Genelux Corporation Reports Third Quarter 2024 Financial Results and Provides General Business Updates

Rhea-AI Summary

Genelux (NASDAQ: GNLX) reported Q3 2024 financial results and business updates. The company initiated a US-based Phase 2 trial (VIRO-25) for non-small cell lung cancer and continues a Phase 1b/2 trial for small cell lung cancer in China. Cash position stood at $35.1 million as of September 30, 2024, providing runway into Q1 2026. Q3 2024 showed increased expenses with R&D at $4.1 million (up $1.2M YoY) and G&A at $2.9 million (up $0.4M YoY). Net loss was $6.5 million ($0.19 per share) compared to $5.3 million ($0.20 per share) in Q3 2023.

Positive

• Cash runway extends into Q1 2026 with $35.1M in cash and investments
• Expansion of clinical trials with new Phase 2 NSCLC study
• Active enrollment at over 25 sites for Phase 3 OnPrime/GOG-3076 trial

Negative

• Net loss increased to $6.5M from $5.3M YoY
• R&D expenses increased 43% YoY to $4.1M
• G&A expenses rose 16% YoY to $2.9M

Insights

Financial Analyst

The Q3 2024 results reveal concerning trends in Genelux's financial position. While maintaining a $35.1 million cash position provides runway into Q1 2026, the company's increased net loss of $6.5 million ($0.19 per share) versus $5.3 million in Q3 2023 signals accelerating cash burn. R&D expenses jumped 46% to $4.1 million, primarily due to clinical trial costs and stock compensation. The $0.4 million increase in G&A expenses, largely from stock-based compensation, also raises concerns about cost control.

While the pipeline progress with Olvi-Vec trials is promising, particularly in lung cancer indications, investors should monitor the increasing operational costs against the timeline for potential revenue generation. The extended runway provides some comfort, but the widening losses and heavy reliance on equity compensation warrant careful scrutiny.

Medical Research Analyst

The expansion of Olvi-Vec's clinical program demonstrates strategic positioning in high-value oncology indications. The dual-pronged approach in lung cancer - targeting both NSCLC and SCLC - coupled with the ongoing Phase 3 trial in platinum-resistant ovarian cancer, shows promising diversification. The mechanism of platinum re-sensitization could be particularly valuable, as platinum resistance remains a major challenge in oncology.

Key catalysts include interim SCLC data expected by end-2024, followed by NSCLC and PRROC results in 2025. The investigation of combination therapy with checkpoint inhibitors also aligns with current oncology trends. However, success in these indications requires robust efficacy data, particularly given the competitive landscape in lung cancer therapeutics.

WESTLAKE VILLAGE, Calif., Nov. 14, 2024 (GLOBE NEWSWIRE) -- Genelux Corporation (NASDAQ: GNLX), a late clinical-stage immuno-oncology company, today announced financial results for the third quarter of 2024 and provided general business updates.

The Company initiated its second lung cancer trial, a US-based, Phase 2 trial (VIRO-25) treating patients with recurrent advanced or metastatic non-small cell lung cancer (NSCLC) with Olvi-Vec, followed by platinum-doublet chemotherapy + immune checkpoint inhibitor. Additionally, a Phase 1b/2 lung cancer trial is ongoing in recurrent small cell lung cancer (SCLC) in China which is co-sponsored with Newsoara BioPharma Co., Ltd.

Both trials utilize Olvi-Vec delivered intravenously to treat patients who have previously failed platinum-based chemotherapy. The trials are designed based on earlier clinical results, including Olvi-Vec demonstrating (i) positive outcomes in patients with primary or metastatic lung cancer when delivered intravenously and (ii) clinical reversal of platinum resistance and refractoriness in a Phase 2 trial in platinum-resistant/refractory ovarian cancer (PRROC).

"Over the past quarter, we marked another important step forward in our efforts to advance the systemic delivery of Olvi-Vec and to demonstrate the re-sensitization to platinum-based chemotherapy in multiple tumor types," said Thomas Zindrick, President, CEO and Chairman of Genelux. "With interim data from our SCLC trial anticipated by the end of 2024 and data releases from our Phase 3 registration trial in PRROC and Phase 2 trial in NSCLC anticipated in 2025, we are confident that Genelux is positioned to make a meaningful impact in the lives of cancer patients."

