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Pulmatrix Announces First Quarter 2024 Financial Results and Provides Corporate Update

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Pulmatrix, Inc. reported $16.3 million cash, with a cash runway into Q1 2026. The partnership amendment with Cipla led to the halt of PUR1900 Phase 2b study, reducing cash burn. Cipla will now develop PUR1900 outside the US. Revenue increased to $5.9 million, net income rose to $0.8 million, and R&D expenses decreased. PUR3100 is Phase 2-ready, while PUR1800 showed positive results for AECOPD treatment.

Positive
  • Revenue increased to $5.9 million for Q1 2024, up from $1.5 million in Q1 2023.

  • Net income rose to $0.8 million for Q1 2024, from a net loss of $4.4 million in Q1 2023.

  • R&D expenses decreased to $3.5 million for Q1 2024, down from $3.9 million in Q1 2023.

  • PUR3100 is Phase 2-ready with FDA acceptance and Phase 1 trial results.

  • PUR1800 showed positive results in Phase 1b study for AECOPD treatment.

Negative
  • The halt of the PUR1900 Phase 2b study was a negative event for Pulmatrix.

  • Decreased spend in the PUR3100 program may impact its development progress.

  • Legal and professional services costs decreased, which could affect operational efficiency.

Insights

The reported cash and cash equivalents of $16.3 million reflect a healthy balance sheet for Pulmatrix and the projected runway into Q1 2026 suggests fiscal prudence and strategic financial planning. This implies that the company is likely to avoid immediate dilutive financing, which could have been a concern for current shareholders.

Regarding the partnership amendment with Cipla, the shift of financial responsibility to Cipla for the development of PUR1900 is a strategic move that significantly reduces Pulmatrix's cash burn. This reallocation of resources can refocus the company's efforts on other pipeline projects. However, the 2% royalty agreement on future net sales positions Pulmatrix as a minor beneficiary of PUR1900's potential success, which might be a point of contention for investors looking for greater returns from the product's commercialization.

The increase in revenue is substantial, from $1.5 million to $5.9 million, which is primarily due to the non-cash revenue from contract modifications. While impressive, it is critical to note that this is a non-cash adjustment, which may not be indicative of ongoing revenue streams. The reduction in both research and development and general and administrative expenses shows effective cost management, which is reflected in the transition from a net loss to a net income.

The decision to halt the Phase 2b study of PUR1900 and Cipla's assumption of development costs indicates a strategic pivot. This move could be interpreted as focusing on drug candidates with a potentially faster path to market and addressing areas with high unmet medical needs. Pulmatrix's commitment to advance PUR3100 into Phase 2 trials for acute migraine treatment, leveraging its iSPERSE™ technology, underscores the company's confidence in its pipeline's transformative potential and technological platform.

Furthermore, the clinical progress of PUR3100 could be a catalyst for the stock, given the market demand for innovative migraine treatments. However, the need for financing or partnership arrangements could introduce uncertainty regarding the project's immediate future.

$16.3 million in cash and cash equivalents at the end of Q1 2024 providing projected cash runway into Q1 2026

Third amendment made in Q1 to Cipla partnership results in the wind down of the PUR1900 Phase 2b study and allows for a significant reduction in expected cash burn for Pulmatrix

Cipla to take sole responsibility for development of PUR1900, refocused on markets with greatest unmet need and faster path to approval outside the United States

BEDFORD, Mass., May 10, 2024 /PRNewswire/ -- Pulmatrix, Inc. ("Pulmatrix" or the "Company") (Nasdaq: PULM), a clinical-stage biopharmaceutical company developing innovative inhaled therapies to address serious central nervous system and pulmonary disease using its patented dry powder inhalation iSPERSE™ technology, today announced first quarter financial results for 2024 and provided a corporate update on its development programs.

Ted Raad, Chief Executive Officer of Pulmatrix, commented, "Our focus in the first quarter has been to continue our cost saving measures including the wind down of the Phase 2b study for PUR1900 and on strategic alternatives that leverage the potential of PUR3100, iSPERSE™ technology and our extended cash resources."

