000   150,000        
Beginning balance at Dec. 31, 2023     $ 84,555   $ 84,555        
Increase (Decrease) in Temporary Equity [Roll Forward]                  
Issuance of Series A/B non-voting convertible preferred stock in connection with private placement, net of financing costs (in shares)         122,000        
Issuance of Series A/B non-voting convertible preferred stock in connection with private placement, net of financing costs         $ 168,850        
Ending balance (in shares) at Mar. 31, 2024         272,000        
Ending balance at Mar. 31, 2024         $ 253,405        
Beginning balance, preferred stock (in shares) at Dec. 31, 2023   437,037   437,000 0        
Beginning balance, common stock (in shares) at Dec. 31, 2023           36,057,000      
Beginning balance at Dec. 31, 2023 184,016     $ 184,927 $ 0 $ 10 763,191 302 (764,414)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Issuance of common stock in connection with exercise of stock options and employee stock purchase plan (in shares)           572,000      
Issuance of common stock in connection with exercise of stock options and employee stock purchase plan 4,390           4,390    
Stock-based compensation expense 8,385           8,385    
Foreign currency translation adjustment 16             16  
Unrealized gain (loss) on marketable securities (681)             (681)  
Net loss (43,857)               (43,857)
Ending balance, preferred stock (in shares) at Mar. 31, 2024       437,000 0        
Ending balance, common stock (in shares) at Mar. 31, 2024           36,629,000      
Ending balance at Mar. 31, 2024 152,269     $ 184,927 $ 0 $ 10 775,966 (363) (808,271)
Beginning balance (in shares) at Dec. 31, 2023     150,000   150,000        
Beginning balance at Dec. 31, 2023     $ 84,555   $ 84,555        
Ending balance (in shares) at Jun. 30, 2024         0        
Ending balance at Jun. 30, 2024     $ 0   $ 0        
Beginning balance, preferred stock (in shares) at Dec. 31, 2023   437,037   437,000 0        
Beginning balance, common stock (in shares) at Dec. 31, 2023           36,057,000      
Beginning balance at Dec. 31, 2023 184,016     $ 184,927 $ 0 $ 10 763,191 302 (764,414)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Foreign currency translation adjustment 20                
Unrealized gain (loss) on marketable securities (875)                
Net loss (82,694)                
Ending balance, preferred stock (in shares) at Jun. 30, 2024   346,045 16,667 346,000 17,000        
Ending balance, common stock (in shares) at Jun. 30, 2024           50,783,000      
Ending balance at Jun. 30, 2024 374,385     $ 146,425 $ 9,395 $ 12 1,066,214 (553) (847,108)
Beginning balance (in shares) at Mar. 31, 2024         272,000        
Beginning balance at Mar. 31, 2024         $ 253,405        
Increase (Decrease) in Temporary Equity [Roll Forward]                  
Conversion of Series B non-voting convertible preferred stock into common stock (in shares)         (272,000)        
Stockholder approval of the issuance of Common Stock upon conversion of Series B convertible non-voting preferred stock         $ (253,405)        
Ending balance (in shares) at Jun. 30, 2024         0        
Ending balance at Jun. 30, 2024     $ 0   $ 0        
Beginning balance, preferred stock (in shares) at Mar. 31, 2024       437,000 0        
Beginning balance, common stock (in shares) at Mar. 31, 2024           36,629,000      
Beginning balance at Mar. 31, 2024 152,269     $ 184,927 $ 0 $ 10 775,966 (363) (808,271)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Shareholder approval of conversion of Series B Convertible Non-Voting Preferred Stock to Common Stock (in shares)         272,000        
Stockholder approval of the issuance of Common Stock upon conversion of Series B convertible non-voting preferred stock 253,405       $ 253,405        
Issuance of common stock in connection with exercise of stock options and employee stock purchase plan (in shares)           66,000      
Issuance of common stock in connection with exercise of stock options and employee stock purchase plan 494           494    
Conversion of Series B non-voting convertible preferred stock into common stock (in shares)         (255,000) 10,198,000      
Conversion of Series B non-voting convertible preferred stock into common stock 0       $ (244,010) $ 1 244,009    
Exchange of Series A non-voting convertible preferred stock into common stock (in shares)       (91,000)   3,640,000      
Exchange of Series A non-voting convertible preferred stock for common stock 0     $ (38,502)   $ 1 38,501    
Issuance of common stock in connection with exercise of pre-funded warrants (in shares)           250,000      
Issuance of common stock in connection with exercise of pre-funded warrants 1           1    
Stock-based compensation expense 7,243           7,243    
Foreign currency translation adjustment 4             4  
Unrealized gain (loss) on marketable securities (194)             (194)  
Net loss (38,837)               (38,837)
Ending balance, preferred stock (in shares) at Jun. 30, 2024   346,045 16,667 346,000 17,000        
Ending balance, common stock (in shares) at Jun. 30, 2024           50,783,000      
Ending balance at Jun. 30, 2024 $ 374,385     $ 146,425 $ 9,395 $ 12 $ 1,066,214 $ (553) $ (847,108)
v3.24.3
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (82,694) $ (235,503)
Adjustments to reconcile net loss to net cash used in operating activities:    
Stock-based compensation 22,517 3,620
Acquired in-process research and development 0 130,486
Lease ROU asset and leasehold improvement impairment loss 0 2,580
Loss on disposal of long-lived assets 0 915
Net accretion of discount on marketable securities (5,984) (123)
Interest proceeds from maturities of zero coupon US Treasury Bills 124 0
Depreciation and amortization 0 744
Amortization of operating lease assets 0 220
Other 0 6
Changes in operating assets and liabilities:    
Accounts payable 2,335 2,045
Accrued and other liabilities (7,623) (1,058)
Related party accounts payable (12,906) 1,247
Prepaid expenses and other assets (7,489) 3,368
Deferred revenue 0 575
Development receivables 0 (1,271)
Operating lease liabilities 0 (298)
Net cash used in operating activities (90,790) (34,277)
CASH FLOWS FROM INVESTING ACTIVITIES    
Proceeds from maturities and sales of marketable securities 105,626 21,000
Purchases of marketable securities (331,107) 0
Cash assumed from asset acquisition of Spyre 0 3,035
Proceeds from sale of property and equipment 0 475
Net cash (used in) and provided by investing activities (225,481) 24,510
CASH FLOWS FROM FINANCING ACTIVITIES    
Payments related to contingent value rights liability (1,430) 0
Proceeds from employee stock option exercises, employee stock plan purchases, and exercise of prefunded warrants 4,885 18
Principal payments on finance lease obligation 0 (16)
Net cash provided by financing activities 172,525 210,002
Effect of exchange rate on cash, cash equivalents, and restricted cash (4) 24
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (143,750) 200,259
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH    
Beginning of period 189,215 36,416
End of period 45,465 236,675
Supplemental Disclosure of Non-Cash Investing and Financing Information:    
Exchange of Series A non-voting convertible preferred stock for common stock 38,502 0
Conversion of Series B non-voting convertible preferred stock into common stock 244,010 0
Unpaid direct transaction costs related to the asset acquisition of Spyre 0 2,067
Reconciliation of Cash, Cash Equivalents, and Restricted Cash Reported in the Statement of Financial Position    
Cash and cash equivalents 45,144 235,358
Restricted cash 321 1,317
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows 45,465 236,675
Series B Non Voting Convertible Preferred Stock    
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from issuance of Series A/B non-voting convertible preferred stock in connection with private placement 169,070 0
Supplemental Disclosure of Non-Cash Investing and Financing Information:    
Unpaid amounts related to issuance of Series B non-voting convertible preferred stock in connection with private placement 220 0
Series A Non Voting Convertible Preferred Stock    
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from issuance of Series A/B non-voting convertible preferred stock in connection with private placement 0 210,000
Supplemental Disclosure of Non-Cash Investing and Financing Information:    
Unpaid amounts related to issuance of Series A non-voting convertible preferred stock in connection with private placement 0 12,677
CVR liability    
Adjustments to reconcile net loss to net cash used in operating activities:    
Change in fair value of derivative liability 930 0
Forward contract liability    
Adjustments to reconcile net loss to net cash used in operating activities:    
Change in fair value of derivative liability $ 0 $ 58,170
v3.24.3
The Company and Basis of Presentation
 6 Months Ended
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
The Company and Basis of Presentation The Company and Basis of Presentation
Spyre Therapeutics, Inc., formerly Aeglea BioTherapeutics, Inc. (“Spyre” or the “Company”), is a clinical stage biotechnology company focused on developing next generation therapeutics for patients living with inflammatory bowel disease. The Company was formed as a Limited Liability Company ("LLC") in Delaware on December 16, 2013 under the name Aeglea BioTherapeutics Holdings, LLC and was converted from a Delaware LLC to a Delaware corporation on March 10, 2015. On November 27, 2023, the Company completed its corporate rebranding, changing the name of the Company to Spyre Therapeutics, Inc. The Company operates in one segment and has its principal offices in Waltham, Massachusetts.
On September 8, 2023, the Company effected a reverse stock split of its Common Stock at a ratio of 1-for-25 (the “Reverse Split”). Except as indicated otherwise, all share numbers related to the Company's Common Stock disclosed in these financial statements have been adjusted on a post-Reverse Split basis.
On April 12, 2023, based on the review of the inconclusive interim results from the Company's Phase 1/2 clinical trial of pegtarviliase for the treatment of Classical Homocystinuria and other business considerations, the Company announced that it had initiated a process to explore strategic alternatives to maximize stockholder value and engaged an independent exclusive financial advisor to support this process. As a result, in April 2023, the Company implemented a restructuring plan resulting in an approximate 83% reduction of the Company’s existing headcount.
On June 22, 2023, the Company acquired, in accordance with the terms of the Agreement and Plan of Merger (the "Acquisition Agreement"), the assets of Spyre Therapeutics, Inc. (“Pre-Merger Spyre”), a privately held biotechnology company advancing a pipeline of antibody therapeutics with the potential to transform the treatment of inflammatory bowel disease through a research and development option agreement ("Paragon Agreement") with Paragon Therapeutics, Inc. ("Paragon"). The asset acquisition was accomplished through a two-step reverse triangular merger whereby a wholly owned subsidiary of the Company merged with and into Pre-Merger Spyre, which existed at the time the Acquisition Agreement was entered into, and became a wholly owned subsidiary of the Company in accordance with the terms of the Acquisition Agreement. Immediately following this merger, Pre-Merger Spyre merged with and into a second wholly owned subsidiary of the Company (“Merger Sub”) in accordance with the terms of the Acquisition Agreement and Pre-Merger Spyre ceased to exist. Subsequently, Aeglea BioTherapeutics, Inc. was renamed Spyre Therapeutics, Inc. and is a different entity than Pre-Merger Spyre, which ceased to exist upon merging with Merger Sub. The transaction was structured as a stock-for-stock transaction pursuant to which all of Pre-Merger Spyre's outstanding equity interests were exchanged based on a fixed exchange ratio of 0.5494488 to 1 for consideration from the Company of 517,809 shares of common stock, par value of $0.0001 per share ("Common Stock"), and 364,887 shares of Series A non-voting convertible preferred stock, par value of $0.0001 per share ("Series A Preferred Stock") (convertible on a 40 to 1 basis), in addition to the assumption of outstanding and unexercised stock options to purchase 2,734 shares of Common Stock from the Amended and Restated Spyre 2023 Equity Incentive Plan (the "Asset Acquisition"). The Common Stock and Series A Preferred Stock related to the Asset Acquisition were issued to the Pre-Merger Spyre stockholders on July 7, 2023.
In connection with the Asset Acquisition, on June 26, 2023, the Company completed a private placement of shares of Series A Preferred Stock (the “June 2023 PIPE”) to a group of investors (the “June 2023 Investors”). The Company sold an aggregate of 721,452 shares of Series A Preferred Stock for an aggregate purchase price of approximately $210.0 million before deducting approximately $12.7 million in placement agent and other offering expenses (together with the Asset Acquisition, the “Transactions”).
In connection with the Asset Acquisition, a non-transferable contingent value right ("CVR") was distributed to stockholders of record of the Company as of the close of business on July 3, 2023 (the "Legacy Stockholders"), but was not distributed to the holders of shares of Common Stock or Series A Preferred Stock issued to the former stockholders of Pre-Merger Spyre or the June 2023 Investors in the Transactions. Holders of the CVRs will be entitled to receive cash payments from proceeds received by the Company for a three-year
period related to the disposition or monetization of its legacy assets for a period of one-year following the closing of the Asset Acquisition.
On November 21, 2023, the Company's stockholders approved the issuance of Common Stock upon conversion of the Company's Series A Preferred Stock to Common Stock. A total of 649,302 shares of Series A Preferred Stock automatically converted to 25,972,080 shares of Common Stock; 437,037 shares of Series A Preferred Stock did not automatically convert and remained outstanding after the conversion.
On December 11, 2023, the Company completed a private placement of shares of Common Stock and Series B non-voting convertible preferred stock, par value of $0.0001 per share ("Series B Preferred Stock") (convertible on a 40 to 1 basis) (the “December 2023 PIPE”) to a group of investors. The Company sold an aggregate of 6,000,000 shares of Common Stock and 150,000 shares of Series B Preferred Stock for an aggregate purchase price of approximately $180.0 million before deducting approximately $10.9 million of placement agent and other offering expenses.
On March 20, 2024, the Company completed a private placement of Series B Preferred Stock (convertible on a 40 to 1 basis) (the “March 2024 PIPE”) to a group of investors. The Company sold 121,625 shares of Series B Preferred Stock for a purchase price of $180.0 million before deducting approximately $11.2 million of placement agent and other offering costs.
On April 23, 2024, the Company entered into an exchange agreement with Fairmount Healthcare Fund II L.P. (the “Stockholder”), pursuant to which the Stockholder agreed to exchange an aggregate of 90,992 shares of Series A Preferred Stock for an aggregate of 3,639,680 shares of Common Stock (the “April 2024 Exchange”). The Common Stock issued in connection with the April 2024 Exchange was issued without registration under the Securities Act of 1933, as amended (the “Securities Act”) in reliance on the exemption from registration contained in Section 3(a)(9) of the Securities Act. The April 2024 Exchange closed on April 25, 2024, with 346,045 shares of Series A Preferred Stock remaining outstanding following the April 2024 Exchange.
On May 14, 2024, the Company's stockholders approved the issuance of Common Stock upon conversion of the Company's Series B Preferred Stock to Common Stock. A total of 254,958 shares of Series B Preferred Stock automatically converted to 10,198,320 shares of Common Stock; 16,667 shares of Series B Preferred Stock did not automatically convert and remained outstanding as of June 30, 2024.
Liquidity
The Company is a clinical stage biotechnology company with a limited operating history, and due to its significant research and development expenditures, the Company has generated operating losses since its inception and has not generated any revenue from the commercial sale of any products. There can be no assurance that profitable operations will ever be achieved, and, if achieved, whether profitability can be sustained on a continuing basis.
