Workflow
Compass Therapeutics(CMPX) - 2024 Q3 - Quarterly Report

Financial Performance - As of September 30, 2024, Compass Therapeutics reported net losses of 10.5millionforQ32024,comparedto10.5 million for Q3 2024, compared to 10.0 million for Q3 2023, and 34.3millionfortheninemonthsendedSeptember30,2024,comparedto34.3 million for the nine months ended September 30, 2024, compared to 29.1 million for the same period in 2023[73]. - The company has an accumulated deficit of 350millionasofSeptember30,2024,andexpectstocontinueincurringsignificantexpensesforclinicaldevelopmentoverthenextfewyears[73].ForthethreemonthsendedSeptember30,2024,totaloperatingexpensesincreasedby350 million as of September 30, 2024, and expects to continue incurring significant expenses for clinical development over the next few years[73]. - For the three months ended September 30, 2024, total operating expenses increased by 0.3 million, or 2.6%, to 12.239millioncomparedto12.239 million compared to 11.926 million for the same period in 2023[85]. - Research and development expenses decreased by 0.2million,or20.2 million, or 2%, to 8.612 million for the three months ended September 30, 2024, compared to 8.831millionforthesameperiodin2023[86].Generalandadministrativeexpensesincreasedby8.831 million for the same period in 2023[86]. - General and administrative expenses increased by 0.5 million, or 17%, to 3.627millionforthethreemonthsendedSeptember30,2024,primarilyduetoincreasedstockcompensationcosts[87].LicensingrevenuefortheninemonthsendedSeptember30,2024,was3.627 million for the three months ended September 30, 2024, primarily due to increased stock compensation costs[87]. - Licensing revenue for the nine months ended September 30, 2024, was 850 thousand, a significant increase from 0forthesameperiodin2023,drivenbya0 for the same period in 2023, driven by a 1 million milestone payment from Elpiscience[89]. - Research and development expenses increased by 3.6million,or143.6 million, or 14%, to 29.304 million for the nine months ended September 30, 2024, compared to 25.694millionforthesameperiodin2023[90].Generalandadministrativeexpensesincreasedby25.694 million for the same period in 2023[90]. - General and administrative expenses increased by 2.3 million, or 25%, to 11.597millionfortheninemonthsendedSeptember30,2024,comparedto11.597 million for the nine months ended September 30, 2024, compared to 9.276 million for the same period in 2023[92]. - Cash used in operating activities for the nine months ended September 30, 2024, was 35.693million,comparedto35.693 million, compared to 28.264 million for the same period in 2023[98]. - Cash provided by financing activities for the nine months ended September 30, 2024, was 17.432million,significantlyhigherthan17.432 million, significantly higher than 3.093 million for the same period in 2023[102]. - As of September 30, 2024, the company had cash and marketable securities of $135 million, which is expected to fund operations into the first quarter of 2027[94][105]. Clinical Trials and Product Development - CTX-009 is currently in a Phase 2/3 trial in combination with paclitaxel for biliary tract cancer, with 150 patients enrolled and top-line data expected by the end of Q1 2025[62]. - The Phase 2 monotherapy trial of CTX-009 in metastatic colorectal cancer was discontinued after failing to meet response criteria, with an overall response rate of 5% and a disease control rate of 71%[60][61]. - CTX-471, a monoclonal antibody, showed an overall response rate of 27% in advanced melanoma patients during its Phase 1b trial, with five clinical responses reported[67]. - CTX-8371, a bispecific antibody targeting PD-1 and PD-L1, has completed its second cohort in clinical trials with no dose-limiting toxicities observed, and the third cohort is planned for late 2024[71]. - The company plans to initiate a new second-line trial for CTX-009 in metastatic colorectal cancer combined with chemotherapy in mid-2025[61]. - The FDA granted Fast Track Designation to CTX-009 in combination with paclitaxel for the treatment of previously treated metastatic or locally advanced biliary tract cancer[62]. - Compass Therapeutics intends to explore additional indications for CTX-009 based on preclinical models and clinical data, including ovarian, liver, gastric, pancreatic, and renal cell cancers[64]. Funding and Financial Strategy - The company anticipates increased expenses related to ongoing clinical trials and commercialization efforts for its product candidates, necessitating additional funding[96][105]. - The company expects to finance cash needs through equity and debt financings, collaborations, and licensing arrangements[106]. - If additional capital is raised through equity or convertible debt, ownership interest may be materially diluted[106]. - Debt financing may involve restrictive covenants limiting actions such as incurring additional debt or declaring dividends[106]. Internal Controls and Legal Proceedings - The company has evaluated its disclosure controls and procedures as effective as of September 30, 2024[108]. - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended September 30, 2024[109]. - The company is not currently involved in any material legal proceedings, but may face various claims in the ordinary course of business[111].