Gritstone bio (GRTS.Q) Q2 2024 earnings summary

Executive summary

• Reported a net loss of $23.4 million for Q2 2024 and $63.8 million for the six months ended June 30, 2024, compared to net losses of $35.3 million and $69.2 million for the same periods in 2023.

• Revenue for Q2 2024 was $0.9 million, primarily from grant agreements, down from $2.0 million in Q2 2023.

• Research and development expenses decreased to $20.8 million in Q2 2024 from $31.0 million in Q2 2023, reflecting cost reductions and a workforce reduction.

• Preliminary Phase 2 data for GRANITE suggest potential clinical benefit in front-line metastatic MSS-CRC, with mature PFS data expected in Q3 2024.

• Cash, cash equivalents, and marketable securities totaled $55.7 million to $61.7 million as of June 30, 2024, expected to fund operations into Q4 2024.

Financial highlights

• Q2 2024 total revenue was $0.9 million, down from $2.0 million in Q2 2023; six-month revenue was $2.7 million, down from $4.4 million year-over-year.

• Net loss per share was $(0.16) for Q2 2024 and $(0.49) for the six months, compared to $(0.31) and $(0.60) for the same periods in 2023.

• Operating expenses for Q2 2024 were $28.5 million, down from $37.7 million in Q2 2023; six-month operating expenses were $70.1 million, down from $74.9 million.

• General and administrative expenses rose to $7.7 million for Q2 2024, up $1.0 million year-over-year, mainly from increased personnel and stock-based compensation.

• Other income of $4.8 million in Q2 2024 was due to revaluation of common warrants issued in April 2024.

Outlook and guidance

• Existing cash and investments are expected to fund operations into Q4 2024; additional capital is required to continue beyond that period.

• If unable to raise funds or renegotiate loan terms, the company expects to be in default of its minimum liquidity requirement in Q4 2024.

• Management anticipates continued operating losses and negative cash flows for the foreseeable future.

• Mature PFS data for GRANITE in MSS-CRC expected in Q3 2024.

• Updates on the head-to-head Phase 2b study of the next-generation COVID-19 vaccine (CORAL) to be provided as available.