Cantargia (CANTA) Q2 2024 earnings summary

Executive summary

• Two major clinical programs, nadunolimab (oncology) and CAN-10 (inflammatory diseases), advanced with strong safety, biomarker, and efficacy data, including anti-fibrotic and neuropathy prevention effects.

• Patent position strengthened by withdrawal of European patent appeals and resolution of oppositions, securing IP coverage for IL1RAP and cancer treatment.

• Multiple clinical studies progressed, with ongoing and upcoming data readouts expected to increase visibility in competitive therapeutic areas.

• Strategic focus for CAN-10 Phase 2 shifted to hidradenitis suppurativa, deprioritizing myocarditis due to external challenges.

• New leukemia study with nadunolimab to start in Q4 2024, funded by a US Department of Defense grant.

Financial highlights

• Operating expenses for Q2 2024 decreased 30% year-over-year to SEK 44 million, mainly due to reduced R&D spend and fewer active trials.

• First half-year operating expenses down 39% to SEK 85 million, with net loss at SEK 80 million and positive net financial items of SEK 5 million.

• Cash and short-term investments at period end were SEK 104.7 million, expected to last through Q1 2025 or H1 2025 with prioritization.

• R&D expenses accounted for 91–92% of operating expenses in Q2 and H1 2024.

• No revenue-generating activities; net sales were SEK 0.0 million for Q2 and H1 2024.

Outlook and guidance

• Multiple clinical milestones and data updates anticipated in 2024 and 2025, including Phase IIb trial initiation in pancreatic cancer and randomized Phase II data in triple-negative breast cancer.

• CAN-10 Phase II planned for H2 2025, focusing on hidradenitis suppurativa and systemic sclerosis as lead indications.

• Phase 1/2 trial in AML/MDS to start in Q4 2024, with further CAN-10 Phase 1 data and US IND submission planned for 2025.

• Additional data readouts and conference presentations, including ESMO, planned for 2024 and 2025.

• Ongoing need to secure additional financing for continued operations and development.