NervGen Pharma (NGEN) Q3 2024 earnings summary

Executive summary

• Approaching completion of target enrollment in the chronic cohort of the Phase 1b/2a NVG-291 clinical trial for spinal cord injury, with updates on enrollment and topline data forthcoming.

• Advanced preclinical test-of-concept studies for NVG-300 in ischemic stroke, ALS, and spinal cord injury, with preliminary results expected in the first half of next year.

• Protocol amendment for the subacute cohort of the NVG-291 trial submitted to the FDA and IRB to facilitate enrollment and reduce participant burden.

• Appointment of Neil Klompas, an experienced life sciences executive, to the Board of Directors.

Financial highlights

• Cash and cash equivalents totaled $21.0 million as of September 30, 2024, up from $11.7 million at year-end 2023.

• Net cash burn from operating activities was approximately $5.8 million in Q3 2024, partially offset by $0.3 million in net proceeds from exercised options and warrants.

• Research and development expenses rose to $4.4 million in Q3 2024 from $0.8 million in Q3 2023, mainly due to the ongoing clinical trial and increased patent and personnel costs.

• General and administrative expenses were $2.8 million in Q3 2024, up from $2.6 million in Q3 2023, driven by higher consulting and legal costs.

• Net loss for Q3 2024 was $5.2 million ($0.07 per share), compared to $4.3 million ($0.07 per share) in Q3 2023, with non-cash gains and expenses impacting results.

Outlook and guidance

• Preliminary results from NVG-300 preclinical studies are anticipated in the first half of next year.

• Topline data for the NVG-291 Phase 1b/2a trial will be announced after enrollment completion.