Zelluna (ZLNA) Q3 2024 earnings summary

Executive summary

• Negative results from the FOCUS and INITIUM trials in head and neck cancer and melanoma, respectively, highlight the challenging nature of these indications, though safety was confirmed.

• DOVACC trial in BRCA-negative ovarian cancer is progressing well, with 148 of 184 patients enrolled and topline data expected in H1 2025.

• Recruitment for the LUNGVAC/LUNVACC trial in lung cancer was discontinued due to slow enrollment; 31 patients will be followed per protocol, with results expected in H1 2025.

• Continued development and evaluation of a novel drug conjugation platform, with a market update planned by end of 2024.

• Cash preservation initiatives, including a workforce reduction of ~40%, have extended the cash runway through Q1 2026.

Financial highlights

• Cash and cash equivalents at the end of Q3 2024 were MNOK 131 (USD 12 million).

• EBIT for Q3 2024 was MNOK -29; year-to-date EBIT was MNOK -103.

• Profit before tax for Q3 2024 was MNOK -26; year-to-date was MNOK -93.

• Operating cash flow for Q3 2024 was MNOK -42, mainly impacted by changes in working capital.

• Payroll expenses decreased due to share option cost reversal and workforce reductions.

Outlook and guidance

• DOVACC and LUNGVAC trial topline readouts are expected in H1 2025.

• Update on the novel drug conjugation platform is scheduled for Q4 2024.

• Operating expenses, including R&D, are expected to decrease further as clinical trials conclude and cost-saving initiatives take effect.

• Cash runway is expected to last through Q1 2026 based on current plans.