Alligator Bioscience AB (FRA:7AL) Q2 2024 Earnings Call Highlights: Strategic Advances Amid ...

GuruFocus News
3 min read

In This Article:

  • Net Sales: SEK7.6 million for Q2 2024, down from SEK17.4 million in the prior year period.

  • Operating Loss: SEK47.4 million, a decrease from SEK63.7 million in the prior year period.

  • Cash Flow from Operations: Minus SEK46.9 million, compared to minus SEK61.1 million last year.

  • Cash Flow from Financing Activities: SEK75.6 million for the quarter.

  • Total Cash Flow: SEK37.4 million for the quarter.

  • Capital Raise: SEK80 million, extending cash runway into Q1 2024.

  • Cash Position: SEK78 million as of June 30, 2024.

  • Right Issue: Brought in SEK107 million.

  • Credit Facility: Additional SEK50 million from Fenja Capital before transaction costs.

Release Date: July 11, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Mitazalimab Phase 2 data in first-line pancreatic cancer showed a significant increase in median overall survival to 14.9 months, compared to 11.1 months for FOLFIRINOX monotherapy.

  • The Phase 2 study results were published in the prestigious Lancet Oncology journal, validating the significance of the data.

  • Alligator Bioscience AB (FRA:7AL) has seen increased interest from physicians wanting to conduct trials with mitazalimab, including a new trial at Moore Cancer Center funded by the US National Cancer Institute.

  • Orion Corporation exercised its option to develop bispecific antibodies from Alligator's second development program, triggering a milestone payment.

  • A successful capital raise of SEK80 million extended the company's cash runway into Q1 2024, supporting strategic investments and licensing negotiations.

Negative Points

  • Net sales for Q2 2024 decreased to SEK7.6 million from SEK17.4 million in the prior year, primarily due to collaboration agreements.

  • Operating loss for the quarter was SEK47.4 million, although reduced from SEK63.7 million in the previous year, indicating ongoing financial challenges.

  • The cash flow from operations was negative at SEK46.9 million, reflecting continued financial strain.

  • The company relies on a loan facility with Fenja Capital, which includes convertible bonds that could lead to shareholder dilution.

  • The average cash burn is estimated to be between SEK40 million to SEK45 million per quarter, indicating a need for careful financial management.

Q & A Highlights

Q: How important are the 18-month OS and 12-month PFS numbers for OPTIMIZE-1, and how do they impact the partnering discussion? A: These data are extremely important as they indicate a mature data set and confirm the strong signal observed in the primary analysis. The 18-month time point is particularly significant as it shows a doubling of the survival rate, which is unprecedented in this context. These data will play a crucial role in our partnering activities. - Sumeet Ambarkhane, Chief Medical Officer

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