Aerovate Therapeutics, Inc. (AVTE): Business Model Canvas [Dec-2025 Updated]

You're looking at Aerovate Therapeutics, Inc. (AVTE) post-April 2025 merger, and the story isn't about old pipelines; it's a sharp pivot into autoimmune diseases, primarily targeting IgA Nephropathy (IgAN) with their lead asset, JADE-001. Honestly, the new structure is built on a solid foundation, boasting approximately $326 million in pro forma cash after that big Private Investment in Public Equity (PIPE) financing, giving them runway through 2027. This canvas breaks down exactly how this newly configured biotech plans to move from high-stakes Research and Development (R&D)-where they spent $22.0 million in Q3 2025-to delivering a potential best-in-class therapy. Dive in to see the key partnerships and the specific customer segments driving this new chapter for Aerovate Therapeutics, Inc.

Aerovate Therapeutics, Inc. (AVTE) - Canvas Business Model: Key Partnerships

You're looking at the partnerships that defined the transition for the entity formerly known as Aerovate Therapeutics, Inc. as it merged and pivoted its focus in 2025. The core structure shifted following the April 28, 2025, merger, making the new entity, Jade Biosciences, Inc. (trading as JBIO), the relevant operational focus for late 2025.

The key relationships center on securing the pipeline, funding the new operations, and establishing the necessary manufacturing and clinical infrastructure.

• Paragon Therapeutics, Inc. for licensed pipeline assets, specifically JADE-001 targeting IgA nephropathy (IgAN).
• Patheon Biologics LLC for biologics manufacturing services under a Master Services Agreement effective February 3, 2025.
• Syndicate of healthcare investors for the concurrent private investment financing.
• Contract Research Organizations (CROs) for clinical trial execution, with the lead program expected to enter the clinic in the second half of 2025.
• Key Opinion Leaders (KOLs) in nephrology and autoimmune disease advising on the development path for JADE-001.

Here's a breakdown of the financial commitments tied to these strategic alliances.

Partner/Agreement Type	Financial/Statistical Data Point	Associated Amount/Date
Paragon Therapeutics, Inc. License	Number of Antibody Ventures Spun Out	4
Syndicate Private Financing (PIPE)	Total Gross Proceeds Secured	$300 million
Syndicate Private Financing	Convertible Notes Converted	$95 million
Pre-Merger AVTE Cash Dividend	Aggregate Cash Dividend Paid	$69.6 million
Pre-Merger AVTE Cash Dividend	Estimated Per Share Dividend (Pre-Split)	$2.40
Pre-Merger AVTE Cash Dividend	Shares Outstanding for Dividend Calculation (as of April 9, 2025)	28,985,019
Patheon Biologics LLC Agreement	Master Services Agreement Effective Date	February 3, 2025
JADE-001 Clinical Timeline	Expected Clinical Trial Initiation	Second half of 2025
JADE-001 Clinical Timeline	Initial Data Readout Expectation	First half of 2026

The merger itself involved a capital return component to the former Aerovate stockholders, which is a key financial aspect of the partnership structure. The transaction closed on April 28, 2025, and the new entity's cash runway is expected to stretch through 2027, funding the advancement of JADE-001.

The syndicate of healthcare investors supporting the $300 million financing included firms like Fairmount, Venrock Healthcare Capital Partners, Deep Track Capital, Braidwell LP, Driehaus Capital Management, Frazier Life Sciences, RA Capital Management, Great Point Partners, Soleus Capital, Avidity Partners, Blackstone Multi-Asset Investing, Logos Capital, Deerfield Management, OrbiMed, and Samsara BioCapital.

The operational wind-down of the legacy Aerovate AV-101 program meant that R&D expense for the combined entity was reported as $0 in Q1 2025 pre-close, allowing the focus to shift entirely to the Jade pipeline execution.

Aerovate Therapeutics, Inc. (AVTE) - Canvas Business Model: Key Activities

You're looking at the operational focus of the entity that resulted from the April 28, 2025, merger with Jade Biosciences, now operating as Jade Biosciences, Inc. (JBIO). The key activities reflect a pivot to the autoimmune portfolio, specifically JADE-001.

