Kronos Bio Reports Second Quarter 2024 Financial Results and Pipeline Update

Rhea-AI Summary

Kronos Bio (KRON) reported Q2 2024 financial results and pipeline updates. Key highlights include:

1. First patient dosed with istisociclib (KB-0742) in platinum-resistant high-grade serous ovarian cancer; data expected in 1H 2025.

2. KB-9558 IND-enabling studies for multiple myeloma on track for Q4 2024 completion.

3. New potential indication for KB-9558 in HPV-driven tumors announced.

4. New p300 program for autoimmune indications in development.

5. $136.6 million cash position expected to fund operations into 2H 2026.

6. Q2 2024 financial results: R&D expenses $13.8M, G&A expenses $6.4M, net loss $16.2M ($0.27 per share).

Positive

• First patient dosed with istisociclib in platinum-resistant ovarian cancer trial
• KB-9558 IND-enabling studies for multiple myeloma on track
• New potential indication for KB-9558 in HPV-driven tumors
• Cash position of $136.6 million expected to fund operations into 2H 2026
• Appointment of Deborah Knobelman as COO and CFO

Negative

• Net loss of $16.2 million in Q2 2024
• Impairment of long-lived assets expense of $0.5 million in Q2 2024

Insights

Financial Analyst

Kronos Bio's Q2 2024 results reveal a mixed financial picture. The company reported a net loss of $16.2 million, or $0.27 per share, which is concerning for investors. However, their cash position of $136.6 million is a bright spot, expected to fund operations into 2H 2026. This runway provides stability but also raises questions about potential future dilution.

R&D expenses of $13.8 million and G&A expenses of $6.4 million seem reasonable for a clinical-stage biotech. The 5.8% of R&D expenses allocated to non-cash stock-based compensation is within industry norms. However, the 21.9% of G&A expenses for stock-based compensation is relatively high, potentially signaling retention concerns or aggressive incentive structures.

Investors should monitor cash burn rate closely in upcoming quarters to assess the likelihood of additional financing needs before 2026.

Oncology Doctor

Kronos Bio's pipeline update shows promising developments in oncology. The dosing of the first patient with istisociclib for platinum-resistant high-grade serous ovarian cancer is significant, as this is a notoriously difficult-to-treat population. The 80mg four-days-on, three-days-off dosing schedule suggests a potential for improved tolerability while maintaining efficacy.

The expansion of KB-9558 into HPV-driven tumors is intriguing. P300 inhibition in this context could potentially disrupt viral oncogene expression, offering a novel approach to treating these cancers. However, more preclinical data is needed to fully assess this potential.

The focus on transcriptional regulation in cancer is scientifically sound, but it's important to see how these approaches translate to clinical efficacy and safety. The upcoming data readouts in 2025 will be critical for evaluating the true potential of Kronos Bio's pipeline.

Medical Research Analyst

Kronos Bio's strategic focus on deregulated transcription is scientifically compelling. The advancement of istisociclib (KB-0742) as a CDK9 inhibitor and KB-9558 as a p300 KAT inhibitor demonstrates a cohesive approach to targeting cancer vulnerabilities. The expansion into autoimmune indications with a novel p300 KAT inhibitor showcases the potential versatility of their platform.

The identification of p300 as a critical cofactor in the IRF4 transcription regulatory network in multiple myeloma is particularly noteworthy. This mechanistic insight could lead to more targeted and potentially effective therapies. However, it's important to note that translating these molecular insights into clinical success remains challenging.

The company's pipeline diversity, spanning solid tumors, hematological malignancies and now autoimmune conditions, provides multiple shots on goal. This approach could mitigate risk but also stretches resources. Investors should closely monitor the progress of each program to ensure focused development.

— First patient in platinum-resistant high-grade serous ovarian cancer cohort was dosed on optimized dose and schedule with istisociclib (KB-0742); expect data update in 1H 2025 —

— KB-9558 IND-enabling studies for multiple myeloma remain on track to be completed in Q4 2024 —

— Pipeline update includes an additional indication for KB-9558 in HPV-driven tumors and a separate p300 program focused on autoimmune indications —   

— $136.6 million cash and cash equivalents expected to fund operations into 2H 2026 —

SAN MATEO, Calif. and CAMBRIDGE, Mass., Aug. 08, 2024 (GLOBE NEWSWIRE) -- Kronos Bio, Inc. (Nasdaq: KRON), a company dedicated to developing small molecule therapeutics that address cancers and other diseases driven by deregulated transcription, today reported recent business progress and financial results for the second quarter of 2024.

