Alligator Bioscience (ATORX) Q2 2024 earnings summary

Executive summary

• Mitazalimab phase II data in first-line pancreatic cancer showed a median overall survival of 14.9 months, a 36% 18-month survival rate, and a 95% improvement over FOLFIRINOX, with an ORR of 42.1% in the OPTIMIZE-1 trial.

• Top-line data published in Lancet Oncology and presented at major conferences, increasing interest from physicians and potential partners.

• Investigator-initiated trials for mitazalimab are underway, including a phase I study at Moores Cancer Center, funded by the US National Cancer Institute.

• Orion Corporation exercised its option to develop bispecific antibodies, triggering a milestone payment; FDA cleared partner Henlius Biotech's Phase 3 IND.

• SEK 80 million capital raise and new CFO appointment extended cash runway into Q1 2025.

Financial highlights

• Q2 2024 net sales were SEK 7.6 million, down from SEK 17.4 million year-over-year; H1 2024 net sales were SEK 14.6 million, mainly from the Orion collaboration.

• Operating loss was SEK 47.4 million in Q2 2024, improved from SEK 63.7 million last year; H1 2024 operating loss was SEK 107.0 million.

• Cash and cash equivalents at June 30 were SEK 77.5 million.

• Rights issue raised SEK 107 million; convertible issue and loan facility with Fenja Capital added up to SEK 80 million.

• Equity at period end was SEK -9.5 million, with an equity ratio of -8%.

Outlook and guidance

• Phase III trial for mitazalimab in first-line pancreatic cancer planned to start in H1 2025, following FDA-requested cohort completion.

• Ongoing partnering discussions with global pharmaceutical companies, with Q3 2024 as a realistic timeframe for a deal.

• Continued focus on expanding pipeline and partnerships beyond 2025, aiming for mitazalimab approval and positive cash flow before 2030.

• Business development efforts to secure commercial partners for mitazalimab and advance other pipeline assets.

• Cash runway extended into Q1 2025 through recent financing activities.