Advancing JADE-001 into Phase 1 clinical development

The primary activity is pushing JADE-001, an investigational anti-APRIL monoclonal antibody for Immunoglobulin A nephropathy (IgAN), through its initial human trials. This asset is the core value driver now. You should expect the initiation of the first-in-human clinical trial to occur in the second half of 2025. The market is anticipating initial clinical data readouts in the first half of 2026. This single asset's progression dictates near-term valuation milestones.

Research and development (R&D) for JADE-201 and other pipeline assets

While JADE-001 is front and center, diversification is a clear strategic push. The R&D spending reflects this acceleration into the secondary and tertiary programs. For the nine months ended September 30, 2025, R&D expenses increased 62% to $22 million. Furthermore, external R&D costs specifically for JADE-201 spiked 2,493% to $6.7 million in the quarter ending September 30, 2025. The pipeline also includes JADE-003, which is in preclinical development.

Here's a quick look at the pipeline focus based on the nine months ended September 30, 2025, data:

Pipeline Asset	Development Stage (Late 2025)	Associated Financial Activity (Q3 2025)
JADE-001 (Lead)	Phase 1 Clinical Trial Initiation	$2.5 million milestone payment received
JADE-201	Accelerated Development/Manufacturing	External R&D cost of $6.7 million in the quarter
JADE-003	Preclinical Development	Included in overall R&D spend

Securing and maintaining intellectual property rights for novel biologics

The success of JADE-001 hinges on the licensed intellectual property, as the company does not currently own issued patents for this lead asset. Maintaining the licensing agreements is a critical activity. The company must ensure the in-licensing rights from Paragon Therapeutics remain secure. The focus is on enforcement and maintenance of the licensed IP, which is described as being at an 'early stage.'

• Ensure continued compliance with in-license agreement terms.
• Protect trade secrets related to the half-life extension technology.
• Monitor competitor patent landscapes in the IgAN space.

Corporate finance and investor relations management

This area saw significant activity in 2025 with the merger and subsequent capital raise. The immediate post-merger structure is designed for runway extension. The company secured commitments for an oversubscribed private investment resulting in approximately $300 million in gross proceeds, which includes the conversion of $95 million in previously issued convertible notes. This financing, combined with cash held as of September 30, 2025, gives a pro forma cash base of approximately $326 million. This is intended to fund operations through 2027. Before the merger, the pre-merger Aerovate stockholders received an aggregate cash dividend in the range of $67.6 - $69.6 million.

The operational burn rate is high, which makes managing this cash base paramount. Net cash used in operating activities for the nine months ended September 30, 2025, was $61 million. Total operating expenses for the same period surged 83% year-over-year.

Manufacturing drug product for future clinical trials

Scaling up manufacturing capability is a necessary activity to support the pipeline progression beyond Phase 1. A significant portion of the JADE-201 acceleration is tied to this. Specifically, $5.1 million was allocated toward manufacturing drug product for a future clinical trial for JADE-201 in the quarter ending September 30, 2025. This indicates active engagement with Contract Manufacturing Organizations (CMOs) for pipeline assets.

The company has a Master Services Agreement with Patheon Biologics LLC, which is a key relationship for drug product manufacturing.

Finance: draft 13-week cash view by Friday.

Aerovate Therapeutics, Inc. (AVTE) - Canvas Business Model: Key Resources

You're looking at the core assets that power Jade Biosciences, Inc. following the merger with Aerovate Therapeutics, Inc. This isn't just about the people; it's about the licensed science and the war chest to push it forward. Honestly, for a biotech, these tangible and intangible resources are everything.

The financial foundation is solid, which is the first thing any analyst checks. The combined entity entered the next phase with significant capital, which directly translates to runway for clinical execution. Here's the quick math on the financial and asset base:

Resource Category	Detail	Value/Status as of Late 2025
Financial Foundation	Pro forma Cash and Investments (post-PIPE)	$326 million
Financing Raised (Pre-Merger)	Gross Proceeds from Syndicate	$300 million
Financing Detail	Conversion of Convertible Notes	$95 million
Operational Runway	Expected Funding Through	2027
Lead Asset	JADE-001 (Anti-APRIL mAb for IgAN)	FIH Trial in 2H 2025
Pipeline Asset 2	JADE-002 (Undisclosed Antibody)	Preclinical Development
Pipeline Asset 3	JADE-003 (Undisclosed Antibody)	Preclinical Development

The most critical tangible asset is the licensed anti-APRIL monoclonal antibody, JADE-001. This investigational therapy targets the anti-A PRoliferation-Inducing Ligand (APRIL) pathway for immunoglobulin A (IgA) nephropathy (IgAN). You should note that the first-in-human (FIH) trial initiation was targeted for the second half of 2025, with initial clinical data anticipated in the first half of 2026. That timeline dictates near-term value inflection points.

