Financial Position - Contineum Therapeutics reported a strong cash position of $214 million at the end of Q3 2024, expected to support operations through 2027[1]. - Contineum's total assets increased to $216 million as of September 30, 2024, compared to $130.4 million at the end of 2023[9]. Clinical Trials and Development - As of September 30, 2024, Contineum achieved two-thirds enrollment in its VISTA trial for PIPE-307, ahead of initial projections, with full enrollment expected in the first half of 2025[2]. - Contineum plans to initiate a Phase 1b open-label clinical trial of PIPE-791 in December 2024, pending authorization from the MHRA[3]. - The company anticipates multiple potential clinical readouts in 2025, supported by its strong cash balance[2]. - Contineum expects to nominate a development candidate from its discovery portfolio by the end of 2024[4]. - The company has a pipeline focused on high unmet needs in neuroscience, inflammation, and immunology indications[7]. Expenses and Losses - Research and development expenses increased to $9.7 million in Q3 2024, up from $6.5 million in Q3 2023, primarily due to ongoing clinical trials and toxicology studies[5]. - General and administrative expenses rose to $3.3 million in Q3 2024, compared to $1.6 million in Q3 2023, driven by increases in stock-based compensation and personnel-related expenses[6]. - The net loss for Q3 2024 was $10.3 million, compared to a net loss of $6.3 million in Q3 2023[10].

Research and Development - The company reported a total research and development expense of $7.9 million for the three months ended June 30, 2024, compared to $9.5 million for the same period in 2023, reflecting a decrease of approximately 16.5%[96] - PIPE-791, the lead asset, is in development for idiopathic pulmonary fibrosis (IPF) and progressive multiple sclerosis (Progressive MS), with plans to submit a clinical trial application for a Phase 1b trial in 2024[82] - PIPE-307, the second drug candidate, has completed two Phase 1 trials and has initiated a Phase 2 trial for relapse-remitting multiple sclerosis (RRMS), making it the most clinically advanced selective M1R antagonist[83] - The company anticipates that its research and development expenses will increase substantially in connection with planned preclinical and clinical development activities[98] - The company has incurred direct external development program expenses of $2.3 million for PIPE-307 in the first half of 2024, compared to $1.3 million in the same period of 2023, indicating an increase of approximately 75%[96] - The company is leveraging its drug discovery capabilities and has commenced preclinical studies for CTX-343, a peripherally-restricted LPA1R antagonist targeting other NI&I indications[84] - Research and development expenses decreased to $7.9 million for the three months ended June 30, 2024, from $9.5 million in 2023, a reduction of $1.6 million[104] - Research and development expenses for the six months ended June 30, 2024, were $15.7 million, up from $13.1 million in 2023, an increase of $2.6 million[111] Financial Performance - License revenue for the three months ended June 30, 2024, was $0, compared to $50.0 million for the same period in 2023, resulting in a decrease of $50.0 million[103] - The net loss for the three months ended June 30, 2024, was $9.0 million, compared to a net income of $41.6 million for the same period in 2023, a decrease of $50.6 million[103] - For the six months ended June 30, 2024, license revenue was $0, down from $50.0 million in 2023, a decrease of $50.0 million[110] - Interest income rose to $2.0 million for the three months ended June 30, 2024, compared to $0.7 million in 2023, an increase of $1.3 million[106] - General and administrative expenses increased to $3.0 million for the three months ended June 30, 2024, from $1.6 million in 2023, an increase of $1.4 million[105] Cash Flow and Financing - As of June 30, 2024, the company had cash, cash equivalents, and marketable securities totaling $218.7 million[116] - The company raised approximately $107.9 million in net proceeds from its IPO in April 2024[115] - Net cash used in operating activities was $16.5 million for the six months ended June 30, 2024, compared to $35.4 million provided in the same period of 2023[120] - Net cash used in investing activities was $30.2 million for the six months ended June 30, 2024, primarily due to $99.6 million in purchases of marketable securities[121] - Net cash provided by financing activities was $108.3 million for the six months ended June 30, 2024, mainly from $108.2 million in net proceeds from the issuance of common stock in the IPO[122] - The company expects to finance operations through public and private sales of equity, debt financings, or other commercial arrangements, but there is no