Longboard Pharmaceuticals (LBPH) Q2 2024 earnings summary

Executive summary

• Achieved positive top-line data from the Phase Ib/IIa Pacific study for bexicaserin, showing a median reduction of countable motor seizures by approximately 60% in highly refractory DEE patients on multiple anti-seizure medications.

• Bexicaserin received FDA Breakthrough Therapy designation for DEE patients aged two and older, with sustained seizure reduction and favorable safety in interim analysis; global Phase III program set to begin in H2 2024.

• LP659, a selective S1P1/5 receptor modulator, completed a Phase I SAD study showing promising safety, tolerability, and rapid, dose-dependent lymphocyte reduction; no serious adverse events reported.

• Ended Q2 2024 with $304.9 million in cash, cash equivalents, and investments, supporting operations into 2027.

• Net losses continue as R&D and G&A expenses rise; no product revenue expected for several years.

Financial highlights

• Net loss was $21.8 million for Q2 2024, up from $15.0 million in Q2 2023; R&D expenses rose 63% year-over-year to $20.4 million, and G&A expenses increased 67% to $5.2 million.

• Interest income increased to $3.9 million in Q2 2024 from $0.7 million in Q2 2023.

• Cash used in operations was $34.3 million for the first half of 2024; net cash from financing activities was $286.4 million, mainly from equity offerings.

• Accumulated deficit reached $177.3 million as of June 30, 2024.

• Cash runway expected to support operations into 2027.

Outlook and guidance

• Expenses expected to trend upward through 2024 as the organization scales for Phase III and continues portfolio development.

• Phase III program for bexicaserin to be initiated in H2 2024, with further study details to be disclosed at an investor day on September 16.

• Anticipated initiation of LP659 Phase I MAD study in Q1 2025; decision on next indication to be made after MAD study results.

• No product revenue anticipated until regulatory approval and commercialization, which is not expected for several years.