Janux Therapeutics Reports Third Quarter 2024 Financial Results and Business Highlights

Rhea-AI Summary

Janux Therapeutics reported Q3 2024 financial results and business updates. The company maintains $658.0 million in cash and investments, up from $344.0 million at end-2023. Q3 net loss widened to $28.1 million from $11.6 million year-over-year. R&D expenses increased to $18.6 million, while G&A expenses rose to $17.7 million. Patient enrollment continues for Phase 1 trials of JANX007 in prostate cancer and JANX008 in solid tumors. The company expects to provide JANX007 data updates and expansion cohort dose selection in 2024, with JANX008 updates anticipated in 2025.

Positive

• Strong cash position of $658.0 million, significantly increased from $344.0 million at end-2023
• Two clinical trials actively enrolling patients (JANX007 and JANX008)
• Pipeline expansion with multiple TRACTr and TRACIr programs in development

Negative

• Net loss increased to $28.1 million from $11.6 million year-over-year
• R&D expenses increased 56% to $18.6 million
• G&A expenses nearly tripled to $17.7 million

Insights

Financial Analyst

The Q3 results reveal a robust financial position with $658.0 million in cash and investments, nearly doubling from $344.0 million at 2023 year-end. However, operating expenses have increased significantly, with R&D spending up 56.3% to $18.6 million and G&A expenses surging to $17.7 million. The net loss widened to $28.1 million, more than double the previous year's loss of $11.6 million.

The substantial cash position provides an extended runway for clinical development, but investors should note the accelerating burn rate. The $9.5 million stock-based compensation expense in G&A notably impacted the quarter's financials. The company's market cap of $2.88 billion suggests investors are betting heavily on the success of their TRACTr platform technology.

Medical Research Analyst

The clinical pipeline progress shows steady advancement in two key programs. JANX007, targeting PSMA for prostate cancer and JANX008, targeting EGFR for multiple solid tumors, are both in Phase 1 trials with active enrollment. The anticipated data update for JANX007 and dose selection for expansion cohorts in 2024 will be important validation points for their proprietary TRACTr platform.

The broad applicability of JANX008 across seven different cancer types demonstrates the platform's versatility. The company's development of additional TRACTr and TRACIr candidates suggests a robust preclinical pipeline, though the mention of "assessing priorities" might indicate potential program prioritization or discontinuation decisions ahead.

• Enrollment ongoing for PSMA-TRACTr (JANX007) in prostate cancer and EGFR-TRACTr (JANX008) in solid tumors
• Update on JANX007 data and doses selected for expansion cohorts is anticipated in 2024
• $658.0 million in cash and cash equivalents and short-term investments at end of third quarter 2024

SAN DIEGO--(BUSINESS WIRE)-- Janux Therapeutics, Inc. (Nasdaq: JANX) (Janux), a clinical-stage biopharmaceutical company developing a broad pipeline of novel immunotherapies by applying its proprietary technology to its Tumor Activated T Cell Engager (TRACTr) and Tumor Activated Immunomodulator (TRACIr) platforms, today reported financial results for the third quarter ended September 30, 2024, and provided a business update.

“Our efforts remain focused on enrolling participants in the PSMA-TRACTr (JANX007) and EGFR-TRACTr (JANX008) clinical trials, and we are encouraged by our continued progress,” said David Campbell, Ph.D., President and CEO of Janux Therapeutics. “We look forward to providing an update on our JANX007 program by year end.”

RECENT BUSINESS HIGHLIGHTS AND FUTURE MILESTONES:

• The company continues to enroll patients in the first-in-human Phase 1 clinical trials of JANX007 in mCRPC (NCT05519449) and JANX008 in advanced or metastatic solid tumors (NCT05783622). Janux anticipates providing an update on JANX007 data and doses selected for expansion cohorts in 2024. An update on JANX008 data is expected in 2025.

THIRD QUARTER 2024 FINANCIAL RESULTS:

• Cash and cash equivalents and short-term investments: As of September 30, 2024, Janux reported cash and cash equivalents and short-term investments of $658.0 million compared to $344.0 million at December 31, 2023.
• Research and development expenses: Research and development expenses for the quarter ended September 30, 2024, were $18.6 million compared to $11.9 million for the comparable period in 2023.
• General and administrative expenses: General and administrative expenses for the quarter ended September 30, 2024, were $17.7 million compared to $6.4 million for the comparable period in 2023. With respect to the quarter ended September 30, 2024, $9.5 million of the general and administrative expense incurred was due to stock-based compensation expense associated with equity modifications.
• Net loss: For the quarter ended September 30, 2024, Janux reported a net loss of $28.1 million compared to a net loss of $11.6 million for the comparable period in 2023.

Janux’s TRACTr and TRACIr Pipeline

Janux’s first clinical candidate, JANX007, is a TRACTr that targets PSMA and is being investigated in a Phase 1 clinical trial in adult subjects with metastatic castration-resistant prostate cancer (mCRPC). Janux’s second clinical candidate, JANX008, is a TRACTr that targets EGFR and is being studied in a Phase 1 clinical trial for the treatment of multiple solid cancers including colorectal carcinoma, squamous cell carcinoma of the head and neck, non-small cell lung cancer, renal cell carcinoma, small cell lung cancer, pancreatic ductal adenocarcinoma and triple-negative breast cancer. We are also generating a number of additional TRACTr and TRACIr programs for potential future development, some of which are at development candidate stage or later. We are currently assessing priorities in our preclinical pipeline.

