Heidelberg Pharma (HPHA) Q3 2024 earnings summary

Executive summary

• HDP-101 clinical trial continues with adjusted protocol; sixth patient cohort dosed at 90 µg/kg, with patients still on treatment.

• New clinical data from the fifth cohort showed one patient in complete remission, confirming HDP-101's potential in multiple myeloma.

• Guidance for 2024 adjusted due to lower R&D costs and higher revenue.

• Sale of a portion of future royalties for TLX250-CDx to HealthCare Royalty, with upfront and milestone payments.

Financial highlights

• Sales revenue for the first nine months of 2024 was EUR 5.2 million, down from EUR 6.6 million year-over-year.

• Other income dropped to EUR 2.4 million from EUR 7.3 million, mainly due to the prior year's one-time sale of the Emergence stake.

• Operating expenses decreased to EUR 22.8 million from EUR 30.0 million, driven by lower R&D costs.

• Net loss improved to EUR 14.3 million from EUR 15.8 million year-over-year; EPS improved to EUR -0.31 from EUR -0.34.

• Cash at period end was EUR 36.6 million, down from EUR 50.7 million a year earlier.

Outlook and guidance

• 2024 sales and other income expected between EUR 10.0–12.0 million, up from previous guidance.

• Operating expenses forecasted at EUR 30.0–33.0 million, down from prior guidance.

• EBIT expected between EUR -19.0 million and EUR -22.0 million, improved from earlier guidance.

• Cash requirements for 2024 now EUR 13.0–16.5 million, with financing secured until mid-2025; potential extension to end of 2026 with milestone payments.