The intellectual property portfolio stems directly from the licensing agreement with Paragon Therapeutics, which is the engine behind Jade Biosciences. This relationship is key, as Paragon is the source for the core technology, including the half-life extension technology used in JADE-001. Specifically, the company holds an exclusive option to exclusively license JADE-002 and JADE-003 from Paragon, which are currently in preclinical development.

The human capital is specialized, focusing on the autoimmune disease space where JADE-001 is positioned. This team is responsible for advancing the pipeline that was spun out of Paragon Therapeutics. Key personnel and expertise include:

• Specialized scientific and clinical development team focused on autoimmune diseases.
• Leadership with experience from prior successful biotech exits, like Chinook Therapeutics.
• The team is tasked with advancing JADE-001 to initial clinical proof-of-concept.

Finally, the Nasdaq listing continuity under the new ticker JBIO is a vital resource, providing public market access. The transition from AVTE to JBIO was effective on April 29, 2025, following the reverse merger with Jade Biosciences, Inc. This public status, supported by the aforementioned financing, is what allows the company to fund operations through 2027.

Finance: draft 13-week cash view by Friday.

Aerovate Therapeutics, Inc. (AVTE) - Canvas Business Model: Value Propositions

You're looking at the core value drivers for the asset that became the focus of the combined entity, Jade Biosciences, Inc. (JBIO), following the April 2025 merger with Aerovate Therapeutics, Inc. The value proposition centers entirely on JADE101, the anti-APRIL monoclonal antibody now in clinical development.

Potential best-in-class anti-APRIL monoclonal antibody (JADE-001/JADE101)

The proposition here is superior molecular engineering leading to enhanced performance. JADE101 demonstrates:

• Femtomolar binding affinity to the target APRIL protein.
• Preclinical data showing deep and sustained IgA reductions in non-human primates (NHPs).
• Incorporation of half-life extension technology.

The goal is to be best-in-class by maximizing efficacy capture from the anti-APRIL mechanism.

Novel mechanism of action for IgA nephropathy (IgAN)

JADE101 targets the underlying pathogenesis of IgA nephropathy (IgAN) by selectively inhibiting the A PRoliferation-Inducing Ligand (APRIL) protein. This mechanism aims to:

• Reduce pathogenic IgA levels.
• Decrease proteinuria, a key marker of kidney damage.
• Preserve kidney function over the long term.

The first-in-human clinical trial for JADE101 was anticipated to initiate in the second half of 2025, with initial biomarker-rich data expected in the first half of 2026.

Designed for convenient, infrequent dosing to improve patient adherence

Given that IgAN often requires lifelong treatment, dosing convenience is a major value driver. The molecular design of JADE101 supports a patient-friendly schedule:

• Potential for subcutaneous dosing every eight weeks or longer.
• The extended non-human primate half-life was approximately 27 days.

This infrequent dosing schedule is designed to significantly alleviate the treatment burden for patients, many of whom are young adults.

Addressing critical unmet needs in autoimmune diseases

The value proposition addresses the limitations of current standards of care for IgAN, a chronic condition that can lead to end-stage kidney disease requiring dialysis or transplantation.

Disease Context	Patient Impact Point	Targeted Outcome
IgAN often begins in young adulthood	Requires potentially lifelong treatment.	Convenient, infrequent dosing schedule.
Current options have efficacy/ease-of-use limitations	Risk of declining kidney function and eventual dialysis/transplant.	Disease-modifying potential to preserve kidney function.

Strong balance sheet to fund operations through 2027

The financial structure post-merger provides a clear runway to reach critical clinical milestones without immediate need for further capital raises. The anticipated cash runway is set to stretch through 2027. This funding is supported by:

• Gross proceeds of approximately $300 million from a previously announced private placement.
• The combined company is focused on advancing JADE-001 to initial clinical proof-of-concept.

