BDTX-1535 Clinical Development - BDTX-1535 is a MasterKey therapy targeting families of oncogenic mutations, designed to expand the addressable patient population [4,5,8] - BDTX-1535 is in Phase 2 clinical trials for 2L/3L NSCLC with final data expected in H1 2026, and 1L NSCLC with initial data expected in Q4 2025 [9] - BDTX-1535 is also in Phase 0/1 clinical trials for GBM with initial data in newly diagnosed patients expected in H1 2026 [9] - Preliminary Phase 2 data shows a 42% ORR in recurrent NSCLC patients with PACC-NCM and/or C797S mutations [58] - The company anticipates FDA feedback on the approval pathway for BDTX-1535 in Q4 2025 [84] EGFR Mutations and Treatment Landscape - 23-30% of newly diagnosed EGFRm NSCLC patients carry non-classical mutations (NCMs) [14,17,28] - Real-world data shows that approximately 60% of 1L patients with EGFR-NCM NSCLC receive chemotherapy [21,22,28] - Median time on treatment for 1L NCM NSCLC is less than 8 months [23,28] - BDTX-1535 demonstrates high potency across the spectrum of NCMs and maintains activity where osimertinib loses potency [26,28,32,34] Financial Status - The company ended Q1 2025 with $152.4 million, providing a cash runway into Q4 2027 [5]

Core Insights - The article argues that the decline of Black Diamond Therapeutics (NASDAQ: BDTX) is not justified by the facts, especially considering upcoming trial readouts in the biotech sector [1] Company Analysis - Black Diamond Therapeutics is highlighted as a company with potential, particularly in the context of its clinical trials and the biochemistry expertise of the analyst [1] Industry Context - The article emphasizes the importance of understanding the science behind biotech investments, suggesting that informed analysis can help investors avoid pitfalls in this sector [1]

Black Diamond Therapeutics (BDTX) 2025 Conference June 04, 2025 04:20 PM ET Speaker0 Good afternoon. My name is Farzin Hak, one of the biotech analysts at Jefferies. I'm happy to introduce Mark Vileka, CEO of, Black Diamond Therapeutics. This is a fireside chat format. Thank you for joining us today. Speaker1 Thanks Farzan. Pleasure to be here. Speaker0 For those who are new to the story, can you provide a short overview of your program? Speaker1 Sure. So Black Diamond is a precision small molecule oncology ...

Company Overview - Black Diamond Therapeutics, Inc. is a clinical-stage oncology company focused on developing MasterKey therapies that target families of oncogenic mutations in cancer patients [3] - The company's MasterKey therapies aim to address a wide range of genetically defined tumors, overcome resistance, minimize wild-type mediated toxicities, and penetrate the brain to treat central nervous system diseases [3] Upcoming Events - The CEO, Mark Velleca, M.D., Ph.D., will participate in a fireside chat at the Jefferies Global Healthcare Conference on June 4, 2025, in New York, NY [1] - The company will also host one-on-one meetings with investors on the same day [1] Product Development - Black Diamond Therapeutics is advancing a Phase 2 trial for BDTX-1535, which is a brain-penetrant fourth-generation epidermal growth factor receptor (EGFR) MasterKey inhibitor targeting EGFR-mutant non-small cell lung cancer (NSCLC) and glioblastoma [3]

