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Jun 30, 2024
Cassava Sciences Q2 2024 Earnings Report
Reported financial results for the second quarter ended June 30, 2024.
Key Takeaways
Cassava Sciences reported a net income of $6.2 million for the second quarter of 2024, a significant improvement compared to a net loss of $26.4 million for the same period in 2023. The company's warrant program provided over $123 million in equity capital, strengthening its balance sheet. Both Phase 3 studies are fully enrolled, with top-line data readout for the RETHINK-ALZ study expected by the end of 2024 and for the REFOCUS-ALZ study in mid-2025.
Net income was $6.2 million, compared to a net loss of $26.4 million for the same period in 2023.
The warrant program provided over $123 million net in equity capital.
Both Phase 3 studies are fully enrolled with approximately 1,900 patients randomized.
Top-line data readout for the RETHINK-ALZ study is expected by the end of 2024, and for the REFOCUS-ALZ study in mid-2025.
Forward Guidance
Cassava Sciences anticipates net cash use in the second half of 2024 to be $80 to $90 million, which includes an estimated $40 million loss contingency related to advanced discussions to resolve the SEC’s investigation of the Company recorded in the second quarter. The company expects the last patient/last visit for the ReTHINK trial in early Q4 and a top-line read out from the trial by year-end. The company also expects the second Phase 3 trial, ReFOCUS, to read out in mid-year 2025.
Positive Outlook
- Last patient/last visit for the ReTHINK trial expected in early Q4.
- Top-line readout from the ReTHINK trial expected by year-end.
- ReFOCUS trial readout expected in mid-year 2025.
- Strong balance sheet with enough liquidity to get well past Phase 3 readouts.
- Over 870 patients have entered the open-label extension study.
Challenges Ahead
- Net cash used in operations was $37.4 million during the first half of 2024.
- Net cash use in second half 2024 is expected to be $80 to $90 million.
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