assurance that additional financing will be available on acceptable terms[86] - The company may finance cash needs through public or private equity or debt financings, which could dilute existing stockholders' ownership[126] Future Outlook - Total operating expenses are expected to significantly increase as the company continues to develop its drug candidates and expand operations[85] - The company expects to incur substantial expenditures as it advances its drug candidates through clinical development and regulatory approval processes[114] - The company anticipates that existing cash, cash equivalents, and marketable securities will be sufficient to support operations for at least 12 months from the date of the report[123] - Future capital requirements will depend on the progress and costs of clinical trials and regulatory reviews[124] Licensing and Agreements - The company received an upfront payment of $50 million from Johnson & Johnson (J&J) in May 2023 as part of the licensing agreement for PIPE-307, with potential milestone payments totaling approximately $1 billion[91] - The J&J License Agreement allows for tiered royalties in the low-double digit to high-teen percent range on net sales of products containing PIPE-307[91] Company Classification - The company is classified as an "emerging growth company" and a "smaller reporting company," allowing it to take advantage of scaled disclosures[131][132] - There were no off-balance sheet arrangements during the periods presented[128]

Financial Position - Contineum Therapeutics reported a strong cash position of $218.7 million as of June 30, 2024, up from $125.2 million at the end of 2023, supporting multiple clinical readouts[8] - The total assets of Contineum increased to $221.4 million as of June 30, 2024, compared to $130.4 million at the end of 2023[14] - The company completed its initial public offering (IPO) in April 2024, resulting in net proceeds of $107.9 million[8] Research and Development - Research and development expenses decreased to $7.9 million for Q2 2024, down from $9.5 million in Q2 2023, primarily due to a $4.8 million decrease in consulting and manufacturing expenses[9] - Research and development expenses for the six months ended June 30, 2024, were $15,679, up from $13,092 in the same period in 2023[15] - PIPE-307, a selective inhibitor of the M1 receptor, is being developed for relapsed-remitting multiple sclerosis (RRMS) and is expected to initiate a Phase 1b trial for PIPE-791 in Q4 2024[2] - Enrollment in the Phase 2 VISTA clinical trial for PIPE-307 is on track, with completion expected in 2025[4] - PIPE-791, an LPA1 receptor antagonist, showed promising preclinical results in treating neuropathic pain, presented at the IASP World Congress on Pain[6] - The company has a pipeline of drug candidates targeting high unmet needs in neuroscience, inflammation, and immunology indications[11] Operating Expenses - General and administrative expenses increased to $3.0 million for Q2 2024, compared to $1.6 million in Q2 2023, driven by a $0.6 million increase in consulting expenses and a $0.7 million increase in personnel costs[10] - Total operating expenses for the three months ended June 30, 2024, were $10,944, a decrease from $11,063 in the previous quarter[15] Income and Loss - Net loss for the three months ended June 30, 2024, was $(9,009), compared to a net income of $41,564 for the same period in 2023[15] - Net income per share, basic, for the three months ended June 30, 2024, was $(0.39), compared to $2.56 for the same period in 2023[15] - Comprehensive loss for the three months ended June 30, 2024, was $(9,078), compared to a comprehensive income of $41,508 for the same period in 2023[15] - Income (loss) from operations for the three months ended June 30, 2024, was $(10,944), compared to $38,937 in the previous quarter[15] Other Income - License revenue for the six months ended June 30, 2024, was $50,000, compared to $50,000 for the same period in 2023[15] - Interest income for the three months ended June 30, 2024, was $2,001, compared to $679 in the previous quarter[15] - Total other income for the three months ended June 30, 2024, was $1,935, compared to $3,356 in the previous quarter[15] Leadership - Contineum appointed experienced biotech leaders to its Board of Directors, including Troy Ignelzi and Sarah Boyce, enhancing its leadership team[2]