Pipeline Highlights

The Company’s clinical program is designed to position Olvi-Vec as an ideal backbone of combination cancer therapy due to its unique mechanism of action to modify the tumor immune microenvironment. Building on the promising results from our previous clinical trials, we see the potential of Olvi-Vec to induce platinum re-sensitization as a strategy to enhance patient response and extend survival in platinum-resistant populations. In addition, the VIRO-25 trial expands the program to include combination therapies with immune checkpoint inhibitors as we aim to unlock synergistic activity that amplify the immune response against tumors. 

• Patient enrollment continues to progress in the Phase 3 OnPrime/GOG-3076 trial for PRROC, now active at over 25 sites (NCT05281471). Topline results are anticipated in the latter half of 2025.

• Phase 2 VIRO-25 is actively enrolling recurrent NSCLC patients (NCT06463665), with interim data expected by mid-2025.

• Interim results from the Phase 1b portion of a Phase 1b/2 SCLC trial projected by end of 2024.
  

Third Quarter 2024 Financial Results

Cash and cash equivalents, and short and long-term investments were $35.1 million as of September 30, 2024. The Company expects its existing cash and cash equivalents, and short and long-term investments will provide runway into the first quarter of 2026.

Research and development (R&D) expenses $4.1 million and $2.8 million for the three months ended September 30, 2024 and 2023, respectively, an increase of $1.2 million. Significant variations between periods are primarily a result of a $0.4 million increase in stock-related compensation in 2024, relating to the increased cost of stock options and restricted stock units in 2024; and a $0.9 million increase in clinical and regulatory expenses relating to increased clinical trial costs associated with our Phase 3 OnPrime Registration trial in 2024.

General and administrative (G&A) expenses were $2.9 million and $2.5 million for the three months ended September 30, 2024 and 2023, respectively, an increase of $0.4 million. Significant variations between periods are primarily a result of a $0.7 million increase in stock compensation expense in 2024, due to the increase in the cost of stock options and restricted stock units in 2024; offset by a $0.3 million decrease in professional service expenses in 2024, primarily resulting from decreased corporate legal costs.

Net loss was $6.5 million for the third quarter of 2024 or a net loss per share of $0.19, as compared to net loss of $5.3 million for the third quarter of 2023, or a net loss per share of $0.20.

About Genelux Corporation

Genelux is a late-stage clinical biopharmaceutical company focused on developing a pipeline of next-generation oncolytic immunotherapies for patients suffering from aggressive and/or difficult-to-treat solid tumor types. The Company's most advanced product candidate, Olvi-Vec (olvimulogene nanivacirepvec), is a proprietary, modified strain of the vaccinia virus. Olvi-Vec currently is being evaluated in OnPrime/GOG-3076, a multi-center, randomized, open-label Phase 3 registrational trial evaluating the efficacy and safety of Olvi-Vec in combination platinum-doublet + bevacizumab compared with physician's choice of chemotherapy and bevacizumab in patients with platinum-resistant/refractory ovarian cancer. The core of Genelux's discovery and development efforts revolves around its’ proprietary CHOICE™ platform from which the Company has developed an extensive library of isolated and engineered oncolytic vaccinia virus immunotherapeutic product candidates, including Olvi-Vec. For more information, please visit www.genelux.com and follow us on Twitter @Genelux_Corp and on LinkedIn.

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “believes,” “anticipates,” “expect,” “may,” “plan” or “will”. Forward-looking statements in this release include, but are not limited to, statements related to Genelux’s future plans and prospects, Genelux’s anticipated cash runway and the sufficiency of its resources to support its planned operations, the planned timing of Genelux’s data results in its ongoing clinical trials and continued development of Olvi-Vec, and the potential capabilities and advantages of Olvi-Vec. Such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements. These and other risks are identified under the caption “Risk Factors” in Genelux’s filings with the Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made and are based on management’s assumptions and estimates as of such date. Genelux does not undertake any obligation to publicly update any forward-looking statements, whether as a result of the receipt of new information, the occurrence of future events or otherwise.

