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Dec 31, 2022

Zentalis Q4 2022 Earnings Report

Zentalis reported its financial results for the fourth quarter and full year 2022, highlighting progress in its clinical programs and financial position.

Key Takeaways

Zentalis Pharmaceuticals reported a cash balance of $437.4 million as of December 31, 2022, projecting a cash runway into Q2 2025. The company is focused on advancing its clinical development strategy for azenosertib and ZN-d5.

On track to declare monotherapy RP2D for azenosertib in 1H 2023.

Pursuing Cyclin E1 as a patient enrichment strategy for azenosertib monotherapy in ovarian cancer.

Initiated enrollment in Phase 1/2 azenosertib + BEACON regimen combination study in BRAF V600E mutated mCRC.

Enrollment ongoing in clinical trials investigating ZN-d5 in (AL) amyloidosis.

EPS
-$0.92
Previous year: -$1.11
-17.1%
Cash and Equivalents
$437M
Previous year: $340M
+28.7%
Free Cash Flow
-$37.5M
Previous year: -$39.2M
-4.4%
Total Assets
$539M
Previous year: $455M
+18.7%

Zentalis

Zentalis

Forward Guidance

Zentalis is focused on several key milestones in 2023, including declaring the RP2D for azenosertib, advancing the Cyclin E1 enrichment strategy, presenting clinical data for ZN-d5, and continuing enrollment in ongoing clinical trials.

Positive Outlook

  • Declaring a monotherapy RP2D for azenosertib in the first half of 2023.
  • Presenting Cyclin E1 preclinical data in the first half of 2023.
  • Reporting results from the Phase 1b chemotherapy combination clinical trial in ovarian cancer in the second half of 2023.
  • Announcing interim clinical data and declare the RP2D for the Phase 1/2 monotherapy clinical trial of ZN-d5 in relapsed or refractory light chain (AL) amyloidosis in the second half of 2023.
  • Providing preliminary data from the Phase 1/2 combination study of ZN-d5 and azenosertib in AML in the second half of 2023.

Challenges Ahead

  • Limited operating history may make it difficult to evaluate the business and predict future success.
  • The company has and expects to continue to incur significant losses.
  • The company needs additional funding, which may not be available.
  • Substantial dependence on the success of lead product candidates.
  • Potential unforeseen events during clinical trials could cause delays or other adverse consequences.