About Janux Therapeutics

Janux is a clinical-stage biopharmaceutical company developing tumor-activated immunotherapies for cancer. Janux’s proprietary technology enabled the development of two distinct bispecific platforms: Tumor Activated T Cell Engagers (TRACTr) and Tumor Activated Immunomodulators (TRACIr). The goal of both platforms is to provide cancer patients with safe and effective therapeutics that direct and guide their immune system to eradicate tumors while minimizing safety concerns. Janux is currently developing a broad pipeline of TRACTr and TRACIr therapeutics directed at several targets to treat solid tumors. Janux has two TRACTr therapeutic candidates in clinical trials, the first targeting PSMA is in development for prostate cancer, and the second targeting EGFR is being developed for colorectal carcinoma, squamous cell carcinoma of the head and neck, non-small cell lung cancer, renal cell carcinoma, small cell lung cancer, pancreatic ductal adenocarcinoma and triple-negative breast cancer. For more information, please visit www.januxrx.com and follow us on LinkedIn.

Forward-Looking Statements

This news release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Such forward-looking statements include statements regarding, among other things, Janux’s ability to bring new treatments to cancer patients in need, expectations regarding the timing, scope and results of Janux’s development activities, including its ongoing and planned preclinical studies and clinical trials, the timing of and plans for regulatory filings, the potential benefits of Janux’s product candidates and platform technologies, expectations regarding the use of Janux’s platform technologies to generate novel product candidates and the strength of Janux’s balance sheet and the adequacy of cash on hand. Factors that may cause actual results to differ materially include the risk that compounds that appear promising in early research do not demonstrate safety and/or efficacy in later preclinical studies or clinical trials, the risk that Janux may not obtain approval to market its product candidates, uncertainties associated with performing clinical trials, regulatory filings and applications, risks associated with reliance on third parties to successfully conduct clinical trials, the risks associated with reliance on outside financing to meet capital requirements, and other risks associated with the process of discovering, developing and commercializing drugs that are safe and effective for use as human therapeutics, and in the endeavor of building a business around such drugs. You are urged to consider statements that include the words “may,” “will,” “would,” “could,” “should,” “believes,” “estimates,” “projects,” “promise,” “potential,” “expects,” “plans,” “anticipates,” “intends,” “continues,” “designed,” “goal,” or the negative of those words or other comparable words to be uncertain and forward-looking. For a further list and description of the risks and uncertainties Janux faces, please refer to Janux’s periodic and other filings with the Securities and Exchange Commission, which are available at www.sec.gov. Such forward-looking statements are current only as of the date they are made, and Janux assumes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Janux Therapeutics, Inc. Condensed Balance Sheets (in thousands)
		September 30, 2024				December 31, 2023
Assets		(unaudited)
Current assets:
Cash and cash equivalents		$	26,754			$	19,205
Short-term investments			631,277				324,823
Prepaid expenses and other current assets			8,290				5,213
Total current assets			666,321				349,241
Restricted cash			816				816
Property and equipment, net			5,373				7,003
Operating lease right-of-use assets			19,686				20,838
Other long-term assets			2,823				2,509
Total assets		$	695,019			$	380,407
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	2,462			$	2,424
Accrued expenses			13,022				7,387
Current portion of deferred revenue			—				1,705
Current portion of operating lease liabilities			1,689				1,517
Total current liabilities			17,173				13,033
Operating lease liabilities, net of current portion			21,742				23,025
Total liabilities			38,915				36,058
Total stockholders’ equity			656,104				344,349
Total liabilities and stockholders’ equity		$	695,019			$	380,407

Janux Therapeutics, Inc. Unaudited Condensed Statements of Operations and Comprehensive Loss (in thousands, except share and per share data)
		Three Months Ended September 30,										Nine Months Ended September 30,
		2024					2023					2024					2023
Collaboration revenue		$	439				$	2,517				$	10,588				$	5,622
Operating expenses:
Research and development			18,614					11,892					47,582					42,681
General and administrative			17,667					6,438					32,831					19,783
Total operating expenses			36,281					18,330					80,413					62,464
Loss from operations			(35,842	)				(15,813	)				(69,825	)				(56,842	)
Total other income			7,783					4,245					21,047					10,307
Net loss		$	(28,059	)			$	(11,568	)			$	(48,778	)			$	(46,535	)
Other comprehensive gain (loss):
Unrealized gain (loss) on available-for-sale securities, net			9,447					(115	)				7,166					360
Comprehensive loss		$	(18,612	)			$	(11,683	)			$	(41,612	)			$	(46,175	)
Net loss per common share, basic and diluted		$	(0.51	)			$	(0.25	)			$	(0.93	)			$	(1.08	)
Weighted-average shares of common stock outstanding, basic and diluted			54,628,670					45,708,649					52,717,020					43,117,403

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241106263536/en/

Investors:

Andy Meyer

Janux Therapeutics

ameyer@januxrx.com

(202) 215-2579

Media:

Jessica Yingling, Ph.D.

Little Dog Communications Inc.

jessica@litldog.com

(858) 344-8091

Source: Janux Therapeutics

FAQ

What was Janux Therapeutics (JANX) Q3 2024 net loss?

Janux Therapeutics reported a net loss of $28.1 million for Q3 2024, compared to $11.6 million in Q3 2023.

How much cash and investments did JANX have at the end of Q3 2024?

Janux reported $658.0 million in cash, cash equivalents, and short-term investments as of September 30, 2024.

When will JANX provide updates on JANX007 and JANX008 clinical trials?

Janux expects to provide updates on JANX007 data and expansion cohort doses in 2024, while JANX008 data updates are anticipated in 2025.

What are the current clinical trials JANX is conducting?

Janux is conducting Phase 1 trials for JANX007 in metastatic castration-resistant prostate cancer and JANX008 in advanced or metastatic solid tumors.