Company Overview - Janux Therapeutics, Inc. (JANX) shares increased by 6.5% to $46.53 in the last trading session, with a notable trading volume that exceeded the average [1] - The stock has gained 8.8% over the past four weeks, indicating positive momentum [1] Pipeline and Clinical Studies - The rise in stock price is linked to positive investor expectations regarding Janux's pipeline, particularly candidates JANX007 and JANX008, which are in early-stage clinical studies for prostate cancer and solid tumors, respectively [2] - An update on JANX007 data and doses for expansion cohorts is expected by the end of 2024, while data for JANX008 is anticipated in 2025 [2] Financial Performance Expectations - The company is projected to report a quarterly loss of $0.37 per share, reflecting a year-over-year decline of 48% [3] - Expected revenues are $1 million, down 60.3% from the same quarter last year [3] - The consensus EPS estimate has been revised 5.3% lower over the last 30 days, indicating a negative trend in earnings estimate revisions [4] Industry Context - Janux Therapeutics operates within the Zacks Medical - Biomedical and Genetics industry, where another company, Krystal Biotech, Inc. (KRYS), has shown a different performance with a 1.6% decline in its last trading session [4] - Krystal Biotech's consensus EPS estimate remains unchanged at $0.77, representing a significant year-over-year increase of 214.9% [5]

Group 1 - Janux Therapeutics reported a quarterly loss of $0.11 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.32, and an improvement from a loss of $0.42 per share a year ago, resulting in an earnings surprise of 65.63% [1] - The company achieved revenues of $8.9 million for the quarter ended June 2024, exceeding the Zacks Consensus Estimate by 1,078.41%, compared to revenues of $1.06 million in the same quarter last year [2] - Janux Therapeutics has surpassed consensus EPS estimates for four consecutive quarters, indicating strong performance [2] Group 2 - The stock of Janux Therapeutics has increased approximately 243.9% since the beginning of the year, outperforming the S&P 500's gain of 9.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is -$0.32 on revenues of $1.06 million, and for the current fiscal year, it is -$1.34 on revenues of $2.11 million [7] Group 3 - The Medical - Biomedical and Genetics industry, to which Janux Therapeutics belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for Janux Therapeutics is currently mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

Financial Performance - Net losses for the six months ended June 30, 2024 were $20.7 million, compared to $35.0 million for the same period in 2023, with an accumulated deficit of $189.5 million as of June 30, 2024[82] - Net loss improved by $14.2 million to $20.7 million for the six months ended June 30, 2024, compared to the same period in 2023[96] - Other income increased by $4.7 million to $7.9 million for the three months ended June 30, 2024, driven by higher cash balances and interest rate impacts[96] - Cash, cash equivalents, restricted cash, and short-term investments totaled $647.1 million as of June 30, 2024[102] - Net cash provided by financing activities was $324.9 million for the six months ended June 30, 2024, primarily from equity offerings[108] - Net cash used in investing activities was $304.6 million for the six months ended June 30, 2024, mainly due to short-term investment purchases[107] - The company has $150.0 million remaining available for sale under its ATM Equity Offering program as of June 30, 2024[103] Collaboration and Revenue - Collaboration revenue under the Merck Agreement was $10.1 million for the six months ended June 30, 2024, up from $3.1 million in the same period in 2023[86] - Collaboration revenue increased by $7.0 million to $10.1 million for the six months ended June 30, 2024, due to a developmental milestone under the Merck Agreement[97] - The company's collaboration with Merck could yield up to $500.5 million per target in upfront and milestone payments, plus royalties on sales of products derived from the collaboration[84] Research and Development - Research and development expenses for the three months ended June 30, 2024 were $14.9 million, consistent with the same period in 2023, with fluctuations in costs related to JANX007 and JANX008 development[93][94] - Research and development expenses decreased by $1.8 million to $29.0 million for the six months ended June 30, 2024, primarily due to reduced preclinical program costs[99] - JANX007, a prostate-specific membrane antigen TRACTr, showed meaningful PSA drops and a favorable safety profile in Phase 1 clinical trials for metastatic castration-resistant prostate cancer[80] - JANX008, an EGFR-TRACTr, demonstrated anti-tumor activity in multiple solid cancers with low-grade cytokine release syndrome and treatment-related adverse events in Phase 1 trials[80] - The company's TRACTr and TRACIr platforms aim to develop tumor-activated immunotherapies for cancer, with a focus on overcoming limitations of prior T cell engager technologies[80] General and Administrative Expenses - General and administrative expenses increased to $7.8 million for the three months ended June 30, 2024, up from $6.9 million in the same period in 2023, primarily due to stock-based compensation and personnel costs[95] - General and administrative expenses increased by $1.9 million to $15.2 million for the six months ended June 30, 2024, driven by higher stock-based compensation and personnel costs[100] Future Outlook and Financial Position - The company expects to continue incurring significant losses for the foreseeable future as it advances its research and development activities, with no product revenue expected for many years[83] - The company believes its existing cash, cash equivalents, and short-term investments will be sufficient to meet operating expenses and capital expenditure requirements for at least the next 12 months[83] - The company believes its current cash reserves will support operations for at least the next 12 months[109] Regulatory and Legal Matters - The company qualifies as an "emerging growth company" and "smaller reporting company" until December 31, 2024, after which it will reassess its status as a large accelerated filer[114] - Financial statements are prepared under U.S. GAAP, requiring estimates and judgments for assets, liabilities, revenues, and expenses, with actual results potentially differing from estimates[115] - No material changes to critical accounting policies during the six months ended June 30, 2024[116] - Disclosure controls and procedures were effective as of the end of the reporting period, ensuring timely and accurate reporting under SEC rules[118] - No changes in internal control over financial reporting during the most recent quarter that materially affected or are likely to affect financial reporting[119] - The company is not currently involved in any material legal proceedings, but such proceedings could have adverse impacts regardless of outcome[120]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40475 Janux Therapeutics, Inc. (Exact Name of Registrant as Specified in its Charter) | Delaware | 82-2289112 | ...

