CMMB — Chemomab Therapeutics Ltd.

Chemomab Therapeutics Q1 2023 Earnings Call Summary

1. Key Financial Results and Metrics:

• Cash Position: As of March 31, 2023, Chemomab reported cash, cash equivalents, and bank deposits of $32.8 million, down from approximately $40 million at the end of 2022.
• Expenses: R&D expenses increased significantly to $6.9 million from $2.7 million year-over-year, reflecting heightened clinical and preclinical activities. G&A expenses decreased to $2.2 million from $2.6 million.
• Net Loss: The net loss for Q1 2023 was $8.8 million, or approximately $0.04 per share, compared to a net loss of $5.1 million, or $0.02 per share, in Q1 2022.
• Cash Runway: The estimated cash runway has been extended from March 31, 2024, to June 30, 2024, due to budget reviews and expenditure management.

2. Strategic Updates and Business Highlights:

• Clinical Trials: Chemomab reported positive top-line results from the Phase 2 liver fibrosis trial (CM-101) in NASH, showing safety and improvements in multiple biomarkers.
• Ongoing Trials: The company is advancing its Phase 2 clinical program for primary sclerosing cholangitis (PSC) and preparing for a Phase 2 trial in systemic sclerosis (SSc), with initial sites expected to open mid-year.
• Executive Team: The addition of Dr. Matt Frankel as Chief Medical Officer and Dr. Mitch Jones as Vice President of Corporate Development and Strategy was highlighted as a significant enhancement to the leadership team.

3. Forward Guidance and Outlook:

• Data Reporting: Top-line data from the PSC trial is expected in the second half of 2024, while initial data from the SSc trial is also anticipated in the latter part of 2024.
• Partnership Opportunities: Chemomab is exploring partnerships for CM-101, particularly in NASH and other fibrotic diseases, despite not pursuing additional trials independently in NASH at this time.

4. Bad News, Challenges, or Points of Concern:

• Market Conditions: The biotech market remains challenging, which may affect funding and stock performance.
• Increased Expenses: The significant rise in R&D expenses raises concerns about the sustainability of financial resources, although management is focused on prudent capital management.
• Execution Risks: As 2023 is characterized as an execution year, any delays or setbacks in clinical trial progress could impact future milestones and investor confidence.

5. Notable Q&A Insights:

• Conference Presentations: The company plans to present at major medical conferences, including EASL and EULAR, to share data from ongoing studies.
• NASH Discussions: While Chemomab is not pursuing NASH trials, ongoing dialogues with potential partners indicate interest in the indication based on encouraging data.
• SSc Trial Design: The decision to use a 10 mg/kg dose and include both diffuse and limited SSc patients was explained as a strategic choice to assess tissue engagement and address an unmet need in the patient population.

Overall, Chemomab is making progress in its clinical programs while navigating financial challenges and market conditions. The company remains optimistic about the potential of CM-101 across various fibrotic diseases.