Cinclus Pharma (CINPHA) Q2 2024 earnings summary

Executive summary

• Completed successful IPO on Nasdaq Stockholm in June 2024, raising SEK 715–750 million before costs and converting a shareholder loan into equity, with a market cap of SEK 1.5 billion at end of August 2024.

• Focused on developing linaprazan glurate, a next-generation P-CAB for severe eGERD, with unique 24-hour acid control, rapid onset, and Phase III studies planned for 2025.

• Strong Phase I and II results, positive preclinical studies, and additional patent approvals in Hong Kong and Mexico.

• Specialist GI commercialization approach planned, retaining all commercial rights and maximizing post-data optionality.

• Parallel development for H. pylori eradication and potential for partnerships and out-licensing.

Financial highlights

• Net sales were zero for the quarter and first half of 2024, down from milestone payments in the prior year.

• Operating profit (EBIT) improved to SEK -73.6 million for H1 2024 from SEK -99.2 million in H1 2023, mainly due to lower R&D expenses.

• Net loss narrowed to SEK -77.2 million for H1 2024 from SEK -109.0 million in H1 2023.

• Cash and cash equivalents at June 30, 2024 were SEK 684.7 million, boosted by IPO proceeds.

• Equity increased by SEK 715–750 million compared to December 2023, mainly from the share issue and loan conversion.

Outlook and guidance

• Phase III studies for eGERD to commence in 2025, with first patient expected in 2025 and healing readout anticipated in 2026.

• NDA/MAA submissions and first regulatory approvals targeted for 2027–2028, with potential approval in 2029.

• R&D costs to ramp up as Phase III activities increase; additional financing may be sought to accelerate further studies or expand indications.

• China approval expected by end of 2024, with milestone payment upon approval and significant sales expected from 2026 after reimbursement.