Chemomab Therapeutics Reports Q2 2024 Financials and Corporate Update

Chemomab Therapeutics Ltd. (Nasdaq: CMMB), a clinical-stage biotechnology company focused on developing treatments for fibro-inflammatory diseases, recently announced its financial and operational results for the second quarter ending June 30, 2024. This period has marked significant progress for the company, particularly with the positive outcomes from its Phase 2 SPRING trial for CM-101 in treating primary sclerosing cholangitis (PSC).

The Phase 2 SPRING trial results have been a notable achievement for Chemomab. The trial demonstrated the safety and effectiveness of CM-101 in addressing multiple aspects of PSC, including anti-fibrotic, anti-inflammatory, and anti-cholestatic activities. Dr. Adi Mor, Chemomab's CEO, emphasized that CM-101 achieved its primary and key secondary endpoints. It notably showed a statistically significant reduction in liver stiffness after just 15 weeks of treatment, a crucial measure for disease progression in PSC. These findings validate the potential of CM-101 as a disease-modifying therapy and pave the way for advancing to a Phase 3 pivotal trial.

Looking ahead, Chemomab is planning for discussions with the FDA regarding the Phase 3 trial design for CM-101, with an End-of-Phase 2 meeting expected later in the year. The company aims to achieve two key milestones in early 2025: obtaining additional data from the open-label extension of the SPRING trial and finalizing the Phase 3 PSC trial design based on FDA feedback. There is optimism that an accelerated approval pathway incorporating surrogate biomarkers may be feasible for CM-101, given recent developments in related indications.

In addition to clinical progress, Chemomab has strengthened its financial position through a successful $10 million private investment in public equity (PIPE) financing, which included participation from both existing and new investors such as OrbiMed, HBM Partners, and Sphera Biotech Master Fund. This financing extends Chemomab's cash runway through early 2026, supporting the company's upcoming clinical milestones and operational needs.

The recent quarter also saw Chemomab engaging in various scientific activities to reinforce the clinical potential of CM-101. This included new publications and data presentations at significant conferences like EASL 2024 and a Gordon Research Conference, which highlighted the therapeutic promise of CM-101 in treating liver fibrosis and other PSC-related conditions.

Financial highlights for the second quarter of 2024 showed a reduction in research and development (R&D) expenses to $2.9 million compared to $5.0 million in the same period of 2023, primarily due to the completion of the double-blinded portion of the Phase 2 PSC trial. General and administrative (G&A) expenses also decreased to $0.8 million from $3.2 million the previous year, reflecting cost-saving measures. The net loss for the quarter was $3.6 million, a significant reduction from the $8.0 million net loss in the second quarter of 2023.

As of June 30, 2024, Chemomab's cash and cash equivalents totaled $12.8 million, bolstered by the additional $10 million raised in the recent financing. This fiscal stability, combined with the positive clinical outcomes, positions Chemomab well for future developments.

Chemomab Therapeutics Ltd. continues to advance its mission of developing innovative treatments for severe fibro-inflammatory diseases with high unmet needs. The promising results from the Phase 2 SPRING trial underscore the potential of CM-101, not only for PSC but potentially for other related conditions, making it a molecule of significant interest within the biopharma community.