Financial Performance - Net loss for Q1 2024 was $8.4 million, up from a net loss of $4.8 million in Q1 2023, representing a 75% increase in losses[138]. - Cash used in operating activities was $8.0 million in Q1 2024, compared to $5.2 million in Q1 2023, indicating a 54% increase in cash outflow[138]. - Interest income grew to $1.6 million in Q1 2024 compared to $0.4 million in Q1 2023, reflecting a 300% increase due to higher investments in marketable securities[130]. - General and administrative expenses rose to $2.2 million in Q1 2024 from $1.5 million in Q1 2023, an increase of 47%[129]. - Research and development expenses increased to $7.8 million in Q1 2024 from $3.6 million in Q1 2023, a rise of 114%[128]. Funding and Financial Position - The company raised approximately $194.0 million from the issuance of convertible preferred stock and promissory notes, along with a $50.0 million upfront payment from the J&J License Agreement[133]. - As of March 31, 2024, the company had cash, cash equivalents, and marketable securities totaling $117.9 million[134]. - The company anticipates that existing cash and marketable securities will be sufficient to support operations for at least 12 months from the date of the report[134]. - The total contractual commitments for lease agreements amounted to approximately $7.8 million as of March 31, 2024[147]. Research and Development - Total research and development costs for the three months ended March 31, 2024, were $7.778 million, a significant increase from $3.632 million in the same period of 2023[120]. - PIPE-791's development is supported by preclinical studies and Phase 1 data, with plans to submit a clinical trial application in 2024 for a Phase 1b trial[104]. - PIPE-307 is in a Phase 2 trial for relapse-remitting multiple sclerosis (RRMS) and is the most clinically advanced selective M1R antagonist in development[105]. - The company has completed two Phase 1 trials of PIPE-307 and is conducting a Phase 2 trial at its own expense[113]. - The company plans to leverage its drug discovery capabilities with preclinical studies for CTX-343, a peripherally-restricted LPA1R antagonist[106]. - The company expects substantial increases in research and development expenses in connection with planned preclinical and clinical development activities[121]. - The company expects to incur substantial expenses related to clinical trials and product development activities in the near term[132]. Operational Expectations - The company expects operating expenses to significantly increase as it continues clinical trials and seeks regulatory approvals for its drug candidates[108]. - The company anticipates that general and administrative expenses will rise due to increased research and development activities and operating as a public company[124]. - The company may need to delay or reduce product development if additional funding is not obtained, which could adversely affect its business[109]. Internal Controls - As of March 31, 2024, the company's disclosure controls and procedures were evaluated as effective at the reasonable assurance level by the principal executive officer and principal financial officer[157]. - There have been no changes in the internal control over financial reporting during the quarter ended March 31, 2024, that materially affected or are likely to materially affect the internal control over financial reporting[158].

Financial Performance - Contineum completed its initial public offering (IPO) in April 2024, resulting in net proceeds of $108.0 million, increasing its proforma cash balance to $225.9 million as of March 31, 2024, which is expected to fund operations until the end of 2027[3] - Research and development expenses for Q1 2024 were $7.8 million, a 115% increase from $3.6 million in Q1 2023, primarily due to increased development activities[9] - General and administrative expenses rose to $2.2 million in Q1 2024 from $1.5 million in Q1 2023, reflecting a 47% increase driven by higher consulting and personnel costs[10] - The net loss for Q1 2024 was $8.4 million, compared to a net loss of $4.8 million in Q1 2023, indicating a 75% increase in losses year-over-year[15] - Contineum's cash, cash equivalents, and marketable securities decreased to $117.9 million as of March 31, 2024, down from $125.2 million at the end of 2023[8] Clinical Development - The company initiated a Phase 2 trial of PIPE-307 in relapse-remitting multiple sclerosis (RRMS) and plans to start a Phase 1b trial of PIPE-791 in Q4 2024[2] - Contineum nominated a third development candidate, CTX-343, in January 2024, with preclinical studies underway and an Investigational New Drug Application (IND) expected to be submitted in 2025[5] - The Phase 1 clinical trial of PIPE-791 met its primary and secondary objectives, demonstrating safety and tolerability, with plans for a Phase 1b trial to assess pharmacokinetics[4] - The company presented positive LPA1 expression data for PIPE-791 at the Myelin Gordon Conference, supporting its clinical development in progressive multiple sclerosis[6] Leadership Changes - Contineum appointed Olivia Ware to its Board of Directors, bringing over 20 years of experience in pharmaceutical drug development and commercialization[7]