Since its inception and through June 30, 2024, the Company has funded our operations by raising an aggregate of approximately $1.1 billion of gross proceeds from the sale and issuance of convertible preferred stock and common stock, pre-funded warrants, the collection of grant proceeds, and the licensing of its product rights for commercialization of pegzilarginase in Europe and certain countries in the Middle East. As of June 30, 2024, Spyre had an accumulated deficit of $847.1 million, and cash, cash equivalents, marketable securities and restricted cash of $426.3 million.
Based on current operating plans, the Company has sufficient resources to fund operations for at least one year from the issuance date of these financial statements with existing cash, cash equivalents, and marketable securities. Spyre will need to secure additional financing in the future to fund additional research and development, and before a commercial drug can be produced, marketed and sold. If the Company is unable to obtain additional financing or generate license or product revenue, the lack of liquidity could have a material adverse effect on the Company.
Basis of Presentation
The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”) as defined by the Financial Accounting Standards Board and include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Reclassification of Prior Year Presentation
Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations or balance sheets.
Unaudited Interim Financial Information
The interim condensed consolidated financial statements included in this Quarterly Report on Form 10-Q are unaudited. The unaudited interim financial statements have been prepared on the same basis as the annual financial statements and reflect, in the opinion of management, all adjustments of a normal and recurring nature that are necessary for a fair statement of the Company’s financial position as of June 30, 2024, and its results of operations for the three and six months ended June 30, 2024 and 2023, changes in convertible preferred stock and stockholders’ equity for the three and six months ended June 30, 2024 and 2023, and cash flows for the six months ended June 30, 2024 and 2023. The results of operations for the three and six months ended June 30, 2024, are not necessarily indicative of the results to be expected for the year ending December 31, 2024 or for any other future annual or interim period. The December 31, 2023 balance sheet was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP for complete financial statements. These financial statements should be read in conjunction with the audited financial statements included in the Company’s Form 10-K for the year ended December 31, 2023 (the "Annual Report") as filed with the SEC on February 29, 2024 and amended on March 1, 2024 and November 18, 2024.
v3.24.3
Summary of Significant Accounting Policies
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
These interim condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and SEC instructions for interim financial information, and should be read in conjunction with the Company's Annual Report. Significant accounting policies and other disclosures normally provided have been omitted since such items are disclosed in the Company's Annual Report. The Company uses the same accounting policies in preparing quarterly and annual financial statements.
Other than policies noted below, there have been no significant changes from the significant accounting policies and estimates disclosed in the Notes titled “1. The Company and Basis of Presentation” and "2. Summary of Significant Accounting Policies” of the Company's Annual Report.
License Agreements Contingent Milestone Payments
The Company’s license agreements include specific development, regulatory, and clinical milestone payments that are payable upon the resolution of a contingency, such as upon the selection of a development candidate, first dosing of a human patient in clinical trials or receipt of the Food Drug and Administration’s (“FDA”) approval of a Spyre drug. The achievement of these milestone payments involves many factors outside of the Company’s control and therefore the associated likelihood cannot be considered probable until the related contingency is resolved. Based on the preceding, the Company accrues each milestone payment upon the achievement of the applicable milestone event.
Recently Adopted Accounting Pronouncement
There have been no recent accounting pronouncements or changes in accounting pronouncements during the six months ended June 30, 2024 that are of significance or potential significance to the Company.
v3.24.3
Fair Value Measurements
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company measures and reports certain financial instruments as assets and liabilities at fair value on a recurring basis. The following tables set forth the fair value of the Company’s financial assets and liabilities at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands):
June 30, 2024
Level 1Level 2Level 3Total
Financial Assets:
Money market funds$43,377 $— $— $43,377 
U.S. government treasury securities136,857 — — 136,857 
U.S. government agency securities— 92,566 — 92,566 
Commercial paper— 119,716 — 119,716 
Corporate bonds— 31,712 — 31,712 
Total financial assets$180,234 $243,994 $— $424,228 
 
Liabilities:
Parapyre Option Obligation$— $6,889 $— $6,889 
CVR liability— — 42,200 42,200 
Total liabilities$— $6,889 $42,200 $49,089 
December 31, 2023
Level 1Level 2Level 3Total
Financial Assets:
Money market funds$150,648 $— $— $150,648 
U.S. government treasury securities32,843 — — 32,843 
U.S. government agency securities— 16,257 — 16,257 
Commercial paper— 104,141 — 104,141 
Corporate bonds— 33,064 — 33,064 
Total financial assets$183,491 $153,462 $— $336,953 
Liabilities:
CVR liability$— $— $42,700 $42,700 
Total liabilities$— $— $42,700 $42,700 
The Company measures the fair value of money market funds and U.S. government treasury securities on quoted prices in active markets for identical assets or liabilities. The Level 2 assets include U.S. government agency securities, commercial paper and corporate bonds, and are valued based on quoted prices for similar assets in active markets and inputs other than quoted prices that are derived from observable market data. The Company evaluates transfers between levels at the end of each reporting period. There were no transfers between Level 1, Level 2, or Level 3 during the periods presented.
Parapyre Option Obligation
Under the Paragon Agreement, the Company is obligated to issue Parapyre Holding LLC ("Parapyre") an annual equity grant of warrants, on the last business day of each of the years ended December 31, 2023 and December 31, 2024, to purchase 1% of the then outstanding shares of the Company’s Common Stock, on a fully diluted basis, during the term of the Paragon Agreement (the "Parapyre Option Obligation"). The Company determined that the 2023 and 2024 grants are two separate grants, as there would be no obligation for the 2024 grant had the Company exercised or terminated all of the options under the Paragon Agreement prior to December 31, 2023. The service inception period for the grant precedes the grant date, with the full award
being vested as of the grant date with no post-grant date service requirement. Accordingly, a liability related to the Parapyre Option Obligation is recorded pursuant to the Paragon Agreement during interim periods. On December 31, 2023, the Company settled its 2023 obligation under the Parapyre Option Obligation by issuing Parapyre 684,407 warrants to purchase the Company's Common Stock, with a $21.52 per share exercise price for each warrant.
The Parapyre Option Obligation is considered a Level 2 liability based on observable market data for substantially the full term of the liability. The Parapyre Option Obligation is measured each period using a Black-Scholes model to estimate the fair value of the option grant. Changes in the fair value of the Parapyre Option Obligation are recorded as stock-based compensation within Research and development expenses for non-employees who provided pre-clinical development services.
CVR Liability
In connection with the Asset Acquisition, a non-transferable CVR was distributed to the Legacy Stockholders, but was not distributed to holders of shares of Common Stock or Series A Preferred Stock issued to the June 2023 Investors or former stockholders of Pre-Merger Spyre in connection with the Transactions. Holders of the CVR will be entitled to receive certain cash payments from proceeds received by the Company for a three-year period, if any, related to the disposition or monetization of the Company’s legacy assets for a period of one year following the closing of the Asset Acquisition.
The fair value of the CVR liability was determined using the probability weighted discounted cash flow method to estimate future cash flows associated with the sale of the legacy assets. Analogous to a dividend being declared/approved in one period and paid out in another, the liability was recorded at the date of approval, June 22, 2023, as a Common Stock dividend, returning capital to the Legacy Stockholders. Changes in fair value of the liability will be recognized as a component of Other income (expense) in the consolidated statement of operations and comprehensive loss in each reporting period. The liability value is based on significant inputs not observable in the market such as estimated cash flows, estimated probabilities of regulatory success, and discount rates, which represent a Level 3 measurement within the fair value hierarchy.
The significant inputs used to estimate the fair value of the CVR liability were as follows:
 June 30, 2024
Estimated cash flow dates
02/15/25 - 06/22/26
Estimated probability of success
39% - 100%
Estimated reimbursement rate compared to reimbursement target
81% - 100%
Risk-adjusted discount rates
6.47% - 6.71%
The change in fair value between December 31, 2023 and June 30, 2024 was a $0.9 million increase, and was primarily driven by changes in the risk-adjusted discount rates and the time value of money.
The following table presents changes in the CVR liability for the periods presented (in thousands):
 
CVR Liability
Beginning balance as of December 31, 2023$42,700 
Changes in the fair value of the CVR liability930 
Payments(1,430)
Ending Balance as of June 30, 2024$42,200 
Forward Contract Liability
In connection with the Asset Acquisition, the Company entered into a contract for the issuance of 364,887 shares of Series A Preferred Stock as part of the consideration transferred. This forward contract was classified as a liability because the underlying preferred shares were contingently redeemable. The forward contract was carried at fair value on the balance sheet, with changes in fair value between the acquisition date and June 30, 2023 recorded in earnings. The liability was settled with the issuance of the Series A Preferred Stock on July 7, 2023.
The fair value of the forward contract as of the acquisition date, June 22, 2023, was $106.2 million. The fair value of the forward contract on June 30, 2023 was $164.4 million. The $58.2 million change in fair value of the forward contract liability between the acquisition date and June 30, 2023, was recorded as Other Income (Expense) in the consolidated statements of operations for the three and six months ended June 30, 2023.
v3.24.3
Cash Equivalents and Marketable Securities
 6 Months Ended
Jun. 30, 2024
Cash and Cash Equivalents [Abstract]  
Cash Equivalents and Marketable Securities Cash Equivalents and Marketable Securities
The following tables summarize the estimated fair value of the Company’s cash equivalents and marketable securities and the gross unrealized gains and losses (in thousands):
June 30, 2024
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
Cash equivalents:
Money market funds$43,377 $— $— $43,377 
Total cash equivalents$43,377 $— $— $43,377 
Marketable securities:
Commercial paper$119,844 $3 $(131)$119,716 
Corporate bonds31,797 — (85)31,712 
U.S. government treasury securities137,061 65 (269)136,857 
U.S. government agency securities92,741 13 (188)92,566 
Total marketable securities$381,443 $81 $(673)$380,851 
December 31, 2023
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
Cash equivalents:
Money market funds$150,648 $— $— $150,648 
Commercial paper24,950 5 — 24,955 
U.S. government treasury securities10,965 1 — 10,966 
Total cash equivalents$186,563 $6 $— $186,569 
 
Marketable securities:
Commercial paper$79,124 $62 $— $79,186 
Corporate bonds32,984 81 (1)33,064 
U.S. government treasury securities21,846 31 — 21,877 
U.S. government agency securities16,147 110 — 16,257 
Total marketable securities$150,101 $284 $(1)$150,384 
The following table summarizes the available-for-sale securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of June 30, 2024 and December 31, 2023, aggregated by major security type and length of time in a continuous unrealized loss position:
June 30, 2024
Less Than 12 Months
12 Months or Longer
Total
Fair Value
Unrealized
Losses
Fair Value
Unrealized
Losses
Fair Value
Unrealized
Losses
Commercial paper$100,124 $(131)$— $— $100,124 $(131)
Corporate bonds31,712 (85)— — 31,712 (85)
U.S. government treasury securities93,432 (269)— — 93,432 (269)
U.S. government agency securities83,933 (188)— — 83,933 (188)
Total marketable securities$309,201 $(673)$— $— $309,201 $(673)
December 31, 2023
Less Than 12 Months
12 Months or Longer
Total
Fair Value
Unrealized
Losses
Fair Value
Unrealized
Losses
Fair Value
Unrealized
Losses
Corporate bonds$9,907 $(1)$— $— $9,907 $(1)
U.S. government treasury securities4,831 — — — 4,831 — 
Total marketable securities$14,738 $(1)$— $— $14,738 $(1)
The Company evaluated its securities for credit losses and considered the decline in market value to be primarily attributable to current economic and market conditions and not to a credit loss or other factors. Additionally, the Company does not intend to sell the securities in an unrealized loss position and does not expect it will be required to sell the securities before recovery of the unamortized cost basis. As of June 30, 2024 and December 31, 2023, an allowance for credit losses had not been recognized. Given the Company's intent and ability to hold such securities until recovery, and the lack of significant change in credit risk of these investments, the Company does not consider these marketable securities to be impaired as of June 30, 2024 and December 31, 2023.
The financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash deposits. Accounts at each of our two U.S. banking institutions are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 per depositor. As of June 30, 2024 and December 31, 2023, cash deposits at the Company's U.S. banking institutions exceeded the FDIC limits. Uninsured foreign cash deposits were immaterial for both periods.
There were no realized gains or losses on marketable securities for the three and six months ended June 30, 2024 and 2023. Interest on marketable securities is included in interest income. Accrued interest receivable on available-for-sale debt securities as of June 30, 2024 and December 31, 2023, was $1.8 million and $0.9 million, respectively.
The following table summarizes the contractual maturities of the Company’s marketable securities at estimated fair value (in thousands):
June 30,
2024		December 31,
2023
Due in one year or less$270,799 $115,784 
Due in 1 - 2 years110,052 34,600 
Total marketable securities$380,851 $150,384 
The Company may sell investments at any time for use in current operations even if they have not yet reached maturity. As a result, the Company classifies marketable securities, including securities with maturities beyond twelve months as current assets.
v3.24.3
Accrued and Other Current Liabilities
 6 Months Ended
Jun. 30, 2024
Payables and Accruals [Abstract]  
Accrued and Other Current Liabilities Accrued and Other Current Liabilities
Accrued and other current liabilities consist of the following (in thousands):
June 30,
2024		December 31,
2023
Accrued compensation$2,664 $4,054 
Accrued contracted research and development costs2,269 7,092 
Accrued professional and consulting fees515 1,474 
Accrued other235 488 
Total accrued and other current liabilities$5,683 $13,108 
v3.24.3
Asset Acquisition
 6 Months Ended
Jun. 30, 2024
Business Combination and Asset Acquisition [Abstract]  
Asset Acquisition Asset Acquisition
On June 22, 2023, the Company acquired Pre-Merger Spyre pursuant to the Acquisition Agreement, by and among the Company, Aspen Merger Sub I, Inc., a Delaware corporation and a wholly owned subsidiary of the Company (“First Merger Sub”), Sequoia Merger Sub II, LLC, a Delaware limited liability company and wholly owned subsidiary of the Company (“Second Merger Sub”), and Pre-Merger Spyre. Pursuant to the Acquisition Agreement, First Merger Sub merged with and into Pre-Merger Spyre, pursuant to which Pre-Merger Spyre was the surviving corporation and became a wholly owned subsidiary of the Company (the “First Merger”). Immediately following the First Merger, Pre-Merger Spyre merged with and into Second Merger Sub, pursuant to which Second Merger Sub became the surviving entity. Pre-Merger Spyre was a pre-clinical stage biotechnology company that was incorporated on April 28, 2023 under the direction of Peter Harwin, a Managing Member of Fairmount, for the purpose of holding rights to certain intellectual property being developed by Paragon. Fairmount is a founder of Paragon.
The Company completed the Asset Acquisition of Pre-Merger Spyre, in accordance with the terms of the Acquisition Agreement. Under the terms of the Acquisition Agreement, the Company issued 517,809 shares of Common Stock and 364,887 shares of Series A Preferred Stock to former Pre-Merger Spyre security holders. In addition, outstanding and unexercised stock options to purchase 2,734 shares of common stock were assumed from the Amended and Restated Spyre 2023 Equity Incentive Plan.
