Circio (CRNA) Q2 2024 earnings summary

Executive summary

• Advanced circVec circular RNA technology demonstrated >4 months expression durability and up to 15x improvement over mRNA in preclinical models, with ongoing upgrades to generation 2.2 and plans for 3.0 later in 2024.

• Five new research collaborations established in Asia, Europe, and the U.S. to validate and potentially license the technology, with a strategic partnership targeted for 2025.

• TG01 KRAS cancer vaccine program advanced in two active clinical trials, with first patient dosed in a US Phase 2 study and key data readouts expected at ASH in December and from the Georgetown trial in 2025.

• Corporate restructuring and cost reduction led to a 68% decrease in cash burn compared to 1H 2023, with a lean organization of about 10 FTEs prioritizing R&D.

• Circio's unique approach in the circular RNA field is gaining international media attention and industry recognition.

Financial highlights

• Net profit for 1H 2024 was NOK 44.3m, compared to a loss of NOK 76.0m in 1H 2023, mainly due to a NOK 71.3m (EUR 6.2m) loan waiver from Business Finland.

• Operating expenses for H1 2024 were NOK 22.9m, with a monthly cash burn rate close to NOK 4m; over 50% of spending directed to R&D.

• Gross proceeds of NOK 19.6m from a rights issue completed in July 2024, with strong support from existing shareholders and management.

• Cash and cash equivalents at 30 June 2024 were NOK 2.8m, with net cash outflow from operations at NOK 19.1m, a significant improvement from NOK 59.1m in 1H 2023.

• Total liabilities decreased to NOK 50.7m from NOK 124.5m at 31 December 2023.

Outlook and guidance

• Financing secured until June 2025 through Atlas commitment and rights issue, with additional potential from warrant exercises in December 2024.

• Strategic partnership targeted for 2025, with ongoing discussions with investors and companies to further strengthen the financial position.

• Main R&D priorities are strengthening in vivo gene therapy data and developing circVec 3.0.

• Continued focus on cost control, including management pay cuts, to maximize R&D output.

• TG01 program continues in the clinic with limited Circio funding.