CNS Pharmaceuticals Reports First Quarter 2024 Financial Results

Rhea-AI Summary

CNS Pharmaceuticals (NASDAQ: CNSP) announced its financial results for Q1 2024, reporting a net loss reduction to $3.5 million from $4.9 million in Q1 2023. This decrease is attributed to lower research and general administrative expenses. The company's R&D expenses dropped to $2.4 million from $3.6 million, primarily due to the timing of its pivotal Berubicin trial costs.

General administrative expenses also decreased to $1.1 million. The company has completed enrollment for its Berubicin trial for glioblastoma multiforme (GBM) and expects topline data in H1 2025. Berubicin has received both Fast Track and Orphan Drug designations from the FDA. As of March 31, 2024, CNS had $0.8 million in cash.

Positive

• Net loss reduction from $4.9 million in Q1 2023 to $3.5 million in Q1 2024.
• R&D expenses decreased from $3.6 million to $2.4 million.
• General administrative expenses dropped from $1.4 million to $1.1 million.
• Completed enrollment for the pivotal Berubicin trial for GBM.
• Berubicin received Fast Track and Orphan Drug designations from the FDA.

Negative

• Cash on hand decreased to $0.8 million as of March 31, 2024.
• The timing of topline data release is uncertain due to patient survival variability.

Insights

Financial Analyst

The financial results for CNS Pharmaceuticals reflect a net loss of approximately $3.5 million for Q1 2024, compared to $4.9 million in the same period last year. This represents a decrease of 28% in net loss, which is relatively positive. The reduction was mainly due to decreases in research and development (R&D) expenses and general and administrative (G&A) expenses. R&D expenses decreased from $3.6 million to $2.4 million, a reduction of about 33%. Similarly, G&A expenses fell from $1.4 million to $1.1 million, a decrease of roughly 21%. These reductions were due to lower costs in several areas, such as legal fees, insurance and stock compensation. However, the company only has 0.8 million in cash as of March 31, 2024, raising concerns about their liquidity and ability to fund ongoing operations without additional financing. In summary, while the reduced expenses are a positive sign for cost management, the low cash reserve is worrying and may indicate the need for imminent fundraising.

Medical Research Analyst

The most significant development from CNS Pharmaceuticals is the completion of enrollment in their potentially pivotal GBM study evaluating Berubicin. With top-line data expected in the first half of 2025, this study aims to address Glioblastoma Multiforme (GBM), which has a dire prognosis with an average survival of only 14-16 months. The study includes a pre-planned, non-binding interim futility analysis conducted by an independent Data Safety Monitoring Board (DSMB). The DSMB's recommendation to continue the study without modification suggests that the initial results are promising, although final efficacy and safety data remain crucial. Furthermore, Berubicin has received both Fast Track and Orphan Drug Designations from the FDA. Fast Track allows for more frequent communication with the FDA to expedite the review process, while Orphan Drug Designation may provide seven years of market exclusivity upon approval of a New Drug Application (NDA). Investors should consider the potential long-term value of these designations, balanced against the inherent risks and uncertainties of clinical trials. Notably, the final outcome of the study will be critical in determining the future of Berubicin and its market potential.

• Enrollment completed in potentially pivotal GBM study evaluating Berubicin; Topline data expected in first half of 2025
• Company committed to addressing the most aggressive type of brain cancer with an average survival of only 14 to 16 months after diagnosis and no cure

HOUSTON, TX / ACCESSWIRE / May 16, 2024 / CNS Pharmaceuticals, Inc. (NASDAQ:CNSP) ("CNS" or the "Company"), a biopharmaceutical company specializing in the development of novel treatments for primary and metastatic cancers in the brain and central nervous system, today reported its financial results for the first quarter 2024 ended March 31, 2024.

"With topline results in our ongoing, fully enrolled Berubicin trial for GBM expected in the first half of next year, we continue to plan for success. Our commitment to our dual mission to bring meaningful treatment options to GBM patients as well as value to all stakeholders remains unwavering," commented John Climaco, Chief Executive Officer of CNS Pharmaceuticals.

Clinical Development Progress

The trial design of the Company's potentially pivotal trial of Berubicin included a pre-planned, non-binding interim futility analysis. The Company reached the criteria required by the study protocol to conduct this interim futility analysis, which an independent DSMB is responsible for conducting. The DSMB's charter mandated that they review the primary endpoint, Overall Survival, as well as secondary endpoints and safety data to determine whether the efficacy data for the risk-benefit profile warrants modification or discontinuation of the study. On December 18, 2023, the Company released the DSMB's recommendation which was to continue the study without modification. Management remains blinded to the data underlying the recommendation of the DSMB.

