NervGen Pharma (NGEN) Q2 2024 earnings summary

Executive summary

• Targeting completion of enrollment in the Phase 1b/2a chronic cohort by end of Q3 2024, with protocol amendments to enhance enrollment and reduce participant burden in the subacute cohort.

• NVG-300, a new internally discovered drug candidate, advanced to preclinical proof-of-concept studies for ischemic stroke, ALS, and spinal cord injury.

• Communication initiatives, including travel and accommodation coverage, increased candidate inquiries for the clinical trial.

• Annual General Meeting held, with new board appointments and increased pharmaceutical expertise.

Financial highlights

• Cash and cash equivalents stood at $26.6 million as of June 30, 2024, up from $11.7 million at December 31, 2023.

• Net cash burn from operating activities was approximately $4.2 million in Q2 2024, partially offset by $0.1 million in net proceeds from financing.

• Research and development expenses were $3.8 million for Q2 2024, up from $1.5 million year-over-year, mainly due to ongoing clinical trials and patent costs.

• General and administrative expenses decreased to $2.2 million from $3.3 million year-over-year, primarily due to lower non-cash stock-based compensation and reduced consulting costs.

• Net loss for Q2 2024 was $7.8 million ($0.11 per share), including $3.2 million in non-cash expenses and a $2.2 million non-cash warrant derivative loss, compared to a $4.8 million loss ($0.08 per share) in Q2 2023.

Outlook and guidance

• Enrollment in the chronic cohort of the Phase 1b/2a trial expected to complete by end of Q3 2024, with subacute cohort protocol amendments submitted to regulatory authorities.

• NVG-300 preclinical studies underway, with potential for future development under the Biologics License Application framework, offering 12 years of market exclusivity post-approval.