Silence Therapeutics (SLN) Q3 2026 earnings review
Silence Therapeutics agrees to Merck KGaA buyout after cutting losses
Silence Therapeutics, a developer of gene-silencing drugs, agreed to sell itself to Merck KGaA after reporting positive blood-cancer trial results. The clinical milestone allowed the London-based biotechnology company to raise $201 million in an August stock sale, lifting cash to $248 million. Research spending fell by more than half from a year ago, which cut the quarterly net loss to $12 million even as partner revenue dropped to zero.
| Cash and cash equivalents | $247.7M +244% from last quarter |
|---|---|
| Research and development costs | $9.3M -55% from a year ago |
| Net loss | $12.4M $21.0M a year ago |
| Merck KGaA acquisition outlook | Q1 2027 expected closing window |
⚖️ Verdict: 🟢🟢 Very Bullish
The story got better because the positive Phase 2 readout for divesiran led first to a full balance-sheet refill and then to a definitive buyout agreement with Merck KGaA. That acquisition gives the pipeline a large pharmaceutical owner and removes the risk of funding expensive late-stage trials alone. One caution: the August equity offering increased the share count by 32% by our math, and partner revenue remained at zero for a second straight quarter.
The question now is whether Silence and Merck KGaA clear every regulatory, court and shareholder hurdle on schedule. Either the transaction closes smoothly in the first quarter of 2027, or a delay forces the company to rely on its newly raised cash pile. The upcoming proxy statement filing and the December hematology presentation will provide the next checkpoints.
🐂 Bull Case
Merck KGaA Agreed to Acquire Silence Therapeutics
Silence Therapeutics develops medicines that silence disease-causing genes using short interfering RNA (siRNA), molecules that block cells from making specific proteins. On October 19, 2026, the London-based drug developer announced that it "entered into a definitive agreement to be acquired by Merck KGaA, Darmstadt, Germany". A full buyout removes the need for the business to fund expensive late-stage human trials on its own.
The company stated that "The transaction is expected to close in the first quarter of 2027, subject to the satisfaction of customary closing conditions". Those steps include approvals from regulators, a vote by shareholders, and sanction from the High Court of Justice of England and Wales. Silence plans to mail a proxy statement to investors explaining the legal arrangement.
What to watch: the filing of the definitive proxy statement with the US Securities and Exchange Commission and the timing of the shareholder vote before the first quarter of 2027. A smooth approval schedule will confirm that the acquisition remains on track to close on time.
Blood Cancer Trial Met Its Goal and Funded the Balance Sheet
Divesiran is an experimental siRNA medicine designed to treat polycythemia vera, a rare blood disease where the body makes too many red blood cells, by silencing a gene called TMPRSS6. On August 10, 2026, Silence reported positive topline results from its Phase 2 SANRECO trial in 48 patients, "supporting a potentially best-in-class profile with once-every-three-month dosing".
One day after releasing the trial results, the drugmaker announced an upsized public stock offering that brought in $201.3 million in gross proceeds. That cash raise lifted cash and cash equivalents to $247.7 million at September 30, 2026, up 243.7% from $72.1 million at the end of June by our math. The American Society of Hematology also accepted the trial results for an oral presentation.
What to watch: the detailed SANRECO Phase 2 oral presentation at the American Society of Hematology annual meeting held December 12 to 15, 2026. The presentation will show the exact reduction in blood-drawing procedures across the six-week and twelve-week dosing schedules.
Lower Research and Staff Spending Cut the Quarterly Loss
Silence has been trimming its cash burn since completing preparation work last year for zerlasiran, its experimental cholesterol drug that awaits a development partner for Phase 3 testing. In the third quarter, the biotechnology group cut its operating loss by 45.8% from a year ago to $14.2 million by our math, while net loss narrowed by 40.7% to $12.4 million.
