Segment Information
On November 27, 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which enhances segment disclosures and requires additional disclosures of segment expenses. This ASU is effective for annual periods in fiscal years beginning after December 15, 2023, and interim periods thereafter. The Company adopted ASU 2023-07 during the year ended December 31, 2024 on a retrospective basis.
Centessa Pharmaceuticals plc is a clinical-stage pharmaceutical company with a mission to discover, develop and ultimately deliver medicines that are transformational for patients. While the Company received non-recurring revenue related to the out-license of CBS004 and related antibodies in the year ended December 31, 2023, its ability to generate recurring product revenue and to become profitable will depend upon the ability to successfully develop, obtain regulatory approval and commercialize any current and future product candidates.
The Company manages the business as one segment. Its operating results are regularly reviewed by the Company’s Chief Executive Officer, who is the chief operating decision-maker (“CODM”), based on available financial information prepared on a consolidated basis. The CODM evaluates its performance based primarily on research and development efforts and the results of clinical trials. The CODM also utilizes the Company’s long-range plan as a strategic tool to allocate resources according to the Company’s strategic objectives. The consolidated net loss is used to monitor budget versus actual results in assessing segment performance and the allocation of resources. Assets provided to the CODM are consistent with those reported on the Consolidated Balance Sheets with particular emphasis on the Company’s available liquidity, including its cash, cash equivalents and short-term investments.
The following table presents reportable segment loss, including significant expenses regularly provided to the CODM, attributable to the Company’s reportable segment for the years ended December 31, 2024 and 2023 (in thousands):
| | | | | | | | | | | |
| Year Ended
December 31, 2024 | | Year Ended
December 31, 2023 |
Revenue | $ | — | | | $ | 6,853 | |
Less: | | | |
OX2R program expenses | (41,443) | | | (15,530) | |
LB101/LockBody technology platform expenses | (10,886) | | | (33,322) | |
Discontinued R&D program expenses | (90,261) | | | (63,364) | |
Other R&D expenses: | | | |
Personnel expenses¹ | (21,580) | | | (19,735) | |
| Research tax incentives | 30,942 | | | 24,253 | |
| Other preclinical and clinical development expenses | (2,149) | | | (3,486) | |
General and administrative expenses¹ | (32,132) | | | (37,560) | |
Share-based compensation | (33,546) | | | (29,392) | |
Interest income | 14,016 | | | 10,476 | |
Interest expense | (10,090) | | | (9,906) | |
Loss on extinguishment of debt | (34,097) | | | — | |
Other segment items² | (1,687) | | | (5,428) | |
Income tax (expense) benefit | (2,844) | | | 25,056 | |
Consolidated net loss | $ | (235,757) | | | $ | (151,085) | |
| | | |
¹ Excludes share-based compensation | | | |
² Other segment items includes non-operating expenses | | | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.