Atossa Therapeutics’ Earnings Call Highlights Cost Reductions and Clinical Progress

Atossa Therapeutics’ Earnings Call Highlights Cost Reductions and Clinical Progress

Atossa Therapeutics, Inc. ((ATOS)) has held its Q4 earnings call. Read on for the main highlights of the call.

Atossa Therapeutics’ recent earnings call conveyed a generally positive sentiment, underscored by significant reductions in operating costs and promising clinical advancements for their lead drug candidate, (Z)-endoxifen, particularly in the treatment of metastatic breast cancer. However, the financial positives were somewhat tempered by the impact of a write-off and a decrease in interest income.

Reduced Operating Expenses

The company reported a decrease in total operating expenses to $27.6 million from $31.4 million in 2023, marking a $3.8 million reduction. This decline reflects disciplined spending across both research and development (R&D) and general and administrative (G&A) expenses.

R&D Cost Reduction

R&D expenses saw a notable decline of $3.2 million, dropping from $17.3 million in 2023 to $14.1 million in 2024. This reduction was primarily driven by decreased spending on (Z)-endoxifen trials and drug development.

Strong Cash Position

Atossa closed the year with a robust cash position of $71.1 million in cash and cash equivalents. This financial strength provides a healthy runway to continue advancing (Z)-endoxifen and other research initiatives.

(Z)-endoxifen Clinical Progress

The clinical progress of (Z)-endoxifen was a highlight, with Phase I and Phase II studies showing promising results. The drug demonstrated robust plasma concentration, a 26% clinical benefit rate in challenging treatment settings, and a significant reduction in mammographic breast density.

Metastatic Breast Cancer Focus

Atossa is prioritizing the advancement of (Z)-endoxifen for metastatic breast cancer, aiming for expedited approval and a faster time to market, which could significantly benefit patients with this difficult-to-treat condition.

Investment Write-off

The company recorded a $1.7 million write-off as Dynamic Cell Therapies ceased operations in the fourth quarter of 2024, impacting the financial results.

Decreased Interest Income

Interest income for the year was $4.1 million, showing a slight decrease compared to 2023. This was attributed to a lower average invested balance throughout 2024.

G&A Expense Details

General and administrative expenses saw an increase in professional fees by $1.8 million year-over-year, primarily due to heightened legal and investor relation costs, along with accounting fees associated with public company operations.

Forward-Looking Guidance

Looking ahead, Atossa Therapeutics provided guidance indicating a decrease in operating expenses to $27.6 million for 2024, driven by disciplined spending in R&D and G&A. The company reported a net loss of $25.5 million or $0.20 per share, an improvement from the previous year’s $30.1 million or $0.24 per share. With $71.1 million in cash, Atossa is well-positioned to advance (Z)-endoxifen, particularly in metastatic breast cancer settings. They plan to focus on the U.S. FDA process for a streamlined path to market, with further guidance anticipated as they engage with key opinion leaders and regulatory authorities.

In summary, Atossa Therapeutics’ earnings call highlighted a positive outlook with reduced expenses and promising clinical progress for (Z)-endoxifen. While financial challenges such as a write-off and decreased interest income were noted, the company’s strong cash position and strategic focus on metastatic breast cancer provide a solid foundation for future growth.

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