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Connect Biopharma Reports First Half 2024 Financial Results and Provides Business Update
CNTBnect Biopharma (CNTB) GlobeNewswire News Room·2024-09-05 20:05

Core Insights - Connect Biopharma is transitioning to a U.S.-centric company, appointing Barry Quart as CEO and David Szekeres as President, while significantly reducing its operations in China [1][2][3] - The company has received positive feedback from the FDA regarding its lead product candidate, rademikibart, for potential Phase 3 trials in asthma and atopic dermatitis [4] - Financial results indicate a revenue of 24.1millionforthefirsthalfof2024,withanetincomeof24.1 million for the first half of 2024, with a net income of 7.6 million, a significant improvement from a net loss of 30.5millioninthesameperiodof2023[6][8]LeadershipandManagementChanges−BarryQuart,Pharm.D.,hasbeenappointedasCEO,bringingover30yearsofexperienceinbiotechnologyandpharmaceuticalleadership[3]−DavidSzekereshasbeenappointedasPresident,contributinghisexpertiseinlifesciences[3]−KleanthisG.Xanthopoulos,Ph.D.,wasappointedasChairpersonoftheBoardinJune2024[3]ClinicalDevelopmentandPrograms−Thecompanyisevaluatingthefutureclinicaldevelopmentstrategyforrademikibart,consideringadvancingitintoPhase3trials[1][4]−SimcerePharmaceuticalCo.,Ltd.hasinitiatedPhase3trialsforrademikibartinChinaformoderate−to−severeatopicdermatitisandasthma[4]−PositiveresultsfromtheglobalPhase2btrialofrademikibartwerepresentedattheAmericanThoracicSociety2024InternationalConference[4]FinancialPerformance−Cash,cashequivalents,andshort−terminvestmentstotaled30.5 million in the same period of 2023 [6][8] Leadership and Management Changes - Barry Quart, Pharm.D., has been appointed as CEO, bringing over 30 years of experience in biotechnology and pharmaceutical leadership [3] - David Szekeres has been appointed as President, contributing his expertise in life sciences [3] - Kleanthis G. Xanthopoulos, Ph.D., was appointed as Chairperson of the Board in June 2024 [3] Clinical Development and Programs - The company is evaluating the future clinical development strategy for rademikibart, considering advancing it into Phase 3 trials [1][4] - Simcere Pharmaceutical Co., Ltd. has initiated Phase 3 trials for rademikibart in China for moderate-to-severe atopic dermatitis and asthma [4] - Positive results from the global Phase 2b trial of rademikibart were presented at the American Thoracic Society 2024 International Conference [4] Financial Performance - Cash, cash equivalents, and short-term investments totaled 110.2 million as of June 30, 2024, down from 118.7 million at the end of 2023 [6][9] - R&D expenses decreased to 13.3 million in the first half of 2024 from 26.6millioninthesameperiodof2023,primarilyduetofewerclinicaltrialsandreducedpersonnelcosts[6][8]−Administrativeexpensesincreasedslightlyto26.6 million in the same period of 2023, primarily due to fewer clinical trials and reduced personnel costs [6][8] - Administrative expenses increased slightly to 8.3 million in the first half of 2024, attributed to severance costs related to workforce reductions [6][8] Corporate Strategy and Transformation - The company has completed a technology transfer for rademikibart's manufacturing process to a U.S.-based contract manufacturer, aiming to reduce manufacturing costs [5] - As part of its transformation, Connect has reduced its workforce in China by approximately 15% over the past year, with further reductions expected [5]