At the acquisition date, the Company recorded forward contracts to represent the obligation to issue shares of Common Stock and shares of Series A Preferred Stock, respectively. The forward contract related to the Common Stock was recorded as Additional paid-in capital as the instrument is indexed to the Common Stock. The forward contract related to the Series A Preferred Stock was recorded as a liability, as the underlying stock has a cash redemption feature. On July 7, 2023, both the shares of Common Stock and Series A Preferred Stock were issued and the forward contract liability associated with the Series A Preferred Stock was settled accordingly.
The Company concluded that the arrangement met the definition of an asset acquisition rather than a business combination, as substantially all of the fair value of the gross assets acquired was concentrated in a single identifiable asset, Pre-Merger Spyre's option to exclusively license certain intellectual property rights (the "Option"). The Company determined that the Option was a single asset as the Company's strategy relied on developing the entire portfolio of individual treatments to create combination treatments that simultaneously address different mechanisms of inflammatory bowel disease with a single treatment. The Company also determined that the pipeline candidates within the portfolio were similar in nature and risk profile. In addition, the Company did not obtain any substantive processes, assembled workforce, or employees capable of producing outputs in connection with the Asset Acquisition.
The Company determined that the cost to acquire the asset was $113.3 million which was recorded as acquired in-process research and development ("IPR&D"). The fair value of the consideration issued consisted of the 364,887 shares of Series A Preferred Stock (14,595,480 shares of Common Stock on an as-converted basis) and 517,809 shares of Common Stock, valued at $291.08 per share and $7.277 per share, respectively.
The Asset Acquisition costs are shown on the following table (in millions):
June 22,
2023
Consideration transferred in Series A Preferred Stock and Common Stock$110.0 
Transaction costs incurred by Pre-Merger Spyre3.2 
Fair value of Parapyre Option Obligation assumed by Pre-Merger Spyre0.1 
Total cost to acquire asset$113.3 
The allocation of the purchase price to net assets acquired is as a follows:
June 22,
2023
Acquired in-process research and development$130.5 
Cash acquired3.0 
Assumed liabilities(20.2)
Total cost to acquire asset$113.3 
v3.24.3
Licensing Agreements
 6 Months Ended
Jun. 30, 2024
Licensing Agreements [Abstract]  
Licensing Agreements Licensing Agreements
On July 12, 2023, December 14, 2023, and June 5, 2024, the Company exercised the Option available under the Paragon Agreement with respect to the SPY001, SPY002, and SPY003 research programs, respectively.
On May 14, 2024, the Company and Paragon entered into (i) a license agreement (the “SPY001 License Agreement”), pursuant to which Paragon granted the Company a royalty-bearing, world-wide, exclusive license to develop, manufacture, commercialize or otherwise exploit certain antibodies and products targeting α4ß7 integrin and (ii) a license agreement (the “SPY002 License Agreement” and, together with the SPY001 License Agreement, the “License Agreements”), pursuant to which Paragon granted the Company a royalty-
bearing, world-wide, exclusive license to develop, manufacture, commercialize or otherwise exploit certain licensed antibodies and products targeting TL1A, respectively.
Under the terms of each License Agreement, the Company is obligated to pay Paragon up to $22.0 million based on specific development, regulatory and clinical milestones for each licensed research program, including a $1.5 million fee for nomination of a development candidate, as applicable, and a further milestone payment of $2.5 million upon the first dosing of a human patient in a Phase 1 trial. In addition, the following summarizes other key terms of each License Agreement:
•Paragon will provide the Company with an exclusive license to its patents covering the related antibody, the method of use and its method of manufacture.
•Paragon will not conduct any new campaigns that generate anti-α4ß7 or anti-TL1A monospecific antibodies for at least 5 years.
•The Company will pay Paragon a low single-digit percentage royalty for single antibody products and a mid single-digit percentage royalty for products containing more than one antibody from Paragon.
•There is a royalty step-down of 1/3rd if there is no Paragon patent in effect during the royalty term.
•The royalty term ends on the later of (i) the last-to-expire licensed patent or Company patent directed to a derived antibody or (ii) 12 years from the date of first sale of a Company product.
•Agreement may be terminated on 60 days’ notice by the Company; on material breach without cure; and to the extent permitted by law, on a party’s insolvency or bankruptcy.
•With respect to the SPY002 License Agreement only, on a product by product basis, the Company will pay sublicensing fees of up to approximately $20 million upon the achievement of mostly commercial milestones.
The SPY003 license agreement remains under negotiation as of the date of these consolidated financial statements.
The Company recognizes the expense associated with each milestone when the achievement of the milestone is deemed probable. During the three and six months ended June 30, 2024, the Company recognized $5.5 million of expense related to Paragon license milestone payments recorded within Research and development expenses in the accompanying condensed statement of operations for the three and six months ended June 30, 2024. There was no such expense for the three and six months ended June 30, 2023.
For the three and six months ended June 30, 2024, the Company made milestone payments totaling $3.0 million to Paragon. As of June 30, 2024, $2.5 million of Paragon license milestone payments were outstanding and payable to Paragon.
Additionally, the Company recognized and paid $0.1 million related to sublicensing fees and which was recorded as Research and development expenses in the accompanying condensed statement of operations for the three and six months ended June 30, 2024.
v3.24.3
Related Party Transactions
 6 Months Ended
Jun. 30, 2024
Related Party Transactions [Abstract]  
Related Party Transactions Related Party Transactions
Paragon and Parapyre each beneficially own less than 5% of the Company's capital stock through their respective holdings of the Company's Common Stock. Fairmount Funds Management LLC ("Fairmount") beneficially owns more than 5% of the Company's capital stock on an as-converted basis, has two seats on the Company's board of directors (the "Board") and beneficially owns more than 5% of Paragon, which is a joint venture between Fairmount and FairJourney Biologics. Fairmount appointed Paragon's board of directors and
has the contractual right to approve the appointment of any executive officers. Parapyre is an entity formed by Paragon as a vehicle to hold equity in Spyre in order to share profits with certain employees of Paragon.
The following is the summary of expenses related to the Paragon Agreement and License Agreements, which were ultimately settled in cash (in millions) and recorded within Research and development in the consolidated statement of operations for the periods presented:
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Reimbursable costs under the Paragon Agreement$2.3 $1.2 $14.0 $1.2 
License Agreements milestone and sublicensing fees5.6 — 5.6 — 
Total related party expense$7.9 $1.2 $19.6 $1.2 
The following is the summary of Related party accounts payable and other current liabilities (in millions):
June 30,
2024		December 31,
2023
Reimbursable costs under the Paragon Agreement$1.2 $16.6 
Parapyre warrants liability6.9 — 
License Agreements development milestone liability (see Note 7)2.5 — 
Total related party accounts payable$10.6 $16.6 
Paragon Agreement
In connection with the Asset Acquisition, the Company assumed the rights and obligations of Pre-Merger Spyre under the Paragon Agreement. Under the Paragon Agreement, Spyre is obligated to compensate Paragon for its services performed under each research program based on the actual costs incurred with mark-up costs pursuant to the terms of the Paragon Agreement. Spyre is also obligated under the Paragon Agreement to issue Parapyre annual equity grants of warrants in accordance with the Parapyre Option Obligation.
For the three and six months ended June 30, 2024, the Company recognized expenses related to services provided by Paragon subsequent to the Asset Acquisition totaling $9.7 million and $26.8 million, respectively, which included $1.5 million and $6.9 million, respectively, of stock-based compensation expense, and were recorded as Research and development expenses in the consolidated statements of operations.
For the three and six months ended June 30, 2024, the Company made payments totaling $11.3 million and $29.5 million respectively, in connection with the Paragon Agreement.
On July 12, 2023, December 14, 2023, and June 5, 2024, the Company exercised the Option available under the Paragon Agreement with respect to the SPY001, SPY002 and SPY003 research programs, respectively. Our Option available under the Paragon Agreement with respect to the SPY004 program remains unexercised. Please refer to Note 7 for additional information on the License Agreements related to the exercised options.
On May 14, 2024, the Company, Paragon and Parapyre entered into a second amended and restated antibody discovery and option agreement that amends and restates that certain amended and restated antibody discovery and option agreement, dated September 29, 2023, by and between Paragon, Parapyre and Spyre Therapeutics, LLC, in order to, among other things, (i) replace the Company’s subsidiary with the Company as a party to the agreement and (ii) amend certain terms related to the SPY003 research program, including without limitation, (a) establishing an SPY003 antibody selection process pursuant to which the Company and Paragon shall alternate in turn to select a project antibody to be included and excluded, respectively, from the Company’s rights under its option to license certain intellectual property rights related to SPY003 from Paragon until all project antibodies under the SPY003 research program have been selected; (b) reducing the development costs invoiced to the Company for the SPY003 research program incurred from and after April 1, 2024 through completion of the SPY003 antibody selection process by 50%; (c) requiring Paragon to reimburse the Company
for 50% of the development costs for the SPY003 research program incurred prior to April 1, 2024; provided, that Paragon receives rights to at least one SPY003 project antibody following completion of the SPY003 antibody selection process; (d) obligating the Company to exercise its option to license the intellectual property rights to SPY003 project antibodies and technology following the completion of the SPY003 antibody selection process; and (e) establishing a license agreement term sheet for the SPY003 research program with substantially similar milestone payment terms and royalty payment terms as the SPY001 License Agreement. Please refer to Note 7 for additional disclosures.
During the second quarter of 2024, the SPY003 antibody selection process was completed and the Company recognized a $5.9 million receivable and a corresponding reduction in Research and development expenses in its condensed consolidated statements of operations for the three and six ended June 30, 2024. As of June 30, 2024, the $5.9 million receivable was outstanding and included as a reduction to Related party accounts payable and other current liabilities on the Company's consolidated balance sheet.
Parapyre Option Obligation
Pursuant to the Paragon Agreement, the Company agreed to issue Parapyre an annual equity grant of warrants, on the last business day of each of the years ended December 31, 2023 and December 31, 2024, to purchase 1% of the then outstanding shares of the Company's Common Stock, on a fully diluted basis, during the term of the Paragon Agreement.
Paragon License Agreements
See Note 7 for disclosures related to the License Agreements entered into with Paragon.
Mark McKenna Option Grant
On February 1, 2024, the Board appointed Mark McKenna as a Class I director. Mr. McKenna and the Company are parties to a consulting agreement, pursuant to which Mr. McKenna agreed to continue to provide consulting services as an independent contractor to the Company, with an effective date of August 1, 2023 (the “Vesting Commencement Date”). As compensation for Mr. McKenna’s consulting services, on November 22, 2023, he was granted non-qualified stock options to purchase 477,000 shares of the Company’s Common Stock under the 2016 Plan (as defined in Note 8) with an exercise price of $10.39 per share, which vest as to 25% on the one year anniversary of the Vesting Commencement Date and thereafter vest and become exercisable in 36 equal monthly installments, subject to Mr. McKenna’s continued service to the Company through each applicable vesting date. For the three and six months ended June 30, 2024, the Company recognized $0.2 million and $0.5 million, respectively, in stock-based compensation expense related to Mr. McKenna's consulting agreement. There was no such expense for the three and six months ended June 30, 2023.
v3.24.3
Convertible Preferred Stock and Stockholders' Equity
 6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Convertible Preferred Stock and Stockholders' Equity Convertible Preferred Stock and Stockholders’ Equity
Pre-Funded Warrants
In February 2019, April 2020 and May 2022, the Company issued pre-funded warrants to purchase the Company’s Common Stock in underwritten public offerings at the offering price of the Common Stock, less the $0.0025 per share exercise price of each warrant. The warrants were recorded as a component of stockholders’ (deficit) equity within additional paid-in capital and have no expiration date. Per the terms of the warrant agreements, the outstanding warrants to purchase shares of Common Stock may not be exercised if the holder’s ownership of the Company’s Common Stock would exceed 4.99% (“Maximum Ownership Percentage”), or 9.99% for certain holders. By written notice to the Company, each holder may increase or decrease the Maximum Ownership Percentage to any other percentage (not in excess of 19.99% for the majority of such warrants). The revised Maximum Ownership Percentage would be effective 61 days after the notice is received by the Company.
As of June 30, 2024, all pre-funded warrants have been exercised and none remain outstanding.
Parapyre Warrants
The Company settled its 2023 obligations under the Parapyre Option Obligation by issuing Parapyre 684,407 warrants to purchase the Company's Common Stock, with a $21.52 per share exercise price for each warrant. Pursuant to the terms of the warrant agreement, the outstanding warrants to purchase shares of Common Stock may not be exercised if the holder’s ownership of the Company’s Common Stock would exceed 4.99%. As of June 30, 2024, none of the warrants issued under the Parapyre Option Obligation have been exercised.
Series A Non-Voting Convertible Preferred Stock
On June 22, 2023, the Company filed a Certificate of Designation of Preferences, Rights and Limitations of the Series A Preferred Stock with the Secretary of State of the State of Delaware (the “Series A Certificate of Designation”) in connection with the Asset Acquisition and the June 2023 PIPE.
Pursuant to the Series A Certificate of Designation, holders of Series A Preferred Stock are entitled to receive dividends on shares of Series A Preferred Stock equal to, on an as-if-converted-to-Common Stock basis, and in the same form as, dividends actually paid on shares of Common Stock. Except as provided in the Series A Certificate of Designation or as otherwise required by law, the Series A Preferred Stock does not have voting rights. However, as long as any shares of Series A Preferred Stock are outstanding, the Company will not, without the affirmative vote of the holders of a majority of the then outstanding shares of the Series A Preferred Stock: (a) alter or change adversely the powers, preferences or rights given to the Series A Preferred Stock, or alter or amend the Series A Certificate of Designation, amend or repeal any provision of, or add any provision to, the Company’s Certificate of Incorporation or its Bylaws, or file any articles of amendment, certificate of designations, preferences, limitations and relative rights of any series of preferred stock, if such action would adversely alter or change the preferences, rights, privileges or powers of, or restrictions provided for the benefit of the Series A Preferred Stock, regardless of whether any of the foregoing actions will be by means of amendment to the Certificate of Incorporation or by merger, consolidation, recapitalization, reclassification, conversion or otherwise, (b) issue further shares of Series A Preferred Stock or increase or decrease (other than by conversion) the number of authorized shares of Series A Preferred Stock, (c) prior to the stockholder approval of the conversion of the Series A Preferred Stock into shares of Common Stock in accordance with Nasdaq Stock Market Rules (the “Series A Conversion Proposal”) or at any time while at least 30% of the originally issued Series A Preferred Stock remains issued and outstanding, consummate (x) any Fundamental Transaction (as defined in the Series A Certificate of Designation) or (y) any merger or consolidation of the Company with or into another entity or any stock sale to, or other business combination in which our stockholders immediately before such transaction do not hold at least a majority of our capital stock immediately after such transaction or (d) enter into any agreement with respect to any of the foregoing. The Series A Preferred Stock does not have a preference upon any liquidation, dissolution or winding-up of the Company.
