Corvus Pharmaceuticals Inc (CRVS) Q4 2024 Earnings Call Highlights: Strategic Advances Amid ...

GuruFocus.com
26 Mar
  • Research and Development Expenses (Q4 2024): $6 million, up from $4 million in Q4 2023.
  • Research and Development Expenses (Full-Year 2024): $19.4 million, up from $16.5 million in 2023.
  • Net Loss (Q4 2024): $12.1 million, compared to $6.7 million in Q4 2023.
  • Net Loss (Full-Year 2024): $62.3 million, compared to $27.0 million in 2023.
  • Stock Compensation Expense (Q4 2024): $0.8 million, compared to $0.6 million in Q4 2023.
  • Stock Compensation Expense (Full-Year 2024): $3 million, compared to $2.1 million in 2023.
  • Cash, Cash Equivalents, and Marketable Securities (as of Dec 30, 2024): $52 million, up from $27.1 million as of Dec 31, 2023.
  • Cash from Warrant Exercises (Q4 2024): $18.6 million.
  • Potential Additional Cash from Warrant Exercises: Approximately $41 million.
  • Warning! GuruFocus has detected 2 Warning Signs with CRVS.

Release Date: March 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Corvus Pharmaceuticals Inc (NASDAQ:CRVS) reported a 39% objective response rate in their phase one trial of soquelitinib for relapsed T cell lymphoma, with a 26% complete response rate, surpassing standard chemotherapy rates.
  • The company has a strong cash position with $52 million in cash, cash equivalents, and marketable securities as of December 30, 2024, providing a financial runway into the first quarter of 2026.
  • Interim data from the Phase 1 trial of soquelitinib in atopic dermatitis showed significant responses, with 26% achieving IGA 0 or 1 and 37% achieving EASI 75, with no significant safety issues observed.
  • Corvus Pharmaceuticals Inc (NASDAQ:CRVS) is advancing a Phase 3 trial for soquelitinib in relapsed peripheral T cell lymphoma, with promising progression-free survival data from earlier trials.
  • The company is exploring new indications for soquelitinib, including a Phase 2 trial for autoimmune lymphoproliferative syndrome (ALPS) and plans for a solid tumor trial in renal cell cancer.

Negative Points

  • Corvus Pharmaceuticals Inc (NASDAQ:CRVS) reported a net loss of $12.1 million for the fourth quarter of 2024, significantly higher than the $6.7 million loss in the same period of 2023.
  • The company recorded a non-cash loss of $33.4 million from changes in the fair value of its warrant liability during the full year 2024.
  • Research and development expenses increased to $19.4 million for the full year 2024, up from $16.5 million in 2023, primarily due to higher clinical trial costs.
  • The net loss for the full year 2024 was $62.3 million, more than double the $27.0 million loss reported for 2023.
  • There is uncertainty regarding the efficacy and competitive positioning of soquelitinib in the broader market, particularly in autoimmune diseases, as the company is still in early stages of clinical trials.

Q & A Highlights

Q: Will the upcoming data update in May include full data on cohort 3 and additional patients on cohort 2 for atopic dermatitis? What efficacy hurdles are you considering for moving into Phase 2A? A: Yes, the update will include full data for cohorts 1, 2, and 3, along with biomarker data. We are pleased with the efficacy seen in cohorts 1 and 2, showing a 25% to 35% difference between placebo and active treatment. We are considering extending the duration of therapy and are confident in our competitive position as the only selective ITK inhibitor in the field.

Q: Can you clarify your plans for cohort 4 and the rationale for using a 400 mg dose compared to the oncology trial's 200 mg dose? A: Cohort 4 is planned to use a 400 mg dose, but we will decide after reviewing cohort 3 data. The doses provide good receptor occupancy, and we are evaluating whether 100% occupancy is necessary for clinical effect in atopic dermatitis.

Q: Regarding ALPS, what is the addressable patient population, and are there specific subsets of patients ideal for soquelitinib? A: ALPS affects about 2,500 patients in the U.S. It is a genetic disease with no cure, and patients often require lifelong immunosuppressive therapies. Our preclinical studies showed dramatic efficacy in a mouse model, prompting us to explore this in humans. We believe soquelitinib could be beneficial across the ALPS patient population.

Q: For the upcoming Phase 2 atopic dermatitis trial, what subpopulations are you targeting, and what are the key endpoints? A: We plan to target moderate to severe atopic dermatitis patients who have failed topical corticosteroids or systemic therapies. The trial will likely include two dose levels and a placebo, with endpoints such as EASI 75 and IGA 0 or 1.

Q: How are you prioritizing opportunities for soquelitinib in oncology versus inflammatory diseases as you move into later-stage trials? A: We are aggressively pursuing approvals in both lymphoma and immune diseases. We recognize the differences in treatment regimens and pricing between oncology and autoimmune indications. Our strategy includes advancing second- and third-generation compounds and considering collaborations for autoimmune diseases.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.

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