Centessa Pharmaceuticals (CNTA) Q1 2026 earnings summary

Executive summary

• Entered into a definitive agreement for acquisition by Eli Lilly for $38.00 per share plus up to $9.00 per share in contingent value rights, expected to close in Q3 2026, subject to customary approvals.

• Focused on advancing orexin-based neuroscience therapeutics, with lead candidates cleminorexton, ORX142, and ORX489 in clinical development.

• Ended Q1 2026 with $533.7 million in cash, cash equivalents, and investments, expected to fund operations into mid-2028.

Financial highlights

• Q1 2026 net loss was $79.2 million, compared to $26.1 million in Q1 2025, driven by increased R&D and G&A expenses.

• Research and development expenses rose to $59.9 million (from $33.4 million), mainly due to higher clinical trial costs for orexin programs and increased personnel expenses.

• General and administrative expenses increased to $19.9 million (from $12.3 million), reflecting higher personnel and advisory costs, including $2.5 million related to the Lilly transaction.

• License revenue of $15.0 million recognized in Q1 2025 from Genmab upfront payment; no recurring product revenue.

• Cash used in operating activities was $72.2 million in Q1 2026, with net cash provided by investing and financing activities of $42.7 million and $30.5 million, respectively.

Outlook and guidance

• Cash runway projected into mid-2028 based on current operating model and development plans.

• Anticipates continued increase in R&D expenses as clinical programs advance.

• Transaction with Lilly, if completed, will result in full acquisition and potential milestone payments to shareholders.