Zelluna (ZLNA) Q2 2024 earnings summary

Executive summary

• Q2 2024 was marked by negative topline results from the FOCUS (head and neck cancer) and INITIUM (melanoma) trials, with neither meeting primary or secondary endpoints, though safety profiles remained positive.

• NIPU trial in mesothelioma showed clinically meaningful improvement in overall survival, especially in the epithelioid subgroup, supporting further development.

• Cash preservation initiatives, including a 40% workforce reduction, have extended the financial runway to Q4 2025, beyond key trial readouts.

• Ongoing DOVACC (ovarian cancer) and LUNGVAC (lung cancer) trials continue, with DOVACC topline results expected in H1 2025 and LUNGVAC in H1 2026.

• A novel drug conjugation platform is under preclinical development, with a market update expected before the end of 2024.

Financial highlights

• Cash and cash equivalents at end of Q2 2024 were MNOK 170.4 (~$16 million).

• Q2 2024 operating expenses were MNOK 45.3; YTD 2024: MNOK 74.0.

• Q2 2024 net loss was MNOK 44.8; YTD net loss was MNOK 67.5.

• Operating cash flow in Q2 2024 was approximately MNOK -50.5.

• Cash burn rate estimated at MNOK 15 per quarter through end of 2025.

Outlook and guidance

• Cash runway is projected to last until Q4 2025, covering anticipated DOVACC and LUNGVAC trial readouts.

• DOVACC topline results expected in H1 2025; LUNGVAC readout expected H1 2026.

• Update on the novel drug conjugation platform to be provided before end of 2024.

• Operating expenses, including R&D, are expected to decrease in H2 2024 as cost-saving measures take effect.

• Focus remains on maximizing value from UV1 and advancing the conjugation platform.