As part of the transaction closing in April 2025, a special cash dividend of approximately $69.6 million was paid to pre-merger Aerovate stockholders.

Aerovate Therapeutics, Inc. (AVTE) - Canvas Business Model: Customer Relationships

You're looking at the relationships for the business that was Aerovate Therapeutics, Inc. as of late 2025, which is now operating as Jade Biosciences, Inc. following the April 2025 merger. The customer relationship strategy pivots entirely to supporting the new lead asset, JADE-001, for IgA Nephropathy (IgAN).

High-touch engagement with nephrology Key Opinion Leaders (KOLs)

The focus is on building scientific credibility within the nephrology community for the new anti-APRIL monoclonal antibody, JADE-001. While specific engagement metrics for the combined entity aren't public, the industry context suggests the value sought is significant; large pharmaceutical organizations conservatively model $25-$35 million in annual value derived from strategic KOL engagement, and smaller firms also see strong returns due to efficiency gains. The goal is precision targeting to align with the evolving standard of care in IgAN.

Direct communication with institutional investors and shareholders

Investor relationship management was highly visible during the transition. Pre-merger stockholders received a special cash dividend of approximately $2.40 per share, totaling an aggregate of $69.6 million, paid out on April 29, 2025, based on 28,985,019 shares outstanding as of April 9, 2025. Post-merger, the relationship focus shifted to communicating the new capital base and pipeline execution. The pro forma cash position following the merger and a subsequent Private Investment in Public Equity (PIPE) stood at approximately $326 million as of September 30, 2025. This capital is intended to fund operations through 2027.

The key financial metrics underpinning investor confidence in the new structure include:

Metric	Value/Date
Special Cash Dividend Per Share	$2.40
Aggregate Cash Dividend Paid	$69.6 million
Shares Outstanding (as of April 9, 2025)	28,985,019
Pro Forma Cash Position (as of Q3 2025)	Approx. $326 million
Q3 2025 R&D Expense	$22.0 million
Net Cash Used in Operating Activities (9M 2025)	$61 million

Collaboration with patient advocacy groups for IgAN

Engagement with the IgAN patient community is crucial for a rare disease asset. The IgA Nephropathy Foundation, which celebrated its 20th anniversary in 2024, remains a central partner, advocating for research funding and communicating the 'voice of the patient.' A key touchpoint in 2025 was the IgAN Alliance Stakeholder Collaboration Workshop, held from September 7-9, 2025, which brought together patients, caregivers, nephrologists, and industry partners to align on strategies to overcome access barriers in IgAN care.

The company's relationship strategy involves:

• Attending major nephrology conferences to support community presence.
• Engaging with organizations like the IgA Nephropathy Foundation.
• Participating in multi-stakeholder solution-focused meetings.
• Supporting initiatives that address health equity and disparities in kidney disease care.

Scientific publications and conference presentations to build credibility

Credibility is built through scientific output, directly tied to the aggressive R&D spend. The commitment to this is evidenced by the 62% surge in Research and Development expenses to $22.0 million in Q3 2025, funding the progression of JADE-001 and JADE-201. The successful advancement of JADE-001 into a first-in-human clinical trial in the second half of 2025 serves as the primary proof point for scientific rigor to the medical community.

Transparent regulatory interactions with the FDA

Interactions are framed by the rare disease status of IgAN, which benefits from FDA incentives. The FDA's commitment to incentivizing rare disease innovation, through mechanisms like orphan drug designations, directly mitigates financial risk for the pipeline. The company's regulatory strategy must align with the FDA's evolving risk assessment frameworks, such as the proposed 2025 risk-based framework for evaluating artificial intelligence models in drug submissions, to ensure a clear pathway for JADE-001.

Finance: draft 13-week cash view by Friday.

Aerovate Therapeutics, Inc. (AVTE) - Canvas Business Model: Channels

You're looking at the channels for Aerovate Therapeutics, Inc. (AVTE) as of late 2025. Honestly, the company you knew as AVTE effectively ceased independent operations on April 28, 2025, when it merged with Jade Biosciences, Inc. and became Jade Biosciences, Inc. (JBIO). Therefore, the current channels reflect the strategic pivot toward autoimmune and renal diseases, funded by the capital structure established at the close of that transaction.

