Corvus Pharmaceuticals (CRVS) Q2 2024 earnings summary

Executive summary

• Advancing selective ITK inhibition with soquelitinib for immune diseases and cancer, with promising early clinical and preclinical results in atopic dermatitis and T-cell lymphoma; Phase 3 PTCL trial to begin enrollment in Q3 2024.

• Early Phase 1 data for soquelitinib in atopic dermatitis showed clinical activity and cytokine changes consistent with ITK inhibition.

• Additional programs include ciforadenant in renal cell cancer and mupadolimab in non-small cell lung cancer, with ongoing clinical and preclinical studies and collaborations.

• No product revenue has been generated to date; operations are funded primarily through equity offerings, including a $30.3 million registered direct offering in May 2024.

• The company maintains a 49.7% stake in Angel Pharmaceuticals, which develops these assets in China.

Financial highlights

• Cash, cash equivalents, and marketable securities totaled $47.3 million as of June 30, 2024, up from $27.1 million at year-end 2023, reflecting $30.3 million raised in May financing.

• Net loss for Q2 2024 was $4.3 million, improved from $6.5 million in Q2 2023, including a $0.6 million non-cash loss from Angel Pharmaceuticals and a $1.8 million non-cash gain from warrant liability revaluation.

• Research and development expenses for Q2 2024 were $4.1 million, up slightly from $4.0 million in Q2 2023, mainly due to soquelitinib clinical trial costs.

• Operating expenses for Q2 2024 were $5.9 million, up from $5.6 million in Q2 2023.

• Accumulated deficit reached $344.7 million as of June 30, 2024.

Outlook and guidance

• Cash runway expected to fund operations into Q4 2025 based on current plans; additional capital will be needed to complete ongoing and planned clinical trials.

• Key milestones for 2024 include starting the Phase 3 PTCL trial, reporting interim atopic dermatitis data in Q4, and presenting preclinical data at major conferences.

• Projected full-year 2024 net cash used in operations is $24–27 million, with year-end cash expected at $31–34 million.

• Phase 2 trial in solid tumors to initiate in Q4 2024, with initial data expected in the second half of 2025.

• Management anticipates continued significant R&D and G&A expenses and expects operating losses to increase as development progresses.