Corbus Pharmaceuticals Reports 3rd Quarter 2024 Financial Results and Provides a Corporate Update

Rhea-AI Summary

Corbus Pharmaceuticals reported Q3 2024 financial results and corporate updates. The company completed enrollment for the dose escalation part of its Phase 1 trial for CRB-701, with first data expected in Q1 2025. New pre-clinical data for CRB-913 was presented at Obesity Week 2024, with Phase 1 trial expected to start in Q1 2025. The company reported a net loss of $13.8 million, or $1.15 per share. Operating expenses increased to $15.5 million. Cash position stands at $159.4 million, expected to fund operations through Q3 2027. The company raised $35.6 million through ATM program and paid off an $11.8 million loan.

Positive

• Strong cash position of $159.4 million, funding operations through Q3 2027
• Successful fundraising of $35.6 million through ATM program
• Complete loan payoff of $11.8 million
• CRB-701 showed 44% ORR in mUC and 43% ORR in cervical cancer patients

Negative

• Net loss increased to $13.8 million from $10.1 million YoY
• Operating expenses increased by $6.0 million to $15.5 million YoY
• Clinical trial costs increased by $3.2 million

Insights

Financial Analyst

The Q3 2024 financial results reveal significant developments for Corbus Pharmaceuticals. The $159.4 million cash position, bolstered by a $35.6 million ATM raise, provides runway through Q3 2027. However, the increased net loss of $13.8 million ($1.15 per share) compared to $10.1 million in Q3 2023 reflects higher operational costs.

Operating expenses jumped 63% to $15.5 million, primarily due to increased clinical trial costs for CRB-701 ($3.2 million), CRB-913 IND-enabling studies ($1.0 million) and higher compensation costs ($1.6 million). The debt clearance through an $11.8 million final loan payment strengthens the balance sheet, though it impacts short-term cash reserves.

Medical Research Analyst

The pipeline progress shows promise across multiple programs. CRB-701's completed dose escalation enrollment and upcoming Q1 2025 data readout is significant, building on earlier ASCO data showing 44% ORR in mUC and 43% ORR in cervical cancer. The safety profile appears manageable with no DLTs at doses up to 4.5 mg/Kg.

CRB-913's obesity program demonstrates compelling preclinical results, achieving up to 38% weight loss in DIO mice and showing 15-fold lower brain penetration than monlunabant. The potential for combination therapy with incretins and maintenance therapy applications expands its market opportunity. The advancement to Phase 1 in Q1 2025 marks a important development milestone.

• Completed Enrollment of Dose Escalation Part of Phase 1 Clinical Trial of its Next-Generation Nectin-4 Targeting ADC (CRB-701) - First data expected to be presented in Q1 2025
• Presented New CRB-913 Pre-Clinical Data at Obesity Week 2024 - Phase 1 Trial Expected to Commence in Q1 2025

NORWOOD, Mass., Nov. 07, 2024 (GLOBE NEWSWIRE) -- Corbus Pharmaceuticals Holdings, Inc. (NASDAQ: CRBP) (“Corbus” or the “Company”), an oncology and obesity company with a diversified portfolio, today provided a corporate update and reported financial results for the quarter ended September 30, 2024.

“We continue to make steady and significant progress across our pipeline,” said Yuval Cohen, Ph.D., Chief Executive Officer of Corbus. “We expect to report the first data from the CRB-701 U.S. bridging study in Q1 2025. This significant dataset will build on the encouraging clinical data presented at ASCO 2024 by CSPC, our development partner. The emerging efficacy and safety data presented at ASCO 2024 was promising and demonstrated the drug is clinically active with a differentiated safety profile.”

“We are also pleased with the continued development of CRB-913, our highly peripherally restricted CB1 inverse agonist for the treatment of obesity. We presented updated pre-clinical data at Obesity Week 2024 and expect to dose the first study participant in Q1 2025,” concluded Dr. Cohen.

Key Corporate Updates

CRB-701:
CRB-701 (SYS6002) is a next-generation ADC targeting Nectin-4 that contains a site-specific, cleavable linker and a precise drug antibody ratio of 2 using MMAE as the payload.

• The Company completed enrollment of the dose escalation part of its bridging Phase 1 clinical trial of CRB-701 (SYS6002) (NCT06265727) that is being conducted in the U.S. and Europe. The three-part Phase 1 trial is evaluating the safety, pharmacokinetics and efficacy of CRB-701 in patients with advanced solid tumors known to be associated with high Nectin-4 expression. The Company expects to report the first data from the dose escalation study in Q1 2025, which will be the first Western data and provide a translational bridge to the encouraging Chinese data presented by our development partners, CSPC, at ASCO 2024. That data, based on 37 patients, demonstrated:
  • 44% ORR and 78% DCR in metastatic urothelial cancer (“mUC”) and 43% ORR and 86% DCR in cervical cancer to date at doses ≥ 1.2mg/Kg.
  • No dose limiting toxicities (“DLTs”) have been observed to date in doses up to and including 4.5 mg/Kg.
  • Three cases of skin rash (including one grade 3) and one case of grade 1 neuropathy seen to date; all were resolved.