On June 26, 2023, the Company completed a private placement of 721,452 shares of Series A Preferred Stock in exchange for gross proceeds of approximately $210.0 million, or net proceeds of $197.3 million, after deducting placement agent and other offering costs.
On July 7, 2023, the Company issued 364,887 shares of Series A Preferred Stock as part of its consideration transferred in connection with the Asset Acquisition that closed on June 22, 2023 which settled the related forward contract liability.
On November 21, 2023, the Company's stockholders approved the Series A Conversion Proposal, among other matters, at a special meeting of stockholders. As a result of the approval of the Series A Conversion Proposal, all conditions that could have required cash redemption of the Series A Preferred Stock were satisfied. Since the Series A Preferred Stock is no longer redeemable, the associated balances of the Series A Preferred Stock were reclassified from mezzanine equity to permanent equity during the fourth quarter of 2023.
Following stockholder approval of the Series A Conversion Proposal, each share of Series A Preferred Stock automatically converted into 40 shares of Common Stock, subject to certain limitations, including that a holder of Series A Preferred Stock is prohibited from converting shares of Series A Preferred Stock into shares
of Common Stock if, as a result of such conversion, such holder, together with its affiliates, would beneficially own more than a specified percentage (established by the holder between 0.0% and 19.9%) of the total number of shares of Common Stock issued and outstanding immediately after giving effect to such conversion. 649,302 shares of Series A Preferred Stock automatically converted to 25,972,080 shares of Common Stock; 437,037 shares of Series A Preferred Stock did not automatically convert and remained outstanding following the conversion. This conversion was recorded as a reclassification between Series A Preferred Stock and Common Stock based on the historical per-share contributed capital amount of the Series A Preferred Stock.
On April 23, 2024, in connection with the April 2024 Exchange, the Stockholder agreed to exchange an aggregate of 90,992 shares of Series A Preferred Stock for an aggregate of 3,639,680 shares of the Company's Common Stock. This exchange was recorded as a reclassification between Series A Preferred Stock and Common Stock based on the historical per-share contributed capital amount, inclusive of any forward-contract valuation adjustments, of the Series A Preferred Stock. Following the April 2024 Exchange, 346,045 shares of Series A Preferred Stock remained outstanding.
Series B Non-Voting Convertible Preferred Stock
On December 8, 2023, the Company filed a Certificate of Designation of Preferences, Rights and Limitations of Series B Non-Voting Convertible Preferred Stock with the Secretary of State of the State of Delaware (the “Series B Certificate of Designation”) in connection with the December 2023 PIPE.
Pursuant to the Series B Certificate of Designation, holders of Series B Preferred Stock are entitled to receive dividends on shares of Series B Preferred Stock equal to, on an as-if-converted-to-Common Stock basis, and in the same form as, dividends actually paid on shares of Common Stock. Except as provided in the Series B Certificate of Designation or as otherwise required by law, the Series B Preferred Stock does not have voting rights. However, as long as any shares of Series B Preferred Stock are outstanding, the Company will not, without the affirmative vote of the holders of a majority of the then outstanding shares of the Series B Preferred Stock, alter or change adversely the powers, preferences or rights given to the Series B Preferred Stock, or alter or amend the Series B Certificate of Designation, amend or repeal any provision of, or add any provision to, the Company’s Certificate of Incorporation or its Bylaws, or file any articles of amendment, certificate of designations, preferences, limitations and relative rights of any series of preferred stock, if such action would adversely alter or change the preferences, rights, privileges or powers of, or restrictions provided for the benefit of the Series B Preferred Stock, regardless of whether any of the foregoing actions will be by means of amendment to the Certificate of Incorporation or by merger, consolidation, recapitalization, reclassification, conversion or otherwise. The Series B Preferred Stock does not have a preference upon any liquidation, dissolution or winding-up of the Company.
On December 11, 2023, as part of the December 2023 PIPE, the Company completed a private placement of 150,000 shares of Series B Preferred Stock in exchange for gross proceeds of $90.0 million.
On March 18, 2024, in connection with the March 2024 PIPE, the Company filed a certificate of amendment to its Series B Certificate of Designation to increase the number of authorized shares of Series B Preferred Stock from 150,000 to 271,625.
On March 20, 2024, as part of the March 2024 PIPE, the Company completed a private placement of 121,625 shares of Series B Preferred Stock in exchange for gross proceeds of approximately $180.0 million.
On May 14, 2024, the Company's stockholders approved the issuance of Common Stock upon the conversion of all issued and outstanding Series B Preferred Stock into shares of Common Stock in accordance with the Nasdaq Stock Market Rules (the "Series B Conversion Proposal"), among other matters, at its 2024 annual meeting of stockholders. As a result of the approval of the Series B Conversion Proposal, all conditions that could have required cash redemption of the Series B Preferred Stock were satisfied. Since the Series B Preferred Stock is no longer redeemable, the associated balances of the Series B Preferred Stock were reclassified from mezzanine equity to permanent equity during the second quarter of 2024.
Following stockholder approval of the Series B Conversion Proposal, each share of Series B Preferred Stock automatically converted into 40 shares of the Common Stock, subject to certain limitations, including that a holder of Series B Preferred Stock is prohibited from converting shares of Series B Preferred Stock into
shares of Common Stock if, as a result of such conversion, such holder, together with its affiliates, would beneficially own more than a specified percentage (established by the holder between 0.0% and 19.9%) of the total number of shares of Common Stock issued and outstanding immediately after giving effect to such conversion. 254,958 shares of Series B Preferred Stock automatically converted to 10,198,320 shares of Common Stock; 16,667 shares of Series B Preferred Stock did not automatically convert and remain outstanding as of June 30, 2024 due to beneficial ownership limitations. This conversion was recorded as a reclassification between Series B Preferred Stock and Common Stock based on the historical per-share contributed capital amount of the Series B Preferred Stock.
v3.24.3
Stock-Based Compensation
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
2015 Equity Incentive Plan
In March 2015, the Company adopted the 2015 Equity Incentive Plan (“2015 Plan”), administered by the board of directors, and provides for the Company to sell or issue share of Common Stock or restricted Common Stock, or to grant incentive stock options or nonqualified stock options for the purchase of Common Stock, to employees, members of the board of directors and consultants of the Company. The Company granted options under the 2015 Plan until April 2016 when it was terminated as to future awards, although it continues to govern the terms of options that remain outstanding under the 2015 Plan.
As of June 30, 2024, a total of 3,029 shares of Common Stock are subject to options outstanding under the 2015 Plan and will become available under the 2016 Equity Incentive Plan (“2016 Plan”) to the extent the options are forfeited or lapse unexercised.
2016 Equity Incentive Plan
The 2016 Plan became effective in April 2016 and serves as the successor to the 2015 Plan. Under the 2016 Plan, the Company may grant stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance awards, and stock bonuses. The 2016 Plan, as amended, provides for an automatic increase in the number of shares reserved for issuance thereunder on January 1 of each year for the remaining term of the plan equal to (a) 5.0% of the number of issued and outstanding shares of Common Stock (including such shares issuable pursuant to the exercise or conversion, as applicable, of any outstanding pre-funded warrants and nonvoting convertible preferred stock) on December 31 of the immediately preceding year, or (b) a lesser amount as approved by the board each year (the “Evergreen Provision”). As a result of the Evergreen Provision, on January 1, 2024 and 2023, an additional 3,023,650 and 104,561 shares, respectively, became available for issuance under the 2016 Plan.
As of June 30, 2024, the 2016 Plan had 7,336,181 shares available for future issuance, of which 3,024,766 shares were subject to outstanding option awards.
2018 Equity Inducement Plan
The 2018 Equity Inducement Plan (“2018 Plan”) became effective in February 2018.
As of June 30, 2024, the 2018 Plan had 6,028,000 shares available for future issuance, of which 5,682,341 shares were subject to outstanding option awards and restricted unit awards.
Service-based awards granted under the 2018 Plan, 2016 Plan, and 2015 Plan generally vest over four years and expire after ten years, although awards have been granted with vesting terms less than four years. Under the 2016 Plan and 2018 Plan, the Company may grant stock-based awards with service conditions (“service-based” awards), performance conditions (“performance-based” awards), and market conditions (“market-based” awards).
Spyre 2023 Equity Incentive Plan
On June 22, 2023, in connection with the Asset Acquisition, the Company assumed the Amended and Restated Spyre 2023 Equity Incentive Plan and its outstanding and unexercised stock options, which were
converted to options to purchase 2,734 shares of Common Stock. The acquisition-date fair value of these grants will be recognized as an expense on a pro-rata basis over the vesting period.
The following table summarizes the Company’s stock awards granted under all equity incentive and inducement plans for each of the periods indicated:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
GrantsWeighted Average Grant Date Fair ValueGrantsWeighted Average Grant Date Fair ValueGrantsWeighted Average Grant Date Fair ValueGrantsWeighted Average Grant Date Fair Value
Stock options387,695$36.42 2,536,697$7.50 1,432,353$29.19 2,714,317$7.75 
Parapyre Option Obligation
As of June 30, 2024, the pro-rated estimated fair value of the options to be granted on December 31, 2024 related to the Parapyre Option Obligation, was approximately $6.9 million. For the three and six months ended June 30, 2024, $1.5 million and $6.9 million was recognized as stock compensation expense related to the Parapyre Option Obligation. For the three and six months ended June 30, 2023, $0.2 million was recognized as stock compensation expense related to the Parapyre Option Obligation. As of June 30, 2024, the unamortized expense related to the Parapyre Option Obligation was $7.0 million.
2016 Employee Stock Purchase Plan
Under the Company’s 2016 Employee Stock Purchase Plan (“2016 ESPP”), the Company issued and sold 2,330 and 1,793 shares during the six months ended June 30, 2024 and June 30, 2023, respectively. The aggregate cash proceeds were not material for both periods.
Stock-based Compensation Expense
Total stock-based compensation expense recognized from the Company’s equity incentive plans, 2018 Plan, 2016 ESPP and Parapyre Option Obligation during the periods presented was as follows (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Research and development (1)
$3,451 $394 $10,308 $1,171 
General and administrative5,231 1,517 12,209 2,449 
Total stock-based compensation expense (2)
$8,682 $1,911 $22,517 $3,620 
(1) For the three and six months ended June 30, 2024, $1.5 million and $6.9 million, respectively, was recognized as stock compensation expense related to the Parapyre Option Obligation. For the three and six months ended June 30, 2023, $0.2 million was recognized as stock compensation expense related to the Parapyre Option Obligation.
(2) Of the total $8.7 million and $22.5 million of stock-based compensation expense for the three and six months ended June 30, 2024, $0.7 million and $3.8 million, respectively, is related to legacy Aeglea employees and directors who had been terminated as of the end of the respective period. Of the total $1.9 million and $3.6 million of stock-based compensation expense for the three and six months ended June 30, 2023, $1.8 million and $3.5 million, respectively, is related to legacy Aeglea employees and directors who had been terminated as of the end of the period.

The following table summarizes the weighted-average Black-Scholes option pricing model assumptions used to estimate the fair value of stock options granted under the Company's equity incentive plans, and the shares purchasable under the 2016 ESPP during the periods presented:
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Stock Options Granted
Expected term (in years)5.926.036.006.03
Expected volatility104%117%105%115%
Risk-free interest4.35%3.98%4.01%3.99%
Dividend yield————
 
2016 ESPP
Expected term (in years)0.500.49
Expected volatility98%181%
Risk-free interest5.31%4.99%
Dividend yield——
v3.24.3
Legacy Strategic License Agreements
 6 Months Ended
Jun. 30, 2024
License And Collaboration Agreement [Abstract]  
Legacy Strategic License Agreements Legacy Strategic License Agreements
On March 21, 2021, the Company entered into an exclusive license and supply agreement with Immedica (the "Immedica Agreement"). On July 27, 2023, the Company announced that it had entered into an agreement to sell the global rights to pegzilarginase, an investigational treatment for the rare metabolic disease Arginase 1 Deficiency, to Immedica for $15.0 million in upfront cash proceeds and up to $100.0 million in contingent milestone payments. The sale of pegzilarginase to Immedica superseded and terminated the Immedica Agreement.
The milestone payments are contingent on formal reimbursement decisions by national authorities in key European markets and pegzilarginase approval by the FDA, among other events. In addition to the payment previously made to holders of the Company's CVRs (as defined in Note 1) related to the upfront cash proceeds, any contingent milestone payments under the Immedica Agreement, if paid within the CVR period, will be distributed to holders of the Company's CVRs net of expenses and adjustments pursuant to the contingent value rights agreement we entered into with Equiniti Trust Company LLC (f/k/a American Stock Transfer & Trust Company LLC) as rights agent in connection with the Asset Acquisition.
The Company did not recognize any revenue under the Immedica Agreement for the three and six months ended June 30, 2024. For the three and six months ended June 30, 2023, the Company recognized $0.7 million and $0.9 million, respectively, of development fee revenue in connection with the Immedica Agreement, which was attributable to the PEACE Phase 3 trial and BLA package for pegzilarginase.
For more details on the Immedica Agreement, which was terminated on July 27, 2023, please refer to the Note under Item 1 of Part I, titled "12. Strategic License Agreements" of the Company's Annual Report.
Contract Balances from Customer Contract
The timing of revenue recognition, billings and cash collections results in contract assets and contract liabilities on the Company's balance sheets. The Company recognizes license and development receivables based on billed services, which are derecognized upon reimbursement. When consideration is received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue after control of the goods or services is transferred to the customer and all revenue recognition criteria have been met.
The Company did not have any contract assets or liabilities as of June 30, 2024 and December 31, 2023.
v3.24.3
Net Loss Per Share (as restated)
 6 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
Net Loss Per Share (as restated) Net Loss Per Share (as restated)
Restatement
Subsequent to the filing of its Quarterly Report on Form 10-Q for the period ended September 30, 2024, management identified an error related to the calculation and presentation of loss per share. The Company had previously concluded that the Series A Preferred Stock and Series B Preferred Stock had preferences over the Company's Common Stock and were therefore excluded from the calculation of basic and dilutive net loss per share pursuant to the two-class method. The Company has now determined that the Series A Preferred Stock and Series B Preferred Stock do not have preferential rights over the Company’s Common Stock and, accordingly, are considered to be a second and third class of common stock for purposes of calculating net loss per share. Consequently, the Company has now separately calculated and presented net loss per share for its Common Stock, Series A Preferred Stock and Series B Preferred Stock.
For the three months ended June 30, 2024 and 2023, loss per share attributable to common stockholders as previously presented was $0.86 and $56.79, respectively, and as restated was $0.59 and $40.14, respectively. For the six months ended June 30, 2024 and 2023, loss per share attributable to common stockholders as previously presented was $2.02 and $62.03, respectively, and as restated was $1.31 and $51.26, respectively. Net loss per share attributable to holders of Series A Preferred Stock and Series B Preferred Stock was not previously presented. All related amounts have been updated to reflect the effects of the restatement throughout the financial statements and related footnotes, as applicable.
