CervoMed Q2 2024 Financial Results and Corporate Updates

CervoMed Inc., a clinical-stage firm based in Boston, is pioneering treatments for age-related neurological disorders. Recently, the company shared its financial performance for the second quarter ending June 30, 2024. The period was marked by significant milestones, emphasizing progress in their clinical trials and financial robustness.

During the second quarter, CervoMed successfully completed enrollment for its Phase 2b RewinD-LB clinical trial. This trial evaluates the efficacy of neflamapimod in patients with early-stage dementia with Lewy bodies (DLB). John Alam, MD, CEO of CervoMed, noted that about two-thirds of screened patients were excluded based on plasma ptau181 criteria, confirming that many diagnosed with DLB are still in early stages of the disease. This, along with strong participation and execution from clinical trial sites, facilitated the timely completion of enrollment. The company is optimistic about the trial's potential to improve cognitive, functional, and motor symptoms by targeting synaptic dysfunction in the basal forebrain cholinergic system. They anticipate topline data in December 2024. Additionally, CervoMed is exploring neflamapimod's potential in other neurological conditions, including ischemic stroke recovery and frontotemporal dementia.

Key highlights from the period include the completion of enrollment for the RewinD-LB trial in June 2024 and hosting a virtual event in July 2024 to discuss neflamapimod’s potential. The event featured insights from experts like John-Paul Taylor from Newcastle University and Ralph A. Nixon from NYU Grossman School of Medicine. Financially, CervoMed secured up to $149.4 million through private placement with institutional healthcare investors in April 2024. The upfront $50.0 million proceeds extended CervoMed’s cash runway through 2025. In July 2024, CervoMed was incorporated into the Russell 2000® and Russell 3000® indexes, reflecting its growing prominence.

Reviewing the financials, as of June 30, 2024, CervoMed had $50.9 million in cash, cash equivalents, and marketable securities, a significant rise from $7.8 million at the end of 2023. This increase was primarily due to proceeds from the April 2024 private placement. The company projects that its current cash reserves, alongside funds from its National Institute on Aging (NIA) grant, will fund operations through 2025. Grant revenue saw a notable increase, rising to $5.6 million for the six months ending June 30, 2024, compared to $3.1 million the previous year. This growth was driven by increased services due to more active trial sites.

Research and development (R&D) expenses also saw a significant rise, totaling $3.8 million in the second quarter of 2024, up from $2.0 million in the same period in 2023. This was largely due to higher outsourced contract research and site expenses related to the RewinD-LB trial. General and administrative (G&A) expenses increased to $2.5 million from $1.0 million in the second quarter of 2023, mainly due to higher public company costs, including legal, insurance, and investor relations expenses.

The operating loss for the quarter was approximately $3.0 million, up from $1.2 million in the same period of 2023. The net loss for the quarter was $2.3 million, compared to $1.4 million in the same period the previous year.

The RewinD-LB Phase 2b study focuses on a 16-week trial for early-stage DLB patients, excluding those with significant neuronal loss in the hippocampus. It aims to evaluate changes in the Clinical Dementia Rating Sum of Boxes, among other secondary endpoints. The trial is supported by a $21.0 million grant from the National Institutes of Health’s National Institute on Aging and includes 43 sites across the US, UK, and Netherlands.

CervoMed is committed to addressing age-related neurological disorders, with neflamapimod showing promise in treating synaptic dysfunction. This marks a significant step forward in their mission to deliver innovative treatments.