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.