The Company expects to report topline data from its study of Berubicin in the first half of 2025, although it is impossible to accurately predict how long patients on the study may survive, which could impact the timing of the release of topline data.

The FDA has granted CNS Pharmaceuticals Fast Track Designation for Berubicin which enables more frequent interactions with the agency for guidance on expediting the development and review process. Additionally, the Company has received Orphan Drug Designation from the FDA, which may provide seven years of marketing exclusivity upon approval of an NDA. For more information about the Berubicin clinical trial, visit clinicaltrials.gov and reference identifier NCT04762069.

Summary of Financial Results for the First Quarter 2024

The net loss for the three months ended March 31, 2024 was approximately $3.5 million compared to approximately $4.9 million for the comparable period in 2023. The change in net loss is attributable to a decrease in research organization ("CRO") expenses related to continued progress with the Company's potentially pivotal clinical trial, as well as decreases in legal and professional fees and other expenses.

The Company reported research and development expenses of $2.4 million for the three months ended March 31, 2024 compared to approximately $3.6 million for the comparable period in 2023. The decrease in research and development expenses during the period were mainly attributed to the timing of CRO expenses related to continued progress with the Company's potentially pivotal clinical trial.

General and administrative expense was approximately $1.1 million for the three months ended March 31, 2024 compared to approximately $1.4 million for the comparable period in 2023. The decrease in general and administrative expense was mainly attributable to decreases of approximately $118,000 in legal and professional expenses, $20,000 in insurance expenses and $58,000 in stock compensation, $39,000 in travel expenses and $29,000 in other general and administrative expenses, which were offset by increases of approximately $19,000 in marketing and advertising expenses.

As of March 31, 2024, the Company had cash of approximately $0.8 million.

About CNS Pharmaceuticals, Inc.

CNS Pharmaceuticals is a clinical-stage pharmaceutical company developing a pipeline of anti-cancer drug candidates for the treatment of primary and metastatic cancers of the brain and central nervous system. The Company's lead drug candidate, Berubicin, is a novel anthracycline and the first anthracycline to appear to cross the blood-brain barrier. Berubicin is currently in development for the treatment of a number of serious brain and CNS oncology indications including glioblastoma multiforme (GBM), an aggressive and incurable form of brain cancer.

For more information, please visit www.CNSPharma.com, and connect with the Company on X, Facebook, and LinkedIn.

Forward-Looking Statements

Some of the statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. Forward-looking statements include, without limitation, the timing of release of the top line data for the potentially pivotal trial of Berubicin for GBM. These statements relate to future events, future expectations, plans and prospects. Although CNS believes the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. CNS has attempted to identify forward-looking statements by terminology including ''believes,'' ''estimates,'' ''anticipates,'' ''expects,'' ''plans,'' ''projects,'' ''intends,'' ''potential,'' ''may,'' ''could,'' ''might,'' ''will,'' ''should,'' ''approximately'' or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including market and other conditions and those discussed under Item 1A. "Risk Factors" in CNS's most recently filed Form 10-K filed with the Securities and Exchange Commission ("SEC") and updated from time to time in its Form 10-Q filings and in its other public filings with the SEC. Any forward-looking statements contained in this press release speak only as of its date. CNS undertakes no obligation to update any forward-looking statements contained in this press release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events, except as required by law.

CONTACTS:

Investor Relations Contact
JTC Team, LLC
Jenene Thomas
833-475-8247
CNSP@jtcir.com

SOURCE: CNS Pharmaceuticals, Inc.

View the original press release on accesswire.com

FAQ

What were CNS Pharmaceuticals' Q1 2024 financial results?

CNS Pharmaceuticals reported a net loss of $3.5 million for Q1 2024, a decrease from $4.9 million in Q1 2023.

What is CNS Pharmaceuticals' progress with the Berubicin trial?

CNS Pharmaceuticals has completed enrollment for the Berubicin trial for GBM and expects topline data in the first half of 2025.

What designations has the FDA granted to Berubicin?

The FDA has granted Berubicin Fast Track and Orphan Drug designations, which may expedite development and provide seven years of marketing exclusivity upon approval.

What were CNS Pharmaceuticals' research and development expenses in Q1 2024?

R&D expenses were $2.4 million in Q1 2024, down from $3.6 million in Q1 2023.

How much cash did CNS Pharmaceuticals have as of March 31, 2024?

CNS Pharmaceuticals had approximately $0.8 million in cash as of March 31, 2024.