Clinical trial sites (hospitals, research centers) for drug development

This channel is currently driven by the accelerated development of the combined entity's pipeline assets, JADE-001 and JADE201. The investment into this channel is substantial, with total operating expenses surging to $27.4 million in Q3 2025. R&D expenses, which directly fund the site operations and patient recruitment, increased 62% to $22.0 million in that same quarter. The lead candidate, JADE101, confirmed entry into a Phase 1 trial, which involved a corresponding $2.5 million milestone payment during the quarter. For the secondary program, JADE201, external R&D costs spiked 2,493% to $6.7 million, with $5.1 million specifically allocated toward manufacturing drug product for a future clinical trial.

Scientific and medical conferences for data dissemination

Data dissemination channels are currently focused on the new pipeline assets. While the legacy AVTE presented baseline data from the Phase 2b portion of the IMPAHCT Trial at the American Thoracic Society 2024 International Conference, the focus now shifts to presenting data from the JADE-001 Phase 1 trial and any emerging data for JADE201. The company's ability to fund travel, abstract submission fees, and presentation preparation is backed by a strong balance sheet, reporting a pro forma cash base of approximately $326 million as of September 30, 2025.

Investor roadshows and financial news outlets

Communication with the investment community has been highly active, centered around the merger and subsequent financing. Key financial news outlets reported on the expected cash dividend range of $67.6 million to $69.6 million aggregate, which was paid to pre-merger stockholders upon closing. As of November 2025, the combined company's market capitalization stands at approximately $77.67 Million USD. The company's cash burn rate is a key topic, with net cash used in operating activities ballooning to $61 million for the nine months ended September 30, 2025.

The financial underpinning for all current and future channels can be summarized here:

Financial Metric	Amount/Value	Date/Period
Pro Forma Cash Base	$326 million	September 30, 2025
Q3 2025 Total Operating Expenses	$27.4 million	Q3 2025
Q3 2025 R&D Expenses	$22.0 million	Q3 2025
JADE201 External R&D Costs	$6.7 million	Q3 2025
Market Capitalization	$77.67 Million USD	November 2025

Future specialty pharmacy network for commercial distribution

This channel is strictly prospective, as the company remains clinical-stage with its lead asset in Phase 1 development. The establishment of a specialty pharmacy network would be contingent upon successful clinical data readouts and regulatory approval, which is still several years out. The current cash position of $326 million is intended to fund the R&D pipeline through key milestones before commercial planning begins in earnest.

Direct-to-physician sales force (post-approval)

Building a direct-to-physician sales force is a significant future expenditure, dependent on overcoming the competitive landscape in the IgAN space, where JADE101 needs to demonstrate superior dosing or efficacy against four recently approved competitors. The size and structure of this channel are not yet defined, but the capital raised is meant to provide the runway to reach that stage. The company's pre-merger structure involved 11-50 Employees, but the post-merger structure under Jade Biosciences, Inc. will be geared toward R&D acceleration, not immediate commercial build-out.

Key activities supporting the pipeline development that feeds these channels include:

• Stockholder approval of the merger received on April 21, 2025.
• Merger closing and ticker change to JBIO on April 28, 2025.
• Special cash dividend declared of approximately $69.6 million.
• R&D spending on JADE201 manufacturing reached $5.1 million in one quarter.

Aerovate Therapeutics, Inc. (AVTE) - Canvas Business Model: Customer Segments

You're hiring before product-market fit, so understanding who pays and who benefits is everything. For Aerovate Therapeutics, Inc., even post-acquisition by Jade Biosciences, Inc. in April 2025, the historical and residual customer segments are distinct.

Patients with IgA Nephropathy (IgAN) and other autoimmune diseases

While Aerovate Therapeutics, Inc.'s primary focus was AV-101 for Pulmonary Arterial Hypertension (PAH), the target patient population structure for the autoimmune/rare disease space, which includes IgA Nephropathy (IgAN), informs the broader segment profile. The US IgA Nephropathy market size was estimated at $46.82 billion in 2025, projected to reach $99.66 billion by 2035.

