Ikena Oncology Reports Second Quarter 2024 Financial Results

Rhea-AI Summary

Ikena Oncology (Nasdaq: IKNA) reported Q2 2024 financial results, highlighting a strong cash position of $145.4 million. The company's Phase 1 study of IK-595 in RAS and RAF mutant cancers is progressing, showing promising early PK and PD activity. However, Ikena discontinued the IK-930 clinical program in May 2024. The company also announced a 53% workforce reduction and is evaluating strategic options to maximize shareholder value. Financial highlights include:

- R&D expenses decreased to $9.8 million from $15.2 million in Q2 2023
- G&A expenses remained stable at $5.3 million
- Net loss reduced to $13.7 million from $17.1 million in Q2 2023
- Restructuring costs of $0.7 million were reported for Q2 2024

Positive

• Strong cash position with $145.4 million in cash and investments
• Promising early pharmacokinetics and pharmacodynamics activity observed in IK-595 Phase 1 study
• Reduced net loss to $13.7 million from $17.1 million in Q2 2023
• Decreased R&D expenses to $9.8 million from $15.2 million in Q2 2023

Negative

• Discontinuation of IK-930 clinical program
• 53% workforce reduction implemented
• Evaluating strategic options, indicating potential challenges
• Restructuring costs of $0.7 million incurred in Q2 2024

Insights

Financial Analyst

Ikena Oncology's Q2 2024 results reveal a mixed financial picture. The company's $145.4 million cash position provides a solid runway, but the 53% workforce reduction and strategic review signal significant challenges. R&D expenses decreased by 35.5% year-over-year, likely due to cost-cutting measures and the discontinuation of the IK-930 program. The net loss narrowed by 19.9%, but this improvement is primarily driven by reduced R&D spending rather than revenue growth.

The appointment of Jotin Marango as COO, while retaining his CFO role, suggests a lean management approach. Investors should closely monitor the outcome of the strategic review, as it could lead to significant changes in the company's direction, potentially including a sale or merger.

Oncology Research Analyst

The ongoing Phase 1 study of IK-595 in RAS and RAF mutant cancers shows early promise, with multiple cohorts clearing safety evaluations and demonstrating dose-dependent exposure and target modulation. However, the discontinuation of the IK-930 clinical program is a significant setback for Ikena's pipeline. This narrowing of focus onto IK-595 increases the company's risk profile, as success now heavily depends on a single asset.

The "promising early pharmacokinetics and pharmacodynamics activity" for IK-595 is encouraging, but investors should remain cautious until more definitive efficacy data is available. The RAS/RAF pathway is a highly competitive area in oncology and Ikena will need to demonstrate clear differentiation to succeed in this space.

Strong financial position with $145 million in cash and investments at close of second quarter

BOSTON, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Ikena Oncology, Inc. (Nasdaq: IKNA, “Ikena,” “Company”) today announced financial results for the second quarter ended June 30, 2024, and provided an update regarding its ongoing activities.

Pipeline Updates

• Dose escalation in the Phase 1 study of IK-595 in patients with RAS and RAF mutant cancers continues, with multiple cohorts having cleared their safety evaluation period
  • Promising early pharmacokinetics (PK) and pharmacodynamics (PD) activity has been observed, with dose dependent exposure and target modulation measured in the blood
• In May 2024, the Company announced the discontinuation of the IK-930 clinical program
  

Corporate Updates

• In May 2024, the Company announced it was evaluating a range of potential strategic options to maximize shareholder value, and implemented a 53% workforce reduction
• In July 2024, the Company announced the appointment of Jotin Marango to serve as Chief Operating Officer, in addition to his roles as the Company’s Chief Financial Officer and Head of Corporate Development

Financial Results for the Quarter Ended June 30, 2024

As of June 30, 2024, the Company had cash, cash equivalents, and marketable securities of $145.4 million.

Research and development expenses for the three months ended June 30, 2024 and 2023 were $9.8 million and $15.2 million, respectively.

General and administrative expenses for the three months ended June 30, 2024 and 2023 were $5.3 million and $5.3 million, respectively.

Restructuring and other costs for the three months ended June 30, 2024 were $0.7 million.

