Kronos Bio (KRON) Q2 2024 earnings summary

Executive summary

• Kronos Bio is a clinical-stage company developing small molecule therapeutics targeting deregulated transcription in cancer and autoimmune diseases, with two main candidates: istisociclib (KB-0742) in Phase 2 for solid tumors and KB-9558 in IND-enabling studies for multiple myeloma.

• First patient dosed in platinum-resistant high-grade serous ovarian cancer cohort with istisociclib; data update expected in 1H 2025.

• KB-9558 IND-enabling studies for multiple myeloma on track for completion in Q4 2024; first patient dosing in 1H 2025.

• Pipeline expanded to include HPV-driven tumors for KB-9558 and a new p300 program for autoimmune indications.

• The company implemented significant restructuring in early 2024, including executive departures and a 21% workforce reduction, to optimize resources and contain costs.

Financial highlights

• Cash, cash equivalents, and investments totaled $136.6 million as of June 30, 2024, expected to fund operations into the second half of 2026.

• Revenue for Q2 2024 was $2.7 million, up from $1.9 million in Q2 2023, driven by increased work under the Genentech collaboration.

• Net loss for Q2 2024 was $16.2 million, or $0.27 per share, a significant improvement from $29.7 million in Q2 2023.

• Operating expenses for Q2 2024 were $20.7 million, down from $34.0 million in Q2 2023, due to reduced personnel and stock-based compensation.

• Research and development expenses were $13.8 million and general and administrative expenses were $6.4 million for Q2 2024.

Outlook and guidance

• Cash runway is projected to fund planned operating expenses and capital requirements into the second half of 2026.

• Clinical update on istisociclib in ovarian cancer expected in 1H 2025; first patient dosing for KB-9558 in multiple myeloma anticipated in 1H 2025.

• Data on KB-9558 in HPV-driven tumors and a development candidate for autoimmune indications expected later in 2024.

• The company anticipates continued net losses as it invests in R&D and clinical development, with no product revenue expected for several years.