Carisma Therapeutics (CARM) Q2 2024 earnings summary

Executive summary

• Lead candidate CT-0525, targeting HER2+ solid tumors, advanced to Phase 1 with first patient dosed in May 2024 and FDA Fast Track designation in June 2024; initial data expected by year-end 2024.

• Nominated first in vivo CAR-M candidate for GPC3+ tumors under Moderna collaboration, receiving a $2M milestone payment.

• Achieved preclinical proof of concept in liver fibrosis program; candidate nomination expected Q1 2025.

• Implemented revised operating plan in April 2024, prioritizing CT-0525, pausing CT-1119, ceasing CT-0508, reducing workforce by 37%, and terminating Novartis manufacturing agreement.

• Board and Scientific Advisory Board strengthened with new appointments; focus remains on pipeline advancement and operational efficiency.

Financial highlights

• Collaboration revenues were $9.2M for Q2 2024, up from $3.6M in Q2 2023, driven by Moderna milestone and deferred revenue recognition.

• Net loss for Q2 2024 was $11.2M, improved from $19.9M in Q2 2023; net loss per share was $(0.27) for Q2 2024.

• Research and development expenses for Q2 2024 were $15.3M, down from $18.5M in Q2 2023; general and administrative expenses were $5.6M, down from $6.0M.

• Cash and cash equivalents totaled $40.4M as of June 30, 2024, down from $56.5M at March 31, 2024.

• Weighted-average shares outstanding for Q2 2024: 41.5M.

Outlook and guidance

• Cash runway expected to sustain operations into, but not through, Q3 2025; substantial doubt exists about ability to continue as a going concern beyond that period.

• Management is evaluating additional funding strategies, including equity, debt, and licensing arrangements.

• Initial data from CT-0525 Phase 1 trial expected by year-end 2024; fibrosis program aims to nominate a development candidate in Q1 2025.