The Company computes net loss per share of Common Stock, Series A Preferred Stock, and Series B Preferred Stock using the two-class method required for multiple classes of common stock and other participating securities.
The two-class method is an earnings (loss) allocation method under which earnings (loss) per share is calculated for each class of common stock. The Company has determined that the Series A Preferred Stock and Series B Preferred Stock do not have preferential rights when compared to the Company's Common Stock and therefore it must allocate losses to these other classes of common stock, as illustrated in the table below.
Basic and diluted net loss per share is computed by dividing the net loss by the weighted-average number of shares and pre-funded warrants outstanding during the period, without consideration of potential dilutive securities. The pre-funded warrants are included in the computation of basic net loss per share as the exercise price is negligible and they are fully vested and exercisable. For periods in which the Company generated a net loss, the Company does not include potential shares of common stock in diluted net loss per share when the impact of these items is anti-dilutive. The Company has generated a net loss for all periods presented, therefore diluted net loss per share is the same as basic net loss per share since the inclusion of potential shares of common stock would be anti-dilutive.
The following table sets forth the computation of basic and diluted net loss per share of Common Stock, Series A Preferred Stock, and Series B Preferred Stock (in thousands, except share and per share amounts):
Three Months Ended June 30,
20242023
Series A Preferred Stock
Series B Preferred Stock
Common
Stock		Series A Preferred StockSeries B Preferred StockCommon
Stock
Net loss per share, basic and diluted:
Numerator
Allocation of losses$(8,714)$(3,370)$(26,753)$(63,645)$— $(153,436)
Denominator
Weighted-average shares outstanding369,043142,74545,214,61639,640 — 2,711,439
Weighted-average pre-funded warrants outstanding— — 101,648 — — 1,111,166 
Number of shares used in per share computation369,043142,74545,316,26439,640 — 3,822,605
Net loss per share, basic and diluted$(23.61)$(23.61)$(0.59)$(1,605.58)$— $(40.14)
Six Months Ended June 30,
20242023
Series A Preferred Stock
Series B Preferred Stock
Common
Stock		Series A Preferred StockSeries B Preferred StockCommon
Stock
Net loss per share, basic and diluted:
Numerator
Allocation of losses$(21,089)$(8,084)$(53,521)$(40,867)$— $(194,636)
Denominator
Weighted-average shares outstanding403,040154,50340,738,63919,930 — 2,663,408
Weighted-average pre-funded warrants outstanding— — 175,824 — — 1,133,291 
Number of shares used in per share computation403,040154,50340,914,46319,930 — 3,796,699 
Net loss per share, basic and diluted$(52.32)$(52.32)$(1.31)$(2,050.53)$— $(51.26)
The following weighted-average equity instruments were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented:
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Options to purchase common stock5,010,436654,5274,526,643557,515
Unvested restricted stock units79,870—71,368381
Outstanding Parapyre warrants684,407—684,407—
v3.24.3
Restructuring Charges
 6 Months Ended
Jun. 30, 2024
Restructuring and Related Activities [Abstract]  
Restructuring Charges Restructuring Charges
Severance and Stock Compensation
On April 12, 2023, based on the review of the inconclusive interim results from the Company's Phase 1/2 clinical trial of pegtarviliase for the treatment of classical homocystinuria and other business considerations, the Company announced that it had initiated a process to explore strategic alternatives to maximize stockholder value and engaged an independent exclusive financial advisor to support this process.
As a result, the Company implemented a restructuring plan resulting in an approximate 83% reduction of the Company’s existing headcount by June 30, 2023. The Company recognized restructuring expenses consisting of cash severance payments and other employee-related costs of $6.4 million during the three and six months ended June 30, 2023, respectively. In addition, the Company recognized $1.0 million in non-cash stock-based compensation expense related to the accelerated vesting of stock-based awards for certain employees. The Company recorded these restructuring charges based on each employee’s role to the respective research and development and general and administrative operating expense categories on its condensed consolidated statements of operations and comprehensive loss.
Sale of Assets
During the second quarter of 2023, the Company sold various lab equipment, consumables, and furniture and fixtures for total consideration of $0.5 million. After recording the disposal of all property and equipment net of proceeds, the Company recorded a $0.7 million and $0.2 million loss on disposal of long lived assets which is included in Research and development and General and administrative expenses, respectively.
Lease Right-of-use Asset and Leasehold Improvement Impairment
Effective June 30, 2023, the Company abandoned its leased office space in Austin, Texas. As a result, the Company recognized an impairment loss of $0.9 million related to the operating lease right-of-use asset and $1.7 million related to leasehold improvements. On August 7, 2023, the Company terminated its building lease in Austin, Texas. The negotiated termination agreement obligated the Company to pay the lessor a $2.0 million termination fee in exchange for releasing the Company of all further obligations under the lease.
All charges related to the restructuring activities were recognized during the second quarter of 2023. No further restructuring charges were incurred under the restructuring plan. A summary of the charges related to the restructuring activities is as follows (in thousands):
Severance Related ExpensesStock Compensation ExpensesLoss on Disposal of Long Lived AssetsLease Asset ImpairmentTotal Restructuring Costs
Research and development$3,182 $123 $749 $1,405 $5,459 
General and administrative3,266 870 182 1,175 5,493 
Total$6,448 $993 $931 $2,580 $10,952 
As of December 31, 2023, $1.1 million of restructuring costs remained outstanding and unpaid. As of June 30, 2024, there were no remaining liabilities under the restructuring plan described above.
v3.24.3
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation
The consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”) as defined by the Financial Accounting Standards Board and include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Reclassification of Prior Year Presentation
Reclassification of Prior Year Presentation
Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations or balance sheets.
License Agreements Contingent Milestone Payments
License Agreements Contingent Milestone Payments
The Company’s license agreements include specific development, regulatory, and clinical milestone payments that are payable upon the resolution of a contingency, such as upon the selection of a development candidate, first dosing of a human patient in clinical trials or receipt of the Food Drug and Administration’s (“FDA”) approval of a Spyre drug. The achievement of these milestone payments involves many factors outside of the Company’s control and therefore the associated likelihood cannot be considered probable until the related contingency is resolved. Based on the preceding, the Company accrues each milestone payment upon the achievement of the applicable milestone event.
Recently Adopted Accounting Pronouncement
Recently Adopted Accounting Pronouncement
There have been no recent accounting pronouncements or changes in accounting pronouncements during the six months ended June 30, 2024 that are of significance or potential significance to the Company.
Net Loss Per Share
The Company computes net loss per share of Common Stock, Series A Preferred Stock, and Series B Preferred Stock using the two-class method required for multiple classes of common stock and other participating securities.
The two-class method is an earnings (loss) allocation method under which earnings (loss) per share is calculated for each class of common stock. The Company has determined that the Series A Preferred Stock and Series B Preferred Stock do not have preferential rights when compared to the Company's Common Stock and therefore it must allocate losses to these other classes of common stock, as illustrated in the table below.
Basic and diluted net loss per share is computed by dividing the net loss by the weighted-average number of shares and pre-funded warrants outstanding during the period, without consideration of potential dilutive securities. The pre-funded warrants are included in the computation of basic net loss per share as the exercise price is negligible and they are fully vested and exercisable. For periods in which the Company generated a net loss, the Company does not include potential shares of common stock in diluted net loss per share when the impact of these items is anti-dilutive. The Company has generated a net loss for all periods presented, therefore diluted net loss per share is the same as basic net loss per share since the inclusion of potential shares of common stock would be anti-dilutive.
v3.24.3
Fair Value Measurement (Tables)
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis The following tables set forth the fair value of the Company’s financial assets and liabilities at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands):
June 30, 2024
Level 1Level 2Level 3Total
Financial Assets:
Money market funds$43,377 $— $— $43,377 
U.S. government treasury securities136,857 — — 136,857 
U.S. government agency securities— 92,566 — 92,566 
Commercial paper— 119,716 — 119,716 
Corporate bonds— 31,712 — 31,712 
Total financial assets$180,234 $243,994 $— $424,228 
 
Liabilities:
Parapyre Option Obligation$— $6,889 $— $6,889 
CVR liability— — 42,200 42,200 
Total liabilities$— $6,889 $42,200 $49,089 
December 31, 2023
Level 1Level 2Level 3Total
Financial Assets:
Money market funds$150,648 $— $— $150,648 
U.S. government treasury securities32,843 — — 32,843 
U.S. government agency securities— 16,257 — 16,257 
Commercial paper— 104,141 — 104,141 
Corporate bonds— 33,064 — 33,064 
Total financial assets$183,491 $153,462 $— $336,953 
Liabilities:
CVR liability$— $— $42,700 $42,700 
Total liabilities$— $— $42,700 $42,700 
Significant Inputs used to Estimate the Fair Value of Derivative Liabilities The significant inputs used to estimate the fair value of the CVR liability were as follows:
 June 30, 2024
Estimated cash flow dates
02/15/25 - 06/22/26
Estimated probability of success
39% - 100%
Estimated reimbursement rate compared to reimbursement target
81% - 100%
Risk-adjusted discount rates
6.47% - 6.71%
Changes in Derivative Liabilities
The following table presents changes in the CVR liability for the periods presented (in thousands):
 
CVR Liability
Beginning balance as of December 31, 2023$42,700 
Changes in the fair value of the CVR liability930 
Payments(1,430)
Ending Balance as of June 30, 2024$42,200 
v3.24.3
Cash Equivalents and Marketable Securities (Tables)
 6 Months Ended
Jun. 30, 2024
Cash and Cash Equivalents [Abstract]  
Estimated Fair Value of Cash Equivalents and Marketable Securities and the Gross Unrealized Gains and Losses
The following tables summarize the estimated fair value of the Company’s cash equivalents and marketable securities and the gross unrealized gains and losses (in thousands):
June 30, 2024
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
Cash equivalents:
Money market funds$43,377 $— $— $43,377 
Total cash equivalents$43,377 $— $— $43,377 
Marketable securities:
Commercial paper$119,844 $3 $(131)$119,716 
Corporate bonds31,797 — (85)31,712 
U.S. government treasury securities137,061 65 (269)136,857 
U.S. government agency securities92,741 13 (188)92,566 
Total marketable securities$381,443 $81 $(673)$380,851 
December 31, 2023
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Estimated
Fair Value
Cash equivalents:
Money market funds$150,648 $— $— $150,648 
Commercial paper24,950 5 — 24,955 
U.S. government treasury securities10,965 1 — 10,966 
Total cash equivalents$186,563 $6 $— $186,569 
 
Marketable securities:
Commercial paper$79,124 $62 $— $79,186 
Corporate bonds32,984 81 (1)33,064 
U.S. government treasury securities21,846 31 — 21,877 
U.S. government agency securities16,147 110 — 16,257 
Total marketable securities$150,101 $284 $(1)$150,384 
Available-for-Sale Securities in an Unrealized Loss Position
The following table summarizes the available-for-sale securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of June 30, 2024 and December 31, 2023, aggregated by major security type and length of time in a continuous unrealized loss position:
June 30, 2024
Less Than 12 Months
12 Months or Longer
Total
Fair Value
Unrealized
Losses
Fair Value
Unrealized
Losses
Fair Value
Unrealized
Losses
Commercial paper$100,124 $(131)$— $— $100,124 $(131)
Corporate bonds31,712 (85)— — 31,712 (85)
U.S. government treasury securities93,432 (269)— — 93,432 (269)
U.S. government agency securities83,933 (188)— — 83,933 (188)
Total marketable securities$309,201 $(673)$— $— $309,201 $(673)
December 31, 2023
Less Than 12 Months
12 Months or Longer
Total
Fair Value
Unrealized
Losses
Fair Value
Unrealized
Losses
Fair Value
Unrealized
Losses
Corporate bonds$9,907 $(1)$— $— $9,907 $(1)
U.S. government treasury securities4,831 — — — 4,831 — 
Total marketable securities$14,738 $(1)$— $— $14,738 $(1)
Contractual Maturities of Marketable Securities at Estimated Fair Value
The following table summarizes the contractual maturities of the Company’s marketable securities at estimated fair value (in thousands):
June 30,
2024		December 31,
2023
Due in one year or less$270,799 $115,784 
Due in 1 - 2 years110,052 34,600 
Total marketable securities$380,851 $150,384 
v3.24.3
Accrued and Other Current Liabilities (Tables)
 6 Months Ended
Jun. 30, 2024
Payables and Accruals [Abstract]  
Accrued and Other Current Liabilities
Accrued and other current liabilities consist of the following (in thousands):
June 30,
2024		December 31,
2023
Accrued compensation$2,664 $4,054 
Accrued contracted research and development costs2,269 7,092 
Accrued professional and consulting fees515 1,474 
Accrued other235 488 
Total accrued and other current liabilities$5,683 $13,108 
v3.24.3
Asset Acquisition (Tables)
 6 Months Ended
Jun. 30, 2024
Business Combination and Asset Acquisition [Abstract]  
Asset Acquisition Cost
The Asset Acquisition costs are shown on the following table (in millions):
June 22,
2023
Consideration transferred in Series A Preferred Stock and Common Stock$110.0 
Transaction costs incurred by Pre-Merger Spyre3.2 
Fair value of Parapyre Option Obligation assumed by Pre-Merger Spyre0.1 
Total cost to acquire asset$113.3 
The allocation of the purchase price to net assets acquired is as a follows:
June 22,
2023
Acquired in-process research and development$130.5 
Cash acquired3.0 
Assumed liabilities(20.2)
Total cost to acquire asset$113.3 
v3.24.3
Related Party Transactions (Tables)
 6 Months Ended
Jun. 30, 2024
Related Party Transactions [Abstract]  
Expenses related to Related Party which were Settled in Cash
The following is the summary of expenses related to the Paragon Agreement and License Agreements, which were ultimately settled in cash (in millions) and recorded within Research and development in the consolidated statement of operations for the periods presented:
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Reimbursable costs under the Paragon Agreement$2.3 $1.2 $14.0 $1.2 
License Agreements milestone and sublicensing fees5.6 — 5.6 — 
Total related party expense$7.9 $1.2 $19.6 $1.2 
Related Party Accounts Payable
The following is the summary of Related party accounts payable and other current liabilities (in millions):
June 30,
2024		December 31,
2023
Reimbursable costs under the Paragon Agreement$1.2 $16.6 
Parapyre warrants liability6.9 — 
License Agreements development milestone liability (see Note 7)2.5 — 
Total related party accounts payable$10.6 $16.6 
v3.24.3
Stock-Based Compensation (Tables)
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Stock Awards Granted
The following table summarizes the Company’s stock awards granted under all equity incentive and inducement plans for each of the periods indicated:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
GrantsWeighted Average Grant Date Fair ValueGrantsWeighted Average Grant Date Fair ValueGrantsWeighted Average Grant Date Fair ValueGrantsWeighted Average Grant Date Fair Value
Stock options387,695$36.42 2,536,697$7.50 1,432,353$29.19 2,714,317$7.75 
Stock-Based Compensation Expense
Total stock-based compensation expense recognized from the Company’s equity incentive plans, 2018 Plan, 2016 ESPP and Parapyre Option Obligation during the periods presented was as follows (in thousands):
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Research and development (1)
$3,451 $394 $10,308 $1,171 
General and administrative5,231 1,517 12,209 2,449 
Total stock-based compensation expense (2)
$8,682 $1,911 $22,517 $3,620 
(1) For the three and six months ended June 30, 2024, $1.5 million and $6.9 million, respectively, was recognized as stock compensation expense related to the Parapyre Option Obligation. For the three and six months ended June 30, 2023, $0.2 million was recognized as stock compensation expense related to the Parapyre Option Obligation.
