On March 9, 2023 Elevation Oncology, Inc. (Nasdaq: ELEV), an innovative oncology company focused on the discovery and development of selective cancer therapies to treat patients across a range of solid tumors with significant unmet medical needs, reported financial results for the quarter ended December 31, 2022, and highlighted recent progress (Press release, Elevation Oncology, MAR 9, 2023, View Source;utm_medium=rss&utm_campaign=elevation-oncology-reports-fourth-quarter-and-full-year-2022-financial-results [SID1234628414]).
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"Following the recently announced pipeline prioritization and realignment of resources, our clinical development strategy is focused on advancing EO-3021, a potential best-in-class antibody-drug conjugate targeting solid tumors expressing Claudin 18.2, and other pipeline programs to benefit patients with significant unmet medical needs," said Joseph Ferra, Interim Chief Executive Officer of Elevation Oncology. "We have cash runway into the fourth quarter of 2024 and expect to achieve multiple milestones during 2023, including the reporting of preclinical proof-of-concept data for EO-3021 during the first half of the year and the initiation of a U.S. Phase 1 clinical trial evaluating EO-3021 during the second half of the year."
Recent Progress and Highlights
Corporate
Announced pipeline prioritization and realignment of resources in January 2023. As part of the announcement, the Company decided to prioritize key research and development efforts to advance EO-3021 and other pipeline programs including those through its existing partnership with Caris Life Sciences. The pipeline prioritization involved pausing further investment in the clinical development of seribantumab, and Elevation Oncology intends to pursue further clinical development of seribantumab only in collaboration with a partner. Further enrollment into the CRESTONE study has also paused, pending entering into a partnership. As part of the realignment of resources, the Company’s workforce was reduced by approximately 30%.
Joseph Ferra appointed Interim Chief Executive Officer in January 2023. The Company’s Board of Directors appointed Mr. Ferra as Interim Chief Executive Officer. Mr. Ferra also remains as the Company’s Chief Financial Officer.
EO-3021
Phase 1 clinical trial in the US to evaluate EO-3021 expected to initiate in the second half of 2023. The Investigational New Drug application has been cleared with the U.S. Food and Drug Administration, and preparations are ongoing to initiate a Phase 1 clinical trial in the US. Elevation Oncology’s partner, CSPC Pharmaceutical Group Limited (HKEX: 01093), is actively recruiting patients in the Phase I clinical trial of EO-3021 (SYSA1801) in China (NCT05009966).
Plan to present preclinical proof-of-concept data of EO-3021 at a major medical conference in the first half of 2023. EO-3021 is a potential best-in-class, clinical-stage antibody-drug conjugate (ADC) designed to target Claudin 18.2 and selectively deliver a cytotoxic payload directly to cancer cells expressing Claudin 18.2. Claudin 18.2 is a clinically validated oncology target expressed in several solid tumor types including many gastrointestinal cancers such as gastric, gastroesophageal junction and pancreatic cancer.
Other Pipeline Programs
Plan to present additional interim data of seribantumab from the CRESTONE study in the first half of 2023.
Continue research and development efforts to advance novel therapeutic drug candidates and targets. Additional pipeline programs include those through its existing partnership with Caris Life Sciences.
Expected Upcoming Milestones and Operational Objectives
Present preclinical proof-of-concept data of EO-3021 at a major medical meeting in the first half of 2023
Initiate Phase 1 clinical trial of EO-3021 in the US in the second half of 2023
Report additional interim data of seribantumab from the CRESTONE study in the first half of 2023
Ongoing target evaluation for future pipeline expansion
Fourth Quarter and Full Year 2022 Financial Results
As of December 31, 2022, the Company had cash, cash equivalents and marketable securities totaling $90.3 million, compared to $107.9 million as of September 30, 2022.
Research and development expense for the fourth quarter 2022 was $14.5 million, compared to $6.2 million for the fourth quarter 2021. The increase in R&D expense was primarily related to seribantumab manufacturing and clinical trial expenses. For the year ended December 31, 2022, R&D expense was $78.7 million, compared to $23.6 million for the year ended December 31, 2021. The increase was primarily related to seribantumab manufacturing and clinical trial expenses and a one-time upfront license fee of $27.0 million paid to CSPC Megalith Biopharmaceutical Co., Ltd., a subsidiary of CSPC Pharmaceutical Group Limited, for the exclusive rights to develop and commercialize EO-3021 outside of Greater China.
General and administrative expense for the fourth quarter 2022 was $4.0 million, compared to $3.4 million for the fourth quarter 2021. The increase was primarily related to personnel costs. For the year ended December 31, 2022, G&A expense was $15.8 million, compared to $8.5 million for the year ended December 31, 2021. The increase was primarily related to personnel costs, professional services and other administrative costs.
Net loss for the fourth quarter 2022 was $19.0 million, compared to $9.6 million for the fourth quarter 2021.
Financial Outlook
Elevation Oncology expects its existing cash, cash equivalents and marketable securities as of December 31, 2022, will be sufficient to fund its current operations into the fourth quarter of 2024, without giving effect to financial covenant compliance under the Company’s debt facility.