PART I [Condensed Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements for Q1 2025, showing a net income of **$56.5 million** primarily from **$70.0 million** in Servier license revenue [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$176.2 million** by March 31, 2025, primarily due to higher cash, with stockholders' equity rising to **$141.5 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $98,424 | $36,437 | | Total current assets | $155,679 | $101,176 | | **Total assets** | **$176,245** | **$122,640** | | **Liabilities & Equity** | | | | Total current liabilities | $16,847 | $20,573 | | Total liabilities | $34,729 | $39,355 | | **Total stockholders' equity** | **$141,516** | **$83,285** | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) The company reported a net income of **$56.5 million** for Q1 2025, a significant turnaround from a net loss in Q1 2024, driven by **$70.0 million** in license revenue Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | License revenue | $70,000 | $— | | Research and development | $10,506 | $13,545 | | General and administrative | $4,964 | $6,701 | | **Income (loss) from operations** | **$54,530** | **($20,246)** | | **Net income (loss)** | **$56,542** | **($18,225)** | | Net income (loss) per share - basic | $1.00 | ($0.35) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was **$53.4 million** in Q1 2025, a significant reversal from the prior year, ending the quarter with **$99.2 million** in cash and equivalents Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $53,410 | ($21,199) | | Net cash provided by (used in) investing activities | $8,547 | ($13,734) | | Net cash provided by financing activities | $32 | $4,130 | | **Net (decrease) increase in cash** | **$61,989** | **($30,803)** | [Condensed Consolidated Statements of Stockholders' Equity](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) Total stockholders' equity increased to **$141.5 million** by March 31, 2025, primarily due to the **$56.5 million** net income recorded during the quarter - Total stockholders' equity increased to **$141.5 million** as of March 31, 2025, up from **$83.3 million** at the end of 2024, mainly due to the **$56.5 million** net income for the quarter[23](index=23&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the Servier licensing agreement's **$70.0 million** upfront payment and confirm sufficient cash for the next 12 months - In March 2025, the company entered into a global licensing agreement with Servier Pharmaceuticals LLC for BDTX-4933[27](index=27&type=chunk)[76](index=76&type=chunk) - The Servier agreement provided a **$70.0 million** upfront payment and eligibility for up to **$710.0 million** in development and commercial sales milestone payments, plus tiered royalties[27](index=27&type=chunk)[76](index=76&type=chunk) - The company expects its cash, cash equivalents, and investments will be sufficient to fund planned operations for at least the next 12 months from the filing date[29](index=29&type=chunk) - The **$70.0 million** upfront payment was recognized as license revenue in Q1 2025, as it was determined to be a single performance obligation (license of functional IP) satisfied at contract execution[78](index=78&type=chunk)[81](index=81&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the **$70.0 million** Servier licensing agreement and the company's **$152.4 million** cash position, expected to fund operations into Q4 2027 [Overview](index=26&type=section&id=MD%26A%20Overview) The overview highlights the **$70.0 million** Servier licensing agreement and **$152.4 million** in cash, funding operations into Q4 2027 - The lead clinical program, BDTX-1535, is being evaluated in a Phase 2 trial for first-line EGFRm NSCLC, with initial results anticipated in Q4 2025[85](index=85&type=chunk) - A global licensing agreement was signed with Servier in March 2025 for BDTX-4933, providing a **$70.0 million** upfront payment[84](index=84&type=chunk)[88](index=88&type=chunk) - The company believes its cash, cash equivalents, and investments of **$152.4 million** as of March 31, 2025, will fund operations into the fourth quarter of 2027[94](index=94&type=chunk) [Results of Operations](index=31&type=section&id=MD%26A%20Results%20of%20Operations) Q1 2025 saw **$70.0 million** in license revenue, leading to **$54.5 million** in operating income, with reduced R&D and G&A expenses due to efficiencies Comparison of Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | License revenue | $70,000 | $— | $70,000 | | Research and development | $10,506 | $13,545 | ($3,039) | | General and administrative | $4,964 | $6,701 | ($1,737) | | **Income (loss) from operations** | **$54,530** | **($20,246)** | **$74,776** | - R&D expenses decreased by **$3.0 million** YoY, primarily due to operational efficiencies for BDTX-1535 and decreased spending on BDTX-4933 following its licensing[110](index=110&type=chunk)[111](index=111&type=chunk) - G&A expenses decreased by **$1.7 million** YoY, mainly from operational and workforce efficiencies resulting from the October 2024 corporate restructuring[112](index=112&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=MD%26A%20Liquidity%20and%20Capital%20Resources) Liquidity was significantly bolstered by the **$70.0 million** Servier upfront payment, resulting in **$152.4 million** in cash and investments, funding operations into Q4 2027 - As of March 31, 2025, the company had cash, cash equivalents, and investments of **$152.4 million**[119](index=119&type=chunk)[126](index=126&type=chunk) - The company received a **$70.0 million** upfront payment from Servier in March 2025 under a licensing agreement for BDTX-4933[118](index=118&type=chunk) Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash provided by (used in) operating activities | $53,410 | ($21,199) | | Cash provided by (used in) investing activities | $8,547 | ($13,734) | | Cash provided by financing activities | $32 | $4,130 | [Quantitative and Qualitative Disclosures about Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a smaller reporting company, the company is not required to provide market risk disclosures - As a smaller reporting company, the company is not required to provide quantitative and qualitative disclosures about market risk[143](index=143&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures were effective as of March 31, 2025[144](index=144&type=chunk) - No material changes in internal control over financial reporting were identified during the quarter ended March 31, 2025[145](index=145&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings that would adversely affect its business - The company is not currently aware of any material legal proceedings that would have a material adverse effect on its business, financial condition, or results of operations[147](index=147&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) Key risks include potential delays from inadequate government agency funding, macroeconomic and geopolitical disruptions, and dependence on partner performance under the Servier license agreement - Inadequate funding, personnel turnover, or shutdowns at the FDA and other government agencies could hinder the ability to review and approve new products in a timely manner[149](index=149&type=chunk)[150](index=150&type=chunk) - Macroeconomic conditions, political unrest, high inflation, and international trade disruptions (e.g., tariffs) could adversely affect research and development activities and increase costs[151](index=151&type=chunk) - The company's success with BDTX-4933 is now dependent on Servier's performance under the license agreement, and future collaborations carry similar risks of non-performance or strategic shifts by partners[157](index=157&type=chunk)[159](index=159&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities during the period - There were no unregistered sales of equity securities in the reported period[161](index=161&type=chunk) [Defaults Upon Senior Securities](index=42&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None[163](index=163&type=chunk) [Mine Safety Disclosures](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[164](index=164&type=chunk) [Other Information](index=42&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the quarter - During the three months ended March 31, 2025, none of the company's directors or officers adopted or terminated a Rule 10b5-1 trading arrangement[165](index=165&type=chunk) [Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including the Servier License Agreement and certifications from the Principal Executive and Financial Officers - Filed exhibits include the License Agreement with Servier Pharmaceuticals LLC, dated March 18, 2025[167](index=167&type=chunk) - Certifications by the Principal Executive Officer and Principal Financial Officer pursuant to Sarbanes-Oxley Act sections 302 and 906 are included as exhibits[167](index=167&type=chunk) [Signatures](index=44&type=section&id=SIGNATURES)

