OnKure Therapeutics, Inc. (NASDAQ:OKUR), a pharmaceutical company, has reported a change in its independent registered public accounting firm as of Thursday. The Boulder, Colorado-based company, which was formerly known as Reneo Pharmaceuticals, Inc., has dismissed Ernst & Young LLP (EY) and appointed KPMG LLP as its new auditor.
The Audit Committee of OnKure's Board of Directors approved the dismissal of EY, which had reported on the company's financial statements for the fiscal years ending December 31, 2023, and 2022. EY's reports did not contain any adverse opinion or modifications, except for an explanatory paragraph in the 2022 report about the company's ability to continue as a going concern.
There were no disagreements or reportable events between OnKure and EY during the two most recent fiscal years and the subsequent interim period up to the dismissal date. EY has provided a letter to the SEC, filed as Exhibit 16.1, agreeing with the company's statements regarding their dismissal.
The appointment of KPMG follows OnKure's merger with Legacy OnKure, which was completed on October 4, 2024. KPMG had previously served as the auditor for Legacy OnKure. The company has stated that there were no consultations with KPMG that would require disclosure under SEC regulations.
In other recent news, Oppenheimer initiated coverage on OnKure Therapeutics Inc. with an Outperform rating, citing the potential of OnKure's drug candidate, OKI-219, to become a preferred treatment for a common breast cancer mutation. OnKure is anticipated to present early results from studies on OKI-219 at the San Antonio Breast Cancer Symposium later this year. Concurrently, OnKure is in the spotlight due to a merger with Reneo Pharmaceuticals, Inc., which has received approval from Reneo stockholders.
This merger will result in OnKure becoming a direct, wholly-owned subsidiary of Reneo. In relation to this merger, Reneo announced the departure of Chief Development Officer, Ashley F. Hall, J.D., aligning with the discontinuation of its historical drug development activities. Hall's termination is in accordance with the company's severance benefit plan. These recent developments mark significant events in the trajectory of both OnKure and Reneo.
InvestingPro Insights
Recent financial data from InvestingPro sheds light on OnKure Therapeutics' (NASDAQ:OKUR) current financial position, providing context to the company's recent auditor change and merger. With a market capitalization of $229.17 million, OnKure is operating in a challenging financial environment.
InvestingPro Tips indicate that the company is quickly burning through cash and is not profitable over the last twelve months. This aligns with the explanatory paragraph in EY's 2022 audit report regarding the company's ability to continue as a going concern. The company's operating income stands at -$43.72 million for the last twelve months as of Q2 2024, further illustrating its financial challenges.
Another InvestingPro Tip reveals that analysts do not anticipate the company will be profitable this year. This insight, combined with the negative P/E ratio of -5.42, underscores the financial hurdles OnKure faces as it navigates its post-merger landscape.
For investors seeking a more comprehensive analysis, InvestingPro offers 6 additional tips that could provide valuable insights into OnKure's financial health and future prospects.
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