Key patient statistics for this segment include:

• US Annual Incidence of Biopsy-Proven IgAN: 2.1-2.2 per 100,000 person-years.
• Estimated US IgAN Prevalence (2021 data): 198,887 to 208,184 persons.
• Primary IgAN disease type share of the market in 2025: 81.0%.
• Percentage of patients progressing to end-stage renal disease within 20 years of diagnosis: Around 30%.

Nephrologists and specialized autoimmune disease clinicians

These clinicians are the prescribers and gatekeepers for therapies targeting kidney diseases like IgAN. The market supporting them is substantial, reflecting the patient base they serve. The US Nephrologists industry market size in 2025 is valued at $9.7bn.

The structure of this segment includes:

• Estimated number of practicing US nephrologists: Between 10,370 and 12,939.
• Number of businesses in the US Nephrologists industry in 2025: 5,187.
• A 2025 KDIGO guideline update encourages stricter proteinuria control, aiming for <0.5 g/d, ideally <0.3 g/d, influencing treatment selection.

Institutional investors focused on biotechnology and rare disease

This segment provided the capital for Aerovate Therapeutics, Inc.'s operations, with focus shifting to the acquiring entity, Jade Biosciences, Inc., post-merger. Pre-merger, the company had a market capitalization of $2.72 billion.

Investor profile details:

Metric	Value/Amount
Institutional Filers (13D/G or 13F)	66 owners
Pre-Merger Stock Price (April 28, 2025)	$93.80 / share
Shares Acquired by Deep Track Capital, LP (April 28, 2025)	79,561 shares
Special Cash Dividend Paid to Pre-Merger Stockholders (April 2025)	Approximately $65.0 million total

Regulatory bodies (FDA, EMA) for drug approval

These bodies represent a critical hurdle and validation point for any therapeutic candidate. The regulatory environment in 2025 showed specific activity:

• FDA approvals in Q2 2025 included 38 new or expanded indications for previously approved agents.
• EMA clock stop extensions for Marketing Authorization Applications (MAAs) averaged 150 days in the first half of 2025.
• The KDIGO 2025 IgAN guideline signals a dual focus on therapies that prevent IgA-IC formation and manage existing nephron loss.

Contract manufacturing and research organizations

These organizations provided outsourced services for clinical development and manufacturing, though Aerovate's development activities were halted prior to the merger close in April 2025. Research and development expenses for the year ended December 31, 2024, were $53.2 million, down from $64.2 million the prior year, reflecting reduced clinical trial and manufacturing costs.

Key relationships and market context:

• A Master Services Agreement was noted between Patheon Biologics LLC and the acquiring entity, Jade Biosciences, Inc.
• CROs provide support for clinical trials in therapeutic areas including Nephrology case reports.
• Top CROs like IQVIA maintained leadership with impressive global operational scale in 2025.

Aerovate Therapeutics, Inc. (AVTE) - Canvas Business Model: Cost Structure

You're looking at the cost structure of the business following the April 28, 2025, reverse merger, which transitioned the entity into Jade Biosciences, Inc. (JBIO). The cost profile shifted dramatically from the wind-down phase of pre-merger AVTE to the accelerated development phase of the combined entity.

The most significant driver of current costs is the aggressive investment in the pipeline, particularly R&D. For the nine months ending September 30, 2025, total operating expenses surged 83% year-over-year to $27.4 million. This acceleration is directly tied to funding the dual-track clinical strategy.

Here's a quick look at the key financial components driving the burn rate as of late 2025:

Cost Category	Reported Amount	Period/Context
Research and Development (R&D) Expense	$22.0 million	Nine months ended September 30, 2025
External R&D for Manufacturing (JADE201)	$5.1 million	Allocated toward drug product manufacturing in the quarter ending Q3 2025
Clinical Milestone Payment (JADE101)	$2.5 million	Paid upon entry into Phase 1 trial during the quarter ending Q3 2025
General and Administrative (G&A) Costs	$3.39 million	Q1 2025 (Pre-merger wind-down)
Net Cash Used in Operating Activities	$61 million	Nine months ended September 30, 2025

Personnel costs are a foundational element of this structure, supporting the specialized management and R&D teams required for clinical progression. As of November 2025, the estimated average annual salary for employees at the combined entity is $110,395.