“We continue to make great progress, both in the clinic and in expanding our pipeline targeting deregulated transcription. We are on track to share a clinical update on istisociclib in platinum-resistant high-grade serous ovarian cancer patients in the first half of 2025,” said Nobert Bischofberger, Ph.D., president and chief executive officer of Kronos Bio. “In addition, we expect to dose our first relapsed/refractory multiple myeloma patient with KB-9558 in the first half of 2025 and are excited to announce HPV-driven tumors as another potential program for KB-9558. Our collaboration with Genentech and our internal discovery programs, including a new p300 program focused on autoimmune indications, continue to advance and we look forward to sharing our progress later this year.”

Company and Pipeline Updates

Deborah Knobelman, Ph.D., appointed as chief operating officer and chief financial officer

• Dr. Knobelman joined the Company on June 3, 2024 and oversees the finance, accounting, business development, investor relations and corporate strategy functions.
  

Istisociclib (KB-0742), a CDK9 inhibitor for platinum-resistant high-grade serous ovarian cancer

• Istisociclib cleared the 80mg four-days-on, three-days-off dose and schedule, and the first patient with platinum-resistant high-grade serous ovarian cancer was enrolled in July (link to press release); data expected in first half of 2025.
• At American Society of Clinical Oncology (ASCO) in June 2024, the Company presented updated study data from KB-0742-1001, the ongoing Phase 1/2 trial of istisociclib (KB-0742), an oral CDK9 inhibitor in relapsed or refractory transcriptionally addicted advanced solid tumors (link to poster).

KB-9558, a p300 lysine acetyltransferase (KAT) inhibitor for oncology indications

• p300 was identified as a critical cofactor of the interferon regulatory factor 4 (IRF4) transcription regulatory network in multiple myeloma, which led to the discovery of KB-9558, an inhibitor of the lysine acetyltransferase (KAT) domain of p300.
• Development of KB-9558 remains on track to complete IND-enabling studies in 2024 and the Company expects to enroll the first patient in a dose escalation study in relapsed/refractory multiple myeloma in the first half of 2025.
• Today the Company announced an additional opportunity for the potential use of KB-9558 in HPV-driven tumors. Data supporting p300 KAT inhibition in HPV-driven tumors will be presented later this year.
  

Novel p300 KAT inhibitor for autoimmune indications

• Given the role of IRF4 and p300 in B cells, T cells and other immune cells, the Company has begun exploring the utility of a p300 KAT inhibitor for autoimmune indications. The Company expects to provide an update on the role of p300 in inflammatory indications and announce a development candidate by the end of the year.
  

Second Quarter 2024 Financial Highlights

• Cash, cash equivalents and investments: With its ongoing and currently planned clinical programs and $136.6 million in cash, cash equivalents and investments as of June 30, 2024, the Company anticipates sufficient resources to fund its planned operations into the second half of 2026.
  
  
• R&D expenses: Research and development expenses were $13.8 million for the second quarter of 2024, which includes non-cash stock-based compensation expense of $0.8 million.
  
  
• G&A expenses: General and administrative expenses were $6.4 million for the second quarter of 2024, which includes non-cash stock-based compensation expense of $1.4 million.
  
  
• Impairment of long-lived assets and restructuring: For the second quarter of 2024, the Company incurred impairment of long-lived assets expense of $0.5 million and restructuring expense of less than $0.1 million.
  
  
• Net loss: Net loss for the second quarter of 2024 was $16.2 million, or $0.27 per share, including non-cash stock-based compensation expense of $2.2 million.
  

About Kronos Bio, Inc.

Kronos Bio, Inc (Nasdaq: KRON) is a clinical-stage company dedicated to developing small molecule therapeutics that address deregulated transcription, a hallmark of cancer and other diseases. Our proprietary discovery engine decodes complex transcription factor regulatory networks to identify druggable cofactors. We screen for and optimize small molecules that target these cofactors in a tumor-specific context. These efforts have yielded a preclinical pipeline along with two internally developed drug candidates. Istisociclib (KB-0742) targets CDK9 to address MYC deregulation in solid tumors and KB-9558 targets p300 to address IRF4 dependence in multiple myeloma.