The Company reported a net loss for the three months ended June 30, 2024 and 2023 of $13.7 million and $17.1 million, respectively.

About Ikena Oncology
Ikena Oncology^® develops differentiated therapies for patients in need that target nodes of cancer growth, spread, and therapeutic resistance. Ikena aims to utilize its depth of institutional knowledge and breadth of tools to efficiently develop the right drug using the right modality for the right patient. To learn more, visit www.ikenaoncology.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, implied and express statements regarding: the timing and advancement of the targeted oncology program that the Company is pursuing; the Company’s expectations regarding the therapeutic benefit of its targeted oncology programs; and the Company’s ability to identify any potential strategic options and maximize shareholder value. The words “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any forward-looking statements in this press release are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation, those risks and uncertainties related to the timing, progress, results, and cost of the Company’s current research and development programs and clinical trials; the Company’s ability to identify, implement and realize the anticipated benefits from any strategic transaction; the Company’s ability to obtain funding for its operations necessary to complete further development and commercialization of its product candidates; the Company’s ability to obtain and maintain regulatory approval of its product candidates; the implementation of the Company’s business model, and strategic plans for its business and product candidates; and other factors discussed in the “Risk Factors” section of Ikena’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, which is on file with the Securities and Exchange Commission (SEC), as updated by any subsequent SEC filings. You should not place undue reliance on any forward-looking statements, which speak only as of the date they are made. The Company disclaims any obligation to publicly update or revise any such statements to reflect any change in expectations or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements. Any forward-looking statements contained in this press release represent the Company’s views only as of the date hereof and should not be relied upon as representing its views as of any subsequent date. The Company explicitly disclaims any obligation to update any forward-looking statements.

Investor and Media Contact:
Rebecca Cohen
rcohen@ikenaoncology.com

Selected Financial Information
(in thousands, except share and per share data)
(unaudited)
Selected Statement of Operations Items:		Three Months Ended June 30, 2024								Six Months Ended June 30, 2024
			2024				2023				2024				2023
Collaboration revenue		$	—			$	2,004			$	—			$	7,316
Operating expenses:
Research and development			9,832				15,172				19,477				30,723
General and administrative			5,308				5,322				11,307				10,598
Restructuring and other charges			683				—				3,265				—
Total operating expenses			15,823				20,494				34,049				41,321
Loss from operations			(15,823	)			(18,490	)			(34,049	)			(34,005	)
Other income (expense)			2,155				1,375				4,262				2,671
Loss before income taxes			(13,668	)			(17,115	)			(29,787	)			(31,334	)
Income tax expense			(62	)			—				(89	)			—
Net loss		$	(13,730	)		$	(17,115	)		$	(29,876	)		$	(31,334	)
Net loss per share:
Net loss per share- basic and diluted		$	(0.28	)		$	(0.44	)		$	(0.62	)		$	(0.83	)
Weighted-average common shares outstanding, basic and diluted			48,258,111				39,292,710				48,258,111				37,783,486

Selected Balance Sheet Items:		June 30, 2024				December 31, 2023
Cash, cash equivalents, and marketable securities		$	145,419			$	175,465
Total assets		$	157,485			$	192,092
Total liabilities		$	14,626			$	22,335
Total stockholders' equity		$	142,859			$	169,757

FAQ

What was Ikena Oncology's (IKNA) cash position at the end of Q2 2024?

Ikena Oncology reported a cash position of $145.4 million in cash, cash equivalents, and marketable securities as of June 30, 2024.

How did Ikena Oncology's (IKNA) R&D expenses change in Q2 2024 compared to Q2 2023?

Ikena Oncology's R&D expenses decreased from $15.2 million in Q2 2023 to $9.8 million in Q2 2024.

What major corporate changes did Ikena Oncology (IKNA) announce in Q2 2024?

In May 2024, Ikena Oncology announced a 53% workforce reduction and that it was evaluating strategic options to maximize shareholder value. The company also discontinued the IK-930 clinical program.

What is the status of Ikena Oncology's (IKNA) IK-595 clinical trial?

The Phase 1 study of IK-595 in patients with RAS and RAF mutant cancers is ongoing, with multiple cohorts having cleared their safety evaluation period and showing promising early pharmacokinetics and pharmacodynamics activity.