The cost structure is heavily weighted toward advancing the pipeline, which is reflected in the operational cash usage. The net cash used in operating activities ballooned to $61 million for the first nine months of 2025, a significant increase from $6.8 million in the prior year period.

You should note the specific allocation toward manufacturing and clinical execution, which are variable but critical costs:

• R&D spending increased 62% to fund the progression of two key pipeline assets.
• External R&D costs for the secondary program, JADE201, spiked 2,493% in the quarter ending Q3 2025.
• The $5.1 million manufacturing allocation for JADE201 was specifically for drug product for a future clinical trial.
• The Q1 2025 G&A of $3.39 million was materially lower than recent quarters because operations were winding down ahead of the April 28 merger close.

Regulatory filing fees are an expected, non-recurring cost tied to the JADE-001 program, which is on track to enter the clinic in the second half of 2025, with initial data expected in the first half of 2026.

Finance: draft 13-week cash view by Friday.

Aerovate Therapeutics, Inc. (AVTE) - Canvas Business Model: Revenue Streams

You're looking at the revenue structure for Aerovate Therapeutics, Inc. (AVTE) as it existed in late 2025, which is heavily influenced by the April 28, 2025, merger with Jade Biosciences. The revenue streams are almost entirely capital-based financing events rather than product sales, which is typical for a clinical-stage entity pivoting its pipeline.

Product Sales Revenue

As of late 2025, Aerovate Therapeutics, Inc. had $0 in product sales revenue. This reflects the company's status as a clinical-stage entity and the prior decision to halt development of its lead candidate, AV-101, before the merger, meaning no commercial product was generating income.

Financing Proceeds and Capital Inflows

The primary revenue source in the late 2025 reporting period was non-dilutive or equity financing secured to fund the combined entity's operations. The most recent, significant capital event mentioned in the context of the Q3 2025 results was a Private Investment in Public Equity (PIPE).

• Proceeds from the Private Investment in Public Equity (PIPE) totaled $135 million, which, combined with existing cash, established a pro forma cash base of approximately $326 million as of September 30, 2025.
• This followed a larger, oversubscribed private financing commitment of approximately $300 million secured by Jade Biosciences prior to the merger closing, which is expected to fund operations through 2027.

Here's a quick look at the capital structure supporting the business model:

Revenue/Financing Component	Amount (USD)	Timing/Context
Product Sales Revenue (Late 2025)	$0	Reflects clinical-stage status and pipeline shift.
Post-Q3 2025 PIPE Proceeds	$135 million	Secured to fund operations post-merger.
Pre-Merger Private Financing (Total Commitments)	Approximately $300 million	Secured by Jade Biosciences prior to April 28, 2025, close.
Cash Runway (Pro Forma as of 9/30/2025)	Approximately $326 million	Post-PIPE cash position.

Future Potential Milestone Payments from JADE-001 Development

Revenue is contingent on achieving specific development targets for the lead asset, JADE-001, which targets IgA nephropathy (IgAN). While the prior AVTE asset, JADE-101, triggered a $2.5 million milestone payment during the quarter ending September 30, 2025, future revenue from JADE-001 is entirely potential at this stage. JADE-001 was anticipated to enter a first-in-human clinical trial in the second half of 2025, with initial data expected in the first half of 2026. Milestone payments are tied to these and subsequent clinical readouts.

Future Potential Licensing or Collaboration Revenue

The business model includes the strategic option to generate revenue through partnerships, though no specific amounts are realized as of late 2025. This stream relies on successfully demonstrating clinical proof-of-concept for JADE-001, and potentially for the preclinical assets JADE-002 and JADE-003, which could lead to upfront payments, development cost reimbursements, or future royalties upon commercialization.

Equity Financing from Public Offerings (If Needed)

The immediate need for further equity financing appears mitigated by the $326 million pro forma cash position extending the runway into the first half of 2028. However, the structure retains the ability to access public capital markets. This is a standard option for clinical-stage biotechs to fund later-stage trials or commercial build-out, though the current focus is on executing the existing clinical plan without immediate dilution pressure.

• The merger itself was an all-stock transaction, meaning the immediate capital injection was private.
• Public offerings remain a contingency for accelerated development or unforeseen capital needs.

Finance: draft 13-week cash view by Friday.