Elevation Oncology (ELEV) Q3 2024 earnings summary

Executive summary

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

• FDA granted EO-3021 Fast Track and orphan drug designations in September 2024 for advanced/metastatic gastric and GEJ cancer.

• Pipeline prioritization continues, with HER3-ADC program advancing toward development candidate nomination in Q4 2024; seribantumab development paused pending partnership.

• No product revenue to date; operations funded by equity offerings and debt.

• Signed clinical supply agreements with Lilly and GSK for EO-3021 combination studies.

Financial highlights

• Net loss of $12.9 million for Q3 2024, compared to $10.6 million in Q3 2023; net loss per share was $0.22 for Q3 2024.

• Research and development expenses rose to $9.4 million in Q3 2024, up $2.0 million year-over-year, mainly due to in-licensing and increased investment in EO-3021.

• General and administrative expenses were $3.8 million in Q3 2024, up $0.3 million year-over-year, mainly due to higher personnel costs.

• Cash, cash equivalents, and marketable securities totaled $103.1 million as of September 30, 2024, up from $83.1 million at December 31, 2023.

• Working capital was $99.4 million and total assets $106.3 million as of September 30, 2024.

Outlook and guidance

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

• Plans to initiate dosing in EO-3021 combination cohorts by year-end 2024 and present additional Phase 1 data in the first half of 2025.

• HER3-ADC development candidate nomination expected in Q4 2024.

• Preclinical data on EO-3021 combinations to be presented at ESMO-IO 2024 in December.