Phio Pharmaceuticals (PHIO) Q2 2024 earnings summary

Executive summary

• Transitioned to a remote-first business model, reducing headcount by 36% and closing the Marlborough headquarters to focus resources on clinical development of PH-762 for skin cancer.

• PH-762 Phase 1b clinical trial is ongoing, with positive safety results, no dose-limiting toxicities, and dose escalation approved; patient enrollment for the second cohort is ongoing and expected to complete in Q2 2025.

• Fifth clinical trial site added, expanding the reach of the PH-762 study.

• Terminated the AgonOx collaboration, ending financial obligations and future milestone/royalty entitlements; remaining wind-down payments total $344,000.

• New patent granted in South Korea for INTASYL RXI-185, targeting aging skin disorders.

Financial highlights

• Cash and cash equivalents were $4.7 million as of June 30, 2024, down from $8.5 million at December 31, 2023.

• Net loss for Q2 2024 was $1.8 million, compared to $2.5 million in Q2 2023; six-month net loss was $4.0 million, down from $6.15 million year-over-year.

• Operating expenses for Q2 2024 decreased 25% year-over-year to $1.91 million, driven by lower R&D and G&A costs.

• Stockholders' equity was $3.8 million as of June 30, 2024.

• Net proceeds of approximately $2.6 million expected from July 2024 warrant exercises after fees and expenses.

Outlook and guidance

• Cash runway, including July 2024 financing, is expected to fund operations into Q2 2025.

• Research and development, as well as general and administrative expenses, are anticipated to remain consistent for the remainder of 2024.

• Ongoing enrollment in PH-762 Phase 1b clinical trial with dose escalation underway.

• Company expects to continue incurring operating losses and will require additional funding to sustain operations beyond current cash resources.

• Continued focus on transitioning from research to product development, with cost rationalization measures in place.