- Research and development costs: $9.3 million, down 54.7% from $20.5 million a year ago by our math
- General and administrative expenses: $4.9 million, down 15.1% from $5.8 million a year ago by our math
- Loss per share: $0.08, compared with $0.15 in the third quarter of 2025
The company said research spending fell mainly because of "zerlasiran Phase 3 readiness being completed in 2025 as well as reduced personnel costs". Administrative expenses dropped due to "an effort to reduce administrative costs". Lower quarterly spending preserves the $247.7 million cash balance while the Merck KGaA acquisition goes through regulatory checks.
What to watch: fourth-quarter general and administrative expenses when full-year results arrive. Legal and advisory bills from the Merck KGaA transaction signed in October will test whether overhead spending stays near $5 million a quarter.
🐻 Bear Case
Partner Revenue Dried Up for a Second Straight Quarter
Silence describes itself as advancing a growing pipeline of medicine candidates using its mRNAi GOLD platform, its technology for delivering gene-silencing drugs to liver cells. Before selling approved drugs, clinical-stage biotechnology companies rely on milestone payments and research funding from pharmaceutical partners such as AstraZeneca to bring in revenue.
In the third quarter, the UK drugmaker recorded zero revenue, down from $159 thousand a year ago and matching the zero revenue posted in the second quarter. For the first nine months of 2026, revenue fell 19.6% from a year ago to $422 thousand by our math. Non-current contract liabilities, which represent upfront partner cash not yet earned as revenue, sat unchanged from June at $55.2 million.
What to watch: contract liabilities and collaboration revenue in the annual report. If the Merck KGaA acquisition faces delays, zero partner revenue means Silence must fund all clinical trials entirely from its own cash balance.
August Stock Offering Expanded the Share Count by 32%
Before striking the October sale agreement with Merck KGaA, Silence tapped public equity investors to refill its bank account following the August clinical readout for divesiran. While the $201.3 million stock offering solved near-term funding needs, it substantially increased the number of shares dividing the company's value.
Total issued ordinary shares climbed to 186.6 million at September 30, 2026, up 31.7% from 141.7 million at both June 30, 2026 and December 31, 2025 by our math. Because the stock sale happened partway through August, the weighted average share count used to calculate third-quarter loss per share rose 16.9% from a year ago to 165.6 million.
What to watch: the final fully diluted share count detailed in the upcoming proxy statement. Any standalone business case if the buyout fails would rest on 186.6 million shares rather than the 141.7 million shares outstanding in the first half.
💲 Other KPIs
The UK research tax credit benefit fell 73.0% from $2.58 million a year ago by our math, tracking the 54.7% drop in research spending. Over the same period, the R&D benefit receivable on the balance sheet dropped 54.7% from $22.0 million at year-end 2025 to $10.0 million as Silence collected prior claims.
Unpaid bills to suppliers and trial vendors decreased 16.4% from $13.36 million at the end of December 2025 and fell 11.4% from $12.61 million at the end of June 2026 by our math. The steady drop follows the wind-down of zerlasiran Phase 3 preparation and the completion of SANRECO Phase 2 dosing.
🔮 Guidance
New. Silence expects the sale to Merck KGaA to close in the first quarter of 2027, once regulators, shareholders and the UK court approve the agreement.
New. The drugmaker will present Phase 2 SANRECO data for divesiran at the American Society of Hematology meeting in New Orleans in mid-December 2026.
❓ Key Questions
What are the financial terms of the Merck KGaA buyout?
The third-quarter earnings release points to the October 19 announcement but does not list the purchase price, upfront payment, or any milestone payments included in the transaction agreement.
Remain SLN098 and SLN365 on track for 2027 clinical filings?
Last quarter Silence targeted 2027 regulatory filings to begin human trials for its obesity program SLN098 and lipid program SLN365, but this release gave no update on either preclinical drug.
What is the plan for SLN312 and zerlasiran before closing?
Silence previously sought a Phase 3 partner for zerlasiran and regained full rights to SLN312 from AstraZeneca after Phase 1, leaving open whether Merck KGaA will fund both programs.