Curis, Inc. (NASDAQ:CRIS) Q2 2023 Earnings Call Transcript
Curis, Inc. (NASDAQ:CRIS) Q2 2023 Earnings Call Transcript August 3, 2023
Curis, Inc. misses on earnings expectations. Reported EPS is $-0.12 EPS, expectations were $0.12.
Operator: Good afternoon and welcome to the Curis’ Second Quarter 2023 Business Update Call. All participants will be in a listen-only mode. [Operator Instructions] After the company's prepared remarks, call participants will have the opportunity to ask a question. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Diantha Duvall, Curis’ Chief Financial Officer. Ms. Diantha, please go ahead.
Diantha Duvall: Thank you, and welcome to Curis’ second quarter 2023 business update call. Before we begin, I would like to encourage everyone to go to the Investors section of our website at www.curis.com to find our second quarter 2023 business update release and related financial tables. I would also like to remind everyone that during the call, we will be making forward-looking statements, which are based on our current expectations and beliefs. These statements are subject to certain risks and uncertainties and actual results may differ materially. For additional details, please see our SEC filings. Joining me on today's call are Jim Dentzer, President and Chief Executive Officer; and Jonathan Zung, Chief Development Officer. We will also be available for a question-and-answer period at the end of our call. I'd now like to turn the call over to Jim.
Jim Dentzer: Thank you, Diantha. Good afternoon everyone, and welcome to Curis’ second quarter business update call. Big news this quarter is of course the removal of the partial clinical hold on our TakeAim Leukemia study and getting that done a full quarter faster than we expected. It's a testament to the hard work of our team at Curis and the strong support of our clinical investigators. I'd like to take this moment to express my gratitude and appreciation to everyone involved. In our discussions with FDA, we were also able to confirm that 300 milligrams BID is the recommended Phase 2 dose for monotherapy in leukemia. With that confirmation, we're excited to announce that we are expanding monotherapy enrollment in the TakeAim Leukemia study at 300 milligrams BID for relapsed/refractory patients with spliceosome or FLT3 mutation.
In addition, we're working with our clinical investigators on a frontline study combining emavusertib with azacitidine and venetoclax to treat all patients with AML regardless of their mutation status. We expect to have data from both the monotherapy and combination studies in 2024. Now let's transition to our TakeAim Lymphoma study where we're focusing on patients with primary CNS lymphoma. There's a high unmet need in this patient population and we believe combining emavusertib with ibrutinib could potentially address the problem of ibrutinib resistance and provide a meaningful new therapeutic option for these patients. We're currently enrolling patients and expect to have data in 2024. On the financial front, we were able to further strengthen our balance sheet with a $15 million equity financing achieved with no discount and no warrant coverage.
I'm sure everyone on this call knows how rare this is in the current market. All-in-all, it was a terrific quarter for Curis and we're excited to be back in the clinic at the recommended Phase 2 dose of 300 milligrams and closely collaborating with our clinical investigators to develop a novel therapeutic with the potential to be a cornerstone therapy in heme malignancies. With that, I'll turn the call back over to Diantha to review our financial results for the quarter. Diantha?
Photo by national cancer institute on Unsplash
Diantha Duvall: Thank you, Jim. Curis reported a net loss of $12 million or $0.12 per share as compared to a net loss of $15.9 million or $0.17 per share for the same period in 2022. Curis reported a net loss of $23.5 million or $0.24 per share for the six months ended June 30, 2023, as compared to a net loss of $32 million or $0.35 per share for the same period of 2022. Revenues for the second quarter of 2023 were $2.2 million as compared to $2.4 million for the same period in 2022. Revenues for the six months ended June 30, 2023 and 2022 were both $4.5 million. Research and development expenses were $10 million for the second quarter of 2023 as compared to $12.3 million for the same period in 2022. The decrease in research and development expenses for the quarter is primarily attributable to a decrease in personnel costs.
Research and development expenses were $19.2 million for the six months ended June 30, 2023 as compared to $23.8 million for the same period in 2022. General and administrative expenses were $4.2 million for the second quarter of 2023 as compared to $5.1 million – excuse me, as compared to $5.1 million for the same period in 2022. The decrease in general and administrative expenses was driven primarily by a decrease in personnel costs. General and administrative expenses were $9 million for the six months ended June 30, 2023 as compared to $10.8 million for the same period in 2022. For the second quarter of 2023 other income net was $0.2 million as compared to other expense net of $0.9 million for the same period in 2022. The other income net was $0.2 million for the six month end of June 30, 2023 as compared to other expense net of $1.9 million for the same period in 2022.
Other income and expense net primarily consists of interest income partially offset by expense related to future royalty payments. Including the proceeds from the July financing, Curis’ cash, cash equivalents and investments totaled $77.4 million and there were approximately 117.7 million shares of common stock outstanding. We continue to be in a strong cash position and expect that our existing cash, cash equivalents and investments should enable us to maintain our planned operations into 2025. With that, I’d like to turn the call over for questions. Operator?
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