Investor and Media Contacts

Ankit Bhargava, MD
Allele Communications, LLC
genelux@allelecomms.com

Source: Genelux Corporation

Genelux Corporation
Condensed Balance Sheets
(in thousands, except for share amounts and par value data)
	September 30,				December 31,
		2024				2023
ASSETS	(Unaudited)
Current Assets
Cash and cash equivalents	$	6,102			$	9,418
Short-term investments		27,955				13,773
Prepaid expenses and other current assets		1,910				1,012
Total Current Assets		35,967				24,203
Property and equipment, net		1,278				1,170
Right of use assets		1,930				2,428
Long-term investments		1,003				-
Other assets		92				92
Total Other Assets		4,303				3,690
TOTAL ASSETS	$	40,270			$	27,893
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses	$	4,454			$	3,784
Accrued payroll and payroll taxes		686				2,117
Lease liabilities, current portion		415				653
Total Current Liabilities		5,555				6,554
Lease liabilities, long-term portion		1,624				1,866
Total Liabilities		7,179				8,420
Shareholders' Equity
Preferred stock, par value $0.001, 10,000,000 shares authorized;
no shares issued and outstanding, respectively;		-				-
Common stock, par value $0.001, 200,000,000 shares authorized;
34,538,185 and 26,788,986 shares issued and outstanding		35				27
Treasury stock, 433,333 shares, at cost		(433	)			(433	)
Additional paid-in capital		275,782				241,389
Accumulated other comprehensive income		124				14
Accumulated deficit		(242,417	)			(221,524	)
Total Shareholders' Equity		33,091				19,473
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	40,270			$	27,893
The accompanying notes are an integral part of these condensed financial statements.

Genelux Corporation
Condensed Statements of Operations
(in thousands, except for share amounts and per share data)
	Three Months Ended								Nine Months Ended
	September 30,								September 30,
		2024				2023				2024				2023
	(Unaudited)								(Unaudited)
Revenues	$	-			$	-			$	8			$	170
Operating expenses:
Research and development		4,051				2,819				12,478				8,607
General and administrative		2,890				2,488				9,478				8,727
Total operating expenses		6,941				5,307				21,956				17,334
Loss from operations		(6,941	)			(5,307	)			(21,948	)			(17,164	)
Other income (expenses):
Interest income		474				4				1,055				4
Interest expense		-				-				-				(167	)
Debt discount amortization		-				-				-				(649	)
Financing costs		-				(42	)			-				(3,152	)
Debt extinguishment costs						-								(402	)
Total other income (expenses), net		474				(38	)			1,055				(4,366	)
NET LOSS	$	(6,467	)		$	(5,345	)		$	(20,893	)		$	(21,530	)
LOSS PER COMMON SHARE - BASIC AND DILUTED	$	(0.19	)		$	(0.20	)		$	(0.69	)		$	(0.91	)
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING -
BASIC AND DILUTED		34,532,355				26,210,068				30,405,615				23,640,995
The accompanying notes are an integral part of these condensed financial statements.

Genelux Corporation
Condensed Statements of Comprehensive Loss
(in thousands)
	Three Months Ended								Nine Months Ended
	September 30,								September 30,
		2024				2023				2024				2023
	(Unaudited)								(Unaudited)
Net loss	$	(6,467	)		$	(5,345	)		$	(20,893	)		$	(21,530	)
Other comprehensive loss:
Net unrealized gain on short and long-term investments		135				-				110				-
Comprehensive loss	$	(6,332	)		$	(5,345	)		$	(20,783	)		$	(21,530	)
The accompanying notes are an integral part of these condensed financial statements.

FAQ

What was Genelux (GNLX) net loss per share in Q3 2024?

Genelux reported a net loss of $0.19 per share in Q3 2024.

How much cash does Genelux (GNLX) have as of September 30, 2024?

Genelux had $35.1 million in cash, cash equivalents, and short and long-term investments as of September 30, 2024.

When does Genelux (GNLX) expect topline results from its Phase 3 OnPrime trial?

Genelux expects topline results from the Phase 3 OnPrime trial in the latter half of 2025.

What was Genelux's (GNLX) R&D expense in Q3 2024?

Genelux's R&D expenses were $4.1 million in Q3 2024, an increase of $1.2 million from Q3 2023.