(2) Of the total $8.7 million and $22.5 million of stock-based compensation expense for the three and six months ended June 30, 2024, $0.7 million and $3.8 million, respectively, is related to legacy Aeglea employees and directors who had been terminated as of the end of the respective period. Of the total $1.9 million and $3.6 million of stock-based compensation expense for the three and six months ended June 30, 2023, $1.8 million and $3.5 million, respectively, is related to legacy Aeglea employees and directors who had been terminated as of the end of the period.
Assumptions used to Estimate the Fair Value of Stock Options Granted
The following table summarizes the weighted-average Black-Scholes option pricing model assumptions used to estimate the fair value of stock options granted under the Company's equity incentive plans, and the shares purchasable under the 2016 ESPP during the periods presented:
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Stock Options Granted
Expected term (in years)5.926.036.006.03
Expected volatility104%117%105%115%
Risk-free interest4.35%3.98%4.01%3.99%
Dividend yield————
 
2016 ESPP
Expected term (in years)0.500.49
Expected volatility98%181%
Risk-free interest5.31%4.99%
Dividend yield——
v3.24.3
Net Loss Per Share (as restated) (Tables)
 6 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
Reconciliation of Basic and Diluted Net Loss Per Share
The following table sets forth the computation of basic and diluted net loss per share of Common Stock, Series A Preferred Stock, and Series B Preferred Stock (in thousands, except share and per share amounts):
Three Months Ended June 30,
20242023
Series A Preferred Stock
Series B Preferred Stock
Common
Stock		Series A Preferred StockSeries B Preferred StockCommon
Stock
Net loss per share, basic and diluted:
Numerator
Allocation of losses$(8,714)$(3,370)$(26,753)$(63,645)$— $(153,436)
Denominator
Weighted-average shares outstanding369,043142,74545,214,61639,640 — 2,711,439
Weighted-average pre-funded warrants outstanding— — 101,648 — — 1,111,166 
Number of shares used in per share computation369,043142,74545,316,26439,640 — 3,822,605
Net loss per share, basic and diluted$(23.61)$(23.61)$(0.59)$(1,605.58)$— $(40.14)
Six Months Ended June 30,
20242023
Series A Preferred Stock
Series B Preferred Stock
Common
Stock		Series A Preferred StockSeries B Preferred StockCommon
Stock
Net loss per share, basic and diluted:
Numerator
Allocation of losses$(21,089)$(8,084)$(53,521)$(40,867)$— $(194,636)
Denominator
Weighted-average shares outstanding403,040154,50340,738,63919,930 — 2,663,408
Weighted-average pre-funded warrants outstanding— — 175,824 — — 1,133,291 
Number of shares used in per share computation403,040154,50340,914,46319,930 — 3,796,699 
Net loss per share, basic and diluted$(52.32)$(52.32)$(1.31)$(2,050.53)$— $(51.26)
Weighted-Average Equity Instruments Excluded from Calculation of Diluted Net Loss Per Share
The following weighted-average equity instruments were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented:
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Options to purchase common stock5,010,436654,5274,526,643557,515
Unvested restricted stock units79,870—71,368381
Outstanding Parapyre warrants684,407—684,407—
v3.24.3
Restructuring Charges (Tables)
 6 Months Ended
Jun. 30, 2024
Restructuring and Related Activities [Abstract]  
Charges Related to the Restructuring Activities A summary of the charges related to the restructuring activities is as follows (in thousands):
Severance Related ExpensesStock Compensation ExpensesLoss on Disposal of Long Lived AssetsLease Asset ImpairmentTotal Restructuring Costs
Research and development$3,182 $123 $749 $1,405 $5,459 
General and administrative3,266 870 182 1,175 5,493 
Total$6,448 $993 $931 $2,580 $10,952 
v3.24.3
The Company and Basis of Presentation (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended 6 Months Ended 109 Months Ended
May 14, 2024
shares
Apr. 23, 2024
shares
Mar. 20, 2024
USD ($)
shares
Mar. 18, 2024
shares
Dec. 11, 2023
USD ($)
$ / shares
shares
Nov. 21, 2023
shares
Sep. 08, 2023
Jun. 26, 2023
USD ($)
shares
Jun. 22, 2023
$ / shares
shares
Apr. 30, 2023
Jun. 30, 2024
USD ($)
$ / shares
shares
Mar. 31, 2024
shares
Jun. 30, 2023
shares
Jun. 30, 2024
USD ($)
segment
$ / shares
shares
Mar. 31, 2024
USD ($)
shares
Apr. 25, 2024
shares
Dec. 31, 2023
USD ($)
$ / shares
shares
Nov. 22, 2023
shares
Company and Basis of Presentation [Line Items]                                    
Number of operating segments | segment                           1        
Employee workforce, termination percentage                   83.00%     83.00%          
Common stock, par value (in dollars per share) | $ / shares                     $ 0.0001     $ 0.0001     $ 0.0001  
Series B non-voting convertible preferred stock, par value (in dollars per share) | $ / shares         $ 0.0001                          
Proceeds from raising capital | $                             $ 1,100,000      
Accumulated deficit | $                     $ 847,108     $ 847,108     $ 764,414  
Cash, cash equivalents, and marketable securities | $                     $ 426,300     $ 426,300        
Asset Acquisition                                    
Company and Basis of Presentation [Line Items]                                    
Fixed exchange ratio                 54.94488%                  
Spyre Therapeutics, Inc.                                    
Company and Basis of Presentation [Line Items]                                    
Asset acquisition, stockholder payment period                 3 years                  
Asset acquisition, cash payment, threshold period                 1 year                  
Spyre 2023 Equity Incentive Plan | Asset Acquisition                                    
Company and Basis of Presentation [Line Items]                                    
Number of outstanding and unexercised stock options to purchase (in shares)                 2,734                  
Spyre 2023 Equity Incentive Plan | Spyre Therapeutics, Inc.                                    
Company and Basis of Presentation [Line Items]                                    
Number of outstanding and unexercised stock options to purchase (in shares)                 2,734                  
Series A Non Voting Convertible Preferred Stock                                    
Company and Basis of Presentation [Line Items]                                    
Preferred stock, par value (in dollars per share) | $ / shares                     $ 0.0001     $ 0.0001     $ 0.0001  
Conversion basis                 40                  
Preferred stock, not automatically converted, outstanding (in shares)                                   437,037
Issuance of non-voting convertible preferred stock (in shares)               721,452                    
Exchange of Series A non-voting convertible preferred stock into common stock (in shares)   90,992                                
Preferred stock, outstanding (in shares)                     346,045     346,045   346,045 437,037  
Series A Non Voting Convertible Preferred Stock | Asset Acquisition                                    
Company and Basis of Presentation [Line Items]                                    
Number of shares transferred as equity interest in asset acquisition (in shares)                 364,887                  
Preferred stock, par value (in dollars per share) | $ / shares                 $ 0.0001                  
Conversion basis                 40                  
Series A Non Voting Convertible Preferred Stock | Spyre Therapeutics, Inc.                                    
Company and Basis of Presentation [Line Items]                                    
Number of shares transferred as equity interest in asset acquisition (in shares)                 364,887                  
Series B Non Voting Convertible Preferred Stock                                    
Company and Basis of Presentation [Line Items]                                    
Preferred stock, par value (in dollars per share) | $ / shares                     $ 0.0001     $ 0.0001        
Conversion basis     40                              
Preferred stock, not automatically converted, outstanding (in shares)                     16,667     16,667        
Series B non-voting convertible preferred stock, par value (in dollars per share) | $ / shares                                 $ 0.0001  
Issuance of non-voting convertible preferred stock (in shares)     121,625 271,625 150,000                          
Preferred stock, outstanding (in shares)                     16,667     16,667        
Common Stock                                    
Company and Basis of Presentation [Line Items]                                    
Exchange of Series A non-voting convertible preferred stock into common stock (in shares)   3,639,680                                
Private Placement                                    
Company and Basis of Presentation [Line Items]                                    
Gross proceeds received in private placement | $         $ 180,000                          
Placement agent and other offering costs | $     $ 11,200   10,900                          
Private Placement | Series A Non Voting Convertible Preferred Stock                                    
Company and Basis of Presentation [Line Items]                                    
Number of shares sold in private placement               721,452                    
Gross proceeds received in private placement | $               $ 210,000                    
Placement agent and other offering expenses in private placement | $               $ 12,700                    
Private Placement | Series B Non Voting Convertible Preferred Stock                                    
Company and Basis of Presentation [Line Items]                                    
Gross proceeds received in private placement | $     $ 180,000   $ 90,000                          
Common Stock                                    
Company and Basis of Presentation [Line Items]                                    
Reverse stock split, conversion ratio             0.04                      
Shares converted (in shares)                     10,198,000              
Exchange of Series A non-voting convertible preferred stock into common stock (in shares)                     3,640,000              
Common Stock | Conversion Of Series A Non-Voting Convertible Preferred Stock                                    
Company and Basis of Presentation [Line Items]                                    
Shares converted (in shares)           25,972,080                        
Common Stock | Conversion Of Series B Non-Voting Convertible Preferred Stock                                    
Company and Basis of Presentation [Line Items]                                    
Shares converted (in shares) 10,198,320                         10,198,320        
Common Stock | Asset Acquisition                                    
Company and Basis of Presentation [Line Items]                                    
Number of shares transferred as equity interest in asset acquisition (in shares)                 517,809                  
Common stock, par value (in dollars per share) | $ / shares                 $ 0.0001                  
Common Stock | Private Placement                                    
Company and Basis of Presentation [Line Items]                                    
Number of shares of common stock sold (in shares)         6,000,000                          
Preferred Stock | Series A Non Voting Convertible Preferred Stock                                    
Company and Basis of Presentation [Line Items]                                    
Issuance of non-voting convertible preferred stock (in shares)                         721,000          
Exchange of Series A non-voting convertible preferred stock into common stock (in shares)                     (91,000)              
Preferred stock, outstanding (in shares)                     346,000 437,000   346,000 437,000   437,000  
Preferred Stock | Series A Non Voting Convertible Preferred Stock | Conversion Of Series A Non-Voting Convertible Preferred Stock                                    
Company and Basis of Presentation [Line Items]                                    
Shares converted (in shares)           649,302                        
Preferred Stock | Series B Non Voting Convertible Preferred Stock                                    
Company and Basis of Presentation [Line Items]                                    
Shares converted (in shares)                     (255,000)              
Issuance of non-voting convertible preferred stock (in shares)                       122,000            
Preferred stock, outstanding (in shares)                     17,000 0   17,000 0   0  
Preferred Stock | Series B Non Voting Convertible Preferred Stock | Conversion Of Series B Non-Voting Convertible Preferred Stock                                    
Company and Basis of Presentation [Line Items]                                    
Shares converted (in shares) 254,958                         254,958        
v3.24.3
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Financial Assets:    
Total financial assets $ 424,228 $ 336,953
Liabilities:    
Total liabilities 49,089 42,700
U.S. government treasury securities    
Financial Assets:    
Total financial assets 136,857 32,843
U.S. government agency securities    
Financial Assets:    
Total financial assets 92,566 16,257
Commercial paper    
Financial Assets:    
Total financial assets 119,716 104,141
Corporate bonds    
Financial Assets:    
Total financial assets 31,712 33,064
Parapyre Option Obligation    
Liabilities:    
Total liabilities 6,889  
CVR liability    
Liabilities:    
Total liabilities 42,200 42,700
Level 1    
Financial Assets:    
Total financial assets 180,234 183,491
Liabilities:    
Total liabilities 0 0
Level 1 | U.S. government treasury securities    
Financial Assets:    
Total financial assets 136,857 32,843
Level 1 | U.S. government agency securities    
Financial Assets:    
Total financial assets 0 0
Level 1 | Commercial paper    
Financial Assets:    
Total financial assets 0 0
Level 1 | Corporate bonds    
Financial Assets:    
Total financial assets 0 0
Level 1 | Parapyre Option Obligation    
Liabilities:    
Total liabilities 0  
Level 1 | CVR liability    
Liabilities:    
Total liabilities 0 0
Level 2    
Financial Assets:    
Total financial assets 243,994 153,462
Liabilities:    
Total liabilities 6,889 0
Level 2 | U.S. government treasury securities    
Financial Assets:    
Total financial assets 0 0
Level 2 | U.S. government agency securities    
Financial Assets:    
Total financial assets 92,566 16,257
Level 2 | Commercial paper    
Financial Assets:    
Total financial assets 119,716 104,141
Level 2 | Corporate bonds    
Financial Assets:    
Total financial assets 31,712 33,064
Level 2 | Parapyre Option Obligation    
Liabilities:    
Total liabilities 6,889  
Level 2 | CVR liability    
Liabilities:    
Total liabilities 0 0
Level 3    
Financial Assets:    
Total financial assets 0 0
Liabilities:    
Total liabilities 42,200 42,700
Level 3 | U.S. government treasury securities    
Financial Assets:    
Total financial assets 0 0
Level 3 | U.S. government agency securities    
Financial Assets:    
Total financial assets 0 0
Level 3 | Commercial paper    
Financial Assets:    
Total financial assets 0 0