[Q1 2025 Financial Results and Corporate Update](index=1&type=section&id=Black%20Diamond%20Therapeutics%20Reports%20First%20Quarter%202025%20Financial%20Results%20and%20Provides%20Corporate%20Update) Black Diamond Therapeutics reported Q1 2025 results, highlighting BDTX-1535 trial progress and a Servier deal extending cash runway [Report Overview](index=1&type=section&id=Report%20Overview) Black Diamond Therapeutics reported Q1 2025 results, highlighting BDTX-1535 trial progress and a Servier deal extending cash runway - The company is executing on enrollment for the BDTX-1535 Phase 2 trial for newly diagnosed EGFRm NSCLC patients, with a clinical update expected in **Q4 2025**[3](index=3&type=chunk) - A global licensing agreement with Servier for BDTX-4933 has provided a strong cash position, with an expected runway into **Q4 2027**[3](index=3&type=chunk) - Pending FDA feedback in **Q4 2025**, the company is positioned to begin pivotal development of BDTX-1535 in the **first half of 2026**[3](index=3&type=chunk) [Recent Developments & Upcoming Milestones](index=1&type=section&id=Recent%20Developments%20%26%20Upcoming%20Milestones) The company detailed progress for BDTX-1535 in NSCLC and GBM trials, alongside a significant Servier licensing deal for BDTX-4933 [BDTX-1535 Program Updates](index=1&type=section&id=BDTX-1535) Black Diamond is on track to disclose initial Phase 2 data for BDTX-1535 in EGFRm NSCLC in Q4 2025, and expanded its GBM trial - Initial Phase 2 clinical data for BDTX-1535 in newly diagnosed non-classical EGFRm NSCLC patients is expected in **Q4 2025**[5](index=5&type=chunk)[6](index=6&type=chunk) - An investigator-sponsored Phase 0/1 trial was expanded in **March 2025** to include newly diagnosed glioblastoma (GBM) patients with EGFR alterations[5](index=5&type=chunk)[6](index=6&type=chunk) - Data presented at the AACR Annual Meeting for BDTX-1535 in recurrent GBM patients showed encouraging pharmacokinetic and safety data, providing a strong rationale for program expansion[6](index=6&type=chunk) [Corporate Developments](index=2&type=section&id=Corporate) Black Diamond finalized a global licensing agreement with Servier for BDTX-4933, securing **$70 million** upfront and potential milestone payments Servier Licensing Agreement Terms | Term | Value | | :--- | :--- | | Upfront Payment | $70.0 million (received March 2025) | | Potential Milestone Payments | Up to $710.0 million | | Royalties | Tiered royalties on global net sales | - Servier will lead the development activities and worldwide commercialization of BDTX-4933 for multiple indications, including NSCLC[7](index=7&type=chunk) [Financial Highlights](index=2&type=section&id=Financial%20Highlights) The company reported strong Q1 2025 financials, with **$56.5 million** net income and cash runway into Q4 2027, driven by a licensing deal [Financial Guidance and Cash Position](index=2&type=section&id=Financial%20Guidance%20and%20Cash%20Position) As of March 31, 2025, Black Diamond's cash, cash equivalents, and investments stood at **$152.4 million**, sufficient to fund operations into Q4 2027 Cash Position | Date | Cash, Cash Equivalents, and Investments (in millions) | | :--- | :--- | | March 31, 2025 | $152.4 | | December 31, 2024 | $98.6 | - The company believes its current cash position is sufficient to fund anticipated operating expenses and capital expenditure requirements into the **fourth quarter of 2027**[9](index=9&type=chunk) Net Cash from Operations (YoY, in millions) | Period | Net Cash Provided By/(Used In) Operations | | :--- | :--- | | Q1 2025 | $53.4 | | Q1 2024 | ($21.2) | [Q1 2025 Operating Results](index=2&type=section&id=Q1%202025%20Operating%20Results) Black Diamond reported **$56.5 million** net income for Q1 2025, a significant improvement driven by license revenue and reduced operating expenses Q1 Operating Results Comparison (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income / (Loss) | $56.5 | ($18.2) | | R&D Expenses | $10.5 | $13.5 | | G&A Expenses | $5.0 | $6.7 | - The decrease in R&D expenses was primarily due to workforce efficiencies and increased focus on BDTX-1535 development[12](index=12&type=chunk) - The decrease in G&A expenses was primarily due to the restructuring announced in **October 2024**[12](index=12&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Q1 2025 unaudited financials show total assets of **$176.2 million** and equity of **$141.5 million**, driven by **$70 million** license revenue Condensed Consolidated Balance Sheet Data (Unaudited, in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash, cash equivalents, and investments | $152.4 | $98.6 | | Total assets | $176.2 | $122.6 | | Total stockholders' equity | $141.5 | $83.3 | Consolidated Statements of Operations (Unaudited, in millions) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | License revenue | $70.0 | $0 | | Total operating expenses | $15.5 | $20.2 | | Net income (loss) | $56.5 | ($18.2) | | Net income (loss) per share - basic | $1.00 | ($0.35) |