First Quarter 2024 and Recent Program and Corporate Highlights

PUR3100

  • In 2023, Pulmatrix announced the FDA's acceptance of an IND application for PUR3100 and receipt of a "study may proceed" letter for a Phase 2 study, positioning PUR3100 as Phase 2-ready. The IND includes a Phase 2 clinical protocol where safety and preliminary efficacy of PUR3100, an orally inhaled dihydroergotamine (DHE) engineered with iSPERSE™, will be investigated in patients with acute migraine.
  • The planned Phase 2 trial builds on the Phase 1 trial results, which were published in 2023 and presented at the American Headache Society 65th Annual Meeting in June 2023. The study showed that PUR3100 achieved peak exposures in the targeted therapeutic range and time to maximum concentration occurred at five minutes after dosing at all dosing levels. The PUR3100 dose groups also showed a lower incidence of nausea and no vomiting compared to observations of nausea and vomiting in the intravenously (IV) administered DHE dose group.
  • Pulmatrix is currently exploring financing or partnership arrangements to develop and initiate a potential Phase 2 clinical study for PUR3100.

PUR1800

  • In 2023, Pulmatrix presented complete results from a Phase 1b study of PUR1800 for acute exacerbations of chronic obstructive pulmonary disease (AECOPD), indicating PUR1800 was safe and well tolerated with no observed safety signals. The topline data, along with the results from chronic toxicology studies, support the continued development of PUR1800 for the treatment of AECOPD and other inflammatory respiratory diseases.
  • Pulmatrix plans to pursue partnership or other alternatives to monetize or advance PUR1800.

PUR1900

  • In agreement with its partner Cipla, Pulmatrix has stopped patient enrollment for the Phase 2b study of PUR1900. PUR1900 is the Company's inhaled iSPERSE™ formulation of the antifungal drug itraconazole for indications where an orally inhaled antifungal may provide a therapeutic benefit or fulfill an unmet medical need. The decision to stop the study was unrelated to any safety concerns. This study had been ongoing since the first quarter of 2023. The Company remains on track to complete all Phase 2b wind down activities by the third quarter of 2024.
  • After the study wind down, Pulmatrix will bear no further financial responsibility for the development of PUR1900 and will receive 2% royalties on any potential future net sales by Cipla outside the United States. Within the United States, Pulmatrix and Cipla will seek to monetize PUR1900.

First Quarter 2024 Financial Results

Revenues increased $4.4 million to $5.9 million for the three months ended March 31, 2024, compared to $1.5 million for the three months ended March 31, 2023. The increase is primarily related to a contract modification of the Cipla Agreement for PUR1900 which resulted in a cumulative catch-up adjustment in non-cash revenue recorded during the three months ended March 31, 2024. The amount of the cumulative catch-up had been included in deferred revenue at the beginning of the period.

Research and development expenses decreased approximately $0.4 million to $3.5 million for the three months ended March 31, 2024, compared to $3.9 million for the three months ended March 31, 2023. The decrease was primarily due to decreased spend of $0.2 million in costs related to the Company's PUR3100 program and $0.2 million in employment costs.

General and administrative expenses decreased $0.6 million to $1.6 million for the three months ended March 31, 2024, compared to $2.2 million for the three months ended March 31, 2023. The decrease was primarily due to decreased spend of $0.4 million in legal and professional services costs and $0.2 million in employment costs.

Net income increased $5.2 million to $0.8 million for the three months ended March 31, 2024, compared to a net loss of $4.4 million for the three months ended March 31, 2023. The increase is primarily related to the contract modification of the Cipla Agreement for PUR1900, mentioned above, which resulted in a cumulative catch-up adjustment in non-cash revenue recorded during the three months ended March 31, 2024.

The Company's total cash and cash equivalents balance as of March 31, 2024, was $16.3 million. The Company anticipates that its cash position, based on operational efficiencies and prioritization of spending, is sufficient to fund its operations into the first quarter of 2026.

PULMATRIX, INC.

Consolidated Balance Sheets

(in thousands, except share and per share data)




March 31,

2024



December 31,

2023




(unaudited)





Assets







Current assets:









Cash and cash equivalents


$

16,300



$

19,173


Accounts receivable



570




928


Prepaid expenses and other current assets



712




742


Total current assets



17,582




20,843


Property and equipment, net



1,108




1,158


Operating lease right-of-use asset



10,094




10,309


Long-term restricted cash



1,472




1,472


Other long-term assets



135




176


Total assets


$

30,391



$

33,958


Liabilities and stockholders' equity









Current liabilities:









Accounts payable


$

721



$

1,915


Accrued expenses and other current liabilities



1,677




947


Operating lease liability



383




429


Deferred revenue



363




618


Total current liabilities



3,144




3,909


Deferred revenue, net of current portion



-




3,727


Operating lease liability, net of current portion



8,229




8,327


Total liabilities



11,373




15,963


Stockholders' equity:









Preferred stock, $0.0001 par value — 500,000 shares authorized; 6,746 shares designated Series A convertible preferred stock; no shares issued and outstanding at March 31, 2024 and December 31, 2023



-




-


Common stock, $0.0001 par value — 200,000,000 shares authorized; 3,652,285 shares issued and outstanding at March 31, 2024 and December 31, 2023



-




-


Additional paid-in capital



305,790




305,592


Accumulated deficit



(286,772)




(287,597)


Total stockholders' equity



19,018




17,995


Total liabilities and stockholders' equity


$

30,391



$

33,958











 

PULMATRIX, INC.