Level 3 | Corporate bonds    
Financial Assets:    
Total financial assets 0 0
Level 3 | Parapyre Option Obligation    
Liabilities:    
Total liabilities 0  
Level 3 | CVR liability    
Liabilities:    
Total liabilities 42,200 42,700
Money market funds    
Financial Assets:    
Total financial assets 43,377 150,648
Money market funds | Level 1    
Financial Assets:    
Total financial assets 43,377 150,648
Money market funds | Level 2    
Financial Assets:    
Total financial assets 0 0
Money market funds | Level 3    
Financial Assets:    
Total financial assets $ 0 $ 0
v3.24.3
Fair Value Measurements - Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 22, 2023
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Parapyre Option Obligation            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Percentage of annual equity grant of options   1.00%   1.00%    
CVR liability            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Changes in the fair value of the CVR liability   $ 900   $ 930    
Change in fair value of forward contract liability       (930) $ 0  
Forward contract liability            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Fair value of forward contract liability $ 106,200   $ 164,400   164,400  
Change in fair value of forward contract liability   $ 0 $ (58,170) $ 0 $ (58,170)  
Spyre Therapeutics, Inc.            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Asset acquisition, stockholder payment period 3 years          
Asset acquisition, cash payment, threshold period 1 year          
Spyre Therapeutics, Inc. | Series A Non Voting Convertible Preferred Stock            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Number of shares transferred as equity interest in asset acquisition (in shares) 364,887          
Outstanding Parapyre warrants            
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]            
Warrants to purchase shares (in shares)           684,407
Exercise price per warrant (in dollars per share)           $ 21.52
v3.24.3
Fair Value Measurements - Significant Inputs used to Estimate the Fair Value of Derivative Liability (Details) - Level 3
Jun. 30, 2024
Minimum | Estimated reimbursement rate compared to reimbursement target | CVR liability  
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Derivative liability, measurement input 0.81
Minimum | Risk-adjusted discount rates | CVR liability  
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Derivative liability, measurement input 0.0647
Minimum | CVR liability | Estimated probability of success  
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Derivative liability, measurement input 0.39
Maximum | Estimated reimbursement rate compared to reimbursement target | CVR liability  
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Derivative liability, measurement input 1
Maximum | Risk-adjusted discount rates | CVR liability  
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Derivative liability, measurement input 0.0671
Maximum | CVR liability | Estimated probability of success  
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]  
Derivative liability, measurement input 1
v3.24.3
Fair Value Measurements - Changes in Derivative Liabilities (Details) - CVR liability - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2024
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Beginning balance   $ 42,700
Changes in the fair value of the CVR liability $ 900 930
Payments   (1,430)
Ending balance $ 42,200 $ 42,200
v3.24.3
Cash Equivalents and Marketable Securities - Estimated Fair Value of Cash Equivalents and Marketable Securities and the Gross Unrealized Gains and Losses (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Debt Securities, Available-for-Sale [Line Items]    
Cash equivalents, amortized cost $ 43,377 $ 186,563
Cash equivalents, gross unrealized gains 0 6
Cash equivalents, gross unrealized losses 0 0
Cash equivalents, estimated fair value 43,377 186,569
Marketable securities, amortized cost 381,443 150,101
Marketable securities, gross unrealized gains 81 284
Marketable securities, gross unrealized losses (673) (1)
Marketable securities, estimated fair value 380,851 150,384
Money market funds    
Debt Securities, Available-for-Sale [Line Items]    
Cash equivalents, amortized cost 43,377 150,648
Cash equivalents, gross unrealized gains 0 0
Cash equivalents, gross unrealized losses 0 0
Cash equivalents, estimated fair value 43,377 150,648
Commercial paper    
Debt Securities, Available-for-Sale [Line Items]    
Cash equivalents, amortized cost   24,950
Cash equivalents, gross unrealized gains   5
Cash equivalents, gross unrealized losses   0
Cash equivalents, estimated fair value   24,955
Marketable securities, amortized cost 119,844 79,124
Marketable securities, gross unrealized gains 3 62
Marketable securities, gross unrealized losses (131) 0
Marketable securities, estimated fair value 119,716 79,186
Corporate bonds    
Debt Securities, Available-for-Sale [Line Items]    
Marketable securities, amortized cost 31,797 32,984
Marketable securities, gross unrealized gains 0 81
Marketable securities, gross unrealized losses (85) (1)
Marketable securities, estimated fair value 31,712 33,064
U.S. government treasury securities    
Debt Securities, Available-for-Sale [Line Items]    
Cash equivalents, amortized cost   10,965
Cash equivalents, gross unrealized gains   1
Cash equivalents, gross unrealized losses   0
Cash equivalents, estimated fair value   10,966
Marketable securities, amortized cost 137,061 21,846
Marketable securities, gross unrealized gains 65 31
Marketable securities, gross unrealized losses (269) 0
Marketable securities, estimated fair value 136,857 21,877
U.S. government agency securities    
Debt Securities, Available-for-Sale [Line Items]    
Marketable securities, amortized cost 92,741 16,147
Marketable securities, gross unrealized gains 13 110
Marketable securities, gross unrealized losses (188) 0
Marketable securities, estimated fair value $ 92,566 $ 16,257
v3.24.3
Cash Equivalents and Marketable Securities - Available-for-Sale Securities in an Unrealized Loss Position (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Fair Value    
Less Than 12 Months $ 309,201 $ 14,738
12 Months or Longer 0 0
Total, fair value 309,201 14,738
Unrealized Losses    
Less Than 12 Months (673) (1)
12 Months or Longer 0 0
Total, unrealized losses (673) (1)
Commercial paper    
Fair Value    
Less Than 12 Months 100,124  
12 Months or Longer 0  
Total, fair value 100,124  
Unrealized Losses    
Less Than 12 Months (131)  
12 Months or Longer 0  
Total, unrealized losses (131)  
Corporate bonds    
Fair Value    
Less Than 12 Months 31,712 9,907
12 Months or Longer 0 0
Total, fair value 31,712 9,907
Unrealized Losses    
Less Than 12 Months (85) (1)
12 Months or Longer 0 0
Total, unrealized losses (85) (1)
U.S. government treasury securities    
Fair Value    
Less Than 12 Months 93,432 4,831
12 Months or Longer 0 0
Total, fair value 93,432 4,831
Unrealized Losses    
Less Than 12 Months (269) 0
12 Months or Longer 0 0
Total, unrealized losses (269) $ 0
U.S. government agency securities    
Fair Value    
Less Than 12 Months 83,933  
12 Months or Longer 0  
Total, fair value 83,933  
Unrealized Losses    
Less Than 12 Months (188)  
12 Months or Longer 0  
Total, unrealized losses $ (188)  
v3.24.3
Cash Equivalents and Marketable Securities - Narrative (Details)
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
USD ($)
bank
Jun. 30, 2023
USD ($)
Jun. 30, 2024
USD ($)
bank
Jun. 30, 2023
USD ($)
Dec. 31, 2023
USD ($)
Cash Equivalents And Marketable Securities [Line Items]          
Number of domestic banking institutions (in banks) | bank 2   2    
US Government Agencies Debt Securities          
Cash Equivalents And Marketable Securities [Line Items]          
Debt securities, available-for-sale, allowance for credit loss $ 0   $ 0   $ 0
Impairment of marketable securities     0   0
Realized gains or losses on marketable securities 0 $ 0 0 $ 0  
Accrued interest receivable on available-for-sale debt securities 1,800,000   1,800,000   $ 900,000
U.S. Banking Institution | Maximum          
Cash Equivalents And Marketable Securities [Line Items]          
Cash, FDIC insured amount $ 250,000   $ 250,000    
v3.24.3
Cash Equivalents and Marketable Securities - Contractual Maturities of Marketable Securities at Estimated Fair Value (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Cash and Cash Equivalents [Abstract]    
Due in one year or less $ 270,799 $ 115,784
Due in 1 - 2 years 110,052 34,600
Total marketable securities $ 380,851 $ 150,384
v3.24.3
Accrued and Other Current Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Payables and Accruals [Abstract]    
Accrued compensation $ 2,664 $ 4,054
Accrued contracted research and development costs 2,269 7,092
Accrued professional and consulting fees 515 1,474
Accrued other 235 488
Total accrued and other current liabilities $ 5,683 $ 13,108
v3.24.3
Asset Acquisition - Narrative (Details) - Spyre Therapeutics, Inc.
$ / shares in Units, $ in Millions
Jun. 22, 2023
USD ($)
$ / shares
shares
Asset Acquisition [Line Items]  
Cost to acquire asset | $ $ 113.3
Asset acquisition consideration transferred issuable shares of common stock on an as-converted basis 14,595,480
Spyre 2023 Equity Incentive Plan  
Asset Acquisition [Line Items]  
Number of outstanding and unexercised stock options to purchase (in shares) 2,734
Series A Non Voting Convertible Preferred Stock  
Asset Acquisition [Line Items]  
Number of shares transferred as equity interest in asset acquisition (in shares) 364,887
Shares issued, price per share (in dollars per share) | $ / shares $ 291.08
Common Stock  
Asset Acquisition [Line Items]  
Number of shares transferred as equity interest in asset acquisition (in shares) 517,809
Shares issued, price per share (in dollars per share) | $ / shares $ 7.277
v3.24.3
Asset Acquisition - Asset Acquisition Cost (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 22, 2023
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Asset Acquisition [Line Items]          
Acquired in-process research and development   $ 0 $ 130,486 $ 0 $ 130,486
Cash acquired       $ 0 $ 3,035
Spyre Therapeutics, Inc.          
Asset Acquisition [Line Items]          
Consideration transferred in Series A Preferred Stock and Common Stock $ 110,000        
Transaction costs incurred by Pre-Merger Spyre 3,200        
Fair value of Parapyre Option Obligation assumed by Pre-Merger Spyre 100        
Acquired in-process research and development 130,500        
Cash acquired 3,000        
Assumed liabilities (20,200)        
Total cost to acquire asset $ 113,300        
v3.24.3
Licensing Agreements (Details) - Related Party - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Dec. 14, 2023
Jul. 12, 2023
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Paragon Agreement            
Related Party Transaction [Line Items]            
Campaign timeline, minimum term         5 years  
Royalty step-down percentage     33.00%   33.00%  
Royalty term expiration period         12 years  
Termination notice period         60 days  
Sublicensing fee     $ 0.1   $ 0.1  
Milestone expense recognized     5.5 $ 0.0 5.5 $ 0.0
Milestone payments     3.0   3.0  
Milestone payments, outstanding and payable     $ 2.5   2.5  
SPY001 License Agreement            
Related Party Transaction [Line Items]            
Nomination fee   $ 1.5        
First milestone payment   2.5        
SPY001 License Agreement | Maximum            
Related Party Transaction [Line Items]            
Contingent obligation based on milestones   $ 22.0        
SPY002 License Agreement            
Related Party Transaction [Line Items]            
Nomination fee $ 1.5          
First milestone payment 2.5          
SPY002 License Agreement | Maximum            
Related Party Transaction [Line Items]            
Contingent obligation based on milestones $ 22.0          
Sublicensing fee         $ 20.0  
v3.24.3
Related Party Transactions - Narrative (Details)
 3 Months Ended 6 Months Ended
Nov. 22, 2023
$ / shares
shares
Jun. 30, 2024
USD ($)
seat
shares
Jun. 30, 2023
USD ($)
shares
Jun. 30, 2024
USD ($)
seat
shares
Jun. 30, 2023
USD ($)
shares
Apr. 01, 2024
Mar. 31, 2024
Related Party Transaction [Line Items]              
Stock-based compensation   $ 8,700,000 $ 1,900,000 $ 22,517,000 $ 3,620,000    
Options granted (in shares) | shares   387,695 2,536,697 1,432,353 2,714,317    
Stock-based compensation expense   $ 8,682,000 $ 1,911,000 $ 22,517,000 $ 3,620,000    
Related Party              
Related Party Transaction [Line Items]              
Development cost reduction, percent           50.00%  
Development cost reimbursement, percent             50.00%
Related Party | Paragon Agreement              
Related Party Transaction [Line Items]              
Number of board seats held by related party | seat   2   2      
Amount of related party transaction   $ 11,300,000   $ 29,500,000      
Stock-based compensation   1,500,000   6,900,000      
Receivable   $ 5,900,000   $ 5,900,000      
Common stock, shares outstanding, percentage available to purchase on a diluted basis   1.00%   1.00%      
Related Party | Subsequent to Asset Acquisition              
Related Party Transaction [Line Items]              
Amount of related party transaction   $ 9,700,000   $ 26,800,000      
Related Party | Consulting Agreement              
Related Party Transaction [Line Items]              
Options granted (in shares) | shares 477,000            
Exercise price (in dollars per share) | $ / shares $ 10.39            
Vesting period 36 months            
Stock-based compensation expense   $ 200,000 $ 0 $ 500,000 $ 0    
Related Party | Consulting Agreement | Share-Based Payment Arrangement, Tranche One              
Related Party Transaction [Line Items]              
Vesting percentage 25.00%            
Vesting period 1 year            
Paragon Therapeutics Inc | Maximum | Related Party | Paragon Agreement              
Related Party Transaction [Line Items]              
Percentage of ownership by noncontrolling owner   5.00%   5.00%      
Fairmount Funds Management LLC | Minimum | Related Party | Paragon Agreement              
Related Party Transaction [Line Items]              
Percentage of ownership by noncontrolling owner   5.00%   5.00%      
Percentage of ownership held in third party   5.00%   5.00%      
v3.24.3
Related Party Transactions - Expenses related to Related Party which were Settled in Cash (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Related Party Transaction [Line Items]        
Research and development [1] $ 32,636 $ 17,386 $ 67,564 $ 31,162
Related Party        
Related Party Transaction [Line Items]        
Research and development 9,400 1,400 26,500 1,400
Paragon and License Agreement | Related Party        
Related Party Transaction [Line Items]        
Research and development 7,900 1,200 19,600 1,200
Paragon Agreement | Related Party        
Related Party Transaction [Line Items]        
Research and development 2,300 1,200 14,000 1,200
License Agreement | Related Party        
Related Party Transaction [Line Items]        
Research and development $ 5,600 $ 0 $ 5,600 $ 0
[1] Includes $9.4 million and $26.5 million in related party expenses for the three and six months ended June 30, 2024, respectively, and $1.4 million related party expenses for the three and six months ended June 30, 2023.