Core Viewpoint - Black Diamond Therapeutics reported strong financial results for Q1 2025, highlighting a significant net income and a robust cash position, while advancing its clinical trials for BDTX-1535 and BDTX-4933 [1][15]. Corporate Developments - The company is executing enrollment in the Phase 2 trial for BDTX-1535 targeting newly diagnosed patients with EGFRm NSCLC, with a clinical update expected in Q4 2025 [2][6]. - A global licensing agreement with Servier for BDTX-4933 was announced, providing an upfront payment of $70 million and potential milestone payments up to $710 million, along with tiered royalties based on global net sales [4][8]. Financial Highlights - As of March 31, 2025, Black Diamond had cash, cash equivalents, and investments totaling $152.4 million, a significant increase from $98.6 million at the end of 2024, which is expected to fund operations into Q4 2027 [6][10]. - The company reported a net income of $56.5 million for Q1 2025, compared to a net loss of $18.2 million for the same period in 2024 [15][19]. - Research and development expenses decreased to $10.5 million in Q1 2025 from $13.5 million in Q1 2024, attributed to workforce efficiencies [8][9]. Clinical Developments - Initial Phase 2 clinical data for BDTX-1535 in newly diagnosed patients with non-classical EGFRm NSCLC is expected to be disclosed in Q4 2025 [7]. - The Phase 0/1 trial of BDTX-1535 was expanded into newly diagnosed glioblastoma patients with EGFR alterations, showing promising pharmacokinetic and safety data [6][7].