CRB-913:
CRB-913 is a second-generation highly peripherally restricted CB1 receptor inverse agonist designed to treat obesity.

• The Company continues to conduct IND-enabling studies on CRB-913 and expects to dose the first patient in a Phase 1 study in Q1 2025.
• The Company presented new pre-clinical data (Poster Presentation) at Obesity Week 2024. Key findings include:
  • Levels of CRB-913 in the brain were 15-fold lower than monlunabant in lean mice.
  • Dose-response demonstrated for a range of 5 to 80 mg/Kg/day achieving up to 38% weight loss in diet-induced obesity (“DIO”) mice.
  • Semaglutide treatment followed by its replacement with CRB-913 demonstrated continued weight loss in DIO mice.
  • Switching from semaglutide to CRB-913 led to a doubling of fat loss in DIO mice.

Prior published pre-clinical data Morningstar et al, Obesity Aug 2023 shows that CRB-913 provided additive weight loss when combined with incretin analogs in DIO mice. The totality of the pre-clinical data suggests potential uses as a monotherapy, combination therapy with incretins and as an induction/maintenance therapy.

CRB-601:
CRB-601 is a potentially best-in-class anti-αvβ8 monoclonal antibody that blocks the activation of TGFβ expressed on cancer cells in the tumor microenvironment. In pre-clinical models, CRB-601 demonstrates enhanced anti-tumor activity when combined with anti-PD-1 checkpoint inhibitor therapy compared to either single agent alone.

• The Company expects to dose the first patient in Q4 2024 for the Phase 1 portion of the CRB-601 clinical study NCT06603844 for the treatment of patients with advanced solid tumors.
  

Financial Results for Quarter Ended September 30, 2024:

The Company reported a net loss of approximately $13.8 million, or $1.15 per diluted share, for the three months ended September 30, 2024, compared to a net loss of approximately $10.1 million, or $2.27 per diluted share for the same period in 2023.

Operating expenses increased by $6.0 million to approximately $15.5 million for the three months ended September 30, 2024, compared to $9.5 million in the comparable period in the prior year. The increase was primarily attributable to an increase of $3.2 million in CRB-701 clinical trial costs with our contract research organization ("CRO") and clinical sites, IND-enabling studies for CRB-913 of $1.0 million and higher compensation costs of $1.6 million mainly due to stock-based compensation expense.

As of September 30, 2024, the Company had $159.4 million in cash, cash equivalents and investments on hand, which is expected to fund operations through Q3 2027, based on the current planned expenditures. During the third quarter of 2024, the Company raised $35.6 million of net proceeds pursuant to the Company’s ATM program by issuing 663,730 shares. In addition, on August 1, 2024, the Company’s made a final $11.8 million loan payment and the loan has been fully paid off.

About Corbus
Corbus Pharmaceuticals Holdings, Inc. is an oncology and obesity company with a diversified portfolio and is committed to helping people defeat serious illness by bringing innovative scientific approaches to well-understood biological pathways. Corbus’ pipeline includes CRB-701, a next-generation antibody drug conjugate that targets the expression of Nectin-4 on cancer cells to release a cytotoxic payload, CRB-601, an anti-integrin monoclonal antibody which blocks the activation of TGFβ expressed on cancer cells, and CRB-913, a highly peripherally restricted CB1 inverse agonist for the treatment of obesity. Corbus is headquartered in Norwood, Massachusetts. For more information on Corbus, visit corbuspharma.com. Connect with us on X, LinkedIn and Facebook.

Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and Private Securities Litigation Reform Act, as amended, including those relating to the Company’s trial results, product development, clinical and regulatory timelines, including timing for completion of trials and presentation of data, market opportunity, competitive position, possible or assumed future results of operations, business strategies, potential growth opportunities and other statement that are predictive in nature. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industry and markets in which we operate and management’s current beliefs and assumptions.

