Heidelberg Pharma (HPHA) Q2 2024 earnings summary

Executive summary

• Reported first preliminary efficacy data for HDP-101 in multiple myeloma, with partial remissions observed in Phase I trial cohort 5.

• Orphan drug designation for HDP-101 granted by the FDA, providing incentives and potential market exclusivity.

• Sold a portion of future royalties for TLX250-CDx to Health Care Royalty, receiving $25M upfront and up to $75M more upon FDA approval.

• Professor Andreas Pahl appointed as new CEO effective February 2024.

Financial highlights

• Sales revenue for H1 2024 was €4.1M, slightly down from €4.4M in H1 2023; other income rose to €2.2M from €0.3M.

• Operating expenses decreased by 25% to €15.6M, mainly due to lower R&D costs.

• Net loss for H1 2024 was €8.7M, improved from €16.0M in H1 2023; EPS improved to €-0.19 from €-0.34.

• Cash at period end was €42.6M, down from €57.4M a year earlier.

• Equity at €41.2M, with an equity ratio of 57.2%.

Outlook and guidance

• Financial guidance for 2024 revised: sales and other income expected at €9–12M (previously €11–15M), operating expenses €36–40M.

• Operating result (EBIT) forecasted at €-25.5M to €-29.5M; cash requirements lowered to €18–22M.

• Financing secured until mid-2025; with expected milestone payment, funding could last through 2026.

• Focus remains on advancing HDP-101 and submitting trial application for HDP-102.