[Janux Therapeutics First Quarter 2024 Report](index=1&type=section&id=Janux%20Therapeutics%20First%20Quarter%202024%20Report) [Business Highlights and Future Milestones](index=1&type=section&id=Business%20Highlights%20and%20Future%20Milestones) Janux Therapeutics is advancing its clinical programs, with continued enrollment in Phase 1 trials for its key drug candidates, JANX007 for prostate cancer and JANX008 for various solid tumors, anticipating data updates in 2024 and 2025 while expanding its preclinical pipeline - Enrollment is ongoing for the Phase 1 clinical trial of **JANX007 (PSMA-TRACTr)** in patients with metastatic castration-resistant prostate cancer (**mCRPC**)[5](index=5&type=chunk)[6](index=6&type=chunk) - Enrollment continues for the Phase 1 clinical trial of **JANX008 (EGFR-TRACTr)** in patients with advanced or metastatic **solid tumors**[5](index=5&type=chunk)[6](index=6&type=chunk) - Key data updates are planned, with **JANX007** data and expansion cohort dose selection expected in the **second half of 2024**, and an update on **JANX008** data anticipated in **2025**[3](index=3&type=chunk)[5](index=5&type=chunk) [First Quarter 2024 Financial Results](index=1&type=section&id=First%20Quarter%202024%20Financial%20Results) In the first quarter of 2024, Janux significantly strengthened its financial position, with cash, cash equivalents, and short-term investments increasing to $651.8 million, reporting a reduced net loss of $14.8 million compared to $17.5 million in the prior-year period, primarily due to lower research and development expenses Cash Position Comparison (in millions) | Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash, cash equivalents and short-term investments | $651.8 | $344.0 | Q1 2024 vs Q1 2023 Operating Results (in millions) | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Research and development expenses | $14.1 | $15.9 | Decreased | | General and administrative expenses | $7.3 | $6.5 | Increased | | Net loss | $14.8 | $17.5 | Decreased | [Janux's TRACTr and TRACIr Pipeline](index=2&type=section&id=Janux%27s%20TRACTr%20and%20TRACIr%20Pipeline) Janux's pipeline is built on its proprietary TRACTr and TRACIr platforms, designed to create safer and more effective tumor-activated immunotherapies, with lead clinical candidates JANX007 for prostate cancer and JANX008 for various solid tumors, alongside active preclinical programs - The company's core technology consists of two platforms: Tumor Activated T Cell Engagers (**TRACTr**) and Tumor Activated Immunomodulators (**TRACIr**), aimed at minimizing safety concerns while eradicating tumors[8](index=8&type=chunk) - **JANX007**, the first clinical candidate, is a **TRACTr** targeting **PSMA** for the treatment of metastatic castration-resistant prostate cancer (**mCRPC**)[7](index=7&type=chunk) - **JANX008**, the second clinical candidate, is a **TRACTr** targeting **EGFR** for solid cancers including colorectal, head and neck, non-small cell lung, and renal cell carcinoma[7](index=7&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) The financial statements for the period ending March 31, 2024, reflect a significant increase in assets and stockholders' equity, alongside a reduction in net loss compared to the same period in 2023 [Condensed Balance Sheets](index=3&type=section&id=Condensed%20Balance%20Sheets) As of March 31, 2024, Janux's balance sheet showed a substantial increase in total assets to $689.0 million from $380.4 million at year-end 2023, driven by a significant rise in cash, cash equivalents, and short-term investments, resulting in a strengthened stockholders' equity position of $655.8 million Balance Sheet Summary (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total current assets** | **$658,666** | **$349,241** | | Total assets | $688,984 | $380,407 | | Total liabilities | $33,221 | $36,058 | | **Total stockholders' equity** | **$655,763** | **$344,349** | [Unaudited Condensed Statements of Operations and Comprehensive Loss](index=4&type=section&id=Unaudited%20Condensed%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For the three months ended March 31, 2024, Janux reported collaboration revenue of $1.3 million and a net loss of $14.8 million, or ($0.30) per share, representing an improvement from the prior-year period's net loss of $17.5 million, or ($0.42) per share, driven by lower R&D expenses and higher other income Q1 Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Collaboration revenue | $1,252 | $2,048 | | Research and development | $14,070 | $15,865 | | Total operating expenses | $21,413 | $22,329 | | **Net loss** | **$(14,760)** | **$(17,459)** | | **Net loss per common share** | **$(0.30)** | **$(0.42)** |

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