These statements may be identified by the use of forward-looking expressions, including, but not limited to, “expect,” “anticipate,” “intend,” “plan,” “believe,” “estimate,” “potential,” “predict,” “project,” “should,” “would” and similar expressions and the negatives of those terms. These statements relate to future events or our financial performance and involve known and unknown risks, uncertainties, and other factors on our operations, clinical development plans and timelines, which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include those set forth in the Company’s filings with the Securities and Exchange Commission. Prospective investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

All product names, logos, brands and company names are trademarks or registered trademarks of their respective owners. Their use does not imply affiliation or endorsement by these companies.

INVESTOR CONTACT:

Sean Moran
Chief Financial Officer
Corbus Pharmaceuticals
smoran@corbuspharma.com

Bruce Mackle
Managing Director
LifeSci Advisors, LLC
bmackle@lifesciadvisors.com

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Corbus Pharmaceuticals Holdings, Inc. Condensed Consolidated Statements of Operations and Comprehensive Loss (in thousands, except share and per share amounts) (Unaudited)
		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2024				2023				2024				2023
Operating expenses:
Research and development		$	10,808			$	6,551			$	23,435			$	24,188
General and administrative			4,697				2,937				12,681				10,786
Total operating expenses			15,505				9,488				36,116				34,974
Operating loss			(15,505	)			(9,488	)			(36,116	)			(34,974	)
Other income (expense), net:
Other income, net			713				218				4,317				630
Interest income			1,189				217				2,757				711
Interest expense			(381	)			(980	)			(1,872	)			(2,928	)
Change in fair value of derivative liability			—				—				39				—
Foreign currency transaction gain (loss), net			201				(20	)			196				(21	)
Other income (expense), net			1,722				(565	)			5,437				(1,608	)
Net loss		$	(13,783	)		$	(10,053	)		$	(30,679	)		$	(36,582	)
Net loss per share, basic and diluted		$	(1.15	)		$	(2.27	)		$	(2.92	)		$	(8.52	)
Weighted average number of common shares outstanding, basic and diluted			12,014,700				4,423,617				10,490,981				4,295,178
Comprehensive loss:
Net loss		$	(13,783	)		$	(10,053	)		$	(30,679	)		$	(36,582	)
Other comprehensive (loss) income:
Change in unrealized gain on marketable debt securities			595				16				208				119
Total other comprehensive income			595				16				208				119
Total comprehensive loss		$	(13,188	)		$	(10,037	)		$	(30,471	)		$	(36,463	)

Corbus Pharmaceuticals Holdings, Inc. Condensed Consolidated Balance Sheets (in thousands, except share and per share amounts)
		September 30, 2024 (Unaudited)				December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents		$	19,423			$	13,724
Investments			139,939				7,182
Restricted cash			285				192
Prepaid expenses and other current assets			1,243				2,448
Total current assets			160,890				23,546
Restricted cash			385				478
Property and equipment, net			519				973
Operating lease right-of-use assets			2,377				3,063
Other assets			—				212
Total assets		$	164,171			$	28,272
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Notes payable		$	—			$	301
Accounts payable			2,887				3,179
Accrued expenses			7,176				11,030
Derivative liability			—				39
Operating lease liabilities, current			1,562				1,437
Loan payable			—				15,908
Total current liabilities			11,625				31,894
Other long-term liabilities			—				44
Operating lease liabilities, noncurrent			2,048				3,239
Total liabilities			13,673				35,177
Stockholders’ equity
Preferred stock, $0.0001 par value; 10,000,000 shares authorized, no shares issued and outstanding at September 30, 2024 and December 31, 2023.			—				—
Common stock, $0.0001 par value; 300,000,000 shares authorized, 12,179,482 and 4,423,683 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively			1				—
Additional paid-in capital			617,653				429,780
Accumulated deficit			(467,363	)			(436,684	)
Accumulated other comprehensive gain (loss)			207				(1	)
Total stockholders’ equity (deficit)			150,498				(6,905	)
Total liabilities and stockholders’ equity		$	164,171			$	28,272

FAQ

What were Corbus Pharmaceuticals (CRBP) Q3 2024 financial results?

Corbus reported a net loss of $13.8 million ($1.15 per share) and operating expenses of $15.5 million. The company had $159.4 million in cash and investments as of September 30, 2024.

When will Corbus Pharmaceuticals (CRBP) release CRB-701 Phase 1 trial data?

Corbus expects to report the first data from the CRB-701 dose escalation study in Q1 2025.

What were the clinical results for CRBP's CRB-701 in cancer patients?

CRB-701 demonstrated 44% ORR and 78% DCR in metastatic urothelial cancer, and 43% ORR and 86% DCR in cervical cancer at doses ≥ 1.2mg/Kg.

How long will Corbus Pharmaceuticals' (CRBP) current cash position last?

The company's $159.4 million cash position is expected to fund operations through Q3 2027 based on current planned expenditures.