Group 1 - Black Diamond Therapeutics, Inc. announced a strategic worldwide licensing agreement for BDTX-4933 with Servier [1] - Following the announcement, the stock initially surged by 65% but later declined to $1.72 [1] Group 2 - The article reflects the author's personal investment position in BDTX, indicating a beneficial long position [2]

Core Insights - Servier and Black Diamond Therapeutics have entered into a strategic worldwide licensing agreement for BDTX-4933, a targeted therapy for solid tumors, with Servier responsible for its development and commercialization [1][2][6] - The agreement includes an upfront payment of $70 million to Black Diamond, with potential additional payments of up to $710 million based on development and commercial milestones, along with tiered royalties on global net sales [2][6] Company Overview - Servier is a global pharmaceutical group governed by a non-profit foundation, focusing on significant unmet medical needs and investing approximately 70% of its R&D budget in oncology [5][6] - Black Diamond Therapeutics specializes in developing MasterKey therapies targeting oncogenic mutations, with a focus on precision medicine to address a broad spectrum of genetically defined tumors [8] Product Development - BDTX-4933 is currently in Phase 1 development, specifically designed to target RAS and RAF alterations in solid tumors, including non-small cell lung cancer (NSCLC) [3][6] - The ongoing clinical trial aims to evaluate the safety, tolerability, and preliminary antitumor activity of BDTX-4933 in adults with recurrent advanced/metastatic cancers harboring specific mutations [3][6]

Core Viewpoint - Servier and Black Diamond Therapeutics have entered into a strategic worldwide licensing agreement for BDTX-4933, a targeted therapy for solid tumors, with Servier leading its development and commercialization [1][2][6]. Group 1: Agreement Details - Servier will develop and commercialize BDTX-4933, focusing on multiple indications including non-small cell lung cancer (NSCLC) and other solid tumors [2][6]. - Black Diamond Therapeutics will receive an upfront payment of $70 million and could earn up to $710 million in development and commercial sales milestone payments, along with tiered royalties based on global net sales [2][6]. Group 2: Product Development - BDTX-4933 is currently in Phase 1 development, specifically designed to target RAS and RAF alterations in solid tumors [3][6]. - The ongoing first-in-human study aims to evaluate the safety, tolerability, and preliminary antitumor activity of BDTX-4933 in adults with recurrent advanced/metastatic cancers harboring specific mutations [3][6]. Group 3: Company Profiles - Servier is a global pharmaceutical group governed by a non-profit foundation, focusing on long-term innovation and reinvesting 100% of its profits into development [4][5]. - Black Diamond Therapeutics specializes in developing MasterKey therapies targeting oncogenic mutations, with a focus on addressing genetically defined tumors and overcoming treatment resistance [8].