v3.24.3
Related Party Transactions - Related Party Accounts Payable (Details) - Related Party - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Related Party Transaction [Line Items]    
Total related party accounts payable $ 10.6 $ 16.6
Paragon Agreement    
Related Party Transaction [Line Items]    
Total related party accounts payable 1.2 16.6
Parapyre warrants liability    
Related Party Transaction [Line Items]    
Total related party accounts payable 6.9 0.0
License Agreements development milestone liability (see Note 7)    
Related Party Transaction [Line Items]    
Total related party accounts payable $ 2.5 $ 0.0
v3.24.3
Convertible Preferred Stock and Stockholders' Equity - Narrative (Details)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended 40 Months Ended
May 14, 2024
shares
Apr. 23, 2024
shares
Mar. 20, 2024
USD ($)
shares
Mar. 18, 2024
shares
Dec. 11, 2023
USD ($)
shares
Nov. 21, 2023
shares
Jul. 07, 2023
shares
Jun. 26, 2023
USD ($)
shares
Jun. 22, 2023
Jun. 30, 2024
shares
Mar. 31, 2024
USD ($)
shares
Jun. 30, 2023
USD ($)
shares
Jun. 30, 2024
shares
May 31, 2022
$ / shares
Apr. 25, 2024
shares
Dec. 31, 2023
$ / shares
shares
Nov. 22, 2023
shares
Common Stock                                  
Class of Stock [Line Items]                                  
Shares converted (in shares)                   10,198,000              
Exchange of Series A non-voting convertible preferred stock into common stock (in shares)                   3,640,000              
Conversion Of Series A Non-Voting Convertible Preferred Stock | Common Stock                                  
Class of Stock [Line Items]                                  
Shares converted (in shares)           25,972,080                      
Conversion Of Series B Non-Voting Convertible Preferred Stock | Common Stock                                  
Class of Stock [Line Items]                                  
Shares converted (in shares) 10,198,320                       10,198,320        
Private Placement                                  
Class of Stock [Line Items]                                  
Gross proceeds received in private placement | $         $ 180,000                        
Series A Non Voting Convertible Preferred Stock                                  
Class of Stock [Line Items]                                  
Preferred stock issued and outstanding percentage                 30.00%                
Issuance of non-voting convertible preferred stock (in shares)               721,452                  
Issuance of Series A/B non-voting convertible preferred stock in connection with private placement, net of financing costs | $               $ 197,300                  
Conversion basis                 40                
Preferred stock, not automatically converted, outstanding (in shares)                                 437,037
Exchange of Series A non-voting convertible preferred stock into common stock (in shares)   90,992                              
Preferred stock, outstanding (in shares)                   346,045     346,045   346,045 437,037  
Series A Non Voting Convertible Preferred Stock | Preferred Stock                                  
Class of Stock [Line Items]                                  
Issuance of non-voting convertible preferred stock (in shares)                       721,000          
Issuance of Series A/B non-voting convertible preferred stock in connection with private placement, net of financing costs | $                       $ 197,323          
Exchange of Series A non-voting convertible preferred stock into common stock (in shares)                   (91,000)              
Preferred stock, outstanding (in shares)                   346,000 437,000   346,000     437,000  
Series A Non Voting Convertible Preferred Stock | Conversion Of Series A Non-Voting Convertible Preferred Stock | Preferred Stock                                  
Class of Stock [Line Items]                                  
Shares converted (in shares)           649,302                      
Series A Non Voting Convertible Preferred Stock | Asset Acquisition                                  
Class of Stock [Line Items]                                  
Number of shares transferred as equity interest in asset acquisition (in shares)             364,887                    
Series A Non Voting Convertible Preferred Stock | Private Placement                                  
Class of Stock [Line Items]                                  
Number of shares sold in private placement               721,452                  
Gross proceeds received in private placement | $               $ 210,000                  
Common Stock                                  
Class of Stock [Line Items]                                  
Exchange of Series A non-voting convertible preferred stock into common stock (in shares)   3,639,680                              
Series B Non Voting Convertible Preferred Stock                                  
Class of Stock [Line Items]                                  
Issuance of non-voting convertible preferred stock (in shares)     121,625 271,625 150,000                        
Conversion basis     40                            
Preferred stock, not automatically converted, outstanding (in shares)                   16,667     16,667        
Preferred stock, outstanding (in shares)                   16,667     16,667        
Series B Non Voting Convertible Preferred Stock | Preferred Stock                                  
Class of Stock [Line Items]                                  
Issuance of non-voting convertible preferred stock (in shares)                     122,000            
Issuance of Series A/B non-voting convertible preferred stock in connection with private placement, net of financing costs | $                     $ 168,850            
Shares converted (in shares)                   (255,000)              
Preferred stock, outstanding (in shares)                   17,000 0   17,000     0  
Series B Non Voting Convertible Preferred Stock | Conversion Of Series B Non-Voting Convertible Preferred Stock | Preferred Stock                                  
Class of Stock [Line Items]                                  
Shares converted (in shares) 254,958                       254,958        
Series B Non Voting Convertible Preferred Stock | Private Placement                                  
Class of Stock [Line Items]                                  
Gross proceeds received in private placement | $     $ 180,000   $ 90,000                        
Maximum | Series A Non Voting Convertible Preferred Stock                                  
Class of Stock [Line Items]                                  
Beneficially holders owned percentage                 19.90%                
Maximum | Series B Non Voting Convertible Preferred Stock                                  
Class of Stock [Line Items]                                  
Beneficial holders owned percentage                         19.90%        
Minimum | Series A Non Voting Convertible Preferred Stock                                  
Class of Stock [Line Items]                                  
Beneficially holders owned percentage                 0.00%                
Minimum | Series B Non Voting Convertible Preferred Stock                                  
Class of Stock [Line Items]                                  
Beneficial holders owned percentage                         0.00%        
Pre-Funded Warrants                                  
Class of Stock [Line Items]                                  
Exercise price per warrant (in dollars per share) | $ / shares                           $ 0.0025      
Maximum ownership percentage of common stock shares for outstanding warrants to be exercised                           4.99%      
Ownership percentage for outstanding warrants to purchase shares of common stock to be exercised to certain holders                           9.99%      
Revised ownership percentage, period to take effect after notice                           61 days      
Number of shares sold in private placement                   0     0        
Pre-Funded Warrants | Maximum                                  
Class of Stock [Line Items]                                  
Maximum ownership percentage of common stock shares for outstanding warrants to be exercised                           19.99%      
Outstanding Parapyre warrants                                  
Class of Stock [Line Items]                                  
Exercise price per warrant (in dollars per share) | $ / shares                               $ 21.52  
Maximum ownership percentage of common stock shares for outstanding warrants to be exercised                         4.99%        
Warrants to purchase shares (in shares)                               684,407  
Number of warrants exercised (in shares)                   0     0        
v3.24.3
Stock-Based Compensation - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 22, 2023
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2016
Jan. 01, 2024
Jan. 01, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                
Stock-based compensation   $ 8,700 $ 1,900 $ 22,517 $ 3,620      
Two Thousand And Fifteen And Two Thousand And Sixteen Equity Incentive Plan And Two Thousand And Eighteen Equity Inducement Plan | Service Based Awards                
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                
Vest period grant date       4 years        
Share-based payment award, term       10 years        
Two Thousand And Fifteen Equity Incentive Plan                
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                
Shares subject to options outstanding (in shares)       3,029        
2016 Equity Incentive Plan                
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                
Annual percentage of additional shares           5.00%    
Additional number of shares available for issuance (in shares)             3,023,650 104,561
Common stock available for future issuance (in shares)   7,336,181   7,336,181        
Outstanding option awards (in shares)   3,024,766   3,024,766        
2018 Equity Inducement Plan                
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                
Common stock available for future issuance (in shares)   6,028,000   6,028,000        
Outstanding option awards (in shares)   5,682,341   5,682,341        
Spyre 2023 Equity Incentive Plan | Asset Acquisition                
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                
Number of outstanding and unexercised stock options to purchase (in shares) 2,734              
Parapyre Option Obligation                
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                
Pro-rated estimated fair value of options       $ 6,900        
Stock-based compensation   $ 1,500 $ 200 6,900 $ 200      
Unamortized expense   $ 7,000   $ 7,000        
2016 Employee Stock Purchase Plan                
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]                
Number of shares issued (in shares)       2,330 1,793      
v3.24.3
Stock-Based Compensation - Stock Awards Granted (Details) - $ / shares
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]        
Grants (in shares) 387,695 2,536,697 1,432,353 2,714,317
Weighted Average Grant Date Fair Value (in dollars per share) $ 36.42 $ 7.50 $ 29.19 $ 7.75
v3.24.3
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]        
Total stock-based compensation expense $ 8,682 $ 1,911 $ 22,517 $ 3,620
Stock-based compensation 8,700 1,900 22,517 3,620
Aeglea Employees and Directors        
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]        
Stock-based compensation 700 1,800 3,800 3,500
Parapyre Option Obligation        
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]        
Stock-based compensation 1,500 200 6,900 200
Research and Development Expense        
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]        
Total stock-based compensation expense 3,451 394 10,308 1,171
General and administrative        
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]        
Total stock-based compensation expense $ 5,231 $ 1,517 $ 12,209 $ 2,449
v3.24.3
Stock-Based Compensation - Assumptions used to Estimate the Fair Value of Stock Options Granted (Details)
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Stock Options Granted        
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]        
Expected term (in years) 5 years 11 months 1 day 6 years 10 days 6 years 6 years 10 days
Expected volatility 104.00% 117.00% 105.00% 115.00%
Risk-free interest 4.35% 3.98% 4.01% 3.99%
Dividend yield 0.00% 0.00% 0.00% 0.00%
2016 ESPP        
Employee Service Share Based Compensation Allocation of Recognized Period Costs [Line Items]        
Expected term (in years)     6 months 5 months 26 days
Expected volatility     98.00% 181.00%
Risk-free interest     5.31% 4.99%
Dividend yield     0.00% 0.00%
v3.24.3
Legacy Strategic License Agreements - Narrative (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jul. 27, 2023
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Research And Development Arrangement Contract To Perform For Others [Line Items]            
Total revenue   $ 0 $ 688,000 $ 0 $ 886,000  
Contract assets   0   0   $ 0
Contract liabilities   0   0   $ 0
Immedica Pharma AB            
Research And Development Arrangement Contract To Perform For Others [Line Items]            
Total revenue   $ 0   $ 0    
Immedica Pharma AB | Peace Phase 3 Trial and Drug Supply            
Research And Development Arrangement Contract To Perform For Others [Line Items]            
Total revenue     $ 700,000   $ 900,000  
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Global Rights To Pegzilarginase            
Research And Development Arrangement Contract To Perform For Others [Line Items]            
Proceeds from sale of intangible assets $ 15,000,000.0          
Contingent consideration $ 100,000,000.0          
v3.24.3
Net Loss Per Share (as restated) - Narrative (Details) - $ / shares
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Net loss per share, basic (in dollars per share) $ 0.59 $ 40.14 $ 1.31 $ 51.26
Net loss per share, diluted (in dollars per share) 0.59 40.14 1.31 51.26
Previously Reported        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Net loss per share, basic (in dollars per share) 0.86 56.79 2.02 62.03
Net loss per share, diluted (in dollars per share) $ 0.86 $ 56.79 $ 2.02 $ 62.03
v3.24.3
Net Loss Per Share (as restated) - Reconciliation of Basic and Diluted Net Loss Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Mar. 31, 2023
Jun. 30, 2024
Jun. 30, 2023
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]            
Allocation of losses $ (38,837) $ (43,857) $ (217,081) $ (18,422) $ (82,694) $ (235,503)
Weighted-average shares outstanding (in shares) 45,316,264   3,822,605   40,914,463 3,796,699
Number of shares used in per share computation (in shares) 45,316,264   3,822,605   40,914,463 3,796,699
Net loss per share, basic (in dollars per share) $ 0.59   $ 40.14   $ 1.31 $ 51.26
Net loss per share, diluted (in dollars per share) $ 0.59   $ 40.14   $ 1.31 $ 51.26
Series A Preferred Stock            
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]            
Allocation of losses $ (8,714)   $ (63,645)   $ (21,089) $ (40,867)
Weighted-average shares outstanding (in shares) 369,043   39,640   403,040 19,930
Weighted average pre-funded warrants (in shares) 0   0   0 0
Number of shares used in per share computation (in shares) 369,043   39,640   403,040 19,930
Net loss per share, basic (in dollars per share) $ (23.61)   $ (1,605.58)   $ (52.32) $ (2,050.53)
Net loss per share, diluted (in dollars per share) $ (23.61)   $ (1,605.58)   $ (52.32) $ (2,050.53)
Series B Preferred Stock            
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]            
Allocation of losses $ (3,370)   $ 0   $ (8,084) $ 0
Weighted-average shares outstanding (in shares) 142,745   0   154,503 0
Weighted average pre-funded warrants (in shares) 0   0   0 0
Number of shares used in per share computation (in shares) 142,745   0   154,503 0
Net loss per share, basic (in dollars per share) $ (23.61)   $ 0   $ (52.32) $ 0
Net loss per share, diluted (in dollars per share) $ (23.61)   $ 0   $ (52.32) $ 0
Common Stock            
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]            
Allocation of losses $ (26,753)   $ (153,436)   $ (53,521) $ (194,636)
Weighted-average shares outstanding (in shares) 45,214,616   2,711,439   40,738,639 2,663,408
Weighted average pre-funded warrants (in shares) 101,648   1,111,166   175,824 1,133,291
Number of shares used in per share computation (in shares) 45,316,264   3,822,605   40,914,463 3,796,699
Net loss per share, basic (in dollars per share) $ (0.59)   $ (40.14)   $ (1.31) $ (51.26)
Net loss per share, diluted (in dollars per share) $ (0.59)   $ (40.14)   $ (1.31) $ (51.26)
v3.24.3
Net Loss Per Share (as restated) - Weighted-Average Equity Instruments Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Options to purchase common stock        
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share (in shares) 5,010,436 654,527 4,526,643 557,515
Unvested restricted stock units        
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share (in shares) 79,870 0 71,368 381
Outstanding Parapyre warrants        
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share (in shares) 684,407 0 684,407 0
v3.24.3
Restructuring Charges - Narrative (Details) - USD ($)
 1 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2023
Apr. 30, 2023
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Aug. 07, 2023
Restructuring Cost and Reserve [Line Items]              
Employee workforce, termination percentage   83.00% 83.00%        
Cash severance payments and other employee-related costs     $ 6,400,000   $ 6,400,000    
Non-cash stock-based compensation expense related to accelerated vesting of stock-based awards         1,000,000.0    
Total consideration from disposal of long lived assets $ 500,000   500,000   500,000    
Loss on disposal of long-lived assets       $ 0 $ 915,000    
Lease asset impairment 900,000            
Impairment on leasehold improvements $ 1,700,000            
Termination fee amount             $ 2,000,000.0
Restructuring costs outstanding and unpaid       $ 0   $ 1,100,000  
Research and Development Expense              
Restructuring Cost and Reserve [Line Items]              
Loss on disposal of long-lived assets     700,000        
General and administrative              
Restructuring Cost and Reserve [Line Items]              
Loss on disposal of long-lived assets     $ 200,000        
v3.24.3
Restructuring Charges - Charges Related to the Restructuring Activities (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Restructuring Cost and Reserve [Line Items]          
Severance Related Expenses     $ 6,400   $ 6,400
Stock-based compensation expense   $ 8,682 1,911 $ 22,517 3,620
Loss on Disposal of Long Lived Assets       0 915
Lease Asset Impairment $ 900        
Research and Development Expense          
Restructuring Cost and Reserve [Line Items]          
Stock-based compensation expense   3,451 394 10,308 1,171
Loss on Disposal of Long Lived Assets     700    
General and administrative          
Restructuring Cost and Reserve [Line Items]          
Stock-based compensation expense   $ 5,231 1,517 $ 12,209 $ 2,449
Loss on Disposal of Long Lived Assets     200    
Restructuring Activities          
Restructuring Cost and Reserve [Line Items]          
Severance Related Expenses     6,448    
Stock-based compensation expense     993    
Loss on Disposal of Long Lived Assets     931    
Lease Asset Impairment     2,580    
Total Restructuring Costs     10,952    
Restructuring Activities | Research and Development Expense          
Restructuring Cost and Reserve [Line Items]          
Severance Related Expenses     3,182    
Stock-based compensation expense     123    
Loss on Disposal of Long Lived Assets     749    
Lease Asset Impairment     1,405    
Total Restructuring Costs     5,459    
Restructuring Activities | General and administrative          
Restructuring Cost and Reserve [Line Items]          
Severance Related Expenses     3,266    
Stock-based compensation expense     870    
Loss on Disposal of Long Lived Assets     182    
Lease Asset Impairment     1,175    
Total Restructuring Costs     $ 5,493    
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