Elevation Oncology (ELEV) Q2 2024 earnings summary

Executive summary

• EO-3021, a selective cancer therapy, is in Phase 1 trials for Claudin 18.2-expressing solid tumors, showing 42.8% confirmed ORR and a differentiated safety profile in gastric/GEJ cancers.

• EO-3021 received orphan drug designation for gastric and pancreatic cancers; expansion of Phase 1 to include combination cohorts with ramucirumab and dostarlimab is planned, with dosing to begin by year-end 2024.

• The company paused further investment in seribantumab, its anti-HER3 mAb, and will pursue further development only with a partner.

• On track to nominate a HER3-ADC development candidate in the second half of 2024.

Financial highlights

• Net loss for Q2 2024 was $10.5 million, compared to $10.1 million in Q2 2023; net loss per share was $0.18 versus $0.36 year-over-year.

• Cash, cash equivalents, and marketable securities totaled $110.8 million as of June 30, 2024, up from $83.1 million at year-end 2023, expected to fund operations into 2026.

• R&D expenses for Q2 2024 were $6.6 million, up from $6.0 million in Q2 2023, mainly due to increased EO-3021 clinical trial costs.

• G&A expenses for Q2 2024 were $4.4 million, up from $3.8 million in Q2 2023, driven by higher professional fees and consultant costs.

• Weighted average shares outstanding increased to 59.0 million in Q2 2024 from 28.4 million in Q2 2023, reflecting equity financings.

Outlook and guidance

• Cash position is expected to support operations into 2026, but additional capital will be needed for further development and commercialization.

• Plans to initiate dose expansion in Phase 1 EO-3021 trial and nominate a HER3-ADC development candidate in the second half of 2024.

• Additional monotherapy data from EO-3021 Phase 1, including dose expansion, anticipated in the first half of 2025.