Consolidated Statements of Operations

(in thousands, except share and per share data)

(unaudited)





Three Months Ended

March 31,




2024


2023

Revenues



$

5,885



$

1,499












Operating expenses










Research and development




3,512




3,874


General and administrative




1,626




2,210


Total operating expenses




5,138




6,084


Income (loss) from operations




747




(4,585)


Other income (expense)










Interest income




160




222


Other expense, net




(82)




(85)


Total other income (expense), net




78




137


Net income (loss)



$

825



$

(4,448)


Net income (loss) per share attributable to common stockholders – basic and diluted



$

0.23



$

(1.22)


Weighted average common shares outstanding – basic and diluted




3,652,285




3,650,769


About Pulmatrix, Inc.
Pulmatrix is a clinical-stage biopharmaceutical company focused on the development of novel inhaled therapeutic products intended to prevent and treat central nervous system ("CNS"), respiratory and other diseases with important unmet medical needs using its patented iSPERSE™ technology. The Company's proprietary product pipeline includes treatments for CNS disorders such as acute migraine and serious lung diseases such as Chronic Obstructive Pulmonary Disease ("COPD") and allergic bronchopulmonary aspergillosis ("ABPA"). Pulmatrix's product candidates are based on its proprietary engineered dry powder delivery platform, iSPERSE™, which seeks to improve therapeutic delivery to the lungs by maximizing local concentrations and reducing systemic side effects to improve patient outcomes.

For more on the Company's inhaled product candidates please visit:
https://www.pulmatrix.com/pipeline.html.

Forward-Looking Statements
Certain statements in this press release that are forward-looking and not statements of historical fact are forward-looking statements within the meaning of the federal securities laws. Such forward-looking statements include, but are not limited to, statements of historical fact and may be identified by words such as "anticipates," "assumes," "believes," "can," "could," "estimates," "expects," "forecasts," "guides," "intends," "is confident that", "may," "plans," "seeks," "projects," "targets," and "would," and their opposites and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are based on the beliefs of management as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including, but not limited to, the Company's ability to conduct its business and raise capital in the future when needed; delays in planned clinical trials; the ability to establish that potential products are efficacious or safe in preclinical or clinical trials; the ability to establish or maintain collaborations on the development of therapeutic candidates; the ability to obtain appropriate or necessary governmental approvals to market potential products; the ability to obtain future funding for developmental products and working capital and to obtain such funding on commercially reasonable terms; the Company's ability to manufacture product candidates on a commercial scale or in collaborations with third parties; changes in the size and nature of competitors; the ability to retain key executives and scientists; the ability to secure and enforce legal rights related to the Company's products, including patent protection. A discussion of these and other factors, including risks and uncertainties with respect to the Company, is set forth in the Company's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, as may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Investor Contact:
Timothy McCarthy, CFA
917-679-9282
tim@lifesciadvisors.com

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/pulmatrix-announces-first-quarter-2024-financial-results-and-provides-corporate-update-302142060.html

SOURCE Pulmatrix Inc.

FAQ

What was Pulmatrix's cash balance at the end of Q1 2024?

Pulmatrix had $16.3 million in cash and cash equivalents at the end of Q1 2024.

What led to the reduction in expected cash burn for Pulmatrix in Q1 2024?

The third amendment to the Cipla partnership resulted in the wind down of the PUR1900 Phase 2b study, reducing expected cash burn for Pulmatrix.

What is the status of PUR3100?

PUR3100 is Phase 2-ready with FDA acceptance and positive Phase 1 trial results.

What were the financial results for Pulmatrix in Q1 2024?

Revenues increased to $5.9 million, net income rose to $0.8 million, and R&D expenses decreased for Pulmatrix in Q1 2024.

What are the future plans for PUR1800?

Pulmatrix plans to pursue partnership or other alternatives to monetize or advance PUR1800 for the treatment of AECOPD and other inflammatory respiratory diseases.

Pulmatrix, Inc.

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Biotechnology
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