G1 Therapeutics (GTHX) Q2 2024 earnings summary

Executive summary

• Net product sales for COSELA increased 43% year-over-year to $15.8 million for Q2 2024, with double-digit quarter-over-quarter growth in vial volume and net revenue.

• License revenue dropped to $0.7 million from $31.3 million in Q2 2023, reflecting the absence of prior year one-time payments.

• Net loss for Q2 2024 was $5.5 million, compared to net income of $8.7 million in Q2 2023, due to lower license revenue.

• Pending acquisition by Pharmacosmos for $7.15 per share in cash, expected to close in late Q3 2024.

• Announced two license agreements for lerociclib, providing upfront payments, milestones, and royalties.

Financial highlights

• Q2 2024 revenues: $16.5 million (product sales $15.8M, license revenue $0.7M); Q2 2023: $42.4 million (product sales $11.1M, license revenue $31.3M).

• Operating expenses decreased to $20.1 million in Q2 2024 from $30.9 million in Q2 2023, mainly from lower R&D and SG&A costs.

• Net loss per share was $(0.10) (basic and diluted) for Q2 2024, versus $0.17 (basic) and $0.14 (diluted) in Q2 2023.

• Cash, cash equivalents, and marketable securities totaled $60.7 million as of June 30, 2024.

• Accumulated deficit reached $795.7 million as of June 30, 2024.

Outlook and guidance

• Reaffirmed 2024 net COSELA revenue guidance of $60M–$70M.

• Expects 2024 operational expenses to be 25%–30% below 2023 levels.

• Management expects to achieve profitability in the second half of the next fiscal year.

• Cash runway expected to fund operations into Q3 2025 and cover covenants for at least 12 months.

• No new R&D activities planned; focus remains on global commercialization of COSELA.