Kronos Bio is based in San Mateo, Calif., and has a research facility in Cambridge, Mass. For more information, visit https://www.kronosbio.com or follow the Company on LinkedIn.

Forward-Looking Statements

Statements in this press release that are not statements of historical fact are forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The press release, in some cases, uses terms such as “anticipate,” “believe,” “could,” “expect,” “plan,” “will,” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Forward-looking statements include statements regarding Kronos Bio’s intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things, the timing of the next expected efficacy update for istisociclib (KB-0742) and other data and development candidate updates; the timing for the first-in-human-study of KB-5998; projected cash runway, potential programs in Kronos Bio’s pipeline; the potential of Kronos Bio’s product candidates, pipeline and its proprietary discovery engine; and other statements that are not historical fact. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, including, without limitation: changes in the macroeconomic environment or competitive landscape that impact Kronos Bio’s business; whether Kronos Bio will be able to progress its clinical trials on the timelines anticipated, including due to risks inherent in the clinical development of novel therapeutics; risks related to Kronos Bio’s limited experience as a company in conducting clinical trials; the risk that results of preclinical studies, early clinical trials (including preliminary results) and pharmacokinetic modeling are not necessarily predictive of future results; risks associated with enrolling clinical trials; and risks associated with the sufficiency of Kronos Bio’s cash resources and need for additional capital. These and other risks are described in greater detail in Kronos Bio’s filings with the Securities and Exchange Commission (SEC), including under the heading “Risk Factors” in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, filed with the SEC on May 9, 2024, and in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, being filed with the SEC later today. Any forward-looking statements that are made in this press release speak only as of the date of this press release and are based on management’s assumptions and estimates as of such date. Except as required by law, Kronos Bio assumes no obligation to update the forward-looking statements whether as a result of new information, future events or otherwise, after the date of this press release.

Kronos Bio, Inc. Condensed Statements of Operations and Comprehensive Loss (in thousands, except per share amounts) (Unaudited)
		Three months ended June 30,								Six months ended June 30,
			2024				2023				2024				2023
Revenue		$	2,688			$	1,864			$	5,208			$	3,084
Operating expenses:
Research and development		$	13,765			$	20,809			$	27,987			$	40,467
General and administrative			6,368				10,307				13,874				20,363
Impairment of long-lived assets and restructuring			578				2,916				13,364				2,916
Total operating expenses			20,711				34,032				55,225				63,746
Loss from operations			(18,023	)			(32,168	)			(50,017	)			(60,662	)
Other income (expense), net:
Interest and other expense, net			1,823				2427				3,860				4,683
Total other income (expense), net			1,823				2,427				3,860				4,683
Net loss		$	(16,200	)		$	(29,741	)			(46,157	)			(55,979	)
Other comprehensive loss:
Net unrealized loss on available-for-sale securities			13				(109	)			(55	)			323
Net comprehensive loss		$	(16,187	)		$	(29,850	)		$	(46,212	)		$	(55,656	)
Net loss per share, basic and diluted		$	(0.27	)		$	(0.52	)		$	(0.77	)		$	(0.98	)
Weighted average shares of common stock, basic and diluted			60,100				57,398				59,810,229				57,273,284

Kronos Bio, Inc. Selected Balance Sheet Data (in thousands) (Unaudited)
		June 30, 2024			December 31, 2023
Cash, cash equivalents and investments		$	136,646		$	174,986
Total assets			164,273			213,279
Total liabilities			41,127			54,201
Total stockholders’ equity			123,146			159,078

FAQ

What were Kronos Bio's (KRON) key financial results for Q2 2024?

Kronos Bio reported R&D expenses of $13.8M, G&A expenses of $6.4M, and a net loss of $16.2M ($0.27 per share) for Q2 2024. The company had $136.6M in cash and investments as of June 30, 2024.

When does Kronos Bio (KRON) expect to share clinical updates on istisociclib for ovarian cancer?

Kronos Bio expects to share a clinical update on istisociclib in platinum-resistant high-grade serous ovarian cancer patients in the first half of 2025.

What new indications has Kronos Bio (KRON) announced for KB-9558?

Kronos Bio announced a potential new indication for KB-9558 in HPV-driven tumors, in addition to its ongoing development for multiple myeloma.

How long does Kronos Bio (KRON) expect its current cash position to fund operations?

Kronos Bio anticipates its current cash position of $136.6 million to be sufficient to fund planned operations into the second half of 2026.